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Volume 783, October 18 – October 19, 1944
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Volume 783, October 18 – October 19, 1944
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Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
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DIARY
Book 783
October 18-19, 1944
- B - -
Book Page
Baruch, Bernard M.
See Post-War Planning: Germany
Bretton Woods Conference
Creighton (Federal Reserve Bank of Boston) endorses:
See Post-War Planning
- C -
China
Sale of United States dollar exchange by United Clearing
Board, Chungking - use of these facilities clarified
by Treasury - 10/19/44
783
300
a) "Army preference that regulations be issued for
U.S. civilian government personnel similar to
those issued for army personnel" still not met -
American Embassy cable - - 10/27/44: See Book 787,
page 198
Coe, V. Frank
See Lend-Lease: United Kingdom - Phase 2
- D - -
Democratic Campaign of 1944
"Economic Bill of Rights" (Also known as "Unemployment
See also Book 781
Program")
Luxford draft of possible FDR speech - 10/18/44
72
Conference: present: HMJr, Cox, White, O'Connell,
Gaston, Lubin, Currie, Cohen, Bernstein, DuBois,
Luxford, Henderson, and Gass - 10/19/44
166
a) Luxford draft
194
b) Gass draft
219
c) Copy prepared by FDR sent to HMJr in New York -
10/21/44: See Book 784, page 117
d) Kaiser suggested changes - 10/24/44: Book 785,
page 91
a) Kaiser-HMJr telephone conversation:
Book 785, page 84
(See also Book 786, page 130)
Dewey, Thomas E. (Republican Candidate for President, 1944)
See Post-War Planning: Germany (Treasury Plan)
Dumbarton Oaks Conference
See Post-War Planning
- E -
"Economic Bill of Rights" (Unemployment Program)
See Democratic Campaign of 1944
Regraded Unclassified
- G -
Germany
Book Page
See Post-War Planning
- L -
Leahy, Admiral William D.
Opposes Treasury plan for post-war treatment of Germany:
See Post-War Planning (Germany)
Lend-Lease
United Kingdom - - Phase 2
See also Book 780
Forrestal-HMJr conversation on Britain's needs -
10/18/44
783
1
a) Copies of "British Requirements for the
First Year of Phase 2" sent him - 10/18/44
4
Patterson-HMJr conversation concerning War Department
representation at coming conference on United Kingdom
needs - 10/18/44
5
a) Agreement between War, Navy, State, etc., and
then to Chiefs of Staff recommended
Protocol (requirements routed through Munitions
Assignment Board to Chiefs of Staff) discussed by
Leahy and HMJr - 10/18/44
16
Conference; 10/18/44 present: HMJr, White, and Casaday - -
23
a) Coe, V. Frank, suggested as secretary of
United States group in discussions
26
Keynes, Cherwell, and White dine with HMJr - 10/18/44.
40
a) Blocked balances can be handled without undue
pressure on current balance of payments of
England during next decade: Keynes
Conference of American delegation prior to meeting
with British - 10/19/44
126
Conference of American delegation and British -
10/19/44
142
Conference of American delegation - - 10/20/44:
See Book 784, page 1
a) Patterson letter read and considered
b) Patterson letter and Treasury answer: Book 784,
pages 22,25
Conference of American and British delegations -
10/20/44: Book 784, page 28
- N -
New York Times
See Post-War Planning: Germany (Treasury Plan)
- P -
Patterson, Robert P. (Under Secretary of War)
See Lend-Lease: United Kingdom - Phase 2
Regraded Unclassifie
- P - (Continued)
Book Page
Post-War Planning
Bretton Woods Conference: Federal Reserve Bank of Boston
chairman Creighton endorses - 10/18/44
783
57
Dumbarton Oaks Conference: Documents sent to HMJr by
Stettinius - 10/18/44
51
Germany
Treatment discussed by Baruch and HMJr - 10/18/44
12
(See also Baruch letter - 10/27/44: Book 787. page 164)
Baruch-Cherwell talk reported to HMJr - 10/29/44:
See Book 787, page 305
Treasury Plan
"Result: Slowing up of war" (Dewey statement) -
Denial by Marshall or Stimson
discussed by Rosenman and HMJr - 10/19/44
153
#
# Grace Tully and HMJr - 10/19/44
163
Oscar Cox draft of statement - 10/19/44
233
a) FDR decides not to use: See Book 784, page 55
Sulzberger (New York Times) asks Ray Daniell to
check with Eisenhower on truth of Dewey
statement - 10/23/44: Book 784, page 174
(See also Book 788, page 224 - 10/30/44)
a) Sulzberger-HMJr conversation - 10/25/44:
Book 786, page 117
b) Daniell-Middleton statements: Book 790,
page 263
Admiral Leahy announces opposition to Treasury plan -
10/19/44
232
- S -
Sweden
Political situation and Nazi infiltration reviewed by
Winant - 10/18/44
118
- U -
Unemployment Program ("Economic Bill of Rights")
See Democratic Campaign of 1944
United Kingdom
See Lend-Lease
- W -
War Refugee Board
Report for week ending
October 7, 1944 - 10/18/44
99
#
14, 1944 - 10/25/44: See Book 786, page 205
#
21, 1944 - 10/31/44: Book 789, page 106
#
28, 1944 - 11/7/44: Book 792, page 114
Regraded-Unclassified
1 L
October 18, 1944
12:25 p.m.
HMJr:
Hello.
Operator:
Secretary Forrestal, and he's on his White House
line. They asked me to call him that way.
HMJr:
All right. Hello.
Operator:
There you are.
HMJr:
Henry talking.
Secretary
Forrestal:
Yes, Henry.
HMJr:
Jim, I, yesterday, received from the British
their requirements for the first year of Stage
Two. Hello?
F:
Yes.
HMJr:
You know about this committee which the President
set up in Quebec -- I think I wrote you about it.
F:
Yes.
HMJr:
Now, in this thing, I mean, are certain Navy
requirements. I have scheduled a meeting at
my office tomorrow with Stettinius, Patterson
and Crowley for nine-fifteen. Your -- the things
that they want from the Navy are -- well, they'd
come under the heading of, say, "modest". How
much do you want to take part in this, or have
your Department take part in this, from the
beginning?
F:
Well, I -- I would just -- I would like to know
what the -- I'd like to know
....
HMJr:
What they want?
F:
Yeah, so we can make our plans accordingly. I
mean there are certain things like planes, for
example, that we might
....
HMJr:
Well, suppose ....
F:
.... that would have a very definite effect on
our schedules.
Regraded Unclassified
2
- 2 -
HMJr:
Well, supposing I send over to you two copies.
Hello?
F:
Yes.
HMJr:
If you need more, you can let me know.
F:
Yes.
HMJr:
And they have sent a special Admiral over here --
I can't give you the name for the moment -- to
contact you on this.
F:
Yes.
HMJr:
And after sometime after tomorrow I imagine
he'll want to call on you.
F:
Yes.
HMJr:
And then as we go along will you keep me advised?
F:
Yes. Do you want somebody at your meeting
tomorrow?
HMJr:
Well, I think it would be nice if you could
send somebody who has -- who would correspond
to either Stettinius or Patterson.
F:
Yeah. All right. I think most of it I suspect
will be in small planes 80 I think I may ask Guy
Gates to go.
HMJr:
Well, any way but I think it would be better than
trying to do it over the phone.
F:
I think 80.
HMJr:
Then you'd get the he'd get the flavor of the
thing.
F:
That's right.
HMJr:
What?
F:
Yep, I think much better, Henry.
HMJr:
Who is in charge of production? Who does what
you used to do?
3
- 3 -
F:
Well, I'm still doing it, as a matter of fact,
but I -- I think what I would have -- would have
Guy and Admiral Robinson or Horn go with him.
HMJr:
Well, if you would have your office let mine
know -- and it's nine-fifteen.
F:
Right.
HMJr:
And I'll look for them, and in the meantime I'll
have this thing -- two copies over to you and if
you need more, you let me know.
F:
I will. Thank you.
HMJr:
Thank you.
Regraded Unclassified
4
October 18, 1944
SECRET
Dear Jim:
I am sending you herewith two highly
secret copies of "British Requirements for
the First Year of Stage II". If you need
additional copies, I will be glad to furnish
them to you.
Yours sincerely,
(Signed) Henry
Honorable James V. Forrestal,
Secretary of the Navy,
Washington, D.C.
Delivered by Suret Service-
Regraded Unclassified
5
October 18, 1944
2:30 p.m.
HMJr:
Hello.
Robert
Patterson: How are you?
HMJr:
Bob, I feel I know you well enough that I can
say something to you that won't be repeated.
P:
That's right.
HMJr:
Last night McCloy called me up on some matter
about -- what he really was calling me up
about was that he'd heard that I'd sent this
stuff to you. You see?
P:
Yeah.
HMJr:
So I said that -- that you would clear it with
Mr. Stimson and all that.
P:
That's right.
HMJr:
And so he kept -- you know -- crying and sort
of -- he'd handle this sort of thing and that
sort of thing.
P:
Yep.
HMJr:
Now, what I wanted to say to you is this: I
don't know whether -- I don't want to raise an
issue over there, but if it will be at all helpful,
Stettinius is bringing Acheson.
P:
Yes.
HMJr:
So there'll be two of them. Well, I just thought
I'd pass that along to you for whatever it was
worth.
P:
What I wanted to do, Henry, was to bring along
General Somervell and Clay on the Ground Force
equipment.
HMJr:
Yeah.
P:
And Lovett and Arnold on the Air Force equipment.
HMJr:
Fine.
Regraded Unclassified
6
- 2 -
P:
Isn't that adequate?
HMJr:
Plenty as far as I -- it's all right as far as
I am concerned.
P:
The Secretary said that as far as the War
Department is concerned he'd be glad to have
that arranged.
HMJr:
Oh, you've taken it up with him?
P:
I did, yes.
HMJr:
Yeah. Well, I didn't realize how much McCloy
has been in it and so he seemed to feel badly
but anyway -- anyway it's all right with me.
P:
Yep.
HMJr:
See?
P:
Henry.
HMJr:
Yeah.
P:
Do you think -- do you think it would aid any if
on the details, a -- a sub-committee on these
military items, British and American military
men -- uh -- came to an agreement on them?
HMJr:
Oh, definitely. Now, what's going to happen is
I've fixed it 80 that we can talk together for a
half an hour first.
P:
Yep.
HMJr:
.... before we see the English.
P:
Yep.
HMJr:
Now, they have -- they've brought over a whole
new crowd. It's a new deal.
P:
Yep.
HMJr:
There's some General, and as soon as this meeting
is over he's going to call on you.
P:
General Weeks isn't it?
Regraded Unclassified
- 3 -
7
HMJr:
That's right.
P:
Yeah.
HMJr:
But they've been waiting. They've been very
good this time. They've rung no back-door bells,
you see?
P:
Yep. That's right.
HMJr:
And it's the first time it's ever happened.
P:
Yeah.
HMJr:
So right after this meeting, I told them -- they
asked me about it -- that this General Weeks will
come and call on you formally.
P:
Yep.
HMJr:
With the hope that you would arrange that he could
meet with your people.
P:
Yep.
HMJr:
Then after they got together my thought was that
if the rest of the committee approved then they
would report back to the top committee.
P:
I think from such examination as I was able to
make ....
HMJr:
Yeah.
P:
....
of the items hastily
....
HMJr:
Yes.
P:
....
I would say, in a tentative way, that their
demands for military weapons
....
HMJr:
Yes.
P:
....
were not bad.
HMJr:
Yes.
P:
They -- they -- there'll have to be a little
ironing out
....
Inclassify
8
- 4 -
HMJr:
Yes.
P:
....
of a few items.
HMJr:
Yes.
P:
But in the main, after talking to Somervell and
also to Lovett
HMJr:
Yes.
P:
they said that they thought the British could
probably show a need
HMJr:
Yeah.
P:
....
for most of their stuff in approved military
operations in Asia.
HMJr:
Wonderful.
P:
For most of it.
HMJr:
I understand.
P:
The -- the tighter things, the harder job is your
job.
HMJr:
Yeah.
P:
General economics.
HMJr:
Yeah.
P:
The -- I read the first few pages of their book
HMJr:
Yeah.
P:
before I distributed the copies for closer
study by people who know more about them than I
do, and they've got some economic matters there
that ....
HMJr:
That are tough.
P:
That are tough. But military items ought not to be
tough and I don't think we'll give you much trouble.
HMJr:
Well, that's what they were worrying about the most.
Regraded Unclassified
- 5 -
9
P:
The military?
HMJr:
Yeah.
P:
Really?
HMJr:
Yeah.
P:
Well, they aggregate so far as the Army is
concerned about Two Billion, Six.
HMJr:
Yeah.
P:
The Navy, I think, around Four Hundred Million.
HMJr:
Yeah.
P:
And, or say Three Billion over-all for military
weapons.
HMJr:
Yeah.
P:
Air, ground and water.
HMJr:
Yeah.
P:
And in the main that doesn't look bad to us.
We may make them come down on some items that
we don't think they can justify but over-all
it's -- you're off to a good start I think.
I think it's a good way to handle it.
HMJr:
Good.
PL
They want it though, Henry, what they call
protocol.
HMJr:
Yeah.
P:
Like we do with the Russians.
HMJr:
Yeah.
P:
Firm.
HMJr:
A firm commitment.
P:
Firm.
Regraded Unclassified
10
- 6 -
HMJr:
Yes.
P:
And no more Munitions Assignment Board monthly
distributions.
HMJr:
Oh. Well, I wasn't
....
P:
Well, that -- though I don't think is -- I'd just
as soon see it all firm.
HMJr:
Yeah.
P:
In one piece of paper rather than month by month.
HMJr:
Yeah.
P:
But I think as the stuff comes out we are -- we
must send it to the Munitions Assignment Board
for distribution because otherwise we might be
depriving our own forces of something. I mean
in -- they've got to take pot-luck with us
depending on what production 1s.
HMJr:
Yeah.
P:
That's no more than fair.
HMJr:
Well ....
P:
But I don't think they'll kick on that.
HMJr:
Yeah. Well, now, there's one thing which I --
I had Hopkins here for lunch today and I was
talking to him about it and he said this, that
he thought if it would help us any that the
President might be willing to fix this date
to start this second phase as of April 1st instead
of January lst.
P:
Huh.
HMJr:
And that he didn't think that the English would
want very much more if we did, but -- but that
gets down to the question of "how long is the
war going to last?" and that is something that --
I'm just putting it into your head -- I don't know
whether it's something or whether we'd better just
stick to what the English have put up to us.
Regraded Unclassified
- 7 -
11
P:
Huh!
HMJr:
See?
P:
It seems to me that if we come over there tomorrow
at nine-fifteen
....
HMJr:
Yes.
P:
....
and have half an hour before the British
come in
....
HMJr:
Yeah.
P:
....
that we can go over the thing with them
....
HMJr:
Yeah.
P:
....
in a general way and then you can, if you
like and think best, say, Well, you don't seem
to be very far apart on this stuff; suppose a
little sub-committee
If
HMJr:
Yeah.
P:
II
.... of the military men, British and American,
see if they can't agree upon it item for item.
HMJr:
Yeah.
P:
"And report back. II
HMJr:
Right.
P:
Don't you think that's good
....
HMJr:
That was my idea if it was agreeable to the rest
of you.
P:
Yeah, I think that's the best idea.
HMJr:
Righto.
P:
Thank you, Henry.
HMJr:
Thank you.
P:
Good bye.
Regraded Unclassified
12
October 18, 1944
2:45 p.m.
HMJr:
Hello.
Operator:
Mr. Baruch.
HMJr:
Thank you.
Operator:
All right. There you are.
HMJr:
Hello. Hello.
B.M.
Baruch:
Yes.
HMJr:
This is Henry talking.
B:
Yeah, Henry, Bernie.
HMJr:
How are you?
B:
All right. I'm sitting up here in my room just
snoozing this afternoon.
HMJr:
You've been doing what?
B:
Snoozing.
HMJr:
I'm very jealous of you.
B:
Well, I cheat a little. You can!t.
HMJr:
Well, I got a message that you called me and this is
in answer to yours.
B:
Oh, that was some time ago. Oh, yes, yes.
HMJr:
It was a couple of days ago.
B:
Yeah, I was -- thought that if I came down and
you were there -- I don't know whether I'll get
down this week -- I'd -- I'd want to talk to
you a little bit about that -- that German
reparation.
HMJr:
I'd love to talk to you.
B:
The -- I -- I've said a little to the President
about it and -- but I want to talk to you. I'll
give you some ideas I had and see how they fit
in with yours.
- 2 -
13
HMJr:
Well, uh
....
B:
We can't -- Henry, we won't let the Germans get
away with anything this time.
HMJr:
Well, they won't if I have anything to do with
it.
B:
Well, I'll be right there behind you.
HMJr:
Wonderful.
B:
Well, now, I'll tell you one thing I didn't like
to see the President and Dewey talking about the
Italians the way they did because they were just
as bad, you know.
HMJr:
I know.
B:
But the -- I'm going to -- I think I can show you
how to meet the English situation as the President's
got it and explained it to me.
HMJr:
Yeah.
B:
Because they exactly what they did the last
time.
HMJr:
Yeah.
B:
What they were going to lose and all that kind of
thing, but I think I can show you how we can have
our cake and eat it and satisfy them and work out
along the lines that you wanted.
'HMJr:
Well, if you'll just give me a day's notice any
time that you're coming down, well, we'll have
lunch together.
B:
Okay. Well, are you going to be there all this
week?
HMJr:
No, I'm going to leave Friday afternoon.
B:
Well, are you coming up with him?
HMJr:
I'm going home for one day and then come down
and hear him speak Saturday night.
Regraded Unclassified
14
- 3 -
B:
Yeah. I was going to go and talk -- going to
go and Mrs. Roosevelt asked me to sit with them
but I'll tell you I don't like to sit in a big
crowd. Everybody comes up and talks to you and
they cough in your face.
HMJr:
Well, I'm going to sit with Mrs. Roosevelt.
B:
Well, she asked -- she was good enough to ask
me but you've got to sit there and listen to all
the people that come before, you know.
HMJr:
Yeah.
B:
And I get colds too easily.
HMJr:
I see.
B:
And I might -- I might take and come in just
before he speaks.
HMJr:
I see.
B:
And -- but -- well, I won't see you then -- if
I'm there I'll see you then, but anyhow, I want
to talk to you about this other thing.
HMJr:
Well, we ought to set aside an hour or two for
that.
B:
All right, sir.
HMJr:
I -- I have the time any time you're ready.
B:
All right, old boy. Glad to hear from you.
HMJr:
Thank you.
B:
Things are looking pretty good.
HMJr:
Pretty ....
B:
We've got to just get our votes out and keep the
boys from getting rattled.
HMJr:
That's right.
B:
They're getting -- they got pretty well rattled.
Regraded Unclassified
- 4 -
15
HMJr:
Yeah, I think they're better now.
B:
Yeah. Yeah. And -- and I think -- I think that
we're all right now. Everything has steadied up
a bit.
HMJr:
Well, I think the New York Times helped.
B:
Yeah. Yeah. Somebody did a good job on them.
HMJr:
Yeah.
B:
All right, Henry, I'll be seeing you.
HMJr:
Thank you.
B:
Good bye.
Regraded Unclassified
16
October 18, 1944
3:13 p.m.
HMJr:
Hello.
Operator:
Admiral Leahy calling you.
HMJr:
Right.
Operator:
Go ahead.
HMJr:
Yes. Hello.
Admiral
Leahy:
Hello, Mr. Secretary.
HMJr:
Talking.
L:
Admiral Leahy speaking.
HMJr:
Good afternoon.
L:
Good afternoon, sir. I'm coming over to
lunch with you tomorrow, I believe.
HMJr:
I hope SO.
L:
Fine, I will. I wanted to take up something
with you that has been brought to my attention
by the Chiefs of Staff.
HMJr:
Please.
L:
It's in a matter of Lend-Lease.
HMJr:
Yes.
L:
And this 18 the story.
HMJr:
Yes.
L:
There is a British officer, Air Marshal -- Chief
Air Marshal Courtney
....
HMJr:
Yes.
L:
....
who is here with -- on the Lend-Lease
business...
HMJr:
Yes.
Inclassifie
- 2 -
17
L:
....
for Great Britain.
HMJr:
Yes.
L:
And the -- the Staff is informed that they're
endeavoring to put that on a protocol basis
which takes it completely out of the hands of
the Chiefs of Staff, and it is the opinion of
the Chiefs of Staff that they should be required
to bring their demands as heretofore to the
Chiefs of Staff through the Munitions Assignment
Board and then we will give them what they need.
And we've been very liberal about it in the past
but we will have our own shirts left after we do
that.
HMJr:
Well, now, can I bring you up to date the way
the matter stands?
L:
Yes, if you like; it would be nice.
HMJr:
Yesterday afternoon, for the first time, I got
copies given to me of what is called "British
Requirements for the First Year of Stage Two."
L:
Yeah.
HMJr:
I immediately sent copies to Mr. Patterson, Mr.
Stettinius and Mr. Forrestal and Mr. Crowley.
L:
Yes.
HMJr:
And asked them to study it and whether they
would meet with me tomorrow morning at nine-
fifteen.
L:
Uh huh.
HMJr:
Which they've agreed to do.
L:
Uh huh.
HMJr:
A little while ago I talked to Mr. Patterson and
he brought up, amongst other things, this very
thing about the protocol.
L:
Yes.
HMJr:
And he said that the way they were thinking over
there that they thought it was better to come to
an agreement and then route the thing through the
Munitions Assignment Board as they had before.
Regraded Unclassified
18
- 3 -
L:
And would not have protocol?
HMJr:
And not have protocol. And so I said I would be
largely guided by whatever advice he gave me.
L:
Uh huh.
HMJr:
So that's the way the matter stands.
L:
Well, that -- that's fine, Mr. Secretary. The
point is that the demands are very heavy, you
see, and if we get a protocol -- I didn't know what
that word "protocol" meant until recently. In the
last couple of days I've found out it meant that
you make an agreement reaching into a year or two
in advance.
HMJr:
That's right.
L:
And of course
....
HMJr:
Well, I only learned recently. It's what they call
a firm commitment.
L:
Yes, it's a firm commitment -- that's what it means.
Well, of course, the war is going to be over before
a couple of years pass. It ought to be readjusted
at that time, I should think -- at least as far as
the military is concerned.
HMJr:
Well, in my original suggestion to them before I
got this -- my suggestion was that this thing
should be reviewed every three months.
L:
Oh, I think that's sound. That's perfectly sound.
HMJr:
Now, another thing, they have brought over -- I mean
the people on this this time are quite new as &
result of the talks that I had in London and in
Quebec. They're all new people.
L:
Yes.
HMJr:
And for the first time since I've been in Washington
the English have not been going around to back-doors
and ringing door bells.
L:
Yes.
HMJr:
And they've held this Air Marshal and an Admiral
and somebody else back until our first meeting
tomorrow ....
Regraded Unclassified
19
- 4 -
L:
Yes.
HMJr:
....
and then these people are going to make
formal calls on Mr. Patterson and on Mr.
Forrestal.
L:
Well, that's fine.
HMJr:
And that's the first time that's ever happened.
L:
Well, that's a grand arrangement and I'm sure
that so long as you don't let them get you to
agree to a protocol without your knowing what
it means, that everything will be lovely.
HMJr:
Well, I'll say this, before I do approach any
such agreement, I'll certainly discuss it with
you first.
L:
Well, that's fine. Then I can get -- I can get
the Staff's reaction to it, you see, and then
we can find out what it means.
HMJr:
Now, I have sent two copies to Mr. Patterson.
Do you want any copies of this?
L:
No, not at the present, Mr. Secretary.
HMJr:
You don't?
L:
Let's wait until you find out what you're going
to do and then if the Staff is sufficiently
interested in it, I'll then ask you if we can
have a copy of what you've done.
HMJr:
Well, War is bringing over tomorrow General
Somervell and General Arnold.
L:
Well -- well, they'll tell us.
HMJr:
What?
L:
They'll give it all to us.
HMJr:
Won't they?
L:
Yes. Oh, yes.
HMJr:
But anything you want on this or any advice you
want to give me will be most welcome.
Unclassifie
20
- 5 -
L:
Thank you very much, sir.
HMJr:
Thank you.
L:
Good bye,
Regraded Unclassified
21
October 18, 1944
3:45 p.m.
HMJr:
Hello.
Oscar
Cox:
Hello.
HMJr:
Oscar.
C:
Yes.
HMJr:
This is in reply to the call of yours.
C:
All right. I'm sorry to bother you on such
a petty matter but I wondered if it was all
right if We got Sammy Klaus away from you.
HMJr:
I sent you that message yesterday or the day
before.
C:
Oh, I ....
HMJr:
I told Joe O'Connell to call you.
C:
He did and I called him and he was out of town.
HMJr:
Oh. Well, the answer was, "yes".
C:
Okay.
HMJr:
And I told him to let you know immediately
in view of the fact -- 'till a letter got
through.
C:
All right. I appreciate it.
HMJr:
Yeah.
C:
See you tomorrow.
HMJr:
Have you had a chance to do any studying on
this?
C:
I just started to look through it.
HMJr:
Yeah.
C:
And I hope to get finished before it gets dark.
Regraded Unclassified
- 2 -
22
HMJr:
Well, you'd better hurry.
C:
All right.
HMJr:
Thank you.
C:
Bye.
23
October 18, 1944
4:00 p.m.
BRITISH LEND-LEASE NEGOTIATIONS
Present: Mr. White
Mr. Casaday
Mrs. Klotz
H.M.JR: Harry, what he has done is what we have to
do; he is bringing Mr. Frank Lee as Secretary.
Now, here is the point, and just relax a minute.
There has been quite a lot happening, and I talked with
Patterson. Patterson says as far as the Army is concerned
they are going to be able to practically take this as it is.
MR. WHITE: They are satisfied?
H.M.JR: Practically, outside of a few things. You
remember, that was the main thing they were afraid of, but
Patterson said, "We don't like this protocol business,
this firm commitment." They want to route it through
the Munitions Assignment Board.
Well, Hopkins had lunch with me, and Leahy, Combined-
Chiefs-of-Staff, called me. This has to go through the
Munitions Assignment Board, 80 I said, "Well--
MR. WHITE: The hole was just what they wanted.
H.M.JR: The military--I mean, I said that Mr. Patterson
spoke to me about it, and it sounds reasonable, and I
would be advised by what he had to say, "But, I can promise
Regraded Unclassified
24
- 2 -
you, Admiral Leahy, that I will make no decision without
consulting with you."
And Patterson said that the argument is that they
can't make a firm commitment for twelve months, "Because,
supposing we get in a jam; we may have to keep it, that
is all."
MR. WHITE: I don't see why we have to make firm
commitments. It is not a contract.
H.M.JR: My original suggestion was that it be
reviewed every few months.
Hopkins wants his finger in this thing. He is
Chairman of the Munitions Board. He went to Leahy; it
just a little palace politics.
MR. WHITE: Did Hopkins talk on this matter at
lunch?
H.M.JR: I brought it up. He already knew about it.
I invited him to come here tomorrow morning and tomorrow
afternoon. I can't do any more than that.
Now, what I think is this--and I can't remember
who said what to me--It was Patterson or Leahy--but I
thought the military would see their military.
MR. WHITE: Yes.
H.M.JR: And the Navy would see their Navy. Then
they would report back.
But they have things in here like food, and all these
other things, and I think that we must have a first-class
secretary for the American delegation, and I don't consider
that that is you, because I can put you above that. I mean,
I consider you a member. Do you see what I mean?
MR. WHITE: You don't mean in the sense of records?
Regraded Unclassified
25
- 3 -
H.M.JR: No, that is Mrs. Dickinson's job.
MR. WHITE: That is what I thought.
H.M.JR: I don't know who this man is, Frank Lee,
Secretary of the British Delegation.
MR. WHITE: He is a technician. He is the British
Treasury man here who is next in charge.
H.M.JR: You told me it was this fellow out here (Casaday)
and I don't think he is smart enough. Somebody has to
devote his full time for me to see that these committees
are functioning, because you have other things. This
is a full-time job. It is terrific, and I need the ablest
fellow I have.
MR. WHITE: I say pick one; we can easily add him on.
H.M.JR: I thought the ablest fellow around here was
Glasser.
MR. WHITE: He is the ablest, but--well, let me put
it this way, Mr. Secretary.
H.M.JR: Are you going to bargain with me?
MR. WHITE: Yes, I don't think it would be satisfactory
for this reason: Glasser takes care of a whole area. If
I take him off of that, it merely means I am the only one
that can take over that work. And he will have to start
from scratch on this. Do you see? There is a whole history.
Now, at least Casaday is familiar with a good deal
of the background. Now, Mr. Secretary, I am afraid I will
have to differ with you; I don t think he has to be that
good because he cannot make decisions. Our work in this
is relatively little. It consists in the Army, Navy,
and FEA doing the work.
H.M.JR: But somebody has to ride herd on these people.
Regraded Unclassifie
26
-4 -
MR. WHITE: He can do that. Casaday is quite
presentable.
H.M.JR: What about Frank Coe?
MR. WHITE: Yes.
H.M.JR: He did a very good job up at Bretton Woods.
MR. WHITE: Frank Coe can do a very excellent job,
a better job than Casaday.
H.M.JR: I was very much impressed with Frank Coe.
MR. WHITE: He is a very excellent man.
H.M.JR: And if you would be satisfied--
MR. WHITE: I would rather have Coe than Glasser,
because, in the first place, Coe is familiar with it. Coe
used to work on it under me, and he works on it in FEA.
H.M.JR: It would be a nice gesture towards Crowley.
MR. WHITE: Yes, I would rather have Coe, much rather
have Coe do it than anybody. Then Casaday can continue to
do whatever I want. It isn't a question of following it,
because this has such a long history, and the principles
are all the same.
H.M.JR: He can then be assistant to you.
MR. WHITE: I can use Casaday the way I always do. He
has to follow it for me. I used to have two people on it
always, but it so happened Miss Kistler got sick.
H.M.JR: Sick! She had a baby.
MR. WHITE: And then she was ill.
H.M.JR: Oh, I didn't know that. She hasn't been
here for almost a year.
Regraded Unclassified
27
- 5 -
Then we sent Friedman to the Far East. One fellow
went to the Army, and the other fellow went to the Navy.
H.M.JR: Well, what would you think of that?
MR. WHITE: I would prefer to have Coe as secretary.
H.M.JR: Didn't you think he did a good job at
Bretton Woods?
MR. WHITE: Oh, I have known Coe for many years. Yes,
he did a good job.
H.M.JR: And don't you think it would be a nice
gesture?
MR. WHITE: I do.
H.M.JR: Well, you know I don't trade with you. I
wasn't suggesting this man and then saying I wanted Coe.
I don't do that, you know.
MR. WHITE: Coe would be a good man, and that is
where it ought to be, in the FEA, on the following-through
level, because I think the decisions you have to make here
are the over-all decisions after the other people have
checked up on the details. What they need in food is not
our business; it's FEA business. What they need in the Army,
and what they need in the Navy is their business. But all
that should be collected here, 80 it is quite all right for
Coe.
H.M.JR: He would be loyal to us?
MR. WHITE: Oh, yes, yes.
H.M.JR: This thing just bows me down. My God, then
they go back to 1941, to the Morgenthau agreements of '41,
and they want to pick up thirty-eight million dollars for
'41.
MR. WHITE: They are throwing in everything.
Regraded Unclassified
28
- 6 -
H.M.JR: I mean, the thing with Kung is going to be
a pink tea party compared with this.
MR. WHITE: Well, this doesn't have to be hard.
All you have to do is say no to some of the items.
H.M.JR: You know that song the girl sings in
Oklahoma, "I Just Can't Say No!
MR. WHITE: Well, I think there is one place where
we can say no.
You see, Mr. Secretary, as I see this thing, they
make a very excellent case for the position which they
are in.
(The Secretary holds a telephone conversation with
Mr. Leo Crowley, as follows:)
Regraded Unclassified
29
October 18, 1944
4:03 p.m.
HMJr:
Hello.
Operator:
Mr. Crowley.
HMJr:
Leo.
Leo
Crowley:
Yes.
HMJr:
I've been working on this proposal of the
British.
C:
Yeah.
HMJr:
I'm bowed down.
C:
(Laughs)
HMJr:
They have a Secretary of their Delegation,
a Mr. Frank Lee, and I thought we ought to
have one also. Not because they have one
but -- hello?
C:
Yeah.
HMJr:
And I wondered if you'd be agreeable to the
American Delegation of having Frank Coe as
the Secretary.
C:
Sure. Sure, Frank is a good man and he'll
work well with all the fellows and work well
with Harry.
HMJr:
Because he did a swell job for us up at
Bretton Woods.
C:
Fine. That would be very fine. I'd be very --
very glad to have Frank.
HMJr:
And I should think that from your standpoint
he'd be good.
C:
That's right. I'd be very happy to do that.
HMJr:
Well, then would you bring him along tomorrow?
C:
I'll get in touch with him and have him with
us in the morning at the quarter after nine
meeting.
Regraded Unclassified
- 2 -
30
HMJr:
You got my message we'd have a half an hour
by ourselves?
C:
That's right. That's right.
HMJr:
Have you got into this thing yet?
C:
No. I've got the fellows looking at it and
I'm going to talk with them tonight.
HMJr:
Yeah.
C:
And then be able to know something about it
when We meet in the morning.
HMJr:
Okay. Then Frank Coe will be the Secretary.
C:
Fine. Thanks.
HMJr:
Bye.
Regraded Unclassified
31
- 7 -
H.M.JR: Now, do you want the other fellow to come
in?
(Mr. Casaday enters the conference.)
H.M.JR: Well, the point is this, Harry: Have you
got some tables for me yet?
MR. WHITE: They are being typed now. We had some,
but they are trying to put them in better shape.
H.M.JR: Hello, Mr. Casaday.
MR. CASADAY: Hello, Mr. Secretary.
H.M.JR: Here are a couple of things I would like
to know tonight when you come, Harry: I would like to
have a table of these things combined, you see, comparing--
well, they call it different things; they call it Lend-Lease
number five.
MR. WHITE: Well, yes, there are two different bases
which they use that complicate the matter. They have to
have data that they don't possess elsewhere. They have a
fiscal year instead of a calendar year. They have approp-
riation instead of delivery. We want to find out whether
they are selecting the figures better for their purpose,
or whether there aren't any available.
H.M.JR: I would like to have the figures for the
calendar year of '44.
MR. WHITE: We are trying to get them for '43, '44,
and what we call '45, which will be the first twelve
months, but we are making a table first of what they have.
Then we will compare that with other material which may be
available, which we don't know.
H.M.JR: Could you come to the house about a quarter
of seven and let me have that?
MR. WHITE: Yes, all right.
Regraded Unclassified
32
- 8 -
H.M.JR: May I just talk out loud a little bit?
Different things have happened today. This is very
confidential, highly confidential on account of its
implications, but you have to know. Hopkins said he
thought that if it would make it any easier for me,
the President would be willing to make this thing--
date it April 1 instead of January 1, and that the
English wouldn't need much more. In other words, what
he was saying was, you could throw the first three months
of '44 in with the twelve months starting April 1.
Now, I mentioned that to somebody--oh, yes, to
Patterson, but Patterson didn't seem to like it and wanted
to leave it the way it was, particularly if we are going
to throw the supervision of this munitions part into the
Combined Munitions Board.
MR. WHITE: You are sure the January 1 figure, as
they point out, presupposes the end of the German war by
January 1.
H.M.JR: That is why I am saying it is highly confi-
dential, because Hopkins was suggesting April 1.
MR. WHITE: I see. Well, has he been in touch with
the Russians?
H.M.JR: Just with Eisenhower.
MR. WHITE: Well, it still may be January 1.
H.M.JR: Have you been in touch with the Russians?
MR. WHITE: Oh, I read the papers.
MR. CASADAY: If it doesn't end by January 1 on this
basis, they can ask for more.
MR. WHITE: Yes, they can ask for the same rate which
they have been asking in '44.
H.M.JR: Hopkins was implying--I wonder what he meant.
He said, "If you make it April 1, it won't cost you any more."
Regraded Unclassified
33
- 9 -
But I don't think he is right, because they couldn't at
the present rate.
MR. WHITE: Which is substantially higher.
H.M.JR: Now, they are asking the over-all figure here
of six billion dollars. But there is no over-all figure
for what they cail the Lend-Lease five.
MR. CASADAY: No, just non-munitions.
H.M.JR: Isn't six billion the whole thing?
MR. WHITE: Exclusive of special items amounting to
about six hundred million dollars.
H.M.JR: Exclusive.
MR. WHITE: They list a number of items like tobacco,
ninety million, sugar, ninety million, and do you remember
those airplanes, three hundred and fifty million? They
are like an elephant; they forget nothing.
H.M.JR: Which is the three hundred million?
MR. WHITE: You remember two years ago almost now, or
a year and a half ago, when they wanted us to buy back the
planes.
H.M.JR: You know I read this stuff. Now, it is the
funniest thing; I don't know whether it is a good mind or
bad mind, but I remember the things as long as I need
them, and then I kind of wash my brain out.
MR. WHITE: That is what happens.
H.M.JR: I can carry them as long as I need them, but
when I don't need them any longer, I eliminate them. I
couldn't remember the thirty-eight million.
MR. WHITE: Well, there is an awful lot of water that
has passed over the dam. This letter will remind you. You
might glance at that. They refer to that letter, too.
Regraded Unclassified
34
- 10 -
H.M.JR: This takes me back to pre-Pearl Harbor;
there will be practically the same crowd in.
MR. WHITE: You remember that letter we drafted
because we wanted a summary of what you had done up to a
certain date?
H.M.JR: Yes.
MR. WHITE: What is the date?
H.M.JR: September 29, '42.
MR. WHITE: Just two years ago.
Now, I think in the discussion, Mr. Secretary, if you
can steer clear of that Chapter Three for the time being--
anyway, Chapter Three is where they want--it is the beginning
of page thirty-five.
H.M.JR: You know, an interesting thing is, they
eliminate all iron and steel, but they come back for things
like tobacco and that kind of stuff. It doesn't make sense.
MR. WHITE: It does, possibly for this reason, that
tobacco is just for home consumption, and they thought that
tobacco could be acceptable to the United States because
we produce tobacco; they don't compete with them in exports,
and so forth. Whereas, iron and steel would go into their
exports and would raise all kinds of problems.
H.M.JR: I know what you are going to say. At least
I think you are on Chapter Three; I think that is Treasury
versus Treasury.
MR. WHITE: With the exception of sugar--off-shore
sugar.
H.M.JR: Is there any chance of getting Bernstein home
on account of his mother?
MR. WHITE: We did our best. Dan asked somebody in
the Army to send a cable asking him to come. There must
have been something in the way.
Regraded Unclassified
I/s
35
- 11 -
H.M.JR: Now, Chapter Three--
MR.WHITE: They will raise that, but as it looks to me
at first blush, if you say the Army is satisfied with what
they are asking, the Navy is likely to be satisfied, anyway -
there is nothing left to bargain with. Some of these items
are pretty doubtful - the tobacco and the sugar, possibly.
H.M.JR: I can say no.
MR. WHITE: They can be reserved for later. They want
those items to build up their dollar balances. There is a
lot of work we want to do about comparing the balance of
payment, and so forth, but no matter how we come out in
discussion, their picture is going to look much worse than
ours.
H.M.JR: How do you mean, much worse?
MR. WHITE: They are worse off, so far as their inter-
national position is, than they were before the war, very
substantially, and there is no disguising that fact. In
my judgment they are not nearly as badly off as they make
out, but even allowing for that fact, they still are worse
off.
We, on the other hand, from the point of view of our
international position, are no worse off and probably a
little better off. Their attempt to get as much help as
they can on that basis is very understandable, but there is
no limit to what we can give them, and they can get along
without a good deal of what they are asking.
H.M.JR: I had a lot of calls today. I had one from
Baruch and he has seen the President on the German business.
He wants me to know he is right behind me, and he wants to
point out some things - that we mustn't let the Germans get
away with anything. Then he got onto this thing - he said
he thought he could help me on that. The English pulled the
same thing after the last war, and that in order to help
Germany--
Regraded Unclassified
2/s
36
- 12 -
MR. WHITE: Of course, that is another thing I had in
mind, that what they are promising to deliver, which you
remember was quid pro quo for this up in Quebec--
H.M.JR: What part?
MR. WHITE: Their attitude on Germany was, in your
mind--
H.M.JR: That isn't what I told Stimson in your
presence. He tried to make it quid pro quo, and I told
Stimson that they came across on the German business be-
fore we agreed to this.
MR. WHITE: I didn't want to say anything, but that
wasn't quite true. They did that before they signed the
document, but the oral agreement was made before. But in
any case, in your mind they were tied together.
H.M.JR: Are you sure now?
MR. WHITE: Yes.
H.M.JR: Can you prove that to me?
MR. WHITE: I will have to reconstruct my sequence of
events.
H.M.JR: Didn't I go over that with you coming down
in the plane?
MR. WHITE: You put special stress on when they signed
the document, but if I may remind you, what Churchill said
to the President when he was trying to get the President to
agree on the document, you remember, he said, "What do you
want me to do, stand up and beg like Fala?" And the docu-
ment was signed on the Lend-Lease after, but there practi-
cally was an oral commitment before then. It was just to
be put in writing.
H.M.JR: No, I think you are wrong, Harry.
5/8
37
- 13 -
MR. WHITE: I will go back over the reports.
H.M.JR: The very first day I came up there I had
dinner that night with him and he was "agin" us.
The next morning Churchill was for us and we still
hadn't taken up the Lend-Lease - the very next morning.
He kept saying he wanted to take up the Lend-Lease and they
wouldn't. But Churchill came across with & plan Wednesday
morning, the first morning I was there. I don't know
whether I got there Tuesday or Wednesday, but I had dinner
the very first night I got there, and the next morning
Churchill agreed.
MR. WHITE: Churchill changed his mind. You spoke
to Cherwell and asked him to speak to him that night, and
the next morning he changed his mind.
H.M.JR: And up to that time I had never discussed
Lend Lease, and we did not discuss Lend Lease until Friday
morning.
MR. WHITE: With him; you did discuss it with Cherwell.
H.M.JR: But not with him.
MR. WHITE: Cherwell doubtless passed it on.
H.M.JR: And the President shot the works by being
ready to agree to the whole business. I said, "No, we
have to have a Committee." I think you are & hundred per-
cent wrong.
MR. WHITE: I may be wrong. I will go over the details.
H.M.JR: Harry, I am going to do it once more. The
first night I got up there I had dinner; Churchill was
opposed; the next morning he came around, but Mr. Roosevelt
wouldn't discuss the Lend-Lease thing until the second
morning.
MR. WHITE: Now can I go over the events as I see them?
38
- 14 -
Do you remember when the President said that you
were to discuss the German matter and the Lend-Lease, and
Churchill said, "Why not discuss them now?" - or rather,
the President said, "Why not discuss the German thing now?
The Secretary is here; let him talk with Lord Cherwell."
Lord Cherwell came with two things, you remember - he
came with two things up to your office and you said, "Which
of the two do you want to begin discussing first? Shall
we discuss the German thing first, or the Lend-Lease?"
Then he said, "Well, let's discuss the Lend-Lease, be-
cause I think we can dispose of that more quickly."
Then he spent some time discussing with you the Lend-
Lease, and then you went on to Germany.
H.M.JR: I can't remember now.
MR. WHITE: That part I definitely remember.
H.M.JR: You made notes, and I dictated a lot of stuff.
MR. WHITE: But in any case, the more significant thing
in my mind is that you tied them both up together.
H.M.JR: Yes, but the statement I made to Stimson was
correct.
MR. WHITE: Yes, it was correct because it was specifi-
cally correct. You said that he agreed to that document
after--
H.M.JR: Yes, I think my statement was correct -
specifically correct.
MR. WHITE: He signed that document before the Lend-
Lease document was prepared.
H.M. JR: There is no question in their mind, because
Churchill said that that is what he really came for.
Regraded Unclassified
39
- 15 -
Anyway, don't let's argue. But I think what I said
was true, the matter of signing. Now what you want to do
is hold them.
MR. WHITE: The important thing in your mind now is
that in their mind this thing was tied up on that. Now,
whether they will deliver on the other thing remains to be
seen, so we shouldn't deliver on this wholly without any
chance to--
H.M.JR: Dear Harry, the old man was doing a little
bargaining last night when he brought this German Directive
to their attention and said, "I should please like to see
it." And I am going to keep doing this thing while this is
before me. What did you think I was doing last night?
MR. WHITE: Yes, that is right.
H.M.JR: We are together, all right.
Regraded Unclassified
40
Dinner at the Secretary's Home
October 18, 1944, 7:00 p.m.
Present: Secretary Morgenthau
Lord Keynes
Lord Cherwell
Mr. White
The Secretary asked Cherwell and Keynes whether they would
mind discussing shop while eating dinner. Keynes said he pre-
ferred to do that and so Cherwell and Keynes alternately set
forth what in effect was an elaboration and repetition of the
material contained in Chapter 3 of the British lend-lease docu-
ment for Phase 2.
After dinner the discussion continued and the Secretary
questioned about the British blocked balances and their sig-
nificance. Keynes' answer revealed his view that they could
handle those balances without bringing undue pressure on current
0
balance of payments of England in the next decade. It was going
to be a tough problem, he said, but he thought that they could
handle it. In the conversation the Secretary stressed the fact
that the program for Phase 2 suggested by the British was not
going to solve the long-run balance of payments problem confront-
ing England. Keynes agreed that that was so.
Altogether the meeting brought no new points to light but
gave Keynes and Cherwell an opportunity to further explain the
British financial prospects, international financial prospects,
and the reasons for the various requests. Cherwell remained
behind to discuss with the Secretary some matters concerning
German directives.
H. D. White
41
OCT 18 1944
Dear Harry:
I was delighted to learn from your letter of
October 11 that arrangements had already been com-
pleted for representatives of the War Department and
the Service Commands to attend the recent Regional
Meetings of the War Finance Division.
It vas also very pleasant to learn that action has
already been taken to issue & War Department Circular
similar to that issued in previous Var Loan Campaigns,
and to have liaison officers assigned for the war
Department and the Service Commands.
Our people in Washington and the field have been
grateful for the cooperation they have received from
the Army in the past, and are certain that this close
cooperation will continue in the Sixth War Loan Drive.
Sincerely,
(Signed) Henry
Honorable Henry L. Stimson
Secretary of War
Washington, D. C.
HM:mes
Regraded Unclassified
42
WAR DEPARTMENT
WASHINGTON
Photo tat
tom
10-12-8x gamble
OCT 11 1944
Honorable Henry Morgenthau
Secretary of the Treasury
Washington, D. C.
Dear Mr. Secretary:
You will be glad to learn that, even before your letter of
4 October 1944 was received, asking the War Department to set
up liaison for the Sixth War Loan Campaign, arrangements had
been made to have representatives of the War Department and the
Service Commands meet with representatives of your War Finance
Division at regional meetings in Atlantic City, Chicago, Houston
and Los Angeles.
Action already has been taken to have issued a War Depart-
ment circular similar to that issued in previous War Loan
Campaigns, and to have liaison officers assigned for the War
Department and the Service Commands. Copies of the new circular
and a list of the liaison officers will be forwarded to the
national director of the Treasury Department War Finance Division.
I am pleased that your War Finance Committees received good
cooperation from the Army in the past and I am certain that the
cooperation will continue in the Sixth War Loan Campaign, to the
end that we all may share in a speedy victory.
Sincerely yours,
Therey L Winson
Secretary of War
DM OCL IS VW 8 vs
RECEIVED DL
OLEICE
Regraded Unclassified
43
OCT 18 1944
Dear Jim:
It was very reassuring to learn that you agree
with our approach to the Sixth War Loan, and that we
can count on the whole-hearted cooperation of the
Navy. I think your directive is excellent and will
insure the cooperation we need.
In appointing Lieutenent Commander Frank J.
Courtney, USNA, to set as liaison officer between the
Navy and the War Finance Division, and lisison officers
in each of the Navel Districts, you are making the
task of the State and Local War Finance Committees a
lot easier and are contributing to the success of the
Sixth War Loan Drive.
Sincerely,
(Signed) Henry
Honorable Jemes v. Forrestal
Secretary of the Navy
Washington, D. C.
HM:mes
Regraded Unclassified
14
THE SECRETARY OF THE NAVY
photoctat
WASHINGTON
time Samble
10-12-44
OCT 11 1944
Dear Henry:
I fully appreciate the tremendous task confronting the Treasury
in bringing off the Sixth War Loan. It seems to me that your
decision to slant the entire campaign toward the war in the
Pacific is most judicious, and I pledge you whole-hearted co-
operation on the part of the Navy.
With all this in mind, I propose to issue the following directive
to the Chiefs of Bureaus, the Commandants of Naval Districts
and the Commanding Officers of Major and Minor Shore Stations
in continental United States:
THE SIXTH WAR LOAN DRIVE BEGINNING 20 NOVEMBER AND
CONTINUING THROUGH 16 DECEMBER WILL BE DIRECTED
TOWARD THE WAR IN THE PACIFIC. FOR THIS REASON, IT
IS IMPERATIVE THAT ADDRESSEES GIVE FULLEST COOPERATION
TO WAR FINANCE DIVISION, TREASURY DEPARTMENT, AND
THAT REQUESTS FOR NAVAL PERSONNEL AND MATERIAL/FOR USE
IN THE SIXTH WAR LOAN BE GRANTED EXCEPT WHERE SUCH
ACTION WOULD MATERIALLY IMPEDE THE WAR EFFORT.
I have again appointed Lieutenant Commander Frank J. Courtney,
USNR, to act as liaison officer between the Navy and the War
Finance D1 vision, and I shall see to it that liaison officers
are appointed in each of the Naval Districts to expedite
cooperation with state and local War Finance Committees.
Sincerely,
Jim
The Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. c.
Regraded Unclassified
45
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE Oct.18, 1944
TO:
Miss Chauncey
FROM:
Harold Mager Hm.
Please bring this letter to the Secretary's attention as
soon as possible. It will be reproduced in the Sixth War Loan
booklet of the National Association of Mutual Savings Banks,
entitled "How to Build a Bond Boom in the Sixth War Loan".
46
OCT 18 1944
Dear Mr. Bruere:
As liaison officer between the Treasury and the
mutual savings banks, you can be of great assistance
in enlisting the aid of the mutual savings banks for
the Sixth War Loan Drive starting November 20.
In the Sixth War Loan, even more than in the five
war loans to date, the mutual savings banks can be of
great assistance by helping to sell their customers and
others the idea that they should buy bonds to the limit
of their abilities.
Mutual savings banks occupy a unique position of
trust and confidence in their communities and I feel
certain that it will be of tremendous assistance in the
Sixth War Loan if every mutual savings bank, large and
small, will do what many banks already have done--solicit
every one of its larger depositors face to face. Experi-
ence has shown that the best way to sell bonds is to have
folks ask other folks to buy them.
The job ahead of us in the Sixth War Loan is going
to be tougher than ever before. In previous war loans,
the mutual savings bankers of the nation worked hard and
did a good job, for which the Treasury is duly grateful.
Now that they have accepted sales quotas for themselves,
we look forward to their turning in their greatest per-
formance to date.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Henry Bruere
110 East 42nd Street
New York, New York
SWP:agd
Regraded Unclassified
THE BOWERY SAVINGS BANK
no EAST 42xo STREET
NEW YORK
ROBERT W. SPARKS
VICE-PRESIDENT
October 10, 1944
Mr. Stanley W. Prenosil, Technical Assistant
War Finance Division
U. S. Treasury
Washington Building
Washington, D. C.
Dear Stan:
No doubt you are aware by this time that
Ted Gamble has seen the dummy for the savings banks'
6th War Loan book and is enthusiastic about it.
We will proceed along the general lines discussed
with you when you were in New York last time.
The material that you sent to Mrs. French
has been helpful as have been the many constructive
suggestions you have made.
We are relying on you to see that we are
supplied with a letter from the Secretary addressed
to Mr. Bruere as Liaizon Officer between the Treasury
and the mutual savings banks. If you will be good
enough to get this to us as soon as possible I will
appreciate it.
With best wishes,
Bolspario Sincerely yours,
Vice President
rws:fr
FORDEFENSE
BUY
UNITED
STATES
SAVENGS
BONDS
-
Regraded Unclassified
48
25
October 18, 1944.
Dear Spyrest
Thank you for your very kind tolegram.
I appreciated what you said.
I want to thank you again for the pleasant
evening you gave me on the let at 20th Century
Fox. I very such enjoyed the dinner and the
opportunity for this interesting visit.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Spyres Skouras,
20th Century Fox Pilm Corporation,
West Les Angeles, California.
GEF/dbs
Regraded Unclassified
49
Dear Spyros:
Thank you for your very kind telegram.
I again want to thank you for the most pleasant
evening you gave me on the lot at 20th Century Fox.
With best regards,
Sincerely yours,
Regraded Unclassified
50
WESTERN
1220
SYMBOLS
CLASS OF SERVICE
DL=Day Letter
This is a full-rate
Telegram or Cable-
NL-Night Lense
gram unless its de-
atted character la In-
UNION
LC=Deferred Cable
ted by a suitable
NLT-Cable Night Lenser
symbol above or pre-
coding the address.
A.N. WILLIAMS
Ship Radiogram
PRESIDENT
The filing time shown in the date line on telegrams and day letters is STANDARD TIME at point of origin. Time of receipt in STANDARD TIME at point of destr.
LONGSA366 NL PD=WUX TDS WESTLOSANGELES CALIF
16
17
45
SECRETARY HENRY MORGENTHAU JR=
TREASUREY DEPARTMENT WASHDC=
DEAR MR. SECRETARY: I WANT YOU TO KNOW HOW HAPPY I WAS TO HAVE
HAD PRIVILEGE AND HONOR OF SEEING YOU AND VISITING WITH YOU
DURING YOUR RECENT TRIP TO CALIFORNIIA. IT WAS GREAT THRILL
FOR ME TO SIT WITH YOU AT LUNCHEON AT BILTMORE HOTEL AND TO
HAVE HAD PLEASURE OF LISTENING TO YOUR CONSTRUCTIVE INFORMATIVE
INSPIRING ADDRESS ON FORTHCOMING SIXTH WAR LOAN DRIVE.
EVRYONE WITH WHOM I SPOKE AFTER YOUR TALK WAS IMPRESSED WITH
YOUR REMARKS. ALL OF THE PEOPLE WHO WERE WITH US AT DINNER
FRIDAY NIGHT ARE STILL TALKING ABOUT THE WONDERFUL EVENING
THEY SPENT IN YOUR COMPANY. WITH BEST REGARDS ALWAYS I REMAIN
SINCERELY=
SPYROS SKOURAS.
THE COMPANY WILL APPRECIATE SUGGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE
Regraded Unclassified
51
25
October 18, 1944.
Dear Rd:
Thank you for your letter of October 16,
which transmitted a copy of the specially
printed edition of the Dumbarton Oaks proposals.
I an glad to have this special edition of the
proposals and appreciate your thoughtfulness in
sending it to no.
with best regards,
Sincerely yours,
(Signed) Henry
Nonorable Bdward 2. Stettinius, 32.,
Under Secretary of State,
Washington, D. c.
GEF/dbs
Regraded Unclassified
52
THE UNDER SECRETARY OF STATE
WASHINGTON
October 16, 1944
Dear Henry,
You have already received one of the
officially issued copies of the Dumbarton
Oaks proposals, but I thought that it
might also be useful for you to have a
copy of the specially printed edition
which has now been issued.
With best wishes,
Sincerely yours,
E
The Honorable
OCL
18
Henry Morgenthau, Jr.
OLLICE
Secretary of the Treasury
53
DUMBARTON OAKS
DOCUMENTS
ON INTERNATIONAL
ORGANIZATION
STATES OF ANEX
DUMBARTON OAKS
DOCUMENTS ON
INTERNATIONAL
ORGANIZATION
Regraded Unclassified
CONTENTS
PAGE
STATEMENT BY THE PRESIDENT OF THE
UNITED STATES REGARDING THE
DUMBARTON OAKS PROPOSALS
I
STATEMENT BY THE SECRETARY OF STATE
OF THE UNITED STATES
3
REPORT TO THE SECRETARY OF STATE SUB-
MITTED BY THE CHAIRMAN OF THE
AMERICAN DELEGATION TO THE WASH-
INGTON CONVERSATIONS ON INTERNA-
TIONAL ORGANIZATION
5
STATEMENT ISSUED SIMULTANEOUSLY BY
THE PARTICIPATING GOVERNMENTS
7
PROPOSALS FOR THE ESTABLISHMENT OF
A GENERAL INTERNATIONAL ORGANI-
ZATION
8
Regraded Unclassified
STATEMENT BY THE PRESIDENT OF THE UNITED STATES
REGARDING THE DUMBARTON OAKS PROPOSALS
I WISH to take this opportunity to refer to the work of the Dumbarton
Oaks Conversations between the delegations of the United States, the
United Kingdom, the Soviet Union, and China on the plans for an
international organization for the maintenance of peace and security.
The conversations were completed Saturday, October 7, 1944, and
proposals were submitted to the four Governments for their consid-
eration. These proposals have been made public to permit full dis-
cussion by the people of this country prior to the convening of a
wider conference on this all-important subject.
Although I have not yet been able to make a thorough study of these
proposals, my first impression is one of extreme satisfaction, and even
surprise, that so much could have been accomplished on so difficult a
subject in so short a time. This achievement was largely due to the
long and thorough preparations which were made by the Governments
represented, and in our case, was the result of the untiring devotion and
care which the Secretary of State has personally given to this work for
more than two and a half years-indeed for many years.
The projected international organization has for its primary purpose
the maintenance of international peace and security and the creation
of the conditions that make for peace.
We now know the need for such an organization of the peace-loving
peoples and the spirit of unity which will be required to maintain it.
Aggressors like Hitler and the Japanese war lords organize for years
for the day when they can launch their evil strength against weaker
I
Regraded Unclassified
nations devoted to their peaceful pursuits. This time we have been
STATEMENT BY THE SECRETARY OF STATE
determined first to defeat the enemy, assure that he shall never again
OF THE UNITED STATES
be in position to plunge the world into war, and then to so organize the
peace-loving nations that they may through unity of desire, unity of
THE PROPOSALS for an international organization for the maintenance
will, and unity of strength be in position to assure that no other would-
of international peace and security, upon which the representatives of
be aggressor or conqueror shall even get started. That is why from
the United States, the United Kingdom, the Soviet Union, and China
the very beginning of the war, and paralleling our military plans, we
have agreed during the conversations at Dumbarton Oaks, have been
have begun to lay the foundations for the general organization for the
submitted to the four Governments and are today being made gen-
maintenance of peace and security.
erally available to the people of this Nation and of the world.
It represents, therefore, a major objective for which this war is being
All of us have every reason to be immensely gratified by the results
fought, and as such, it inspires the highest hopes of the millions of
achieved at these conversations. To be sure, the Proposals in their
fathers and mothers whose sons and daughters are engaged in the
present form are neither complete nor final. Much work still remains
terrible struggle and suffering of war.
to be done before a set of completed proposals can be placed before the
The projected general organization may be regarded as the keystone
peace-loving nations of the world as a basis of discussion at a formal
of the arch and will include within its framework a number of special-
conference to draft a charter of the projected organization for sub-
ized economic and social agencies now existing or to be established.
mission to the governments. But the document which has been pre-
The task of planning the great design of security and peace has been
pared by the able representatives of the four participating nations and
well begun. It now remains for the nations to complete the structure
has been agreed to by them as their recommendation to their respective
in a spirit of constructive purpose and mutual confidence.
Governments is sufficiently detailed to indicate the kind of an inter-
OCTOBER 9, 1944
national organization which, in their judgment, will meet the impera-
tive need of providing for the maintenance of international peace and
security.
These proposals are now being studied by the four Governments
which were represented at the Washington Conversations and which
will give their urgent attention to the next steps which will be
necessary to reach the goal of achieving the establishment of an effec-
tive international organization.
These proposals are now available for full study and discussion by
the peoples of all countries.
We in this country have spent many months in careful planning
2
3
Regraded Unclassified
and wide consultation in preparation for the conversations which have
REPORT TO THE SECRETARY OF STATE
just been concluded. Those who represented the Government of the
SUBMITTED BY THE CHAIRMAN OF THE AMERICAN DELEGATION TO THE
United States in these discussions were armed with the ideas and
WASHINGTON CONVERSATIONS ON INTERNATIONAL ORGANIZATION
with the results of thinking contributed by numerous leaders of our
national thought and opinion, without regard to political or other
I TAKE great pleasure in submitting to you the results of the explora-
affiliations.
tory conversations on international organization held in Washington
It is my earnest hope that, during the time which must elapse be-
between representatives of the Governments of the United States, the
fore the convocation of a full United Nations conference, discussions
United Kingdom, the Soviet Union, and China. The first phase of
in the United States on this all-important subject will continue to
the conversations, between representatives of the United States, the
be carried on in the same non-partisan spirit of devotion to our para-
United Kingdom, and the Soviet Union, took place from August 21
mount national interest in peace and security which has character-
to September 28; the second phase, between representatives of the
ized our previous consultations. I am certain that all of us will be
United States, the United Kingdom, and China, was held from Sep-
constantly mindful of the high responsibility for us and for all peace-
tember 29 to October 7. The results of the work accomplished in both
loving nations which attaches to this effort to make permanent a vic-
phases are embodied in the following Proposals which each of the
tory purchased at so heavy a cost in blood, in tragic suffering, and in
four delegations is transmitting to its respective Government as the
treasure. We must be constantly mindful of the price which all of us
unanimously agreed recommendations of the four delegations.
will pay if we fail to measure up to this unprecedented responsibility.
I am happy to report that the conversations throughout were charac-
It is, of course, inevitable that when many governments and peoples
terized by a spirit of complete cooperation and great cordiality among
attempt to agree on a single plan the result will be in terms of the
all participants, the proof of which is evident in the wide area of
highest common denominator rather than of the plan of any one
agreement covered in the Proposals. The few questions which remain
nation. The organization to be created must reflect the ideas and
for further consideration, though important, are not in any sense in-
hopes of all the peace-loving nations which participate in its creation.
superable, and I recommend that the necessary steps for obtaining
The spirit of cooperation must manifest itself in mutual striving to
agreement on these points be taken as soon as possible.
attain the high goal by common agreement.
It is proper to emphasize, at the conclusion of these preliminary
The road to the establishment of an international organization
conversations, that the Proposals as they are now submitted to the four
capable of effectively maintaining international peace and security
Governments comprise substantial contributions from each of the dele-
will be long. At times it will be difficult. But we cannot hope to
gations. It is my own view, which I believe is shared by all the partici-
attain so great an objective without constant effort and unfailing
pants, that the agreed Proposals constitute an advance over the tentative
determination that the sacrifices of this war shall not be in vain.
and preliminary proposals presented by each delegation. This has
OCTOBER 9, 1944
resulted from a single-minded effort of all the delegations at Dum-
4
5
barton Oaks to reach a common understanding as to the most effective
STATEMENT ISSUED SIMULTANEOUSLY BY THE
international organization capable of fulfilling the hopes of all peoples
PARTICIPATING GOVERNMENTS
everywhere.
I wish to take this opportunity to express my grateful recognition of
THE GOVERNMENT of the United States has now received the report
the contribution to the successful outcome of these conversations made
of its delegation to the conversations held in Washington between
by the members of the American delegation and to commend the
August 21 and October 7, 1944, with the delegations of the United
advisers and the staff for their most helpful assistance. Above all, I
Kingdom, the Union of Soviet Socialist Republics, and the Republic
wish to express my profound appreciation to the President and to you,
of China on the subject of an international organization for the
Mr. Secretary, for the constant advice and guidance without which
maintenance of peace and security.
our work could not have been accomplished with such constructive
There follows a statement of tentative proposals indicating in
and satisfactory results.
detail the wide range of subjects on which agreement has been
reached at the conversations.
E. R. STETTINIUS, JR.
The Governments which were represented in the discussions in
OCTOBER 7, 1944
Washington have agreed that after further study of these proposals
they will as soon as possible take the necessary steps with a view to
the preparation of complete proposals which could then serve as a
basis of discussion at a full United Nations conference.
OCTOBER 9, 1944
6
7
PROPOSALS
2. All members of the Organization undertake, in order to ensure
to all of them the rights and benefits resulting from membership in
FOR THE ESTABLISHMENT OF
the Organization, to fulfill the obligations assumed by them in accord-
A GENERAL INTERNATIONAL ORGANIZATION
ance with the Charter.
3- All members of the Organization shall settle their disputes by
THERE should be established an international organization under the
peaceful means in such a manner that international peace and security
title of The United Nations, the Charter of which should contain pro-
are not endangered.
visions necessary to give effect to the proposals which follow.
4- All members of the Organization shall refrain in their inter-
CHAPTER I. PURPOSES
national relations from the threat or use of force in any manner
inconsistent with the purposes of the Organization.
The purposes of the Organization should be:
5. All members of the Organization shall give every assistance to
1. To maintain international peace and security; and to that end to
the Organization in any action undertaken by it in accordance with
take effective collective measures for the prevention and removal of
threats to the peace and the suppression of acts of aggression or other
the provisions of the Charter.
6. All members of the Organization shall refrain from giving assist-
breaches of the peace, and to bring about by peaceful means adjustment
ance to any state against which preventive or enforcement action is
or settlement of international disputes which may lead to a breach of
the peace;
being undertaken by the Organization.
2. To develop friendly relations among nations and to take other
The Organization should ensure that states not members of the
appropriate measures to strengthen universal peace;
Organization act in accordance with these principles so far as may
3- To achieve international cooperation in the solution of inter-
be necessary for the maintenance of international peace and security.
national economic, social and other humanitarian problems; and
CHAPTER III. MEMBERSHIP
4. To afford a center for harmonizing the actions of nations in the
achievement of these common ends.
1. Membership of the Organization should be open to all peace-
loving states.
CHAPTER II. PRINCIPLES
CHAPTER IV. PRINCIPAL ORGANS
In pursuit of the purposes mentioned in Chapter I the Organiza-
tion and its members should act in accordance with the following
I. The Organization should have as its principal organs:
principles:
a. A General Assembly;
I. The Organization is based on the principle of the sovereign
b. A Security Council;
c. An international court of justice; and
equality of all peace-loving states.
d. A Secretariat.
8
9
Regraded Unclassified
2. The Organization should have such subsidiary agencies as may
against which preventive or enforcement action shall have been taken
be found necessary.
by the Security Council. The exercise of the rights and privileges
thus suspended may be restored by decision of the Security Council.
CHAPTER V. THE GENERAL ASSEMBLY
The General Assembly should be empowered, upon recommendation
of the Security Council, to expel from the Organization any member
Section A. Composition
of the Organization which persistently violates the principles con-
All members of the Organization should be members of the General
tained in the Charter.
Assembly and should have a number of representatives to be specified
4- The General Assembly should elect the non-permanent members
in the Charter.
of the Security Council and the members of the Economic and Social
Section B. Functions and Powers
Council provided for in Chapter IX. It should be empowered to elect,
upon recommendation of the Security Council, the Secretary-General
I. The General Assembly should have the right to consider the
of the Organization. It should perform such functions in relation to
general principles of cooperation in the maintenance of international
the election of the judges of the international court of justice as may
peace and security, including the principles governing disarmament
be conferred upon it by the statute of the court.
and the regulation of armaments; to discuss any questions relating to
the maintenance of international peace and security brought before
5. The General Assembly should apportion the expenses among
it by any member or members of the Organization or by the Security
the members of the Organization and should be empowered to
Council; and to make recommendations with regard to any such
approve the budgets of the Organization.
principles or questions. Any such questions on which action is
6. The General Assembly should initiate studies and make recom-
necessary should be referred to the Security Council by the General
mendations for the purpose of promoting international cooperation
Assembly either before or after discussion. The General Assembly
in political, economic and social fields and of adjusting situations
should not on its own initiative make recommendations on any
likely to impair the general welfare.
matter relating to the maintenance of international peace and
7- The General Assembly should make recommendations for the
security which is being dealt with by the Security Council.
coordination of the policies of international economic, social, and
2. The General Assembly should be empowered to admit new mem-
other specialized agencies brought into relation with the Organization
bers to the Organization upon recommendation of the Security
in accordance with agreements between such agencies and the
Council.
Organization.
3. The General Assembly should, upon recommendation of the
8. The General Assembly should receive and consider annual and
Security Council, be empowered to suspend from the exercise of any
special reports from the Security Council and reports from other
rights or privileges of membership any member of the Organization
bodies of the Organization.
10
II
Regraded Unclassified
Section C. Voting
Assembly should elect six states to fill the non-permanent seats. These
I. Each member of the Organization should have one vote in the
six states should be elected for a term of two years, three retiring each
General Assembly.
year. They should not be immediately eligible for reelection. In the
2. Important decisions of the General Assembly, including recom-
first election of the non-permanent members three should be chosen by
mendations with respect to the maintenance of international peace and
the General Assembly for one-year terms and three for two-year terms.
security; election of members of the Security Council; election of mem-
Section B. Principal Functions and Powers
bers of the Economic and Social Council; admission of members,
suspension of the exercise of the rights and privileges of members, and
I. In order to ensure prompt and effective action by the Organiza-
expulsion of members; and budgetary questions, should be made by a
tion, members of the Organization should by the Charter confer on the
two-thirds majority of those present and voting. On other questions,
Security Council primary responsibility for the maintenance of inter-
including the determination of additional categories of questions to be
national peace and security and should agree that in carrying out these
decided by a two-thirds majority, the decisions of the General Assembly
duties under this responsibility it should act on their behalf.
should be made by a simple majority vote.
2. In discharging these duties the Security Council should act in
accordance with the purposes and principles of the Organization.
Section D. Procedure
3- The specific powers conferred on the Security Council in order to
I. The General Assembly should meet in regular annual sessions and
carry out these duties are laid down in Chapter VIII.
in such special sessions as occasion may require.
4- All members of the Organization should obligate themselves to
2. The General Assembly should adopt its own rules of procedure
accept the decisions of the Security Council and to carry them out in
and elect its President for each session.
accordance with the provisions of the Charter.
3- The General Assembly should be empowered to set up such bodies
5. In order to promote the establishment and maintenance of inter-
and agencies as it may deem necessary for the performance of its
national peace and security with the least diversion of the world's
functions.
human and economic resources for armaments, the Security Council,
CHAPTER VI. THE SECURITY COUNCIL
with the assistance of the Military Staff Committee referred to in Chap-
ter VIII, Section B, paragraph 9, should have the responsibility for
Section A. Composition
formulating plans for the establishment of a system of regulation of
The Security Council should consist of one representative of each
armaments for submission to the members of the Organization.
of eleven members of the Organization. Representatives of the United
Section C. Voting
States of America, the United Kingdom of Great Britain and Northern
Ireland, the Union of Soviet Socialist Republics, the Republic of China,
(Nore-The question of voting procedure in the Security Council
and, in due course, France, should have permanent seats. The General
is still under consideration.)
12
13
Regraded Unclassified
Section D. Procedure
ance with a statute which should be annexed to and be a part of the
I. The Security Council should be so organized as to be able to
Charter of the Organization.
function continuously and each state member of the Security Council
3- The statute of the court of international justice should be either
should be permanently represented at the headquarters of the Organ-
(a) the Statute of the Permanent Court of International Justice, con-
ization. It may hold meetings at such other places as in its judgment
tinued in force with such modifications as may be desirable or (b)
may best facilitate its work. There should be periodic meetings at
a new statute in the preparation of which the Statute of the Per-
which each state member of the Security Council could if it so desired
manent Court of International Justice should be used as a basis.
be represented by a member of the government or some other special
4- All members of the Organization should ipso facto be parties to
representative.
the statute of the international court of justice.
2. The Security Council should be empowered to set up such bodies
5. Conditions under which states not members of the Organiza-
or agencies as it may deem necessary for the performance of its func-
tion may become parties to the statute of the international court of
tions including regional subcommittees of the Military Staff Com-
justice should be determined in each case by the General Assembly
mittee.
upon recommendation of the Security Council.
3. The Security Council should adopt its own rules of procedure,
including the method of selecting its President.
CHAPTER VIII. ARRANGEMENTS FOR THE MAINTENANCE OF INTERNA-
4. Any member of the Organization should participate in the dis-
TIONAL PEACE AND SECURITY INCLUDING PREVENTION AND SUPPRESSION
OF ACGRESSION
cussion of any question brought before the Security Council whenever
the Security Council considers that the interests of that member of
Section A. Pacific Settlement of Disputes
the Organization are specially affected.
1. The Security Council should be empowered to investigate any
5. Any member of the Organization not having a seat on the
dispute, or any situation which may lead to international friction or
Security Council and any state not a member of the Organization,
give rise to a dispute, in order to determine whether its continuance is
if it is a party to a dispute under consideration by the Security Coun-
likely to endanger the maintenance of international peace and security.
cil, should be invited to participate in the discussion relating to the
2. Any state, whether member of the Organization or not, may
dispute.
bring any such dispute or situation to the attention of the General
Assembly or of the Security Council.
CHAPTER VII. AN INTERNATIONAL COURT OF JUSTICE
3. The parties to any dispute the continuance of which is likely to
I. There should be an international court of justice which should
endanger the maintenance of international peace and security should
constitute the principal judicial organ of the Organization.
obligate themselves, first of all, to seek a solution by negotiation,
2. The court should be constituted and should function in accord-
mediation, conciliation, arbitration or judicial settlement, or other
14
15
Regraded
peaceful means of their own choice. The Security Council should call
2. In general the Security Council should determine the existence of
upon the parties to settle their dispute by such means.
any threat to the peace, breach of the peace or act of aggression and
4. If, nevertheless, parties to a dispute of the nature referred to in
should make recommendations or decide upon the measures to be
paragraph 3 above fail to settle it by the means indicated in that para-
taken to maintain or restore peace and security.
graph, they should obligate themselves to refer it to the Security
3. The Security Council should be empowered to determine what
Council, The Security Council should in each case decide whether or
diplomatic, economic, or other measures not involving the use of armed
not the continuance of the particular dispute is in fact likely to en-
force should be employed to give effect to its decisions, and to call upon
danger the maintenance of international peace and security, and,
members of the Organization to apply such measures. Such measures
accordingly, whether the Security Council should deal with the dis-
may include complete or partial interruption of rail, sea, air, postal,
pute, and, if so, whether it should take action under paragraph 5.
telegraphic, radio and other means of communication and the sever-
5. The Security Council should be empowered, at any stage of a
ance of diplomatic and economic relations.
dispute of the nature referred to in paragraph 3 above, to recommend
4. Should the Security Council consider such measures to be in-
appropriate procedures or methods of adjustment.
adequate, it should be empowered to take such action by air, naval or
6. Justiciable disputes should normally be referred to the inter-
land forces as may be necessary to maintain or restore international
national court of justice. The Security Council should be empowered
peace and security. Such action may include demonstrations, blockade
to refer to the court, for advice, legal questions connected with other
and other operations by air, sea or land forces of members of the
disputes.
Organization.
7- The provisions of paragraph I to 6 of Section A should not apply
5. In order that all members of the Organization should contribute
to situations or disputes arising out of matters which by international
to the maintenance of international peace and security, they should
law are solely within the domestic jurisdiction of the state concerned.
undertake to make available to the Security Council, on its call and
in accordance with a special agreement or agreements concluded among
Section B. Determination of Threats to the Peace or Acts of
Aggression and Action With Respect Thereto
themselves, armed forces, facilities and assistance necessary for the
purpose of maintaining international peace and security. Such agree-
I. Should the Security Council deem that a failure to settle a dispute
ment or agreements should govern the numbers and types of forces
in accordance with procedures indicated in paragraph 3 of Section A,
and the nature of the facilities and assistance to be provided. The
or in accordance with its recommendations made under paragraph 5 of
special agreement or agreements should be negotiated as soon as
Section A, constitutes a threat to the maintenance of international peace
possible and should in each case be subject to approval by the Security
and security, it should take any measures necessary for the maintenance
Council and to ratification by the signatory states in accordance with
of international peace and security in accordance with the purposes and
their constitutional processes.
principles of the Organization.
6. In order to enable urgent military measures to be taken by the
16
17
Regraded Unclassified
Organization there should be held immediately available by the mem-
quires that such a state should participate in its work. Questions of
bers of the Organization national air force contingents for combined
command of forces should be worked out subsequently.
international enforcement action. The strength and degree of readiness
10. The members of the Organization should join in affording
of these contingents and plans for their combined action should be
mutual assistance in carrying out the measures decided upon by the
determined by the Security Council with the assistance of the Military
Security Council.
Staff Committee within the limits laid down in the special agreement
11. Any state, whether a member of the Organization or not, which
or agreements referred to in paragraph 5 above.
finds itself confronted with special economic problems arising from
7. The action required to carry out the decisions of the Security
the carrying out of measures which have been decided upon by the
Council for the maintenance of international peace and security
Security Council should have the right to consult the Security Council
should be taken by all the members of the Organization in coopera-
in regard to a solution of those problems.
tion or by some of them as the Security Council may determine. This
undertaking should be carried out by the members of the Organiza-
Section C. Regional Arrangements
tion by their own action and through action of the appropriate
I. Nothing in the Charter should preclude the existence of regional
specialized organizations and agencies of which they are members.
arrangements or agencies for dealing with such matters relating to
8. Plans for the application of armed force should be made by the
the maintenance of international peace and security as are appropriate
Security Council with the assistance of the Military Staff Committee
for regional action, provided such arrangements or agencies and their
referred to in paragraph 9 below.
activities are consistent with the purposes and principles of the Organ-
9- There should be established a Military Staff Committee the
ization. The Security Council should encourage settlement of local
functions of which should be to advise and assist the Security Council
disputes through such regional arrangements or by such regional
on all questions relating to the Security Council's military require-
agencies, either on the initiative of the states concerned or by reference
ments for the maintenance of international peace and security, to the
from the Security Council.
employment and command of forces placed at its disposal, to the
2. The Security Council should, where appropriate, utilize such
regulation of armaments, and to possible disarmament, It should be
arrangements or agencies for enforcement action under its authority,
responsible under the Security Council for the strategic direction of
but no enforcement action should be taken under regional arrange-
any armed forces placed at the disposal of the Security Council. The
ments or by regional agencies without the authorization of the Secu-
Committee should be composed of the Chiefs of Staff of the perma-
rity Council.
nent members of the Security Council or their representatives. Any
3. The Security Council should at all times be kept fully informed
member of the Organization not permanently represented on the
of activities undertaken or in contemplation under regional arrange-
Committee should be invited by the Committee to be associated with
ments or by regional agencies for the maintenance of international
it when the efficient discharge of the Committee's responsibilities re-
peace and security.
18
19
Regraded Unclassified
CHAPTER IX. ARRANGEMENTS FOR INTERNATIONAL ECONOMIC AND
b. to make recommendations, on its own initiative, with respect
SOCIAL COOPERATION
to international economic, social and other humanitarian
Section A. Purpose and Relationships
matters;
I. With a view to the creation of conditions of stability and well-
c. to receive and consider reports from the economic, social and
being which are necessary for peaceful and friendly relations among
other organizations or agencies brought into relationship with
nations, the Organization should facilitate solutions of international
the Organization, and to coordinate their activities through
economic, social and other humanitarian problems and promote re-
consultations with, and recommendations to, such organiza-
spect for human rights and fundamental freedoms. Responsibility for
tions or agencies;
the discharge of this function should be vested in the General Assem-
d. to examine the administrative budgets of such specialized
bly and, under the authority of the General Assembly, in an Economic
organizations or agencies with a view to making recommen-
and Social Council.
dations to the organizations or agencies concerned;
2. The various specialized economic, social and other organizations
e. to enable the Secretary-General to provide information to the
and agencies would have responsibilities in their respective fields as
Security Council;
defined in their statutes. Each such organization or agency should be
f. to assist the Security Council upon its request; and
brought into relationship with the Organization on terms to be deter-
g. to perform such other functions within the general scope of
mined by agreement between the Economic and Social Council and
its competence as may be assigned to it by the General
the appropriate authorities of the specialized organization or agency,
Assembly.
subject to approval by the General Assembly.
Section D. Organization and Procedure
Section B. Composition and Voting
I. The Economic and Social Council should set up an economic
The Economic and Social Council should consist of representatives
of eighteen members of the Organization. The states to be represented
commission, a social commission, and such other commissions as may
be required. These commissions should consist of experts. There should
for this purpose should be elected by the General Assembly for terms
be a permanent staff which should constitute a part of the Secretariat
of three years. Each such state should have one representative, who
of the Organization.
should have one vote. Decisions of the Economic and Social Council
2. The Economic and Social Council should make suitable arrange-
should be taken by simple majority vote of those present and voting.
ments for representatives of the specialized organizations or agencies
Section C. Functions and Powers of the Economic and Social Council
to participate without vote in its deliberations and in those of the com-
I. The Economic and Social Council should be empowered:
missions established by it.
a. to carry out, within the scope of its functions, recommenda-
3- The Economic and Social Council should adopt its own rules of
tions of the General Assembly;
procedure and the method of selecting its President.
20
21
Regraded Unclassified
CHAPTER X. THE SECRETARIAT
that Declaration should consult with one another and as occasion arises
I. There should be a Secretariat comprising a Secretary-General and
with other members of the Organization with a view to such joint
such staff as may be required. The Secretary-General should be the
action on behalf of the Organization as may be necessary for the pur-
chief administrative officer of the Organization. He should be elected
pose of maintaining international peace and security.
by the General Assembly, on recommendation of the Security Council,
2. No provision of the Charter should preclude action taken or
for such term and under such conditions as are specified in the
authorized in relation to enemy states as a result of the present war by
Charter.
the Governments having responsibility for such action.
2. The Secretary-General should act in that capacity in all meetings
of the General Assembly, of the Security Council, and of the Eco-
NOTE
nomic and Social Council and should make an annual report to the
General Assembly on the work of the Organization.
In addition to the question of voting procedure in the Security
3- The Secretary-General should have the right to bring to the
Council referred to in Chapter VI, several other questions are still
under consideration.
attention of the Security Council any matter which in his opinion
may threaten international peace and security.
WASHINGTON, D. C.
October 7. 1944
CHAPTER XI. AMENDMENTS
Amendments should come into force for all members of the
Organization, when they have been adopted by a vote of two-thirds
of the members of the General Assembly and ratified in accordance
with their respective constitutional processes by the members of the
Organization having permanent membership on the Security Council
and by a majority of the other members of the Organization.
CHAPTER XII. TRANSITIONAL ARRANGEMENTS
I. Pending the coming into force of the special agreement or agree-
ments referred to in Chapter VIII, Section B, paragraph 5, and in
accordance with the provisions of paragraph 5 of the Four-Nation
Declaration, signed at Moscow, October 30, 1943, the states parties to
22
a. GOVERNMENT PRINTING OFFICE: 1944
Regraded Unclassified
54
OCT 18 1944
Dear Mr.
Thank you for your letter of October 10, 1944.
I an glad to have your view of the attitude of the
National Foreign Trade Convention toward the Brotton
Woods proposals.
I agree with you that the great tank now is to
bring home to the American people the importance of
the Fund and the Bank to our own well being.
Very truly yours,
(Signed) II. Morgenthau. Jr.
Secretary of the Treasury.
Mr. H. Engone Diskhuth,
Financial Riitorial Department,
Herald Tribune,
230 West 41st Street,
New York 18, Yes York.
HDW ABDER WRaff 10/17/ FILE COPY
NEW
YORK
Herald
Tribune
230 West 41st Street, New York
Oct. 10, 1944
Dear Mr. Morgenthau,
it was very good of you to write me about my
article of Oct.1 from Chicago regarding the reaction of American
Bankers Association delegates' on the Bretton Woods proposals. Two
other newspaper men who were present agreed that the story "nearly
h&t one in the face" after talking to any number of representatives
privately.
The article was strictly reporting, as I saw
it, and I was very glad to receive your comments. They served also
$9 an offset, #8 it were, to the other kind of "reaction" to the
article which questioned the accuracy of my observations.
At the risk of repeating what you may know
already, the National Foreign Trade convention now in session here
#lso discussed Bretton Woods at length and they are likely to issue
a resolution comparable in spirit to that of the American Bankers
Association. In fact, three broad groups seem to be emerging in the
country as a whole. One, represented by E.E. Brown, president of
the First National Bank of Chicago, fully embracing Bretton Woods.
The opposite school, of which W. Winthrop Aldrich seems to be
symptomatic who cannot find much, 1f anything laudable in the
proposals; and a third, represented perhaps by National City Bank
and the American Bankers Association which is essentially constructive
and would like to adopt what they consider sound parts of the program
"adapting" other features less agreeable to them.
It would seem to me, however, that a strong
public opinion which you mention as desirable, either pro or con,
cannot develop in any strength unless it can be shown with some degree
of accuracy how the average pocket book and pay envelope would be
affected either by the working of the Bretton Woods proposals or
by the absence of any agreement.
Thanking you again for your note, I am
sincerely
H. Eugene Dickhuth
Financial Editorial Department
last OCL IS W as
Mr. Henry Morgenthad,
with
Secretary of the Treasury
9
Washington C. 2084
06610E
Regraded Unclassif
Bretton Woods
It should be observed. however,
that about 400 of the more than
3,000 bankers in attendance here
Proposals Win
this week came from the Chicago
area and the out-of-New York In-
fluence predominated at the with-
Bankers' Favor
erings, There can be little doubt
that proposals which have been
advanced in the East for elaborate
plans to support Great Britain
Many at A.B.A. Convention
alone as an initial measure are not
Feel World Agreement
regarded as palatable here.
Those bankers with Latin-Amer-
Must Be ReachedQuickly
lean connections who were here
made It clear that such a "key
By H. Eugene Dickhuth
1
country approach" embracing nb
first merely the United States and
CHICAGO, Sept. 30.-One of the
the United Kingdom would be bad
unpublicized developments of the
polities south of the Rio Grande
three-day convention of the Amer-
since It would be regarded as an
Anglo-American attempt at possi-
lean Bankers Association held
ble economic domination of the
here this week was a crystallizas
world's trade lanes,
tion of the banking viewpoint on
Need for World Program Realized
International monetary stabiliza-
Here in the cradle of former
tion proposals advanced at the
American isolationism there ap-
Bretton Woods conference.
pears to be a genuine realization of
Inquiries among attending deley
the imperativeness of interna-
gates made it clear that an In-
tional co-operation on a very broad
creasing number of financial men
scale as an antidote for a possible
from all parts of the country not
World War III which would prob-
only favor the widest possible CO-
ably begin with rocket bombs dev-
operation among the nations of
astating industrial centers in the
the world, but lean more toward
United States with greater "effl-
the school of thought represented
ciency" than that wrought on
by Edward E. Brown, president of
cities abroad in this war.
First National Bank of Chicago,
Serious study of the Bretton
than that expressed by Winthrop
Woods proposals by various groups
W. Aldrich, chairman of Chase
are proceeding now with much
National Bank, and by National
energy. The economic policy com-
City Bank.
mission of the A. B. A. is pursuing
In fact, those bankers seem in-
its studies and the New York State
clined to embrace the Bretton
Bankers Association committee on
Woods proposals in lied of any
this subect has already consulted
others which have reached an
with officials of the Treasury and
equal state of international agree-
State Departments.
ment. They think the time is past
There is also a reserve city bank-
when monetary agreements could
era' committee working on the in-
wait upon tariff changes in the
ternational monetary proposals,
various countries or upon neces-
and in due course all these groups
sary reform measures.
will issue their reports and find-
Non-Partisan Policy Urged
ings. Most of them apparently will
be deferred until after the elec-
In their opinion, the war in Eu-
tions and only the new Congress
rope has progressed with such TR-
will probably be asked to pass on
pidity that some sort of basic un-
necessary legislation for the inter-
derstanding is needed badly in the
national bank and the fund.
near future lest chaos in liberated
If the opinions expressed here
countries overtake the planners.
by American bankers this week are
At the same time, unanimous
any criterion, the chances are that
agreement has been expressed here
banking reaction as & whole will
privately and by the A. B. A. of-
show much less opposition to the
ficially that the pros and cons of
Bretton Woods suggestions than
the Bretton Woods I proposals
seemed possible a few months ago,
should be strictly non-partisan.
This Is held to be important in
this Presidential élection year and
follows the general pattern of the
unwritten agreement between Re-
publicans and Democrats to keep
the resolutions of the Dumbarton
Oaks conference out of politics,
too. Indeed. Bretton Woods, Dum-
barton Oaks, the United Nations
Relief and Rehabilitation Admin-
istration, the International food
discussions, all are beginning to be
looked upon as a whole which only
together can play an important
role,
OCT 18 1944
Dear Mr. Creightons
I have just received your letter of October 13, 1944
enclosing a copy of the remarks on the proposal for an
International Monetary Fund and the proposal for an Inter-
national Bank for Reconstruction and Development included
in your address to the recent Stockholder's Meeting of the
Federal Reserve Bank of Boston. I appreciate your thought-
fulness in sending this copy to me.
As you state in your letter "Now England can rightly
take pride in the fact that it is more internationally
minded than many other sections of the United States."
There can no longer be any doubt that a pesceful and pros-
perous world can be achieved only through international
cooperation and only upon a foundation of prosperity in
all countries.
The International Monetary Fund and the International
Bank for Reconstruction and Development are important mans
through which the goal of a peaceful and prosperous world
can be accomplished. It to indeed appropriate that New
England should take a leading part in the task of bringing
home to the American people the importance of the Fund and
the Bank to our own well-being.
Very truly yours,
(Signed) Henry Morgenthau, Jr.
Secretary of the Treasury
Mr. Albert No Creighton, Chairman,
Federal Reserve Bank of Beston,
Boston 6, Massachusette.
DFRalr 10/17/44
FEDERAL RESERVE bank
OF BOSTON
ALBERT M.CREIGHTON
CHAIRMAN
October 13, 1944
The Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington 25, D. C.
Dear Mr. Morgenthau:
The Stockholders' Meeting of our Federal
Reserve Bank in Boston was held on Tuesday, October
Tenth and was attended by nearly 400 stockholders,
bankers and distinguished guests.
If I remember correctly, I told you that I
was going to refer to the Monetary Program as agreed
to by forty-four nations at Bretton Woods. Follow-
ing your suggestion during your recent visit with
us, I am enclosing you a copy of my remarks pertain-
ing to this subject.
With best regards, I am
Think Sincerely,
Enclosure
Regraded Unclassified
Excerpt From Remarks Made
By A. M. Creighton At The
Stockholders' Meeting of
The Federal Reserve Bank of Boston
October 10, 1944
I would like to supplement what I have just said about
our New England problems and refer to the monetary plans agreed to
unanimously at Bretton Woods by the Forty-four Nations.
In New England we have much to gain from the Monetary Fund
and from the Bank for Reconstruction and Development.
We would do well in our own interests to support these pro-
posals when they come up in Congress.
The suggestion has been made, and I am told has been welcomed
by influential Europeans, that the Headquarters of these two great
financial institutions could to great advantage be located in the City
of Boston.
These institutions will engage in important research work,
and helpful collaboration could be worked out with our universities.
Boston is accessible from Europe and Canada, and is near
the great financial center of New York and would be in every respect
an ideal location.
Personally, I believe that the Bank for Reconstruction and
Development is especially important for New England Business.
We are a great machine and equipment producing industrial
area. We need export markets for our products. Reconstruction and
development loans in all parts of the world are essential for an
expanding and prosperous America.
The Bank does not interfere with private investment and wel-
60
-2-
comes private international lending outside of the auspices of the
Bank wherever and whenever loans can be placed on reasonable terms.
But the Bank will promote productive development projects throughout
the world which could not be undertaken except by the aid of the Bank.
I would like to stress the point that the Bank will to a
very limited extent, if indeed at all, make direct loans out of its
own capital funds.
What the Bank will do is to insure and guarantee foreign
loans placed in the private capital markets in the United States,
in Canada and elsewhere, where surplus funds are available.
It is exactly like the FHA loans with which we are familiar.
The borrower pays an insurance premium just as under the FHA loans.
Thus an insurance pool is created to insure the loans.
And finally, should this pool prove inadequate, the Bank
guarantees the loans.
This means in effect that each member nation guarantees
the loans up to the amount of its subscription in the Bank. And
the Bank cannot guarantee loans in excess of its subscribed capital.
Thus, the bonds must be regarded as very high grade gilt-
edge securities.
Our investors will have an opportunity to invest in a
good bond with a fair yield.
Our exporters will benefit from the export of equipment
and machinery which will follow these development loans.
The international character of the institution will help
to promote that international good-will upon which peace and security
must be built.
-3-
I also believe that it is to our interest to support the
Monetary Fund.
It will perform three functions.
First - The Monetary Fund is an institution for the col-
lection of important information and it will issue from time to time
reports which will help every exporter and importer and every banker
with international connections.
In the second place, the Monetary Fund will give us some-
thing sadly lacking after the last war. Then each country was left
to fix its own exchange rate without regard to the effect on the rest
of the world.
Through international consultation, it will help each of
the war-torn countries to find an appropriate exchange rate.
Moreover, it provides us with an institution sadly lacking
in the inter-war period, which will provide orderly adjustment of
exchange rates.
It will prevent competitive cut-throat exchange depreciation.
Stable exchange rates, with orderly adjustment when neces-
sary -- that is the goal of the Monetary Fund.
Finally, let me emphasize that this Fund in no way inter-
feres with the regular private buying and selling in the foreign
exchange markets.
It is not a competitor of private exchange dealings.
It merely supplements, when needed, the foreign exchange
resources of different countries.
It offers each country a limited line of short term credit
to help it over temporary difficulties. Each country's line of credit
Regraded Unclassified
4-
is limited to a reasonable amount and only a fraction, around 25% can
be used in any one year.
Moreover, any country which borrows from the fund must deposit
collateral for the amount borrowed, in addition to its original deposit
in the Fund. Thus the Fund is amply protected.
Each borrower must pay a rate of interest on the amount bor-
rowed -- a rate which increases the larger the borrowing and the longer
the interval of the loan. If the loan is allowed to run for an exces-
sively long period, the fund may charge any rate of interest it chooses.
We need to take a forward look with respect to the World -
situation.
We cannot afford to take an isolationist position in inter-
national economic affairs any more than we can in international political
matters. And New England bankers and business-men can lead the way.
New England can rightly take pride in the fact that it is
more internationally minded than many other sections of the United
States. Constructive leadership is more than ever necessary if we are
going to have an expanding and prosperous world trade and world wide
prosperity.
Regraded Unclassified
63
October 18, 1944.
Dear Mr. Gaertner:
I have read with a great deal of interest the
editorial in the News of September 25 under the
heading "Germany Must be Held Down."
While I have never made any public statement on
this subject and news stories undertaking to present
my views have not been entirely accurate, I do think
the frank discussion of this matter in editorial
columns has been a real contribution to the public
good.
I sincerely hope that you will continue to give
critical attention to all suggestions as to the treat-
ment to be accorded the enemy from the standpoint of
whether the proposals will contribute to lasting
peace.
I am writing this as a personal communication,
not as a "letter to the Editor.
Sincerely,
(Signed) H. Mergenthau, Jr.
Secretary of the Treasury.
Mr. Fred Gaertner
Managing Editor, Detroit News
Detroit, Michigan.
HEG/mah
Regraded Unclassified
DETRUIT ESS - September 25, 1944
Militarily, Germany
It will maintain this surveillance,
though, as always happens, it becomes
Must Be Held Down
expensive and a nuisance.
American sentiment for à soft peace
It will root out from public offices
and services, from the schools, from
with Hitler Germany has been too un-
even the least positions of influence,
fashionable to have enlisted a vocal
all who might encourage in the Ger-
following; which is not to say that none
man popular mind the illusion of a
exists. Washington reports tell of a
Germany victorious in a third war.
growing advocacy in some circles there
for tenderness toward a beaten Ger-
There is a great deal in rumor, if
many. It might almost be called a
not in indisputable fact, to suggest that
movement, though not yet in the open.
plans for that war already are afoot.
It is absurd to insist that all who
Captured officers have implied it.
argue thus are in league with Goeb-
There is this lately-captured docu-
ment, circularized in the German Offi-
bels, though their case must rest on
cers' Corps, directing it to conserve
the same thesis as the Doctor's: That
itself against the day when it will be
the Red is more a menace today than
called upon again.
ever, and that the only possible bul-
There is the now-notorious Stulp-
wark between him and the West is a
nagel memorandum in which the ex-
strong central power in Europe.
Governor of occupied Paris sets forth
baldly the basis of Germany's hope:
that its enemies in successive wars
This fear of Russia, which thrives
will have become so devitalized and
on unfamiliarity and seems to fall
dispirited that they will fall, if not in
away in all who take the trouble to
one war, in the next. Herr Goebbels
know the country and its leaders, is
himself has said as much, for all the
the greater for being nameless, al-
world to hear.
though there is simply nothing in its
There was an excuse once for not
international record to suggest that as
recognizing our foe; but not a second
time. Who will want to go to the
a neighbor and force for stability in
next generation of Americans and say,
the world, Russia is not infinitely to
"Well, kids, we were wrong again.
be preferred to the Germany we have
You'll have to go out, as your old man
known.
did, and his old man, and settle with
The Versailles peace was a soft one
these maniacs."
in the sense that it was only a fine,
which was never discharged, and
The Germans are dead wrong about
failed utterly to curb the German in-
one thing: They never have under-
stinct or damage the German capacity
stood the sources of strength in free
TO RESUME WAR, which it did at
peoples.
the earliest convenient time.
But they are dead right about an-
The new peace, if it is to show any
other: They know our weaknesses
profit from experience, will be soft
almost better than we do ourselves.
only in the direction of holding the
Any rising tide today of sentiment
rein lightly on German economy and
for a soft peace for the old offender
peaceful pursuits.
would be no surprise to them. It was
It will be hard and unyielding in
already in their book. They discuss it
withholding from German hands the
openly, as if it were our nature and
instruments for starting a third war.
something ineradicable. It would be
It will set up a surveillance over
a terrible thing to havé to tell our
every activity in Germany which, in
children, our 2-year-old boys of today
the wrong hands, might be diverted
that they were right.
to preparing for a new struggle.
Regraded Unclassified
65
October 18, 1944.
Dear Mr. Stern:
I have been looking over & number of editorials
dealing with the treatment to be accorded Germany
after the war and I was much interested in the one
in the Record of September 25, which contains this
paragraph:
"But we do hope that President
Roosevelt continues to side with those
who favor making Germany so weak indus-
trially that it never again can threaten
world peace.
I think that goes to the heart of the argument.
The question to be answered, I think, is whether we
are going to have enough gumption to use effective
economic means to protect us against another German
outbreak, whether it be led by a Kaiser, a Hitler
or some other variety of pan-German criminal maniac.
This, of course, is written for you personally
and is not intended as a "letter to the Editor."
Sincerely and with good wishes,
(Signed) H. Morgenthau, Jr.
Secretary of the Treasury.
Mr. J. David Stern
Publisher, Philadelphia Record
Philadelphia, Pennsylvania
HEG/mah
Regraded Unclassified
PHILADELPHIA RECORD - SEPTEMBER 25, 1944
Morgenthau favors removal or destruction
Germans May Turn Farmers;
of all German industry. This we think ex-
treme. The Germans must have some way
They Mustn't Be Fighters
to support themselves under the fermula of
President Roosevelt's Cabinet committee
"empty arsenals and full larders."
on German peace policy is reported divided.
Let them concentrate on consumer-goods
On one side is Secretary of the Treasury
industries not readily convertible to war.
Morgenthau, who is said to favor converting
They should be allowed to make textiles
Germany from an industrial nation into an
and dyes, but not automobiles or airplanes.
agricultural state of small farms.
The Record's position is clear. We have
On the other side are Secretary of State
long advocated declaring the German, and
Hull and Secretary of War Stimson, who
Japanese, peoples insane and therefore in-
favor a softer peace.
capable of bearing arms or of flying, or of
Whether press reports of this disagreement
manufacturing arms.
are completely accurate, we don't know.
But we do hope that President Roosevelt
In transforming German industry to a
continues to side with those who favor mak-
peacetime basis we think it would be helpful
ing Germany so weak industrially that it
for the Allies to aid in moving American-
never again can threaten world peace.
owned factories out of Germany into friendly
countries. When Hitler seized American
Some parts of Morgenthau's reported plan
property in 1941, American investments in
are so extreme they may play into the hands
commercial enterprises were estimated at
of the international sob-sisters who weep for
half a billion dollars.
the "good Germans."
Moving these factories, perhaps with Ger-
We don't believe it would be possible to
man labor, would help friendly countries
break up German land holdings into small
and prevent selfish cries for a soft peace, from
farms and expect some 50,000,000 Germans
American investors.
to join successfully in the biggest back-to-
For Germany, our policy must be preven-
farm movement in history.
tion of future wars, not revenge. It must be
There would almost certainly be millions
prophylaxis, not punishment-save for war
starving, widespread rioting and bands of
criminals. We are not so much interested in
marauders breaking across the borders into
whether all the Germans learn to farm, as in
neighboring countries. Then the sentimen-
making sure they can't learn to fight.
talists would have something to cry about.
But Secretary Morgenthau is on the right
track in tackling the question of German in-
dustry. As America has proven, ability to
make war successfully depends as much on
the might of industry and skilled Icher as on
brilliance of general staff planning.
Regraded Unclassified
67
October 18, 1944.
Dear Mr. Vogel:
As you request in your letter of October 10,
I am enclosing a brief statement which you may use
in your special edition commemorating the 26th
anniversary of the founding of the Czechoslovak
Republic.
Sincerely,
(Signed) H. Mergenthau, JI.
Secretary of the Treasury.
Mr. Richard Vogel
New Yorske Listy
435 East 86th Street
New York 28, New York
HEG/mah
Regraded Unclassified
68
The anniversary of the birth of the Czechoslovak
Republic can be commemorated this year with new mean-
ing and new hope. It seems certain that before
another year has passed the republic will have been
reborn and will have begun again, and on a surer
foundation, the task of building a still more glorious
record of free and democratic government. All
Americans rejoice that the prospect of liberation
for tortured Czechoslovakia is now so near. They
realize to how great a degree future liberty and peace
in Europe depend on a free and a strong Czechoslovakia.
Henry Morgenthau, Jr.
Regraded Unclassified
NEW-YORSKÉ LISTY
NEW YORK LISTY PUBLISHING COMPANY, Inc.
435 EAST 86th STREET (Near York Ave.), NEW YORK 28, N.Y.
ATwater 9-7320
::
::
=
Established 1879
October 10, 1944.
Hon. Henry Morgenthau Jr.,
Secretary of the Treasury,
Treasury Department
Washington, D. C.
Dear Sir:-
On October 28th 1944 the Czechoslovak Legion
of America, Inc., New York will commemorate the 26th anniversary
of the establishment of the Czechoslovak Republic and the 25th
anniversary of the Czechoslovak Legion of America, Inc., New York.
The festival will be held under the auspices
of outstanding personalities of the U.S.A. and of the Czechoslo-
vac Government.
Preparations are being made for the printing
of a Commemorative Issue of both our newspapers for that date.
In this issue will appear statements of prominent men and women
of American and Czechoslovak life; therefore we take the liberty
to request you to send us a short message which would be inclu-
ded in this periodical.
We thank you in advance, Sir, for your cooperation
in this respect and we remain,
Sincerely yours,
New Yorské Listy
New Yorksky Denník
Richard Vogel
Richard
Regraded Unclassified
70
i
25
OCT 18 1944
Mr. Robert H. Hinckley
Director, Office of Contract
Settlement
Washington, D. C.
Dear Mr. Hinckley:
This will confirm the advice, which I under-
stand has already been conveyed orally to Captain
Stewart in response to your letter of September 18,
that Mr. W. 11. Wernts will be available as a member
of the Committee on Accounting Principles which is
to be set up in your office under the chairmanship
of Captain Stewart.
Yours very truly,
(Signed) I. Morgenthau, Jr.
Secretary of the Treasury
TJL:ims
9/28/44
Regraded Unclassifi
OFFICE OF CONTRACT SETTLEMENT
WASHINGTON, D. C.
September 18, 1944
Mr. Robert E. McConnell
Office of the Secretary
Treasury Department
Washington, D. C.
Dear Mr. McConnell:
In order that the work previously carried on by
the Committee on Termination Cost Principles acting under
the Joint Contract Termination Board may be continued, I
am setting up a similar committee to act in an advisory ca-
pacity in the formulation and review of termination ac-
counting principles.
Commander Stewart, of this office, will act as
Chairman of this Committee which it is proposed shall con-
sist of experienced accountants who are thoroughly famil-
iar with the cost and other accounting problems involved
in contract termination.
I would appreciate it if you could make avail-
able as a member of the Committee, Mr. W. W. Werntz, who
served so ably on the predecessor committee.
Sincerely yours,
Robert H. Hinckley
Director
Regraded Unclassified
72
THE ECONOMIC BILL OF RIGHTS
Lunford 10/18/11 Draft.
This evening I want to talk to you about the future
which I feel is in store for the American people and to
outline to you my plans for meeting here at home the
problems of peace.
For the second time in twenty-five years America has
proved her capacity to meet the challenge of total WSF.
Twice in twenty-five years we have amased the whole world -
and ourselves - with our daring conseption of what America
could do when forced to war. We have astonished a grate-
ful world by the stupendous number of planes, tanks and
guns rolling off our assemply lines; with the bridge of
ships we have erected across the oceans; by the overwhelm-
ing force with which America has turned the scales of
battle.
Thus has America not the challenge of war - with
boldness, courage and determination. Thus has America
become the symbol - the world over - for the dynamic force
of a free people fighting for a free world.
But what of the peace-time problems here at home
which will follow the successful conclusion of this war?
Is America prepared to meet the challenge of these pesso-
time problems as it has twice net the challenge of war?
will we approach the problems of peace with the same bold-
ness of conception, the name courage and determination "
we have approached the problems of war?
73
- 2 -
Regraded Unclassified
In the answer to these questions lies the future of
America. To anyone who has faith in America the answer
is clear. The American people are prepared to meet the
problems of peace in the same inspiring way that they have
net the problems of var. The American people are resolved
that we shall insure that the youth of this nation will
never again be called upon to fight in another war. And
the American people are equally resolved that when our
boys return home from this usr, they shall COMB back to
the brightest possible, the freest possible, the finest
possible place on the face of this earth - to 8. place where
all persons, regardless of race, color, creed or place of
birth, shall live in peace, honor and dignity, free from
want and free from fear. To do otherwise would betray the
faith of every soldier, every worker, every businessman,
every farmer in this country who is doing his best for
America.
In determining the course of setion we should pursus
after the war, it is well for America to pause and take
stock of her ospacities. For America's capacities should
be the measure of America's future.
America's known capacities are not difficult to calon-
late. We are now producing goods and services to the
signatie total of (200 billion a year with 52 million
washington and 28 million soldiers. In simple language that
- that today America is producing nearly tates as
74
- 3 -
much as she had ever produced before the war. But an
enormous part of the goods and services us are producing
today does not find its way into the American home. No,
it represents the ships, the guns, the planes and tanks
we are using to fight this war.
But I know, and you know, that, if we can produce
a huge flow of ships and guns and planes and tanks, we
can also produce an abundance of houses and carg and
clothing and private education and recreation and the
other good things of life for all Americans.
And I know, and you know that when our boys return
home from the war and are again able to put their power
into the streem of peace-time production, America's
capacity to produce will be even greater than it is today.
Yes, much greater than today even if we remember that
some of our returning soldiers will prefer to resume their
education; that some older people will begin a retirement
delayed to participate in war work; that many women will
give up their jobs in favor of home-making. Making full
allowance for these groups, the fact remains that America
will have the capacity after the USP for producing houses,
cars, elothing, education, recreation and all of the other
good things of life on a scale that staggers the imagine-
tien. That is what America can and will de if we have the
courage and vision to give her the chance.
Regraded Unclassified
75
- 4 -
But to accomplish this task of harnessing our full
productive capacity to American needs, it is childish to
think, as some have recently suggested, that we can depend
upon the accumulated backleg of demand for 6 million
automobiles, 3-1/2 million vacuum cleaners and 7 million
alarm clocks! thy an America geared to that conception
of our future will find it 10 faced with millions - if not
tens of millions - of unemployed. In fact that kind of
thinking sounds to me as though our doughboys returning
from this war would have to face the prospect of peddling
slarm clocks this time instead of apples. I say to you
here and now that we cannot not our sights to a level which
we have long since passed. The same people who set their
sights too low for war are now ssking the American people
to set their sights too low for prosperity. They do not
grosp the strongth and the spirit of America.
Nor do any of us think for a minute that there is any
quack resedy or cure-all that can be automatically applied.
The sober facts are that genuine progress will be achieved
only through concrete plans and 8 real effort.
I made plain my views on this subject in Jamuary of
this year. In my message to Congress in January, I set
forth eight self-svident economic truths. I said then
and I say now that these economic truths represented a
second 8111 of Rights under which a new basis of security
and
presperity - be established for all - regardless of
Regraded Unclassified
76
- 5 -
America led the world in establishing political
democracy. It must lead the world once more in strengthening
and extending political democracy by firnly establishing
economic democracy. Let us not forget the painful lessons
of the rise of Fascian. Let no remember that political
democracy is at best insecure and unstable without economic
democracy. Passian thrives on domestic economic insecurity
as well as on lack of or divided resistance to external
aggression. Fascian is not only an enemy from without, it
is also potentially an enemy from within.
Be now must establish an Hoonomic Bill of Rights not
only out of common decemey, but also to insure the proser-
vation of OUP political freedoms. no must accord to this
Meonomic 8111 of Rights the same dignity - the same stature -
in our American tradition as that we have accorded to the
original 3111 of Rights.
Let us therefore affirm this Hoonomic Bill of Rights -
and keep affirming it - until it is as familiar and real to
no as the Constitution itself. This is the Reonemic 1112
of Rights as embedied in my message to Congress last
January: -
The right to 8 useful and remunerative job in the
industries, or shops or farms or mines of the nation;
The right to earn enough to provide adequate food and
clothing and recreation;
77
- 6 0
The right of every farmer to raise and sell his
products at a return which will give him and his family e
decent living;
The right of every businessean, large and small, to
trade in an atmosphere of freedom from unfair competition
and domination by monopolies at home or abroad;
The right of every family to & decent home:
The right to adequate medical care and the opportunity
to achieve and enjoy good health;
The right to adequate protection from the economic
fears of old age, sickness, accident and unemployment;
The right to a good education.
But the achievement of this American 8111
of Rights will not come of itself. These rights will not
come to those who merely sit and wait. They will not
come through merely pieus repetition. Our forefathers had
to struggle for our political 3111 of Rights; we will have
to struggle for our Moonomic Bill of Rights. If we are
going to make those Rights a living reality wo must map
out a vigorous and concerted course. le must set as outs
goal the implementation and fulfillment of the 8 self-
evident truths which together constitute our Heonomic
0111 of Rights.
The key to making this Economic Bill of Rights a part
of the American way of life is as self-evident as are the
rights themselves. The key is the wholehearted recogni-
them by an - people of the simple Snot that in America
Regraded Unclassified
78
- 7 -
the future of the American worker lies in the well-being
of American private enterprise; and the future of American
private enterprise lies in the well-being of the American
worker. To me, the greatest single thing that this war
has demonstrated on the home front is that when the
American worker and the American businessman and the
American farmer work together as one team, there are no
limits on what America can accomplish.
But to work together as a team, however, there must
be a common goal. In this war that goal has been the
defeat of our enemies in the shortest possible period of
time. In the peace to come the goal must be the well-
being of America - and that is synonymous with the well-
being of every American.
I want to now discuss with you my program for making
each of these economic rights a part of our way of life.
You will note this striking fact, namely, that to the
extent that private enterprise grown in strength the
Reonomic sill of lights grows in reAlity and to the
extent that the Hoonomic 3111 of Rights grows in reality
American private enterprise grows in strength. Thus, all
the neasures which are proposed in this program for the
implementation of the Noonomic Bill of Rights are at the
- time designed to make American capitalism and private
enterprise work in the same great manner in peace as it has
worked in war. All of the measures have the fundamental
Regraded Unclassified
79
- B -
purpose of increasing the demand for American goods and
services and saking it possible for American business to
offer productive jobs for all Americans who wish to work.
For there is only one way in which the people of this
country can be sure of jobs for all and that is by making
it possible for then to buy all the goods which American
business and American agriculture are able to produce. And
only If we have a high standard of living corresponding to
the enormous productive capacity of America can we be sure
of plenty of jobs, good wages, economic security and 8
fuller life for all.
when I emineisted this Beonomic 5111 of Rights last
Jamuary I said that after this war is won we must be
prepared to move forward, in the implementation of these
rights, to new goals of Imman happiness and well-being.
I asked the Congress to explore the means of implementing
these rights and stated that from time to time I would have
more to say on the subject.
Tonight, I want to discuss this Heonomic 111 of
Hights with all of you. I want you all to see how the
adoption of concrete measures to implement these rights
represents the very foundation of American prosperity
in the years to eare.
I
The first economic right is "the right to a useful
and remunerative job in the industries, OF shops, or farms
or nines of the untion".
Regraded Unclassified
80
- 9 -
To assure the full realization of this right to a
useful and remunerative job, an adequate program must
provide America with 60 million productive jobs. This
means private enterprise working at expanded capacity and
employing 15 million more workers than before the war.
with 60 million employed workers producing the goods
that our consumers and businessmen buy, we shall need new
facilities, now plants and new equipment. 20 that end we
must facilitate the establishment by private enterprise of
new industries and the expansion of old industries. with
business profits geared to jobs for all there will be an
enormous demand for machinery and equipment for old and
new industries, by firms large and small.
Now this program of peace time expansion will require
large outlays of money which should be raised through
normal investment channels. But while private capital
should finance this expansion program the Government
should recognize its responsibility for sharing part of
any special or sbnormal risk of loss that might be attached
to such financing. Therefore, I propose that these loans
be financed through the usual financial channels and that
the Government guarantee the lender against all special
and abnormal rieks. This will provide new and expanding
industry with plenty of credit at reasonable interest
rates. By this program 90 will merely be extending to
the financing of old and now business the principles
Regraded Unclassified
- 10 -
which have proved so successful in our experience with the
v Loans, T Loans and the Federal Housing Administration
loans.
A comprehensive investment program dedicated to
expending the peace time productive capacity of America
is the very epitome of the American way of raising our
standard of living. le build the plants for greater
production se that all of us may share in their greater
output. And the benefits of this plant expansion are not
confined to the increased output. In fact, these benefits
also include the wages paid to the labor employed in
building these plants, in constructing the machinery to
be used in the plants and in operating the plants after
they are erected. These payments as wages all contribute
to the nations buying power so that as a nation we will
have more money with which to buy the goods produced by
these expanded plants.
As a matter of fact a comprehensive investment program
of this character could make possible (20 billion of new
private investment each year. Why, just the job of building
these plants and the machinery for them would give America
5 million more jobs a year in expending American productive
capacity than we had before the war. And this does not
include the workers who would be needed to operate these
plants after they are built.
In a nut shell, then, If we are going to have
remmerstive jobs for all, - met have an expended
Regraded Unclassified
2
- 11 -
private industry capable of hiring millions more men. I
propose that the Government do its part in helping private
enterprise finance this expansion of our industrial plant.
It will be privately owned, privately operated and privately
financed but the Government will share with the private
investor the unusual and abnormal financial risks which
may be involved in getting started.
II
The second economic right is "the right to earn enough
to provide food and clothing and recreation".
America must remain pre-eminently the land of high
wages and efficient production. very job in America must
provide enough for a decent living.
During the war we have been compelled to hold down
wage increases that might have provoked runaway inflation.
with all the arms and war matorials we were producing,
there was only a limited amount of consumption goods
available. Increasing wages without increasing the amount
of goods available to the consumer would have been an open
invitation to inflation. By resorting to drastic price and
wage control neasures, I an proud to report that America
is succeeding in holding the line against inflation.
However, the end of the war, even the end of the
war in Europe, will change this picture. Then there will
be more goods available for America to my and it is only
good common sense to ... that the working man is paid enough
be buy these goods.
Regraded Unclassified
83
- 18 -
Therefore, I propose that the American worker's wages
should le increased as soon 68 it is possible to increase
the preduction of consumers' goods. Purther, I can say
that 80 long as I am in the white House, American labor
can be assured that there are not going to be any wage outs
that I can stop. that is even more important - I an going
to see that when the worket's hours are out back to peace
time levels his pay envelope will not be smaller. Me can
do it and I know we should do it. And I propose that
weges should be constantly increased as the productivity
of industry is increased. In an expanding American
economy there is more than enough to give business its
profits and the worker good wages. In fact - you know
and I know, that unless the worker does get his share of
America's increased production in the form of increased
wages and unless business gets its share in the form of
increased profits - neither will prosper and all will lose.
But an increase in wages is not the only benefit the
American worker should secure from increased productivity.
lie should also benefit in the form of shorter hours of
work, in the form of increased leisure and opportunities
for healthful recreation. Thus increased wages and shorter
hours 80 hand in hand in solving prosperity the American
way.
There is one further aspect of the wage-carner's
problem that I want to touch on tonight. That is his
Regraded Unclassified
- 13 -
espiration for an anniel wage or guaranteed anmel income
from his job. It is a terribly important part of any real
attempt to implement America's Scenomic Bill of Rights.
The size of the wage-carner's pay envelope is important -
vitally important to American prosperity. But we all
know that it is equally important to know how many pay
envelopes he gets during a year. I want to see him get
a guaranteed minimum annual wage and I think the time has
come for America to begin tackling this most difficult
problem.
Now this goal cannot be attained overnight. It
cannot be schieved in a manner to harm business. Nor
can it be achieved with the same speed in every business.
But no can start on the job of giving labor an annual
wage. We can do a lot if we all will only agree that it
is a problem business and labor must solve and if we all
approach the problem with a genuine desire to succeed.
And Government must do its part too. It must aid business
in stabilizing its labor needs so that the burden of an
annual wage will not be unoconomiesl. This in my opinion
is the American way to bring about the annual wage and
I have confidence in the American way of doing things.
III
The third economic right is "the right of every farmer
to raise and sell his products at a rate which will give
him and his family a decent living."
Regraded Unclassified
85
- 14 -
American farmers nov have by far the largest farm
income in history. This is their due reward for the
greatest agricultural production in history. He must
assure the farmers that there will always be a market
for all their output at good prices. Concretely I propose
to maintain an adequate floor on farm prices and thereby
assure the farcer against the dangers of falling prices
for his products. Our farm program must be one of
expension rather than curtailment. With jobs for all at
good wages the people will buy all the increased production
our farmers will want to sell.
I propose to establish a comprehensive federal crop
insurance program which will secure the farmer against the
hesards of crop failure. No must also take steps to
raise the standard of living on the farm and in the rural
areas by a complete program of rural electrification and
improvement. In this way we can bring to the rural
communities modern facilities for decent and healthful
living.
IV
The fourth economic right is "the right of every
business man large and small to trade in an atmosphere of
freedom from unfair competition and domination by nenopolies
at home and abroad."
Where this Administration is to be distinguished most
sharply from some others is in its refusal to curry
Regraded Unclassified
86
- 15 -
favor with big business or entrenched monopoly. Our
economic sill of Rights like our political Bill of Rights
is based on freedom of enterprise - freedom of
enterprise not merely and exclusively for the few, but
broadly and inclusively for the many. The political
Bill of Rights insured the destruction of special
perogatives and privileges. The economic Bill of Rights
will insure the destruction of special economic perogatives
and privileges.
No special class of business deserves to be the spoiled
darling of government. This Administration has been mindw
ful from its earliest days, and will continue to be mindful,
of the problems of small business as well as large.
Ne must break through the barriers of monopoly and
international cartels that stand in the way of a healthy
expansion of free enterprise. Against these real enemies
of free enterprise we shall continue unremitting warfare.
He must overcome the monopolistic frame of mind which
thinks of business in terms of restricted output at high
prices per unit. We must pass on to workers and consumers
the benefits of technological progress and large scale
production. Free enterprise in the American tradition can
flourish only by doing a large volume of business at a small
profit per unit.
My Administration is determined to proteet free
enterprise against monopelies and cartels through contimed
Regraded Unclassified
87
- 16 -
vigerous enforcement of the anti-trust laws. Private
enterprise yields its full advantage to the consuming
public and to other business only when it is geminely
free and competitive. Beware of that sinister enemy of
free enterprise who pays lip-service to competition but
also labels every anti-trust prosecution a "persecution".
Our economy has important new expanding sectors in
air transport, frequency modulation, television, synthetic
rubbers and fibers, plastics, and many other fields.
These new expanding areas in particular must be kept free
of the constricting hand of monopoly. There must be a
place in them - as everywhere in our economy - for enter-
prising small firms. It is from these new and small firms
that the great industries of the future will grow. No
need new industries, new firms to have industrial progress
and shall not permit them to be stifled by monopoly.
V
The fifth economic right is "the right of every family
to a decent home."
Concretely, I propose that we adopt a housing program
looking toward the construction through private enterprise
of 2 million housing units 4 year and ridding this country
of its urban and rural slums. No need to build at least
15 million new housing units if we are to eliminate all
Regraded Unclassified
88
- 17 -
our slums and sub-standard dwellings. The right to a home
is meaningless when that home is a hovel. The cannot afford
shums.
A well-housed America must have modern homes - homes
with all the latest electrical and mechánical equipment
which will eliminate the drudgery of household work. We
must be & land of homeowners, and to that end we must assure
every family an opportunity for home ownership by making
certain that there is available private credit on terms
which will reduce the down-payment and out by one-third
the monthly cost of buying homes.
New residential construction and the modernization
of America's homes alone can provide jobs for 4 million
people a year. This is 2 million more than the maximum
amount engaged in such work prior to the war.
VI
The sixth economic right is "the right to adequate
medical care and the opportunity to achieve and enjoy
good health."
As Selective Service has revealed, too large a pro-
portion of our younger non now fall below reasonable
health standards. This is a warning signal to America
with respect to the state of health of all segaents of our
pepulation. This condition calls for immediate and drastic
Regraded Unclassified
89
- 18 -
no cannot permit the health of our people to be
impaired by poverty or lack of medical and hospital
facilities. I say to you that your Federal and State
Governments have just as much responsibility for the
health of their people as they have for providing them
with education and police and fire protection. Health
and adequate medical and hospital care are not luxuries.
They are basic necessities to which all are entitled.
to must see that medical attention is available to
all the people. Adequate maternity care must be available
to every mother. But this health program must be achieved
in the American way. Every person should have the right
to go to the doctor and hospital of their own choosing.
My program calls for the Federal and State Governments to
work hand in hand in making health insurance an integral
part of our Social Security program just as old age and
unemployment benefits are today. And these health
insurance benefits must be adequate to provide private
medical and hospital care for every person in the United
States.
lie need more hospitals and dectors. I propose that
we make sure that such facilities are available and that
we build hospitals in every community, rural and urban,
that does not now have such facilities for all of its
people,
Regraded Unclassified
90
- 19 -
Hever again can we afford the waste of poor health
in America because of poverty or inadequate facilities.
And I say to you now that this program will prove in the
long run to be a saving to America.
We must not be content to provide medical attention
for people after they become sick. le must implement and
extend our knowledge of preventative medicine. To the
end that we shall be such better able to attack diseases
and to prevent diseases I propose that the Government
appropriate a substantial sum to finance medical research
in private and public institutions.
VII
The seventh economic right is "the right to adequate
protection from the economic fears of old age, sickness,
accident and unemployment."
We must assure people who are disabled and temporarily
unemployed that they will be taken care of adequately. 10
must assure them that they will not be in want because of
loss of income during this period of compulsory unemploy-
ment. He cannot neglect these groups without insurring
serious dangers to the stability of our whole economy.
But we should be wary of those who only pay Rip-
service to the principle of Social Security but have 8
serry reputation when it comes to delivering on their
premise. In If years of Republican Administration this,
wishest country in the world, fell for
Regraded Unclassified
01
08 . 9
industrial nations in the development of Social Security
legislation. Every step in the establishment of our
social security system has been fiereely resisted by the
Republican old Guard. Sven now while advocating the
extension of social security in vague, vote-ontching
terms, the Republican party evades all najor concrete
stops to expand Social Security. the Republican candidate
for the Presidency, some weeks ago, made his formal
obeisance to the need for Social Security by limiting his
remarks to a few piddling generalities.
Meanwhile, for more than a year, there has languished
in Congress a carefully-drawn, comprehensive to extend
the coverage and increase the benefits of Social Security.
I refer to the Wagner-Hurray=Dinge11 Bill, introduced into
Congress by three liberal Democrate. It gives effective
universal coverage and provides benefits for old age,
unexployment, medical care and disability. Yet no prominent
Republican - in or out of Congress - has raised his voice
in support of this mill. That in my mind is the tip-off
of what America can expect when the "chips are down."
Being introduced in warting, when we have been
concerned about restraining consumers' demand rather than
expanding 1t, the 8111 will need to
be revised to suit our postwar world.
& broader program will be needed after the ware old
should be adequate to provide all of or
Regraded Unclassified
92
- 21 -
older men and women with the means for decent living. other
present old age benefits are definitely inadequate. I
propose that we immediately establish the principle of
giving a minimum Federal old age pension of $60 per month
to every person who has reached the age of sixty. This
minimum $60 per month pension should be available to every
man and woman over the age of 60 who makes application.
If both husband and wife are over sixty, this will mean
a monthly income of $120 per month. It should be deemed
to be a right, not a charity, a right springing from the
years of service each person delivers to the sum total of
a better America.
This social security program will, of itself, by
adding to the spendable purchasing power available to the
people and by placing a floor on consumption, add from
two to three million jobs a year.
VIII
The eighth economic right is "the right to a good
education."
Be must have an educated and informed America. liven
now most of OUP rural areas and some of our urban areas
are peorly provided with schools. Our teachers are under-
paid. our schools are badly understaffed. We need more
schools and at least one-half million NOVO teachers.
through Federal and to pourer committes for the devol-
of Security controlled educutions programs, 90
Regraded Unclassified
93
- 22 -
propose to equalize and extend educational opportunities
throughout the land. We propose to provide facilities
for technical and higher education for all qualified
young men and women without regard to their financial
means. In This America, the pioneer of free education,
the right to technical and higher education should be as
universal as the right to a secondary school education.
......
This is the program that will bring to reality our
Meonamic Bill of Rights. It is a program that will
provide jobs, economic security and rising standards of
living for all Americans - regardless of race, color or
creed. Our democracy can be a living force only if it
means the good life for all the people.
The 15 million more productive jobs that this
program will bring are jobs in industry. They are jobs
based on the expended demand for the output of our economy
for consumption and investment. And this program need -
place no real burden on the Federal budget. On the contrary,
a program of this character can provide America with a
national income of (200 billion. With a national income of
this magnitude it will be possible to reduce the high war
time tax rates en personal incomes, on business profits,
and on consumption, and still collect enough tax revenues
to meet the mede of the deverment, including orderly
veldrement of the national dobt.
Regraded Unclassified
94
0
- 23 -
This, my friends, is our immediate goal, once final
victory over our enemies has been achieved.
Now there will be, I an sure, those who will say that
the goal which I have set for you is fantastic. These are
the persons of limited vision and blunted imagination.
These are the same persons who said I was dreaming when I
declared in 1940 that the American people would produce
50,000 planes in one year. In fact the American people
produced 185,000 planes in one year. These persons also
labelled
ships in one year a dream. The American
people actually produced
.
tanks was
supposedly another dream. In fact we produced
-
And these are also the same persons who scoffed at the
1dea that America could in less than 4 years build the
greatest Army, the greatest Havy and the greatest air
force in all the world. Do these Monday morning quarter-
backs have that great faith in the American people, and
in their way of life, which is required in order to
understand the meaning of America?
And yet those same great visionaries who ... but
dialy into the future have excellent hindsight. As the
great events of history march forward, while they look
back, they are at least able to recognise what has passed
this My. Only then do they shake their heads wisely and
preelain that at mat be no. They have seen it
with their - eyes. Thus, for example, they say and I
Regraded Unclassified
85
- 24 -
"of sourse, we need security regulation.
or course. we need bank-deposit insurance. or
course, we need price support for agriculture.
of course, the fareers of this country cannot be
left to the hasards of a world price while they
buy their goods on an American price. of course,
we need unemployment insurance and old age pensions
and also relief whenever there are not enough jobs.
or course, the rights of laber to organize and
bargain collectively are fundamental."
I suppose that after this program to which my
Administration is pledged his become an accepted part of
our way of life, the battle-cry of the hindsight artists
will go something 11ke this. They will say that of course
the right to a useful and remunerative job in the industries,
or shops or farms or mines of the nation is self-evidents
of course the right to earn enough to provide adequate
food and clothing and recreation is self-evident; of
course the right of every farmer to raise and sell his
products at a return which will give him and his family
a decent living is self-cvident; and of course this and
of course that. oh, I forgot - there is one more
"of course" that they will add. They will say, of
course. we could have done it better."
......
I an confident, however, that the great majority
of the American people share the same great faith in
Regraded Unclassified
96
- 25 -
America and in the American way of doing things which
I have expressed tonight. We know our way and the road
sheed is straight and broad although there are many
hills which we must climb. The program which I have set
forth is only the first milestone, for the capacity of
the American way of life in the years to come is beyond
the vision of man. The American system of free enterprise
is the best the world has ever known and through it we
can obtain, God willing, the best that this world has to
offer.
Regraded Unclassified
97
FORVICTORY
TREASURY department
BUY
UNITED
STATES
WAR
BONDS
PROCUREMENT DIVISION
AND
STAMPS
WASHINGTON 25
OFFICE OF THE DIRECTOR
October 18, 1944
SECRET
MEMORANDUM TO THE SECRETARY:
There is submitted herewith the weekly report of
Lend-Lease purchases.
A réquisition has been received for 55,000,000
feet of Film for aerial photography for use by the army
in U.S.S.R.
Clifton E. Mack
Director of Procurement
Regraded Unclassified
98
SECRET
LEND-LEASE
TREASURY DEPARTMENT, PROCUREMENT DIVISION
STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS
AS OF OCTOBER 11, 1944
(In Millions of Dollars)
Administrative
Miscellaneous &
Total
U.K.
Russia
China
Expenses
Undistributed
Allocations
$5574.6
$2627.1
$2257.3
$133.9
$15.9
$540.4
(5573.1)
(2627.1)
(2257.3)
(133.9)
(15.9)
(538.9)
Requisitions
$ 226.2
$ 27.6
$ 73.0
$ 1.8
-
$123.8
in Purchase
( 189.5)
( 27.0)
( 54.7)
( 1.8)
-
(106.0)
Requisitions not
$ 108.5
$ 33.3
$ 63.7
$ .1
-
$ 11.4
Cleared by W.P.B.
( 116.6)
( 28.6)
( 72.9)
( .1)
-
( 15.0)
Obligations
$4142.7
$2013.5
$1736.3
$ 62.7
$14.4
$315.8
(Purchases)
(4105.4)
(2009.4)
(1707.9)
( 62.6)
(14.3)
(311.2)
Deliveries to Foreign
$2470.1
$1490.9
$ 902.5
$ 24.7
-
$ 52.0
Governments at U. S.
(2443.5)
(1482.6)
( 885.6)
( 24.6)
-
( 50.7)
Ports*
*Deliveries to foreign governments at U. S. Ports do not include the tonnage that is
either in storage, "in-transit" storage, or in the port area for which actual receipts
have not been received from the foreign governments.
Note: Figures in parentheses are those shown on report of October 4, 1944.
SECRET
Regraded Unclassified
99
VICTORY
BUY
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
STATES
WAR
BONDS
WAR REFUGEE BOARD
-
STAMPS
WASHINGTON 25, D.C.
M
OFFICE OF THE
EXECUTIVE DIRECTOR
OCT 18 1944
My dear Mr. Secretary:
I am pleased to send you herewith a copy
of the report of the War Refugee Board for the week
of October 2 to October 7, 1944.
Sincerely yours,
W. Pehle
Executive Director
The Honorable,
The Secretary of the Treasury.
Enclosure.
Regraded Unclassified
100
Report of the War Refugee Board
for the Week of October 2 to 7, 1944
SITUATION IN HUNGARY
In connection with the reported plan of the Hungarian
Government to transfer Jews from Budapest to provincial
work camps, we requested Board Representative McClelland
to seek the cooperation of the Swiss Foreign Office in
conveying to appropriate Hungarian authorities a message to
the effect that the United States Government, in view of the
fate of Jews hitherto removed from other cities to similar
camps and in view of the approach of winter, has good reason
to regard such a move as a. further measure of mass extermina-
tion, recognizing that mass extermination may be accomplished
either by the methods employed at camps of final destination
in Poland or by subjecting large numbers of people to under-
nourishment, hard physical labor, and unhygienic living
conditions in improvised camps. The message points out that
for these reasons the Government of the United States con-
siders it appropriate to remind Hungarian authorities of
its determination, as expressed by the President in his
statement of March 24 and publicly reaffirmed by the Senate
Foreign Relations Committee on May 31 and the House of
Representatives Foreign Affairs Committee on June 28, that
"none who participate in these acts of savagery shall go
unpunished, and that "all who share the guilt shall share
the punishment. Il The message indicates that allowance. is
made for the possibility that the present plan is inspired
by genuinely humanitarian motives, and to the extent that
that is the case, the United States Government will recognize
such claims. Should the removal of Jews from Budapest to
provincial camps nevertheless prove to be but a prelude to
their further removal to extermination centers or otherwise
result in their deaths, Hungarian authorities are fully
apprised of the attitude of the people and Government of
the United States. McClelland was further requested to
employ such unofficial channels as may be available to him
for transmission of this message, as were also Representative
Dexter in Lisbon and Representative Ackermann in Italy.
At Representative McClelland's request, we cabled him all
available details appropriate for use by the Swiss in trans-
mitting to the Hungarians our proposed message concerning
reports of active Hungarian participation in the deportations
of Jews from Hungary.
Regraded Unclassified
101
- 2 -
Ambassador Norweb advised us that the Venezuelan Minister
in Lisbon has confirmed receipt of authorization from Caracas
to visa the passports of Jewish refugees, particularly
children, traveling to the American continent, whether or
not such persons are proceeding to Venezuelan territory.
However, the authorization stipulates that each case must
be presented to the Foreign Office in Caracas, and the
delay consequent in this requirement renders questionable,
in Ambassador Norweb's opinion, the value of an approach to
the Portuguese authorities at this time in accordance with
our request that efforts be made to use the action of the
Venezuelan Government to influence the Portuguese to grant
large numbers of transit visas to Jews in Hungary and other
German-controlled territory.
SITUATION IN POLAND AND THE BALTIC STATES
We advised our representative in London that the proposal
for bombimg extermination centers in Poland has again been
presented to the War Department for its consideration.
Minister Johnson advised us that, while all available
channels will be utilized to effect any practicable arrange-
ments to forestall further massacres in East Prussia and
Poland, the prospects for measurable achievements in this
direction are almost wholly unpromising. Usable contacts
in these places are unable to exert any influence upon the
stringently exercised German military control over matters
of this nature, and threats of reprisals seem to be meaning-
less to the group of Germans concerned.
The component hazards in steps to save these prospective
Nazi victims are vividly illustrated in the rescue work
conducted in Lithuania from Stockholm. These operations
recently became so dangerous and communications so uncertain
that the cost in lives lost exceeded the number of persons
successfully escaping, and necessitated the termination of
such operations. Similar operations in Estonia and Latvia
have also been discontinued, partly because of the military
situation in that region. Lithuanian refugees reaching
Sweden through these operations reported that the Jews in
Lithuania are too terrified to move from their present
hideouts, apparently fearing that rescue schemes are a
German trap to lure them out of hiding, or feeling that it
1s useless to hope to escape without being discovered by
the Gestapo and shot, or that the escape route is fraught
with greater dangers than they are threatened with in
hiding. A rescued Lithuanian Catholic priest stated that
large numbers of Jews were able to reach Soviet-occupied
Lithuanian territory where they are reportedly well treated.
Regraded Unclassified
102
- 3 -
Others, in some cases entire families, are being hidden by
Lithuanian farmers, and Catholic priests were said to have
provided many Jews with false birth certificates. As of
July 1 of this year, according to this informant, there
were not more than 500 Jews in Krotingen, and he did not
believe there are more there now unless there has been a
heavy demand for conscript labor in that area. Minister
Johnson also reported that large numbers of non-Jewish
people of all political followings in Baltic coastal areas
are making panic-stricken efforts to escape, and in one
instance scores of people swimming around in the sea trying
to climb abroad almost capsized a rescue vessel.
DESIGNATION OF SPECIAL REPRESENTATIVE
Mr. James H. Mann has been appointed as Special Representative
of the War Refugee Board in England, with the designation
by the Department of State as Special Attache to the Embassy
on war refugee matters.
UNITED STATES VISAS FOR PERSONS IN ENEMY TERRITORY
In response to Ambassador Norweb's advice of the request of
the Portuguese Government for written guarantees of the
commitments made by this Government in connection with the
visa programs formulated by the Board to benefit persons in
enemy territory, we pointed out that this Government has
guaranteed that it will arrange for the maintenance in
Portugal and the removal to the United States or to other
areas outside Portugal of all refugees who are admitted to
Portugal in accordance with the terms of our proposals and
reiterated the firm intention of this Government to fulfill
the commitments so made by it. In connection with Ambassador
Norweb's suggestion for the use of Camp Fedhala for those
refugees who do not receive visas, we advised him that,
while it is neither possible nor desirable to determine
exactly where they will be taken until the number of such
refugees and other facts are known, it may be assumed that
all available havens, including Fedhala, will be utilized
to carry out this Government's undertakings in this respect.
FOOD PARCELS PROGRAM
Minister Harrison recently informed us that approximately
260,000 food parcels originally sent by relief organizations
in French North Africa for French prisoners of war from
North Africa in prison camps in Germany and German-occupied
France had been stored in Switzerland for many months.
Since delivery cannot now be feasibly made to some of the
prisoners for whom these parcels were intended, and in view
Regraded Unclassified
103
- 4.
of the fact that some time will elapse before the 285,000
parcels being prepared for the Board's program can be expected
to reach camps in Germany, Minister Harrison joined in the
recommendation of the International Red Cross that 40,000
of the stored parcels be used for French political internees
in Germany under the parcel program for this category of
Nazi victims. Because the original shipment of the parcels
to Switzerland was made under an agreement with the blockade
authorities specifying delivery to prisoners of war, special
permission was required for diverting part of the shipment
to a different category of beneficiaries. The matter was
referred to London with 8 recommendation for favorable
action, and Ambassador Winant has now advised the Board and
our Legation in Bern that the Ministry of Economic Warfare
has concurred in the proposal.
Representative McClelland advised us that because of
difficulties in reshipping the initial 15,000 parcels from
Gothenburg, the International Red Cross requested that
consideration be given to shipping the remaining 285,000
parcels to Marseilles instead of to Gothenburg, and that
the matter be discussed with the American Red Cross. He
also reported that an increasingly immediate need for these
parcels for Jewish deportees in camps such as Bergen-Belsen
is developing, since possibilities for Intercross purchases
in Europe of foodstuffs suitable for parcels are now virtually
non-existent.
SITUATION IN BULGARIA
Our representative in Ankara forwarded to us information
received from reliable sources in Sofia concerning efforts
being made by apparently irresponsible individuals represent-
1ng private organizations to stimulate emigration of Jews
from Bulgaria to Palestine, with unauthorized claims being
made that such emigration is a part of the War Refugee
Board's rescue program, in spite of the discontinuance of
anti-Jewish measures in Bulgaria. It was also reported that
these individuals have approached Bulgarian officials with
a request for the release of Jewish men of military age from
service with the Bulgarian armed forces in order that they
may proceed to Palestine; this request was refused by
Bulgarian authorities.
We immediately cabled Representative Hirschmann that since
matters of this nature are clearly outside the Board's
jurisdiction, it is the Board's policy neither to encourage
nor discourage emigration activities. We requested him to
make clear to all interested parties the Board's position
Regraded Unclassified
104
- 5 -
that unless emigration from Bulgaria is essential for the
rescue of victims of enemy oppression who are still in enemy
territory, it is not within the Board's functions and the
Board should not in any way be associated with projects
for such emigration.
EVACUATIONS FROM NORWAY TO SWEDEN
Minister Johnson advised us of information given to an agent
of the British Secret Service in Stockholm handling matters
in connection with Norway by the new director of the Norwegian
Legation's "Sambandakontoret" indicating that the Swedish
Government will not permit "Quisling" refugees to enter Sweden
from Norway after October 1 and that two new refugee reception
Swedish frontier. A committee made up of the "Sambandakontoret"
camps will be installed by the Swedes near the Norwegian-
director and two other members of the Norwegian Legation will
review the cases of all refugees found by preliminary investiga-
tion to be of questionable character in order to determine what
disposition shall be made of them. The British agent's in-
formant estimated that 3,000 young men had gone into hiding
to evade compulsory labor conscription in Norway. Of this
number, about 1,200 were said to have entered Sweden, and a
certain number of those remaining in Norway were said to have
found it possible to obtain work on farms. It wa.s indicated,
however, that 2. considerable proportion of these refugees
are known to be ranging in a specified region where they have
an independently operating organization to raid towns for
food and money.
WAR CRIMES
Board Representative Mann advised us that in a conversation
with the American member of the War Crimes Commission he
learned that the latter has received no instructions to seek
to have the Commission treat as war crimes criminal acts
committed by an Axis state against its own nationals or
against nationals of another Axis state. It was reported
that another member of the Commission recently expressed
the opinion that such crimes are war crimes and should be
so treated by the Commission. In the belief that the
Commission would take the view that such crimes are within
its jurisdiction, Representative Mann urged that efforts
be made to have the American member of the Commission
appropriately instructed on this point without delay.
INTERGOVERNMENTAL COMMITTEE
The Unanimous approval by the Intergovernmental Committee
of an increased estimate of L2,000,000 for operational
expensesfor 1945 was reported by Ambassador Winant, who
Regraded Unclassified
105
- 6 -
indicated that the increase over the 1944 operations budget
appears justified in the light of the anticipated expansion
of the Committee's activities as the area of liberated
territory increases. He recommended that the estimate be
approved and underwritten by the United States Government
to the extent of L1,000,000. In accordance with the inter-
governmental scale, the United States' share of the estimated
administrative expenses for 1945 totaling L14,400 is L1,944.
RECOGNITION OF LATIN AMERICAN PASSPORTS
Our Embassy in Asuncion advised us that it had received a
note from the Paraguayan Ministry of Foreign Relations
stating that, since the matter of persons In concentration
camps holding Paraguayan passports about to expire is
related to exchange proposals, the United States Embassy
in Madrid may advise the Spanish Government that the latter
is authorized to issue through its Embassy in Berlin new
passports to replace. those about to expire which are held
by persons to whom Paraguayan protection has been extended,
especially those who are inmates at the Bergen-Belsen camp.
Although our Embassy in Asuncion reported some time ago
that the Paraguayan Government had requested the Spanish
Government to take steps in its name to obtain permission
for International Red Cross representatives to visit concen-
tration camps in German-controlled territory where persons
claiming Paraguayan nationality are held, a late cable from
Ambassador Hayes in Madrid indicates that the Spanish Foreign
Office has as yet received no representations to this effect
from the Paraguayan Government.
Representative McClelland informed us of a report from the
Swiss Legation in Berlin to the effect that the German Foreign
Office spokesman who gave assurances on May 11 with respect
to internees at Vittel holding Latin American documents
declared that deportations of the individuals involved were
doubtless due to action taken by subordinate officials on
their own initiative. A representative of the German security
office sent by the Foreign Office spokesman to Bergen-Belsen
ascertained that the Jews in question had never reached that
camp, and another such representative instructed to inquire
at the German Embassy in Paris concerning the fate of these
deportees was unable to conduct an effective investigation
because of recent developments in France. He W8.8 able to
establish, however, that all of the Jews deported from
Vittel had been taken either to Compiegne or Drancy, and on
the basis of information obtained from the Gestapo, he is
convinced that the Jews in question never left France. The
Regraded Unclassified
105
- 7 -
Foreign Office spokesman accordingly expressed the belief
that these persons were liberated by the Allies simultaneously
with other detainees at Compiegne and Drancy, and the Swiss
have inquired as to the possibility of obtaining through
Allied authorities in France information concerning the
whereabouts or fate of the Vittel deportees. Minister Harrison
suggested that information concerning the identity of persons
liberated from camps in France, including individuals claim-
1ng Latin American nationality, might also be sought from
that source. Prior to receipt of this message, 8. cable was
sent to London requesting our Embassy there to endeavor to
secure from Súpreme Headquarters of the Allied Expeditionary
Forces a complete list of persons claiming nationality of
the United States or any other American Republic found in
internment camps at Drancy, Compiegne, Vittel, and Clermont,
together with other available data such 8.8 places and dates
of birth and addresses to which such persons intended to go
upon their departure from the camps.
W. Pehle
Executive Director
Unclassif
107
CABLE TO AMERICAN MISSION, PARIS, FROM WAR REFUGEE BOARD.
Please deliver the following message to Dr. E. Minkovsky, 130 Boulevard
Montparnasse, Paris, from Dr. Brutzkus and Dr. Wulman of the American Committ-
ee of OSE:
QUOTE HAPPY TO LEARN YOU ARE WELL AND IN CHARGE OSE WORK FRANCE.
PLEASE INFORM US EXTENT PRESENT NEED AMONG REMAINING JEWISH
POPULATION WHAT ACTIVITIES ARE PLANNED BY YOU AND WHAT FUNDS ARE
IMMEDIATELY REQUIRED. THIS INFORMATION ESSENTIAL ESPECIALLY IN
VIEW NEGOTIATIONS WITH JOINT REPRESENTATIVE DR. SCHWARTZ WHO
ARRIVED HERE FOR CONFERENCES ON RELIEF PLANS. PLEASE INFORM
ALSO WHO OF COMMITTEE AND STAFF MEMBERS REMAINED AND WHO WERE
DEPORTED OR MISSING. KEEP UP REGULAR CONTACT ALLIED AND PRIVATE
RELIEF AGENCIES FOR PURPOSES COOPERATION. OUR ADDRESS OSE 24 WEST 40TH
STREET, NEW YORK. ADDRESS BRITISH OSE 109 STAMFORD HILL, LONDON N. 16
UNQUOTE
10:30 a.m.
October 18, 1944
Regraded Unclassified
108
0
PARAPHRASE (F TELEGRAM RECEIVED
FROM:
American Political Adviser, Caserta
TO:
Secretary of State, Washington
DATED:
October 18, 1944
NUMBER:
81
CONFIDENTIAL
MOST IMMEDIATE
It is assumed that OSS will have advised Department in
Washington that a report has been received by Dr. Alexander Safran, Grand
Rabbi of Rumania, which indicates that the Legionnaires now occupy Budapest
and the liquidation at once of all Jews from Budapest is very much feared.
This report is reliable, it is believed. It is Dr. Safran's desire to ask
the President to make a statement at once, warning that action will be
taken to deal with any individuals involved in any killings.
The statement that the broadcast of a warning to all
Nazis in Hungary that drastic punishment will be meted out to any of them
involved with killings, (together with their families), by the highest Allied
leaders is the sole hope remaining for Jews in Hungary was also made by the
head of the Rumanian Jewish community.
KIRK
DCR:GPW
10-19-44
Regraded Unclassified
109
0
CORRECTION of
PARAPHRASE OF TELEGRAM RECEIVED
FROM $
American Political Adviser, Caserte
TO #
Secretary of State, Washington
DATED I
October 18, 1944
NUMBER:
817
CONFIDENTIAL
This message was distributed Ostober 19 as No.
81. The correct number of this cable is 817. Please change your
records accordingly.
0
DCR:GPW
10-21-44
R.O.
Regraded Unclassified
110
CABLE TO AMERICAN CONSULATE GENERAL, JERUSALEM, PALESTINE
The War Refugee Board requests that you deliver the following message
to Itschak Gruenbaum, Jewish Agency, Jerusalem from Dr. Kubowitzki,
World Jewish Congress, New York:
QUOTE Conferred again matter death camps with Soviet
Embassy which promised favorable action. Concerning Anglo
American action War Department here informed fully General
Wilson Allied Mediterransan commander and we urged our London
friends take up matter British War Office. Informed today by
Masaryk that he also approached Allied Governments but dif-
ficulties are considerable Understand you informed of new
warning issued United States State Department. UNQUOTE
2:00 p.m.
October 18, 1944
Regraded Unclassified
111
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, Madrid
TO:
Secretary of State, Washington
DATED: October 18, 1944
NUMBER: 3488
SECRET
This Embassy has expressed to the Foreign.Office the hope that the
Government of Spain will redouble its efforts, through its Minister in
Budapest, to safeguard the lives of Jews in Hungary from persecution
by the Mazis and to prevent the sacrifice of inmocent lives pending
final liberation of the country, this in view of the renewed threat
to lives of Jews in Hungary which would seem to be caused by develop-
ments in that country during the past few days. The British Embassy
is making parallel representations at the suggestion of this Embassy.
An official of the Foreign Office states that instructions have
been sent to Budapest already with regard to protection by the Spanish
Legation of the 700 Jews who were mentioned is despatch No. 2374 dated
October 3, from Tangier.
The above message, as No. 142, has been repeated to Tangier.
HAYES
DCR:LCW:EFR 10/19/44
Regraded Unclassified
112
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
Amembassy. Madrid
TO:
Secretary of State, Washington
RATED:
October 18, 1944
NUMBER: 3489
SECRET
Refer to Mubacsy's despatch 3208. October 8. 1944
Presentation of the note regarding the subject
referred to in Department's 2781, dated 13th October,
was made the 9th of October at the Foreign Office.
HAYES
10-20-44
DCR:EMS
Regraded Unclassified
113
CABLE TO MINISTER JOHNSON, STOCKHOLM, FOR OLSEN FROM WAR REFUGEE BOARD.
Please deliver the following message to Laura Margolis, Hotel Continental,
Stockholm, from M. A. Leavitt of the American Jewish Joint Distribution Committee:
QUOTE PLEASE EXPLORE POSSIBILITIES SENDING FROM STOCKHOLM FOOD PARCELS
TO CAMPS SUCH AS THERESIENSTADT, BERGENBELSEN, BIRKENEAU ETC. SHOULD
SUCH POSSIBILITIES EXIST LISBON OFFICE HAS LISTS OF INTERNEES VARIOUS
CAMPS TO WHOM PARCELS CAN BE INDIVIDUALLY ADDRESSED UNQUOTE
THIS IS WRB CABLE TO STOCKHOLM NO. 115.
0
5:15 p.m.
October 18, 1944
Regraded Unclassified
114
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMLEGATION, Stockholm
TO:
Secretary of State, Washington
DATED:
October 18, 1944
NUMBER:
4231
CONFIDENTIAL
US URGENT
Our press telegram 4219, dated the 17th embodied the translation
of an article in the October 17 NY DAG, a newspaper of the Swedish Communist
movement. This article attacked the Swedish Government and involved the
Legation.
The baselessness of the charges will be noted by the Department.
It appears that the paper is trying to provoke me into making a statement,
which action appears unnecessary to me, and unless there should be addi-
tional developments which would appear to make it advisable to reverse my
decision, I propose to make no reply. In this Legation there is no
employee who was or could have been an Estonian Government member. A
daughter of Laretei, who was formerly Estonian Minister to Sweden is
a telephone operator here. It is believed that at present one of the
Estonians who made up the September 20 government referred to in article
three is in Sweden, but I am advised that since last June none of my
staff members has been in touch with any of them even personally.
Estonian evacuation to Sweden has involved several organizations
and has been on a considerable scale. The role which War Refugee Board
representative here played in rescuing victims of Nazi oppression from
Baltic countries was on an entirely nonpolitical basis and was quantita-
tively smaller by comparison. In rescue operations of the representative
of WRB, which are designed to facilitate the rescue of victims of Nazi op-
pression, the refugees' attitude toward the USSR has not even been considered.
In separate press telegram Legation is reporting a long article
in DAGSPOSTEN, a Nazi newspaper of this mornings date in which the NY DAG
article is quoted.
From Estonian source Legation was already in receipt of report
that Swedish officials recurrently being urged by Swedish Legation at
Stockholm to (1) prevent Baltic leaders domiciled in Sweden from contacting
Baltic refugee camps in Sweden and (2) to secure recognition of Soviet citizen-
ship or at least stateless state of Baltic refugees by Swedish Government.
0
Regraded Unclassified
115
-2-
Possibly the present article is part of this campaign; & warning against com-
plicity in Baltic politics may be its purpose. From our viewpoint it is a
provocative lie in any case.
JOHNSON
10-26-44
DCR:EMS
Regraded Unclassified
116
HM-665
PLAIN
Stockholm via London
Dated October 18, 1944
Rec'd. 11:14 a.m., 19th
Secretary of State
Washington
4235, eighteanth
Swedish politics today's Nazi DAGSPOSTEN is
only paper mentioning Communist NYDAGS article
yesterday concerning interalia American role in
Baltic refugee developments, seê our 4219. Article
headlined "NYDAG demands lives of 30,000 Balts"
and subheadings are "Moscow organ attacks Government
and American Legation" and "Baltic refugees are war
criminals! sensational reproof of American Legation".
DAGSPOSTEN writes Bolshevism's and Cheka's threat
drove these people from their national home and
subjected them terrible hardships. Swedish Moscow
organs violent attack on Sweden's care these refugees
obviously inspired from higher up. NYDAG openly
admits Balts have fled from Germans thereby indirectly
conceding twas fear of Bolsheviks which caused flight.
What particularly irritated NYDAG - is what irritates
papers foreign principal - is fact considerable numbers
Baltic intelligentsia including politicians intellect-
aals industrialists obtained Swedish asylum. NYDAG'S
wrath understandable. Cheka's presumptive victims
escaped and NYDAG threatens Sweden with Moscow's
wrath because this allowed occur. Not leastly
sensational in NYDAG'S inspired article is tone
used towards American Legation. Paper accuses
Legation of having participated in particularly
effective manner in Baltic national opposition's
activity and in connection organization Balts flight
from Bolsheviks. NYDAG reports one Minister or
recently proclaimed Estonian National Government
is Legation employee and Baltic emigration financed
with 900,000 kroner from Legation. This information
which must presuppose NYDAG'S been apprised of inside
goings on at American Legation via special channels
to another Legation isn't exactly unsensational,
Moscow organ,
Regraded Unclassified
117
-2- #4235, eighteenth, from Stockholm via London
Moscow organ, moreover, drders Minister Johnson to
answer serious charges made while paper simultaneously
has effrontery maintain that from Swedish viewpoint
it is plain these machinations must be condemned.
This delicate affairs further development awaited
with interest.
JOHNSON
BB
Miss Chauncey (for the Sec'y) Abrahamson, Akzin, Cohn, Drury, DuBois,
Friedman, Gaston, Hodel, Lesser, Marks, Mannon, McCormack, Pehle, Files
Regraded Unclassified
118
FL-692
PLAIN
Stockholm via London
Dated October 18, 1944
Rec'd 12:43 p.m., 19th
Secretary of State,
Washington.
4236, Eighteenth.
Swedish politics. AFTONTIDNINGEN discussing recent desertions from
German Legation writes no significant additional desertions presently
expectable. Gestapo watches personnel carefully and latter now largely
composed very loyal. Nazis who'll stick to bitter end. Party discipline
within Legation now stronger than when Mied was Minister. Minister
Thomsen outwardly appears very conciliatory amiable type making favorable
impression in wide circles. Actually he's very ardent Nazi upon whom
Ribbentrop can completely rely. Initiated circles maintain 'twas consistent
policy for Thomsen replace former Landescruppenleiter Stongel leader
German Nazi party Sweden with Legation Counselor Gossmann. As Legation
Counselor Gossmann enjoys diplomatic status unpossessed by Stengel. As
party leader Sweden Stengel was superior party member Thomsen whereas
Gossmann as German Legation member is subordinate to Thomson. It's
public secret German Legation with associated organizations has staff
between 230 240. Person employed one section often ignorant who works
in others but everybody knows Gostapo everywhere though fow know how
Gestapo works who belongs. Everybody taken extreme precautions and
distrusts others. Local Gestapo expanding into numerous branches and
many Swedes consciously or unconsciously work for it. Generally Gorman
Logation's anxious behave correctly and compromising connections are
handled by subsidiary organizations. Persons familiar with Logation
disbelieve rumors that prominent staff members about sever rolations.
Press Attachos Doctor Hopp and Paul Grassmann sometimes montioned this
connection. Former has American wife but considered faithful Ribbentrop
follower. Grassmann longtimo resident Swodon and employed German Loga-
tion prior 1933 and handles office irrespective government and
ministorial changos. It's noteworthy with exception Miss Schacht, 800
our 4140, all rocont Legation dosertions occurred only after persons
in quostion summoned Borlin and refused follow instructions. Vonloviagins
S00 our 4159 were proviously considered Gostapo agents and distrusted.
Mrs. Vonloviagin allogodly reported her husband to Gestapo but when
Vonloviagin summonod Borlin both refused go.
DAGENS roports internment camp for Finnish army dosortors being
ostablished Socrby outsido Umeaa with accommodations for 400, 'Twas
first assumed camp intended particularly for Finnish Quislings but
apparontly it expocts hoterogoneous clientelo. Alions commission howover
Regraded Unclassified
119
is considering need for one or more camps for Finnish Quislings exclusive
use. Since these refugees expected remain Sweden long time they'll be
given employment therefore location such being discussed with Labour
Commission. Press notes Oernulf Tigerstedt see our 4217 has contributed
article latest issue TIDSREVYN (formerly TYSKA ROESTER i. e. German voices)
propaganda magazine published by German Legation. Articles entitled
preparations for third world war. When applying for Swedish residence
permit Tigerstedt alleged he'd abandoned propaganda work and would
henceforth write only novels. MORGONTIDNINGEN writes Tigerstedt's pro-
paganda wasn't limited to serving Finland and for many years has primar-
ily served Nazi Germany. One still remembers horrible article concerning
Germstaged findings Katyn which he succeeded having published in SVENSKA.
In latest TIDSREVYN he attacks Swedish press for its attitude towards
Finland's war on Germany's side. Tigerstedt finds new conditions Finland
unsafe and uncomfortable. Same true concerning growing humber Norwegian
Quislings now seeking refuge Sweden. All Tigerstedt can expect is Swedish
authorities accord him same treatment these other gentlemen. 'Twould be
unpleasant if Sweden gradually becomes filled with fleeing Nazis who'll
eagerly promise keep politically quiet if only granted residence pormits
allowing them move about freely in our humane democratic society.
DAGENS apparently replying to TIDNINGENS protest against publishing
names Finnish visitors Sweden see our 4176 writes in present situation
Sweden has justification for drawing distinctions between her guests.
That's why DAGENS has taken liberty publishing names Finnish travellor--
diplomats politicians wartimo loaders and notorious Anti-Swode--in full
realization they'd be discomfited by publicity. Swedon ought be refuge
for tortured innocerit people but shouldn't become sort of Riviera for
nervous gentlemen who after their political speculations fail become
uncomfortable and desiro climate change. It's preferable lattor group
stay away and increased publicity may contribute to discouraging them.
DAGENS finds it utterly tactless that Finnish student corps sent notor-
ious anti-Swede Kallia to represent them at rocont Lund University
festival.
Hungarian Minister Denmark Joseph Vonkristoffy arrived Stockholm
yesterday with wife and children and remaining for present. He refuses
recognize new regime but remains loyal to Horty. Other Copenhagen Le-
gation mombers arrived Malmoo, Vonkristoffy appointed Ministor Copon-
hagon by Kallay rogime but assumed duties after Sztojay gainod power.
TIDNINGEN reports Hungarian Chargo Stockholm Von Parcher 800 our 4217
still considers himself lawful Hungarian Governmont's representative
and refuses surrender Logation premises to new regime's reprosentatives.
Swedish Legation Budapest finds itsclf in strange position owing latost
coup, De jure recognition of Szalasy isn't likoly but as events apparently
moving rapidly in Hungary problem may novor bocome scriously acuto.
- 2 -
Regraded Unclassified
120
SVENSKA writes now Hungarian Intorior Ministor's statement all
foreign protective passports for Hungarian Jows will bo nullified and
continued intorforonce in Hungary's internal affairs won't bo tolorated
obviously rofors to lottors of protoction received by cortain Hungarian
Jows as rosult King Gustaf's appoal to Horty. DAGENS learns from privato
sources 12,000 Hungarian Jows thus far applied for protective passports
but Hungarian authorities expressed dosiro number protoctive passports
issued by Swodish Logation Budapost bo limitod to 4,000. Whon latost
coup mado it's bolioved betwoen 3,000 4,000 Jows hold such passports.
Holdors had Swodish cultural oconomic family or othor connoctions.
Passport entitled bearer loavo Hungary whon opportunity arose but this
provod possible for only six Argontino citizons and handful Hungarians.
TIDNINGEN carries intorview with UNRRA reprosontative Novillo
Goodman who's just arrived Swoden and had conference yesterday with Birgor
Ekoborg chairman Swodish Committoo for Postwar Rolief. Goodnan statos
Swoden may play largo rolo in postwar roliof work. Unitod Nations
particularly gratoful for Swodish holp as Swodon has cortain resources
other countrios lack. It's hopod mutual contact will be maintained so
Swedon's and UNRRA's rolief actions may effectively supploment each
other. Goodman will romain for about ton days and study Swodon's mothods
for handling refugoos.
Spocial committoo formod Stockholm for roliof for Italian children
invitos Italy's Swodish friends subscribo funds.
Finnish Government commission for Swodish Finnish trado returned
Holsinki yesterday to submit to Finnish Government results of nogotiations
recontly conducted Stockholm. Swedish Foreign Office announced last
night cortain Swedish shipmonts to Finland rendored possible by Soviot
Finnish armistice had beon promised carlior. Shipmonts concern
principally food but other Finnish desidorata been considered during
nogotiations just completed.
AFTONTIDNINGENS London correspondont reports flying fortrosses
which were converted into passonger planos by Aoro Transport soo our
3293 have now bogun flying Swodon Britain routo. First fortross landed
Scotland wook ago and othors followed. MANCHESTER GUARDIAN planos will
soon onter servico botwoon Swedon Russian and Swodon USA. AFTONTIDNINGEN
confirms report fortrossos now flying Scotland routo and adds traffic
unenjoys Gorman safoconduct whoreforo planos unlightod. Scottish torminus
moved from Dyco noar Abordoon to Prostwick whore airfiold botter oquippod
for heavy fortrosses. (No other Stockholn paper carries report or
quotos AFTONTIDNINGEN.)
Gorman fightor aircraft forcelanded Oscarshamn yesterday. Plano
badly damaged but two crew members unhurt.
- 3 -
Regraded Unclassified
121
Swodish trawler attacked by two unidontified foroign planos Monday
afternoon whilo fishing in Skagorrak 18 milos north Hirthshals Donmark.
Two crow mombors wounded and vossol badly damagod but succooded roaching
Gootoborg yestorday.
AFTONBLADET writos Swodish dologation to intornational commorcial
conforence which doparted for Amorica October olovonth satisfactorily ropre-
sonts Swodish industry commerce shipping and aviation but perhaps one
would proferred woightior namos. Loading Swodish industrial lights
howover aro greatly nooded Swedon now and couldn't spare soveral months.
It's extremoly important that Swedon's boon ablo sond such full dologation
to such momontous conforonce. Experiences gainod by dologatos will be
highly important connoction formulation Swodish program for mooting
postwar crisis and its equally important that Swodish viowpoints should
bo expressed whon highly significant docisions in international oconomic
rolations boing made.
WINANT
CSB
CC: Miss Chauncey (For the Soc'y.), Abrahamson, Akzin, Cohn,
Drury, DuBois, Friedman, Gaston, Hodol, Losser, Mannon,
Marks, McCormack, Pohlo
- 4 -
Regraded Unclassified
122
CABLE TO MINISTER HARRISON, BERN, FOR MC CLELLAND FROM WAR REFUGEE BOARD
Please deliver the following message to Mrs. Fanny Hirsch, Comite
Refugies Intellectuals, Geneva, from Dr. Fred S. Weissman of Selfhelp
of Emigres from Central Europe:
QUOTE ANXIOUS TO KNOW NAMES AND ADDRESSES OF NEW BRANCHES AND
REPRESENTATIVES. CABLE REPLY UNQUOTE
THIS IS WRB CABLE TO BERN NO. 223
4:30 p.m.
October 18, 1944
Regraded Unclassified
PARAPHRASE OF TELEGRAM RECEIVED
123
FROM:
AMLEGATION, Bern
TO:
Secretary of State, Washington
DATED:
October 18, 1944
NUMBER:
6913
CONFIDENTIAL
There is transmitted in Swiss note of October 13, a copy
of a note dated September 26 addressed to the Swiss Legation for the
Hungarian Foreign Office which contains a summary translation of the
reply given below to the following:
h. Department's 2863, Dated August 19, paragraph three.
A workers Supervisory Office has been established by the
Hungarian Legation at Berlin to take care of Hungerian Nationals who as
workers were placed at the disposal of the Government of Germany. To
every male and female worker of Hungarian nationality, regardless of
reliegion or race the competence of this office extends.
In addition, Dr. Robert Schirmer, permanent delegate of
the International Red Cross at Berlin, was, pursuant to his request during
his visit to Budapest in early August, informed that International Red
Cross relief and humanitarian activity for those Jews placed as
workers at the disposal of the Government of Germany was also authorized by
Government of Hungery.
The poposal to the Government of Germany that a
representative of the International Red Cross be allowed to visit
Hungarian Jews working in Germany was made by the Government of Hungary
itself.
B. Department's 2900, August 23, paragraph two, pointone.
It was ordered as soon as August 1944 that the transfer
of Jews of Jewish faith for labor service abroad must definitely cease
and no Jews have been put at the disposal of the German Government since
that time.
The Government of Hungary is ready to give authorization
to emigrate to all categories of Jews. During Dr. Schirmer's above
mentioned visit he was 80 advised of this.
Consent has been given by the Government of Hungery for
the International Red Cross organz to observe treatment of Jews and their
living conditions. During the last of July and the beginning of August
of 1944, Dr. Schirmer has exercised this control and since then the
International Red Cross delegate at Budapest, Dr. Friedrichborn has done 80,
10-3-44 DCR:EMS
HARRISON
Regraded Unclassified
124
FMH-605
Ankara
This telegram must be
paraphrased before being
Dated October 18, 1944
communicated to anyone
other than a Government
Rec'd 3:33 a.m., 19th
agency. (Restricted)
Secretary of State,
Washington.
1988, October 18, 1 p.m.
FROM KATZKI TO PEHLE WAR REFUGEE BOARD.
Ankara's 166.
According to reliable information dated September 20 just received
from Filderman in Bucharest. There are in Rumanian 1300 Polish Jewish
refugees, 900 Hungarians, 110 Germans and Austrians and 15,000 repatri-
ates from Transnistria, total 17,310. The Rumanian Government has
approved requests made in Bucharest for admission into Rumania of
approximately 7000 Jews from Yugoslavia. Travel by sea from Rumania to
Istanbul is impossible prior to the pacification of the Balkans. For.
special reasons the evacuation of Transnistrian, repatriates from
Rumania is urgently requested.
The foregoing is for your information. Please advise. Hirschmann.
STEINHARDT
WSB
cc: Miss Chauncey (For the Sec'y.), Abrahamson, Akzin, Cohn, Drury,
DuBois, Friedman, Gaston, Hodel, Lesser, Mannon, Marks, McCormack,
Pehle.
Regraded Unclassified
125
NOT TO BE RE-TRANSMITTED
COPY NO. 11
SECRET
OPTEL No. 339
Information received up to 10 a.m., 18th October, 1944.
1. NAVAL
On 17th a channel gale prevented many sailings. Three
Liberty ships were unloading at Havre.
In Adriatic on 11th/12th British Coastal Forces at-
tacked a convoy off Vir and sank or destroyed four F-lighters,
one E-boat and two troop landing craft, possibly sank one F-
lighter and damaged two F-lighters and one E-boat.
On 15th a British yacht minesweeper and a motor
launch were mined and sunk and a minesweeper damaged in the Gulf
of Athens.
On 15th/16th two U.S. icebreakers captured a German
ship off the east coast of Greenland and took 20 prisoners.
2. MILITARY
WESTERN EUROPE. U.K. troops have reached the centre
of Venray and are on a line just north of the Venray-Deurne road.
Canadians have further slowly compressed from the east the German
pocket south of the Scheldt.
ITALY. Slow and difficult advance in Adriatic sector.
New Zealanders captured Ruffio three miles east Cesena. Some
progress 5th Army front against opposition. Trebbo taken 13
miles south east Bologna.
RUSSIA. Russians have made further progress west of
Riga. In Northern Transylvania they are 40 miles northwest of
Cluj and in Yugoslavia are fighting in the streets of Belgrade.
3. AIR OPERATIONS
WESTERN FRONT. 17th. Bomber Command dropped 291
tons sea wall Weskapelle without apparently enlarging breach.
1248 U.S. heavy bombers (11 missing) bombed by navigational aids
four railway centres. Cologne - 2610 tons. 604 fighters and
fighter bombers (2 missing) attacked communications and trans-
port - 40 motor vehicles and 9 locomotives destroyed, track cut
in 23 places and four German aircraft shot down. 485 transport
aircraft flew supplies to the continent.
MEDITERRANEAN. 15th/16th. 76 bombers dropped 175
tons railway centre Northern Italy and 25 tons pontoon bridge
San Benedetto.
16th. 600 heavy bombers (13 missing) dropped 1264
tons on objectives Austria, Germany and Czechoslovakia, Escorting
fighters (9 missing) met about 100 enemy fighters over the Brux
and Dresden areas, 19 of them were destroyed. In Italian battle
area 554 aircraft of the Tactical Air Force attacked troop con-
centrations, strong points and communications. 102 aircraft
(4 missing) of the Balkan Air Force attacked small shipping in
the Northern Adriatic and objectives Yugoslavia.
4, HOME SECURITY
17th/18th. 14 flying bombs plotted,
Regraded Unclassified
Copy to Angell- 126
October 19, 1944
9:15 a.m.
AMERICAN DELEGATION ON BRITISH LEND-LEASE
Present: Mr. Crowley
Mr. Patterson
Mr. Stettinius
Mr. Lovett
Mr. Taft
Mr. Acheson
Admiral Reeves
Admiral Horne
Admiral McCormick
Admiral Fitch
General Kuter
General Arnold
General Clay
General Somervell
Mr. Gates
Mr. White
Mr. Currie
Mr. Cox
Mr. Collado
Mr. Angell
Mrs. Klotz
H.M.JR: I take it that most of you are familiar
with the memorandum that Mr. Roosevelt and Mr. Churchill
agreed to, how to proceed on Lend-Lease for the English
on phase two. So far I am happy to say that the columnists
have not gotten hold of it, and I hope as a result of this
meeting they also will not get hold of it. That goes for
the newspapermen as well.
The British are coming in in half an hour. I have
had time to read this very hastily and summarize the totals
and compare them with, as near as we could, the total
calendar year of '44, which is very difficult. We have
Regraded Unclassified
127
- 2 -
given our summary to the British and have asked them to
check; and if it is correct, we will be glad to supply
everybody in the room a copy of it.
I have just this suggestion to make, if it is agree-
able to Mr. Crowley and Mr. Stettinius, and to Mr. Patterson
and to the Navy, that if we divide this work up and let
the Army see the British Army and sort of form a committee,
and the Navy can do the same, then--and by that I mean,
Stettinius, you and I can proceed on the non-military, and
then as we develop it, we could split it off into sub-
committees as we found it necessary.
MR. CROWLEY: That is perfectly agreeable to me.
MR. STETTINIUS: Absolutely agreeable. I think it
is consistent with past procedure, Henry.
H.M.JR: Does that sound sensible? Is that all right?
MR. PATTERSON: Yes.
MR. GATES: As far as the Navy is concerned, Mr. Morgenthau
we haven't had a chance to read this over quickly, and we
are not familiar with the memorandum which you referred to
earlier in the conversation. So if it is a question of
breaking up and talking about things, we are not ready to
talk yet on a firm basis as far as the Navy is concerned,
or Navy Air--
H.M.JR: Mr. Forrestal has a copy of the memorandum
I referred to. It gives both the agreement and the conver-
sation between Mr. Churchill and Mr. Roosevelt, so you
will get the background on it, and I think it would be worth
while if you would see it. It is a signed agreement. I
am ninety-nine percent sure that I sent Mr. Forrestal a
copy. In fact, I asked him yesterday, and he said he had
one.
MR. CROWLEY: Mr. Secretary, as I understand what you
want, you want the military to analyze the military; then
you want State, Treasury, and FEA to analyze the non-
military. Then we will get together and review it and
Regraded Unclassified
128
- 3 -
break it down into such smaller committees as we have to
to analyze the non-military and whatever they want to
analyze--the military. And at this meeting this morning,
I understand that after we get through with our discussion
the British are coming in to present anything they would
like to tell us that we might take into consideration in
our deliberations.
H.M.JR: That is correct.
MR. CROWLEY: So that gives the Navy and the Army
plenty of opportunity to study the military end of it.
H.M.JR: And there are plenty of copies of this avail-
able, 80 you need not bother photostating it yourself. If
you want additional copies, we have plenty.
GENERAL ARNOLD: Do I understand we don't talk with
the British until after we have another meeting with you?
H.M.JR: No, General Arnold. There is a new General
over here, an Air Marshal, and immediately after this
meeting he will, I take it, call on Mr. Patterson to present
his credentials today. And I take it that Mr. Patterson
will turn him over to you. I will start immediately after
this meeting.
The thing that I impressed on the British--and for the
first time they have carried it out--is. that there was to
be no ringing of back doorbells until we got set, and they
haven't. They have a whole new crowd over here. They
brought over an Admiral, and entirely new people--a new
deal, 80 to speak. They have waited until this meeting,
and after this meeting, General Air Marshal Courtney and
General Weeks will present their credentials to Mr. Patterson,
and I take it he will see the Assistant Secretary for Air,
and he will in turn turn it over to General Arnold. We
will be very military and very protocol.
MR. PATTERSON: It seems to us the most feasible way,
Henry, to have a working committee on the War Department
items, a working subcommittee to report to the group, is
Regraded Unclassified
129
- 4 -
that we study the items that relate to the War Department
in the British book. Of course, there is not enough
material there for complete analysis; that is understand-
able, because they have quite a formidable job to do.
We believe that we ought to put certain restrictions
on the supply of military weapons, such as that hey
should be used in the approved operations against Japan
and in British participation and occupation of occupied
areas in Europe, and some other ones that are subordinate
to that; but looking over the list, we believe that the
working committees on the War Department items can arrive
at an agreement with the British along the lines of their
requests. There will be some modifications.
The only other interest we have at all in the other
items is this, that the allowance of the civilian items
might have a bearing upon the production of war weapons,
both for the British and ourselves for the continuance of
the war, and also there is the shipping possibility that
we don't want to see, of course, our shipping capacity
for prosecution of the war, particularly in the Pacific,
damaged by allowances that might strike your group as
undue to go to the British for civilian items.
MR. WHITE: Mr. Secretary, would the shipping come
under military, or non-military? It is a very large item,
and I don't see any representative here.
H.M.JR: I thought in the first instance we could
consider it non-military.
MR. PATTERSON: We do not consider it military.
GENERAL ERVELL: I think we would like to sit in
with whatever subcommittee you appoint on shipping in order
to examine the implications of whatever is done and let
you know what effect that would have on the war.
H.M.JR: Having that sort of thing in mind, what I
suggested was that we civilians would sit, and then gradually
split off as these things came up, and I should think
shipping would be one of them.
130
- 5 -
MR. PATTERSON: We don't consider it directly military,
but it may have implications.
GENERAL SOMERVELL: of the main points in this
document is the resumption of British export trade. The
only way you can export anything from Great Britain is
in a ship, and consequently if a considerable proportion
of this shipping was devoted to the re-establishment of
the British export trade, that amount would have to be
subtracted from our potential in waging the war, and we
would like to tell you what we think the effect of that
would be.
H.M.JR: Naturally, we would like to know.
MR. STETTINIUS: Eventually, we will have to have
Jerry Land in, because he has his own appropriations--
transfer authority--just as the War Department and the Navy
have under their large appropriations. In other words,
the War Shipping Administration is another procurement
agency that should be a part of this group, I think,
Henry.
H.M.JR: Well, Jerry Land knows about it, because I
have had him over here, and all he wants is, he says he
is delighted that this committee has been created, because
this committee can tell him whether we make the ships at
cost or forty-percent off--this argument he is having. He
says he is delighted that the committee is there, and that
will take that burden off his shoulders. He said, That
is fine." So everything else is set. He is familiar with
it, and I also gave him a copy of what I call the Quebec
memorandum.
Now, the other thing was that I asked Mr. Crowley to
lend this committee Mr. Frank Coe. He can't be here today.
He will be secretary of this committee. He was secretary
at Bretton Woods, and did a beautiful job, and Mr. Crowley
has consented. So he will be the secretary of this
committee, and will ride herd on you gentlemen to make
sure that you keep working and keep your nose to the grind-
stone and we get a report out. But if you don't know him,
131
- 6 -
he is a very able gentlemen; and if you want something
from him, Frank Coe--
MR. CROWLEY: He is one of our economists in charge
of all our foreign--he is Associate Director.
MR. CURRIE: Until he gets back, Mr. Secretary, if
it will be satisfactory, Mr. Angell is acting for him.
H.M.JR: Where is Angell?
MR. CURRIE: I got the word to him.
H.M.JR: Well, anyway, it will be Jim Angell until
Coe gets back.
MR. WHITE: In your evaluation of the request of the
British for war materials, have you available, and do you
take into consideration also what they are producing?
MR. PATTERSON: We think that should be a requirement.
And one of the jobs for the working committee will be to
arrive at an agreement with the British as to how far their
own production and present inventory should be used for
conduct of operations against the Japanese. We don't
believe that the United States should be called upon to
furnish all the equipment and munitions required by the
British forces in operation against the Japanese on an
approved military operation. That will be one of the
things. they will have to develop to the working committee
of the military leaders and justify the requirements they
put here for us to supply. There are some items there that
look high to us, jeeps, for instance. They seem to us
to be beyond the basis of our own supply to our own forces,
but that is one of those things that they may be able to
show the basis on which they put in their calculations.
We are sanguine of our ability to come to an understanding
with them on the items.
MR. WHITE: They are having the over-all approach.
They say they are going to produce sixty percent of their
former war material. Whether that figure would satisfy
you, or whether you are going into the details, is--
Regraded Unclassified
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- 7 -
MR. PATTERSON: We can come to an understanding on a
great many items, it seems to me, on what the practice
has been in the past. If it is an American type of wea-
pon that they have been accustomed to using, they have &
fairly good case to ask us to continue that. If it has
been a British type that they have been using, a British
caliber, it makes no sense, it seems to us, at this stage
to shift it to America. The element of time alone comes
in there, because you haven't time on a military operation
like that to make a big production change.
The two leading principles that we think ought to
govern the demand they made on us for assistance, Lend-
Lease, and equipment for their military forces is that they
must be used against the Japanese on approved military
operations, or in occupation of Axis Europe. That excludes
military activities they have of a garrison character,
do you see?
And the second one would be the extent to which they
should rely upon their own inventory and their own sources
of production as distinguished from asking us to provide
the items. Those are the two main principles. I don't
think they would dissent from either one of those.
GENERAL SOMERVELL: This general problem in direct
answer to your question shapes up about like this: It is
my understanding that the Air Force is going to cut their
production in this country about twenty-five percent. Our
most recent calculations for the ground items show they
are going to be cut about twenty-five percent. I don't
know what the Navy is going to do, but from general infor-
mation, percent. I understand their cuts will not exceed twenty-five
Land has a program that will continue on into 1945 at
a substantial rate. So it would seem that the over-all
cut in U. S. war production would not be greater than
twenty-five percent, which is a quarter, whereas, the
British propose to set up their cuts on the basis of a
third, which is something for your general committee to
consider. In other words, the general question as to
Regraded Unclassified
133
- 8 -
whether you want to provide for & continuing production
of war munitions in this country at a greater rate than
that production is to be continued in England is something
for your general committee to be concerned with, rather
than these individual committees.
MR. WHITE: Wouldn't that be a prerequisite to any
decision you are apt to make?
GENERAL SOMERVELL:Yes, and no, but if you adopt this
principle that the Under Secretary has outlined, then we
are pretty much in the clear. There are one or two other
subsidiary principles, namely that we should not increase
production in this country beyond what it has been for a
two-front war to carry on a one-front war. In other words,
we shouldn't make more jeeps or more clothing or more what-
have-you for a one-front war than we have been making for
a two-front war. It seems to me to impose that requirement
on our civilians would probably be asking for too much.
H.M.JR: I think this, General, of what Mr. Patterson
said, if it were examined from that standpoint--and then
afterwards we can see how it will fit into our own domestic
situation.
GENERAL SOMERVELL: I was just trying to answer Mr. White's
question.
H.M.JR: They sent this over to me late last night.
May I read this, because I would like to give them an
answer. This is what they would like, "It is the policy
of the U. S. Administration to give Lend-Lease munitions
aid to the British during Stage II in conformity with the
Quebec Agreement between the President and the Prime
Minister. The scale of aid for the first year described
in paragraphs 7 and 8 of Chapter 1 of the British document
is acceptable, assuming that the basis is broadly consistent
with the strategic decisions reached at Quebec and does
not involve insuperable supply difficulties in the United
States. These matters should be discussed jointly by the
appropriate U. S. and U. K. representatives, who should
report to the main Committee within seven days."
Regraded Unclassified
134
- 9 -
Well, my own feeling, subject to the advice of you
gentlemen, is that I think the Quebec agreement in itself
is a sufficient directive without superimposing this on it.
MR. CROWLEY: I think that ould be a great mistake.
H.M.JR: But I would like your advice.
MR. STETTINIUS: I agree.
MR. PATTERSON: I agree.
H.M.JR: Mr. Gates, have you any comment?
MR. GATES: No, I have no comment. I haven't seen
the Quebec agreement, so I am a little bit in the dark.
H.M.JR: Dean, have you seen the Quebec agreement?
MR. ACHESON: Yes.
H.M.JR: What would your advice be?
MR. ACHESON: I agree with Ed.
H.M.JR: Then, should I tell them that we feel that
there is enough directive in the Quebec agreement that
we don't need another one?
MR. CROWLEY: That is my feeling.
MR. STETTINIUS: Yes.
MR. PATTERSON: Yes, sir.
MR. STETTINIUS: And I would think that they should
be warned that this is quite a task and that we have to
have some time and that we can't give them any definite
commitment in a few days.
H.M.JR: Well, I only got those reports--three copies--
around three or four o'clock Tuesday afternoon, and I
immediately called each of you, and immediately distributed
them. So I couldn't move any faster.
Regraded Unclassified
135
- 10 -
Now, the other thing which I would like to say for
the benefit of the old-timers--and I have singled out
General Arnold--when they bring up some of these dead
cats like some of the things that you and I sweat over a
long time ago, as far as I am concerned, I would much
rather find them some fresh money than go back to some of
these old things which you and I sweat so hard over. Now,
of course, if you want to dig all those things up and go
back into some of those things that they are bringing up,
all right, but speaking for myself, I have forgotten them.
I have to go back into my dead files to find out what they
were talking about.
GENERAL ARNOLD: That is history, as far as I am
concerned.
H.M.JR: But I would hate to have to go back to some
of those old contracts, because Sir Frederick Phillips was
here, and we spent literally days and days and days on those
things. I was sorry to see them bring them up. As I say,
I would much rather find some fresh money if they need
additional cash to keep up their balances. I would rather
just lay it on the table, a hundred million dollars of
somebody's money, rather than to go back over those old
contracts. How do you feel?
GENERAL ARNOLD: That is the way I feel about it.
I don't think we ought to waste time going back over those
old contracts. That is wasted time.
H.M.JR: Bob, I singled out General Arnold because
he and I spent so much time on that together.
MR. PATTERSON: We believe that the military items are
relatively easy, and we ought to come to an agreement with
them on them, item by item. They do not involve the general
economics that are discussed in the first part of the British
book. If they are agreeable to the limitations that we
suggest, that they cover no more than their requirements
against Japan and occupied Europe--
(Mr. Angell enters the conference.)
Regraded Unclassified
1/3
136
- 11 -
MR. WHITE: Then they would also not include a dis-
cussion of the material in Chapter Three, if that is the
approach.
MR. PATTERSON: We don't think any post-war considera-
tions can come into it. We don't think that requirements
of armed forces of the liberated countries can come into
it, but we believe that within the items they specify there
and the quantities they want, that we can probably arrive
at an agreement with them through these working committees.
We won't be very far apart.
MR. WHITE: Let's suggest that Chapter Three will
not be an item of discussion with the Army because it is
devoted to getting some cash for those old contracts.
Although they deal with war material, the purpose is merely
to augment their cash.
ADMIRAL McCORMICK: That is not true as far as the Navy
is concerned with the items I saw last night. A great many
we will not be able to give them.
MR. LOVETT: The point you discussed with General Arnold
as I understand, sir - the responsibility of the War Depart-
ment to the Air Forces relates to the availability of the
end product, military weapons, and not to the sources of
the money from which that payment will be provided.
In other words, we are to look to the need for and
availability of a weapon, not to how that weapon, if avail-
able, is to be transferred through bookkeeping.
H.M.JR: I would say that was correct.
MR. LOVETT: I simply asked that because of your
reference to those contracts. We couldn't possibly identify
some of those contracts.
H.M.JR: I simply brought it up because I think they
were making things extra hard for themselves and we might
perfectly well spend a month on that item, where the other
things - you might be able to do it in a week.
Regraded Unclassified
2/s
137
- 12 -
I just mentioned it. To go back into those old con-
tracts - I just haven't got the time.
While we are on that I would like to say that
Admiral Leahy called me up yesterday afternoon and said
that he hoped, speaking for the Combined Chiefs of Staff,
that we would not give them a firm agreement or a protocol.
He said, "I have gotten educated in the last couple of
days as to what a protocol is." of course, he was just
kidding. Of course they would continue to be referred to
the Munitions Assignment Board. I said I had talked to
you (Patterson) previously.
ADMIRAL McCORMICK: That is the Navy's attitude, too.
H.M.JR: Unless the Committee felt otherwise - if they
did, I would discuss the matter with him again - but unless
he heard from me again it would be the desire of the
Committee that after the munitions were found, when they
were manufactured, that they would be processed through the
Munitions Assignment Board.
MR. PATTERSON: That is our recommendation. We believe
that almost all of their items are within our production
capacity, but nevertheless, they have got to take pot luck
along with us and our armed forces, month by month.
H.M.JR: Well, I had talked to you previously.
MR. GATES: That is our recommendation, too,
Mr. Morgenthau.
There is another question of detail I would like to
bring up in connection with the direct Navy items. There
are over four hundred million of direct Navy items.
There is another very large Navy item thrown in with the
Air Force figure which comes around three hundred and
sixty million in addition. They are almost equal.
I assume that the Air man will discuss the Air Force
items with Mr. Lovett and General Arnold. I would like to
have a Navy officer there as well to discuss the Navy
Regraded Unclassified
3/s
138
- 13 -
side of it because they have thrown in the Fleet Air Arm
with the other requirements.
H.M. JR: If that is the way you want to work, that
is quite all right, but doesn't the Navy do their own
procurement of air planes entirely separately?
MR. GATES: That is right, but their request is for
Navy planes - the British request. It has been thrown
in with the over-all Air requests.
GENERAL ARNOLD: Mr. Secretary, there is a certain
tie-in between the Army and Navy procurement. In the
past we have always sat together with the British.
H.M.JR: If it is agreeable to my associates, if
Mr. Lovett and Mr. Gates will work it out - any way they
work it out will be quite all right with me. Is that
all right with you?
MR. CROWLEY: Sure.
MR. STETTINIUS: Sure, just the procedure followed
in the past.
MR. PATTERSON: That is perfectly all right with me.
The Navy needs representation, of course.
MR. WHITE: Mr. Lovett said something that raises some
uncertainty as to the procedure. Mr. Lovett said their
concern will be as to where it can be produced, but one
of the problems you will be confronted with, Mr. Lovett,
is an item which can be produced in quantity either in
England or in the U.S. And they want us to take into
consideration - and it is quite legitimate that even though
they could produce it, they want to get it here because
they want to curtail their production for purposes described
in Chapter One. So I think there will have to be a decision
on your part as Bob outlined.
MR. LOVETT: I apparently didn't make myself clear.
I didn't recall stating anything about where it should be
Regraded Unclassified
4/s
139
- 14 -
produced, but merely the need for the article and its
availability here in contrast to the availability of
funds to pay for it.
MR. WHITE: Then I misunderstood you.
MR. PATTERSON: The military strategy will determine
a lot of these things as to who should provide it. If
it is a short-range plane, they should use their spitfires;
if it is a longer-range fighter, their request for a P-51
is reasonable. You can decide a lot of those questions
just upon the planned military opposition.
MR. STETTINIUS: Henry, I have one small point before
the British come in. If it is decided to do away with the
White Paper as proposed in this document and allow present
exports by the British - and I understand that is proposed
if that is the case - they will not receive commodities
under FEA that could be fabricated into export articles.
Harry, had you gone into the matter of investigating
the present inventory of raw materials and commodities
in the United Kingdom from the past three years operations
of Lend-Lease?
MR. WHITE: That is one of the problems you will want
to raise and ask them. They have not supplied it and
certainly one of the things Oscar mentioned you would want,
we thought that the first meeting might be appropriate for
FEA to raise that question.
MR. STETTINIUS: I couldn't find it in this document
and that is a matter that is going to take a little time,
and I would think today, Henry, that they should be put on
warning that before we can agree to eliminate the White
Paper, they must supply FEA with a detailed break-down of
the existing inventories under the past Lend-Lease opera-
tions.
H.M.JR: Could Mr. Crowley or you ask them?
Regraded Unclassified
5/8
140
- 15 -
MR. CROWLEY: We will certainly ask them for that.
MR. STETTINIUS: But as Oscar and Lauch know, in your
past operations with the British on commodities, sometimes
they have taken six months to give us their inventory of
steel bullets and copper tubing, and then we have had to
hit them over the head with a brick, sometimes, to get it.
You remember.
I think they ought to be put on warning today that we
cannot proceed with an agreement until we have a complete
inventory statement of their existing Lend-Lease stocks.
H.M.JR: What I would like to suggest is this, if
it is agreeable, that the non-miiitary, or the Committee
itself, meet again tomorrow morning at nine-fifteen, and
then we again ask the British to come in a half or three-
quarters of an hour later and get the non-military thing
started. Would that be possible?
MR. STETTINIUS: Yes, but, Henry, isn't that something
you want Leo to carry the ball on?
H.M.JR: But I would like a chance to talk with him -
how we proceed.
MR. STETTINIUS: I don't think Dean and I want to get
into the detailed operations of FEA.
MR. CROWLEY: Well, we only got this day before yester-
day. Are we far enough along that we know about the re-
quests and figures that we want from the British?
MR. CURRIE: I should think we could have a preliminary
talk.
MR. COX: I think he is right. There isn't enough
break-down here. It takes them so long. We have started
our own spot-check on the inventory, and unless you get
that into the machinery--
Regraded Unclassified
6/s
141
- 16 -
MR. STETTINIUS: My recommendation is you appoint
a subcommittee on the working level of FEA to work with the
British on non-military items.
H.M.JR: I would like to meet with Mr. Crowley and
his people tomorrow morning, if he would, to discuss this
thing further.
MR. CROWLEY: I won't be here tomorrow morning, but
Oscar and Lauch will meet with you.
H.M.JR: All right, and Mr. Angell.
MR. STETTINIUS: Could I be excused? Mr. Hull has
been away and I have more than I can do.
H.M.JR: Could Mr. Acheson come?
MR. STETTINIUS: Yes.
MR. ACHESON: I will be glad to.
H.M.JR: I want to get this thing started correctly.
MR. CURRIE: This will be a meeting with the British?
H.M.JR: No, it will be first with us, then I would
like to have the British after that again, just to get the
non-military thing started - if that is all right. Is that
all right with you, Leo?
MR. CROWLEY: Fine. Perfectly all right.
H.M.JR: Just so I can feel that everybody is working.
Regraded Unclassified
copies to Ungall #12
Frank Lee 10/20/44-
October 19, 1944
9:45 a.m.
BRITISH LEND-LEASE NEGOTIATIONS
Present: Mr. Crowley
Mr. Cox
Mr. Stettinius
Mr. Collado
Mr. Patterson
Mr. Angell
Mr. Lovett
Lord Halifax
Mr. Taft
Lord Cherwell
Mr. Acheson
Lord Keynes
Admiral Reeves
Mr. Ben Smith
Admiral Horne
Mr. Brand
Admiral McCormick
Mr. Lee
Admiral Fitch
Mr. Sinclair
General Kuter
Sir Henry Self
General Arnold
Air Marshal Courtney
General Clay
General Weeks
General Somervell
General MacReady
Mr. Gates
Admiral Waller
Mr. White
Mrs. Klotz
Mr. Currie
H.M.JR: Simply because it is in my office,
Lord Halifax, I will call the meeting to order, if it
is agreeable to you.
We received this very admirable Paper and none of
us have really had time to digest it, but we have been talk-
ing here among ourselves and we would like to make the sug-
gestion to our British friends that the military require-
ments - our military people represented by Mr. Patterson
are ready to meet any time today with your military people
and to go to work with them.
So, if that would be agreeable, any time your military
people will call on Mr. Patterson, he will see that they
are put in touch with the proper military people.
Regraded Unclassified
113
- 2 -
In regard to the Air, Mr. Lovett and Mr. Gates find
that they group the Navy requirement for your Air in with
the military and they will meet together and will work
it out to receive both your Navy and your Army people, be-
cause you work a little bit differently than we do. But
they will work it out among themselves, and that is agree-
able to Mr. Patterson that they will receive your people
so they will get adequate attention.
Then we thought in regard to the non-military we would
have another meeting tomorrow, if possible, at ten o'clock,
where we could take up the things which are not straight
military matters, and then try to organize so that we
could get the non-military working, looking forward to
subdivisions and committees; for example, shipping - most
likely there will have to be a Shipping Committee. And
then your Navy people will meet with our Navy people and
they will call on Mr. Gates. He will receive them today.
Is that right, Mr. Gates?
MR. GATES: Either Forrestal or I.
H.M.JR: All right, they will call on Mr. Forrestal.
He will receive them and see that they get started imme-
diately. Does that sound all right?
LORD HALIFAX: Sounds all right to me.
H.M.JR: There will be no time lost. I put it that
way, on an informal basis, and they can form their own
groups. But if they will call on Mr. Forrestal and on
Mr. Patterson they can get started. I have discussed this
with Mr. Crowley and Mr. Stettinius and Mr. Patterson, and
what I am suggesting is agreeable to them.
Now, Mr. Crowley, did you want to bring up some things
that you needed to get started on?
MR. CROWLEY: I would like to suggest this, that we
should have an inventory of the Lend-Lease non-military
that you have in England so that we will be able to have
that in considering your request. I don't think there
is anything else.
Regraded Unclassified
144
- 3 -
After we get that, our people will start to work
with their people in discussing their requests through
the committees that we will set up.
H.M.JR: Would you like to start today, or would you
rather postpone it?
MR. CROWLEY: I would sooner wait until after the
meeting tomorrow.
H.M.JR: Then if it is agreeable to you, Lord Halifax,
we would like to meet with you again tomorrow on the non-
military, and then discuss in greater detail how we proceed
on the non-military.
LORD HALIFAX: I see.
H.M.JR: Now, this suggestion for a Directive which
was handed to me last night, we here feel quite emphati-
cally that the Quebec agreement between Mr. Churchill and
Mr. Roosevelt, plus the conversations back of it, is suffi-
cient of a Directive to these various groups, and we feel
quite strongly on that. I mean, the various Cabinet Members
have all received copies of that agreement and the conversa-
tion behind it. They understand the spirit of it, and they
are quite prepared to carry it on in that spirit, and they
don't feel that anything is necessary to be added to that
agreement, plus the conversation between those two gentlemen.
We are all prepared to carry on in that spirit.
LORD CHERWELL: I have no doubt that the members of
the subcommittees will also be aware of the routine, or
of the conversation.
H.M.JR: Mr. Hull has had & copy, Mr. Stimson has had
a copy, Mr. Forrestal has had a copy, and Mr. Crowley has
had a copy. That goes without saying. And I think I can
speak for them when I say we are all prepared to carry on
in that spirit.
LORD HALIFAX: On that point, subject to what my
friends have to say, we are in your hands and are very
grateful to hear what you say.
Regraded Unclassified
145
- 4 -
H.M.JR: I think in this instance - you can trust me,
I hope!
LORD KEYNES: Mr. Secretary, on the first page of this
document, no doubt if we misunderstood anything there--
H.M.JR: I don't think I quite understand, Lord Keynes.
LORD KEYNES: On the first page of this Paper we have
arranged and set out what we understand to be the purpose
of the Quebec agreement. We just want to be sure there is
no misunderstanding about that, that you understand it the
same way we do, as set forth in the first page.
H.M.JR: In view of your raising that question, my
associates and I will re-examine that first page. If we
are not in complete agreement, we will say 80 tomorrow.
But certainly in all the conversations I have had with
Mr. Crowley and these other Cabinet Members, there has been
no question that they are prepared to carry out the spirit
of the Quebec agreement.
Now, what else?
LORD KEYNES: I think that is perfectly all right.
H.M.JR: Is there some suggestion from your people
to accelerate or facilitate the military in their work?
MR. LEE: Mr. Secretary, they will be starting to
meet, I take it, this afternoon if you want to, sir.
H.M.JR: Mr. Patterson will be ready and Mr.Forrestal
will be ready to receive them if they will just call up on
the telephone and say they would like to come over. Is
that right?
MR. PATTERSON: Yes, sir, right now. The working com-
mittees can be set up this afternoon.
H.M.JR: And Mr. Gates, you will arrange tha t Mr.Forrestal
will see them immediately?
146
- 5 -
MR. GATES: Yes, I will, Mr. Secretary. If he won't,
I will be there anyway, and I can arrange it.
H.M.JR: It can still be arranged this morning.
Something else?
MR. LEE: No.
MR. SMITH: The Admiralty and the Air to meet the same
day, sir?
H.M.JR: Now, the Admiralty and the Air - I think they
had better work that out. As I say, after they have made
their call - you mean on planes?
MR. SMITH: Yes.
H.M.JR: Mr. Lovett and Mr. Gates will work that out
between them. Is that right, gentlemen?
MR. GATES: I understand it is just a question of
setting up the working committee to work with Air Marshal
Courtney on this. Mr. Lovett and I will work that out.
H.M.JR: It is our desire not to tie up you people
one minute longer than is necessary. We will work just
as fast as we can.
MR. CROWLEY: This comes to my mind, Mr. Secretary.
I doubt that you can have a meeting of this size without
having the press start speculating as to what the meeting
was all about and I am wondering, for the sake of the
record, if this isn't the purpose of the meeting: To
meet with the British, State, Treasury, Military, and FEA
to discuss with them the plans for the second phase of this
war, and as to what Lend-Lease would be given to them in
military and non-military items to help the prosecution
of the Japanese war. And let that be the purpose of this
meeting. Then that will stop all of this speculation that
might go on.
Regraded Unclassifie
147
- 6 -
I can see where there would be a world of speculation
unless there is something like that agreed on here - a
conference to discuss the aid that we might give, or mutual
aid, for the second phase of this war. But if we get into
something beyond that, we will get into a world of specula-
tion that would do the whole Allied effort & lot of damage.
H.M.JR: Well, we don't have newspapermen at my door,
so they won't know about this meeting. It isn't like at
State, that you have a man patrolling the corridors.
MR. STETTINIUS: Patroiling, that is a good one!
H.M.JR: Cruising, would you prefer that?
MR. STETTINIUS: Protecting Mr. Acheson.
H.M.JR: So how about this, Mr. Crowley: If there
are any inquiries, then let's have the Secretary on this
side - that being Mr. Angell - confer with the Secretary
for the British and work out a joint statement? But if
there are no inquiries, why give one?
MR. CROWLEY: That is perfectly all right with me.
MR. STETTINIUS: That is agreeable with me, Mr. Secre-
tary. I think my suggestion would be that we have something
ready to hand out, because I don't have very much, not today,
but next week we can continue as large a group as this meet-
ing from time to time without somebody getting news of it.
H.M.JR: Another meeting wouldn't be necessary. But
if that is agreeable to Lord Halifax - - I believe Mr. Lee
is Secretary - if he would confer with Mr. Angell, who is
Acting Secretary for us - if they would work out a joint
statement so in case there are press inquiries, and clear
it on both sides, then if there are no press inquiries,
say nothing.
LORD CHERWELL: Along the lines suggested by Mr.Crowley.
H.M.JR: The very excellent lines suggested by
Mr. Crowley.
Regraded Unclassified
148
- 7 -
LORD HALIFAX: That is perfectly all right.
H.M.JR: In other words, if we are not asked, we
don't volunteer, and if we are, we have a press state-
ment ready.
May I, on behalf of the American Government, welcome
these gentlemen to this country who have come on this
mission, and assure them we will do everything to aid them
and try to make their mission a success.
Regraded Unclassified
149
October 19, 1944
10:28 a.m.
HMJr:
Talking.
Secretary
Forrestal:
Have you another -- a spare copy of that
Quebec memorandum?
HMJr:
Sure. I think I sent you one.
F:
Well....
HMJr:
You -- you can't find it?
F:
I don't believe you did but that -- but you
might -- you probably are right and I'm
probably wrong.
HMJr:
Well, I'll send you one but you remember I
was checking my memory yesterday and I
mentioned it to you on the phone and I was --
well, I can look up my letters.
F:
Oh ....
HMJr:
Anyway I will send you one.
F:
Will you please, Henry? Fine. I could send
over for it. That might be quicker and save
you time.
HMJr:
Either way. If you'll send somebody, it'll
get in to you quicker.
F:
I'll send it -- I'll get him right over to
your office.
HMJr:
But you don't think you have one?
F:
I don't think BO but Keith Kane,
who was handling that stuff for me was -- his
father-in-law died and he -- he's away. All
of it -- all of that goes to him and I can't
locate his file.
HMJr:
Well, if you will send somebody to my office,
by the time he gets here I'll have a copy
ready for you.
F:
Thank you, Henry.
Regraded Unclassified
150
- 2 -
HMJr:
We had a good meeting.
F:
Fine. I understand you did.
HMJr:
Thank you.
F:
Fine.
Regraded I Inclassified
151
October 19, 1944
Dear Jim:
I am enclosing herewith copy of a letter
which I sent you on October 5th. I am very glad,
however, to send you another copy of the so-called
Quebec Agreement. - Photostatic copy inclosed-
One of the purposes I had in inviting you for
lunch recently was to show you the memorandum of
the conversation between the President and Mr.
Churchill at the time the Quebec Agreement was made.
I hope to show it to you the first time we can get
together.
Sincerely yours,
(Signed) Henry
The Honorable James V. Forrestal,
Secretary of the Navy,
Washington, D.C.
Marine Sgt. called far the letter
Regraded Unclassified
152
October 19, 1944
10:40 a.m.
HMJr:
Hello.
Operator:
Judge Rosenman.
HMJr:
Hello.
Judge Sam
Rosenman:
Hello.
HMJr:
Sam.
R:
Yeah. Hello, Henry.
HMJr:
How are you?
R:
Fine. How are you?
HMJr:
Fine. Oscar Cox said that you called him
in regard to this Dewey speech, I gathered --
is that correct?
R:
No. I never called him. I haven't talked to
him.
HMJr:
Well, I got the impression from him that you
had. Maybe I misunderstood him. But anyway
....
R:
No.
HMJr:
I got that impression that you called him
after the Dewey speech.
R:
No.
HMJr:
And that you were going to prepare something
and Oscar said he thought that Stimson and
Hull and I ought to give out a statement or
something.
R:
I haven't talked with Oscar. He called me but --
and I've called him back but haven't been able
to reach him. I have not talked with Oscar. He
must be having hallucinations.
HMJr:
Could be.
R:
Did he quote me to that?
Regraded Unclassified
153
- 2 -
HMJr:
Well, I -- I understood him
....
R:
God, no.
HMJr:
Well, forget about it.
R:
I haven't talked with him
....
HMJr:
Well ....
R:
....
in weeks.
HMJr:
All right. Well, don't -- let me talk to
you but when you talk to him forget about
it.
R:
All right.
HMJr:
Are you doing anything about it?
R:
No.
HMJr:
I see.
R:
The only -- the only -- the only thing that I
do 1s when they pull a thing out of context.
I've been getting up those White House releases.
HMJr:
Well, they're very good. I congratulate you.
R:
Thank you. But these things, I think, require
answer from other people. The one about the
armistice signed in Rumania is -- seems to me
clearly calls for an answer from Hull.
HMJr:
Well, what about this one that through somebody
leaking the memorandum that I gave the President,
that that slowed up the war?
R:
Yeah. Well, now that's -- that's a damned tough
one.
HMJr:
Yes.
R:
I think that the fellow to answer that is --
well, I agree with Oscar if that's what he said,
that the only answer to that could come from the
three of you and I don't know whether there is
an answer. I don't know what the facts are. I've
never been told and I've never asked.
Regraded Unclassified
- 3 -
154
HMJr:
Well, I mean the facts are of course, the
person who should take the blame if the war
was slowed up was the person who did the
leaking. You see?
R:
Yes.
HMJr:
Somebody leaked about a document which belonged
to the President of the United States.
R:
I see.
HMJr:
And then without ever checking it, these various
newspapers ran it.
R:
I see.
HMJr:
They never checked it. But -- 80
....
R:
Well, now does -- can the statement be made that
the stories that appeared are untrue?
HMJr:
Well, the President said that in his press con-
ference.
R:
Well, I mean, can the -- can Chapter and Verse
be cited the way I do in these White House
releases?
HMJr:
No. No, they can not be.
R:
Well, then -- then I don't see any reason for an
answer.
HMJr:
Because they because they were seventy-five
percent truth.
R:
Uh huh. Then I -- I don't see how an answer can
be made then. And I -- I don't think that
....
HMJr:
Well, the only answer ....
R:
It would only if you start talking about those
who leaked, it's another instance of bungling and
inter-agency conflicts.
HMJr:
Yes.
R:
That's the way Dewey would play it up.
Regraded Unclassified
- 4 -
155
HMJr:
Well, the -- the answer that can be made is
8.8 General Marshall said, that from his infor-
mation this statement can be made over General
Marshall's signature, that these statements had
absolutely no effect on the conduct of the war.
R:
If Marshall would say that, it would be perfect.
HMJr:
Well, why can't the White House get Marshall to
say that?
R:
Whom do you mean in the White House?
HMJr:
Well, I mean that either you or Harry Hopkins
or the President should ask him.
R:
Well
HMJr:
In the name of the President.
R:
Well, I -- I certainly agree that that ought to
be done.
HMJr:
Well, I think
R:
But he wouldn't pay the slightest attention to
me.
HMJr:
Well, Hopkins is very close or Leahy could ask
him. I mean if you, for instance -- I'm just
thinking out loud -- said to Grace, "Find out
if the President would like such a statement."
And then Grace could simply tell Leahy to ask
Marshall. That's -- that's the way it would go.
R:
Well, Henry, I -- I'm going to stay out of that
one because it's something that I know nothing
at all about, and I'm perfectly willing to take
it up with Harry.
HMJr:
I'll take it up -- I'll take it up with Harry.
R:
I can ask Harry whether he would call Marshall
but I -- I don't want to call Marshall. on it.
HMJr:
Well, supposing I -- I'll call up Grace myself.
R:
Would you want me to say anything to Harry?
Regraded Unclassified
156
- 5 -
HMJr:
Oh, I think we might just -- if I'm going to do
it, I might just as well do it with Grace. I
mean if you don't want to do it, I'll do it
direct.
R:
All right.
HMJr:
Because I think it would be very helpful for the
President.
R:
I certainly do. If Marshall would say that, it
would be perfect.
HMJr:
Well ....
R:
or even -- or it would be just as good if
Stimson would say it.
HMJr:
No, I think
....
R:
It would be better, I think, if Marshall would
say it.
HMJr:
Much better.
R:
Be much better.
HMJr:
I'll get hold of Grace right away.
R:
Fine.
HMJr:
Thank you.
R:
Okay.
Regraded Unclassified
157
October 19, 1944
10:47 a.m.
HMJr:
Hello.
Operator:
Miss Tully is not in the office. Miss Brady is
on the line.
HMJr:
All right.
Dorothy
Brady:
Hello.
HMJr:
Dorothy.
B:
Yes, Mr. Secretary.
HMJr:
How are you?
B:
How are you?
HMJr:
Fine.
B:
I haven't talked with you in months.
HMJr:
Well, that's my loss.
B:
You've been neglecting me.
HMJr:
Well, I'll see that that's corrected.
B:
Okay.
HMJr:
Are you going to see the President?
B:
Well, Grace will. He's supposed to be over
here around eleven or shortly thereafter.
HMJr:
When is Grace coming in?
B:
Well, she's in, Mr. Secretary, but she's not
around at the moment.
HMJr:
Well ....
B:
She'll probably see him though before eleven-
fifteen I would think.
HMJr:
Is there any way that I could talk to her
before she sees the President?
B:
Oh -- oh, yes.
Regraded Unclassified
- 2 -
158
HMJr:
I'm very, very anxious to talk to her before
she sees the President.
B:
Yes, Mr. Secretary, I'll see that you do.
HMJr:
Will you do that?
B:
Yes, sir.
HMJr:
And so when -- will you ....
B:
I'll give you a ring as soon as I get hold of
her.
HMJr:
Thank you so much.
B:
All right.
Regraded Unclassified
159
October 19, 1944
Herbert Gaston
Secretary Morgenthau
I don't know whether you heard Dewey last night
but if you didn't I'm sure his speech is in the paper
this morning. The part that I refer to is where he
talks about the President taking me to Quebec and
then goes on to say that Goebbels used it as propa-
ganda with the result that there was great loss of blood.
I wish you'd get the exact remarks that he made and
then I'd like you to draft a letter for me to Mr.
Stimson along the following lines: "My dear Mr.
Stimson: You may or may not have heard what Governor
Dewey said last night," and then quote that part.
"For your information I am enclosing herewith copies
of three newspaper stories, one by Clark, one by
Hightower and the one in the Wall Street Journal.
Please note the dates. Some person in Mr. Roosevelt's
Administration committed the outrageous act of showing
a highly confidential document belonging to the President
to these men or else told them the contents of it. Now,
what I'd like to know from you, Mr. Stimson, is this:
in the opinion of your general staff, did the release
of this confidential information to the American public
Regraded Unclassified
160
- 2 -
have anything to do with the fighting on the part
of the Germans on the Eastern and Western fronts?"
I want to particularly add the Western front
because if you will take a look, Herbert, I think
you will find that the Russians have been going
right straight along. And the fact that we've met
stiff resistance, I think, is due to two things:
one, that the British were unsuccessful in the
paratroop efforts; two, I understand from high
authority that our great difficulty was supplies.
But anyway I wish you would draft such a letter
very, very carefully and then I want to sit down
this afternoon and go over it with you and decide
whether or not I want to send it. As a matter of
fact if you could have it ready by 11:30, I'd like
to go over it with you because I don't want this
record made without getting an answer from the
Army. Twenty years from now somebody will bring
it up. I think the time to lay it is now.
In writing the letter instead of saying that
"Germans fighting on the Eastern and Western fronts",
I'd say how the Germans have been fighting on all
fronts, because after all, we've been meeting them
in Italy and I don't see that there has been any
change there. The English met them in Greece and met
no resistance and the Russians have been meeting very
110
Regraded Unclassified
161
- 3 -
little resistance in going into Bulgaria. I'd say,
"all fronts" because the more I think about it, the
more it seems to me that we have run into a difficult
situation in Holland. I repeat I have been reliably
informed that we have not been able to get our supplies
up to our men.
Regraded Unclassified
162
October 19, 1944
11:20 a.m.
HMJr:
Hello.
Operator:
Mrs. Brady.
HMJr:
All right. Hello.
Dorothy
Brady:
Hello.
HMJr:
Where's your girl friend?
B:
Well, she's not here and the Boss hasn't come
over either.
HMJr:
Well, I'm just sittin'.
B:
I know, dear, and I'm sittin' too, waiting to
telephone you as soon as I get hold of her or
him.
HMJr:
Okay, darling.
B:
All right. Bye.
HMJr:
Take care of yourself.
B:
All right.
Regraded Unclassified
163
October 19, 1944
12:01 p.m.
Operator:
There you are.
White House
Operator:
Thank you.
HMJr:
Hello.
White House
Operator:
She will be right on, sir.
HMJr:
Thank you.
White House
Operator:
Yes, sir.
HMJr:
Hello. Miss Tully?
White House
Operator:
She's coming -- be right on, sir.
HMJr:
Hello.
Grace
Tully:
Hello.
HMJr:
Hello, Grace.
T:
Good morning, Mr. Secretary.
HMJr:
How are you?
T:
Fine, thank you, sir. And you?
HMJr:
Very well. Grace, I don't know whether you
heard Mr. Dewey last night.
T:
I certainly did.
HMJr:
Well, I have a suggestion for the President
I thought you might get to him. The sentence
particularly -- if you've got a pencil
....
T:
Yeah.
HMJr:
in which he says, "We are paying in blood
II
T:
Yeah.
Regraded Unclassified
164
- 2 -
HMJr:
If for our failure to have any ready - -- have
ready an intelligent program for the dealing
with the invaded Germany." Now, what my suggestion
was: after all, General Marshall 18 just back.
T:
Yes.
HMJr:
I understand from Harry that General Marshall
visited every single Division.
T:
Yes.
HMJr:
Why wouldn't it be a good thing to let General
Marshall go on the air and make a statement of
his trip?
T:
Yes.
HMJr:
And not -- and in this statement explain what
he saw
....
T:
Yes.
HMJr:
And not too ostensibly answering Dewey, but still
saying that we were ready and that no ounce of
blood unnecessarily has been shed for any thing.
T:
Uh huh.
HMJr:
See?
T:
Yeah.
HMJr:
Now, why he's just back. It's a logical thing
to do.
T:
Yes.
HMJr:
And to tell the American public what he saw
there.
T:
Uh huh. All right. Fine. I'll make a memo for
him and let you know what he said.
HMJr:
Will you do that? And I think the sooner he
does it, the better because that's a terrific
thing to say.
T:
Uh huh. Yes, it's a terrible thing because the
headlines in the Times-Herald, of course, cracks
at this -- I mean, they take it out as the head-
lines.
Regraded Unclassified
165
- 3 -
HMJr:
Sure. But what do you think of my suggestion?
T:
I think it's very good.
HMJr:
Well, see what you can do with it.
T:
All right. Fine. I'll -- I'll present it to
him.
HMJr:
And, Grace, one other split second, do you know
yet how he's going up after he's speaking?
T:
I think by train but I haven't checked it again.
HMJr:
Well, you might find out. I might want to hitch
hike.
T:
All right, fine.
HMJr:
If you'd let me know.
T:
Yeah. All right, Mr. Secretary, I will.
HMJr:
Thank you.
T:
All right, sir.
Regraded Unclassified
166
October 19, 1944
2:40 p.m.
UNEMPLOYMENT PROGRAM SPEECH
Present: Mr. Cox
Mr. White
Mr. O'Connell
Mr. Gaston
Dr. Lubin
Mr. Currie
Mr. Cohen
Mr. Bernstein
Mr. DuBois
Mr. Luxford
Mrs. Klotz
Mr. Henderson
Mr. Gass
MR. WHITE: There are three drafts, two emanating
from Bob Nathan's shop - I guess the second one does,
too, doesn't it, Oscar?
H.M.JR: Is this all the New Dealers we could get
together on a Thursday afternoon?
MR. WHITE: And there is a longer draft which was
prepared chiefly in the Treasury, though each have taken
some from the others. (Refers to attached draft entitled
"The Economic Bill of Rights")
Now, how would you like to proceed? I will distribute
copies of the longer draft. Would you like to have one of
them read, or described, or would you like to have--
H.M.JR: You take the one you like the least and see
that I hear it first. Seriously, I have from now until
four o'clock.
MR. WHITE: Then we will read the long one.
(Mr. Leon Henderson enters the conference)
Regraded
167
- 2 -
MR. WHITE: The first one I am going to ask Luxford
to read, since the driving force in this has been imposed
on us chiefly by Luxford and DuBois. It is about a
thirty-five or forty minute speech that can be cut to any-
thing desired.
H.M.JR: Just keep in mind that I have from now until
four o'clock.
MR. WHITE: That will be enough time to read two,
anyway, or you can stop at any point in the first if you
think it is wrong in tone, and 80 forth. I know of no
other way.
H.M.JR: If I might have my choice, I would like to
have the one which has a plan.
MR. LUXFORD: This has a plan.
MR. WHITE: They all three have, but this has it much
more definitely than the other. We got together and talked
over as to what might be in it, but the degree of emphasis
on the plan varies very greatly. It stands out most
clearly as a program - specific program - in this longer
draft.
H.M.JR: Harry, you have worked for me, you do it
any way you think is all right, and stop sparring!
MR. WHITE: Luxford and I had an agreement that some-
how I must work it so he could read it, because you would
probably get tired, but I wanted to be strictly honest.
H.M.JR: I knew I would get the one you liked the best
first.
DR. LUBIN: Could we save time by moving into the
specific points and leave the introduction and peroration
out?
MR. WHITE: Yes, you could save time, but the boys
feel you would lose.
168
- 3 -
(Mr. Luxford reads attached draft entitled "The
Economic Bill of Rights")
(On Page 6, following line 12, interpolation as
follows:)
H.M.JR: Let me interrupt you. Was that the original?
MR. LUXFORD: Those are precisely the Rights that he
sent to Congress.
H.M.JR: They sounded new to me.
MR. LUXFORD: That shows how much you have to repeat
them.
H.M.JR: That is why I am mentioning them.
MR. LUXFORD: The PAC has built their campaign on
these Rights.
H.M.JR: They don't reach me.
MR. LUXFORD: They can't, after they are built.
H.M.JR: I take it when you use a figure like two
hundred billion, it has been checked - you haven't just
pulled it out of the air?
MR. WHITE: It is a reasonable figure, but we would
check those figures.
H.M.JR: The answer is that it has not yet been
checked?
MR. WHITE: No, but it hasn't been pulled out of the
air.
H.M.JR: All right.
(Mr. Luxford continues reading through Page 12, line
24. Interpolation as follows:)
169
- 4 -
H.M.HR: Somebody will have to sell that part to the
President about increased production, increased wages,
and letting business get its share - I mean, this thing of
increased wages - increased wages and increased profits
going hand in hand. I don't know any businessman who will
agree. I do know the President has been an advocate for a
long time of the annual wage, which I can freely subscribe
to. This other thing - I raise a question. I think it
would be a terrible danger signal to every businessman.
I am not going to argue, but somebody who believes in
this very enthusiastically will have to defend it. I can
cheerfully defend the annual wage. I question whether -
after all, we are trying to make votes.
MR. WHITE: I see now it is not clear that increased
wages go hand in hand with increased profit. If there is
increased productivity, unless it is passed on in the form
of increased wages, then you will not have profits. But
it is not made clear.
MR. LUXFORD: As increased productivity occurs, labor
must get its share in the benefit.
H.M.JR: That I subscribe to, but increased wages and
increased profits go hand in hand, no.
MR. WHITE: I think you agree with the idea. We
haven't stated it properly, that is all. I think we mean
the same thing.
DR. LUBIN: Mr. Secretary, I think you are thinking of
any particular corporation. If you take all of them to-
gether, increased earnings of labor means they can buy more,
which means you can get still greater economies and still
more profits.
MR. WHITE: But they can't get increased earnings
unless there is increased productivity. That is the first
essential starting point.
Regraded Unclassified
170
- 5 -
MR. COHEN: Where he says, "...the worker's hours are
cut back to peace-time levels his pay envelope will not be
smaller" - no one contends that can be done without in-
creasing prices.
MR. WHITE: You can move somewhere in that direction.
MR. COHEN: It is a rather serious thing, that sugges-
tion, at this time. We will probably have to meet that
problem within a few weeks after the Election.
MR. O'CONNELL: There will be an increase in prices
if you keep the same--
MR. COHEN: I mean, I have grave doubts whether it is
wise - that is, if we are considering on VE-Day cutting
back to a forty-hour week. I should question the wisdom
of suggesting that we give the same wage for forty hours
as they have been getting for forty-eight. It is one
thing to say that we are going to try to make some adjust-
ment in the hourly rate, but this goes pretty far.
But I don't want to interrupt--
MR. HENDERSON: His pay envelope will be larger than
it was before the war, that is one thing. But you can't
do this even with mirrors.
H.M.JR: You question this, too?
MR. HENDERSON: You can't do it. There isn't any
way, in my opinion.
MR. GASTON: As an immediate proposition, you mean,
Henderson?
MR. HENDERSON: But this says when it is cut back to
peace-time levels. There will be some industries already
going back to peace-time levels, and the pay envelopes
are already smaller.
Regraded Unclassified
171
- 6 -
MR. WHITE: The intent of the statement - and it needs
a qualifying phrase - is that the cut-back shall not bring
with it a commensurate cut-back in pay. We can say it
more carefully.
H.M.JR: One other thing. Listening to this thing
very hastily, it cuts straight across the whole of the
President's stabilization program.
MR. LUXFORD: It is a post-war program, though. We
say that after the war we are going to do these things.
MR. COHEN: But this is something that people are
immediately thinking about in connection with VE-Day.
H.M.JR: That is the point. Between VE-Day and victory
in the Pacific they use eighteen months.
MR. LUXFORD: To the extent that consumers' consumption
is increased.
H.M.JR: I thought I would be all by myself, but
enough people evidently question it here.
MR. WHITE: This is for after the war, and this parti-
cular statement needs another qualifying phrase. But the
idea that should be stressed. - and the idea, I gather, every-
body is in accord with - is that a reduction in the hours
of pay should not be accompanied by an equivalent reduction
in pay. And also, it is tied up with increased productivity.
Now, that is awfully important. If there isn't an increased
output, they don't get increased wages.
H.M.JR: Harry, I think whatever we say, it has to be
made awfully clear what period we are talking about. When
you say after the war - after all, we are going on the
assumption that the war will last eighteen months after
VE-Day. Are we talking about that eighteen months, or
about final victory?
MR. WHITE: On this it isnot made clear. Some parts
of the program I think might well be initiated after VE-Day.
Other parts of the program would have to be postponed.
Regraded Unclassified
172
- 7 -
MR. LUXFORD: Mr. Secretary, labor does want to keep
that envelope from dropping in size.
H.M.JR: Listen, what we are doing here today is try-
ing to create a speech for the President to get him votes.
MR. LUXFORD: That is all right. That is what labor
wants.
H.M.JR: Yes, but labor is part of it.
MR. LUXFORD: We have tried to address this to each
group.
H.M.JR: He is going to get that, anyway. He has to
get a lot of other votes.
MR. WHITE: Well, this is an appeal - however, go
through the rest of it. If these are the only points that
are raised they can be changed without changing the charac-
ter of the speech. If, however, that is true of many more
of the points, then it can't be.
H.M.JR: As I go along I raise my voice very timidly.
I just gave a little squeak because I thought everybody
in the room would jump on me, but they didn't, so I am
a little encouraged.
MR. LUXFORD: All right. (Continues reading through
Page 13, line 22. Interpolation as follows:)
MR. GASS: I should say that from our point of view
that page is very nearly the kind of rhetorical statement
which I believe this speech ought not to contain. A guaran-
teed annual wage doesn't mean anything unless you are talk-
ing about a guarantee of employment. You don't say anything
at all about a guarantee of employment, you merely say we
ought to recognize that as a problem. That is not a program;
you are supposed to be suggesting a program. Are you going
to guarantee employment? Are you going to make businessmen
take up the load of guaranteeing an annual wage even though
they are not employed all year? What are you going to do?
This page doesn't say.
Regraded Unclassified
173
- 8 -
MR. LUXFORD: It depends on how much good faith you
want to give the President credit for. If you are going to
read it as no good faith, why then--
MR. GASS: I am perfectly willing to give the President
credit for good faith, but when he comes before the people
with a program he is not saying, "You must believe in me
as a man of good faith,' he says, "I have a program and I
am going to go at it that way.
MR. DuBOIS: We have to read the rest of the speech.
But it shows you can have jobs for all.
MR. LUXFORD: We are offering a program for jobs
for all.
MR. GASS: I'm willing to let it pass until we get
through.
H.M.JR: It is a good point, anyway.
(Mr. Luxford continues through Page 14, line 19.
Interpolation as follows:)
H.M.JR: Just in passing, you don't say anything about
the export market which farmers are particularly interested
in. I mean, the whole South, thirteen States, are very
much interested in exports for cotton.
MR. LUXFORD: That is right.
MR. HENDERSON: They are going to vote for him, anyway.
Isn't that what you said on labor?
H.M.JR: True, prior to the end of the war.
MR. LUXFORD: That is right.
MR. LUBIN: There ought to be one paragraph on farm
housing.
Regraded Unclassified
174
- 9 -
MR. LUXFORD: I agree. We put that under the farming
program, but I think it is good to hit it here again.
(Mr. Luxford continues reading through Page 21, line
16. Interpolation as follows:)
MR. GASS: May I interrupt at this point, Lux? It
follows social security except on one point, and that is
the point about financing the program, and in terms of
financing the program, I am afraid your conclusion is wrong.
You say you have adopted the financing of the program by
not differing from it.
MR LUXFORD: No--
MR. WHITE: We argued about it and we thought we had
better leave it out.
MR. GASS: But you have your six percent payroll tax
and six percent employer contribution. The Social Security
Board has taken that six percent payroll tax and six percent
employer contribution, and a national income which corresponds
to over one hundred and fifty billion dollars and calculated
the net addition and net withdrawal of purchasing power in
194X - a year after cessation of hostilities - and then that
would result in a net withdrawal of purchasing power of a
billion and a half dollars. So by not transforming the
financing of the plan, you vitiated your last paragraph.
MR. WHITE: We have been purposely vague and are subject
to that criticism from technicians. We didn't think we would
be subject to it from the people who listened to the program.
MR. GASS: You are going to be subject to criticism
by well-informed people in Congress like Vandenberg, who
have opposed this bill from the beginning, not on the ground
of its content--
MR. WHITE: Maybe we should put a sentence in indicat-
ing--
MR. LUXFORD: We weren't hostile to it, Oscar; it was
a question of whether you put it in or not.
Regraded Unclassified
175
- 10 -
(Mr. Luxford completes reading the draft.)
H.M.JR: I would like to say on the over-all that I
like it very, very much. The only thing that bothers me
is the labor section, and I think our major omission is
the job for the returning soldier, and that is a major
omission, I believe.
MR. LUXFORD: We stress that all the way through.
MR. WHITE: You think that should be specially brought
out?
H.M.JR: Definitely. Mrs. Rosenberg did a beautiful
job at the New York Times Forum on that.
I mean, there are things in here - when you sum up
about the fifteen million jobs, and two hundred billion
national income, and the low tax on the Federal budget -
those things will have to be examined very closely to make
sure you are not subjecting the President to attack.
MR. WHITE: We didn't assume that this, Mr. Secretary,
would go forward without being subjected to that.
H.M.JR: Over-all, I like it enormously.
MR. WHITE: There are two other approaches, Mr.Secretary,
and I suggest that one of them be read, anyway.
H.M.JR: I have postponed my doctor's appointment until
five, 80 I am all right until four-thirty.
MR. WHITE: Well, having in mind that if it is agreed,
if you feel that that general approach is desirable, then,
of course, we would have to go to work and try to get an
agreement on both the figures and some of the other items.
Gass, why don't you select which of the two you want
to read first?
Regraded Unclassified
176
- 11 -
MR. GASS: I will give the Secretary a copy of that.
We prepared two versions of the statement; one is the state-
ment we would like to make and the other is a truncation of
a statement we would like to make in view of cutting all
the political corners. So I am not very much interested
in the second statement.
I think if we can read the first, if there are things
in the first you don't like, you think are politically in-
expedient, we will achieve a document like the second by
simply cutting them out of the first. There is no point
in reading them both.
This is a statement, I think, probably about two-
thirds of the length of the one that has just been read.
It is designed, if possible, to be delivered evenly in
something short of thirty minutes providing there is no
interruption for applause and that sort of thing.
H.M.JR: You mean today!
MR. GASS: I gathered the speech before the teamsters
was designed, also, for thirty minutes and took fifty-six
minutes to deliver on account of the length of the applause.
That is something one merely has to allow for in view of
the character of the audience. I presume this will be
given before a public audience where there will be ample
applause, and one has to make generous allowance.
H.M.JR: We are hoping he will be making it in Chicago.
MR. GASS: There are one or two sentences in here - we-
just went on the assumption he was going to give it in
Philadelphia, but it doesn't make any difference.
H.M.JR: Will you excuse me a moment? Gaston has
Mayor Kelly downstairs. I would like to go and meet him.
Excuse me. (The Secretary leaves the conference
temporarily)
(Mr. Gass reads attached draft entitled "An Economic
Program for a New America." Following Page 4, line 6, inter-
polation as follows:)
Regraded Unclassified
177
- 12 -
H.M.JR: Roosevelt would never say that. It is just
a phobia with him.
MR. HENDERSON: What language!
H.M.JR: He wouldn't say, "I believe in free enterprise.
I believe in the profit system." We asked him to do that
in 1940 and he said, "My God, turn on that old record again?"
MR. GASS: This is a minor theme and slightly different
song. In this song he might accept it.
H.M.JR: You leave it in, but I know he won't say it.
He goes on the assumption that his record proves he believes
in it.
(The Secretary holds a telephone conversation with
Judge Rosenman, as follows:)
Regraded Unclassified
178
October 19, 1944
3:45 p.m.
HMJr:
Hello.
Operator:
Go ahead.
Judge Sam
Rosenman:
Hello.
HMJr:
Henry, I wanted -- I want you to know this:
We -- I got some time with him today on this
speech for Saturday.
HMJr:
Yes.
R:
And I put it straight up to him about Marshall
making some statement.
HMJr:
Yes.
R:
And he said he was sure that Marshall would
turn him down.
HMJr:
Yes.
R:
And that he didn't want to ask him.
HMJr:
Oh.
R:
But I'm just telling you that but I -- I know
you'll proceed in your own way, but
....
HMJr:
No, I just sent him a note on it and
R:
Yes, but I told him without connecting it with
you -- I said, "This is going to hurt us and
if Marshall can say the fact that this is not
prolonging the war or costing us any extra lives,
it will be very helpful because they'll never
accuse him of politics."
HMJr:
Yes.
R:
He said he's sure that Marshall would not say --
and he wouldn't get in any argument with
....
HMJr:
Well, my thought -- approach was different -- was
that Marshall should give a review of what he saw
in Europe and how the war was going. If it was
going well, say so, and if it wasn't, why it wasn't
Regraded Unclassified
- 2 -
179
HMJr:
Cont'd.
going well. And not attempt to answer Dewey.
R:
Oh. Well, do you think that would be construed
as a denial of what Dewey said?
HMJr:
I think it would help an awful lot.
R:
Uh huh.
HMJr:
I think
....
R:
Well, maybe that's -- maybe that's smarter.
HMJr:
That was the way I
....
R:
Have you sent the memo over?
HMJr:
Well, I -- I gave it to Grace.
R:
Uh huh. Well, all right.
HMJr:
No, I mean not attempt to answer him, just say,
"I've been there. I visited every Division.
Here's where If -- in other words, to tell
everything that the Germans know but that we
don't know.
R:
Yep. Okay.
HMJr:
And that -- why the war's going well and why it's
going badly.
R:
Yeah.
HMJr:
Now, everybody that knows everything says it's
going badly on account of the supply situation
and I don't see why they can't explain that.
R:
Uh huh. Well, neither do I.
HMJr:
What?
R:
Neither do I.
HMJr:
I tried it out on Leahy at lunch and Leahy is
wholly in sympathy with it and said he was
willing to back me up
....
R:
Uh huh.
Regraded Unclassified
- 3 -
180
HMJr:
....
on that approach.
R:
Okay. Well, let me try it again.
HMJr:
What?
R:
Let me try it again on
....
HMJr:
What do you think on that?
R:
I think that's very different.
HMJr:
Well, that -- that's the thing -- the message
I gave to Grace.
R:
Yeah. Okay.
HMJr:
Right?
R:
All right.
HMJr:
Thank you very much.
R:
All right. Bye.
Regraded Unclassified
181
- 13 -
(Mr. Gass continues reading through Page 7, line 2.
Interpoiation as follows:)
H.M.JR: May I ask a question? How come so many
general ideas that are the same?
MR. WHITE: We borrowed what we thought was good!
We discussed them all. He sent us a copy of his.
H.M.JR: Right.
(Mr. Gass continues through line 15. Interpolation
as follows:)
MR. COHEN: Don't you want to put the bankers in a
special class like the farmers?
MR. GASS: They haven't received special cultivation
by the Treasury!
MR. COHEN: They certainly did in the early days. I
am serious. Both banking and farming received the greatest
consideration, and both groups are the least grateful.
H.M.JR: Sure, we didn't close the Bank of America.
Wasn't that special consideration?
MR. HENDERSON: That was a special consideration! The
stability of our whole economy.
H.M.JR: With all courtesy, might I say this? I get
the flavor of this, do you see? I would like to save as
much time as I can for discussion. Would you mind if I
just opened this thing up a little bit for discussion? I
get your approach. I have to stop, but I want to get the
benefit of other people.
MR. GASS: Why don't we skip the social security point
and I will read only the passages which I think are very
different from the others?
H.M.JR: Would you do that, please?
Regraded Unclassified
182
- 14 -
(Mr. Gass reads from the bottom of Page 8 through
line 8, Page 10)
MR. GASS: Then you can skip the next paragraph and
Page 11, which deals with the housing program. It is not
very different. Then we take up health and education,
which is very like the draft which has been read. It can
be skipped.
"Simultaneously with the improvement of the wealth and
welfare of our people at home, our international economic
relations must be expanded to broaden our foreign marke ts.
We must increase our opportunities for investment abroad,
and widen our mutually advantageous exchange of goods and
services with other countries.
MR. HENDERSON: That is a major omission in the first
draft, isn't it?
MR. WHITE: We had it in, but pulled it out because it
doesn't fit with the economic rights.
MR. GASS: We use it on the demand side.
We go on: "This Administration pioneered in the
direction of international economic collaboration with the
reciprocal trade program. It has taken the lead in suggest-
ing an international monetary stabilization fund and an
international bank for investment in reconstruction and
development. American capital can play a great construc-
tive role in the development of the economies of other
countries. Our greatest markets are in prosperous, indus-
trialized countries. At the same time, we must take steps
to make it possible for other countries to pay us by selling
us their goods and services."
H.M.JR: I am glad Mr. Henderson is for Bretton Woods
because evidently Luxford isn't!
MR. HENDERSON: I have probably preached more of it
than the Treasury has since Bretton Woods!
Regraded Unclassified
183
- 15 -
H.M.JR: I agree entirely with Mr. Henderson. When
I was up in Bretton Woods I was convinced that this
created jobs.
MR. GASS: We tried to slant it from that point of
view.
H.M.JR: It is right that that should be in.
MR. GASS: The next approach is the same thing, creat-
ing jobs through international demand and through modifying
the tax structure. "As soon 2€ the threat of inflation is
passed, we must release the purchasing power of consumers
and businessmen by reducing individual and corporate taxes.
The excess profits tax will be abolished, many excises
will be repealed, and the exemptions under the individual
income tax will be increased. The exemption limit of the
individual income tax must be high enough to assure adequate
purchasing power for mass consumption. No family of four
should pay any tax until its income has passed $50 per week."
The next section on "Responsibility of Government" is
quite different, I think, from the preceding draft.
(Mr. Gass continues reading through line 19, Page 14)
H.M.JR: Somebody look up whether it was the Republicans
who knocked out the appropriation for the National Planning
Board.
MR. WHITE: I am sure it was.
MR. GASS: It might fit in with this approach.
(Continuing) "Mass unemployment is the greatest denial
of opportunity, the greatest threat to democracy, and the
greatest challenge to the continuance of the private enter-
prise system. Private enterprise must first be given every
assistance in providing jobs for all our people. If however
private enterprise temporarily fails, Government must step
in and prevent a collapse which would be ruinous both to the
welfare of our people and to the continuance of the private
enterprise system. We must never again permit the mass unem-
ployment, the mass proverty, the mass loss of respectability
and the mass denial of individual freedom which characterized
the last Republican administration.
Regraded Unclassified
184
- 16
H.M.JR: I would like to stop a minute. What you
are saying here is terrifically important. Whether the
President would be willing to say that, I don't know,
but it is the same philosophy here. It is a question of
money, is the Government prepared to guarantee the loans
if industry isn't? I think they are comparable. This
takes a little digesting on my part, but at least there
is something here which is definitely new, this idea that
when it gets below fifty-five million the Government is
going to underwrite it, just the way the same philosophy
is going to underwrite farm prices, put a floor under jobs,
and put a floor under interest rates.
MR. WHITE: Put a ceiling over it.
H.M.JR: Yes, but it is the same idea. You are
putting a floor under farm prices. It can't drop to a
minimum. Interest rates can't go above a certain rate.
You might try to summarize that all into one, because
that is the philosophy which runs through here that is
so terrifically important. Whether the President will
take it to his bosom, I don't know, but I want to advocate
that at five minutes past four. I think a summation of
this thing should be put together.
MR. GASTON: Yes, right at the end.
H.M.JR: And let it stand out that this is what he
is proposing to do. That is something new in the platform.
What the other boys have done that is better than yours,
if you don't mind my saying so, is their format. They have
taken the eight principies and then enlarged them.
MR. WHITE: The two things can be melded together.
H.M.JR: I like the way they do it. That is taking
something of last January and expanding it. This is
something quite different. In that also would come this
question of international monetary creation of jobs. There
is a definite train of philosophy; if the President wants
to take that, then I think he should take it boldly and say,
"This is what I am offering." Then he is offering something
new.
Regraded Unclassified
185
- 17 -
MR. GASS: The single principie in which the thing
can be summarized is, you are assuring a volume of demand
of sufficient magnitude to employ all of your resources.
MR. LUXFORD: What worries me is the political aspect
of the thing, that Dewey will say the President is funda-
mentally offering you the WPA again. The keynote of the
speech we are trying to get out here is one of inspiration,
and one of private jobs. I think it is implicit when the
President makes the statements he is making here that he
will provide those. But can we keep it off the note of
the WPA as being the American way?
H.M.JR: I didn't say I accepted this, but at least
if you are going to do it, and you have these various
things, then I would like to sum them up into one page
and see what they look like. But I prefaced it; I haven't
yet described it. But if we don t do it, don't worry;
they have bright boys there that^will do it for us.
MR. WHITE: I think we can take care of your fears
by saying the Government steps in only when--
MR. LUXFORD: I wouldn't politically acknowiedge
that this program could fail. I don t believe he can
afford to acknowledge it.
H.M.JR: But, look, you are dealing with very, very
bright people, and when you say--there is no difference
when you say in your statement that if they won t lend
the money at a certain rate the Government will step in
and do it.
MR. LUXFORD: Not lend the money, guarantee the loan.
You are guaranteeing against the loss. That is the world
bank.
MR. WHITE: No, there is a similarity which lies in
the fact that the Government steps in to maintain a given
volume; in your case it happens to be of lending, in other
words, to create jobs. You step in to maintain, if possible,
no cut in pay. I think this can avoid the difficulty you
have of charging it to WPA, because it only comes into
Regraded Unclassified
186
- 18 -
operation when jobs drop below fifty-five million.
MR. GASS: I think the thing that needs to be
brought out, Luxford, in this context in terms of the
approach in establishing the given volume of investment is,
when you say to the great public, and even to the well-
educated public, and even to the people in this room that
you are going to insure a volume of private investment
of twenty million dollars, they don't t know what it means.
But when you say you are going to guarantee fifty-five
million jobs, they do know what it means.
MR. LUXFORD: For political reasons I don't want to
get into the WPA. We are in a period of full employment.
A job with the WPA doesn't look good to anybody today.
MR. GASS: But, Mr. Luxford, this is a job at pre-
vailing wages. It has nothing to do with WPA scales. It
doesn't have that kind of approach.
DR. LUBIN: I think you answer the weakness of your
statement in just one word, "Determined to provide public
jobs for our people." What you want to say is, "Jobs
financed by the Federal Government undertaken by private
enterprise."
MR. LUXFORD: That helps.
MR. GASS: If "Undertaken by private people" means
anything, it means at their risk and loss.
DR. LUBIN: No, the Government is going to give
orders to private business.
MR. GASS: O.K., we are going to operate through
private contractors.
DR. LUBIN: It is public jobs that means WPA.
MR. CURRIE: May I be excused, Mr. Secretary?
H.M.JR: Yes, sir.
Regraded Unclassified
187
- 19 -
MR. CURRIE: I would like to say that I liked Luxford's
draft very much; I liked that concept very much, and I
doubt very much whether the President--and it is only my
own judgment--would want to be 80 specific at this time
in terms of an actual specific program of sixty dollars
a month for everybody over sixty, and that sort of thing.
But you can take a chance on it. He need not take it if
he doesn't want it. The only substantial addition I
would suggest to Luxford's draft is on the enormous
opportunities in the foriegn field. I think that slipped
out of there some place.
DR. LUBIN: Can I take a minute of your time? I
think this foreign field thing can be developed into a
very significant aspect, namely, that you can't have peace
in the world without prosperity, and you can't have pros-
perity anywhere unless you have it here.
MR. HENDERSON: No, I think as far as the foreign
trade feature and the jobs are concerned, the emphasis
could be on the availability of that demand, and the fact
that that demand is for specific kinds of products that will
feel the impact of cancellations of war orders. You might
want to add the other, too, but I would say the assurance
directly, to be more realistic, is that the big volume of
business quickly is in the foreign field, and it is in
the heavy goods industry--
MR. GASS: What are your orders of magnitude for the
foreign field?
MR. HENDERSON: Well, FEA experts say from eight to
fourteen billion doliars. I will settle for about eight
billion.
MR. GASS: Eight billion dollars of gross exports,
not net?
MR. HENDERSON: Gross exports.
H.M.JR: Well, are you through, Leon?
Regraded Unclassified
188
- 20 -
MR. HENDERSON: Yes, on that.
H.M.JR: I am trying to think, because I haven't
talked to anybody about this. But what it really gets
down to is this, whether you want Mr. Roosevelt to say,
"Look, if we do this, and this, and this, this is going
to create fifteen billion dollars additional, and you have
to take my word for it." That is what Luxford says.
The other thing says, "We are going to do all this
thing, but if it fails below a certain number, then the
Government is going to step in and create the jobs."
MR. LUXFORD: That is it.
H.M.JR: Now, you could say both, or you could only
say one. I am not prepared this afternoon to say which.
MR. HENDERSON: I know very definitely what I would
prefer. Maybe if you could get away with it I would prefer
Luxford's idea, but I don t think you could. What people
want to know is, "If there is a delay in achieving this
new high level, what specifically do we look to?"
We can criticize Dewey, and have been criticizing
Dewey because he has not offered anything except the
vaguest of pretensions. I would like very definitely to
say--and you can phrase it as felicitously as possible--
that since this is a terrific job, as a matter of
insurance, the Government will have a program, that it
won't have to construct one and ad lib a program when the
emergency comes, if it does. And I would like to have that
said, because I am afraid it is coming.
H.M.JR: As to the latter part, we have been in that
school for a year now. We have been afraid--in the room
here--of the lack of preparation. I mean, there just
isn t any. A lot of people know that. That is why I
would like Mr. posevelt to put his teeth into this
thing and say it in a way that people will believe, that
in this interim period we are prepared to take care of
people, and there will not be five million people walking
the streets of America.
Regraded Unclassified
6
189
- 21 -
MR. WHITE: I think it would be worth while if you
could get him to say it. If he doesn't want to, he won't
say it whether he comes in or goes out. But I think it
would be a very worth-while thing. It would be a forward
step, not only in our national policy, but--
MR. LUXFORD:Have a reservoir of public works, high-
ways, Boulder Dams, and so forth, that would always be
available. People like those terms.
MR. HENDERSON: Luxford, you could make it very
definite this way by saying that due to the war demands
there has been a postponement of things which all citizens,
counties, States, and the Federal Government need. And we
will take the responsibility of seeing they are advanced
to the state at which they can readily be put into operation
for the supplying of employment. Everybody knows that.
H.M.JR: On that you can show how the State and county
debts have gone down while the Federal debts have gone up.
MR. HENDERSON: The Wall Street Journal had a very
excellent article on the position of States not so long
ago, but the important thing about the public works, as
I have looked at it, is that none of us has progressed
beyond the drafting board. And it would take quite a long
time, as everyone knows, to put a PWA program in, or one
in which there is a Federal underwriting of a State program.
MR. O'CONNELL: Leon, I don't think there will be much
chance that any of those State programs progress much
until there is definite assurance they are going to get
a certain amount of Federal aid, or they are not going to.
The Mayor of New Orleans says he has a great public works
program, but he is not going to start to produce anything
until he is sure he is going to get Federal aid, or he
is sure he isn't.
MR. WHITE: But if the President makes a statement of
that character, and he is then elected, he can go on the
assumption that that is a mandate of the people. One of
the first things he can do is prepare a program which can
go into effect at such a time--
Regraded Unclassified
7
180
- 22 -
MR. O'CONNELL: I was'only making the point that there
has to be a Federal decision with respect to the participation
the Federal Government will have. Otherwise, they will
all wait and see.
MR. WHITE: It could be a conditional one, that if
you do this when we teil you, then we will help. And we
will tell you when jobs drop below. That is an enormous
step which has been advocated for many, many years, but,
of course, we have never been able to get it as recognized
Government policy.
MR. O'CONNELL: This last Congress was unwilling to
pass legislation permitting the Federal Government to
cooperate with the State planning boards.
MR. WHITE: This might be regarded as & mandate from
the people if he is elected.
H.M.JR: Yes. As I say, I haven't had time, but the
more I think about it, the more I would like to see the
President go beyond just saying there are fifteen million
jobs. I would like him to go beyond that. I mean, that
is the way I have been leaning, because that would be some-
thing new.
MR. WHITE: There were a lot of new things in that.
MR. LUXFORD: That is the final one that is needed
to clinch it.
MR. COHEN: As I listen here today, I am still gravely
troubled whether one is trying to write a campaign speech
or trying to develop a program. I don't believe at this
time that one can do more than write a campaign speech.
I wish it were the other way. There are so many things
we haven't time to consider in detail in the program.
These programs should have been figured out before. They
require a good deal of thought. There are a lot of ideas
here. They should be worked out, but if we were just
going to consider them as a program, there would be a lot
of spade work. Some of them should be taken up by special
agencies; each one in a sense is a message or report in
itself. Those things should have been done during the past
Regraded Unclassified
8
131
- 23 -
years. Unfortunately, they haven't. If they were done,
then we would build a speech on pretty sure ground.
Because they have not been done, and because not only
hasn't the basic preparation been done, but the public
isn't prepared for it, I am so frightened without any
preparation, because one doesn't know the effect of going
all out in the last week of the campaign. We haven't
talked to the people about these things in the last long
four years. May they not try to think we are selling
them a bill of goods, that we are trying to ride them
into voting, and more particularly, those that are
attracted by the program, who, by and large, are with us.
And while I agree that there will have to be some
speeches in 8. general way which would be subject to
criticisms from our own point of view, I don't know whether
from the point of view of the campaign that much more
than that can be done, and whether it is advisable to try
to do what we think should have been done during the past
few years, have those programs prepared. We are certain
what we want, and we want to get those ideas out in the
most attractive way 80 as to say we have had some mandate.
That is, I am just troubled by the whole thing. But I
don't want to deter you, because I may be out of step. I
sympathize with the spirit, but I just don't know whether
it will serve the purpose in the campaign. I am inclined
to think the only thing that we can really move the doubtful
votes on at this time is the foreign issue.
H.M.JR: As far as your doubts are concerned, I can
see good grounds for that. As for the foreign issue, that
is, the President's power to wage war successfully, I think
they have made up their mind on that. To me the one thing
they haven't made up their minds on is jobs. That was the
whole purpose of the thing. If the people of the U. S.
are not sold on Mr. Roosevelt's foreign policy and his
power of success as Commander-in-Chief, there is nothing
we can do in the next ten days. That was my whole thinking.
It took me three weeks to get him to say yes. I don t
even know whether he is going to do it, but at least^ he
said yes as being willing to let this group do such a thing.
But it took me three weeks.
Regraded Unclassified
9
192
- 24 -
MR. WHITE: I would say that the decision as to whether
it will or will not hurt the campaign can be much better
made by the people around him than himself. it would seem
to me that it is an important function that we can play to
crystallize his ideas on this, coupled with the fact that
they are couched in sufficiently bold terms so that he,
with a few strokes, can eliminate some of the things
which he thinks are most dangerous and yet leave it a
document of prime importance, a document which could well
stand in his post-election years as a program from which
he could constantly lead off. He has no program; he hasn't
developed a program in the last four years, and I venture
a dollar to a doughnut he won't in the next four years.
The only hope we have is that if he says so before he
is elected and gets elected, then he can say he has a
mandate from the people, and maybe we can do something
with him.
Now, it is true that he is taking a chance, but he
will measure that chance 8. whole lot better than we can.
MR. DuBOIS: And politically, if he is going to make
a speech at all--your point seems to be that he shouldn't
talk--but if he is going to make one, let him be on the
offensive.
MR. LUXFORD: Ben is saying what the President is
saying, that the President hasn't a program.
H.M.JR: I am going to have to wind this up. If
you people would like to continue in White's office, I
would like to say this: I would like to take the format
which Luxford had, with some of these very excellent
points that Gaston raised, something for the soldiers,
and something on Bretton Woods, and then a summary of
the political philosophy. You people juggle the thing
so it won't look like WPA.
MR. WHITE: Couldn't we decide here without keeping
the others longer that we will try our collective hand
on & draft which synthesizes both of those, and then
present them to you, and in the preparation, whoever has
Regraded Unclassified
193
- 25 -
the responsibility can point out those dangers that you
suggest, and that would still leave enough room so you
could pick out of it some things which may appeal to him.
MR. GASS: And write on the margins, if you will,
"This may be very dangerous."
MR. LUXFORD: Oh, no, we are not politicians.
H.M.JR: This is a program, and if he doesn't like
it--I mean, he has a sixth sense which is superior to
anybody else's as to what is good politically and what
isn't. If it is dangerous, he won't take it; ir it isn't,
he will. But I would hate to go to him with a speech that
hasn't got a program.
MR. WHITE: You would like to have it, Mr. Secretary--
if only the President reads it--from the group that consists
of New Dealers. If he throws it away--maybe he will come
back to it some day--he will only file it away.
DR. LUBIN: I think we should some place try to weave
in this whole idea of prosperity and jobs with the inter-
national picture. It is another guarantee that you will
have peace; because if we are badly off, the rest of the
world is; and if they are badly off, they are not going
to have peace.
MR. WHITE: Except, you don't need any better reason
for prosperity than prosperity.
Regraded Unclassified
194
THE ECONOMIC BILL OF RIGHTS
This evening I want to talk to you about the future
which I feel is in store for the American people and to
outline to you my plans for meeting here at home the
problems of peace.
For the second time in twenty-five years America has
proved her capscity to meet the challenge of total war.
Twice in twenty-five years we have amazed the whole world -
and ourselves - with our daring conception of what America
could do when forced to war. He have astonished a grate-
ful world by the stupendous number of planes, tanks a nd
guns rolling off our assembly lines; with the bridge of
ships we have erected across the oceans; by the overwhelm-
ing force with which America has turned the scales of
battle.
Thus has America met the challenge of war - with
boldness, courage and determination. Thus has America
become the symbol - the world over - for the dynamic force
of 8. free people fighting for a free world,
But what of the peace-time problems here at home
which will follow the successful conclusion of this war?
Is America prepared to meet the challenge of these peace-
time problems as it has twice met the challenge of war?
Will we approach the problems of peace with the same bold-
ness of conception, the came courage and determination as
no have approached the problems of was?
Regraded Unclassified
195
- 2 -
In the answer to these questions lies the future of
America. To anyone who has faith in America the answer
is clear. The American people are prepared to meet the
problems of peace in the same inspiring way that they have
net the problems of war. The American people are resolved
that we shall insure that the youth of this nation will
never again be called upon to fight in another war. And
the American people are equally resolved that when our
boys return home from this war, they shall come back to
the brightest possible, the freest possible, the finest
possible place on the face of this earth - to a place where
all persons, regardless of race, color, creed or place of
birth, shall live in peace, honor and dignity, free from
want and free from fear. To do therwise would betray
the faith of every soldier, every worker, every businessman,
every farmer in this country who is doing his best for
America.
In determining the course of action we should pursue
after the war, it is well for America to pause and take
stock of her capacities. For America's capacities should
be the measure of America's future.
America's known capacities are not difficult to calcu-
late. We are now producing goods and services to the
gigantic total of $200 billion a year with 52 million
workers and 12 million soldiers. In simple language that
means that today America is producing nearly twice as
Regraded Unclassified
186
- 3 -
much as she had ever produced before the war. But an
enormous part of the goods and services we are producing
today does not find its way into the American home. No,
it represents the ships, the guns, the planes and tanks
we are using to fight this war.
But I know, and you know, that, if we can produce
a huge flow of ships and guns and planes and tanks, we
can also produce an abundance of houses and cars and
clothing and private education and recreation and the
other good things of life for all Americans.
And I know, and you know that when our boys return
home from the war and are again able to put their power
into the stream of peace-time production, America's
capacity to produce will be even greater than it is today.
Yes, much greater than today even if we remember that
some of our returning soldiers will prefer to resume their
education; that some older people will begin a retirement
delayed to participate in war work; that many women will
give up their jobs in favor of home-making. Making full
allowance for these groups, the fact remains that America
will have the capacity after the war for producing houses,
cars, clothing, education, recreation and all of the other
good things of life on a scale that staggers the imagina-
tion. That is what America can and will do if we have
the courage and vision to give her the chance.
Regraded Unclassified
197
- 4 -
Dut to accomplish this task of harnessing our full
productive capacity to American needs, it is childish to
think, as some have recently suggested, that we can depend
upon the accumulated backlog of demand for 6 million
automobiles, 3-1/2 million vacuum cleaners and 7 million
alarm clocks! why an America geared to that conception
of our future will find it is faced with millions - if not
tens of millions - of unemployed. In fact that kind of
thinking sounds to me as though our doughboys returning
from this war would have to face the prospect of peddling
alarm clocks this time instead of apples. I say to you
here and now that we cannot set our sights to a level
which we have long since passed. The same people who
set their sights too low for war are now asking the
American people to set their sights too low for prosperity.
They do not grasp the strength and the spirit of America.
Nor do any of us think for a minute that there is any
quack remedy or cure-all that can be automatically applied.
The sober facts are that genuine progress will be schieved
only through conorete plans and a real effort.
I made plain my views on this subject in January of
this year. In my message to Congress in January, I set
forth eight self-ovident economic truths. I said then
and I say now that these economic truths represented a
second Bill of Rights under which a new basis of security
and presperity can be established for all - regardless of
station, rese or creed.
Regraded Unclassified
198
- 5 .
America led the world in establishing political
democracy. It must lead the world once more in strengthening
and extending political democracy by firmly establishing
economic democracy. Let us not forget the painful lessons
of the rise of Fascism. Let us remember that political
democracy is at best insecure and unstable without economic
democracy. Fascism thrives on domestic economic insecurity
as well as on lack of or divided resistance to external
aggression. Fascism is not only an enemy from without, it
is also potentially an enemy from within.
We now must establish an Economic Bill of Rights not
only out of common decency, but also to insure the preser-
vation of our political freedoms. We must accord to this
Economic Bill of Rights the same dignity - the same stature -
in our American tradition as that we have accorded to the
original Bill of Rights.
Let us therefore affirm this Economic Bill of Rights -
and keep affirming it - until it is as familiar and real
to us as the Constitution itself. This is the Economic
Bill of Rights as embodied in my message to Congress last
January: -
The right to a useful and remunerative job in the
industries, or shops or farms or mines of the nation;
The right to earn enough to provide adequate food and
elothing and recreation;
Regraded Unclassified
199
- 6 -
$
The right of every farmer to raise and sell his
products at & return which will give him and his family 8
decent living;
The right of every businessman, large and small, to
trade in an atmosphere of freedom from unfair competition
and domination by monopolies at home or abroad;
The right of every family to a decent home;
The right to adequate medical care and the opportunity
to achieve and enjoy good health;
The right to adequate protection from the economic
fears of old age, sickness, accident and unemployment;
The right to a good education.
But the achievement of this American Economic Bill
of Rights will not come of itself. These rights will not
come to those who merely sit end wait. They will not
come through merely pious repetition. Our forefathers had
to struggle for our political Bill of Rights; we will have
to struggle for our Economic Bill of Rights. If we are
going to make those Rights a living reality we must map
out a vigorous and concerted course. We must set as our
goal the implementation and fulfillment of the 8 self-
evident truths which together constitute our Economic
Bill of Rights.
The key to making this Economic Bill of Rights a part
of the American way of life is as self-ovident as are the
rights themselves. The key is the wholehcarted recogni-
tien by all eur people of the simple fest that in America
Regraded Unclassified
200
- 7 -
the future of the American worker lies in the well-being
of American private enterprise; and the future of American
private enterprise lies in the well-being of the American
worker. To me, the greatest single thing that this war
has demonstrated on the home front is that when the
American worker and the American businessman and the
American farmer work together as one team, there are no
limits on what America can accomplish.
But to work together as 6 team, however, there must
be a common goal. In this war that goal has been he
defeat of our enemies in the shortest possible period of
time. In the peace to come the goal must be the well-
being of America - and that is synonymous with the well-
being of every American.
I want to now discuss with you my program for making
each of these economic rights a part of our way of life.
You will note this striking fact, namely, that to the
extent that private enterprise grows in strength the
Economic Bill of Rights grows in reality and to the
extent that the Economic Bill of Rights grows in reality
American private enterprise grows in strength. Thus, all
the measures which are proposed in this program for the
implementation of the Economic Bill of Rights are at the
same time designed to make American capitalism and private
enterprise work in the same great manner in peace as it has
worked in war. All of the monsures have the fundamental
201
- 8 -
purpose of increasing the demand for American goods and
services and making it possible for American business to
offer productive jobs for all Americans who wish to work.
For there is only one way in which the people of this
country can be sure of jobs for all and that is by making
it possible for them to buy all the goods which American
business and American agriculture are able to produce. And
only if we have a high standard of living corresponding to
the enormous productive capacity of America can we be sure
of plenty of jobs, good wages, economic security and a
fuller life for all.
When I enunciated this Economic Bill of Rights last
January I said that after this war is won we must be
prepared to move forward, in the implementation of these
rights, to new goals of human happiness and well-being.
I asked the Congress to explore the means of implementing
these rights and stated that from time to time I would have
more to say on the subject.
Tonight, I want to discuss this Economic Bill of
Rights with all of you. I want you all to see how the
adoption of concrete measures to implement these rights
represents the very foundation of American prosperity
in the years to come.
I
The first economic right is "the right to 1 useful
and remunerative job in the industries, or shops, or
firms 49 alsos of the antion."
aded Unclassified
202
- 9 -
To assure the full realization of this right to a
useful and remunerative job, an adequate program must
provide America with 60 million productive jobs. This
means private enterprise working at expanded capacity and
employing 15 million more workers than before the war.
With 60 million employed workers producing the goods
that our consumers and business men buy, we shall need new
facilities, new plants and new equipment. To that end we
must facilitate the establishment by private enterprise of
new industries and the expansion of old industries. with
business profits geared to jobs for all there will be an
enormous demend for machinery and equipment for old and
new industries, by firms large and small.
How this program of peace time expansion will require
large outlays of money which should be raised through
normal investment channels. But while private capital
should finance this expansion program the Government
should recognize its responsibility for sharing part of
any special or abnormal risk of loss that might be attached
to such financing. Therefore I propose that these loans
be financed through the usual financial channels and that
the Government guarantee the lender against all special
and abnormal risks. This will provide new and expanding
industry with plenty of credit at reasonable interest
rates. By this program we will merely be extending to
the financing of old and new business the principles
Regraded Unclassified
203
- 10 -
which have proved so successful in our experience with the
V Loans, T Loans and the Federal Bousing Administration
loans.
A comprehensive investment program dedicated to
expanding the peace time productive capacity of America
is the very epitome of the American way of raising our
standard of living. We build the plants for greater
production so that all of us may share in their greater
output. And the benefits of this plant expansion are not
confined to the increased output. In fact, these benefits
also include the wages paid to the labor employed in
building these plants, in constructing the machinery to
be used in the plants and in operating the plants after
they are crected. These payments as wages all contribute
to the nations buying power so that as a nation we will
have more money with which to buy the goods produced by
these expanded plants.
As a matter of fact 8. comprehensive investment program
of this character could make possible $20 billion of new
private investment each year. Why, just the job of building
these plants and the machinery for them would give America
5 million more jobs a year in expanding American productive
capacity than we had before the war. And this does not
include the workers who would be needed to operate these
plants after they are built.
mt shell, them, are going to have
Regraded Unclassified
204
- 11 -
private industry capable of hiring millions more mon. I
propose that the Government do its part in helping private
enterprise finance this expansion of our industrial plant.
It will be privately owned, privately operated and privately
financed but the Government will share with the private
investor the unusual and abnormal financial risks which
may be involved in getting started.
II
The second economic right is "the right to carn enough
to provide food and clothing and recreation."
America must remain pre-eminently the land of high
wages and efficient production. Every job in America must
provide enough for a decent living.
During the war we have been compelled to hold down
wage increases that might have provoked runaway inflation.
with all the arms and war materials we were producing,
there was only a limited amount of consumption goods
available. Increasing wages without increasing the amount
of goods available to the consumer would have been an open
invitation to inflation. By resorting to drastic price and
wage control measures, I an proud to report that America
is succeeding in holding the line against inflation.
However, the end of the war, even the end of the
war in Europe, will change this picture. Then there will
be more goods available for America to buy and it is only
ROBER to ⑉ that the working MI is paid enough
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205
- 12 -
Therefore, I propose that the American worker's wages
should be increased as soon as it is possible to increase
the production of consumers' goods. Further, I can say
that so long as I am in the White House, American labor
can be assured that there are not going to be any wage outs
that I can stop. What is even more important - I am going
to see that when the worker's hours are cut back to peace
time levels his pay envelope will not be smaller. We can
do it and I know we should do it. And I propose that
wages should be constantly increased as the productivity
of industry is increased. In an expanding American
economy there is more than enough to give business its
profits and the worker good wages. In fact - you know
and I know, that unless the worker does get his share of
America's increased production in the form of increased
wages and unless business gets its share in the form of
increased profits - neither will prosper and all will lose.
But an increase in wages is not the only benefit the
American worker should secure from increased productivity.
He should also benefit in the form of shorter hours of
work, in the form of increased leisure and opportunities
for healthful recreation. Thus increased wages and shorter
hours go hand in hand in solving prosperity the American
way.
There is one further aspect of the wage-carner's
problem that I want to touch on tonight. That is his
Regraded Unclassified
206
- 18 -
aspiration for an annual wage or guaranteed annual income
from his job. It is a terribly important part of any real
attempt to implement America's Economic Bill of Rights.
The size of the wage-aarner's pay envelope is important -
vitally important to American prosperity. But we all
know that it is equally important to know how many pay
envelopes he gets during a year. I want to see him get
a guaranteed minimum annual wage and I think the time has
: come for America to begin tackling this most difficult
problem.
Now this goal cannot be attained overnight. It
cannot be achieved in a manner to harm business. Nor
can it be achieved with the same speed in every business.
But we can start on the job of giving labor an annual
wage. We can do a lot if we all will only agree that it
is & problem business and labor must solve and if we all
approach the problem with a genuine desire to succeed.
And Government must do its part too. It must aid business
in stabilising its labor needs 80 that the burden of an
annual wage will not be uneconomical. This in my opinion
is the American way to bring about the annual wage and
I have confidence in the American way of doing things.
III
The third economic right is "the right of every
farmer to raise and sell his products at a rate which
will give him and his family a decent living."
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207
- 14 -
American farmers now have by far the largest farm
income in history. This is their due reward for the
greatest agricultural production in history. We must
assure the farmers that there will always be a market
for all their output at good prices. Concretely I propose
to maintain an adequate floor on farm prices and thereby
assure the farmer against the dangers of falling prices
for his products. Our farm program must be one of
expansion rather than ourtailment. with jobs for all at
good wages the people will buy all the increased production
our farmers will want to sell.
I propose to establish a comprehensive federal crop
insurance program which will secure the farmer against the
hazards of crop failure. We must also take steps to
raise the standard of living on the farm and in the rural
areas by a complete program of rural electrification and
improvement. In this way we can bring to the rural
communities modern facilities for decent and healthful
living.
IV
The fourth economic right is "the right of every
business man large and small to trade in an atmosphere
of freedom from unfair competition and domination by
monopolies at home and abroad."
Where this Administration is to be distinguished
most sharply from some others is in its refusal to curry
- 15 -
favor with big business or entrenched monopoly. Our
economic Bill of Rights like our political Bill of
Rights is based on freedom of enterprise - freedom of
enterprise not merely and exclusively for the few, but
broadly and inclusively for the many. The political
Bill of Rights insured the destruction of special
perogatives and privileges. The economic Bill of Rights
will insure the destruction of special economic perogatives
and privileges.
No special class of business deserves to be the spoiled
darling of government. This Administration has been mindful
from its earliest days, and will continue to be mindful,
of the problems of small business as well as large.
We must break through the barriers of monopoly end
international cartels that stand in the way of a healthy
expansion of free enterprise. Against these real enemies
of free enterprise we shall continue unremitting warfare.
We must overcome the monopolistic frame of mind which
thinks of business in terms of restricted output at high
prices per unit. We must pass on to workers and consumers
the benefits of technological progress and large scale
production. Free enterprise in the American tradition can
flourish only by doing 8 large volume of business at a small
profit per unit.
My Administration is determined to protect free
enterprise against monopolies and cartels through continued
- 16 -
vigorous enforcement of the enti-trust laws. Private
enterprise yields its full advantage to the consuming
public and to other business only when it is genuinely
free and competitive. Beware of that sinister enemy of
free enterprise who pays lip-service to competition but
also labels every anti-trust prosecution a "persecution."
Our economy has important now expanding sectors in
air transport, frequency modulation, television, synthetic
rubbers end fibers, plastics, and many other fields.
These new expanding areas in particular must be kept free
of the constricting hand of monopoly. There must be a
place in them - as everywhere in our economy - for enter-
prising small firms. It is from these new and small firms
that the great industries of the future will grow. We
need new industries, new firms to have industrial progress
and shall not permit them to be stifled by monopoly.
V
The fifth economic right is "the right of every family
to a decent home."
Concretely, I propose that we adopt a housing program
looking toward the construction through private enterprise
of 2 million housing units a year and ridding this country
of its urban and rural slums. We need to build at least
15 million new housing units if we are to eliminate all
- 17 -
our slums end sub-standard dwellings. The right to a home
is meaningless when that home is a hovel. We cannot afford
slums.
A well-housed America must have modern homes - homes
with all the latest electrical and mechanical equipment
which will eliminate the drudgery of household work. We
must be a land of homeowners, and to that end we must assure
every family an opportunity for home ownership by making
certain that there is available private credit on terms
which will reduce the down-payment and cut by one-third
the monthly cost of buying homes.
New residential construction and the modernization
of America's homes alone can provide jobs for 4 million
people a year. This is 2 million more than the maximum
amount engaged in such work prior to the war.
VI
The sixth economic right is "the right to adequate
medical care and the opportunity to achieve and enjoy
good health."
As Selective Service has revealed, too large a
proportion of our younger men now fall below reasonable
health standards. This is a warning signal to America
with respect to the state of health of all segments of
our population. This condition calls for immediate and
drastic action.
- 18 -
We cannot permit the health of our people to be
impaired by ppoverty or lack of medical and hospital
facilities. I say to you that your Federal and State
Governments have just as much responsibility for the
health of their people as they have for providing them
with education and police and fire protection. Health and
adequate medical and hospital care are not luxuries. They
are basic necessities to which all are entitled.
We must see that medical attention is available to
all the people. Adequate maternity care must be available
to every mother. But this health program must be achieved
in the American way. Every person should have the right
to go to the doctor and hospital of their own choosing.
My program calls for the Federal and State Governments to
work hand in hand in making health insurance an integral
part of our Social Security program just as old age and
unemployment benefits are today. And these health
insurance benefits must be adequate to provide private
medical and hospital care for every person in the United
States.
We need more hospitals and doctors. I propose that
we make sure that such facilities are available and that
we build hospitals in every community, rural and urban,
that does not now have such facilities for all of its
people.
- 19 -
Never again can we afford the waste of poor health
in America because of poverty or inadequate facilities.
And I say to you now that this program will prove in the
long run to be a saving to America.
We must not be content to provide medical attention
for people after they become sick. We must implement and
extend our knowledge of preventative medicine. To the
end that we shall be much better able to attack diseases
and to prevent diseases I propose that the Government
appropriate a substantial sum to finance medical research
in private and public institutions.
VII
The seventh economic right is "the right to adequate
protection from the economic fears of old age, sickness,
accident and unemployment."
We must assure people who are disabled and temporarily
unemployed that they will be taken care of adequately. We
must assure them that they will not be in want because of
loss of income during this period of compulsory unemploy-
ment. We cannot neglect these groups without incurring
serious dangers to the stability of our whole economy.
But we should be wary of those who only pay lip-
service to the principle of Social Security but have a
sorry reputation when it comes to delivering on their
promise. In 12 years of Republican Administration this,
the richest country in the world, fell far behind other
Regraded Unclassified
213
- 20 -
industrial nations in the development of Social Security
legislation. Every step in the establishment of our
social security system has been fiercely resisted by the
Republican Old Guard. Even now while advocating the
extension of social security in vague, vote-estching
terms, the Republican party evades all major concrete
steps to expand Social Security. The Republican candidate
for the Presidency, some weeks ago, made his formal
obeisance to the need for Social Security by limiting his
remarks to a few piddling generalities.
Meanwhile, for more than a year, there has languished
in Congress a carefully-drawn, comprehensive Bill to extend
the coverage and increase the benefits of Social Security.
I refer to the Wagner-Murray-Dingell Bill, introduced into
Congress by three liberal Democrats. It gives effective
universal coverage and provides benefits for old age,
unemployment, medical care and disability. Yet no prominent
Republican - in or out of Congress - has raised his voice
in support of this Bill. That in my mind is the tip-off
of what America can expect when the "chips are down."
Being introduced in wartime, when we have been
concerned about restraining consumers' demand rather than
expanding it, the Wagner-Murray-Dingell Bill will need to
be revised to suit our postwar world.
& breader program will be needed after the war. Old
age insurance should be adequate to provide all of our
Regraded Unclassified
214
- 21 -
older men and women with the means for decent living. Our
present old age benefits are definitely inadequate. I
propose that we immediately establish the principle of
giving a minimum Federal old age pension of $60 per month
to every person who has reached the age of sixty. This
minimum $60 per month pension should be available to every
man and woman over the age of 60 who makes application.
If both husband and wife are over sixty, this will mean
a monthly income of $120 per month. It should be deemed
to be a right, not a charity, a right springing from the
years of service each person delivers to the sum total of
a better America.
This social security program will, of itself, by
adding to the spendable purchasing power available to the
people and by placing a floor on consumption, add from
two to three million jobs a year.
VIII
The eighth economic right is "the right to a good
education."
We must have an educated and informed America. Even
now most of our rural areas and some of our urban areas
are peorly provided with schools. Our teachers are under-
paid. Our schools are badly understaffed. We need more
schools and at least one-half million more teachers.
Through Federal aid to poorer communities for the develop-
ment of locally controlled educational programs, we
Regraded Unclassified
215
- 22 -
propose to equalise and extend educational opportunities
throughout the land. We propose to provide facilities
for technical and higher education for all qualified
young men and women without regard to their financial
means. In This America, the pioneer of free education,
the right to technical and higher education should be as
universal as the right to 8. secondary school education.
.****.
This is the program that will bring to reality our
Economic Bill of Rights. It is & program that will
provide jobs, economic security and rising standards of
living for all Americans - regardless of race, color or
creed. Our democracy can be a living force only if it
means the good life for all the people.
The 15 million more productive jobs that this
program will bring are jobs in industry. They are jobs
based on the expanded demand for the output of our economy
for consumption and investment. And this program need
place no real burden on the Federal budget. On the contrary,
a program of this character can provide America with a
national income of $200 billion. with a national income of
this magnitude it will be possible to reduce the high war
time tax rates on personal incomes, on business profits,
and on consumption, and still collect enough tax revenues
to meet the needs of the Government, including orderly
retirement of the national dobt.
Regraded Unclassified
216
- 23 -
This, my friends, is our immediate goal, once final
victory over our enemies has been achieved.
Now there will be, I an sure, these who will say that
Regraded Unclassified
the goal which I have set for you is fantastic. These are
the persons of limited vision and blunted imagination.
These are the same persons who said I was dreaming when
I declared in 1940 that the American people would produce
50,000 planes in one year. In fact the American people
produced 125,000 planes in one year. These persons also
labelled 5
ships in one year a dream. The American
people actually produced
.
tanks was
supposedly another dream. In fact we produced
.
And these are also the same persons who scoffed at the
idea that Ameri ca could in less than 4 years build the
greatest Army, the greatest Havy and the greatest air
force in all the world. Do these Monday morning quarter-
backs have that great faith in the American people, and
in their way of life, which is required in order to
understand the meaning of Ame ica?
And yet these same great visionaries who see but
dimly into the future have excellent hindsight. Às the
great events of history march forward, while they look
back, they are at least able to recognise what has passed
them by. Only then do they shake their heads wisely and
proclaim that of course it must be so. They have seen it
with their own eyes. Thus, for example, they say, and I
quotings
- 24 -
"Of course, no need security regulation.
Of course, we need bank-deposit insurance. of
course, we need price support for agriculture.
of course, the farmers of this country cannot be
left to the hasards of a world price while they
buy their goods on an American price. Of course,
we need unemployment insurance and old age pensions
and also relief whenever there are not enough jobs.
Of course, the rights of labor to organize and
bargain collectively are fundamental."
I suppose that after this program to which my
Administration is pledged has become an accepted part of
our way of life, the battle-cry of the bindsight artists
will go something like this. They will say that of course
the right to a useful and remunerative job in the industries,
or shops or farms or mines of the nation is self-evident;
of course the right to earn enough to provide adequate
food and clothing and recreation is self-evident; of
course the right of every farmer to raise and sell his
products at a return which will give him and his family
a decent living is self-evident; and of course this and
of course that. Oh, I forgot - there is one more
"of course" that they will add. They will say, "Of
course, we could have done it better."
.....
I am confident, however, that the great majority
of the American people share the same great faith in
Reg Uncla ssified
218
- 25 -
America and in the American way of doing things which
I have expressed tonight. We know our way and the road
ahead is straight and broad although there are many
hills which we must climb. The program which I have set
forth is only the first milestone, for the capacity of
the American way of life in the years to come is beyond
the vision of man. The American system of free enterprise
is the best the world has ever known and through it we
can obtain, God willing, the best that this world has to
offer.
Jass 16/19/44 Draft- 219
ECONOMIC PROGRAM FOR POST-WAR AMERICA
or
A
PROGRAN FOR MORE JOBS
My fellow Americans:
We are approaching another great turning point in our
national life.
Record and Prospect
In 1933, when my Administration took over responsibility
for the executive branch of our Government, we stood at one great
time of decision. Most of our economic resources were running to
waste. Our industrial workers were unemployed, our plants idle,
our farmers in distress, our monetary and banking system in ruins.
In eight years of peace, we increased our employment by
12 million workers. We tripled our farm income. We converted a
corporate loss of $3.6 billion in 1932 to a corporate profit (after
taxes) of $5.8 billion in 1940. We re-established the dollar as
the strongest, most sought-after, currency in the world.
We had not by 1940 and we have not yet -- solved all
our domestic economic problems. Yet, in contrast with the demoral-
izing years of the Hoover depression, in those eight years of peace
and reconstruction, our people found renewed grounds for a reasoned
faith in the promise of American life.
4b
.
.
Then came the war. It confronted us with another series
of hard decisions -- military, diplomatic, and economic. It put
an end, for the duration, to the possibility of a major further 1m-
provement in our standard of living. It revealed a productivity
that is the marvel of the world. At the peak of our war production,
we have produced nearly as great a supply of munitions as has been
Unclassified
2.
220
produced by all the other countries of the world added together.
Those men of little faith, who -- like the Republican
candidate for the Presidency proclaimed glibly that we could not
produce 50,000 planes a year, have been reduced to silence by the
demonstration that we could produce 100,000. while assigning 12
million of our most productive men to the armed forces, we have
raised our total production to a peak fully two-thirds higher than
in our best peace year, 1940. This means two-thirds more in terms
of real things -- food and clothing and housing, as well as guns,
ships, planes and tanks. The home front has worked long hours,
faithfully, with skill and ingenuity, to accomplish this production
record.
This great productivity is the challenge and promise of
a renewed and strengthened post-war America. It is the challenge
of jobs and the promise of abundance when those Jobs are provided.
I know and you know that, if we can produce a huge flow
of ships and guns and planes and tanks, we can also produce an
abundance of houses and cars and clothing and education and enter-
tainment and all the other good things of life.
At the present time we have nearly 12 million men and
women in the armed forces and 51 million of our people in civilian
employment. Some of our returning soldiers will prefer to resume
their education; some older people will begin a retirement delayed
to participate in war work; many women will give up their jobs in
favor of home-making. Yet, when allowance has been made for all
these changes, when the war in the Far East is over and demobiliza-
tion is completed, perhaps 57 million of our people will want to
hold jobs. There must be Jobs available for all of them.
At the present time, when we are working long hours, we
have pushed our National Income up to an annual rate of about $160
billion. Our working hours may average 18 or 20 percent lower in
Regraded Unclassified
3.
221
the years of peace, yet -- with full employment and a stable price
level -- we will be able to produce a National Income of about
8150 billion. This means, with 57 million jobs, an average produc-
tion of over $2600 of goods and services per worker.
Fifty-seven million jobs, a National Income of $150 bil-
lion, an average income of about $2600 per worker -- these are the
targets for American business, labor and government in the immediate
post-war years! They mean a growing, buoyant America, a creative
democracy, employing all its people and in condition to bear its
part in the family of nations.
The American people -- and its elected representatives --
can draw both pride and confidence from the accomplishments of the
last twelve years. We have met the problems of depression; we are
surmounting the trials of war; we have taken firm steps in the
direction of permanent peace. It may well be, however, that --
rather than on these accomplishments -- posterity will finally judge
us most in terms of whether we had the understanding and the
determination to meet our greatest challenge -- the provision of
jobs.
We must not be found wanting in the face of this challenge.
Opportunity for Free Enterprise
I am proud to speak here tonight under the auspices of
Business Men for Roosevelt, Inc. I believe in free enterprise. I
believe in the profit system. I believe in exceptional rewards for
daring innovation, skill and risk-taking. I am convinced that --
given appropriate policies on the part of business, labor and govern-
ment -- we can normally give full employment to our people, in
private enterprises. I believe, therefore, that government policies
should be designed to encourage the maximum employment of our work-
OTS by private business. The post-war era must witness the greatest
peace-time business expansion in our national history. Our produe-
tive\power
make
expension
Regraded Unclassified
4.
222
sit by idly -- as in the days of the Hoover depression -- and allow
our resources to go unused.
Private business gives Jobs when there is adequate market
demand, at a profit which justifies necessary business risks. Far
larger markets than any we have ever had before in peace-time are
necessary if private business is to give jobs to all our people.
Mass production cannot continue for long without mass consumption.
If we are to produce a National Income of $150 billion, our con-
sumers and businessmen must buy 8150 billion of goods and services
-- food and clothing and houses and cars and plants and equipment.
For a time, if we are willing to invest abroad, we can have markets
without consuming or investing at home, but as the income from these
foreign investments increases, we must correspondingly expand pur-
chases by our own consumers and businessmen. The consumers and
businessmen of America constitute our ultimate market.
A great deal of nonsense has been spoken about the
attitude of my Administration towards profits. We inherited a
regime of staggering business losses. Every American who is old
enough and honest enough to recall the true facts cannot forget
those black days of Republican Administration. He cannot forget
the thousands upon thousands of well-run businesses which went into
bankruptcy because there wasn't a market for their products. In
1931 corporate business suffered a loss of $1.6 billion, in 1932 a
loss of $3.6 billion. By 1934 we had pulled business out of the
red, and from then on profits expanded until in 1940 -- the year
before our entry into the war -- corporate business showed a profit,
after taxes, of $5.8 billion. In the year 1943, corporate business
made a profit, after taxes, of $8.9 billion. In each of the past
three years corporate business has made far greater profits, after
taxes, than in any other years of our national history. Does that
look like the record of an administration determined to eliminate
reasonable profits?
Regraded Unclassified
5.
223
I say to American business that, if we rise to the oppor-
tunity of creating an economy of abundance, the greatest years of
private business profits lie ahead of us. As soon as the burden of
financing the war has been lifted, and the danger of inflation has
passed, we shall abolish the excess profits tax. We shall give more
generous exemptions from the individual income tax. We shall remove
the special war-time excises on consumers' durable goods, on enter-
tainment, on transportation and communication. These goods and
services are luxuries in war-time, but they must be things of mass
consumption in post-war America. We shall lift all production and
price controls, encouraging private business to produce more of
the things to which we are accustomed, and thousands of new products,
in ever-increasing volume, under conditions of free and open com-
petition. We must strive for a small margin of profit on each
dollar of sales but a large profit in the aggregate.
Where this Administration is to bedistinguished most
sharply from some others is in its refusal to curry favor with big
business or entrenched monopoly. No special class of business de-
serves to be the spoiled darling of government. This Administra-
tion has been mindful from its earliest days, and will continue to
be mindful, of the problems of small business as well as large.
We shall be vigilant to assure that small business 18 given every
facility to buy government-owned plants, equipment and inventories.
The special credit and capital requirements of small business will
be met. In an expanding economy, there will be room for thousands
of additional small firms both in the supply of older products and
in developing new products. Our economy has major new expanding
sectors in air transport, frequency modulation, television, syn-
thetie rubbers and fibers, plastics, and many other fields. These
new expanding areas must be kept free of the constricting hand of
monopoly. There must be a place in them -- as everywhere in our
memory - for enterprising small firms.
Regraded Unclassified
6. 224
My Administration is determined to protect free enter-
prise against monopolies and cartels, through continued vigorous
enforcement of the anti-trust laws. Private enterprise yields its
full advantage to the consuming public and to other business only
when it is genuinely free and competitive. Beware of that profound
enemy of the private enterprise system who pays lip-service to 00m-
petition but also labels every anti-trust prosecution a "persecution".
One class of business has, perhaps, received special at-
tention from this Administration, in compensation for the long
years of neglect which it suffered when the Republican Party was
in power. That is the business of farming. or all our economic
achievements, I take perhaps the greatest pride in what we have
done in these past twelve years to give the farmer his equal share
in the progress of the American economy. Through liberalization
of farm credit, rural electrification, soil conservation and farm
price support, new vigor was breathed into our farms so that they
are now able to play their great part in feeding the United
Nations. From 1932 to 1939, net farm income after all expenses
-- approximately tripled; from 1939 to 1943 it approximately
tripled again.
The farmers of the United States have been asked to under-
take an unprecedented expansion of their production to meet war
needs. They must be protected in the transition to peace-time
quantities and types of output. Their immediate protection lies
in vigilant government measures of price support. I propose to re-
quest the Congress to appropriate the funds necessary for such
price support. The permanent protection of our farmers, however,
can be achieved only through the prosperity of the four-fifths of
our people who live in cities.
Regraded Unclassified
7.
225
Assurance of Markets
Every farmer and businessman and worker knows that the
impoverishment of the American people is not in the interest of
good business. Private business can provide Jobs only when there
is adequate demand for the goods and services which business pro-
duces. Our people must have the buying power to absorb the vast
production which our industries will be able to make available
after the war. To can maintain a National Income of $150 billion
continuously only if the masses of our people have the means to
consume the tremendous output represented by such a level of in-
come.
To assure sufficient markets for all that we can produce,
all wages must rise from year to year, as productivity increases;
there must be no stragglers in the general march of national 000-
nomic progress. There must be no return to sub-standard wages as
the load of war work eases.
To prevent the return to sub-standard wages, I propose
to request the Congress to increase the minimum wage required by
the Wages and Hours Act immediately to 60 cents an hour. Sixty
cents an hour means only $24 for a 40 hour week, only $1250 for a
full working year. This is surely little enough for an economy
which can produce over $2600 of goods and services per worker each
year. If we are to avoid idle plants, collapsing farm prices, and
unemployed workers, we cannot afford to give any of our workers
less than 60 cente an hour.
Minimum wages must not be used to depress higher wages.
Every sensible employer knows that more productive workers must re-
ceive higher wages, in proportion to their productivity. In the
interest of good business, as well as in fairness to labor, we
must all be vigilant to assure that the increase of wages does not
lag behind rising productivity.
Regraded Unclassified
8.
226
Good wages, good farm prices, and reasonable profits
must be the main foundations of our national prosperity. There
are, however, other groups in our community who cannot be provided
for by the normal wage and market mechanisms. These are the aged,
the sick, the disabled and the temporarily unemployed. We cannot
leave these groups "out in the cold" without grave moral injustice
and without incurring serious dangers to the stability of our
whole economy. For these groups, modern society has devised Social
Security.
In twelve years of Republican Administration, this coun-
try fell far behind other industrial nations in the development of
Social Security legislation. Every step in the establishment of
our present Social Security system has been fiercely resisted by
the Republican 01d Guard. Even now, while advocating the exten-
sion of Social Security in vague, vote-catching terms, the
Republican Party resists all major steps to expand Social Security.
The Republican candidate for the Presidency, some weeks ago, made
his formal bow to the need for Social Security but limited his
remarks to a few piddling generalities.
Meanwhile, for more than a year, there has languished in
Congress a carefully-drawn, comprehensive Bill to extend the cover-
age and increase the benefits of Social Security. I refer to the
Wagner-Murray-Dingell Bill, introduced into Congress by three
liberal Democrate. It gives effective universal coverage, and pro-
vides benefits for old age, unemployment, medical care and die-
ability. No prominent Republican -- in or out of Congress -- has
raised his voice in support of this Bill.
Being introduced in war-time, when we have been concerned
about restraining consumers' demand rather than expanding it, the
Wagner-Murray-Dingel1 Bill is based on methods of financing which
will need to be modified to suit our post-war world. If we are to
have adequate consumers' demand, as we extend our social security,
we must shift its financing away from payroll taxes. We will need
the payrolls of our workers in the market for consumers goods and
Regraded Unclassified
9.
227
services. Moreover the payroll tax on employers imposes an unfair
burden on the employer in whose total costs wages bulk dispropor-
tionately large. Social Security revenues should be raised in
accordance with the progressive primciple of ability to pay.
In one other respect also, we must go beyond the Wagner-
Murray-Dingell proposals. Their bill provides old age benefits
ranging from $20 to $120 per month, depending on amount of con-
tribution. $20 a month is not enough. 01d age insurance should
be adequate to provide each of our older men and women with the
means to acquire comfortable houses, adequate food and clothing,
medical care and other necessities. $20 a month is not adequate
for these purposes. I propose to request the Congress, immediately
after the end of hostilities in Europe, to enact legislation giving
a minimum Federal old age pension of $50 per week to every person
who has reached the age of sixty and does not wish to hold a job.
The America of abundance can afford to provide decently for its old
people.
One of the greatest markets for business and one of the
greatest sources of employment, in the post-war period, should be
in the construction and equipment of new housing. We need to
build at least 15 million new housing units in the next 10 years,
if we are to eliminate all our slums and sub-standard dwellings.
The construction of one and a half million housing units each year
will provide over two million jobs.
As much housing as possible should be built by private
initiative. Government can facilitate private building operations
by reducing still further the cost of financing home buying. By
a reduction in mortgage interest rates and a moderate increase in
the period of amortization, the monthly cost of buying a home can
be reduced at least one-quarter. This reduction in costs means
more markets and more jobs.
The elimination of slums must be made a first principle
Regraded Unclassified
10. 228
of our national economic policy. with our great productive capacity,
we cannot afford to have slums. If, even with continued jobs and
higher minimum wages, some groups are not able to pay for a desir-
able minimum standard of housing, Government must subsidize a
minimum housing standard. Construction and equipment can, in any
case, be handled by private business. Government must do the things
that private business cannot do.
Two things that Government must do, on a scale never at-
tempted before, are provide education and medical facilities. As
selective service revealed, two-fifths of our younger men now fall
below reasonable minimum standards of education or health. This
must never happen again. Our rural areas, in particular, are poor-
ly provided with schools. Our teachers are badly underpaid. Many
gifted children fail to be educated to the extent of their talents
merely because they happened to be born into needy families. This
is a denial of the first principle of democracy -- an equal start
in life for every citizen. It is a denial, also, to the whole
nation, of the value which could be derived from latent, uncul-
tivated talents.
I propose to ask Congress to establish a comprehensive
system of Federal aid to needy school districts and federally
financed scholarships for deserving pupils. Only so can we make a
liberal education available to all our people, without distinction
of wealth.
The broadening of our Social Security System will pro-
vide individuals with funds to procure medical services. There
is a great shortage, however, of medical facilities -- of medical
schools and, still more, of hospitals. A hospital is not a busi-
ness institution. It is a public welfare institution, even if
founded under private auspices. We need thousands of new hospitals.
We particularly need modern, well-equipped hospitals in small towns
and rural districts. The national Government must see to it that
dical facilities are established, with Federal funds if no
Regraded Unclassified
11.
229
other funds are available.
Simultaneously with the improvement of the wealth and
welfare of our people at home, our international economic relations
must be expanded to broaden our foreign markets. We must increase
our opportunities for investment abroad, and widen our mutually
advantageous exchange of goods and services with other countries.
This Administration has pioneered in the direction of
international economic collaboration with the reciprocal trade
program. It has taken the lead in suggesting an international
monetary stabilization fund and an international bank for invest-
ment in reconstruction and development. American capital can play
a great constructive role in the development of the economies of
other countries. Our greatest export markets are in prosperous,
industrialized countries. At the same time, we must take steps to
make it possible for other countries to pay us by selling us their
goods and services.
AS soon as the threat of inflation is passed, we must
release the purchasing power of consumers and businessmen by re-
ducing individual and corporate taxes. The excess profits tax will
be abolished, many excises will be repealed, and the exemptions
under the individual income tax will be increased. The exemption
limit of the individual income tax must be high enough to assure
adequate purchasing power for made consumption. No family of four
should pay any tax until its income has passed $50 per week.
Responsibility of Government
If we do these bold things to assist private enterprise
and to assure a sufficient volume of market demand, we shall be
able to achieve a National Income of $150 billion and 57 million
jobs. That is our goal. We favor private employment over Govern-
ment employment. Therefore I an recommending to the American
18.
230
people the above, rounded program for expanding private consumers'
and businessmen's demands so as to provide jobs in private busi-
ness for all who want jobs.
We prefer private employment. Yet we also prefer Govern-
ment employment to mass unemployment. Consequently Government,
under my Administration, is determined to provide public jobs for
our people whenever and wherever private business does not do so.
We set a target of 57 million jobs. Some fluctuations
in employment are inevitable in a competitive system. For these
minor fluctuations, we provide unemployment insurance. But should
the total number of jobs available in private business and normal
Government activities decline to 55 million, Government must under-
take to provide enough special jobs to keep the total from falling
significantly below that figure. These jobs must not compete with
private business. They should consist of valuable public works, to
be undertaken whenever the jobs provided by private business falls
to the danger-point. The knowledge that Government stands ready to
provide these jobs will act as an immense stabilizing force on the
whole economy. It will prevent the emergence of any cumulative
panio among business whenever -- as inevitably occurs, from time to
time, in a competitive society -- some large area of business suf-
fers major losses. On such Government jobs as are provided, work-
ers will be paid prevailing wages and will be required to work as
efficiently as in private industry.
Mass unemployment 18 the greatest denial of opportunity,
the greatest threat to democracy, and the greatest challenge to
the continuance of the private enterprise system. Private enter-
prise must first be given every assistance in providing jobs for
all our people. If however private enterprise temporarily fails,
Government must step in and prevent a collapse which would be
ruinous both to the welfare of our people and to the continuance
of the private enterprise system. We must never again permit the
mass unemployment, the mass poverty, the MASS loss of respectability
and the wass denial of individual freedom which characterized the
lan Republican administration.
Regraded
Unclassified
13.
231
The strengthened and renewed America, towards which all
our efforts are bent, must offer the good things of life to all its
people, without distinction of race, national origin, or religion.
Racial, national and religious prejudices grow in the dank, thwart-
ed atmosphere of economic insecurity. Many such prejudices will
die when exposed to the sun of assured jobs.
I am proud of the work that has been done by my Adminis-
tration to prevent the denial of jobs on the grounds of race,
national origin, or religion. We have done much to protect our-
selves against the backwash of prejudice coming, in large part,
from the enemy we are defeating on the battlefield.
We must do more. The powers now wielded by the Fair En-
ployment Practices Committee need to be strengthened. I propose
to request the Congress to transform the Committee into an adminis-
trative board, with the right to call upon the courts to impose
fines and criminal penalties upon violators of fair employment
practices. Te need to ge beyond a Platonic, vote-catching expres-
sion of sympathy with racial, national, and religious minorities.
We need to are our Government with powers to protect those minorities,
so that they will not be excluded from the good things of American
life.
If we have the vision, courage, and democratic good-will
to adopt these policies, we can go forward into the post-war years
with confidence. Such an America will have plenty of jobs. It will
be jealous of the public interest but tolerant of individual, group,
local and regional differences. It will be an America of equal
opportunity and special rewards for special achievements. It will
be a strengthened and renewed America. We will have succeeded in
re-stating the traditional American aspirations in terms of the
needs of the twentieth century.
Regraded Unclassified
232
October 19, 1944
Admiral Leahy said at lunch today, "You will
never get your program through on Germany, and you
know I was opposed to it at Quebec."
My comment is that I didn't know this and it
is very interesting.
Regraded Unclassified
Rush233
TO:
Secretary Morgenthan
Here's a sough first
draft of the proposed fourt
state ment on Germany
that Iment cored to you
this morning.
ose
Oct 19,1944
Oscar Cox
0-2358
1st
L
234
Draft - October 19, 1944
The Secretary of War, the Secretary of State, the Secretary
of the Treasury and the Foreign Economic Administrator announced
thats
1. Mr. Dewey's statement about the lack of plans for the
is
occupation of Germany are inaccurate.
2. Beginning about a year ago plans were started in the
American Government to work out a joint and unified policy by the
War Department, Navy Department, State, Treasury, Foreign Economic
Administration and the other interested departments and agencies.
3. Contrary to popular speculation, the basic plans to
be used immediately after the occupation of Germany were worked out
and unanimously agreed upon by all the interested agencies of the
United States Government months before any American soldiers set foot
in Germany. All of the pre-surrender terms and the directives to be
used by the American military were worked out in concrete form even
before this.
4. The proclamation issued by General Eisenhower as Allied
Commander was based on the agreed pre-surrender plans and on the
other plans for the occupation of Germany as were his orders for
the abolition of the Nasi racial, sterilisation, concentration camp
and other similar Nazi laws and institutions.
5. The detailed plans for the unconditional surrender of
Germany have been worked out not only in the American Government
but with our Allies.
Regraded Unclassified
235
-2-
6. The long range plans dealing with what should be done
over a period of years to control Germany's will, power and capacity
to make war have been worked on for a long time in the American and
in the Allied governments but no final decisions can obviously be
made on all phases of this problem until the relevant facts are
known about what the conditions are in Germany after it is completely
defeated.
7. If the Germans senselessly continue their resistance,
in view of the certainty of victory, they will invite increased de-
struction of their industries and their economic system by Allied
bombers and Allied land forces. A good part of Germany's industrial
and economic system has already been destroyed or damaged by the
Allied air forces. The destruction from bombing raids continues to
mount. Now with land fighting on German soil, the Germans, as
illustrated at Aachen, are inviting further and more devastating
destruction by United Nations artillery and other land force action.
If, in addition to this destruction which the Germans are bringing
on themselves, they wantonly follow & scorched earth policy, the
destruction of the German industrial and economic system will be
even greater and more complete.
When we and our Allies know with definiteness how much
the Germans have destroyed their own industrial and economic system
we will know better what to do about it.
236
8. One central thing is clear. We do not intend to destroy
or enslave the German people; but we do mean effectively to control
their will, power and capacity to make war again,
9. Based on this central principle, the available facts
and the alternative possibilities depending upon the length of the
war against Germany and what the Germans do to destroy their in-
dustrial and economic system, work on the long range plans both
in the United States Government and the Allied Governments is
moving along as speedily as possible,
Regraded Unclassified
Mrs. FDR ON "MORGENTHAU PLAN
BUFFALO.==NRS. FRANKLIN D. ROOSEVELT TOLD A PRESS CONFERENCE THAT
CONTROVERSY over THE SO-CALLED MORGENTHAU PLAN FOR POST-WAR DESTRUCTION
OF GERMAN INDUSTRY "AMUSED ME, INASMUCK AS THERE IS NO SUCH PLAN."
THE PRESIDENT'S WIFE DECLARED SHE HAD BEEN UNABLE TO FIND ANYONE,
"INCLUDING MR. MORGENTHAU WHO CAN TELL ME ANYTHING ABOUT IT."
"AS FAR AS I CAN SEE, THE SO-CALLED PLAN IS JUST A SERIES OF
MEMORANDA FOR DISCUSSION," SHE SAID. "THERE IS NO SUCH THING AS A
MORGENTHAU PLAN."
AS TO THE TERMS OF SURRENDER TO BE IMPOSED ON GERMANY, MRS.
ROOSEVELT SAID SHE DID NOT FEEL QUALIFIED TO SPEAK AND "THE PROBLEM
SHOULD BE LEFT TO RESPONSIBLE PERSONS TO DECIDE."
10/19-31256P
238
October 19, 1944.
Dear Mr. Nicholson:
I read with appreciation your editorial of
September 26 entitled "A Hard Peace."
As you perhaps know, I have not made any
public statement of my views on the question of
the treatment to be accorded Germany, but naturally
I have followed the newspaper discussion with a
great deal of interest.
I think the discussion in editorial columns
generally has been, like that in The Times Picayune,
on a high plane of sincerity and devotion to the
public interest.
It is my hope that the leading American news-
papers will continue to scrutinize critically all
proposals with respect to treatment of the enemy
from the standpoint of whether they will or will
not contribute to lasting peace.
This is intended only as a personal communica-
be interested in the subject.
tion for you and any members of your staff who may
Sincerely,
(Signed) M. Mergenthau, Jr.
Secretary of the Treasury.
Mr. L. K. Nicholson
President, Times Picayune Publishers
New Orleans, Louisiana
HEG/mah
Regraded Unclassified
NEW ORLEANS TIMES-PICAYUNE - September 26, 1944
A 'Hard' Peace
Germany from again utuizing its industring
Differences in the president's cabinet cons
plants and technical talents either to make
mittee on postwar Germany go right to the
weapons or to keep a large part or Central
core of the long-term German problem. To
Europe in a relative state of poverty. But
the major aim, which is that of rendering
just how controls would be applied has not
Germany incapable or indisposed to make
been indicated by anybody among the Allied
war within the foreseeable future. no mem-
peace planners. Presumably they would de-
ber of the committee interposes any dissent.
pend for their effectiveness upon the co-
What brings Secretary Morgenthau into
operation of neighboring countries in the
conflict with Secretary Hull and Secretary
matter of tariff laws, import quotas and
Stimson, the other two members of the com-
currency matters: and possibly Mr. Morgen-
mittee, is the method to be chosen for
thau fears that the program would not long
shackling the German war potential.
stand up under German pressure for its re-
The search is for the simplest workable
laxation. He would rely rather, on the radi-
plan. though any program to redirect the
cal reorganization within, Germany.
thinking and traditional aims of a nation of
The public is hardly in position to have
some 90,000,000 people cannot be very sim-
an opinion on the Hull-Stimson views as op-
ple. The Morgenthau "ruthless" reorganiza-
posed to those of the secretary of treasury
tion would undoubtedly prove efficacious for
until it is told exactly what the majority
a long time to come. For a nation that had
proposes and how it is planned to keep the
to give up most of its Industrial machinery,
Germans from worming out of the obliga-
close most of its mines, and convert from
tions imposed by the peace as they evaded
a modern industrial to an agricultural econ-
the conditions of the Versailles treaty. Con-
omy would be in no position to think about
celvably any program agreed to by the cab-
making war. But to divert the economy of
inet committee may be largely the plan that
a country the size of Germany from its nat-
is finally put into effect. For London ap-
ural course and reorganize it down to its
parently is not predisposed to any particu-
very roots would be a vast and complicated
lar plan and Moscow's main interest seems
undertaking involving the application of
to center in building up friendly neighbors,
force within Germany much longer than
obtaining German labor battalions for re-
some nations would like.
construction work, and developing Russian
Secretary Hull and Secretary Stimson evi-
industry. Any report the committee makes,
dently prefer a program a good deal less
therefore, will have a global interest. The
radical than that called for in breaking up
peace will have to be a "hard" one In order
land holdings into small farms and reset-
to effect its aim of allaying the German
tling the German factory population on
warmaking propensities. It won't be an easy
them. They have recognized that industrial
one for the Allies, either, if they have to go
and trade controls will be necessary to keep
as far as Mr. Morgenthau thinks they will
to uproot the Nazi power for making war.
Regraded Unclassified
240
October 19, 1944.
Dear Mr. Wiley:
I have read with appreciation your editorial
of September 26 entitled "Conversion of Germany."
As you perhaps know, I have not made any public
statement of my views on the question of the treat-
ment to be accorded Germany, but naturally I have
followed the discussion in the newspapers with a
great deal of interest.
I think the editorial discussion generally has
been on a high plane, which reflects great credit
on the American press as an instrument of Democratic
government.
It is my hope that the leading American news-
papers will continue to scrutinize critically all
proposals with respect to the treatment to be accorded
to the enemy from the standpoint of whether they will
or will not contribute to lasting peace.
I hope you will regard this letter only as a
personal expression of appreciation for your eye and
any of your staff who may happen to be interested.
Sincerely,
(Wigned) II. Mergenthau, Jr.
Secretary of the Treasury.
Mr. W. F. Wiley
Editor and Publisher
Cincinnati Enquirer
Cincinnati, Ohio
HEG/mah
Regraded Unclassified
CINCINNATI ENQUIRER - September 26, 1944
Conversion Of Germany.
While we wish to take NO defi-
nite stand on the matter until
fuller details are available, still we
must admit that Maj. George
Fielding Eliot made a strong case
on Monday for Secretary Morgen-
thau's proposal for converting Ger-
many from an industrial into an
agricultural state. The Major
pointed out that German industry
has been the cornerstone for her
wars of aggression; that the Nazis
used these Industries to turn out
inhuman and destructive weapons
which served no real military pur-
pose, but which exacted a tre-
mendous toll in civilian life and
property. Such a people, he in-
sisted, cannot be trusted.
The Germans have had a bril-
liant industrial record. Their in-
ventors and their technicians have
contributed much to the progress
of civilization. But we wonder
whether or not much of that con-
tribution has not been obliterated
by their record of destruction; we
wonder if, in the last analysis, the
world might not have been bet-
ter off without German industrial
genius than It has been with it.
It should be remembered that
the Germans are excellent agricul-
turists and that agriculture can
contribute to world happiness just
as certainly as industry. This is
particularly true in Europe, where
large food imports have been nec-
essary for these many years.
As we have said, we take no
stand on this matter, but we do
feel that these are points which
should be seriously studied. The
"de-industrialization" of Germany
would be, indeed, a drastic and
far-reaching act. But the thought
of another slaughter, forged and
welded in those same mistrial
plants, is rrught with horror and
terror.
Regraded Unclassified
242 r
OCT 19 1944
My dear Lord Keynes:
As you requested, I am returning
the War Cabinet Paper which you were
kind enough to send me. We have examined
this report with interest.
Sincerely yours,
(Migned) H. Mergenthan, JR.
Secretary of the Treasury.
The Right Honorable Lord Keynes,,
United Kingdom Treasury Delegation,
Box 680,
Benjamin Franklin Station,
Washington, D. C.
Enclosure
FILE COPY
Regraded Unclassified
243
OCT 11 1944
Dear Lord
Thank you very such for your letter of October be 1944
enclosing the las Cabinet Subsomittee report on the -
habilitation of the South-Hast coast toma. I shall give
the report careful attention - one specimen of the domestic
problems your country faces in the post-mar period. I an
sure BOMB of my colleagues will likewise be glad to examine
the material,
The document and its contents will be hold in strict
confidence and will be returned to you in due course.
Sincerely yours,
(Signed) M. Mergenthan, JR.
Secretary of the Treasury.
the Might Honorable Land Keynes,
United Kingdom Treasury Delegation,
Box 680,
Benjamin Franklin Station,
Reshington, D.C.
mon 20/12/16
Regraded Unclassified
ack. 244
UNITED KINGDOM TREASURY DELEGATION
BOX 680
BENJAMIN FRANKLIN STATION
WASHINGTON, D. C.
FERENCE:
TELEPHONE EXECUTIVE 2020
6th October 1944.
Dear Mr.Secretary,
It is sometimes the case that material for our own
internal purposes gives a more vivid insight into our difficulties
than material especially prepared for use here. I venture, therefore,
to enclose a War Cabinet Paper which has just reached me, in case you
may care to glance at it. It deals with the state of our south-east
coast towns, which comprise altogether a population of several millions
As mentioned in the Paper, the present position can only be described
as the abomination of desolation. If you can find time to glance at
this Paper you will see in a few minutes a specimen of the domestic
problems we have, apart from our external tasks.
I should be grateful if you would let me have this back
in due course, as strictly speaking I ought not to let it out of my
hands, but, of course, please feel free to show it to any of your
colleagues who might be interested.
Sincerely yours,
keyns
The Hon.Henry Morgenthau, Jr.
Regraded Unclassified
245
October 19, 1944
My dear Lord Keynes:
Thank you very much for the book of charts
which was prepared for the Prime Minister,
and which you sent me on October 5th. I am
now returning this for your files.
Sincerely yours,
(Signed) M. Morgenthau, Jr.
Lord John Maynard Keynes,
United Kingdom Treasury Delegation,
Willard Hotel,
Washington, D.C.
T6 246
UNITED KINGDOM TREASURY DELEGATION
/ white
BOX 680
BENJAMIN FRANKLIN STATION
WASHINGTON, D. C.
PERENCE:
TELEPHONE EXECUTIVE 2020
5th October 1944.
Dear Mr.Secretary,
It occurs to us that you might like to see a book of
charts which we have before you go away and before we are in a
position to deliver to you our main literature: This book was
prepared for the Prime Minister about a month ago before he went
to Quebec. He is, as perhaps you know, very partial to this
method of presentation. I do not know whether it appeals to you
also, but perhaps it may. There are certainly some diagrams in
this book which are rather striking. For example, the chart in
the first section, marked E.1 in the corner, which gives the net
reserves against British banking and other quick liabilities.
I should emphasise that the figures used in compiling
this book are not so up-to-date as those we shall be using in the
documents submitted next week. In particular, they are pre-Quebec
and take no account of any changes made necessary by the Quebec
decisions.
As this is a unique copy, we should be grateful if we
could have it back some time, but please feel free to show it to
any of your colleagues who might be interested.
Ever sincerely yours,
Keyns
The Hon.Henry Morgenthau, Jr.
Regraded Unclassified
BRITISH EXTERNAL ECONOMIC POSITION
SOURCES OF SUPPLY OF u.k. MUNITIONS
%
TOTAL
100
AT JANUARY 1944
Regraded Unclassified
us.
AIR
E-GROUP
CARADA
K.IRELAND
GROUND
&
AIR
GROUND
G' BRITAIN
NAVAL
U.S
E. GROUP
CARADA
NAVAL
M. IRELAND
GAT BLITMM
ECONOMIC POR
EXTERNAL
P
BRITISH EXTERNAL ECONOMIC POSITION
1944
NET RESERVES AGAINST BRITISH BANKING AND OTHER QUICK LIABILITIES
30JUN
(mr.)
NET REJERVES
1943
LIABILITIES
31 DBC
1942
31 DEC
1941
IDEC,
Cooo
1938
31 AUG
1939
31 DBC
for
Regraded Unclassified
250
£
MA
BRITISH EXTERNAL ECONOMIC POSITION
BRITISH BANKING & OTHER QUICK LIABILITIES
AT 31 MARCH 1944
3000
Regraded Unclassified
TO ALL OTHER COUNTRIES
2000
TO ALLIED GOVERNMENTS
TO NON-BRITISH STERLING AREA COUNTRIES
ICDO
TO BRITISH STERLING AREA COUNTRIES
(INCLUDING IDVERY-OCCUPIED)
£ M"
BRITISH EXTERNAL ECONOMIC POSITION
STAGE II
FIRST YEAR ESTIMATES
BALANCE OF PAYMENTS
(AT CURRENT YEAR PRICES)
NET GOUT PAYMENTS OUTMERS
Regraded Unclassified
1937
PAY-
RE-
1000
DEFICIT
MENTS CRIPIS
1938
PAY-
RE-
1936
MENTS CEIPTS
If
PAY-
RE-
MENTS CEPTS
NET GOV PAYMENTS OVERSEAS
DEFICIT
COMMISSIONS & OTHER
CURRENT AECEIPTS
SHIPPING EARNINGS
RETAINED IMPORTS
CONMISSIONS c. OTHER
CURRENT RECEIPTS
INCOME FROM
SHIPPING EARNINGS
OVERSEAS INVESTMENT
INCOME FROM
500
RETAINED IMPORTS
OVERSEAS INVESTMENT
EXPORTS OF OF
EXPORTS OF
PRODUCE
u.k. PRODUCE
$9
a
$
H
8
we
st
LE
TEM
$
2>
#
±
of
bC
BE
LE
95M
, wind' any
STATEM mrs
8
un
§
8
in
CENTURE
DOC
smount
IRMS
00+
a
ITW
8
Regraded Unclassified
8
(001
3WN70A
VALUE
EXPORTS
OOL
EXTERNAL ECONOMIC POSITION
INSIANCE
043
in
BRITISH
EXT' ECONOMIC POSITION
Unclassified
RETAINED IMPORTS
VALUE
VOLUME
(1935 a 100)
1500
150
Regraded
STAGE II
MAST YEAL
EXTIMATES
BIT.
STAGE II
1000
100
PULIT YEAR
ESTIMATES
EST.
ONER
wear -
HAMPARTUS
500
X
BAW MATERIALE
TOBACCO
F36
1936
&
38
34
40
4d
42
43
$
0
"
MANURACTU
IMPORTS TO U.K.
RAW MATERIALS & MANUFACTURES
MISCELLANEDIS
PRE-WAR
AVERAGE1934-199
PERTIL
AGERS
CHEMICALS
HIDRELBAT
F
PAPER
1941
TOTAL
TIMBER
1943
1944
AT RATE OF JAM -J0W
TOTAL
TOTAL
1942
TOTAL
TEXTILES
:0
PERROUS
METALS
FOR
CIVIL
FOR
IRON 2 STEEL
USE
FOR
FOR
CIVIL
CIVIL
CIVIL
USE
USE
USE
m
Regraded Unclassified
"WHERENT
256
€ MR
BRITISH INTERNAL ECONOMIC POSITION
REAL SOURCES OF WAR FINANCE
1943
UNDEFICIAL ESTIMATES
3000
1942
Regraded Unclassified Regraded-Unclassified
1941
2000
1940
INCREASE IN OUTPUT
REDUCTION IN CONJUMPTION
1000
INCREASE IN ADUERSE OVERJEAS BALANCE
REDUCTION IN PRIVATE INVESTMENT
(INCLUDING REDUCTION OP-TOCLE IN PRILATE OWNERSHP)
000s
doos
0001
THE
account TIME
TRIM ,
TR/VV ,
8
PUBLE LIGHT
JHON 1 name
THIS
THE
000£
TEAVEL
TENTES
&
20
17
nomes THIS
SECURITE TEND
or
serve da Chrn M MOON
PRODUCTING
am MI 1001)
000+
50000 TERLO
bE ВЕЫ
9861
bE
0
It
coss
"
8+
Regraded Unclassified
0009
PAILES ВЕЫ IV SY
ATACTUAL MARKET PRICES
PERSONAL EXPENDITURE ON CONSUMPTION
BRITISH INTERNAL ECONOMIC POSITION
aw 3
1942
1941
Unclassified
BILLION
AT ACTUAL
UNITED STATES
DOLLARS
AS AT 1939 PRICES
source:
MARKET PRICES
PERSONAL EXPENDITURE ON CONSUMPTION
1943
SURJEY OF CURE
1941
70
1942
70
1940
1440
APAIL Regra last
1939
1939
60
60
SERVICES
SERVICES
P
50
40
40
OTHER NON-DURABLE
DURABLE
GOODS
ONER DURABLE
CASOLINE LaL
MOTORIN
G
30
30
AUTOMOBILES
CLOTHING
NON-DURABLE
GOODS
PURATURE,
20
20
c HOUSEHOLD EQUIPMENT
TOBACCO
FOOD
ID
10
BRITISH INTERNAL ECONOMIC POSITION
TAXATION & RETAINED INCOME IN VARIOUS INCOME GROUPS
1944-45
COMPARE OPPOSITE CHAILT
£50,000 P.A.
Regraded Unclassified
DIRECT TAXATION
£10,000 P.A.
INDIRECT
TAXATION
€2,000 P.A.
£1,000 P.A.
€500 P.A.
BRITISH INTERNAL ECONOMIC POSITION
TAXATION & RETAINED INCOME IN VARIOUS INCOME GROUPS
1937-38
COMPARE OPPOSITE CHART
£50,000 P.A.
Regraded Unclassified
DIRECT TAXATION
INDIRECT
TAXATION
£10,000 P.A.
£2,000 P.A.
£1,000 P.A.
£500 P.A.
CLOTHING BOUGHT DURING ONE WAR YEAR BY TEN MEN
AVI941-43
OVERCOATS
SUITS
SHIRTS
UNDERWEAR
PYJAMAS
PAIRS OF SOCKS
PAIRS OF SHOES
+++++++++
Regraded Unclassified
262
CLOTHING BOUGHT DURING ONE WAR YEAR BY TEN WOMEN
AV.1941-43
OVERCOATS
DRESSES OR SUITS
UNDERWEAR
NIGHTWEAR
PAIRS OF STOCKINGS
PAIRS OF SHOES
. . . . .
PRODUCTION OF HOUSEHOLD GOODS
PRODUCTION IN THE YEAR 1943 TO EVERY TEN HOUSEHOLDS
I
2
3
4-
5
6
7
8
9
10
WOOLLER BLANKETS
COTTON BLANKETS
SHEETS
HARDWARE
CUTLERY
Till TTI
CARPETS ETC
13Q40
CARPET
550 YDI
PELT
7.00 YDS
LINO
HOUSE REPAIRS (BEFORE FLYING BOMBS)
UP TO MAY 1944
22
OUT OF EVERY 100 DWELLINGS HAD BEEN DAMAGED
THESE_
IO
WERE "COMPLETELY" REPAIRED
R
e
B
B
0
B
8
B
B
B
B
B
B
e
B
8
8
8
B
10
WERE NOT ЧЕТ REPAIRED
2
WERE BEYOND REPAIL
Base 1330
Regraded Unclassified
UTILITY FURNITURE FOR THE NEWLY MARRIED
*
ALLOWANCE JULY 1943 - AUGUST 1944
30
POINTS
POINT
PRICE
5
B
6
-
1
I
4
I
IT IS PLANNED TO INCREASE THE TOTAL ALLOWANCE FROM AUG 1944 TO
60
PTS
OF WHICH ONLY 30 POINTS WILL BE IMMEDIATELY AVAILABLE
B
5
6
6
6
6
I
I
1
4
5
*
FURNITURE POINTS ARE CAVEN ONLY TO COUPLES SETTING UP HOUSE
WHO DO NOT ALREADY POSSESS A MINIMUM OF FURNITURE
Regraded Unclassified
59%.
BRITISH INTERNAL ECONOMIC POSITION : CIVILIAN MOTORING
%
CARS 5 MOTORCYCLES LICENSED & PETROL CONSUMED
(1939 # 100)
MID 1939
Regraded Unclassified
CARS
&
PET-
MOTOR ROL
CYCLES
8
MID 1942
CARS
5
MOTOR
CHCLES
2876
MID 1944
as
CARS
&
MOTOR
CHCLES
PET-
ROL
PET-
852
MM
ROL
83
MANTOWER
Regraded Unclassified
MILLIONS
MANPOWER
NOTE : STAGE II ESTIMATES ARE BASED ON
MINISTRY OF LABOURIS ESTIMATE OF MAKPOWER SUPPLY
DISTRIBUTION OF BRITISH OCCUPIED WORKERS
PLUS ESTIMATE OF DOMESTIC SERUANTS PLUS SFRECT OF
BETWEEN GOVERNMENT, HOME MARKET & EXPORTS
POSTPONING RAISING OF SCHOOL LEAUING AGE PLUS
UNSHPLOYMENT AS AT PRESENT THEY ARE DUTRIBUTED
ACCORDING TO PRIME MINISTER'S DIRECTIVE. THE DIVISION
1942
1943
BETWERN GOVERNMENT & CIVILIAN work IN 1939 IS UNCERTAIN
1940
1941
STAGE II
1939
FIRST YEAR
Regraded Unclassified
ESTIMATES
UNEMPLOYED
20
ON HOME CIVILIAN ORDERS
10
ON EXPORTS
ON COVERNMENT WORK
MANDOWER
MN
MANPOWER
REQUIREMENTS X SUPPLIES IN STAGE
ADDITIONAL DEMANDS
5
ESTIMATED
RELEASES TO
"UNOCCUPIED"
4
ESTIMATED RELEASES
OF MANPOWER
(PUBLIC UTILITIES
AGRICULTURE, FOOD
& MINING
NON MANUFACTURES
GOV MUNITIONS
3
DISTRIBUTIVE TRADES
OTHER HOME MANUFACTURES
MUNITIONS
(ENGINEERING, CHEMICALS
& SHIPBUILDING)
2:
HOME MARKET
(ENGINEERING, CHEMICALS
&SHIPBUILDING)
CIVIL DEFENCE
BUILDING
&CIVIL ENGINEERING
SERVICES
DIRECT EXPORTS
GOV'SERVICE(INCL-INDASTRIAL)
Regraded Unclassified
MIL
THOUSANDS
END
INDUSTRIAL DISTRIBUTION
1943
1944
STAGE II
DEMANDS
ESTIMATED
OF BRITISH MANPOWER
MANPOWER
AVAILABLE
IN STAGE II
20000
MID
1939
Regraded Unclassified
SERVICES
CML DEFENCE
OTHER COVESERVICE
CHEMICALS
(prese STORE)
DIRECT EXPORT
BULDINGS:
CIVIL ENGINEERING
HOME MARKETI
GENERALS vices
& SHIPBUILDING)
10,000.
(OTHER MANUFACTURE)
(DISTRIBUTIVE TRADES)
(MON-MANUFACTURES)
(PUBLIC
POODS/MINING)
M
MANPOWER
EMPLOYMENT OF WOMEN ACCORDING TO AGE GROUPS (14-59)
MID 1943
UNOCCUPIED
MILLIONS
FORCES, INDUSTRY X CIVIL DEFENCE
6
SINGLE
Regraded Unclassified
MARRIED X WIDOWED
51-59
WITHOUT CHILDREN UNDER 14
MARRIED & WIDOWED
WITH CHILDREN UNDER 14
5
41 -so
51-59
41 50
51 -59
4
18 -40
3
41-50 41
18-40
2
I
18-40
14-17
14-17
14-17
271
OFFICE OF
TREASURY DEPARTMENT
WASHINGTON
THE SECRETARY
October 19, 1944
Dear Mr. President:
Subject to your approval, I propose to offer for cash subscription,
under authority of the Second Liberty Bond Act, as amended, issues of 2-1/2
percent Treasury Bonds of 1966-71, 2 percent Treasury Bonds of 1952-54,
1-1/4 percent Treasury Notes of Series C-1947 and one-year 7/8 percent
Treasury Certificates of Indebtedness, all to be dated December 1, 1944.
These four issues, Series E, F and G Savings Bonds, and Treasury Sav-
ings Notes, will constitute the securities available in the Treasury's
Sixth War Loan Drive, with an objective of $14,000,000,000 to be sold to
nonbanking investors. In general, the terms and conditions of the new
securities will be similar to those sold in previous drives, and the amount
of securities to be issued will not be specifically limited. I propose to
start the drive and make the new securities available for subscription on
November 20. I am planning to permit commercial banks holding savings
deposits and issuing time certificates of deposit to make a limited invest-
ment in the two Treasury bonds concurrently with, but not as a part of, the
drive.
In order to refund the certificates of indebtedness maturing December 1
and the 4 percent Treasury Bonds of 1944-54 called for redemption on Decem-
ber 15, I propose to offer holders of the maturing certificates a 13-month
0.90 percent Treasury Note, and holders of the called bonds either of the
two bonds or the note to be sold in the drive. In the case of commercial
bank holders of the called bonds, they will be offered only the 2 percent
bond and the note. These exchange operations also will be conducted outside
of the drive.
The authorizing act provides that bonds and notes may be issued only
with the approval of the President. Accordingly, I trust that the proposed
issues will meet with your approval.
Faithfully yours,
Secretary of the Treasury.
The President,
FORDEFENSE
The White House.
BUY
UNITED
STATES
SAVINGS
APPROVED:
BONDS
AND BEAMPS
tR
10-20-44
Regraded Unclassified
272
October 19, 1944.
Dear Mr. Merrill:
I want to thank you, and the other members of
your committee, for your very kind invitation of
October 6 to address a luncheon meeting of the
Payroll Savings Division of the Onondaga County
War Finance Committee. As you know, nothing gives
me more pleasure than to be able to visit with our
War Finance people in the field, learn at first
hand their problems, obtain the benefit of their
advice, and extend to them whatever help I can.
Having just participated in regional meetings
of War Finance officers in Atlantic City, New
Orleans, and Los Angeles, it will be impossible for
me to accept your kind invitation much as I would
like to do so. I have the utmost confidence that
your meeting will be a great success and that you
will lay final plans for setting a new record of
accomplishment in the Sixth War Loan.
Sincerely,
(Wigned) H. Morgenthau. Jr.
Secretary of the Treasury.
Mr. A. B. Merrill
Chairman, War Finance Committee
918 O.C.S.B. Building
Syracuse 2, New York
HN:mes
HEG/mah
Regraded Unclassified
273
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE Oct. 18,1944
TO:
Miss Chauncey
FROM:
Harold Mager Hm.
Here is a letter I have prepared for the Secretary's
signature.
you't have n
edult. will
271
THE SECRETARY OF THE TREASURY
WASHINGTON
Dear Mr. Merrill:
I want to thank you, and the other members of
your committee, for your very kind invitation of
October 6 to address a luncheon meeting of the
Payroll Savings Division of the Onondaga County War
Finance Committee. As you know, nothing gives me
more pleasure than to be able to visit with our War
Finance pecyle in the field, learn at first hand
their problems, obtain the benefit of their advice,
and extend to them whatever I can.
Having just visited with our people in Atlantic
help in regional meetings was of
City, New Orleans, and Los Angeles, it will be 1m-
Finance
possible for me, much as I would like to, to accept
your kind invitation I have the utmost confidence
mM
that your meeting will be a great success,
and that you will lay final plans for going
in the Sixth War Loan.
Sincerely,
setting reend a new
accountling
as I would like todo ev
much
Mr. A. B. Merrill, Chairman
War Finance Committee
FORDEFENSE
918 O.C.S.B. Bldg.
Syracuse 2, New York
BUY
UNITED
STATES
SAVINGS
BONDS
AND STAMPS
Regraded
Unclassifie
FOR VICTORY
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
WAR FINANCE COMMITTEE
BONDS
STAMPS
918 O.C.S.B. Bldg.
OFFICE OF STATE CHAIRMAN
Syracuse 2, N. Y.
October 6, 1944
Hon. Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. C.
My dear Mr. Secretary:
We all know that the Payroll Savings Division of all county War
Finance Committees in industrial areas is one of the most important groups
in the sale of I Bonds. Since there is now a tendency toward reduced pay-
rolls in many plants, it is imperative that every effort be made to increase
individual participation in bond purchases by employees in institutions
having a Payroll Savings Plan.
The Onondaga County War Finance Committee has decided to start off the
Payroll Savings Division on the Sixth War Loan well in advance of November
20th by having a great get-together meeting of the Executives and Plant
War Bond Chairmen of these establishments, including a luncheon under the
auspices of the American Legion on Tuesday, November 14th. We hope to
arrange to broadcast at least a part of the program over either a national
or state-wide hook-up.
If you, in your capacity as Secretary of the Treasury, would accept
our invitation to be the principal speaker at this luncheon, we are sure
that suitable arrangements could be made for broadcasting your speech.
Your remarks would carry great weight and would be a great influence in
maintaining and increasing the interest in Payroll Savings that means so
much in the financing of our war effort. Therefore, we have no hesitancy
in asking you to be our honor guest at the luncheon on November 14th.
Sincerely yours,
Chairman
N.Y. War Finance Committee, Dist. R
Offance , Chairman
Onondaga County War Finance Committee
Zaward to Suffer , Chairman
Payroll Savings Div., Onon. Co. W.F.C.
, Chairman
Small Plants Section, Payroll Savings
Division, Onondaga County 1. F. C.
THE FOREIGN SERVICE
OF THE
276
UNITED STATES OF AMERICA
SECRET
AMERICAN EMBASSY
No. 2260
Quito, October 19, 1944
Subject: Assistance to Refugees from Axis Persecution
The Honorable
The Secretary of State,
Washington.
Sir:
Referring to the Department's secret circular air-
gram of September 19, 1944, 9:15 a.m., in regard to the
safeguarding of lives of holders of documents of the
American republics, I have the honor to enclose a copy,
with translation, of a note from the Foreign Office
dated October 17, 1944, received in reply to a communi-
cation which I sent to the Minister for Foreign Affairs
in pursuance to the Department's airgram under reference.
It will be noted that the Foreign Office communice-
tion states that the Ecuadoran representative in Switzer-
land has been instructed to take the action desired; i.e.,
to confirm or suggest changes in the list being compiled
by the United States Legation at Bern of holders of do-
cuments purporting to indicate Feuadoran nationality.
Respectfully yours,
/s/ R.M. Scotten
Enclosures:
1. Copy of note as stated
2. Translation of above note
Copy to the Consulate General, Guayaquil
File No. 840.1
JWG:rbm
Miss Chauncey (for the Sec'y) Abrahamson, Ackermann, Akkin, Cohn,
Drury, DuBois, Friedman, Gaston, Hodel, LeBser, Marks, Mannon,
McCormack, Pehle, Files.
Regraded Unclassified
277
Enclosure No. 2 of Despatch No. 2260 dated October 19, 1944
from American Embassy, Quito, Ecuador.
REPUBLIC OF ECUADOR
No. 54-D-16
MINISTRY OF FOREIGN AFFAIRS
Diplomatic Department
Quito, October 17, 1944
Mr. Ambassador:
I have the honor to ackbowledge the receipt of Your Ex-
cellency's esteemed note No. 390 of the 5th of this month in-
forming me that at the suggestion of the authorities of Swit-
zerland and for the purpose of protecting the holders of docu-
ments issued in the name of the American Republics in German-
controlled territory, the Government of the United States of
America is taking steps to compile lists of such holders for
the purpose of transmitting them to the German Government
through the Swiss Government.
Your Excellency adds that, notwithstanding the present
circumstances, the Legation of the United States of America in
Bern is undertaking to compile lists as complete as possible
for the purpose aforementioned.
Your Excellency takes occasion to inform me that, with
respect to the list of individuals claiming Ecuadoran nation-
ality, the Government of the United States would be grateful
if my country would instruct its representative in Switzerland
to confirm or suggest changes in the list which is being com-
piled by the Legation of the United States of America in Bern.
In reply I am pleased to inform Your Excellency that, com-
plying with pleasure to your request, I have instructed the
Ecuadoran representative vis-a-vis the Swiss Government in the
sense requested.
I avail myself of the opportunity to reiterate to Your
Excellency the assurances of my highest and most distinguished
consideration.
For the Minister,
The Under-Secretary:
/s/ TOBAR
His Excellency
Mr. Robert McGregor Scotten,
Ambassador Extraordinary and Plenipotentiary,
of the United States of America,
City.
Regraded Unclassified
278
San Salvador, KL Salvador, October 19, 1944
No. 2094
SECRET
SUBJECT: Citizens of the American Republics Held in
German Concentration Camps.
The Honorable
The Secretary of State
Washington
Sir:
With reference to the Department's secret circular
airgram of June 26, 1:00 p.m., regarding citizens of the
American Republics held in German concentration camps,
I have the honor to enclose a translation of a note dated
October 11 (but received only yesterday) from the Minister
for Foreign Affairs, in which he expresses thanks for
acquainting him with the Department's message to the Le-
gation at Bern and the hope that his Government will be
informed of the result of the representation, so far as
it might concern Salvadorans or individuals who claim Sal-
vadoran nationality.
It will be observed that no mention is made of taking
parallel action.
Respectfully yours,
Gerhard Gade
Charge d'Affaires a.i.
Enclosure
Translation of note
dated 10/11/44
711
00/mdm
To the Department in original
and hectograph.
Miss Chauncey (for the Secy) )AAbrahamson Ackermann, Akzin, Cohn, Drury,
DoBotes, FFriedman, Gaston, Hodel, Lesser, Marks, Mannon, McCormack, Pehle,
Files.
Regraded Unclassified
bringing this important
279
state-
ubgestion,
the
18pU8-
intation entrusted
eonoorn Salandorum nationals or individuals far who as claim 18 might Sal-
80
vadoran nationality, detained (TRANSLATION) in the said places.
I beg Your Excellency to accept the renewred assurances
Republic of Kl Salvador, C. A.
distinguished consideration.
Diplomatic Section
1.800-1)-2222
Julio B. Avila
HissExcellency
National Palace,
San Salvador, October 11, 1944
Mr. Ambassador:
By Your Excellency's esteemed note no. 344 of July
1 last, I have had the honor to acquaint myself with the
terms of the message which was sent by the Department of
State to the American Legation in Bern, regarding na-
tionals and persons who claim the nationality of the
United States and of other American Republics, detained
in camps located in Cermany and German-controlled terri-
tory to which the protecting Powers and the International
Red Cross have been granted no access or else such strict-
ly limited forms of access that they have been unable ef-
fectively to assist the detained individuals.
In thanking Your Excellency for your kindness in
bringing this important message to my knowledge, permit
me to advise you that my Government would be highly grate-
ful if your Government would inform it, if there is no
objection, of the result of the representation entrusted
to the United States Legation in Bern, so far as it might
concern Salsadoran nationals or individuals who claim Sal-
vadoran nationality, detained in the said places.
I beg Your Excellency to accept the renewed assurances
of my highest and nost distinguished consideration.
Julio E. Avila
RissExcellency Walter Thurston,
Ambassador Extraordinary and Plenipotentiary of
the United States of America.
Here.
10.08 Chauncey
Regraded Unclassified
280
AVH-68
This telegram must be
Rome
paraphrased before being
communicated to anyone
Dated October 19, 1944
other than a Government
Agency. (RESTRICTED)
Rec'd 9:34 a.m., 20th
Secretary of State
Washington
550, October 19, 2 p.m.
Following for Joseph Schwartz American Joint
Distribution Committee New York from Arthur Green-
leigh.
Item one. In accordance with your instructions
have personally initiated request of G five AF head-
quarters and United States political adviser this
theater for Resnik enter Italy from London Jacobs
enter from the United States and Greenleigh to France.
It is estimated will take from one to two weeks to
complete arrangements. Will keep you informed of
progress and am advising Pilpel. Strongly urge you
continue follow up your end and keep ne advised.
Item two. Have finally received 15,000,000 lire.
Item three. Relative to your cable about repayment
of debts am detailing instruction in letter. Item four.
Because of size of problem in France am uring steps
be taken now to provide additional staff. Would
suggest Harry Biele to assist me and later Perlman
when he returns to Europe after consultations.
KIRK
WSB
Regraded Unclassified
281
CABIE TO NORWEB, LISBON, FROM WAR REFUGEE BOARD
Please deliver the following message to Robert Pilpel from
Ms.A. Leavitt of the American Jewish Joint Distribution Committee:
QUOTE VAAD HAHATZALA HAS ASKED SPANISH AMBASSADOR WASHINGTON
INTERVENE WITH JAPANESE REGARDING RELEASE 500 RABBIS, DEANS
AND SCHOLARS NOW SHANGHAI TO A NEUTRAL COUNTRY. SPANISH
AMBASSADOR HAS REFERRED MATTER TO HIS GOVERNMENT BY CABLE.
VIEW FACT SPANISH GOVERNMENT IS PROTECTING POWER JAPANESE
INTERESTS HERE, AMBASSADOR BELIEVES SUCH INTERVENTION MIGHT
BRING RESULTS. PLEASE URGE BLICKENSTAFF FOLLOW UP MATTER WITH
APPROPRIATE AUTHORITIES AND PUSH IT YOURSELF. FOR YOUR
INFORMATION VATICAN HAS ALSO INTERVENED BUT THUS FAR RECEIVED
NO REPLY FROM JAPANESE AUTHORITIES. PLEASE KEEP US ADVISED.
UNQUOTE
THIS IS WRB CABLE TO LISBON NO. 108.
11:15 a.m.
October 19, 1944
Regraded Unclassified
282
FD-883
Lisbon
Distribution of true
reading only by special
dated October 19, 1944
arrangement. (SECRET W)
Rec'd 8:38 p.m.
Secretary of State
Washington
3182, October 19, 7 p.m.
THIS IS WRB 225 JDC 93 FOR LEAVITT FROM PILPEL.
It is of greatest importance that Amembassy Madrid
intervene stenuously with Spanish Government regarding
155 sephardics referred to in our telegram 59. Advise
action taken. Also Spanish Ambassador, Berlin should
use good offices to obtain their release and admission
into Switzerland rather than Spain.
NORWEB
WMB
Regraded Unclassified
283
GEK-84
PLAIN
Lisbon
Dated October 19, 1944
Rec'd 10:38 a.m., 20th
Secretary of State,
Washington.
3183, October 19, 7 p.m.
FOR LEAVITT FROM PILPEL JDC 94 WRB 226
Grand Rabbinate, Istanbul acknowledges receipt
$62,000 equivalent 110,418 Turk pounds. Kessler
advises Grand Rabhinate applied and received permission
use $62,000 Istanbul relief and repatriates upon
receipt of advice thatfunds arrived. Consequently
has no permission use any portion these funds elsewhere.
Therefore suggest prompt remittance $50,000 for use
Smyrna Edirne Ankara Brouesa.
NORWEB
JMB
Regraded Unclassified
284
REB
Distribution of true
October 19, 1944
reading only by special
arrangement. (SECRET W)
1 p.m.
AMIEGATION
STOCKHOLM
2096
The cable below for Olsen is WRB 110.
Reference your 4088 to Department, Section 2, WRB's 89
of October 7, 1944.
The Board's concern with the welfare of refugees in
neutral countries arises only when it bears 2 direct relation@
ship to the reception of additional refugees from enemy con-
trolled areas. Consequently, the Board does not consider
that the matter raised in the telegram under reference is
one which is properly to be dealt with by it. For that
reason, the Board has referred the problem in its entirety
to the Department of State.
HULL
(GLW)
WRB:MMV:KG
NOW
SE
10/16/44
Regraded Unclassified
285
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMLEGATION, Stockholm
TO:
Secretary of State, Washington
DATED:
October 19, 1944
NUMBER:
4262
SECRET
US URGENT
See my 4204, October 16, 5 p.m.
Today the Swedish Foreign Office transmitted a wire
to the Swedish Minister at Budapest requesting that the appeal of the
King of Sweden concerning the treatment of Jews, particularly those
four thousand who have been given Swedish passports, be again brought to
the attention of the present Hungarian authorities.
In addition the Minister was instructed to ask for
a prompt answer. The matter of withdrawal of his mission if assurances
are not promptly given was left to the Minister's discretion. It is the
opinion of the Swedish "oreign Office that maintenance of the Swedish
Legation at Budapest so long as possible in order to give aid to the
Jews is desirable. However, it fears that the demarche will have little
effect since Foreign Office today received a wire from its Legation there
reporting that the statement has been made by Hungarian officials to the
effect that they will not respect Swidish passports issued to Jews before
March 13. In addition, this wire reports that Legation at Budapest are
in real danger of being killed. Members of the Legation staff who are
not Jews are being molested also, one motorcycle and one auto have been
taken from them already. The request has been made by the Swedish
Foreign Office that this not be released for publication purposes.
The four Salasy adherents have been thrown out of the
Hungarian Legation by Swedish Government who, in order to ensure safo
return of Swedish personnel at Budapest, contemplates keeping thom as
hostages.
JOHNSON
10-20-44
DCH:EMS
CC: Miss Chauncey (For the Soc'y.), Abrahamson, Akzin, Cohn, Drury,
DuBois, Friedman, Gaston, Hodel, Lesser, Mannon, Marks, McCormack,
Pohle.
Regraded Unclassified
286
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMERICAN LEGATION, STOCKHOLM
TO:
Secretary of Stato, Washington
DATED:
October 19, 1944
NUMBER: 4263
SECRET
For WRB 93.
See 2041 from the Department of the eloventh of
October.
Our attempts to have message conveyed to Gorman
officials have not been successful as the private individuals
who have access to Himmler have announced that they would not
dare communicate to him such e mossage. See 4206 from the
Legation of the sixteenth of October. It is concluded by
the Swedish Foreign Office that the only means of conveying
the message would be by radio or through the protecting
power.
JOHNSON
DCR:MLG
10-20-44
CC: Miss Chauncey (For the Sec'y), Abrahamson, Akzin, Cohn,
Drury, DuBois, Friedman, Gaston, Hodel, Lesser, Mannon,
Marks, McCormack, Pehle.
Regraded Unclassified
287
CABLE TO MINISTER HARRISON AT BERN AND MCCLELLAND
Reference your 6839 to Department of October 13 concerning Slovakia.
The following is the text of a communication received from the
Apostolic Delegate in Washington under date of October 14:
QUOTE I have received the following communication
from the Secretariate of State, Vatican City: The Holy
See has continued its efforts in favor of the Jews in
Slovakia. According to the Apostolic Nunciature in
Bratislava, on October 5th the Minister of Foreign Affairs
notified the German Legation that the Slovak Government
could not consent to the deportation of Jews since they
are under the protection of the Constitution and Laws of
Slovakia.
QUOTE Likewise, Mr. Carol Sidor wrote as follows to
the Vatican: Jews having American citizenship, who have
asked the protection of the Slovakian Government, have
been gathered together and are living in a castle at
Marianka where they are protected by Slovak police.
QUOTE Referring to your letter of September 21,
1944, I wish to say that the Secretariate of State
assures me that your message for Dr. Tiso has been
transmitted to the Apostolic Nunciature in Bratislava.
UNQUOTE
Carol Sidor is understood to be a member of the Tiso cabinet. The
"message for Dr. Tiso" was a repetition of previous warnings of the position
this Government takes with respect to the deportation and other persecution
of Jews. "Jews having American citizenship" is assumed to mean Jews holding
passports and other documents issued in the names of American republics or
otherwise claiming the nationality of an American republic.
THIS IS WRB CABLE TO BERN NO.
226
11:15 a.m.
October 19, 1944
Regraded Unclassified
288
CABLE TO MINISTER HARRISON AND McCLELLAND FROM WAR REFUGEE BOARD.
In response to recent requests of Saly Mayer through Pilpel
in Lisbon for credit of 20,000,000 swiss francs, we have been
advised by the Joint Distribution Committee that they have authorized
this amount in substitution for the amount referred to in
Department's 2990, WRB's 153 of August 30. No commitment to make
any payment from this amount can be entered into without approval
here. Mayer should be fully advised of all of the foregoing.
THIS IS WRB BERN CABLE NO. 227.
4:15 p.m.
October 19, 1944
289
MB-724
This telegram must be
Bern
paraphrased before being
communicated to anyone
Dated October 19, 1944
other than a Government
agency. (RESTRICTED)
Rec'd 2:03 p.m.
Secretary of State,
Washington,
6927, October 19, 11 a.m.
FOR WRB, MCCLELLAND
Riegner of the World Jewish Congress,
Geneva, informs me their representative at Stockholm,
Hilelstorch, has secured permission of Swedish
authorities and has purchased foodstuffs sufficient make
up 40,000 five pound parcels intended for Jewish
deportees in Bergen-Belsen and Theresienstadt. Riegner
has forwarded individual names and addresses of 2,200
Bergen-Belsen and 4,000 Theresienstadt internees to
Stoch for initial shipment.
Storch wired Riegner October 13 that there was
some difficulty concerning final export license,
Swedes and I believe our Legation have requested
assurance that International Red Cross would verify
proper distribution and reception these parcels.
I discussed the matter with International Red
Cross October 18. Committee states that as is known
they have only been able visit Theresionstadt once
and have not yet succeeded obtain permission visit
Bergen-Belsen. Individual receipt card system,
however, has produced very satisfactory results as
far as both places are concerned, particularly
Theresienstadt. Parcels from International Red Cross
reach addresses regularly and as normally as can
be expected under the circumstances. Hungarians
from Bergen-Belsen now in Switzerland also report
satisfactory arrival and distribution such parcels
while they were there.
International Red Cross willing instruct their
delegate in Sweden affix International Red Cross
labels, enclose standard receipt cards these parcels.
Would much appreciate any steps you could
take facilitate granting clearance this lot parcels,
Seems to me this project very similar $100,000
JDC-ICRC (Department's 437, February 9, noon 1944)
program which was authorized although I am
unacquainted
Regraded Unclassified
280
-2- 6927, October 19, 11 a.m., from Bern
unacquainted source WJC funds used Stockholm
purchase these foodstuffs.
View time element involved transport goods
from overseas and increasingly difficult transport
situation inside Germany and German occupied areas
as well as scarcity purchasable foodstuffs, rapid
used any goods immediately available in Europe most
recommendable.
HARRISON
BB
Regraded Unclassified
291
FMH-804
This telegram must be
BERN
paraphrased before being
communicated to anyone
Dated October 19, 1944
other than a Government
agency. (RESTRICTED)
Rec'd 5:26 p.m.
Secretary of State,
Washington.
6932, October 19, 2 p.m.
FOR WRB FROM MCCLELLAND
Sternbuch of Union Orthodox Rabbis received
following message October 10 from Joseph Elarmann, his
representative who went to Bucharest a few weeks ago
from Istanbul. Am passing it on to you since it
contains interesting statistical information present
situation Jews remaining in Rumania which might be of
value to appropriate Jewish organizations in United
States: "Although Jews have been reinstated in their
former status and in principle enjoy full civic rights
no practical steps have been taken their economic
rehabilitation.
Out of approximately 290,000 Jewish survivors the
following categories are almost completely destitute:
90,000 returned from forced labor service, 17,000
repatriated deportees, 20,000 returned from outlying
district capitols, 10,000 evacuees from war stricken
regions, 20,000 persons who have been bombed out in
Bucharest.
Dr. Fildermann JC representative told me unless
government takes steps remedy situation these Jews
shortly one million five hundred thousand dollars will
be needed for shelter clothing and food for a three
months period. Fildermann appeals to World Jewry for
immediate assistance.
Mr. Zissu, President National Jewish Party and
Zionists told me that the above mentioned financial
help from abroad could be no more than palliative. He
believes that fully 150,000 ruined Jews will never be
economically reestablished. Foresees therefore
Palestine emigration as only solution."
End of Klarmann's message.
HARRISON
HTM
Regraded Unclassified
292
DEPARTMENT
INCOMING
DIVISION OF
OF
TELEGRAM
COMMUNICATIONS
STATE
AND RECORDS
JMM-835
Bern
This telegram must be
paraphrased before being
Dated October 19, 1944
communicated to anyone
other than a Government
Rec'd 6:10 p.m.
Agency. (SECRET 0)
Secretary of State
Washington
6938, October 19, 6 p.m.
FOR WRB FROM MCCLELLAND.
Sternbuch informs me that courier recently arrived Switzerland
from Bratislava reports that 300 to 400 Jews holding Catin American
documents arrested in Bratislava were first interned as result
intervention Central Jewish office at Mariathal near Bratislava. On
or about October 8 they were summarily transported, it is believed to
Germany. (Courier declared that Slovak Government knows where they
have been taken. Apparently about 90 were bearers El Salvador
nationality certificates balance Paraguayan passports. Legation's
6839 October 13.
Would it be possible through Vatican and Papal Nunciature at
Bratislava determine destination this group with view to ultimately
requesting Swiss and Spaniards once group is located, exercise
protection?
Repeated to Ackermann of WRB care Ampolad.
HARRISON
EH
CC: Miss Chauncey (For the Sec'y.), Abrahamson, Akzin, Cohn, Drury,
DuBois, Friedman, Gaston, Hodel, Lesser, Mannon, Marks, McCormack,
Pehle
Regraded Unclassified
203
DMH-848
This telegram must be
Bern
paraphrased before being
communicated to anyone
Dated October 19, 1944
other than a Government
agency. (SECRET 0)
Rec'd 7:57 p.m.
Secretary of State
Washington
6941, October 19, 7 p.m.
FOR WRB FROM MCCLELLAND. FOR UNION ORTHODOX RABBIS
FROM STERNBUCH.
"We have paid out to date (October 6) in Swiss franc
equivalents; for Poland, Hungary and Rumania 435,000;
for Slovakia 305,000; for Italy 30,000; forFrance,
Holland and Belgium 140,000.
Recently dispatched through Intercross car load
including 5000 kilos sugar and 5,000 kilos macaroni to
the Resienstadt. Our people will undertake distribution
these foodstuffs."
HARRISON
EH
10.08
Regraded Unclassified
284
CABLE FOR AMBASSADOR STEINHARDT, ANKARA, FOR ROBERT F. KELLEY,
CONSULAR OF EMBASSY, FROM J. W. PEHLE
Please transfer $5,000 to Herbert Katzki for his use in
connection with War Refugee Board operations. This is in
addition to previous $10,000 authorized in our No. 621 of
July 10. Please confirm transfer by cable.
THIS IS WRB CABLE TO ANKARA NO. 117.
9:30 a.m.
October 19, 1944
Regraded Unclassified
295
CABLE TO AMEMBASSY, ANKARA, TURKEY, FOR KATZKI
Reference is made to Department's 650 of July 21, WRB's 81 and
Department's 680 of August 5, WRB's 90. By note of August 12, Swiss
Foreign Office informed Amlegation Bern that Bulgarian government ex-
pressed willingness to accord transit visas to Neulanders and Schleifers
for which application must be made at Bulgarian legation in Bucharest.
By cable to Bern dated August 23, Swiss government has been requested to
inform Neulanders and Schleifers through its Bucharest legation of the
foregoing, as well as to advise them to communicate, upon arrival in Turkey,
with Amembassy regarding United States immigration visas for children.
Since Neulanders and Schleifers have not been heard from, please
inquire as to their whereabouts and circumstances through Filderman and
all other appropriate channels and endeavor to bring foregoing information
to their attention.
Please advise Board promptly of all information that you may receive
concerning this family.
THIS IS WRB CABLE TO ANKARA NO. 118.
.
10:00 a.m.
October 19, 1944
Regraded Unclassified
296
AIRGRAM TO AMEMBASSY, ANKARA, TURKEY
Please transmit the following message, with enclosures, from the
War Refugee Board to Mr. Katzki:
Please endeavor to have the attached photographs of
letters delivered to the beneficiaries named therein,
as it is thought possible that they may thereby be
afforded some measure of assistance.
THIS IS WRB CABLE TO ANKARA NO. 119.
10:00 a.m.
October 19, 1944
Regraded Unclassified
297
CABLE TO AMBASSADOR STEINHARDT AT ANKARA AND KATZKI
Reference your 1976 to Department, your 164 to WHB of October 14.
The following is the text of a communication received from the
Apostolic Delegate in Washington under date of October 14:
QUOTE I have received the following communication
from the Secretariate of State, Vatican City: The Holy
See has continued its efforts in favor of the Jews in
Slovakia. According to the Apostolic Nunciature in
Bratislava, on October 5th the Minister of Foreign Affairs
notified the German Legation that the Slovak Government
could not consent to the deportation of Jews since they
are under the protection of the Constitution and Laws of
Slovakia.
QUOTE Likewise, Mr. Carol Sidor wrote as follows to
the Vatican: Jews having American citizenship, who have
asked the protection of the Slovakian Government, have
been gathered together and are living in a castle at
Marianka where they are protected by Slovak police.
QUOTE Referring to your letter of September 21,
1944, I wish to say that the Secretariate of State
assures me that your message for Dr. Tiso has been
transmitted to the Apostolic Nunciature in Bratislava.
UNQUOTE
Carol Sidor is understood to be a member of the Tiso cabinet. The
"message for Dr. Tiso" was a repetition of previous warnings of the position
this Government takes with respect to the deportation and other persecution
of Jews. "Jews having American citizenship" is assumed to mean Jews holding
passports and other documents issued in the names of American Republics or
otherwise claiming the nationality of an American Republic.
THIS IS WRB CABLE TO ANKARA NO. 120.
11:15 a.m.
October 19, 1944
Regraded Unclassified
288
LC-14
This telegram must be
Ankara
paraphrased before being
communicated to anyone
Dated October 19, 1944
other than a Government
agency. (RESTRICTED)
Rec'd 4:20 a.m., 20th
Secretary of State,
Washington.
1998, October 19, 3 p.m.
FROM KATZKI TO PEHLE, WAR REFUGEE BOARD.
ANKARA'S 167.
Radio broadcasts from Budapest intercepted in
Istanbul indicate renewed and stringent measures taken
against the Jews in Hungary. The line is being taken
that the difficulties in which Hungary now finds
itself is in part the fault of the (*) and "account-
ability" is implicit in the broadcasts. Jews have
been forbidden to leave their homes under any circum-
stances until further notice and their homes may not be
visited by non-Jews.
In a radio broadcast from Budapest made October
17 Gabriel Vajna, Hungarian Minister of the Interior
in the new government, stated that he will not recognize
any baptized Jews. To him Jews were and remain Jews
whether baptized or not. He will not recognize any
foreign passports whose bearers are Jews as such persons
are living under Hungarian laws by which they are bound.
Any "atrocities, crimes or irregularities" committed
against Hungarian soldiers and their allies will be
punished by increasing severity upon the Jews of Hungary,
he concluded. It is apparent that under the present
regime in Hungary renewed excesses against the Jewish
people in that country may be expected. It is of the
utmost importance that all possible steps through all
available channels be taken to protect the Jewish people.
STEINHARDT
JT
(*) apparent omission.
Regraded Unclassified
209,
CABLE TO AMBASSADOR HARRIMAN, MOSCOW, FROM WAR REFUGEE BOARD.
Kindly refer to Department's 1812 of July 28.
The Department considers it desirable to informa the Soviet
Government of the following. The Department has been advised
that discussions have recently taken place on the Swiss border
between representatives of the Jewish groups in Budapest,
accompanied by reputed Gestapo agents, and Swiss citizens repre-
senting the Swiss Jewish community in an effort by the latter
group to forestall, if at all possible, the continued deportation
and extermination particularly of Jews from Hungary and Slovakia.
No commitments or agreements have been entered into in these
discussions and the Swiss citizens involved have acted in the
belief that lives have been saved to date and that precious time
has been gained by prolonging discussion pending the solution
of the problem by military action. American Jewish groups are
being kept informed of the discussions and Moscow will be further
advised of any significant developments.
4:15 p.m.
October 19, 1944
Regraded Unclassified
300
DEPARTMENT
OUTGOING
DIVISION OF
OF REB
October 19COMMUNICATIONS
STAT
This telegram must TELEGRAM
paraphrased before being
9 a.m.
AND RECORDS
com minicated to anyone
other than a Government
agency. (RESTRICTED)
DEPARTMENT OF STATE
nivision OF
AMENBASSX
OCT 211944
CHUNGKING
1350
FOR ABBASSADOR AND PHIEDHAN FROM TREASURY
The following is for Ambaesador's and your own
information only:
1. Reference despatch No. 2841, August 7. 1944,
and telegram 1629, September 30, 1944, concerning the
sale of nited States dollar exchange to persons in
China by the United Clearing Board, Chungking. As
indicated in OUR A-193 of September 2, 1944, Treasury
has notified both the National City Bank and the United
Clearing Board that these facilities are not to be extended
to military, neval, or civilian government personnel.
Treasury is willing to consider making an exception for
government personnel about to leave Ohina who must dispose
of their personal and household effects and who desire to
convert the proceeds of such sales in Chinese currency
into nited States dollar drofts. 3t Treasury feels
that since these exce ti no night be difficult to administer
and might weaken the effectiveness of the prohibitions
against
301
-2- #1350, October 10, 1044 9 a.m. to Chungking.
against other sales to government personnel, your further
comments and recommendations would be appreciated in the
11ght of the following:
2. Can not the departing personnel convert Chinese
ourrency without appreciable loss in (a) the same open
masket wherein their Chinese currency wes originally
acquired or (b) exchange the Chinese currency for the
U. S. currency now being received by other personnel as
pay OF being brought to the area by newcomers.
3. If an exception should the be mode for government
personnel leaving China to permit them to purchase
United States dollar drafts from the United Cleering
Board, it would be necessary to establish & proced re
for certifying to the inited Clearing Boerd that govern-
mental personnel desiring to purchase nited States
dollar exchange are leaving Chine and are entitled to
purchase the exchange. While it might be relatively
easy for you to provide such certificati ne for civilian
government personnel, it might be quite difficult with
respect to military and nevel personnel in view of the
wide
302
-3- 1350, October 19, 9 a.m. to Chungking
wide areas over which such individuals are stationed and
the secrecy which mormally surrounds their prospective
movements.
-
HULL
is
(GL)
FMA:GLiST
20/18/44
Regraded Unclassified
303
NOT TO BE RE-TRANSMITTED
COPY NO.
SECRET
OPTEL No. 340
Information received up to 10 a.m., 19th October, 1944.
1. NAVAL
NORWEGIAN WATERS. On 14th and 15th Carrier borne air-
craft laid mines off Norwegian coast. A grounded cargo ship of
3,000 tons damaged off Trondheim and two protecting flak ships set
on fire. 18th. TIRPITZ seen at Tremso surrounded by a boom.
HOME WATERS. 18th, During gale in S.W. approaches,
two landing craft sunk and three others seriously damaged. Ten
tank landing craft can now be handled at Le Treport on one tide.
Calais will accommodate five coasters when entrance has been cleared.
MEDITERRANEAN. 15th. Four of H.M. Cruisers with Des-
troyers and Minesweepers anchored off Piraeus.
2. MILITARY
WESTERN EUROPE. East of Cornimont, French troops ad-
vanced two miles on front of 6 miles. In area east of Epinal U.S.
troops have advanced one to two miles against stiff resistance.
In Aachen area U.S. troops made small gains in house
to house fighting in town and also in area N.E. and N.W.
On 2nd Army front British and U.S. armour advanced up
to four miles east of Deurne. British Infantry completely occupied
Venray and advanced further two miles southwards.
South of Scheldt Canadian troops have captured Ijzendijke
and are within two miles of Breskens.
ITALY. Heavy rain continues en both army fronts. In
Adriatic sector Canadian troops have secured small bridgehead across
Pisciatelle. Enemy centinues resistance just south of Cesena but
further south he has been driven back across Savio.
South of Galatea Allied forces made some progress and
reached within about three miles of the town.
3. AIR OPERATIONS
WESTERN FRONT. 18th. 127 escorted Lancasters dropped
611 tons Bonn in good visibility. 300 U.S. heavies dropped 777 tons
M.T. works Cassel; 139 dropped 347 tons on M.T. works and marshal-
ling yards Cologne; 42 bombed other targets. No enemy air oppo-
sition reported. 11 heavies missing and 10 of 604 escorting fighters.
958 fighters (13 missing) operated in support of ground forces. 464
aircraft carried supplies to continent. Six Mustangs engaged 6
ME 109 F over Aalborg and destroyed them all without loss,
18th/19th. 54 Mosquitoes despatched (1 missing) -
principal targets Hanover and Mannheim.
MEDITERRANEAN. 16th/17th. Heavy and medium bombers
dropped 179 tons Zagreb railway centre.
17th. 346 escorted Fortresses attacked rail centres
and other targets in South Eastern Europe including 241 tons on oil
plant Blechhammer. Sixteen heavies and two fighters missing for four
enemy fighters destroyed. 329 light bombers and fighters (2 missing)
operated in close support of ground troops.
4. HOME SECURITY
18th/19th, 23 flying bombs plotted.
Regraded Unclassified