Volume 835, April 6 - April 10, 1945

RECISION TRADE MARK MICROSTAT V. MICROFILM AOLL NO. April 6, 1945 10:43 A. K. A Mr. Dan Bell: Hello. HMJr: Hello, Dan? B: Good morning. HMJr: How are you? B: Pretty good. I'm very sorry to hear about Mrs. Morgenthau. How is she? HMJr: Well, she had a good night. B: Fine. HMJr: And she's improving. DIARY B: Well, that's good news. Book 835 HMJr: Yeah. It looks now as though I might be able to get away Sunday. April 6-10, 1945 B: Get away Sunday night? HMJr: Yesh. B: I see. Well, that will be fine. Will she be able to travel too? HMJr: Oh, she won't be able to travel. B: She won't be able to travel. HMJr: Vell, I'll come up to that engagement on Tuesday in New York. B: I see. HMJr: I can hardly hear you. B: I say, you'll be up here to keep the engagement on Tuesday? HMJr: Yeah. B: All right. Now there's quite a group here. HMJr: Well, just if there 1s anything important. I didn't want to call one after the other. Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM BOLL WO B C - 2 - - 3 - B: I want to tell you that I saw Fred Gehle in New York, and he said that it vas practically a sell- B: Well, I think no, too. out for your engagement at the Astor, HMJr: And this 18 my horse-back opinion that you people HMJrt Talk a little louder, Dan. should talk about. I think that it would strengthen our hand enormously before the Senate if we got it B: out. I say he said that there was practically a sell- through the House without any amendment. Than if we've got to do any horse-trading, let's do it in the Senate. HMJr: Good. B: Well, that might be. One thing I'm worried about B: At the Astor. I don't know whether that is dinner this whole picture is that it will be termed horse- or luncheon. trading or weakening of the Treasury position because there was one remark made yesterday in my conference HMJr: Dinner. with Aldrich that - oh, something about going along with the Treasury and permitting them to save their B: Dinner, huh? face. I said, "Well, just wait a minute. I said, "The Treasury doesn't have to save its face, this is HMJr: At the Waldorf. a matter of cooperating with everybody concerned, and certainly ve are not up here to save the Treasury's B: Luncheon at the Waldorf? face." And he said, "Well, maybe I used the wrong words." HMJr: No. I thought the Gehle thing was at the Waldorf. HMJr: Well, I'll read Luxford's letter, and I'll read your B: Oh, well, anyhow, he said that there vas practically letter and if anyone else wants to write any comments a sell-out. There's over 1900 ticketa. they can write me today. HMJr: Good heavens! B: All right. B: Yeah. I haven't anything. I could report on the HMJr: If White has anything he wants to write on it, but New York trip. I don't know whether you want to hear my own feeling as much as I've done now that we know about it. we've got the votes in the Banking and Currency ... HMJr: I'd like --- I told Luxford to write me the part B: Do we know that? he took part in, see? HMJr: Yeah. B: Yes. B: The papers all differed. HMJr: And then if you would write be the part that you had and send it down to me today. HMJr: No. Joe O'Connell tells se we definitely have the votes. Baldwin of Boltimore 18 going to vote. He B: I'll do that. told that to the chairman. HMJr: Then I'll have the whole picture. B: I see. B: All right. They'll come down together. HMJr: We've got the votes. HMJr: But my own feeling 1s this - I think we should move B: Well, I'd move slowly. Burgess le going to see some very slowly on what we agreed to. of his people today, I think Charlie Spencer, Aldrich - I don't nean Aldrich, I mean Les Hemingway and two or three others. Unclassified RECISION TRADE MARK MICROSTATI MICROFILM BOLL HO D 5 E - 4 - HMJr: You see, Burgess made me a promise once that he didn't HMJr: If my plans go through, I'll be in Washington on Monday. keep. B: Well, Burgess is all right on this when he talks B: Monday, yeah. Harry, Harry, to us alone, but it seems to me that he soft- pedale it when he talks to somebody that 18 strongly Mr. Harry White: Hello. opposed to it. HMJr: Well, suppose you write me in great detail what HMJr: Hello, Harry. happened. W: Hello. We are all glad to hear that Mrs. Morgenthau is better this morning. B: All right, we'll do that. HMJr: But it's understood up there, is it, that nobody HMJr: She's better. is to agree to anything until the bose pute his O.K. on 117 V: It vas in the paper that she vas taken sick. B: Oh, that's right. We told them that we had to HMJrt Other than in Leonard Lyons? bring back to you any recommendations that we might want to make, and that these were aerely V: Yeah. informal and off-the-record disquesions. Every- HMJr: It was? body understands that. HMJr: Well V: Yes. HMJr: What did the other papers say? B1 As a matter of fact, Burgess is in the same position because he's talking for a group too. V: No, no others as far as I know. HMJr: Well my own inclination is to get it through the House without any amendment. HMJr: Just Leonard Lyons. B: W: Yeah. of course, somebody picked it up today. Ahuh. HMJr: But I'll talk to you about it when I get back. I'll HMJr: I know where they got that too. have plenty of time when I get back. W: You dot I don't. B: Yes, plenty. Do you want to talk to anybody here? HMJr: Well, I do. HMJr: Only if they've got something important to talk to V: The meetings on the me about. No one has a thing. HMJr: Talk up, Harry. B: HMJr: V: The meetings on Germany are going forward and they've Who knows what is going on on this question of had long meetings - a lot of opposition, but they are reparations and then this revised 10677 Who's getting a little closer together. I spoke to - some familiar with that? of the FEA boys particularly were very difficult, following the Henderson line completely. One of He them B: (Talks aside) Harry and Coe both are here and they vas over there. I spoke to Cox at some length. both are familiar. Do you want to talk to them? agrees with us a 100% HMJr: Put Harry on. HMJr: Humph. B: All right. Harry wants to know if you are going to be here Monday tool Regraded Unclassified MICROFILM AOLL NO. - - 7 - - 6 - W: And he said that he would see that his boys get in line. HMJr: Yes. HMJr: Yeah. V: Is there anything else that you want? wi But his boys haven't gotten in line. I spoke to him HMJr: No, thanks. again about it, and he said he would see them again, but I gather maybe the one that ve have to talk to is W: All right. Anybody else you want to talk to? Crowley. I'm seeing Cox again this morning and I'll see, but in the meantime they are continuing to work.. HMJr: I just want Fitzgerald, please. HMJr: Yes. W: Mr. Fitzgerald. VI and we are beginning tomorrow on the reparations. HMJr: Hello. HMJr: Ie that the first time they are going to meet Operator: Hello. V: On reparations, yes. HMJr: Mr. Fitzgerald, please. HMJr: with Hilldring? W: Yes, Clayton couldn't have any time before that, he had to go to Chicago and 80 on. That was the first moment he had. HMJr: Yeah. V: And two other things -- Mrs. Klotz just mentioned that she spoke to you about Judge Rosenman's request and about the possibility of getting Treasury people over ther to make an investigation. HMJr: Yeah. W: Well, we are drafting a proposal up here for your consideration whenever you come, Monday or Tuesday, ve aren't taking any other action. HMJr: That'll all come under General Clay now. V: I see but it 1s a separate matter than what General Clay raised with you which -- it's a separate matter and you'll both want to consider them together, I imagine, but there is no need to answer General Clay until you come back. HMJr: I can't answer him because I don't know how. W: Yes, well, neither do we. In any case we're not doing anything. Regraded Unclassified TRADE MICROFILM sou NO. 1 - 2 . TREASURY DEPARTMENT readily accept it. He was particularly pleased with the provisions requiring the Council, the Governor WASHINGTON 25 and the Executive Directors to report to Congress within not more than two years on the operations of April 6, 1945 the Bank and Fund; whether or not they should be merged; and to nake recommendations with respect to any other changes that might need to be made. TO THE SECRETARY: Dr. Burgess then told Mr. Aldrich the various In addition to the conferences held in New points that had been discussed and the suggested York, referred to in Mr. Luxford's memorandus, asendsents to the bill which would take care of those Dr. Burgess and I conferred with Mr. Winthrop points, Mr. Aldrich said that it still did not settle Aldrich, President of the Chase National Bank, the main questions -- as to what to do with the British Thursday morning for about one hour and fifteen and the trade restrictions. We told him that these minutes on the same subject discussed with the were separate questions and could not be included in other representatives of the banking institutions. any bill on Bretton Woods, They would have to be handled at different conferences. Dr. Burgess explained that he and I both had been a little worried about the apparent rift between Mr. Aldrich then raised a few other questions the Treasury and the bankers and ve had discussed about the need for the Fund and its questionable the matter of getting the two together on some com- soundness, and the charge that the bankers had been promise basis, short, of course, of another world speculators in foreign exchange. Dr. Burgess under- conference on these agreements. Be went into his took to enever nost of these and expressed his opinion previous conferences with Mr. Luxford and Mr. Bernstein on two or three occasions that he did not feel nearly and his subsequent conferences with these two gentlemen so strongly as Mr. Aldrich had expressed himself. and myself and Kr. Sproul, Mr. Williams, Mr. Fraser and Mr. Potter and himself. He said that after point- I made it quite clear to him that all I was ing out what was desirable in connection with the trying to do in New York was to get the bankers and bankers program, he was amazed at what Mr. Luxford the Treasury together on Bretton Woods along the lines and Mr. Bernetein were able to do by amending the that Mr. Burgess had outlined, and told him that the present bill to meet the objections of the bankers. bankers and the Treasury had cooperated over the last He thought they had gone a long way and that while several years, and particularly had cooperated in he would still prefer not to have the Fund at all financing the war, and I thought that some of the problems but only the Bank at this time, he felt that a great with which we vill be confronted in the post-war period many of his objections had been removed. will be B.B. difficult, if not more difficult, than the war financing problems, which nade it vitally necessary He also told Mr. Aldrich that Mr. Potter and that the Treasury and the bankers continue to cooperate. Rr. Fraser both said that the memorandum that these I said that the bankers would no doubt hold approxi- boys had drafted, if adopted, would eliminate nany sately one-third of the debt, which virtually made us of their fears and BO far ae they were concerned they partners, together. and it was necessary for us to get along would be willing to accept it. Dr. Burgess then anked ne what attitude Mr. Sloan Colt had taken in the con- ference which I had had with him the previous afternoon. Mr. Aldrich said he thought we should get along, but be found it rather difficult to get along with POLYTORY 1 told then that Mr. Colt WRB most enthusisstic the Treasury. He said the Treasury was now bringing BUY about the memorandum and said he felt that he could suit against his bank which in his opinion vas not at PRECISION TRADE MARE MICROFILM BOLL NO. - la - - 3 - the Attorney General had told him that he vas com- all justifici. He thought the Secretary, having pelled to move forward because of a call from Secretary supervision over the national banks owed him the Morgenthau. duty when he found something wrong 171 the adminis- tration of Foreign Funds Control, to call the head I also told him that the report on the Chase of that bank to Washington and discuss those failings branch in Paris was not yet ready for the Secretary before filing suit. Certainly the Treasury does not but I hoped that it would be within the course of think that the Chase National Bank wants any person the next week or ten days, at which time we will in its employ who would violate Federal regulations determine whether it could be made available to the and he would be the first to fire such an employee bank. if he found that he was guilty. He said he had investigated the charges made by Foreign Funds Control He said be did not see why it took so long. They and he does not think there is any justification what- are just as anxious to get the thing cleared up B.B. we ever for the charges. This is borne out by the fact are and if anybody in the Chase Bank did anything that he did not fire the individuals involved and the wrong they want to get rid of him. further fact that he intende to fight the suit with all the power at his command. Also, the Treasury There WAS another matter to which he referred, sent examiners to Paris, France, to examine the Chase involving trading in Geruan marks, and helping out Bank branch there. They sade their examination and the Gernan-Japanese factions, with which I am not brought the data back to this country after having at all familiar. He said on this case he wrote the kept the Chase files for B. number of months. He has decretary of the Treasury early in 1941, saying that neked repeatedly to be furnished with the facts found he vas worried about it, did not like it, and would by the Treasury in its investigation of this branch, like to get the Treasury's views as to whether he but the Treasury refuses to furnish him any information. should stop it or allow it to continue. He said he He made it clear that he does not want the opinion of had a letter from the Secretary, over the Secretary's the examiners, but he would like to have the factual signature, thanking him for calling the matter to his data. He has no information concerning the branch attention and saying he would be advised if the Treasury or its operations during the occupation other than wanted him to take any action in the matter. what vas brought back by some individual concerning one of his managers, whom he fired as soon 88 he found I told Mr. Aldrich it seened to me that these out what he had done. As to whether other employees were cases between his and the Treasury and should not involved are guilty he does not know. in any way influence Bretton Woods, that what we were discussing now WILB a matter between the Treasury and He seened very bitter against the Treasury because of the American Bankers group and I would like to confine these two instances. He also said that wi thin B day it to that, but every time we started to discuss the or two after the ABA report came out, the Secretary matter of Bretton Woods, he would return to the manner of the Treasury called up the Attorney General to get in which he had been treated by the Treasury. Finally, busy in the Chase Bank suit, just about the time the conference broke up, he said that aside from all this discussion it was a good thing I told him that I did not think that that could for the Treasury and the bankers to get together. He possibly be any more than 8. routine check-up by the did not feel that the bankers had to compromise, that General Counsel's office of B. case pending in the they had made their case and by standing pat he thought Department of Justice, that this van being done about they would get what they recommended, but if it was a every month on our cases over there. matter of permitting the Treasury to save its face he vas willing to help out in this situation. He said he knew differently, that in this case Regraded Unclassified 6 - 5 - TREASURY DEPARTMENT I told him that it was not a question of saving anybody's face and particularly the Treasury's INTER OFFICE COMMUNICATION face. We did not think we were in a position where we had to save our face but I personally thought it M DATE&PRIL 6, 1945 was a good thing to get the bankers and the Treasury TO: Secretary Morgenthau together. If the bankers do not think that is FROM: S. George Little Ard. necessary, then we will go on our way, but certainly no one should enter this with the idea that they have to save the Treasury's face. Western Newspaper Union has sent ne the attached He seened to apologize for the remark, proofs of the article they are running on Bretton Woods saying that it WAS an unfortunate expression. I told him I agreed that it was unfortunate. But anyway, he which is scheduled to appear April 12. said he would take the document which Dr. Burgess had handed him, read it over and discuss it further in One set-up is for tabloid newspapers and the other the next day or two with Dr. Burgess and the group one is for standard size 8-column publications. that he was calling together for that purpose. He saw no reason why we should not proceed At we had This article will most likely appear in about 3500 done and if it forms B. basis for getting together he would be glad to cooperate. weekly papers instead of 2500, which was mentioned in The conference ended on that basis. our original report. ruB RECISION TRADE MARE MICROSTAT/ KSG. PAT. MICROFILM AOLL NO. Bretton Woods Conference Laid Groundwork For a Stable International Monetary System U. S. Postwar Exports Depend on Soundness Of Foreign Finances By WALTER A. SHEAD MNU tiat Correspondent. Stripped of all technical ver- blage, the proposals agreed upon by 44 United Nations at the Bretton Woods conference and which are considered an essential part of the world peace plan to be approved at San Francisco April 25, are designed to- 1-84 up an International - tary fund with . working capital well- anribed by 44 nations is gold and member carrencies Intalleg I.I M- Bas deliare of which the United Blavies is la asbacribe 1.13 billions. This fund is expected to sishiller and the value of foreign currencies is terms et gold, remove During . left to Che proceedings of the Bection Woods conference, trade barriers le favor of apen or U. N. Secretary of the Treasury Beary Margesthan (center) get tata recipracal trade agreements a per informal converention with the Hos. 1. L Bary, minister of Basace fee elde free and open trade among Canada and chairman of that mation's delegation (left), and M. a. Stege- member sations. BOY, chairman of the Ressian delegation These chain belped la Ire est L-Organise -- International hank many of the smaller problems, for reconstraction and development with a subscribed capital of 9.3 NA world price of whest or when com- One of the most important groupe liese of dollars of which the United miding in terms of our own dollars, - give approval to Bretton Woods States la to LITE billions. will - be seriously disturted by proposala is the Committee for Exe- Purpose of the bank la primarily la large Suctostions in the principal ex- semit Development beaded by Ped facilitate Relation of foreign lease to parting end importing countries. G. Hollman, president of the Stude- private capital markets by providing Stabilised Correacion. baker perporation This group, made International guarantees and to up of bankers. economista and busi- So the purpose of the international make long-term expital loans direct nass leaders would even EFFE the - minetary hat is to stabilize and la member nations for specific proje termational bank Birther power le promote . balanced growth of inter- ecta of recometraction and develop make Inans for long-term and short- matimal trade by stabilizing the ment. terms purposes, claim- value of all currencies in terms of Why the need for these safe- ing that under the present regula- each other: remove guards? Following World War I tions, the bank does ent have that harriers against making payments American investion took . besting, clear-cut power. arross boundary lines. such DE high There have been some auggestions and in the late little were caught in of uther trade restrictions; an epidemic of defaulta by tereign favoring the establishment of the end is provide . supplementary debtura. Under the Bretins Woods bank, but paggesting that setting vp enurce of foreign exchange to which and operation if the monetary fand proposals, these foreign would . member country may spoke for be delayed until conditions abroad be investigated by the bank and then the explatance necessary la mable guaranteet -- to principal and in. settle down is commality. DI is point- is to maintain stable and annestriet- et an however, that the bank and tenal by the foreign government et relationships with oth- and the benk. Risks then, of Intere- the had are rinely related. both to et member countries. national loans. would not fall on in- concept and inganisation and that For instance, in some countries Vestors Chartaches, - even on membership in the bank la open ety any and country, but upon all of importers are not permitted to pur- to those who are members of the the 44 member countries. Obvicus chase dollars required to buy goods B. a also pointed out that the is the United States. In other toub- by the objective of this guaranter of bank is to . considerable extent, loans la to encourage a aubatantial Irles, of which Germany - an 11- dependent upon the fund for the res. volume of private international in- smple before the war, foreign trade and that the fund must first - vestment which is essential to our - disrupted by use of so-called Bah values di the moneys to be own economic well being. multiple nurrencias, - berier - leaned by the bank if there is to rangements, and during the - be a amouth imprange planning and Great Need for many new resitictions have been Investment program. France. Maly, Number, Puland, devised because of millery While most assund Fisland, - large sity, there - be - erstem of area of Russia, the Belson The operative of the montary had international control or agreement large sections of England China, is Intended to remove all the - after the war, the only allernative much of India and Burms, plus the strictions and set - . signdard and offered has been . system of bloe Anta nations of Germany and Ja. milore practice, currency value agreements There are regarded by pen. have been Inid waste by the and exchange rates - than Amth many se dangerents. since such Mee war. their productive facilities prop Iran business may have the granted agreements likely would lead to a trate, their estrencies depreciated. possible freedom in international world divided politically and - and many passe will be required for trade is the postwer era. The same nimiesly, Eventual sendict be them to rebuild their export India freedom la intended le be provided Sere prope world be tries. They will require as for bestiness is the alber Change for Leadership. (Asil to en under way, for freedom of business would be Pointing to the Indership the in our even country we have # the meaningless unless other coun- United States line maintained during mendously enlarged productive in tries accorded as equal consults of the war. Biral experts bere declare dustrial plant. Our agricultural pro- freedom is their - people, that never before has this nation DC- didertion has reached . new NUR of There has been critivism simed expled will . key possion or had afficiency. After the war our - as these proposals from some bank- net an apportanity - take over nomie gelicy will be aimed as full are - the grounds that Our are world landership in the aconomic Regraded Unclassified make capital lesse direct monetary fund in to elabilise and to member mations for prop. ternalized tast further power to premose , balanced grown of inter- TRADE MARK MICRO esta of reconstruction and develop make Issue fir long term and national trade by sisbilizing Be - term debitation purposes, claim- value of all surrencies in tentos of lig that under the present regis- Why the need for these safe- each other; progressively remire Uma, the bank does not have Dat guards? Following World War I barriers against making paymenta American investore took . besting. clear-cut power. aircuss boundary time, such " high There have been - suggestions and in the Late 1930s were cought in tastiffs of other trade restrictions favoring the establishment of the an epidemie of defaulte by feeeign and to provide . explementary debitera. Under the Direction Woods best, but supporting that setting - source of foreign exchange la which and operation of the monetary hand proposals, these Bereign loans would . member country may apply for be delayed until readitions street be investigated by the bank and then the assistance necessary to enable settle down to commatity. is is point- passented as to principal and a is to maintain stable and unreatriet- ed out, however, that the bank and termst by the foreign government ed exchange relationships with oth- the hand are clossly related, both - and the best. Risks then, of Inter- 47 member countries. consept and organization and that national loans, would net fall on in- For indunce. in - countries membership les - bank Le open only verions Chemselves, not even on importers are not permitted la par 50 these who --- members of the any and country, that upon all of chase dollars required to buy goods fund. n is also pointed evt that the the 44 member countries. in the United States. In other coun- bank is. so a ensaderable extent, by the objective of this guarantee of tries, of stich Germany - as ex- dependent upon the thand for the FRA- loans is to encourage . substantial simple before the war. foreign trade son that the fund most final estable vohine of pervate international in was dangled for - of assisted 24% values of the manage to be vertment which a essential la our multiple currencies, or terter - transed for the bank if theirs a to own seunomic wed being and during the war be . pienning and Great Need Bee may new restrictions have been investment program. France. faily. Newsy, Priend devised because of military name- While most sound economista Finishi. a targe sity, agree there nut be same system of area - the Balkam national The operation of the maintary fast international control or agreement surge sections of England, Chita. is intended le remove all these - efter the war, the only alternative much of India and Burma, plus the strictlies and and - . standard and offered has been - quim of Not Axis nations of Germany and In practice, currency value agreements. There are regarded by par. have been Inid vaste by the and rechange reles " that Amm- many as dangerous, since such blue was their productive bellin prop. train business may have the greated agreements would lead to . trate. their surrencias depreciated. possible freedom la international world divided politically and - and many years will be required for trade la the gostwar era. The name servically, Eventual condict be them to retuild their export india- freedom - intended la be provided these groups would be tikely. tran. They WID require tureign cap- Our treatments to the ather reservies. Clance for Leadership. jtali to get under way. for freedom of besiness would - to the leadership the In our - country we base a the meaningiese unices Ibrae other come- Dailed States to mantabet during membristy enlarged productive lb- tries accorded an equal measure of the war, final experts here declare duertal plant. Our agrieviment pro- freedum la their --- people. that before has this servion as- dutetions time reached . - bight of There tax term entricism simed exquied such - key position or had efficiency. After the war AMT - all these proposals faurs serve her/s- such - opportunity to take over policy will be airried at full ETS on the grands that they are world Insdership in the employment and full utilization of company to - and established Belid. Gevernmental leaders. institud- Fir and initiatrial hell- tanking practices. There bis been ing Secretary of the Treasury Monty mes. To resise these alma sew proise and approval trom other Mirgenthau. upon the Itretton colleta for the products of firm and bankers. Woods agreements - just - - factory must be frund and these that - world and serveity -- pentrate foreign contrier provide As . matter of record. eriticiem - restr market providing that from bankers, at lesst some barit- Time Disiberson agreementa. American experts take the time of me has seen directed at any Secretary Mergenition matriates Anerica investments atrent-gred departure from established custom, they are importable. Heren his - that is currom and provider estab- gent appeal to the congress for legia- American dellare-for e these - tione are to ter # large vilume of lished by the bankets Benselves latima which will this nation's INT productive marking. sur in- For instante, some banking groups participation prier to the world - dustrial and agriedional producta in entitied bask deposit insurance. ley at San Francisco April as Criticim was almed at government Acceptance for the simgress of the immediate postinar period, qualified Isins - homes and these agreements before convening American investions will have to part of the purchase manager. Under farma: all 20-year base on homes if the delegates of United Nations The functions of the international when the custom and been 3 to a at 5am Francisco, these Sendata say, years et 4. and 5 per vent Interest would be taken ⑉ . happy sugary of tasit, these investora will nave the assurance that these investments rains, when the proctice had been this nature's sincerely, Is would give # to # per cent and higher. These to an that the United States, ⑉ und --- practices sodage, however, are an instead of choosing into Under the operation of - mase- repled pars of am domestic - tion, which would invitably lead is tary fund, as disingelshänd from the bask, for the protective of est is- ema political isslation. la already on nee- and with . determination to do our resions, currencios la all these com- Criticiem tran the langer Interna- tries mest be siabilied is terms of finnal bankers bai been directed et part toward the attain nest of world poste and security. gold et et equitable rates of FB- the Woods as in - special message to the - change. The Cented States buide 48 doubt because governments will - gross Fatruary 23, President House- per cent of the world's gold empply. tast fiscal and minetary policies - will referring to the Bretten Woods Economisis print est there must be se international seale, and also be propossis. said: "It la time for the elimination of exchange cause prierest retes under Date pro- United States to take the lead in of detiminatory exchange prac- pensis will be lower establishing the principle of etxem- lices, of competitive currency depre- t. a. Benefita Mark H as De financiation for clatines, if the American dellar la Another criticim tas been direct- expanded world trade We propose la be protected. et at the bank and the had because le do DIA - by marring uge # For instance, how can the Ameri the Unlied States is the largest nub- experpresement but by interna- lean furmer be protected in the seriber, II is urgued tere, however, and agreement. e vom market di à whest pro- that from any fair stantard, this revied to the improvement of the during esentry ein - Runia and muntry should be the largest sub- monetary institutions of the world Argentina can resort to monatary acciber benefits - have more to and the laws that govern. trade action which places the whent pro- goin than any other country. We the international tund and bank to- dueste of those evanings in a pre- save the money to lent. VI have gether represent the of the meat derred position with respect % Amer- . large part at the world's gild and and and until propossia for in- less whist exportres? If the Amer- we have the facilities no other na- terretional saw before loin farmer la to continue to export - has to provide export goods la when or any other commodity, and the immediate postwar period. Last- And that a what the Bretion to receive . fair price in good Amer- be we Save - untersched by the Words proposia are designed to do ican dellare for the product be sulle revages of war Insider ## - may a product of the best minde of at home, - must know that the termisi weslth Le concerned. the H United Nations of the world. Dr. II. il. Kang, misister of 1- nance for China and chairman of the Chisese delegation, talks ever las termational fasser via Lend Keynes of England, famili - miss and manuary authority, who brade Live Brittis grang of delegates, Chinese cerreary has bees deval- und by influition, . result of the long war with Jagan. Brich sent- - are concerned about Chinnes stability, not only as part of the world montary struction. bet because of the extensive bestense inferesta to China, Special Feat. No. 7-4514 Regraded Unclassifie Bretton Woods Conference Laid Groundwork For a Stable International Monetary System granicle a bulanced growth of inter- U.S. Postwar Exports Depend Upon national trade by statituing the value of all in terms of Soundness of Foreign Finances each other: progressively remove barriers against making payments terminary Times, surb as high By WALTER A. SHEAD service policy will be simed at tall units or other trade restrictions, MINU num employment and full utilization at and to provide . supplementary Stripped of all technical ver- - agricultural and industrial facil- courre of foreign exchange to which biage, the proposals agreed the To realize these sime here - member country may easy for outleta for the producia of farm and the assistance necessary to mable upon by 44 United Nations at factory mm be last and these # be maintain clable and unrestrido the Bretton Woods conference provide Reviga countries provide ed exchange relationships with ath- and which are considered an a ready might providing that of member essential part of the world American exports take the form of For instance, - sume countries pence plan to be approved at Americas investments abroad-gand importers are - permitted to pur- San Francisco April 20, are Americas dellars-fie if Best - dase dollars required to to ginde designed 10- time also tax buy a large volume of in the United States. in other couti- 1-51 - as international mane- - productive our in- tribe, of which Germany was an - tary fund - . working ospital sab- dustrial and agriesiberal products in emple before the war, formies trade seribed for 45 estima in gold and the immediate period, was disrupted by nie of as-called member correctes totalling M as Americas investore will have le land multiple currencial er barter en- Des dellare of which the Delind part at the purchase money. Under rangéments, and during the var States is to witerthe 2.73 situas. the Bestims of the international may - restrictions have been This fund is expected la siabilite lank, these investors will have the devied because of military and safegund the estar of tereign assurance that these investments sity. correado la terms of pit. semere are assend and remunerative The operation of the manufary fund trade Barriers is laver of - - Under the operation of the mene- la intended to remere all these - Daring . lall is the proceedings of live Bretion Woods recipient trade agreements 9a. give strictions and set - a. standard and P. 5. Secretary - the Treasury Heary Mirgretian (venter) est isle tairy fund. as distinguished from the uniterm practice, currency value Informal conversation with the liss. J. L Bary, minister of - to vide free and ages trade among bank. for the protection of ⑉ in- member caties. correncies - all these coom and exchange reles - that Ame- Canada and chairman of that nation's delegation and M. 5. Rejer 1-Orgasive - international bank tries mest be stabilized is serms of tram business may have the greatent ass, chairmas el the Resular delegation These chate kelped to Irea not for reconniraction and development gold and at equitable rates of ex- possible freedom in International many of the smaller problems. with a subscribed capital of 9.1 change. The United States holds 00 trade is the postwar era. The sure b. we have been unisuribed to the agreements likely would lead le - Tiona of dellars of which the Daited per cest et the world's gift supply. freedoms la intended la be provided revages of war 4a - mar will divided politically end - States is la formish 2.175 billions Economials point est there most be For besiness in the alber countries, terial with is reserved. Evental confiri be- Purpose - the book is primarily a climination of evelunge for freedom of well le One of the - important - l'ensen three DND would be likely, facilitade Betwing of foreign Issue to of discriminatory exchange prac- meaningless unless three other coun- in give address to Bretise Weeds time at competitive currency depre- tries accorded - equal messure of Change for Leadership private capital markets by providing properate la the Committee las Freedom la Bein - people Puning la the traderable the International guaranters and la claims, if the American dellar is name Development, beaded by Past United Hates has maintained during make Implem capital Insure direct to be protected. There tax best criticism atmed G. Haffman, president of the Stude lse WHIT, fural experta here declare to member natives for specific proj- For instance, how can the Amer- an these proposals from some bank- baken eorgoration This made (tail REVER before has this nation - ecto of reconstraction and develop- be protected in the en M the that they are up of basibens, economists and - such . key or kid ant. world market if * siguide when pro- celtrary to and end established - would - give the - marks as opportunity If lake our The the need for these safe during bountry such la Reserve que backing practices. There has been termational bank Birther pover M - in the economic DHIGT Fellowing World War Argestisa Can removi 18 monetary produce and approval from other make tasta fir and short- Self. Commental leaders. intludi American investore - . besting. active which places the whered pro- handers. term dabilization purpose claim- no Secretary of the Treasury Berry As . matter of record. criticim - that under the present regular look upon the Bestim from binkers, al name hank- Doma, the back does - have Del Words agreemente is just - - BREE so seen directed at any pover the is wirld peace und - NO deporture from entablished custom, The Committee frir De the Dumberion Osta agreements en all milem and practice estable relepment in - compartions Secretary Morgenthau - labed by the bankers Mon. independent and month - the im inveparable. Hince his IX For instance - sacking groups gasized by M elimidate gint appeal ta the congress for legie criticiand bask deposit insurance planning for high-level productive falion which will insure this nation's Criticiam was armed et devernment employment after the war. and las participation prior to the world - parranted Bonns on homes and more then Las county and cumme les al Sen Francisco April a. Earrer: at 30-year Sourne on any registrations the Acceptance by the expess of when the custom had been 3 to a mustry. these agreements before convening years as 4 and $ per cent Interest Back of the delegates of United Nations rates, when the practice bed been There have been some auggestions at Sen Francisco, these leaders MAT. % to a per cent and higher. These terming the establishment of the would be taken as a happy sugury of predices breever, are en ao bank bit registing nas setting - this nation's sincerity. If would give Dr. IL It. Kong, minister of Enance for China and chairman of the expled part of our domestic and operation of the monetary Fundi estite to all that the United States, Chinese delegation. talks aver Informational finance with Bard Kryws of any le delayed entil conditions aboved instead of threeing issia- Explant, famed economist and monetary authority, who leads the Britos Criticiam fra the Larger interns- settle down to sumality, BE a point- lim. which would inevitably lest a prop of delegates. Chinese cerrency has term devalued by infalies. a - benters has tem directed at ed nd. towner, that the bunk und palitical inlation, la already no DEC- mult of the lang was with Jagran. Bellish are conserved alost the Betten Words propossis, DO the And are classity related, both in ent with a determination to do - Chinese financial stability, - part of the world mustery vilus docts because premmenta will can- concept and organization and that part toward the attainment of world liam, bet because of Der estenaire Bettish basiness intereste to China trol teral and moteriary policies en mondership in the tank is ages only prote and security. - international scale, and also be- to these who are members if the is . special message to the con- and is De liste were eangli is docers et thate countries in . pre case interest rates under these pro- fund. It la also printed et that the greas February 20, President Room an epidemic of defaulte by foreign derved position with respont to Anur- will be lower. best is la a residerable extent, well. referring la the Brethio Woods debiars. Under the Dretion Woods - wheat exporters? If the Arges Another certicium tax been direct- dependent upon the fend for the zea- proposals, said: "If M time for the proposits, these fineign inses would can darmet il la - - export ed as the bank und the fund because - that the fund - fest estab- United States to take the lead - be inmestigated la the hack and then start = may ether community, and the United States is the largest not- lists values < the - to - establishing the principle of paranteed - is principal and in ta zeceive a fair prior to good Amen- arriber. It is argied here. bowever, loand by The bank if there in to It corperation -- the foundation be termi by the foreign government leas dallare for the product be mila that from any fair standard, this be , smorth long-range planning and expended world trade We propose and the bank, Risks them. of inter- at home, be must know that the country should be the largest - investines ameram. to do this, not by - we . - loans, would net tall on in- world price of wheat of other com- serviber because we have more is While main - economicia but by interna- resires themselves, - - on modify in terms of our own dellars. pin than any other country. We agree there mail be ayalem of Hassi and agreement, 4b any - country. but upon all of will net be arriously disturbed by have the money to lend, - have international control - agreement recied to the improvement of the the H member countries Obvinie large finctuations in the principal - a large part of the world's gold and after the war, unity alternative mindary institutions of the world to the ebjective at this guarantee of parting and importing countries - have the facilities no other ne- offered has been . exviem of bloe end the that givern trade leans in to - Sq the purpose of the international time has to provide export guoda in agreements These are regarded by the unternational tell and tank to volume of private international - minetary fund is to stabilize and the immediate postwar period, Last- many as since with bloo other represent - of the must restrient which la expential to our seand 1 uneful proposala for - ave economic sell teing. terrational collaboration now before Great Need for Rebulling. With Full Employment, People Will Buy More Farm Products un. And that is what the Beetten France, Italy. Norway, Polard Fisland, Caschoslovakia, I large In Peace Than in War, Sec. of Agriculture Wickard Predicts Write proposia am designed has de a product of the best minda of Area of Bussia, the Balkas nations, Secretary of Apriculture Claude truck crops - indicated and approx- the INI figure without any allow the 44 United National of the world. large sections of England, Chira, Wirkard declared recently the pres- imately 4a per cest for pork usd ances for firm pro- much of India and Burms, plus the est level of per capital resemption land. la products, grame II payments. Comfert Weanded Asia nations of Germany and Ja. of farm products is not # the meas- - of and is experied to rise about As regards subsidy payments, One of the dutons of the air theme- pas have been Inid waste by the une of what would be bought - one-third and entire by about case- there a tome possibility et . N- port command chaplains is meeting war, their productive facilities pape- mally under full employment, be- enk. vertal of policy in the For the many tropital planes that fly trate, their currenties depreciated. couse rationing is building down - Mr. Wickard explained that whing instance Sex Robert A. Taff of ONE from the to hospitals and many years will be required Due chases et many kinde of food increase in national pepolation into told the redate that the and cont carries tack in the United them a rebuild their Full employment in the postwer account. and making allowance for could sive $560,000 000 by permitting States. In all kinds of werther and them. They will require tomigo cap- era, according to the secretary. will net exporta, requirements of every meal prices la the for of Eve certs at all hours of the day and night, stat to get under way. mercase dairy product consumption majore agricultural commodity - - pount in lieu al máxidies The the ATC chaplain is - hand with to our own country - have . tre- about 12 per emt higher then in any exegat. potatoes will be considerably government could save $190,300,000. the night surgeon and surse to serve mederaly enlarged productive - prewar em & aimilar increase is higher than the average for the five be and by permitting price of bread the spirifical needs of the worded dustrial plant. Our agricultural pro- likely to bed and real, and slight- years before the war. Bia Indicated to increase use cemo a pound and man and with them Godapeed to dustion has reached il DEW high of by higher increase for PERK A plus as be expects farm cash insure $400,900.000 by increasing price of the next stop in Bein journey afficiency. After the war as aco- of about B per tell consemptions of to be as per cent of milã two conta. Tabloid-4514-Page One-Special DRY MAT PATTERN RUTHER Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ OFF. MICROFILM sou NO. 12 MEMORANDUM FOR THE SECRETARY. - 2 - April 6, 1945 Memorandum for the Secretary. Mail Report April 6, 1945. Much of the miscellaneous mail concerned inter- With no new subjects to spur it on, mail fell national affairs such as the Bretton Woods Proposals, short of the summit it reached last week. Receipts peace terms, and postwar plans. Among the last, there dropped off evenly along all lines, and very few of continued to be both approval and disapproval of the the letters that were received offered material for so-called Morgenthau plan. the week's abstract. There W&S still quite a bit of interest in the Although mail receipts from the White House during March showed small increase over those received in Treasury's drive against tax evaders, but most of the communications on this subject were anonymous and February, the total of 220 letters was still quite low, merely named individuals or businesses that should be particularly in comparison with preceding years in which receipts for March have usually ranged from 500 investigated. Several of these unsigned letters, and to 700. Fifty of the 220 communications were acknowl- a. few signed ones as well, urged the calling in of edged in the Correspondence Division, and the others large bills, to curb blackmarketing and tax evasion. were re-routed or filed. Outstanding in other tax mail were the protests against tax exemption for co-operatives, which, it was sald in n. number of well-written letters, could be a source of substantial Federal revenue. The Seventh Drive W.L.S. again the most popular bond topic. Further replies to the form telegram of March 13, Peason and to the banking institution letter of March 20, continued to give assurances of cooperation, 0.8 did the responses to the more recent letter sent by the War Finance Division on March 26. Several writers submitted poems or slogans for use on the Two Jima poster to be used in the coming drive, and others suggested new types of bonds that might be offered. Two additional Industries wired that they had already exceeded their quotas for the Seventh. The general reduction in mall this week also brought & decline in the number of complaints about delays in receiving bonds, interest, etc., and only half a dozen bonds were forwarded to this office for redemption. Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ MICROFILM NO. - 2 - General Comments are for sale. We wish to take this opportunity to commend you in behalf of our Association on the manner WSgt. Herman Antis, Italy. Please accept the en- in which you are carrying on the sale of surplus closed United States Postal Money Order for $2.00 as properties. We think you are doing an excellent job B. gift to the United States from an overseas soldier and are glad to help our members and subscribers by who appreciates more and more each day what a great, listing the properties for sale in the magazine. just country he left behind. Nicholas Bela, Executive Secretary, National Origins Harry C. Westover, Collector of Internal Revenue, Council of America, Los Angeles, California. At the Los Angeles, California. During the past several membership meeting of our Council, held on March 26, months we have been receiving letters over your signs- 1945, a resolution was unanimously passed by the ture relative to matters concerning employees of the representatives to support the Bretton Woods Agreements Treasury Department. I want you to know that these 8.5 is. I have been authorized by a vote at the meet- letters are greatly appreciated by our personnel, and Ing to extend to you the organization's full backing, We are all cognizant of the fact that you are concerned and to congratulate you on your great work of out- with our welfare. I know you are interested in any standing statesmanship. We request that you send us program which will build up the morale of those in this material on the Bretton Woods Agreements in adequate service, and your letters are certainly accomplishing quantity to educate our approximately 90 member their purpose. One of the things which we have had to organizations. contend wi th during the past few years has been the In- equitable differences between the salaries paid to members of the Internal Revenue Department and those Charles W. Davis, Detroit, Michigan. I am enclosing paid to employees of war industries. We have lost many Disability Compensation check for $50.00, "Payable to of our best employees because they were offered greater the Treasurer of the United States for War Effort". opportunities In private industry, and anything that I am pleased to return this check to be used for War can be done to increase the financial reward of our em- Effort, and will continue to do so whenever possible. ployees will, I an quite sure, work to the betterment of the Department. Our personnel is very much interested in the Bill introduced by Senator Downey, and we trust that before many months this Bill may be enacted into law. We all look forward with anticipation to your letters. Roy A. Gould, President, Timber Operators Association, Mayfield, Washington. We have been advised that our publication, The Timber Operator, has been brought to your attention and that you are pleased with the manner in which we are advertising surplus war proporties that PRECISION TRADE MARK MICROSTAT/ OFF. MICROFILM sou NO. - 8 Unfavorable Comments on Bonds - 4 - Lewis C. Nelson, Connerce Building, St. Louis, Missouri. Lester G. Saeman, Attorney, National Surety Corporation, My brother, Lieut. James M. Nelson III, U. S. Coast New York City. On December 1, 1944, the messenger of Guard, is at the present time and has been for approxi- the Security Bank, Louisville, Kentucky, enroute to mately the past nine months, on active duty in the the clearing house WES held up. Among the Items Southwest Pacific. During his absence I have been tak- taken was a number of Series "E" War Bonds as per ing care of his business and other affairs for him and list attached to this letter. These bonds were cashed have in my possession a Power of Attorney, properly by the Security Bank for the amounts shown on the at- executed and acknowledged by his Commanding Officer. tached list. Each bond has 8. rubber stamp notation # # Today I attempted to present for redemption to the on its face that the bond was paid, On the same day Federal Reserve Bank of St. Louis one $50.00 Series "E" the robbery occurred the Security Bank wrote the Trea- War Savings Bond, registered in my brother's name. sury Department, Division of Loans & Currency, Mer- I presented to the Federal Reserve Bank the original chandise Mart, Chicago, Illinois, advising them of the executed copy of the above-mentioned Power of Attorney. theft and ordering payment stopped on the list of Series I WILD told that this Power of Attorney could not be "E" Bonds attached to that letter. On December 12, honored and that no Power of Attorney whatever, regard- 1944, I wrote the Treasury Department at Chicago, in less of how drawn, would be recognized by the Treasury which I requested payment stopped on the bonds and the Department for the redemption of War Savings Bonds. proper procedure for the Security Bank to recover its I was told in order to redeem the $50.00 bond it would money. No answer W&S received from the Chicago office be necessary that I mil Form PD 1522 to my brother in in response to my letter of December 12 nor the Security the Southwest Pacific for his signature. I have used Bank letter of December 1, 1944. I wrote our National the above-mentioned Power of Attorney many times in the Surety Corporation office at Chieago to make a. personal past few months to sell shares of stock owned by my call on Mr. A. E. Wilson at your. Chicago office. I was brother, to withdraw funds from his bank accounts and told that the matter was given attention and in February to transact various business in his name. I desire to I received n. letter from our Chicago office advising protest strongly against the perfectly ridiculous regu- that the matter was being referred to Washington for lation of the Treasury Department that will not allow decision, and that I would hear from some one within a perfectly valid Power of Attorney, executed by a man the next two or three weeks. Since then I have heard fighting for his country overseas, to be used to redeem nothing from anybody. ... obligations of the United States of America. If the Transfer Agent of a large company will recognize this Power of Attorney, if a bank will recognize it, if first William 1. Weaver, President, The Arabol Manufacturing class legal talent declares that it is in all ways valid Company, New York City. This acknowledges your circular and binding, It is beyond the powers of human conception letter of March 26th announcing that the Seventh War why the Treasury Department refuses to recognize it as Loan Drive will take place shortly. We wish to assure you such. My brother has been for the past several years, that this company and its employees will again do its and still is, purchasing & $50.00 Series "E" War Savings share In helping to make this Drive a success. However, Bond out of his salary every month. Unless this perfectly there is one thing I would like to point out to you ridiculous regulation is changed I will be forced to which might have some bearing on the sales to our en- write him and advise him as & matter of sound business ployees -- during the past two years the Board of not to buy any more U. S. War Bonds. Directors of this company authorized the payment of 8. two weeks' Christmas bonus to this company's employees. We suggested payment to the employees of one week in cash and the other week's bonus to be used by the company RECISION TRADE MARK MICROSTAT/ MICROFILM BOLL NO, - 6 - - 5 - Favorable Comments on Taxation on behalf of the employees to purchase for them U. S. War Savings Bonds, which we agreed to hold until after the War, and the Salary Stabilization Unit of the Treasury Department denied our application for Herman Steinbruch, Radio Advertising Manager, VARIETY, the second week's bonus. New York City. In my opinion there is a perfectly If this had been approved it would have resulted in the purchase of possibly legitimate way for the Government to handle the $8,000 U. S. War Savings Bonds each year. We did not "royalty" matter recently precipitated by Petrillo write letters this year pertaining to the 1944 Christmas and Lowis. Until such time as legislation is enacted, bonus but we contacted the Treasury Department, again outlawing royalty assessments by labor unions, the making the proposal that the second week's Christmas Treasury Department can and should enforce collection bonus be given in U. S. War Savings Bonds, and we were of taxes based on income from such royalties. Form again rejected. I an just bringing this to your atten- #990, currently used by organizations exempt from tax tion at this time so that you can see that our employees provides 5. suitable space under Item 6 (Page 2) titled do not feel so kindly toward subscriptions to War Bonds Gross Receipts from Business Activities", for listing when they are denied the privilege of receiving extra such income. Since revenue resulting from royalty pay- funds to purchase them. ments, irrespective of the source, and regardless of the purpose for which used, is clearly Income, It should be reported 5.5 "income from royalties". While the on- Howard J. Chidley, D.D., Winchester, Massachusetts. forcement of such tax collection might be tantamount I received your recent communication about the coming to admitting the legality of royalty assessments by Liberty Loan Drive. If this is a trial balloon to labor unions, the position of the Treasury Department test the sentiment of the churches, being used by the La clearly defined and might serve 8.8 a warning. New Deal to further its interests, I will say in no uncertain terms that while I an heartily in favor of giving every support to the Arned Forces, I am not In favor of having the church used ns n. government agency, especially in a country where the church and state are separate. Rather than have my church used in this way, I would die on its doorstep, fighting for its liberty. The New Deal has laid Its hand on judiciary, industry, radio, newspaper, education, and what-not. ... Regraded Unclassified PRECISION MICROSTAT MICROFILM 7 - - 8 . Unfavorable Comments on Taxation Claude R. Bossler, Johnstown, Pennsylvania. I an one of United States Steel Corporation's Poor Pensioners. William H. White, Jr., Clark Hall, University of Virginia, They are supposed to be paying me $148.00 & month, Charlottesville, Virginia. I recently read with con- but they deduct $13.00 & month as a withholding tax siderable interest that the Bureau of Internal Revenue I have to pay on that little pension. With the cost was making a study of the so-called cooperatives. of everything my wife and I eat and wear going up in I happen to be B. director of a company engaged in 5. price, that $135.00 5. month doesn't go very far. highly competitive business and among Its competitors There should and must be some relief for the little are many so-called "furmers" co-opa". The corporation, pensioners who must live on e small fixed income which I referred to, in 1944 will pay to the United which continues to shrink. States upwards of one million dollars In taxes, whereas its cooperative competitors will pay nothing. The dis- advantage to which the taxpaying corporation is subjected is perfectly obvious. Let me give you another illustra- Mrs. Henry A. Gosan, Carolina Beach, North Carolina. tion. I happen to know of an individual carrying on n. Around the middle of February, I received a statement very successful business largely on borrowed money. from the Collector of Internal Revenue, Brooklyn, New His business is so successful that he la in a high tax York, of an indebtedness of $27.13. This was supposed bracket, with the result that after paying taxes he has to cover that part of my husband's 1943 income tax, 50 little net income remaining that he is unable to re- payment of which I was permitted to postpone until duce his bank obligation appreciably. He now contemplates March 15, 1945. I immediately wrote them that since turning his business into a "co-op" in which he will my husband had entered the Army in August 1942, and still retain a very large interest. The result, of our income since that time has always been below the course, is self-ovident :: no Federal or State income taxable minimum, I could not understand the charge tax to pay, so the bank loans my be promptly paid off. and requested 8. clarification. Although I had received # e 9 Undoubtedly an amendment to the income tax law to no reply as the deadline date approached, I decided include "co-ops" will meet the opposition of the "farm to pay it anyway, just to be on the safe side. On block"; but after all, why should not these "co-ops" of March 10, I sent a check, at the same time repeating many types, which compete with legitimate taxpaying my request for an explanation. Subsequently, my corporations, bear their share of the expenses of Govern- husband, who is oversess, wrote me that be had reviewed ment. If fairness is the basis, then, of course, there the matter last year and found that he had no further is only one answer. They should be taxed precisely like indebtedness and filed accordingly. Therefore, my the corporations. payment was erroneous. Although it is close to 3 months since I made my original inquiry, I still have received no reply. I think you can well understand that with my husband in service, I have difficulty enough just making ends meet and can ill afford to make any un- warranted cash outlays. I therefore appeal to you in the hope that you may be able to arouse my local office, at least to the point of acknowledging receipt of my communications and trust that a refund will be made ES soon as possible. PRECISION TRADE MARE MICROSTAT/ MICROFILM NOLL NO. SECRET March 29, 1945. MENORANDUM FOR THE PRESIDENT Office Memorandum UNITED STATES GOVERNMENT Subject: Propos ed Lend-Lease Arrangemente DATE April 6, 1945. with Belgium and the Netherlande Mr. SECRET Hoffman, Treasury Department to 1 We have been discussing lend-lesse and reciprocal PRIM : Mr. fee Patter, LP, State Department lend-lesse with representatives of Belgium and the Netherlands, Having signed the 3-0 agreement with France, we feel that political considerations make it subject desirable to have agreements on similar lines with In accordance with your request Belgium and the Netherlands. In each case the gold in our phone conversation I an enclosing and dollar position, the future balance of payments, e. copy of the memorandum presented to and the volume of reciprocal aid would be taken into the President on March 29, on proposed account. lend-lease arrangements with Belgium and the Netherlands. AB you know, this was We have worked out a Belgian-Luxembourg proposal approved by the President. of a relatively eneller amount than the French agree- ment. The proposal contemplates $325 million for the remainder of the calendar year and follows in general the pattern of the recent French agreement, with no item for transfer of title to ocean shipping. Ve are also examining proposale for the Netherlands. In each case the nature, extent and duration of lend- lease will be determined by the contribution which such aid vill make to the prosecution of the war and we shall provide for periodic review of the program in the light of the changing var situation. Consi- deration is also being given to an arrangement with Norway. If you approve, we shall immediately move forward with the representatives of Belgium and the Nether- lands and possibly Norway looking towards early con- clusion of such arrangements. We do not intend to conclude any of these agree- mente until Congress has approved the extension of the Lend-Lease Act. Enclosure. Acting Secretary of State Secretary of the Treasury Foreign Economic Administrator Regraded Unclassified TREASURY DEPARTMENT 23 INTER OFFICE COMMUNICATION DATE April 6, 1.45 TO Secretary Morgenthau (For information) FROM Mr. Coe P.C. This is an important erticle on what the Ruhr industrialIsts my be trying to do. TO ON One of the Burt Thinks - correctigator of current trade is the is the - tent to which thought on the que- state has Use crystallant. separate There la striking upenimity among those on the boundaries and the form government of the proposed we state They feel that the United Males and britain own Generary . debt Der standing off requirements Europe and they hald Alles that can the wasern la to that the preserve the western half Germany from communication But the attitude of the occupaing authorize is causing their them - over for analety, the RETTY received . celd welcome 1 If = . I I a ] operator 4/2 and - miagivings among than. Not to our Overation Some What unit - not to realize in that - part of Germany, while in the AGRICAN fighting - now, will not be in the American sens of enropation - 1 in has been advitied to the who are D/W understood to the a - . division of authority with Freed. The last thing as Germane le the i 1 9 under - 2 a 1 . Belgier army of occupation. TMY - prefer British or ADDRESS perspation Securité UPF know that beth countries have abort - ories. ADMIE the handrid of GEN - who have ACCORD to information in - estatido 04 Belch reports e 3 $ 1 I 1 3 I only the nost inalguitient part of Demany and the capital having the Industrial regions of Bertin - the Restane and the noth Don le the Birth are . have that President Received committent - Europe la of . short rether the siderable 1 1 . Most separated contemplate # Westeutscher Bund." the eastern poundary of which would be the Wear Niver The Bear Date would be the anothern and the state would include Wat- - Buch . state would English phalla. industrialised and would have a mixed Catholis majority but the buik of property, - at present, 4q pruso - penom There - to be general 4g799 mant that the capital of the pro- point state should be - x per cest ruised by bonts and A new of Netherient - - the least Phine region E i I 4 1 last do the MICROFILM town a 1 i the 5 и the be REG. V. 5. PAT. OFF, RHENISH INDUSTRY BACKS SEPARATIS Manufacturers Seek to 9am Properties, Disdsiming Any Masi Connection by BATHOND DAMIELL 1 I E I 1 5 a BAD GOUERNO, Generaly, 1 1 # of the are # 7. I 1 I I J I Buy - to del BY overtain Under 1 I . I 1 Injury E entership cash IL Herry 1 : I I I movement, which any resid had after the American them of Aschen, is effect it. in the fundamenta) of post-war planning anying end industrialiste interviewed the Rhindand The organizate hope that the Belabevist body will - Use paining American and Britten part for their plana, They my ii 1 - main can serve - . be - communism and and-vities but - has only to to them se resline that the - that they produce la many for I 1 The same relative Chas they I % à 1 i Independent Rhentab state an reserve that they gave . fee ago for aupporting Advid 100ml and the Masi party. New they enti-Nat and anil-Ritier because they Rame faile 4a their missing, IL does not follow that in their thinking along social and economic lines they an any - Procist - than they ware Fife or ten years ago. The real danger la that the Alline permitted wash . state to come into being, " would be or- Desit to deny the right of use people, after peace had less non- to established and the compation eu over, to vote back According to the expertare of spared antity by the Allina, for they argue, IS# danger to the not of De world lies minely - the for not domination by Program - therity, visid used if primarily for - infitation purposes in the - state that they envings, they held this disager would net Trite I # I I : 2 12" many. into Germany, the separation movement, Rhineland's informatry could That they any MICROSTAT TRADE MARK RECISION TRADE MARK MICROSTAT/ LML OFF. MICROFILM sou NO. 25 26 EXECUTIVE OFFICE OF THE PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT WAR REFUGEE BOARD WAR REFUGEE BOARD INTER-OFRICE COMMUNICATION INTER-OFFICE COMMUNICATION DATE APR 6 1945 DATE April 6, 1945 TO Secretary Morgenthau 10 Secretary horgenthau FROM William O'Dwyer FROM XLen Hodel Le your information I as sure you will be interested to know that we General O'Dwyer has asked ae to advise you that he have Just unde arrangements with the War Department for called Xr. McClelland on the telephone this sorning to the onle to the Ver Refuges Board of 206,000 parcels of get the Intent recort on our program from Switzerland. this Government's present reserve of prisoner of wer Five trucke are leaving Switzerland Monday, April 9th, for Lubeck in the northern part of Germany, carrying 60 prokages not in Switzerland, on condition that the par- cela be repackaged Defore shipment by the Yer Refugee tone of parcels and fuel. Four sore trucks are leaving Board into Germany, Ye are nov working out the details Switzerlend April 12th for the Dachau camps which are of the transfer and repackaging. near Munich. 30,000 Var Refugee Board percels will go forward by railroad from Switzerland to an International We are very pleased over this because it now sesuree Red Cross depot near Revensburg, Germany. With this us of an adequate supply of rood to be shipped agr .ruck movement under var, 15 Le contemplated that the 60 000 from Switzerland. During the past two veeks, we have Var Refugee Board parcels still in Switzerland will be thoroughly exclored the problem of obtaining food from cleared out of Switzerland within the next two weeks. sources in the United States and is in clear that, even This clearly nointe un the need for the prisoner of war under the best circumstances, it would take sany Sonths parcels which General 0'Dwyer reported to you yesterday before packages could be prepared for shipment to Europe. had been arranged for with the Var Department. Mr. McClelland vas delighted with this news and he will work out At once all the dotails of repackaging in Switzerland. Kr. Katzki has arrived in Switzerland from Paris and will MW stay in Geneva for the next week to work closely with the International Red Cross on the details of this program. With respect to evacuating refugees to Switzerland, McClelland reported that it Le expected that a truck convoy will arrive in Switzerland very shortly bringing 300 women, children and aged people. He stated that the Gernana had not yet finelly agreed to the use of our trucks for evacuating refugees to Switzerland. Jacuse Hodel Regraded Unclassified 27 DEPARTMENT INCOMING DIVISION OF OF CENTRAL SERVICES 28 STATE TELEGRAM TELEGRAPH SECTION CENTRAL DIVISION OF -2- #1988, April 6, 11 name, from Bern. DDS-747 Bern Distribing 200 of true reading only by Dated April 6, 1945. 71th tires and direct oil procured for ICRC arrangement. (SECRET in Rec'd. 12:35 p.m. by board's efforts committee hopes make at ltast LIABON four trucks available also next week for our Secretary of State program. Washington security reasons the must Since it 18 quite possible that only artas of US URGENT Munich and to cost and northcast thereof will be yor text of this message be elosely munrded. 1988, April 6, 11 s.m. accessible in future it is planned to direct relief FOR O'DWYER OF WRB PROM MCCLELLAND. shipments by truck mainly to these regions taking Arrangements with ICRC for stouring trucks In camps of Dechau, Landsberg Amloch, Pleastnburg to transport TRB food parcels into Germany for and Memthausen near Line, including emergency civil detainees art shaping up as follows: 31x relief to evacuated deportees on roads. These Renault trucks will be available for loading morning shipments would be apart from any that night go April 9 and should depart on April 10. ICRC's to Lucbook area. Division of Special Assistance still hopes send Recent news from Cermany indicates that al- them to Berlin - Lutbeck - Hamburg arts to relieve most all internal telephone and trlegraph communi- rapidly worsening condition of detainees in con- cations are disrupted so that individual camp centration camps of Oranitnburg, Ravensbrutok comanders are prograssively more isolated. Little and Hamburg Neuengame. If it proves impossible or no controlized 35 control, therefore, Appears to dispatch trucks this area they will be sent to exist which say tiend to proclude any general Hunich region and cast. last minute extermination of large group civil Prospects are good getting four to six more detainece. Renaults moving by April 13. ICRO reported this afternoon that truck con- These French trucks, athough new, all rt- voy carrying 300 French women and small children, quired light overhauling, painting with ICHC in- presunably civil detaines, is expected to signia, et cetera, which has delayed their use. arrive With tires PRECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 30 -3- W1988, April 6, 11 a.m., from Bern. W-749 Bern This telegram must. be arrive Kreuzlingen tomorrow. paraphrased before being Dated April 6, 1945 communicated to anyone Exact area or camp from which these persons other than a Government liec'd 1,32 p.m. Agency. (RESTRICTED) come is still unknown. Herbert Katzki arrived this afternoon, April Secretary of State 5 from Paris and will actively work with me on Washington these TRB programs. 1996, April 6, 2 p.m. All further significant developments in situation AMERICAN INTERESTS GERMANY. will be reported to Doard. Department's 1061, March 14, 1127, March 19. HARRISON MoClelland will endeavor include in Philippoville JT convoys all six civilians thus far certified fir for travel (Pround, Certrad and Hassenberg, Rachel Fuldauer and two children). In evect three remaining sick civilians, Berthold moller (Haitian), Jacob Levy (Honduran) and Radelph Freedman (alleged American) are physically able undertake Journey before two refuges groups leave Setterland, Legation advance Department would be agreeable their transfer to Philippeville. HARRISON ao Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM BOLL HO. 31 32 #1988 + April 6, 11 - from Dera 3478 Recent seve free Germany indicates that al- Dated April 6, 1945, met all internal telephone and telegraph catiens are disrupted " that individual courp Reg'd. 12:35 p.m. comundere are pregresively more isolated, Little or as contralized ss central, therefore, appears le erist which my tend to preclude any general Secretary of State last sinute extermination of large group civil detainess. Vashington ICAC reported this afterness that truck cas- - UNDER very carrying 300 French vesso and small children, presumably civil detaiment, is expected to 1988, April 6, 11 a.m. arrive *reualiagen temorrow. Arrangemente with ICRC for securing trucks "ract area or CRMD from which these persons come is still unknows, to transport VRB feed parcels Inte Germany for civil detainees are shaping up as fellows: Six Rensult tracke will be svailable for leading morning Herbert Kataki arrived this afternoon, April April 9 and should depart 40 April 10. ICRO's 5 free Parts and will actively work with as - Division of Special Assistance still hopes send these VRB programs. them to Berlin - Tranback liamburg area to Serv repidly versening condition of detainess in - All further significant developments is situation contration camps of Oreatenburg, will be reported to Teard. and Hamburg Neuragame, If it preves impossible to dispatch trucks this area they will be weat HARRISON JT Munich region and east, Prespects are good gotting feur to six BOTO Reneulte moving by April 13, These French tracks, although new, all - quired light overhauling, relating with ICRC is- signis, et ceters, which has delayed their use. Vith tires and diesel #il precured for ICRC by leard's efforts committee hapes make at least four trucks svailable also next vesic for sur pregram. Since 11 10 cuite pessible that only areas of Kunich and to vast and northeast thereof will be accessible is future 11 is planned to direct rell lef shipments by truck salaly to these regions taking is CAMDO of Dacham, Landesberg Amlach, Flessenburg and Manthauses mar Lims, including emergency relief to evacuated departees en reads. These shipments would be spart from any that wight " to Luebeck area. Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ MICROFILM BOLL NO. 33 Born Dated April 6, 1946 Rec'd 6:35 p.s. Secretary of State Washington, us troxer. 2009, April 6, 8 p.s. FOR O'INTER, OF vou PROM NOCLULLAND. Immediately fellewing your telephone call I contacted ICRO regarding pessible need for repacking 206,000 Ameress POV percels whose release to ICRC for was program in Germany you have just obtained. ICRC states that under present cenditions of s distribution is Germany it will definitely net (repeat net) be necessary to repick these parcels. They can be used as they are with exception of pessible blacking out of markings, changing labelling. et cetera, all of which can be dens lecally. These parcels will, therefore, be almost immediately available for our VR3 relief shipments, HANNISON 2 35 CABLE TO AMERICAN LEGATION, BERN, FOR MOCLELLAND, PROM WAR REPUGES BOARD CASES TO AMERICAN RUHASST, HOS, FROM WAR REFUGES HOARD Please deliver the following ressage to Mrs. Hand Klee, c/o *elico Ceneva, 1 Rue du Rhone, from Dr. Abraham Silberschein of World Jewish Congress: Please deliver the following nessage to Joseph Schwarts, QUOTS PLEASE PROCURE DOCUMENTS SELHA SARA SALMMEIMER BORN Rose, from E. A. Leavitt of American Jewish Joding Instribution APRIL 16, 1884 INTERESTO THERESINSTANT HAUPSTRASSE 8 INCE ELISARETH MANDEL DECEMBER 14, 1930 DRESDEN STEPHANIE CECILIE Consittee: HAMBLE JUNE 17, 1933 DRESDEN THEMSSIENSTADT LOUIS JACOB JUNE 12, 1895 BRESKOW SVA JACOB NEE SIKDNER AUGUST 6, 1912 MERIIN QUOTE PREDERICH WITE APPLIED POST OVERSHAS DORN ANNALIESE JACOBY SEPTIMENT 14, 1934 PERLIN GEORGE loss TORK JANART 25, 1900, EDUCATED RAISED EUROPE KAMM DEPTIONER 25, 1861 LUBLINTS GENTRUDE KAMES NET KAUFMANN UNHARRIED EMPLOYED AS RESOUTIVE DIRECTOR AMERICAN DECEMBER 22, 1877 WIESHADES THEIRSTENSTADT STOP ASK MY JENISH CONTRESS CHICAGO OFFICE PAST FIVE TEARS STOP SISTININIAN IF SEX HAS MMB SEU'A SARA SALINEIN STOP ADVISE ALTHOUGH LACKING SOCIAL SERVICE EXPERIENCE Hi, HAS LOUISE MAHI HATE SSIN TUSBAND (ILLIN) TO APPLY FOR VISA COMMUNITY ORGANIZATION EXPERIENCE AND IS ATUS STOP INQUIRE ELSE FISHL ADLISWIL ABOUT ANNA FISCHER ISS INTELLIGENT PIDISOS ADVISE SOONEST WHITHER we SHOULD TAUSSIO ATPRESENT THIRESTANSTADT STOP ENGAGE HIM UNIVOTS FAMILY LISBERMANN ASK ATTORNEY hetmann STOP IDE/CHANDUM TROPP SUBMITTED TO SISTITUINAN STOP AST. KLARA CARO LIRERATED THERESTENSTAD? ABOUT PAUL FAMILY. INQUOTE THIS IS we CARD NO. 486 4:15 p.m. 4,15 p.m. April 6, 1945 April 6, 1945 Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM SOLL NO. 76 37 CARLE TO AMERICAN LEDATION, STOCKHOLE, YOR CLSEN, FROM WAR REFUGES BOARD CARLE TO AMERICAN INDATION, see, FOR mar THE TAR REPUGES HOARD /Lease deliver the following ressage to Saly layer, St. Call, from Please deliver the following message to Frits Hollander, Postbox 2/- A. Leavitt of American Jewish Joint Distribution Committee: 7306, Stockholm, from Curt prossnan of world Jewish Congress: QUOTE JOHN PLATOFF, UNIONCITY, HOWEISEY, IMPORTANT FRIEND CUM QUOTE RECARDING FOODPARCELS FLASS our HAMES OPGANIZATION RECEIVED UPGENT APPEAL HELP HIS NEPHER, MARCEL GORIO, VAII TIJN, HELEXA UNQUITE DEAX VERENCE UTCA 17, HUDAPEST 4. VIII AUTHORISE you GIVE NECESSARY ASSISTANCE. PLEASE INFORM us EFFICTED. UNQUOTE THIS is with STOCKHOLM CARLE NO. 348 THIS is WILL ARR CAREE NO. 489 4:15 p.m. 4115 p.m. April 6, 1945 April o, 1945 Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. § 39 39 CARLE TO AMERICAN EXPASSY, NOBCOW, YHON THE WAR REFURER HOARD CARLE TO AMERICAN ELPASST, LISBON, PROB THE MAR REPUGEE HOARD Please deliver the following nessage to Dril Sonnerstein, Airaham Berman, Central Connittee for Polish Jews, c/o Jewish Antifascist Comdittee, Please deliver the following cassage to Harold Trobe from M. A. Incom, from Arich Tartakower, Chain Pinkelstein, World Jewish Congress: [eavitt of American Jewish Joint Distribution Comdittee: CUOTE MAYK LEARNED TROM HUSS ABOUT YOUR ACTIVITIES AND WORDER QUOTE ADVISE SCHWANTZ HIS IMPRESSION ENHONEOUS AND WE STILL WHY NO COMMUNICATION Middle YOU UNITED 10% AMAITING your SUBESTIONS MUST URGE LARGER REDUCTIONS MONTHLY HUDGETS ESPECIALLY DURING AND COOPERATI N PLEASE IRPORT ABOUT YOUR MEEDS. PLEASE COUTIE SUMMR HONTHS. MARCH APRIL BUDGETS WERE APPROVED HASTS HIS AND DISPATCH us LIST JEWISH SURVIVOR CONTAINING NAMES ATES REDUCED RECOMMENDATIONS DESPITS FEELING SOR CONTINU- PARENTARE PREVIOUS PRESENT ADDRESS AD IF POSSIBLE NAMES ADDRESSES ANCE THIS BASIS VAT NECESSITATE SHARPLY DECREASED NUMBERS HELATIVES AMERICA on OUR DIVISION FOR DISPLACED PERSONS STREQUIRE M.ORTHS. MARCH BUDGET SWITZERLAND $900,000 INCLUDED SUCCERDED IN ACCURRIATING OVER 100,000 HAMES JENISH LOVOLES NOW $100,000 CARRIED OVER PROM 1944 REPUND PURCHASES TURNEY. SCATTERED ALL OTHER WORLD OF WEDOM HALF APE POLISH JES HEPUGES IN UN,DOTE SOVIET RUSSIA. JENS ARE EAGER TO LEARN ABOUT FATE OF VIVES CHILDREN PARENTS CARLE GRESTINGS, UNQUOTE THIS IS we LISBOW CARLE MO. 165 4:15 p.m. April 6, 1945 4:15 p.m. April 6, 1945 Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. 41 40 CARLE TO AMERICAN IDEASST, 10/2, PROM THE WAR REPUGEE DIAND CARDS TO AMERICAN LEGATION, STOCKSON, von cases, FROM MAR REPUTER BOARD Please deliver the following nossage to Milel Storch, postbox 7306, Please deliver the following senseque to Dr. Schwartz from No. A. Stockholn, from Arich Partakover of World Jewish Congress: Lesvitt of Anerican Jewish Joint Distribution Committee: JUOTS INFORMS us THAT FOR JEMS FROM PHANCE AND REGARDLESS or THEIR NATIONALITY THE GERMAN AUTHORITIES HAVE ADDRESS THAT IRC DELEGATES CAN VISIT JUOTE MAI PERILLAN RECONSIDERING PREPARED ACCEPT OTIZISSAS CAMPS AND DISTRIBUTS POODSTURES CLOTHING MEDICINES TO 1057 OUR TOOS. VIERS DO YOU IT SH ASSIGN NIM IN TINK. and CROSS DELEGATE WILL ALSO RECEIVE LISTS OF APPLY PASSPORT VALIDATION. CONTINUING DAILY KYYONTS HAVES PERSONS INTAINED CONCENTRATION CAMPS. CONSIDER RECRUITING PERSONNEL HAVE THREE OR: FOUR PROSPECTS. THIS SITUATION IMPORTANT PORTI YOUR ACTION. UNQUOTE will KEEP YOU ADVISED. ANAITING TOUR TOSPLY R& VITELES ASSIGNMENT. undicate TIES is STOCKHOLM NO. 347 4,15 p.m. April 6, 1945 4:15 p.m. April 6, 1945 Regraded Inclassified RECISION TRADE MARK NOT TO BE TRANSMITTED COPY NO. 42 SECRET OPTEL No. 110 Information received up to 10 8,0,, 6th April, 1945, MILITARY 1. WESTERN FRONT. Southern Sector: French troops have entered Karls- ruhe while further north clearance of Aschaffenburg and Lohr now completed by troops 7th U.S. Army, elements of which have also crossed River Main at points ten miles S.E. and two miles N.M. of Wursburg. Central Sector: On 3rd U.S. Army front two parallel procured thrusts with infantry clearing most of intervening area, have captured Suhl and Hotha, while further north Mulhausen has been surrounded and armour pushed ten miles beyond this town, Operations by 1st and 9th U.S. Armies to compress Ruhr pocket from south, east and north, made some progress against strong re- sistance while to N.E. this area armour of latter Army advanced to within two miles Hamelin. Northern Sector: British Airborne troops and Armour have cleared Minden and closed up to River Weser on 15 mile front north of that town in which stretch river has been crossed at two places, while further west armour has advanced 25 miles to within four miles Diepholz. North of Rheine gains of 5 miles nade against strong resistance and Mengelo cleared, while still further west troops of 4th Canadian Armoured Division have cap- tured Almelo and on extreme left flank stiff opposition being encountered in area Arnhem. 2. EASTERN FRONT. Northern Sector: German remants on coast north Gdynia now mopped up. Central Sector: Russians made further progress in Polish Silesia and Slovakia. Southern Sector: Advances made east and south of Vianna while road to Linz out to west of former town. Further advances also made across Hungarian and Yugoslav border. 3. ITALY. On 8th Army front British Commando troops captured several small islands in Lake Comacchio. On 5th Army front attack launched by U.S. forces made progress towards Massa. 4. BURMA. Coastal Sector: Our forward troops now two miles from Taungup. AIR 5. WESTERN FRONT. 4th/Sth (night). Bomber Command des- patched 1173 (18 missing) 615 against two synthetic oil plants Merseburg (1958 tons), 328 synthetic oil plant Harburg (1017 tons) 35 Berlin, 31 Magdeburg, 30 seamining and 134 other missions. Halifaxes probably sank one 4000 ton ship off the Skaw and damaged one 2500 ton ship off Larvik. 5th. 1035 U.S. escorted heavy bombers (21 missing or outstanding) attacked Ordnance Depota Ingolstadt (354 tons) Grafenwohr (371 tons) and Furth (141 tons), Rail centres Nurnberg (805 tons), Bayrouth (257 tons), Plauen (348 tons) and other targets (279 tons). SHAEF (Air) medium bombers 145 attacked supplies in Southern Battle area while 1853 fighters and fighter bombers (13 missing) operated whole front destroying 92 locomotives, 658 M.T., and 455 railway vehicles and at same time inflicting enemy air- craft casualties 17 in combat and 97 destroyed on ground. Coastal Command Mosquitoes attacked convoy 51 miles E.S.E. Allborg when 6 ships averaging 1500 tons each left sinking and seventh on fire. 6. MEDITERRANEAN. 3rd/4th. Heavy bombers dropped 159 tons railway centre Novska (60 miles S.E. Zagreb). 4th, 944 tactical aircraft attacked communications and other targets North Italy while fighters destroyed 25 loco- motives on railway Munich-Linz. Regraded Unclassified 3 44 TREASURY DEPARTMENT WASHINGTON R M. Antil 7, IMS Land-O-Lakes, notive in behalf of liretton Woods, Holman is now lobbyist for the Vilk Producers' Association. We have contacted him and will have his over here the early part of next wook, 45 which time he will lunch with Harry Multe, Be 1a a vigorous lobbyist and will be a worthwhile Door - Sunday: addition to our carp If we can get him. There La a 30-50 chance. This - the terms you united Due - in Idadisc 4° e the 3. the following organisations have endorsed Bretton Toods: talayConn. I - going to dictate 11 and rus for % train, 20 in Condittee on International Trade, New York, 1. Y. and Time Texas Cottro Loray vill sign it for - Association, Naco, Texas, to are going to nee that there recrimtions an inserted in the Congressional Record. 1. We live conditional attengements with the Date- cratile Comilities for a HALF-hour raido previous on Not 4. To have been working on 5. Clay Williams, President of the last at / - Statem - 200, over the -lue intlork. Reynolds Zobacco Conjuny. fillians is now in a receptive frame of and 2a first 23 sinctes will in = dranstication of world accurdly and will have lunch early next weole dth White, From there we will fan vith a east including Walter Dette Davis of Olivia de out In the tobacco industry. Lavilland. last dill be given to an for - on trevio fuoda #den all the at 5. will Rays called together 24 of the top people In the movie Goods Ln the world security platine with has just less Du want Senator 50 valid that ryeach. jurry Mille and that industry in New York last Wednesday night. liarty White went up and talked to shen. de <14 a aplendid selling job and they are ready to & to work. you -111 Insurer or set un should be approval ent now. (1 bidak 15. La we - have the met conservative speaker I - following MD on this Monday and Tuesday and will get these people notive In a of I hope to get all of then into the Business on tate com. The network in water vary elsoway and visa not Conditos and to have than entertain members of Congress at a tabe Tobey or Allown) reception in Mahington, at which time they will - with the help of come of the stare -- tell the Congressman how and aty they are for liretton 2. The 200 vill Las - corporate untillity ou Too. There are may other ways in with they cas be helpful. Londays The business and deadtive lar votto: Jubio, De. Offices ave by Not lionsavelt liotal is - Dr. 6. I have followed 4) with the mall instructions contacts ande at sufficient funda - our provided Ever nass Lesta Le, Halary meting last vook. One upecific thing has grown out the vas to come in hats an RJ num, - 400 diverted to in There of tide already. Zip House Smill Business Comdittee 1s holding field to en Executive of this 2014 4 - - hearlings in Claveland, 36. Louis and Chicago. At our request, they are 40 10 amallant. its - - the to on the going to have outstanding small buciness people from those communition invising Consistos, and will send 0.45 1,000 tolegram not later tactify on the importance of limetition Nooda to mail business. than, the than a vedic an today to Aprilde a valout 1101 of - to relation of the Ingislation to the problems of that group will be high- join. I: La rebable that enjails Product 40 the - 3. 11,Orted La publicity managing from those communities and not from Steal Corporation, will DRIVE 4d I Level belied to THE Washington. These hearings are being held in 31. Louis and Chicago be- Inss about resson Vobia and has is favorable. I e Clying doda to trees April 24 and 27, Dev to net não EVIDES Vegit to eliman the deal. Others von are expected to in Us Limiting Constitue Charles 7. 4d LATE arranged with Americans United to call together the work- z, Wiron of and Startcie, 7.11 Credker, Productions of the inc leats of various organisations who have expressed favorable reaction Conditor National - in Sun Travelson, No. cullis at und 11110, to reston Moods - with a view to coordinating Undr afforts and, in Bussit of Steanship Name, and others, particular, toward the lieuse Comittee. Luxford and I will discuss strategy with the on Todnesday afternoon of maxt week. The first official as of the Consisted will be fully- cald ada in Nov York sul maldington you will regall your thes yes on 12. blan, family sup 45 - 3 - 8. As a result of 0 neeting Demotein and I had with none fifty members of the Advertising Condition on Public Affaire in yes York, that condittee has prepared copy for a way fine peoplet on Dretton Woods, and is writing on a member of other items which they will unite available to any organization vishing professionally prepared naterial. 9. 20 you low, I cancelled your appearance on lary Margaret radio program asct Tuesday. This does not preclule your going on at some later date, as they are Lost cooperative. 10. To have arrai, for # maint of speakers on Pretton Woods at nestings in various citime. 11. The intional broadcanting Company in diverting its program, *Moke to America* to a debate on Cretton Soods on Bunday, April 15 at 0 - 6:30 palle Clarate Pepper will debate Senator is are giving Papper stall practice next voic. 22. I an melotis the first International Later which is appear- the in 85 between yesterday, April 6 and next Thursday, April 12. 13. = say interest you to know that the Denocratio National Comittee reports that they have procedures from Congression saldwin and Jarry that they vill not appase liretton Tooda in the Comittee or on the /loor. This is a result of considerable brought to bear in & mumber of ways. 14. I thought you would like to lenov that the title of Frank Dervasi's article on Dretton loods in Collier's migazine - to appear about 5 or 6 weeks hance - will be "Bretton Tooda De World the me. Tide will be the leading article and will be listal on the 00762 of the nagazine. Sincerely yours, If Bheroy Randelipts Faltur D. Leroy Honorable Juney Horgenthau, Jr., Hotel Shoraton Plans, Daytona Loach, Florida Enclosure. 18 APPRETUDITE PRECISION Preventing Future Wars NEW YORK POST, FRIDAY. APRIL 4. 1945 BRETTON WOODS New that the Allied armies are sweeping through to plan the political machinery for preventing agree Germany now that the war in Europe in being won sion. and victory in the Pacific in assured it is time to And that in why, at Bretton Woods, we joined in propare for peace, For victory alone is not enough, as planning the machinery for expending world trade, we learned after the last war. Not only must the war be for amuring prosperity, jobs, and security for all won, but the peace must be built it must be built peoples. solidly, built to endure. The Bretton Woods agreement calls for two things. After the last war, we fell down badly on the job of It calls for a World Bank through which the United building the peace. We did not work out effective Nations undertake to guarantee approved private political machinery to call a halt to political aggres- loans for economic reconstruction, and to make direct sion. And we did not construct economic machinery loans when circumstances require it. And it calls for to create . sound basis for world prosperity. Monetary Stabilization Fund to stabilize the nations' MARK MICROSTAT/ MICROFILM Because we lacked the machinery for joint economic currencies in their relations one with another, and to action, each nation of the world was forced to strive provide for the orderly adjustment of those relations blindly for itself. World commerce was soon poisoned through joint action. with national jealousies and national sharp-practice. The two Bretton Woods proposals are of vital im- The marts of trade were transformed into arenas of portance. They lay the foundation for world trade economic warfare. and world prosperity. More than this, they testify to The deterioration of world economic relations the determination of the United Nations to work and NO. the collapee of foreign investment, the selfish manipu- live and do business together in peace no less reso- lation of national currencies, and the disintegration lately than they have fought together in war. of international trade into primitive barter these It will do this country and the world little good if things did not by themselves bring on the second America turne its back on political isolationism only World War. But they did set the stage for it. to continue in the path of economic isolationism. Po- And this was only the first stage. Economic conflict litical collaboration, political friendship between na- political aggression wer, in all its surgery and tions cannot long endure if in their economic relations destruction these followed inevitably one upon -which determine the work, wealth, and happiness of the other. mankind-nations act on the principle of dog est dog. That is why we, a business corporation, submit that Our Second Chance it is in the interest of every man, woman and child in Today we have a second chance to build a structure this country, and in the interest of world peace and of lasting peare. We all know there will not be a third. security, that Congress ratify the Bretton Woods pro- That in why we have joined the other United Nations posals without delay. Presented AS A PUBLIC SERVICE by INTERNATIONAL LATEX CORPORATION * PLAYTEX PARK * DOVER, DELAWARE by - Las Comp - PAID ADI EXTISEMENT BUT MORE FAR BONDS Regraded Unclassified PRECISION TRADE MMM MICROSTAT/ MICROFILM BOLL NO. e TREASURY DEPARTMENT WASHINGTON 4 April 7. 1945 TO: Secretary Morgenthau PRO₂: 2. 3. Fussell Subject: for Loan Promotion Enterial After consultation with Mr. Gemble, Mr. Lane and others in War Finance, I us moving in an exploratory way to get certain data which I believe will be useful in promoting the Seventh Mar Loan. 1. A series of specific questions dealing with Okinowa and Two Jim operations has been drewn up in War Finance. These questions are all or virtually all directed to the Navy. I have accordingly taken the liberty of drafting a. proposed letter from you to Secretary Forrestal, to go with the questions, if you up- prove. (A copy of the list of questions is also enclosed for your convenience.) = 2. More than #. half million American homes have received telegrame that members of their families have been wounded in action. It seens to ne that the care being given these wounded men, the retraining of those who are permanently disubled and the benefits that are provided for discharged veterens generally pro- video one of the most appealing thenes for purchase of Wor Bonds, I think probably the best any to present it is to show what hap- pass to acce individual G. I. Joe from the time he is wounded. It night be presented in a major speech by you or in a radio drunatization or otherwise. Immediately I as just moving to get together what material is already available. If this proves In- sufficient, letters to the Secretary of Yor, Secretary of the Havy and/or the Veteruns Administror may be indicated. I nm not suggesting this action yet. May I include my hopes for the speedy recovery of Kre. Norgenthou? PORMICTORY BUY MAR SCHOOL max RECISION TRADE MARK MICROSTAT usa. FAT. OFF. MICROFILM BOLL NO. APR 11 1945 APR 11 1945 Dear Jim Dear 21m: As you low, the Two Jima operation is providing us la you low, the Inc Zim operation is providing us the these for the leventh Ter Loss Drive, end of course the theme for the Seventh Car Loan Drive, and of course your operation 19 providing the imediate spot noss your Oklaws operation 18 providing the imedicte spot name from the and very heartening - indeed. from the Pacific, and very heartening news indeed. I englis 11ke very much to present, curine the Drive, I would like very much to present, curine the Drive, - many facts as possible, relating to the cost of these 08 muny facts - possible, relating to the cost of those and any other current operations, with e visa toward show- and any other current operations, with 6 view toward show- Ing the people just why their dollars are needed by the Ing the people just why their dollars are needed by the und has Tap Time dollars are being spent. Government, and how Far Bond dollars are being spent. The Tap Finance Division has drafted a series of 874- The Bur Finance Division had directed a series of and sifie questions, which I an melosing, nas crow of ques- cifie questions, which I am enclosing, one group of ques- tiona dealing with and the other with Iwo Jime. Mone dealing with Ordnown and the other with Iwo Jime. I would appreciate whatever date you can give us, I would appreciate whatever date you one give us. either in specific assure to these particular questions, either in specific insure to these particular questions, or otherwise. I realize that two very different factors or otherwise. I realize that two very different factors are involved to may of these questions -- one the current are involved in may of these questions - one the current expenditure, the other the capital Investment represented accediture, the other the cepital Investment represented in ships and the training of am. And of course the after is ships and the training of - And of course the after cost of communities and veteruna' benefits are also involved. dost of comunities und voterned benefits are also involved. for this reason I do not want to be arbitrary in saking For this renson I de not want to be arbitrary in saking that every question be enswered estegorically. But the nore that way question be insured categorically. This the more specific and current the information 1a, the nore help 11 specific and current the information 10, the sere help 1% will be in selling for Ronda. will be in selling For Bonds. Sincerely, (anty (Stgmed) Easy lionorable James Purrestal Nonorable Janes Forrestal lecretary of Navy Secretary of Nevy 5, C. Teahington, D. c. 4/7/45 4/7/15 Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ MICROFILM sou NO. MV 1945 Dear First lear That As you inco, the Iwo 21na operation is providing us the these for the Seventh Tur Loun Drive, and of course La you loow, the Ivo Jina operation is providing use the these for the Seventh Tar Loun Drive, and of course your operation is providing the Imadiste spot - from the selfie, and very hourtening news indood. your Oklaum operation 1s providing the imetiste spot name from the Twelfie, end very hourtening name income. I would 11ke Tray such to curing the rive, I would like very much to present, during the Drive, LE may facts na possible, relating to the cost of Shows and HAV other current operations, will a view con- Le reality facts as possible, relating to the cost of these Inc the people just why their dollars are nemied by the and any other current operations, with 5 view toward - Government, mal las "v Bond dollars are being spart. Ing the people just when their collars are nooded by the Government, and has Tax flond collare are being spent. The Dup Flanzee Division his initite - series of apo- The For Finance Division has crafted a series of spo- sifie questions, which : an meloning, one (774) if ques- tione dealing with Ideas and the other with Ivo 71m. sific juestions, which : - melasing, none (POUD of cuse- Lions dealing with end the other with Iwo Jime. I would appreciate whotover case you con give us, I would appreciate whatever care you oun give us, either 1a specific to thene particular questions, is specific to thene particular questions, or otherwise. I realise that tuo very different Distors car otherwise. I realise that two very different factors 520 involved to ma of these sunstions - une the current are involved 10 may of these questions -- me the surrent missiture, the other the capital Investment represented In shipe and the traditag or - 100 of course the after expenditure, the other the espital Investment represented in ships and the training of ne. And of course the after cost of commulties cni benefits are also involved. soet of commities and voterina' benefits are also involved. Top this T do not vast to be widtrary in salcing For tate record I 00 not want to be arbitrary in saking tist wary justion be chavored cotegorically. But the more that every question be enswered estagorically. This the more specific and surrent the Information 1s, the ore help it will be in salling Far Donda. specifie and current the information 1s, the sore help 11 will to in selling Far Bonds. Motoraly, Sincerely, (Signed) Tenry (Stemal) Jenry Hosersble James Forrestal Secretary of Navy Monorable Janes Forrestal instructom, D. c. Decretary of Navy Tushington, D. C. (Vin 4/7/19 4/7/25 Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ ass, PAT. OM. MICROFILM SOLL NO. GEINANA INVASION 1. Assembling of ships for the Oklass Invasion started months ago, APR 11 1945 Rehearanle for "I-Day" (Invasion Day) took place at bases thousands of alles spart and thousand of siles from the Ryukyus. Row much did these so-called "rebearanls" cost? Dear 71m 2. Eine-mosper fleet cleared 2,500 aquare miles of ocean off the la you low, the Ivo Jim operation is providing - west coast of (Note: According to reports, not a transport the theme for the Seventh Tap Loan Drive, and of course your Oklane operation is providing the imedicte apot name or cargo ship - hit by nines on "L-Day1") Cost of this nine-oweeping from the Pusific, and very hourseming news indeed, operation? I would like very mush to present, curing the Drive, ca may facts as possible, relating to the cost of these and any other current operations, with a view toward now- 3. The Kerana Islands were captured on Moreh 26th where heavy artil- Inc the people just why their dollars are needed by the Covernment, and how Var flond dollars are being spent. lery was emplaced to support the min landing on Okinews. Cost of The The Finance Division has drafted a series of spo- taking the Teranna? eifie questions, which I 48 melosing, one proup of ques- tions dealing with and the other with Two Jine. 4. Softening-up of Oldnaws's air and naval strongpoints started on I would appreciate whatever date you oon give us, either is specific answere to thene particular questions, March 23rd. Correspondents report *1500 tone of 16-ineh shells were or otherwise. I realise that two very different factors are involved in may of these questions - one the ourrent fired into gran explacements and industrial area virtually wiping out expenditure, the other the capital Investment represental in shipe and the training of am, ad of course the after the town of Ninatoga" on March 26th. How much 414 it cost to wipe out cost of comulties and veterins' benefits are also involved. For this renson I do not went to be arbitrary In salcing Sibstogs? low much to neutralize Okinaws? that overy junstion be enavered outegorically. Put the more specific and current the information 10, the more help 11 will to in solling Faz Bonds. 5. A fleet of 1400 vessels, from battlemhips to landing ships, went Sincerely, close to shore to aid in establishing the benchhend on "L-Day." Cost of maintaining this fleet for one day? Cost of building this flest? (Signad) Zenry 6. (a) Mobile Naval base - Navy's *secret wespon" - is playing /innorable Junes Forrectal Secretary of Navy vital part in solving supply and repair problems. "Service Squares 10" Teshington, Da C. the 4/7/45 Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. INO TIMA INVASION . 2 - comprises several hundred shipe of all types -- ammunition, repair, 1. The Ino Jime invasion (STE the "Mighty Seventh* flosting drycooks, oilers, water tankers, hospital and barracks ships. Nur Loan Drive its these. The total cost of this 10- Amount of investment representing in this armeda? vusion would be very useful to us. Also the tonnage (b) Reports say 50 per cent more fuel is being consumed at of the various supplies wed -> ammunition, rual, food, Okinawa than in any other single previous operation by the U. 0. Navy. medical supplies, etc. More than 600,000,000 gallons of fuel oil were required to get the amphibious foree to objective. Cost of fuel 0117 Differential in 2. The wounded from Two were transported almost 7000 cost compared with sine quantity for use in Atlantie? miles by sea and air to Alen Neval Hospital, Pearl Harbor. How such die it cost per san for transportation? (a) Planes will use gasoline to the capacity of 16,666 trucks Next atop towards home, San Francisco, about 2300 miles. and trailers. Cost of nos? Cost to transport wounded MI from Pearl Harbor to San (4) The task force ships were londed with the equivalent of Francisco? 1500 freight cara of ammunition 2600 tons of food. Reports bring this tonnage down to comunity level - "food would provide the entire populations of Vermont and #yoming with 3 seals a day for 15 days, and medical supplies enough to provide 60 days of treatment for population of Columbus, Chio. More than 1200 pints of whole blood were flown to flest unite." Total cost of supplying the task force? Cost of componente -- ammunition, food, medical supplies? Hos much did it cost to fly the 1200 pints of blood from U. 5. port to objective? How much did it cost to transport supplies to "Service Squadron 10" from United States? Regraded Unclassified 50 57 . 2 April 7, 1945 4. Lubin presented his document, which is attached, and read the document through, pointing out those provisions with which MEMORATOUS OF CU REPARATIONS there was disagreement between himself and State. These provi- clona relate to the considerations governing the period of time and the amount of recurring reparations. Lubin said that he 1. There was B. meeting today In Clayton's office nt State at favored B long period of time with small annual amounts whereas 3:30 p.o. to discuss the instructions to be given the United State favored n. short period of time with larger anounts. States representative on the Regarations Commission. Those attending the meeting included: 5. Clayton then proceeded to read the document through paragraph by paragraph and comments were made on each paragraph. The follow- State . Clayton, Wathers, Lenon, Dugre 102 is e. hrief of the sajor points of discussion. and Lathrineer. 6. There una considerable discussion concerning the meaning of Tar - Generals The and Draper. the following sentence in paragraph 7: Havy - Francis Donner. The peoples In the devastated countries of Europe shall be given priority over the Germans in the determination PER - James Perkins. of the standard of living, notalthstending the effect of such priority on the standard of living In Surnany." Treasury Thite, Glasser and DuBoin. ( it was finally agreed that in the plane of this sentence we would White Youse Inadore Lubin. substitute the principle which had been agreed upon in the statement of United States policy on Geruany enproved by the President on 2. Clayton opened the meeting by asking whether anyholy had n. document to present. Lubin sald that he had A document which March 25, namely that no antion should be taken to support basic he had been working on with the State Department, specifically living stamiards in Germany on n. higher level than this existing mentioning the names of Hason and Durre. He said there goened la any one of the neighboring United Nations. to be general agreement between him and State on this document 2. Treasury objected to the following sentence Le paragraph 7: with such exceptions ss le would indicate. 3. Clayton then suggested that the should first be "Specific explosis thould be given to the controls 04 the posulations of those zones so E.D. to insure, read through in its entirety and that ne should than read the DO for lus possible, that the burden of bearing the cost of meaorandins paragraph by peragreph for comente and suggestions. reparations through taxes end other devices shall be White, at this point, sald that lie thought It aleht be 5 good distributed the various groups in the population idea if, instead of trying to reach an agreement et this weeting in vonordance with their ability to pay." on this document, which many of those present had not yet sonn, the representatives of the various agencies should take the After considerable discussing It was finally agreed that this document with then and S° over it in their respective acencion. contener Le left out of the Reparations document although Another meeting could then be arranged to concluer the domment. Clerton rade It clear that State felt that it would be necessary Clayton said that be thought It would be useful if we could to Institute some form of retioning. He argued that if we were consent on the document et this meeting and have another meeting to finally consider the document. It WAS generall" agreed that going to keep the living standard of the German people at & low level ané not higher than that of any of the neighboring countries, this procedure could be followed with the understanding that no It use necessary for us to 500 to It that part of the German agency was making any Cinsi commitment at this time. Regraded Unclassified RECISION TRADE MARK MICROSTATI MICROFILM BOLL NO. 58 59 - 3 - 4 - population were not eating nell unile at the case time another part of the Gorman population une practically starving. The issue despite the fact that, as was pointed out, such a provision was reserved for consideration In connection with the economic had been contained in the Reparations Protocol. directive. 10. It was agreed that Lubin would redraw the document in the B. There - considerable discussion of paragraph 12 of the light of the consents made at the meeting and would circulate document presented by Lubin, which provided that this Government the document to the various agencies for consideration at the levors as long A reparations period DE nossible with namual next meeting. The next meeting une arranged for Tuesday, April 10, recurrent payments as small as provible. freasury supported this et 3:30 In Clayton's office. position strongly while State, particularly Vason and Donro, opposed this position. . Mason usde the specific point that It was undesirable to have reparations extend over a Ime patiod of time Inservich as It would be nonessary to loan occupation troops geD Josish E. DuBois, Jr. in Germany In order to collect such reparations; that e did not want to koop United States troops la Germany for 25 or 35 years; and that It would be politically undestruble to withdren United States troops from Germany while Russian troops still remained in Germany. Pressury pointed out aly It BRE declrable to have reparations in na small ennual anounts ER possible insuruch as C by DO doing we would avoid the dependence of the recipiente of reperations on Germany and sould avoid rebulling the German economy. Treasury also pointed out that If reparations were collected in mall assounts annually this muld not reguire nain- tenance of troons in Termany to collect such one; mé that in connection with the question of the mintenance of tronps In Geranny there nore other considerations for nore important then reporations which pould determine the langth of time during shleh Attachment. such troons were kept In Germany, Clayton figally suggested that no definite statement be unde 18 to the leagth of time or relative amounts of recurring reparations and that we aerely announce a statement of principle to the effect that recurring reporations should be fixed do nn to evoid the desendence of the reclpients nn the German and ED M.D. to svoid the butlding up of the Gerska economy. 9. WIth respect to paragraph 15, which provided that to the maxtaus extent possible reparations should be taken frea the national wealth of Geruany existing et the time of collapse and which specifically included "shares of Industrial, transport, shipping, and other enterprises in Gernany", Treasury suggested the elimination of this moted portion of such paragraph. Treasury pointed out that this would permit the United Nations to take ownership of Gorman factories instead of removing factorian from Germany and stressed the donger of such 5 procedure. There was general agreement that this quoted provision should be delated, Regraded Unclassified PRECISION TRADE MARK MICROSTATI RSG. PAI. OFF. MICROFILM ROLL 1 60 TOP SECRET 61 TOP SECRET 1. It was agreed at the Talta Conference that Germany must pay in kind for - 2 - 5. (c) It 1a the policy of this Government that the reparation the losses caused by her to the Allied Nations in the course of the var. The burden shall be distributed insofar as possible sa to impose equality of primary purpose of the Reparation Commission should be the formulation of a sacrifice upon the populations of each of the somes under the control of the general program for the exaction of reparation and the establishment of the respective occupying nations. policies under which program is to be implemented. 6. (d) This Government adheres to the principle enunciated in the 2. The principal interest of the United States is to assure that the Yalta Declaration of February 12 to the effect that reparations program shall not jeopardise the economic and security objectives "It is not our purpose to destroy the people of Cormany, of this country with respect to Germany. The position of the United States but only when Nasism and militarism have been extirpated will on the various issues involved may be summarised as follows: there be hope for & decent life for Germans, and a place for 3. (a) This Government favors & reparation program which would r ssult them in the comity of nations." in the elimination of industrial capacity in Generary considered to be Accordingly, the reparation exactions imposed upon the German dangerous to the security of the United Nations. people should be such as to leave them with enough means to provide & low 4. (b) This Government favore a. reparations policy which should aid subsistence standard of living for her population without outside relief. in strengthening and developing industries in the devastated countries 7. (e) The peoples in the devastated countries of Europe shall of Europe, including assistance to the liberated countries and other United be given priority over the Germane in the determination of the standard of Nations to expand their foreign trade. They should also be fixed and living, notwithstanding the effect of such priority 8 the standard of living distributed so as to increase, as much as possible, the living standards of in Germany. The level of the general standard of living should be the same these and other countries. TOP SECRET TOP SECRET Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. 52 63 TOP SECRET TOP SIGNED - 4 - - 3 - for the German people in each of the sones under the control of the Allied they are located. Such requisitioned goods and services shall not be con- armies of occupation. Specific emphasis should be given to the controls sidered as reparations. All goods exported from Germany shall be considered imposed on the populations of these sones so as to insure, so for as possible, as reparations. that the burden of bearing the cost of reparations through taxes and other 12, (J) In order to avoid the dependence of the recipients of devices shall be distributed among the various groups in the population in reparations on the German economy for their economic existence, this Govern- sent favors as long 6. reparations period as possible, with annual, recurrent accordance with their ability to pay. (f) This Government opposes any policy of reparations which will payments as mall as possible. These annual payments should be so arranged as 8. put the United States in a position where it will have to assume the - to taper off tomard the latter part of the reparations period. 13. (k) The United States reserves to itself the right to claim tained responsibilities for relief to the German people. (g) Payment for such minimum German imports as may be determined reparations from Jersany to the extent of billions of dollars. 9. to be essential shall receive priority over reparations. This Government The United States will not wish to receive its share of reporations in the opposes any reparations policy based upon the assumption that the United form of labor services. It desires that labor supplied by Germany to neet the claims of other countries for reparations shall be recruited primarily States will finance any reconstruction in Germany. 10. (b) It is to the interest of the United States to see that the from Nast groups, officers of the Wehrmacht, the Gestapo, SS organizations payment of the costa of the occupation of Germany shall receive priority over and those elements of the population who have cooperated in financing and building up the Hand machine. reparations. 14. (1) In requisitioning goods and services, priority shall be (1) The governments participating in the Reparations Commission 11. given to the needs of the occupying forces, irrespective of the gone in which will retain control over the disposition of German property located within à I - Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM sou NO. 64 TOP SECTET 65 - - --- TOP SECRET their respective borders. These nations will neek agreement with other in paragraph 15(a), recurring reparations, over a period of years, should be countries in which German assets are located designed to climinate continued 1. As reall as possible in relation to the reparations to German control, or the eventual return to Germann, of these assets. be paid in the form of industrial plants and equipment. 15. To bring about the realization of these policies, you should undertake 11. Primarily in the form of natural resources, such as to secure an agreement in Moncow on a program embodying the following coal, metallic ores, timber and potash, and not in specific objectives. the form of nanafactured products, (a) To the modras extent possible, reparations abould be 16. it in commended that one of the first tasks of the Reparations Com taken from the national wealth of Germany existing at the time of collapse, sission shall be the establishment of the necessary machinery for the including the removal of industrial machinery, equipment and plants, allocation of such commodities and equipment for removal from Germany as particularly the shipbuilding, metallurgical, electrical and chemical are not escential to the mintenance of the armed forces or to the conditions industries (including all industries producing oil and oil products, synthetic stated in paragraph 6 above, Immediate provision should be nade also for nitrogen and synthetic rubber), ships, rolling stock, German investment abroad, the allocation of German holdings in neutral countries. shares of industrial, transport, shipping and other enterprises in Germany. Records should be kept of all deliveries nade on reparations account (b) To the extent that reparations are collected in the form under such interia arrangements and such deliveries should be made without of deliveries of goods over a period of years, such goods should be of much prejudice to the final allocation of reparation shares. a nature and in such amounts as not to require the naintenance of the German war potential or the continued dependence of other countries on Germany after TOP SECRET reparations cease, Accordingly, after the removal of such items specified TOP SECRET Regraded Unclassified 66 TREASURY DEPARTMENT Washington. ASSISTANT SECRETARY April 7, 1945 INSTRUCTION FOR THE SECRETARY: an Under Secretary OF General Clay aska for/an Assistant Secretary. I don't see how it is possible to comply with his wishes. It seese to no that the best arrangement would be to have Colonel Bernstein taken out of uniform and back into the Treasury as an Assistant to the Secretary, and assigned to the position General Clay has in mind. I don't know whether the Army would be agreeable to such a step, but certainly if what they are looking for is a nan who could do the job, Colonel Hermstein, in my judgement, Le the best one available. A second suggestion, which might be acceptable to the Army, La Handolph Paul, All former General Counsel of the Treasury and an export on tax matters, he would be as qualified as many of the names which the Any has suggested from time to time. The could, of course, provide him with competent technical assistants. The only qualified persons in the (reasury who would be available are Harold (lasser or Bill Taylor for the position which General Clay has in adnd. General Clay might not regard them as having sufficient prestige but in ay judgent either one could do a better job than persons the Any has suggested in the past. HDW POLYICTORY BUY WAR 68 ROBERT E MCCONNELL TREASURY DEPARTMENT WASHINGTON 25 The Plains, Va. April 7, 1946 Middlebirg, Va. 160 April 7, 1945 Henry Morgentheu Jr., Secretary of the Transming Sherld Pleza Hotel To: Secretary Morgenthau Datona Resch, Florida DONT Ar. Secretary: From: J. W. Pohle 1 se vary sorr. to hase frix Fits this morning that Mrs. Morgenthau is 111 end I sincerely hore abe will live en serly recovery. The following is a summary report of several Yeatorday 1 SSN Anjor Genaral Gle, in washington just bafore De took off for Europe. de has divided his control Investigations currently conducted by the Procurement group Into three divisions: Willtarf, Political, end Economic. Division. The present procedure is to refer matters Such army officer will have Il nivilion er - industry -- «ltor- requiring investigation to Mr. Irey's office, accom- nate or deputy. I in spelosing the contativo organdantion chart for the Economic Divisions Brig. General Ailliam Droper panied with all available information, and recommending will be chief. Clay saked ISS to not as Draper's deputy in the course which the investigation should take. It is Germany, or 0.3 antuf - the Hear Echalon in Weshlogton. In contemplated that when personnel is recruited to staff any event be asked - to help immediately in seguring the proper staff for the Boonmie Division. I think Clay hopes I will the recently created Office of Complaints and Investiga- go to for A your or as no Divilian Deputy of the Seon- tions that office will be in a position to undertake omio Division. investigations affecting the Procurement Division. This 1 en anxime to gat your judgement This =dvise in the 1s agresable to Mr. Caston, Charles Bell and Elmer Irey. matter before making an, commitments. 1 also felt you might have some auggestions as to procedure. While noithar CIA for Eugene Puhl Droper cald - moh, I gether that the for Department 11 dis- appointed in the progress to date (or the promesse for the future) that F. B. A. is showing on this job. An investigation into the sale of surplus commodities by the Procurement Division's Chicago Regional Office re- It is possible that interpretation of broon policy state- ments will be left to the judgement of this Are, Geoup and sulted in the suspension of Eugene Puhl, a salesman employed therefore it 10 important that the non In the top positions by that office. It appears that Puhl effected sales of have ability, judgement, and daterm netton timelte n thorough various surplus items, particularly automobiles, to persons 10b if it this time, upon forged requisitions purporting to be issued by offi- 1 shall be with Dropar most at next week it the cials of townships in the vicinity of Chicago. The funds Department and hope to be able to - you 1000. for the purchase of these Items were furnished by Puhl and Sincerely yours, his associates who resold the property at a profit. In some Instances, the officials collaborated with Puhl by Bbb Minner Issuing requisitions in the name of the township and con- HEN NEW verting the property to their own purposes. Excluding the Encl. 1 factor of collusion by Procurement Division employees, this PRECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. FV 70 - 2 - - 3 - case presented the problem of checking the authenticity of requisitions for surplus property by Government agencies or persons entitled to a priority thereto, and establishing a Sparks E. Bonnett has been done. procedure to assure delivery to the proper authority. This This individual recently resigned at our request as Deputy Regional Director of the San Francisco Regional Charles H. Kerr Office, when we ascertained that conditions in this office were chaotic. Subsequently we were informed that he had The investigation herein raises the question or the accepted a fee in procuring the award to a Los Angeles propriety of a Procurement Division employee acquiring firm of certain oil filters offered for sale by the San surplus property from the individual Who had purchased it Francisco Regional Office. from this Department. In this case, Mr. Kerr, & price analyst then employed by the Fort Worth Regional Office, Cilbert R. Endicott purchased two tractors at a slight increase in price from the original purchaser of these machines which had been This investigation resulted in the suspension of a sold as surplus by the Fort Worth Regional Office. Eerr marketing specialist employed by the Denver Regional Office resold the machines at a substantial profit. It appears for his failure to satisfactorily explain over $2,000 of that the purchaser from this Department was the high bidder bank deposits received from unidentified sources within & at a "spot sale." However, the purchase by our employee five months' period. Mr. Endicott refused to submit to under these circumstances is highly suspicious in that he further interrogation after certain statements he made in was charged with pricing the equipment and his purchase at connection with these deposits were found to be false. a slight mark-up savors of collusion. This investigation The investigation is continuing and the suspension by this is still under way. Department forestalled the employee's transfer to another Government agency. Sale of Surplus Property Pursuant to Certificates of Necessity Issued by Another Agency. The Kansas City Regional Office recently sold certain The above cases indicate the necessity of constant items of surplus machinery to a dealer who presented a cer- vigilance to anticipate a certain degree of misconduct by tificate of necessity issued by the Smaller War Plants personnel in the Department. To minimize this problem the Corporation. Investigation disclosed that the dealer, Instead Procurement Division has promulgated certain standards of of putting the machinery to essential use as had been repre- deportment to be observed by employees in the conduct of sented, is selling this equipment to the general public at Government business. One of the functions of the Office a very substantial profit. We are investigating our pricing of Complaints and Investigations is to keep our house clean procedure in this case and particularly since one of our so that the public will have confidence in dealing with the officials apparently purchased a car from the same dealer Department. to which Procurement had sold such car. Regraded Unclassified RECISION TRADE MARE MICROSTAT/ MICROFILM sou NO. 72 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION - 4 - DATE april T. 1945 TO Secretary Korgentheu (Pr setion) A typical illustration of fraud and criminality by purchasers of surplus property was uncovered by the Invos- FROM us. Coe FC tigation in the Panco case. The officials of Panco falsely Qubject: Entry of National City Bank people into Philippines. represented to department stores, trade associations and others that they were designated by the Treasury Department 1. IS to that you telephone Secretary atettinius and as exclusive agents to sell various Items of surplus; that initante to la that you would appreciate having the State they had posted a bond with the Department to Insure per- Department refuse to grant passports to private benkers to 6° to Monile until such time NA General MacArthir has given formance on their part; and that they lad consummated permission for Treasury personnel to CO forward. numerous sales In that capacity. They published and cir- cularized asong their prospective victims price lists of 2. RST, State and Pressury Departments and the Joint Chiefs of Staff now DATE under corsideration the question of the 100- various commodities which were In fact plagiarized from mediate departure for the Philippines of six National City Army catalogues. When the Panco representatives discovered Dunis people in opder to re-establish In Hanila M branch of that they were under investigation they attempted to evade the National City General EncArthur has already indi- cateñ Willingness to allow the imediate entry into Manila questioning by Mr. Irey's agents and It is now believed of the of the National City people (Sir. Lejauna) aná that their activities In the field of surplus property to non beln queried by the Joint Chiefs of Staff on the have collapsed. others. We Liave received indications that 11 the Theater Comminder grants the necessary affitary permits, the State Department «ill grant passports to these people which would paint their Intediate departure for Minile. 3. de have Been Informed informally by the dar Department that General RecArthur und refused to give permission for the Impoltate departure = Treasury personnel to the Phill loss, 49 are not drafting a strong reply to be sent to General which will clairly inlicate the problems which will be greated for the Theater Communder 1f private banks are allowed to reopen prior to the re-establishment of a Poreign Funda Control differ. General EacApthur vill be informed of the (100) and complex Treasury regulations chich Leve to be enforced 02 sono AU private banking business la resumed. No have discussed U.La catter with the Philippine Commonwealth authorities and they agree on the need for the immediate re- opening of our Poretion Punda Control office in Montla. to There la no urgest need for the reopening of private banks at this 1120 ideas the Commonwelth the Government 10 making temporary canicing fucilities available b2 the stablistment of a better division in the Codeonwelth Treasury. Regraded Unclassified PRECISION TRADE MARK MICROSTAT MICROFILM BOLL 74 73 -2- PASAPHEASE OF TELEGRAL RECEIVED ( PROM: E.BASSY, CHUNGKING In addition, Henderson le recommending more efficient TO: Secretary of State, Washington cheok on government receipts and expenditures for which purpose DATED: April 7, 1945 he hopes to secure advisors from America. Henderson seens NUMBER: 585 confident that 7. V. Soons will strongly back his recommendations SECRET with the Generalissimo and will back more effective delegation On the twenty fifth of Harch Leon Henderson arrived. of economic vowers than existe now. It 1s thought by us that He 10 returning to the United States with T. v. Boong and will Hrnderson's visit has already served a very useful purpose probably have the opportunity to talk with Anbasssdor Hurley at and that his ability, energy and evident sincerity of purpose Cario. Leon Henerson appeare in very short time to have acquired numerous and have favorably impressed all Chinese authorities encountered here. comprehensive and poourate picture of situation here and of/varied Kearney, Adler of Chinese VPB and Joyner opnour that his facets (facts?) facing his. Re is considering recommending to the recommendations are sound and nerit our backing. Generalissimo, ne a result of his survey, that there be established The foregoing repented to Cairo together with our in the Chinese Government a powerful connittee or secretariat on the 533 of the twenty ninth of March. lines of the British Jar Cabinet secretarist or our DEM to guide and coordinate proper notivities of various Government agencies ATCH-SON such as Food Ministry and Communiontions Ministry (in connection with transport control). This organization, as foreseen, would have an American of a stature similar to Henderson's 6.8 chief DC/L:11G 4-13-45 advisor and competent American advisors for such fields 88 price control, taxes, governmental budget end so forth. In connection with price control, ve believe Henderson understands thoroughly that there is looking here, asong other things, both the governmental administrative machinery for operation of such control and A-1 officials, merchants and the public, the will to make such controls work. The planned efforts of Henderson in this direction may therefore be limited to some essential commodities as suggested in meno summarized in our 533 of the twenty ninth of March, In addition RECISION TRADE MARE MICROSTAT PAT. OFF. MICROFILM BOLL NO. 76 CABLE TO WINANT FOR MANN, LONDON, FROM THE VAR REFUGE BOARD - 2 - for your information following is tert of cable So, 2045 venic after next total arreet being 20, They vill be dated April 7, received from McGlelland: operated by gasoline released to ICNC by SHARF for WEB procrase first tank carload of which 18 already en route "Additional to Legation's 1988, April A regarding from Mararille to Geneva, ICHC's Division of Special Assistance's plan for truck- ing relief to civil detainees in Germany, *Our thirty tires and tubes have arrived and first advance of Diesel oil (Legation's 1991, April 5) will be "7ive Resault trucks instead of sie BOW scheduled nate to ICRC today, Herbert Entakt is now in Geneva leave Switzerland April 9 for Lurbeck carrying 16 tone accelerating aprancements with ICRC to sake at least four relief goods and gamoline, This convey if feasible core trucks available for you shipments on basis tires will offload supplies at Bergen Belson en route, ICHC and oil, plans have these trucks remain and work out of Lusheck distributing WHB parcels, shipped over from Goteborg, -1000 informa ne that In addition to above mentioned to concentrations of detainees at Ravenabrueck and trucks s'emall convey of five wood burning Swinn trucks Hamburg-Neuengeme, ICRC is now checking with Goteborg beloneine to commercial transport concern of Breendli in on number of VRB parcels already et Lusbeck all of which Jasel will Leave Switzerland next werk in effort to et committee hopes be able distribute area in question within through to Dennark to repairiate Swine citizens there. comine three weeks, Breendli has agreed transport ten tons of relief roods to vosen's concentration caso of Bavensbrunck for ICRC. "Present stress of Luebeck Hanture area in activated by ICRC fear that this region may soon be out off and by "The four trucke which Starmbuch VAP fortunately fact that no trusts are at present available in that rone able to rent (Legation's 1740, March 21) left Switzerland for civil detaines relief, Committee 1s accordingly on March 29 with ICRO assistance but headed for Theresten- anxious send in more rellef and mana of transport to stadt rather than Bergen Belson - previously reported." distribute it before it is too Inte, "Tour more Renaults with expecity of 3200 kilos each scheduled depart Aeril 12 or 13 for Dechau, They will THIS IS via LOSDON CABLE NO. 66 also remain this area to distribute parcels to large number sealler camps administered from Dachau, -10XC further counte on being able ship within next 11:30 ... tes days by rail to new ICRC depot at *avenaburg between April 12, 1945 Swine border and Munich, balance of approximately 50,000 au parcels remaining in Switzerland, Plan 1* then to move these parcels on by trucks as ranidly as possible to accessible camps near Munich and to east and northeast thereof montioned ay 1988. This trucking will ba done with 11 2028 benaults which ICRC's If le doe to receive Regraded Unclassified PRECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 78 PLAIN Leader MI-1242 Stockholm Dated April 7. 1945 Distribution of true reading only by special Dated April 7, 1945 Rec'd 4:30 D.S. arrangement. (SSCNIT w) Stecid 2:45 p.m. Secretary of State Secretary of State, Washington Washington. 3675, seventh 1298, April 7, 2 p.m. FROM SANL G. MANRISON Report has been received from Evensen and Transmal Department's 2676, April 3. 1945, covering their operationsiin Horway during February. Through regular licensing facilities 675 packages were The director of the intergevernmental committes sent into Norrey containing about 10,000 k.g. foodstuffs, en refuress earnestly requests approval of Trance and 2230 k.g. of clothing and 350 pairs of shoes. Ap- Relgium projects (Embussy's sirmail despatch No. 20343, proxinately 28,000 k.g. of foodstuffs were sent in January 12) already annoved by Prittish Government, and through underground facilities, as well as absonsider- also Spain and Partural projects (Rebassy's sirgram able amount of plothing, footwear and other material. A-109 of February 17). I have studied these projects This is our 1332 NRB. In addition the group sent in carefully in conference with 190 staff and recommend through the underground about 2 tone of clothing and they be approved without further delay. Funds carried other supplies for certain Swedish organizations. Ap- ever free 1944 practically sufficient to finance all proxinately 1100 Norwegians ware brought to safety in four proposals. Must be sporeved by 100 executive Sweden during February through underground routes committee after British and American approval - further financed in part/tp American labor relief. delay will greatly handicap affectiveness of action. Due to lack of funde sperations were necessarily Veuld be neet helpful If approval could be received by April 11, date of executive committee meeting. curtailed during this period. WINANT Johnson VTD ja ID.00 Chauncey (for the Sec'y), Cohn, DuBois, Gaston, Hodel, jutchison, McCornack, O'Deger, Files Regraded Unclassifi RECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. Ankara + #473, April 7. 1 D.S., from Ankara Dated April 7, 1945 Rec'd 11:42 p.s. - informed by Sumer that the Turk Deversment le pre- pared to permit the persons in question to enter Turkey Secretary of State, in transit If the British Government will undertake to permit them to enter Palentine, The British Ambas- Vashington. dader informe as this afternoon that be informed Sumer during their conversation last night that be would PRIORITY telegraph to Lenden (he has since dene no) requesting instructions - to whether the British Government to 473, April 7, 6 p.a. villing to let these indigiduals enter Palestine under the quota sobeme, Peterson states - of the persons Prier to the receipt today of Department's reference are German Jews, some of other nationalities. No states cable 1 had discussed with 7ereign Office, the Brittsh further be cabled to Lenden --- days - en this subject Tabsety and the Swedish Legation the question of the and the reply be received 414 net encourage his to be- 134 Jewish persons en beard the INOTTNINGEOLM which 1s lieve these persons will be admitted to Palestine, I expected is Tetanbul en Menday. (RIDEPTAL 393, April gather he feels a reply from Lenden my net be forth- 5 and Lenden's 19, March 28), cesing immediately. Just prier to his departure - April 5 for the In view of foregeing Department my desire to Sea Francisco Conference as . member of the Turk discuss this phase of the matter with the British delegation, Acting Secretary General Artia informed Gevernment, I had discussed this subject with a - these individuals were embarked en the INOTTNINGBOLM Secretary of the British Tabaney et the time Lenden's without prior netification to or the censent of the 19-was received and liearned the cable referred to above Turk Gevernments that fav If any of them have any claim by the British Ambessador had been sent to Leader, The to Turkish nationality; that the Turk Gevernment would Secretary premised I would be informed when a realy - probably net (repeat not) permit the to disembark free received. Testerday the Swedish Minister informed - the DROTTNISSHOLM even for . temperary stay in Istenbul; that If the Turkish authorities declined to permit three and 11 micht sent them all back to Oveden from Turkey persons to disemberk in Turkey all (repest ail) Turkish en the return veyage of the I informed nationals en beard the sight be prevented Arkin that I thought any such action en the part of the from disembarking and taken back to Sueden along with Turk Gevernment might have in unfertunate affect par- the 134 Jewish persons concerned. ticularly at this time, upon Turk-Amarican relations is view of the publicity is the United States press that Repeated to Lenden as 29. would be sure to attend any such action its part, PACKER In conversation yesterday with the Tereign Office efficial who has this matter immediately is charge JM (REDGES 450, April 3) I retterated to his the point of view expressed to Tykin which be said he shared, He stated the Turk Devernment hat net yet destited what position it would take with respect to persitting these persons to land at Istenbul. I expressed the above mentioned point of view last eventar to the Ambassadar before be new the Active Foreign Minister with visa he discussed this matter. The Foreign Office efficial last referred se above informs - this afterness the Brittsh Ambassader Regraded Unclassified MICROSTAT/ OIF. PRECISION TRADE MICROFILM SOLL NO. MARE 82 Bars +1- the #2045, April 7. 6 p.a., free Born Dated April 7. 1948 Our thirty tires and tubes have arrived and first advance of Dissel sil (Lagation's 1981, April a) Rec'd. 10:10 p.s. will be made to ICRC today. Norbert Kataki La new Decretary of State in Geneva accelerating arrangements with ICRO to make at least four mare trunks svailable for VRD shipments en basis tires and eil, Washington 2045, April 7. 6 D.N. ICRO informs as that La addition to sbove-nentioned trucks a small cenvey of five word burning Svice O'INTER or VIII PROM MOCLELLAND, trucks belonging to commarcial transport concern of Breendli in Pasel will leave Ovitzerland next weak la offert to get through to Denmark to repairiate Additional to Legation's 1900, April 6 regarding ICMO's Division of Special Assistance's plan for Ovise citizens there, Praendli has agreed transport ten tess of relief goods to vemon's concentration tracking relief to civil detainees in Germany. camp of Revensbrusck for ICRO. Five Rensult trucks Instead of six nev scheduled leave Viterland April 9 for Lasbeck carrying 16 tens The feurth trucks which Sterabue h vas fortunately relief goods and gaseline, This cenvey If feasible able to rest (Legation's 1740, March 23) left Switser- land en March 29 with ICRC assistance but headed for will offleed supplies at Parges Belsen en route, ICRC plans have these tracks reasin and work out of reported. the Resignatedt rather than Bergen Belsen as previously Lusbeck distributing vaa paresls, shipped over from Geteberg, to concentrations of detainess at Revensbrunk HARRISON and Kamburg-Nemengame, ICRO is new checking with Detaberg es number of VRB parcels already at Lusbeck EDA all of which committee hopes be able distribute area in question within ceatag three veeks, Present strees of Luebeck Assburg area 1s activated by ICRO fear that this region may seen be out off and by fact that as trucks are at present available in that cone for civil detaines relief. Committee is accordingly anxieus send in more relief and means of transport to distribute 11 before 11 is too late, Four more Rensults with capacity of 3300 kiles each scheduled depart April 12 or 13 for Dechan, They will also reasin this area to distribute parcels to large number smaller camps administered from Dechars, ICRO further cegate en being able ship within met ten days by rail to sev 10% depet at Revensburg between Swiss border and Munich, balance of sprexi- antely 80,000 VRS parcels realining in Owitzerland, Plan 1a then to RATE these percels en by tracks as rapidly as possible to accessible camps near Munich and to east and northeast thereof mentioned in By 1988, This trucking will be done with 11 more Reseults which ICRC's DOA 1s due to receive week after next total agreed being 20. They will be operated by gasaline released to ICRC by SHAMP for VEB procrass first task carlead of which 1a already enroute free Marseille to Genera, Regraded Unclassified 84 COPY NO. 4 -2- NOT TO BE RE-TRANSMITTED SECRET Northern Soctor. Second British Army secured bridge- hoads. Across River Weser, North of Minden which Enomy making OFTEL NO.111 every effort to e liminate. To West this area U.K. and Canadian Armour made good progress on wide front with patrols reaching Information received up to 10.a.m.7th April, 1945. Sulingen, Meppen, Dalen and Deventer. Except in Veser bridge- head end along River Ijasel Enemy resistance light and scattered. NAVAL 6. Eastern Front, 1. Home Faters, Northern Sector, Further reduction of Germans encircled S.E. Danzig while to North Germans report their foroes an 6th/7th (night). E-boats approaching the coast off having disongaged and crossed to split of land North of Odynia. Yarmouth were engaged and driven off by a British frigate and MTB's when one E-boat badly damaged and one MTB caught fire Southern Sector. Considerable advances made Carpathian and sank. Thereafter other MIB's intercepted retiring E-boats Zone where over thirty localities taken. Purther South, but sinking ona and taking seven prisoners while our losses one North of Denube, River Morava reached on forty mile front N.E. MTB sunk and another seriously damaged but taken in tow. of Bratislava, while south of Danube advance of 25 miles made Eastward from Bretislava and capture of place two miles South 2. Mediterransan Vienna reported. Still further South fifty places S.W. Lake Balaton and on Yugoslav Territory have been taken. In Adristic, Yugoslav Partisans supported by Coastal Craft and LCO captured Pag Island (off Zare) and Kerlobag AIR. (North Zara). 7. Western Front 3. Enemy Attacks on shipping. 6th, U.S. Escorted Heavy bombers 646 (outstanding 6th,A (11420) in convoy torpedoed and sunk by bombers 9, fighters 5) dropped 1409 tons through cloud railway U-boat off isle of wight when one fatal cesualty suffered and centres Leipzig, Hallo end Gera. 265 survivors rescued. U.S.Tenker (8537), torpedoed by U-beat off Cape Cod but taken in tow. SHAEF (Air), Medium bombers dropped 201 tons on three railway yards Central Battle Area, Ammunition dump Southern 4. Anti-Submarine operations. area and strongpoints Vest coast of France, while fighters and fighter bombers 864(missing 9) operated whole front destroying 5th. U-boat probably mined and sunk in St.Deorge's or damaging 600 road and rail vehicles while also inflicting Channel. Enemy air casualties 13:0:13. 6th. Norwegian NTB 715 torpedced large U-bost when on surface off Bergen. Promising attack also made off Cape 8. Mediterranean Wrath by Liberator. U-boat also sunk(four officers and fourteen 4th/5th (night). Liberators 75 (missing 2) made and a Canadian frigate after torpedoing a merchant ratings taken prisoner) off Isle of Wight by a British vessel. destroyer concentrated attack railway centre Bescia (194 tons). 5th. Escorted Heavy bombers, 504 (missing 1) dropped 876 tons on three railway targets, airfield and shipyards in MILITARY. North Italy, and elso 272 tons on railway bridge Yugoslevis. Tactical aircraft 1446(missing 8) attacked communications and 5. Vestern Front. other targets South Germany, Austria, Yugoslavia and North Southern Sector, Units of Seventh U.S. Army advanced Italy, with good results while inflicting Enemy sir casualties Hammelburg twenty have been reached while despite Enemy counter attacks miles in area North Furzburg where Bruchenau and 20:0:16. more ground gained in and South of Furzburg. beyond Gotha and Mulhausen while Cassel now occupied. First and Central Sector. Third U.S.Army Armour pressing on South U.S. Army where steady gains made while other elements in Feser conjunction continues attack Enemy Ruhr pocket from East secured Hamelin in which area soveral small bridgeheads scross between Cassel and Minden. Armour of this latter Army have with those of Ninth U.S.Army now closing up to River River Waser have been established. Regraded Unclassified L 83 NOT TO BE RE-TRANSMITTED COPY NO. 4 -2- SECRET Northern Sector. Second British Army secured bridge- heads. Across River Weser, North of Minden which Enemy making OPTEL NO.111 every effort to liminate. To Test this area U.K. and Canadian Armour made good progress on wide front with patrols reaching Information received up to 10.a.m.7th April, 1945. Sulingen, Moppen, Dalen and Deventer. Except in Feser bridge- head and along River Ijssel Enemy resistance light and scattered. NAVAL 6. Eastern Front, 1. Home Vaters. Northern Sector. Further reduction of Germans encircled S.E. Danzig while to North Germans report their forces as 6th/7th (night). E-boats approaching the coast off having disengaged and crossed to split of land North of Gdynia. Yarmouth were engaged and driven off by a British frigate and MTB's when one E-boat badly damaged and one MTB caught fire Southern Sector, Considerable advances made Carpathian and sank. Thereafter other MIB's intercepted retiring E-boats Zone where over thirty localities taken. Further South, but sinking one and taking seven prisoners while our losses one North of Denube, River Morava reached on forty mile front N.E. MTB sunk and another seriously damaged but taken in tow. of Brotislava, while south of Danube advance of 25 miles made Eastward from Bratislave and capture of place two miles South 2. Mediterranean Vienna reported. Still further South fifty places S.W. Lake Balaton and on Yugoslav Territory have been taken. In Adristic, Yugoslav Partisens supported by Coastal Craft and LCG captured Pag Island (off Zara) and Kerlobag AIR. (North Zara). 7. Festern Pront 3. Enemy Attacks on shipping. 6th. U.S. Escorted Heavy bombers 646 (outstanding 6th,A (11420) in convoy torpedoed and sunk by bombers 9, fighters 5) dropped 1409 tons through cloud reilway U-boat off isle of eight when one fatal casualty suffered and centres Leipzig, Hallo and Gera. 265 survivors rescued. U.S.Tanker (8537), torpedoed by U-boat off Cape Cod but taken in tow. SHAEF (Air). Medium bombers dropped 201 tons on three railway yards Central Bottle Area, Ammunition dump Southern 4. Anti-Submaring operations, area and strongpoints West coast of France, while fighters and fighter bombors 864(missing 9) operated whole front destroying 5th. U-boat probably mined and sunk in St.George's or damaging 600 road and rail vehicles while also inflicting Channel. Enomy air casualties 13:0:13. 6th, Norwegian MTB 715 torpodoed large U-boat when on surface off Bergen. Promising attack also pade off Cape 8. Mediterrenean Wrath by Liberator. U-boat also sunk( four officers and fourteen 4th/5th (night). Liberators 75 (missing 2) made ratings taken prisoner) off Isle of Wight by a British destroyer concentrated attack railway centre Bescia (194 tons). and a Canadian frigate after torpedoing a merchant vessel. 5th. Escorted Heavy bombers, 504 (missing 1) dropped 876 tons on three railway targets, sirfield and shipyards in MILITARY. North Italy, and also 272 tons on railway bridge Yugoslavis. Tactical aircraft 1446(missing 8) attacked communications and 5. Western Front, other targets South Germany, Austria, Yugoslavia and North Southern Sector, Units of Seventh U.S. Army advanced Italy, with good results while inflicting Enemy air casualties Hanmelburg twenty have been reached while despite Enemy counter attacks miles in area North Vursburg where Bruchenau and 20:0:16. more ground gained in and South of Turzburg. beyond Gotha and Mulhausen while Cassel now occupied. from East and Central Sector. Third U.S.Army Armour pressing First on South of Ninth U.S.Army now closing up to have U.S. Army where steady gains nade while other elements River Vesor continues attack Enemy Ruhr pocket in conjunction with those Cassel and Minden. Armour of this latter Army between secured Hamelin in which area several small bridgeheads across River Feser have been established, Regraded Unclas ADLL NO. NOT TO BE RE-TRANSMITTED 4 COPY NO. SECRET OPTEL No. 112 Information received up to 10 0,0,, 6th April, 1945. NAVAL 1. HOME WATERS. 7th/8th, Five E-boats operated off Ostend and preliminary reports state two sunk by our patrols. PARAPERATE or TELEBRAM KNOWIVED 2. FAST INDIES. Four of H.M. Destroyers recently sank one coaster and one junk in Mergui Archipelago and also shelled radar station Great Coco Island (N. Andamans). PROMI 3. ENEMY ATTACK ON SHIPPING. 7th. A 7176 ton U.S. merchant TOI Securitary of the Fashington veasel in inward Atlantic convoy torpedoed off Anglesey but towed into port. DATED: April s, 1945 MILITARY - - 4, WESTERN FRONT. Southern Sector: During last two days non 2nd French Corps made general advance of eight to fifteen miles during which Ettlingen has been cleared. Armour of 7th U.S. Army Reberty's No. - dated April , is reference cable. Treasury reached River Main Se Wurzburg, while to north of town is now approaching Schweinfurt. Attachs Aller, with Dr. long and are 10Pt for Weshington yesterday, Central Sector: 1st and 9th U.S. Armies have closed to River Weser between Cassel and Minden, while armour of latter has April 7. Treasury should be Informed. established large bridgehead east of Hamelin. Northern Sector: Armour of 2nd British Army attacking N.E. now 18 miles S.S.E. Bremen, while bridgehead over River Weser north of Minden being consolidated. 5. EASTERN FRONT. Southern Sector: Further progress made - N.E. Bratislava, while to south of Danube Klosterneuburg (N. Vienna) captured and street fighting reported in southern parts Vienna it- self. 6. ITALY. Adristic Sector: 8th Army troops made slight progress south Lake Comacchio, In west Coastal Sector U.S. troops of 5th Army made small gains and beat off counter attacks immediately east of Massa, 7. BURMA. Central Sector: Both sides regrouping after battle of Mandalay Plain, while our leading division supported by armour continues advance south Meiktila and is now 10 miles from Pyawbwe. AIR 8, WESTERN FRONT. 7th. 1257 escorted U.S. heavy bombers (22 bombers, 6 fighters outstanding) dropped 3074 tons visually on targets north and east Hamburg among which six airfields (1200 tons) four railway centres including Neumunster and Schwerim (541 tons), two explosive works (716 tons) an ordnance depot and two oil storage depots (617 tons) while at saze time inflicting enemy casual- ties 104,19,28 in combat. SHAEF (Air) medium bombers 237 dropped 364 tons railway centres Northeim andGottingen with good results while 1944 fighters DC/Lays 4/0/45 and fighter bombers (7 missing) operated northern and central sectors destroying 40 AFV's and 270 N.T. in Central Sector alone end also inflicting enemy air casualties 13,3,2 in combat and 47,2, B4 on ground, Coastal Command Beaufighters 21 attacked shipping off Vadheim (Sogne Fiord) when two ships of 2000 and 3500 tons and escort vessel left on fire. 9. MEDITERRANEAN. 6th. 387 U.S. heavy bombers dropped 841 tons railway yards, bridges and other targets North Italy. 1032 tactical aircraft attacked communications, supplies and close support targets North Italy and Yugoslavia. 10. BURMA- 5th, Heavy bombers attacked supply dumps Rangoon (134 tons) while 231 tactical aircraft attacked other targets. Unclassified RECISION TRADE MARK MICROSTAT/ MICROFILM BOLL HO. = 88 von DE SECRETARY'S TITAL 87 0 and har Departments in his discussion with thes the provious afternoon. The sale that be and checked his com recollection of visat the President April 9, 1945 had said with 14, Col. John Boettiger, who had been present at the Conference on the Treatment of Demany and Date Rr. Dettiger agreed with the following survery Secretary Forgenthau's Office of the President's views: March 23, 1945 9:00 della 1. There should be provision for central additistration for some of Lie national public services. Premits for the Treasury Deport- Decretary 2. The Binte Department's craft directive of Earch 10 abould be nest IN Wilse respition. Dr. Coo for the State Department in Clayton 3. Actite from reparations, Gertian industries Aud the Deman sconomy T. should be left Intent for German use. The President definitely did not For the Har Department Dr. lieCloy want to beavy Industries. known Milliring 4+ should be side to decentralise Ure political structure. Date be as - decemicalization as pussible in the supere of At the Decretary's request, the discission started - farw cimise commis activity. before the arrival of the Secretary and IN reClay. Mr. Clayton visted that be was la favor of having the (100) and the document with be M in undlogr asked - Clayton wisher vis ves a correct inter- BOWD to the Treasury the day before A) to Sixe Precident The protation of scat the President titul said and is diayton stated that it like approval. R. White Clatribited copies of 4 progrased donu- mas. It TES agreed hg the group toat stay result review in Welloy's prepared Ln Lin Treasury (Allocheant 0). General additing in -rder to zue last voll it sainted out the points which the announced that be inex that 1. Le01oy - = report, comico of which resident winned at, used. would be available as 1008 LE - Holloy - c). 0 In subsequent discission the following store siteSbuted Document to the medicat at the sension of the (monding day-mainly by Dr. InCloy. lir. Whyton anied water the policy lei the treasury in 2 A was Incomplatent also the contence stated the and Quies velo 1001 were to be attriated bet that no "phould avoid comping reconsibility for the of Cw Internal - country The Prodident WEST quoted as laving said that he lad rade a ndotabe White valid - 014 not tidnk that there = and Insuristency, but st Quilee and tat le idease unio on Charchill. The President lad told that the Language serely almod that the toose ef mervision stilich - the me that they could tell by reading the that Charchill to be exercised vas not DUE which vide mite yes responsible for every lad artital 11, (or it used the work *pastoral* which the President said detail of the seens to of Dereamy. - Clarton declared ta vicêe our cave trught of Jaing in tide constion. that le thought that Me had to withing tesponalbility. IN Wills stated that la Mout that the President deffactly ditid not want - to Submite Controla assess that responsibility. The President ver said to have been misloss the code for No. Glayton futher alderted to the League of the treasury --- gentrola in compled The Idad of controls be would be seut wideh stated that activide addition should be administered and inclined to use muld ue conditions of say three Gerrana to a committee operated on a decentimlised vale. lir. Con pointed out that this - who would le told that they ad to do that and time oz see that thus and to the X No Getral with could accept thus was done. If usings siere not carried cet they should ber shot. any Ameticas or parte of ms, If 11. Cound it compary to dontact The President vas said to have used retirning as a good example of 6. con- these flunations contrally. in lattlers said that the State Department trol with to thrught the Allies should not impose on Demany or try to agreed with 2 B of the Pressury document about the distribution of - no. Be thought this shind be to the Germans. centrallaing the political structure. drive Stapdard of Uring The President's Discussion the President thrught tist we not be responsible for minisip- in LoCloy that Lie HER Department drift lad been nothed out Ing a stationd of living in Demany, He thought that of course on Lbs tenls of stat the President told Ce representatives of the State an should feed the German people to prevent then from starving and he Regraded Inclassified MICROFILM 90 thought that clarvation ought to ce the line at with our positive 10- had taken yesterday, The President - bound to object to - policiou, termation begin. The President again mentioned Brip for feed- 1f given 5 nd opportunity to pass uned then. ing the Getzan people. Homever, Fr. Entioy said that the Freatment had :ot objected to che words and unrest", The Decretary felt cure that now this group could quickly work out an agreed policy. lie had enjoyed working on this natter with Rr. MoCloy. They had worked together in complete frankness, each low visere the other stood, and be appreciated vist In Medloy had done in recent days The President said that be (1) not old Vives ITD this out- within the limits of the instructions given his by Secretary Stimson. Jeet, lie had continued specifically that le would let the Getrans retain Be and Mr. Clayton had worked closely together on the French lend-lasse such industries se acide tools and loconotive Do long matter and deside difficulties had come through to anagreement, widch he se the Germans used their Industries for their UNITED Internal neede, be (Socretary Vorgenthan) had had no occusion to regret. had IVI objection to their issues a estated The revident sale be therefore did lot telieve In such tings as rulaing the sing and Traft Presidential Directive otherwise dectroying German Industry. (Compare, Comitary's moord of telephone conversation the preceding day th fr, LeClay, in Actionity of the Control Council with the latter had caid that the President thought that seeting could be dogs to outract Germen industry but that It would take societ The paragraph drafted by the list Department visa accepted, with only planning and handling.) ednor changes. Administration Deceptralization The President - moted as maying that be was open midel no the The for Department drait of Life paragraph WILL associed with minor question of what natters had to be handled centrally. Do they's that changes after 4. discussion. Er. Clayton and Mr. Watthews said that they title and nay other questions could not Le settled In details and of certainly agreed on the question of political decentrelination. En Methoy Vice; that THE had to got Into the country flast und tela = look and ces pointed est that too present draft followed the President in englusising what was peacible and imposible. docontralization by permitting central control of the national public services. Secretary resurios Controls Decretary mide the following ground renaria Ln the det part of the discussion both before and after The LeCloy apoles: Time adotences are accepted as drafted except that industrial discressiont MISS inserted as a category along with demilitarizati n The latters wideh this - Ind been atiad to deal with vara army where controls wild be cerditied. the most Important which would help to - the peace. AS this the la lide life the decretary ad only two objectives: Shit, to help vin the Mylag var, and the accord to help made & lesting place, lie orgaldered the future triatment of Delivery so crucial for prince that le was willing to the was substantially that proposed by the Unr Department. say that this conference was oos of the soft inportant in widch he had ever participated. International Transpetions If be ad not - evaluated the subject, le world not Date raised The finh Department had proposed that exporte and Importe should be concerning the Stite Department's druft directive of Larch 10. controlled with the aim of raiding Germany self-contained. At the suggestion 2.00 the coment la sew the document last vosic in in Statilidus' office, of instre. White and Coo this vas changed ao that all Aconomic and f1- he led never doubted that a cerions virtake vus being nace. to ban enda nametal transactions of an international character sould Le controlled with then that the policies tiervia anotated were bad and that le sure the - of preventing from developing g var potential and for that they were centrary to the President's views. lie hoped tiat Unre other military occupation objectives. At lie. white's under a sentence would not be any burt feelings as e Mult of the actions wideh be lad se also Inserted prohiciting the extension of credit to they by any taken, but Ln the circumstances he had relt that there THE he Incore. and Clayton violed the Contro "email to n- could do except tall the President exactly vist he timught. lies vas sorry tain an everyoney power on tide atter and the final sentence was ao that En Stinron had considered that he sight to se out of the Held of worded. general policy for Germany. This had meant that be (Secietary Forgest/au) had had to fight this matter to hinself. Be hoped be would be excused If be said that be Alt very (Ind about the setions widch the President Regraded Unclassified TRADE MARK MICROSTAT MICROFILM 6 91 92 Deparate na specific language. Homer, Ar. Modley, supported La Mr. Clayton, urged that tide paragraph und LS far as e uld be done in line with the President's After discussion of the reloed by - Goe, It was agreed to discussion of the preceding day. Thereupon the Secretary said that although add a sentence providing that recurrent reparations should not by Under be filt this THE the lay problem, be also Telt that the President vasa so form or amount require the modillitati if German havy Industry and fimily conditied to a program of reducing the cise of Deman heavy Industry should not foster the dependence of other countries upon Commany. that the President was certain to tamie noze detailed Instructions at a later the The Docretary said Ust since he ad not been present at the Lr. Clayton made the point that E. First charge on all exports with conference referred so, be did not wish to urge the adoption of language were necessary for reparations or as ervise should be e se acticient 10 watch Person. NeCloy and throught went beyond or was contrary to pay for Inports. De thought visa List the proceeda of exports should Le what the freeident and mild. divorted to pay for Importe in order to revent a cituation artsing when certain countries finance the imports and certain other countries got all Document the exports as reparations. Hr. Coo angued Dat Unle aight be construed as nunctioning a consideraido wine of imports which we alloged The Goorstary suggisted that because the comment was Inportant for to be recessary in order to pay for regarations. Solever, the consensus future proces and because the Prestdent had bail may documents presented was that 11 would not le to construed. to his on title subject with the signature of unly can person upon thes, be thought that the pen in the mon should all nign the expirated draft, External Asseta which TM to P. to the White love. This vas to: Dr. Walte and Dr. Con mished to lisve Insurance insepted statting that of largh 10 Document all of Generary's external assets were to be relued and hald for reparations, restation and other war claim. To Clayton of first urgad against Decretary and Uset unless it the enterrassing to the this as enclisention lot later agreed that provided it MALE clear that tue Department of State be Unight that the leading of the present document external Asseta 1675 to be held for legiticate claims of the Visted lations should readly may that the March 10 directive via withinm. Dr. Clayton there was no Eljection. Hr. Sociey full toot the quilinet - not Leportant stud that he Delived that Visa would Le clearly understood, since if the enough to Le inserted in this direction. in Patts at in Coo also urgnd Product approved, Its later du or would cause it to miperaeds the - that providing that all tuture angilations of foreign excerience odding account. The Decretary replied that le was afraid there would be donets during to control writed should be received for regarations and - IN white asked Lr. DeCloy and Determ1 Mildring restitution. The of todo process - to too technically Waster elergine in tie Any welld underctand that this document superseded unacceptatle or too restricted to De Insuried In tala benef. Secretary the Versh 10 directive. It. le01oy said that they would on the polate which Morgecthau, IN Clayion and Lit. Vetley stated Ust they sere age ed in vore severed. - white asked weter it Modild be clear In the Attly that principle about talding may General's extenal assits using times for 20- Ude dreament took or codence over and course the revision of my other parations and und not allowing DEF to accumulate any during document contrary to 1% To Resign that the Any practice was always the control period. It TUR thought that the lest place to CAST) out specialeslly to what regulations were recinded by subsequent this intent wold be in & later Candal directive. registions. General Hilloring sald that R. white was all right about And but tist mach succeration - deps only stan all the agect/le German City emperati - muld be Se Winight that 1a the present Instance Unre - to may you could not thes, The paragraph on title caller, wideh placed the responsibility the the administration and efficiency of equipmie controls on the General people, Secretary Vergest DU returned to 410 joint saying that 15 Liere FOR WAS accepted practically an written. no objection be thought U.S. It should be ade clear that the Harch 10 directive - Term had been a lot of o severior shout that Decarification and the New Criminals directive and DOES people wight have reen it En would at see the present one Lp. Dayton milled that they would be clad so do 1.1. If Deceasary but There were accepted with only due - with 952 other throught 11 White unled Whether the Harch 10 directive than textual, The war Department druft Lad stated that "all other unde- had been sent to -N Signature -T. Clayton thought 16 had not. Fre Watthews simile persons" would be resered from wille office, use. This was changed said 11 had but de not think - Wast had modical 10, 14 to "all other persons licatile to allied purposes* after - Glayton and He 1916 W -. Organization said that Winant night not under- Secretary Vergenthau had mited points about this. start that the old document NOB 409 processeded, R. Authors said that 21. idnet would le informed almost within the hear that the President AUZ signed 14. Secretary desired a much strenger paragraph than ta one directed by the our Department. in White and -1. Coe suggested certain Regraded Unclassified RECISION MICROSTAT MICROFILM or 24 7 93 concluded, the Decretary stated that he now felt good for the first the in E week. lie had been - disturted about the Earch 10 document. lie In reconse to still mother statent to the Decemtary la - if had been shocked to loarn that it and been approved up and down the line, specific language about resciating the March 10 directive, Clayica and be know that - Stettinium had not had an opportunity to stody 15. pointed out that since T. Otsttidus bel stigied the Fardo 10 documents, the President lad not resestered 11, and It van clear that the deciment to and 12. would be to received the Insurtion of is not loss presented to the President are the important state paper it Tangurge requested by Fr. inless they classied with - - with Kr. Clayton Interjected to my that he had nover DOED the document Secretary Torgentinu said tal is understand that they wind until the day e was called to the White House. The Secretary und that hegitate to to withdraw n. document smich had been algred by felt wat Said been distited tide curning was - improvement chinf, tefore they had any chance to valid: with tietr adel. lie and LEAS very cordous details lad been corrected. the Secretary thanked wold not press Ma request. the -en resent for the file my In with they ed worked and said he tesped that these agreemate on policy would serve so mooth the viole Procedure for Cleantrose miles of doaling vita Domany. Vr. belloy said that la manted the approved of this in. said that the Any - main letter matim/Lud now and that document for the alternoon If conside. If It Visa approved the Labrided the product vas one unier which they could really work. Line Clayton shertly 12 as with 11. - term1 adjustion - discript and in sale that they too TOTE fully estimited with the present It there and later with the dillary and et pleatic of tita decemb, and believed that it 1° internated the views of their Department. government la London. Bear taxy largut - 024 tist the appropriate with to present It to the Proplient - To loss, me is accorated that is is done alter caldnet to the afternoon. The Classen DIE ested that Secretary present it to Lbr no decidined, in said be world be 14 to be incent, 11-m. Sport lostsed bis to . it vus agreed that the Decretarion of State and - sid the Submitary of har oz als representative world ses the President Uter of Branting Secretary largeties, - Wagton até 7. cred 00 noon the acceptance of Vile doclarent, ace 2007 (mythed) and Its applications, their other directives would have to be revised. The all three agreed that the policy of cooporation which ad benn followed In On insting of this decument would be followed in the Amiting of DE declarate and that representative of NW these with will titions, to sit around the table. Reparations In Lice course of the discussion, - Clayton pantinned peveral one formuses had Leon had with No. Zahla short regarations. understary Lorgentime said tist the Treasury too Total conformed with 18, the Secretary suggested, and 11 was -rood by T. Classes, that tax various (Uscussions of reparations would at be lela dependaly in the return lot t/at to agencies concerned muld all duma together. Fornonnel Ige Germany During the neeting, in stated End - was withing to get Leseius Clay for the top job in Genuro and that to - hopeful that Rr. Tyrone would release Rike Be also und that Druger wanted Les Dougles for - top qualtion there but tist in acceptance partiy decorded upon we was to in the load Bille Constury's Conducting Amarta 10:14h Her Qe document was algud and after of procedure had been Regraded Unclassified MICROSTAT/ no, M, S.M. OFF, MICROFILM ROLL NO. Claytr. ON CONTROL OF GENART 1. Degree of responsibility for the functioning of the German The German economy La expected to yield & substantial amount of reparations in capital equipment, current output and labor services. The German economy must provide a ainimam living standard for the German people to prevent disease and unrest, and aut contribute to the saintenance of the secupying forces and the care of millions of displaced persons. & large part of Germany's productive wealth has doubtless been destroyed and millions of Germans will be homeless. Transportation facilities and public utilities will be seriously disrupted and impaired. Since the Masis have occupied the key positions in the German economy and since such persons will either flas or be taken into eustody, it will be necessary to find expetent German personnel to take their places. = Buch reorganisation as this will involve will be the responsibility of the occupying nations. It is contemplated that Germans will continue to administer the German sconomy but under & close supervision of the authorities of the coupying nations similar to the supervision that & Board of Directors would exercise over the administration of a corporation. 2. Decree of mentralized control in Germar- The political Government of Geruany should be decemtralised to the highest possible degree. Centralised control by the compying nations of certain economic functions such as the public services, transportation, communications, postal service, banking, etc. will be essential to efficient operation. All socnomic activities of a nature not requiring national direction should be inistered and operated un a decentralized basis. PRECISION MICROFILM BOLL NO. B UNITED STATES VIEWS ON THE TREATMENT or MARY 90 07 TOP SECHET Decentralization and Controls 23 March 1945 (1) It La recognized that the Control Council may find it necessary und desirable: The following is a summary of U.S. policy relating to Germany in (a) To use controlized instrumentalities In Germany the initial post-defest period. 18 soch 11 will be introduced into the to onery out those functions of public services (trans- European Advisory Comination, and will be used 43 the basis for directives portation, comminications, sto.) which it is essential to conduct centrally for the accomplishment of the Se be !ssued to the U.S. Consanding General in Germany. purposes of military occupation. ---------- (b) To take such messures with respect to the administration of the German internal economy no may be To authority or the Control Council to formulate policy with respect necessary to prevent starvation and epidemic which night to mitors affecting (Bermany as a visole will be paranomt, and its agreed endanger the security of the occupying forces and the accomplishment of its purposes. policies will be carried out in each sone by the none commander. In the (o) vependent upo. the decisions readned by the abseree of such agreed policies, and in nattors exclusively affecting his Reperations Commission in libeoow, to take measures with respect to the German Internal economy ES may be - sone, the some comander will exercise his authority in accordance with necessary to collect reporations. directives received from his - government. (2) Subject to decisions on the above by the Control Council: The administration of alfaire in Germany should the directed tenard (a) de should maintain supervision sao vote power to decentralisation of the political structure and the revival of local but should avoiu assuming responsibility for the function- Ing of the internal German economy and its economic controls German economy shall also be decentralized. However, and should Leave the problem of te maintenance nno rehabil- itation of the German economy in Derean hands. to the admission extent required for carrying out the purposes set forth herein the Control Council prait or establish central control of (a) essential (b) The political structure of lettery should be de- centralized to the Lighest possible degree and economic national public survices such as railroads, comunications and power, (b) activities should be coministered and operated on 11 de- controlized banis. To this end, local, municipal and regional finance and foreign affairs, and (c) production and distribution of essential organs should be strengtheneu to the extent possible. comoditie. flute shall be equitable distribution of such commodities be- German Industry Emair the several sono. (=) Se should ain at the maxima possible contraction of Controls say be imposed upon the German economy only no nay be necessary Gorman heavy Industry through the program of reporation removals and otherwise. These measures should leave Industry for Termary's (a) to carry out programs of demilitarisation, reporations, and external compatic needs, but in the program of reparations and restitution the needs of liberated areas shall take precedence over the needs relief AS prescribed by appropriate higher authority and (b) to assure the of Germany. Recurrent reparations should be in such form and production and naintanance of goods and services required to neet the needa amounts as not to require the mintenance or development of German heavy industry, and ss not to make other countries dependent upon of the compying forces and displaced persons in Jeruary, and essential to Germany after reparations cease. prevent starvation or much classe or civil unrest an world endanger the Regraded Unclassified RECISION TRADE MARK MICROSTAT/ MICROFILM SOLL NO. 98 99 TOP SECRET - 2 - TOP SECRET occupying forces. la action shall be taken, in expection of the reparations - 3 program or otherwise, which would tend to support basic living standards in shall be arrosted, brought to trial and punished. Hast leaders and Jernany on a higher level than thom existing in any neighboring Injued influential (ast. as porters and any other persons dangerous so the ation. German exports and importe shall - controlled the ain of occupation or 114 objectives, shall be arrested and interned. making Gurvany self contained. A suitable program for the restitution of property looted by Commine In Live imposition and maintenance of economic cuntrols, authori- shall be carried out prosptly. ties will to the fullost extent practicable be ordered to proclaim and The Ownen armed forces, including the Jeneral Staff, and all para- name administration es such controls. Thus 14 will be brought lose to military organizations, shall be prom/tly deschilized and disbanded in such the eruan people Lt the responsibility for the administration of munis . manner as permanently to prevent their revival or recrganization. controls and for any breakforms in those controls, will must with themselves The var potential stall be destroyed. To this end all implements and their use authorities. of RIF and all specialized facilities for the production of shall The Jast party and its affiliated and importined organizations and all be reised or dectroyed. The naintenance and production of all aircraft and Sast public institutions shall be dissolved and thate revival prevented. inplesents of var shall be ,revented. last and militaristic activity or propaganda in any form shall be prohibited. There shall le established # coordinated system et control over Jersian education designed completely to aliminate last and dilitarist doctrines and to male possible the development of democratic Ideas. last laws which provide the basis of the dillar regine and which establish discriminations on grounis, race, creed and political opinion, stall be abolished. All mmbers of the last party No. have beeu sore than nominal parti- cipants in its activities, and all other undestrable persons, will be received from public office at from positions in responsibility In private enterprise. Tip oriminals and those who have partinipated in planning or currying out an enterprises involving or resulting in atrocities or var orines, Regraded Unclassified no.17 TOP SECRET TOP SECRET 30 March 1945 101 DIRECTIVE to COMMANDAR-IN-CHIEF OF U.S. PORCES OF OCCUPATION REGARDING THE GOVERNMENT OF DESTANY 1. The purpose and Scope of this Directive: . TREASURY DEPARTMENT This directive rescinds JCB 1067 and is issued to you as 100 Commanding General of the United States forces of occupation in Germany. INTER OFFICE COMMUNICATION As such you will serve as United States nember of the Control Council DATE April 9, 1045 TO Secretary Morgenthau In/mation and will also be responsible for the administration of silitary govern- FROM at. Coe FC nent in the sone or sonsa assigned to the United States for purposes of occupation and administration. It outlines the basic policies the have so far been agreed to by the Drafting Committee. Part I Le These are the two documents to take the place of 1067 which which will guide you in those two capacities after the termination of general directive and Part II is the financial directive. the combined command of the Supreme Commander, Allied Expeditionary yet. Fart III, the economic directive, is not screed In any form Force. It is anticipated that substantially sinilar directives will be issued to the Commanders-in-Chief of the U.K., U.S.S.R., and French forces of occupation. Supplemental directives will be issued to you by the Joint Chiefs of Staff as say be required. PART I 2. The Basis of Military Government: a. The rights, power and status of the military government in Germany are based upon the unconditional surrender or total defeat of Germany. The Text of the Instrument of Unconditional Surrender is at Appendix "A"- You will assure that the policies set forth in that Instrument are carried out in your sone of occupation even though the defeat of Germany is not followed by & formal signing of the Instrument. b. Subject to the provisions of paragraph 3 below, you are, by virtue of your position, clothed with suprese legislative, executive, and judicial authority in the areas occupied by forces under your comand. This authority will be broadly construed and includes authority to take all measures deemed by you necessary, appropriate or desirable in relation to military exigencies and the objectives of & fire military government. TOP SECRET PRECISION TRADE MICROSTATI U.L.N. MICROFILM RELL NO. TOP SECRET TOP SECRET TOP SECRET TOP SECRET 0 comodities between the some. In the absence of a conflisting policy 103 0. You will issue a proclamation continuing in force such 102 of the Control Council, you may deal directly with coe or more sone proclamations, orders and instructions as my have heretofore been Commanders on matters of special concern to such somes. issued by Allied Commanders in your sone, subject to such changes as 0. Pending the formulation in the Control Council of uniform you may determine. Authorisations of action by the Supreme Commander, Allied Expeditionary Force, may be considered as applicable to you policies and procedures with respect to inter-sonal travel and movement unless inconsistent with this or later directives. of civilians, no civilians shall be peraitted to leave or enter your 3. The Control Council and Zonea of Occupation: sone without your authority. f. The military government personnel in each sone, including a. The four Commandere-in-Chief, soting jointly, will constitute those dealing with regional and local branches of the departments of the the Control Council in Germany which will be the suprese organ of control central German administrative machinery, shall be selected by authority over Germany in accordance with the agreement on Control Machinery in of the Commander of that some except that liaison officers may be furnished Cermany at Appendix "3". For purposes of administration of military by the Commanders of the other three somes. The respective Commenders-in- government, Cermany has been divided into four somes of occupation. The Chief shall have exclusive jurisdiction throughout the whole of Gennary agreed protocols on some are at Appendix "C". over the members of the armed forces under their command and over the b. The authority of the Control Council to formulate policy civilians who accompany then. and procedures and administrative relationships with respect to matters E+ The Control Council will be responsible for facilitating affecting Germany as a whole will be paramount throughout Germany. You the severance of all governmental and administrative connections between will carry out and support in your some the policies agreed upon in the Austria and Germany and the elisination of German economic influences Control Council. In the absence of such agreed policies you will act in Austria. You will give every assistance to the Allied Administration in accordance with this and other directives of the Joint Chiefs of in Austria in its efforts to effectuate these purposes. Staff, 4. Basic Objectives of Military Government in Germany: C. The administration of affaire in Germany shall be directed a. It should be brought home to the Germans that Germany's towards the decentralisation of the political and administrative structure ruthless warfare and the fanatical Nazi resistance have destroyed the and the development of local responsibility. To this end you will encourage German economy and made chaos and suffering inevitable and that the Germans autonomy in regional, local and municipal agencies of German administration. cannot eacape responsibility for what they have brought upon themselves. The German economic structure shall also be decentralised. The Control b. Germany will not be occupied for the purpose of liberation Council say, however, to the ainimus extent required for the fulfillment of but as a defeated enemy nation. Your aim is not oppression but to occupy purposes not forth herein, pendt centralized administration or establish Germany for the purpose of realising certain important Allied objectives. central control of (a) essential national public services such 48 railroads, In the conduct of your occupation and administration you should be just communications and power, (b) finance and foreign affairs, and (e) pro- but firs and aloof. You will strongly discourage fraternisation with duction and distribution of essential commodities. the German officials and population. d. The Control Council will adopt procedures to effectuate, C. the principal Allied objective is to prevent Germany from and you will facilitate in your sone, the equitable distribution of essential over again becoming a threat to the peace of the world. Essential - 2 - - 3 - TOP SECRET Regraded Unclassified MICROFILM BOLL NO. RECISION TRADE MARE TOP SECRET 104 TOP SECRET TOP SECRET TOP SECRET steps in the accomplishment of this objective are the elimination of prohibiting their revival in any form, will be promulgated by the Control Nazisa and militarism in all their forms, the imediate apprehension of Council. You will assure the prompt effectuation of that policy in your war criminals for punishment, and the industrial dissrument and de- sone and will make every effort to prevent the reconstitution of any such militarization of Germany, with continuing control over Germany's capacity organisation in underground, diaguised or secret form. Responsibility for continuing desirable non-political social services of such Party to make Mar. d. Other Allied objectives are to enforce the programs of organizations as are dissolved my be transferred by the Control Council reparations and restitution, to provide relief for the benefit of countries to appropriate central agencies and by you to appropriate local agencies. devastated by Nast aggression, and to ensure that prisoners of war and b. The laws purporting to establish the political structure of displaced persons of the United Nations are cared for and repatriated. National Socialism and the basis of the Mitler regine and all national 5. Economic Controla: Laws, decrees and regulations which establish discriminations on grounds a. Controls upon the Germany economy may be imposed centrally of race, nationality, creed or political opinions will be abrogated by by the Control Council, or regionally or locally by you, only to the the Control Council and rendered incperative by you in your sone. extent that such controls may be necessary to achieve the objectives C. All members of the Basi party who have been more than nominal enumerated in paragraph 4 above and only as they may be essential to participants in its activities, all active supporters of Nazion or protect the safety and neet the needs of the occupying forces and assure militariam and all other persons hostile to Allied purposes will be the production and maintenance of goods and services required to prevent removed and excluded from public office and from positions of importance starvation or such disease and unrest as would endanger those forces. in quasi-public and private enterprises such as (1) civic, economic No action will be taken in execution of the reparations program or and labor organizations, (2) corporations and other organisations in otherwise which would tend to support basio living conditions in Germany which the Derman government or subdivisions have a major financial interest, or in your sone on a higher level than that existing in any one of the (3) industry, commerce, agriculture, and finance, (4) education, and (5) neighboring United Nations. the press, publishing houses and other agencies disseminating news and be In the imposition and maintenance of each controls as may propagands. Persons are to be treated as more than nominal participante be prescribed by you or the Control Council, German authorities will in Party activities and A.B active supporters of Nazism or militarism to the fullest extent practicable be ordered to proclaim and assume when they have (1) held office or otherwise been active at any level administration of such controls. Thus it should be brought home to the from local to national in the Party and its subordinate organizations, German people that the responsibility for the administration of such or in organisations which further militaristic doctrines, (2) authorised controls and for any breakdowns in those controls will rest with them- or participated affirmatively in any Nast crimes, racial persecutions or selves and German authorities. discriminations, (3) been arowed believers in Nazion or racial and militaristic creeds, or (4) voluntarily given substantial noral or 6. Denasification: a. A Proclamation dissolving the Nast Party, its formations, material support or political assistance of any Icland to the Nasi Party affiliated associations and supervised organisations, and all Nasi public or Nasi officials and leaders. No such persons shall be retained in institutions which were set up as instruments of Party domination, and any of the categories of employment listed above because of adminis- trative necessity, convenience or expediency. 4 - - 5 - TOP SECRET TOP SECRET Regraded Unclassified PRECISION TRADE MARE MICROSTAT MICROFILM ROLL NO. TOP SECRE TOP SECRET 4. Property, real and personal, owned or controlled by as organisations, including the General staff, the German Officers Corpo, Mari party, its formations, affiliated associations and supervised the Reserve Corps and military academiss, together with all associations organizations, and by suspected war oriminals and leaders of the Mast which might serve to keep alive the military tradition is Germany. hierarchy, and found within your sone will be taken under pour control de You will seise or destroy all arms, ammunition and pending a decision by the Centrol Council or higher authority as to its implements of var and stop the production thereof. eventual disposition. d. You will take proper stops to destroy the German var poten- " All archives, monuments and of Masi inception, tial, as set forth in Part II hereof. or which are deveted to the perpetuation of German militarism, will be 8. Buspected War Criminals and Security Arreste, taken under your control and their properties held pending decision as to a. You will search out, arrest, and hold, pending receipt by their disposition by the Control Council. you of further instructions as to their disposition, Adolf Mitler, his to You will make special efforts to preserve from destruction chief Nasi associates, other was criminals and all persons who have and take under your control records, plans, books, documents, papers, participated in planning or earrying out Basi enterprises involving or files, and scientific, industrial and other information and data belonging resulting in atrocities or war crimes. to or controlled by the following: be All persons who, if permitted to remain as large would (1) The central German Government and its subdivisions, endanger the accomplishment of your objectives will also be arrested and Germirmilitary organizations, organizations engaged in military held in custody. The following is & partial list of the categories of research, and such other governmental agencies as may be persons to be arrested in order to carry out this policys deemed advisable; (1) Officials of the Mast Party and its formations, (2) The Mari Party, its formations, affiliated associations affiliated associations, and supervised organisations, down and supervised organizations; to and including Local Group Leaders (Ortagruppenleiter) (8) All police organisations, including security and and officials of equivalent rank; political police; (2) All members of the political police, including the (4) Important economic organizations and industrial Gestape and Sicherheitsdienst der S.S.; establishments including those controlled by the Masi Party (8) The officers and non-commissioned officers of the or its personnel; Maffen S.S. and all members of the other branches of the S.B.1 (6) Institutes and special bureaus devoting themselves to (4) All General Staff Corps officers; racial, political, militaristic or similar research or propagands. (6) Officials of the police holding & rank, or equivalent T. Demilitarization: positions of authority, above that of Lieutenant; as In your sone you will assure that the German armed forces, (6) Officers of the SA holding commissioned rank; including para-military organizations are promptly demobilized and diabanded (7) The leading officials of all ministries and other in accordance with policies and procedures set forth in the Instrument of high political efficials down to and including urban and rural Unconditional Surrender or other directives which may be issued to you. be The Control Council will proolaim and in your some you will effectuate the total dissolution of all military and para-military 6 Unclassified RECISION TRADE MAIN MICROSTAT MICROFILM ROLL NO. TOP SECRET TOP SECRET burgermeister and officials of equivalent rank, and those de 30 German parades, military or political, civiliem persons who have held similar positions, either civil or sports, shall be permitted by you. military, in the administration of countries occupied by de Subject to the provisions of the three preceding sub- Germany: paragraphs and of paragraph 10 to the extent that military interests (8) Masis and Nasi sympathisers holding important and are not prejudiced, freedom of speech and press, and of religious key positions in (a) National and Gau civic and sconomic worship, will be permitted. Consistent with military necessity, all organizations; (b) corporations and other organizations in religious institutions will be respected. which the goverment has a. major financial interest; (o) 10. Public Relations and Centrol of Public Information: industry, commerce, agriculture, and finance; (d) education; As a. member of the Control Council, you will endeavor to obtain (a) the judiciary: and (f) the press publishing houses and agreement on a quadripartite basis for uniform or coordinated policies with other agencies disseminating seve and propaganda. It say respect to (a) centrol of public information media in Germany, (b) accrediting generally be assumed in the absence of evidence to the of foreign correspondents, (e) press censorship, and (d) issuance of afficial contrary that any persons holding such positions are Nasis news communiques dealing with Control Council matters of Germany as a. whole. or Nasi sympathizers; U. S. policies in these matters will be sect to you separately and you will (9) All judges, prosecutors and officials of the People's be guided by these in your negotiations on the Control Council. Court (Volkagerichtahef), Special Courts (Sondergerichte) and 11. German Courter other extraordinary courts created by the Nasi regise; .. All extraordinary courts, including the Velkagerichtshof (10) Any national of any of the United Nations or (People's Court) and the Sondergerichte (Special Courts), and all ocurts associated states who La believed to have committed offenses and tribunals of the Nasi Party and of its formations, affiliated as- against his national law in support of the German war effort; sociations and supervised organizations will be abolished immediately. (11) Any other person!whose name or designation appears - be All ordinary oriminal, civil and administrative courts, lists to be submitted to you or whose DATE may be notified to except those previously re-established by order of the military govern- you separately. ment, will be closed. After the elimination of all Nasi elements you will If in the light of conditions which you encounter in Germany you believe permit those which are to exercise jurisdiction within the boundaries of that certain persons within these categories should not be subjected your tone to resume operations under such regulation, supervision and centrol immediately to this treatment, you should report your reasons and as you say consider appropriate. Courts which are to exercise juriadiction recomendations to the Joint Chiefe of Staff. over territory extending beyond the beundaries of your some will be responed 9. Political Activities: only with the express authorisation of the Control Council and under its No Initially you will not permit political activities of any regulation, supervision and centrol. The power to review and vote decisions kind, and you will assure that your military goverment does net become of German courts shall be included within the power of supervisies and centrol. committed to any political group. 12. Police: be You will prehibit the prepagation in any form of Masi With the exception of the Reichskriminalpolizei (Oriminal and militaristic dectrines. Police) all elements of the Beicharheitapolizei (Security Police); ...., Geheimestantspolissi (Gestapo) and the Sicherheitadienst der S.S. 9 Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ MICROFILM BOLL NO. TOP SECRETT will be abolished. Criminal and ordinary police will be purged of Mast personnel and utilized under the control and supervision of the military religious instruction in German schools, except insefar M may be necessary government. to insure that religious instruction and administration of such schools 13. Political Prisoners: conform to such Allied regulations as are or may be established pertaining Subject to military security and the interests of the individuals to purging of personnel and curricula. concerned, you will release all persons found within your some who have 15. Arts and Archives: been detained or placed in custody es grounds of race, nationality, creed Subject to the provisions of paragraph 5 above, you will make or political opinions and treat them as displaced persons. You should nake all reasonable efforts to preserve historical archives, museums, provision for the review of convictions of alleged criminal offenses about libraries and works of art. which there say be substantial suspicion of racial, religious or political persecution, and in which sentences of imprisement have not been fully served by persons imprisoned within your some. 14. Education: a. All educational institutions within your none except those previously re-established by Allied authority will be closed. The closure of Hasi educational institutions such as Adolf Hitler Schulen, Napelas and Ordensburgen, and of Masi organizations within other educational institutions will be permanent. b. A coordinated system of control over German education and an affirmative program of recrientation will be established designed completely to eliminate Nasi and militariatic doctrines and to encourage the development of democratic ideas. De You will permit the reopening of elementary schools at the earliest possible date after Nasi personnel has been eliminated and text- books and curricula have been provided which are free of Nasi and militaristic doctrine. The Control Council may devise programs looking toward the respening of secondary schools, universities and other institutions of higher learning. Pending the formulation of such policies by the Centrol Council, you may formulate an interim program within your sone and in any case may permit the reopening of such institutions and departments which offer training which you consider immediately essential or useful in the administration of military government and the purposes of the occupation. d. It is not intended that the military government will intervane in questions concerning denominational control of German schools, or in 11 10 Regraded Unclassified PRECISION TRADE MARK MICROSTATI 110. S.PAY. ON, MICROFILM BOLL NO. 3/6/44 0 112 PART II 113 FINANCIAL DIRECTIVE (REVISED IN LIGHT OF PRESIDENTIAL POLICY STATEMENT) - 2 - 1. You will sake full application in the financial field of the Se To permit or require the Heichsbank, the Rentenbank or any other principles stated elsenture in this Directive. You will endeavor with- bank or agency to issue bank notes and currency which will be in the franework of paragraphs 3e and 5 of Part I, to have the Control legal tender; without such authorization no German governmental Council adopt uniform financial policies, to carry out the purposes of or private bank or agency will be permitted to issue bank notes the occupation. or currency. 2. You will regulate and control currency circulation within your b. To require the Geruan authorities to make available Reichmark sone in accordance with the following provisions, and subject to any currency or credits free of cost and in anounts sufficient agreed policies of the Control Council: to meet all the expenses of the forces of occupation, including a. United States forces and other Allied forces within your the cost of Allied vilitary Government and including to the ex- sone will use Allied Military marks and Reichamark currency tent that compensation is made therefor, the cost of such or coins in their possession. Allied Wilitary marks and private property as may be requisitioned, seized, or otherwise Reichmark currency and coin now in circulation in Germany acquired, by Allied authorities for reparations or restitution will be legal tender without distinction and will be inter- purposes. changeable at the rate of 1 Allied Military mark for %eicha- C. To prohibit, or to prescribe regulations regarding, transfer mark. Reichskredi ticassenscheine and other German military or other dealings in private or public securities or real estate currency will not be legal tender in Germany. or other property. be You will receive separate instructions relative to the currency de To close banks, but only for a period long enough for you to in- which you will use in the event that for any reason adequate troduce satisfactory control, to remove Nast and other undesirable supplies of Allied Military marks and Beichamarics are not personnel, and to issue instructions for the determination of available, or if the use of such currency is found undestrable. accounts to be blocked under sub-paragraph ód below. C. You will not announce or establish in your sone, until receipt 0, To close stock exchanges, insurance companies, and similar of further instructions, any general rate of exchange between financial institutions for such periods as you dem appropriate. the Reichamark on the one hand and the U.S. dollar and other car- f. To establish a general or limited noratorium or noratoria only rencies on the other. However, a rate of exchange to be used to the extent clearly necessary to carry out the objectives of exclusively for pay of troops and military accounting purposes Allied idlitary Government. in your sone will be comminicated separately to you. las Resumption of partial or complete service on the internal public 3. Subject to any agreed policies of the Control Council, you are debt at the earliest feasible date is deemed desirable. You will endeavor authorised to take the following steps and to pus into effect each further to secure agreement in the Control Council as to the time and manner of financial neasures as you may deem necessary to accomplish the purposes such resumption. of your occupation: 5. You shall take no steps designed to maintain, strengthen or operate the German financial structure accept insofar as may be necessary for the Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. 115 114 of Allied Military Government. - 3 - de You will impound or block all gold, silver, currencies, purposes specified in this Directive. securities, accounts in financial institutions, credits, 6. Subject to any agreed policies of the Control Council, valuable papers, and all other seseta falling within the a. You will prohibits following categories. (1) the payment of all military pensions, or other (1) Property owned or controlled directly or indirectly, in emoluments or benefits, except compensation for whole or in part, by any of the following: physical disability limiting the recipient's ability (a) The German Redeh, or any of the Lander, Cause or to work, at rates which are no higher than the lowest provinces, any Kreis, Municipality or other sinilar of those for comparable physical disability arising local subdivision; or any agency or instrumentality from non-military causes. of any of then including all utilities, undertaldngs, (2) the payment of all public or private pensions or other public corporations or memopolies under the control emoluments or benefits granted or conferred: of any of the aboves (1) by reason of membership in or services to the (b) Governments, nationals or residents of other nations, former Nasi party, its formations, affiliated as- including those of territories occupied by them, at sociations or supervised organizations, 1 September 1939, (11) to any person who has been resoved from an office (e) The Nazi Party, its formations, affiliated associa- or position in accordance with paragraph o of part tions and supervised organisations, its officials, 1 or paragraph 10 of this part, and leading members and supporters: (111) to any person arrested and detained in accordance (d) All organisations, elubs or other associations with paragraph 5 of part 1 during the term of his prohibited or dissolved by military governments arrest, or permanently, in case of ids subsequent (e) Absentee owners of non-German nationality in- conviction. cluding United Nations and neutral governments, b. You will take each action 48 may be necessary to insure that and Germane outside of Germany: all laws and practices relating to taxation or other fields (r) Any institution dedicated to public worship, charity, of finance, which diseriminate for or against any persons be- education or the arts and sciences which has been used cause of race, nationality, creed or political opinion, will by the Nazi Party to further its interests or to be amended, suspended, or abropated to the extent necessary to cleak its activities. eliminate such discrimination. (g) Persons placed under detention or other types of C. The German authorities will be held responsible for taking custody by you, and all other persons specified such measures in the field of taxation and other fields of by military government by inclusion in lists or public finance including such restoration of the tax system otherwise; and and maintenance of tax revenues at the highest practicable level as will further the accomplishment of the objectives Regraded Unclassified RECISION TRADE MARE MICROSTAT/ MICROFILM BOLL NO. 116 117 - 5 - - 6 - (2) Property which has been the subject of transfer under duress receipt of further instructions, authorise any outlay of German or wrongful acts of confissation, disposition or spoliation, foreign exchange assets upon imports, including those from neutral whether pursuant to legislation or by procedure purporting countries, and will not authorise payment in Germany's foreign to follow forms of law or otherwise; exchange for any other purposes, except where clearly and urgently (3) Works of art or cultural material of value or importance, needed to further the agreed objectives of the Allied Military regardless of the ovnership thereof. Covernment. You will establish affective controls with respect You will take such action as will insure that any impounded or blocked to all foreign exchange transactions, to effectuate the policies essets will be dealt with only as permited under licenses or other of this Directive, including: instructions which you may issue, In the case particularly of property (1) Transactions as to property between persons inside Germany blocked under 1 a above, you will proceed to adopt licensing neasures and persons outside Germany: which while maintaining such property under surveillance would permits (2) Transactions involving obligations owed by or to become its use in consonance with this Directive. due from any person in Germany to any person outside 7. All foreign exchange transactions, including those arising out of Gerdany) and exports and imports, shall be controlled with the sin of preventing Germany (8) Transactions involving the importation into or exports= from developing a war potential and of schieving the other objectives not tion from Jermary of any foreign exchange asset or other forth in this Directive. form of property. (a) To effectuate these purposes, you will, is addition to other 8. No extension of credit to Dermany or Cermans by any foreign person neasures stated in this Directive, reduce to-the possession or Government shall be permitted except that the Control Council any in and control of a. special sgency established by you, within special mergencies grant permission for such extensions of credit. your command, all German (publie and private) foreign exchange 9. It is not anticipated that you will make credits available to assets of every Idni and description located within or outside the Relehabank or any other bank, or to any public or private institution. Cermany for disposition 14 reparation or restitution or for other If, in your opinion, such action becomes essential, you may take such purposes as determined by appropriate authority. As U.S. neuber margency actions as you may deen propor, but in any event, you will report on the Control Council you will endeavor to have similar agencies the facts to the Control Council. for the 8820 purpose ostablished in the other comes of occupation 10. In addition to the provisions of paragraph 6 o of Part I of the and to have the merged as soco as practicable in one agency for baste directive, you will eliminate other undestrable personnel and in- the entire occupied territory: fluences from the Heich Idelstry of Finance and from all public and private (b) Subject to any agreed policies of the Control Council, you will financial institutions, agencies and organizations. prohibit, except as you my permit by regulation or license, all 11. You will maintair such accounts and records LS may be necessary to dealings in gold, silver, foreign exchange, and all foreign e- reflect the financial operations of the military government in your sone change transactions of any kind. You will not, however, until Regraded Unclassified 115 - 7 - and you will provide the Control Council with such information as it say require, including information in connection with the use of currency by your forces, any governmental settlements, occupation costs, and other expenditures arising out of operations or activities in- volving participation of your forces. $ 120 TREASURY DEPARTMENT 119 SECRET INTER OFFICE COMMUNICATION Memorendum of a meeting in the office of Lord Keynes, DATE April British Treasury, Whitenell, March 7, 1945. TO Secretary Morgenthau (for Information) Present:- U. K. Representatives Mr. Coe FC Loro Meynerd Keynes, Treasury Department FROM Sir wilfred Eady, Treasury Department Subject: Rosensan-Xeynes Converentions ir. F. E. Harmer, Tressury Department Lord Keynes stated during there conversations that: U. S. Representatives 1. The British do not intend to use 3 (c) of the Judge Semuel I. Rosenman, White House Lend-Lense Act to obtain post-war credits. Keynen has sug- Mr. D. V. Phelps, State Department gested that further conversations be held in Washington this in. D. b. Taylor, Treasury Department summer or after hostilities in Europe are over to discuss financial arrangements which shril supersede lend lease. In this connection Keynes said that the post-war situation would The meeting with Lord Keynes had been arrenged et call for B. "brein wave" similar to the one the President lind the suggestion of Nr. Harmer in order that the Judge had in 1940 when lend lense was evolved. might have en opportunity of exchanging views with Lord Keynes of the British Treesury. Judge Rosenmen 2. Keynes asserted that Britain would need financial explained briefly the purposes of his mission stating assistance during the post-ver period: that Britain's lorgen that we had been recuested by the President to proceed 88 B. result of the VII were of the same magnitude 80 the to Europe and examine the situation in respect to re- reparations that Russia had requested should be placed upon quirements for civilian supplies in the liberated areas. Germany at the Yalta Conference. In view of Britain's heavy The President had also requested that the Judge should burden of international indebtedness, Britnin von not in a discuss with the representatives of the liberated areas position to consider long-torm credite to any other country. the problems relating to their needs for financial assistance in paying for civilian supplies and in re- nacilitation and reconstruction in the post-war years. The Judge stated that it would be helpful in this regard if TO could notain from the Britien Treasury any in- formation they might care to make available In respect to Treat Britain's financial programming for Phase 3 -- that 18, whatever financial assistance Greet Britain might intend to make available to the liberated ereas together with a statement of the financial assistance that Great Britsin nerself might require in the period following termination of hostilities in the Pecific. It wr.s the Judge's hope that WO might be able to discuss these matters in B. strictly general and informal way -- end off the record. Lord Keyne said that he cio not think the present Regraded Inclassified TRADE MARE MICROSTAT/MLMO MICROFILM ROLL NO. 11 122 - 8 - - a - was timely for A discussion of the [inencial Reports of these problems. He stated that in the Phase 2 zone -- stockpiles of Lend-lease origin in the UK, goods negotiations that nea bien conducted in Weshington in in the pipeline, goods manuractured but not yet shipped, November of 1944 that the President ned informed 01m roods in process or menufacture, goods for which contracts that ne did not think questions or post-war financial ned been negotisted in the U.S. out which hed not yet been commitments should De discussed during the midst or H. menufactured. Lord Keynes relt that the question of food military campaign. Lord Keynes stated that the Britien and or civilien supplies of lend-lesse origin were particu- were very much interested at the present time in the larly significant and would have to be dealt with on some question of the renewal of the Land-Lasse Act by Congrase basis that would be mutually satisfactory to the American and also in the question of the Congressional appropria- and critish authorities. Lomi Keynes stated that at the tion that youlo be voted for land-lasse. Lord Keynes present the lend-lesse aid to Great Britain was running stated that the British Treasury did not nave an somewhere in the neighbornood of 45 billion e year. He (inencial policy beyond Phase E. The retter nad not estimated that the total volue or commodities in the pipe- been cenversed within the British pressury although line wight approximate ade oillion at any one time and that individual officials had been giving the ratter serious 10 the stocks of _cods In the UK of lend-lesse origin were consideration. tie said that to would be happy to offer noded it would messurably increase the values involved. some of his observations in respect to the financial problems of the post-war period providing Judge Rosensian Basides the problems of the twillght zone Lord Keynes understood clarrly that these were meraly in the nature noted that mere were many imponderables in the present of personal comments end not to be given eny publicity situation which would have to be taken into account. Amongst or circulation. sir Milfred any confirmed that the these be noted the following: Treasury did not have en agreed policy and anded that he thought it night be helpful If Lord Kaynas were to 1. The rate of conversion of British industry from offer some of his personal observations In respect to wer production to consumption and export requirements. these matters. Lord Keynes stressed that the British d10 not think that Iand-lessa would prove to be 5 sat- 2. The necessity of transferring creat numbers of isfactory arrangement duried Phase 2. in this connection men end soulpment to the Pacific theator of NOT upon the he montioned that the British atd not intend to pursus conclusion of hostilities In Europe. 9 policy similar to that of vrence of weine Section So of the Lend-Lesse Act 35 a vehicle for the obtaining of 3. The rate at which the repatriation end demobili- post-war credits. Lord Keynes stated that it 119.97 his setion oz troops took place with consequent sugmentation view that 1-00-19888 and reciprocol sid should come to of the lobor force. on end with the conclusion of hostilities against Japan. The amount of the sterling balances at the end of Loro Keynes observed, however, that It 198 ODVIOUE the war. that Land-lease could not be terminated DO day hostili- ties ceased. There would be en interts period which he 6. The nature or the negotiations terminating lend- referred to es a twilight zone during which lend-lease leuse and reciprocal atc arrengements. and reciprocel aid would have to be continued and during which a great many problems would crise, some of which Lord Keynes stated It. P.D. nis view that there would be would be of a very complex end difficult nature. Sir no great volume of laoor available for use in Britain upon Wilfred Eady distinguished the following categories of the termination or nostilities in Europe. Sir Wilfred Redy goods which would have to be dealt with in this twillent stressed that the Prime Minister had indicated what was to Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. 123 124 0 B - for the export trade, thus paving the way for Britein's happen when be informed the President that the critien return to e position of economic and supply importence were going " CO go all 011" in the Prottic ser. it wes in the affairs of the world. Questioned by Judge Rosenmen unlikely that the predent restrictions on civilian DE to met the nature of the "brain wave" should be, Lord consumption, rationing end price control woold be Keynes indicated that he aid not think it desirable to sppreciably nodtried in the period Imediately subsequent say anything additional sbout this subject et the present to the conclusion of the European mr. time. He felt that the problem wes primarily one for the Americans to consider and felt that the suggestions should Lora Kaynee stated that no considered the problems COMP from them. The proposed arrangement in order to be concerning the termination of and recibrocal acceptable to the American people would have to be one nio arrangemente End the question of what type of finen- that WED obviously American by ort in and temperament. cial essistance was to supersede lend-lenee 50 important that ne upged that further conversetions and consultations Lord Keynes wes asked if Britein would attemnt to about these watters shoulo be held Weshington in the make use of the borrowing facilities creeted by the early summer of this year OF shortly after cre one or International FLUID or the International Ben, and If hostilities.1r Turope. consineration hed benn -dven to the question of corrow- inc on the comparcial markets or the world. Lore Keynes Lord selo that upon the termination or stated that In respect to these international financial hostilities with Jessn there would De D need for some or.anizations Grest Britein would DO P. contributor rather new arrengement for American Cionnotal assistance. 9a than E Dorrower. de stated that the Fund WBB being set reiterried that the sritten were unrilline that Lend- un with the primery objective of stabilizing international Janes enouto 00 continued. ne IL DRS absolutely exchange rates and that the countries or the world other assential, nowever, tat there enoute De no reversion to than the U.S. B. no U.K would be the grestest claimants the ordinary type of comercial loen. La enid that no on the Fund. The funce placed at the Bank's disposal neo informed the President when DP ned spoken to nin in would oe primarily for the development of the resources November 1841 that THE and needed WRB for the Prontoent of the beckward pross of the morld. Clearly Britain did to have E "main "EY" out or which would COUR Borw nam not rall within this category. Loro Keynes felt that financial arrendement which would be monoraful in clacine thourn some of the other countries or the world might world economy in e position to runetion in e number ent- wish to borrow on the capitel markets of the world he did infactory to both the writish POG American Governments. not 580 non this would offer eny effective solutionto Be stated that the President had such 6 brain WEVE in the capital neede of Great Britein in the post-war period. 1940 when na Davised leno-lease ns the Instrument of making runos and 20028 availacia to va countries actively Loro Keynes WE asked If it WAS the British intention oncered in fighting the wer. Lend-lenen had successfully to resume her position BE an International creditor lifted the question or (inancial end economic assistance through Tenting loans to other nations in the post-wer out of the levels of commercialism ano BRO neveloped an perfod. Lord Keynes remarked that it would be en essen- affective ischine thet was e righting weepon in Itself. tim] adjunct in the finance of British exports to other The present onliso for 8 new "orein wave" which would be nations that Britein should cake snort term commercial neither lend-leass nor commercial credits. incre could credit errangesents which would be in keeping with the be no question out that Britain would need financial type or KOOOB involved. Thue cortein types of exports assistance in the post-wer partod and financial assistance of varying life expectancy would be financed under flex- of e type that would allow nor to buy needed rer materials ible but ossically short term credit arrengements. from the markets of the world end reconvert her industry However, for the time-being Britain would not be in a Regraded Unclassified 126 125 - 7 - - 5 - that critain was the only United Nation which would position to make loans an such to other nations. eserge from the war with E. heavy burden of international Britsin would be B. borrower herself end It would tend Indentedness. The other United Nations might have large to impose too grant 8 strain upon British fecilities internal debts out they had not contracted obligations to expect her to undertake financing or S lone-term to the world at large. Britain was in the position of a character in respect to other cress of the world. desperate creditor who nad to find a remedy by one means or another and, sho, in the event that satiefsctory Lord Keynoe took this opportunity to concent on arrengements could not be affected, would obviously the Bretton Woods finencial propossis. He sald that settle upon other alternatives no metter how bed they British Treasury officials are following closely the might be. course of the Bretton Woods legislation before Contress and were hopeful about the situation. He said tnat un- Lord Keynes stated that Great Britain's inter- fortunately in the U.K. there was n. great deal or vocal national indebtadness through sterling balances as a opposition to the Bretton Woods Nonetary A reements. result of the war was currently about $12 billion. This opposition wes induced in part by 9 feeling This indebtadness would increase with nach month the that neither the Fund nor the senk offered an effective was Insted and ITS ultimate level st this time could solution to England's post-war economic end financial not De He ENIO that the Britten are not Look problems. He 8510 that England neo thrown everything forward to any considerable alleviation in the rate of she had into the war witnout reservation. En lend WEB increase of their wyternel nebt BB E result of the now destitute end without resources. Many Riglismen termination of hostilities in Europe for the British were unable to understand what measures could DO taken were instetent that they were voing to use their men and to correct this situation And, hence, tanded to fell equipment for carrying the war to Japan. Puthormore, back upon e theory or importel trade and preference and even when too hostilities in the Pecific cessed this bilateral arrangements with other netions. such views did not necessarily aeen that an automatic stop would had found expression in debetes in the HOURS or Parlin- occur in the growth of Britain's international indebted- ment. In order to ellay a greet deal of this criticism nase. He stated thet, including Canada but excluding and feeling, Sir John Anderson DED held the third or a the 11,5., wrest Britain wes spending for troop pay and series of meetings "ith importent membere of parliasent cervices to toeir armed forces in verious parte of the yesterday arternoon. At these meetings Sir John Anderson world over A billion a year. This expenditure would had explained cerefully and clearly the purposes and continue until the members of the aruad forces sere necessity for noth the Fund and the Bank and the part brought none end demobilized. He NOB not sanguine over that Great Britsin would play in these organizations. the repidity over which either the mon could be trans- The opposition of these Parliamentary representatives ported or demobilization take place. He 8810 that he to Brotton Wonde ned lessened popreciably LE B result thount probably Canade could be excluded from this of these talks with the Chancellor or the Exchequer picture because hed offered mutual assistance but there nad been no lessening in the concern that to the INK. In that event, the annual rate of increase these Parliamentary representatives expressed asto for 197 of troops and other erry services would be wast ass going to happen to Britain in the post-wer in OXCESS of is billion. Growing out of these remarks period. The present sentiment In Engiand in fevor of Lord Keynen nate that DE ned suggested during the tariffs, imperial preference end bilateral arrangements November discussions in Washington that upon the coming did not stem from 8 belief in these thinks 88 euch but of pence propeoly there anould De 8 receivessing of the rather from the inebility of people to think their way question of the burden of war costs end 8 registribution clearly through the innumerable problems that would and reallocation or these costs. Asked If he would care confront England in the post-war years. He asserted Regraded Unclassified RECISION TRADE MARK MICROSTAT/ MICROFILM 127 - - 9 - 128 to comment further upon this subject Lord Keynes etated under such circumstances. Nor could His Wajenty's that the only additional remark that be sould cara to opposition urge an extensive relexation of the controls make in this regard we that senio Ailles one depend- enclos had tended to take the view that this 955 "num" without assuming 0 responsibility of interfering with Britain's was effort in the Fer liast. Lord Keynes also the 18, Iritain's war. it would be necessary so re- setd that of course 11: would be necessary following VR cenvass this cituntion and non was could De done about day to turn over puch production fecilities 86 might it. At tris point Sir Wilfred kedy said wet Problemt becore available, through 8. outting back in war production, Roosevelt red also referred to this potentiality in for the export trade. Britein lived by exports and It opseking of n. property of "aguel coorifice for 011". must return to the commercial markets of the world ES Str Willred Endy reserked that, of course, It sould not rapidly E.S. possible. Be said that for 88 long 8 period be possible to oring nout agual secrifica for ell out es could be foreseen at this time the problem in relation that certeinly greater Justice could De 00% to DOME. to exports would be one of an inebility to produce 8% much 15 the nations of the world could consume. The At this point in the discussion Lord Raynes une years Immediately following upon victory in Purope would neired If 19 would care to assimate the overall indected- be ones of general scarcity of 20005 througnout the world. noss that Britain ned incurred 88 E result DE use. Lord Ba stated that the goal that the British were striving Keynes repliso that the only this that no covie say WRB for in the export werket atta to increase exports five times that Britein's loasse 8.5 Fl result or the are were or the over their present physical volume. 6879 ITS nitude es the reporations cost Rusets per re- quested should ge please upon largeny et the Yelta Con- Lord Keynes naked Jurie Rosermen If be wen going to ference. The Russions ned superated 11 program of pa- Interest bimself in the question of UNRRA. Judge Rosensan perations that In Ite 105 stay wrine. replied that no wes naturally interested in the question of UNERA to the extent that it would effect supply opers- Lord Keynes stated that one of the most important tions in the liberated areas. Lord Keynes stated ex- factors In discussion Britain's post-war sconomic end No- postionlly nis view tant UTHIA had failed in its mission. ancial position no the national nolstical For over P year the nations of the world navo been look- PA seid that for E Long time the Doverment ned been ing to USENA to help then in the relief of the destitute telling the people that nn election would 06 0918 within end the provision of medical supplies for the weak and a fem weeks or months of the tandmation or nostilitive dissoled. To date UNIVA had cone nothing except encage in Europs. Lord Keynes uns their naq to on extramaly in e nost or excusen that coulo be adjudired ne nothing skeptical or rither DA nn the lizalineed of en other than "alibi's" for its own inefficiencies. He election DAIN: held within the Binton period. se 8510 felt thet the Ineffectiveness of UNRRA derived largely that, In view of the the the Pecific ver sould from two things. The first of these was the feilure of pince upon the production restission of tist Britsin the U.S. end the U.K. (ne mentioned in this connection for B continued flow of PBP interials end In view of Deen Acheson end Richard Law by name) the largest con- continuing sanpower shortages se a result or the trens- tributors to UNIVER to insist that their point or view ference of troops to the Proffic theater, It. would be should on adopted st the Atlentic City Convention at necessary to continue in force, and without secential which the charter and the terms or reference of UNRRA modification, the present controls restricting civilien were agreed to. He said that 88 R result of this consumption to the bere essentiale in food, clothing, failure, the claimant natione who really were contributing and the monities of life. Such restrictions would nothing to UNRKA ned been able to put over their own certainly be resented by the British people end ne point of view. He said that It wes extremely ridiculous doubted tr the Government would dare to to to the country that such ex-enemy countries no Italy, Bulgaria, Ramania Regraded Unclassified 129 - 11 - 130 - 10 - of soversignty. Judge Rosensan also called attention to end Hungary should have been excluded from the fact that the Allied Military Authorities had refused to allow to commence operations in the liberated operations. He said that he could unterstand the reason for the exclusion of Germany from UNRRA sreas during the allitary period -- the military period operations inseruch as It might be necessary to trest 086 generally understood to be six months from the date or active military operations in any stes. Germany 88 3 separate case. The second reason for the ineffectiveness of UNIFA WRE the complete incompetence of the present administration and Its inability to come Lord Yeynes stated that, in any event, the British to grips with practical problems. He spoice or UKHRA 010 not feel that they could contribute more to UNRKA than and elrendy been earmarked. He pointed out that as "the outstanding international failure of the wer large writish territories in the Far Wast, such 88 period". Because of UNREA'S attitudes and policies the nations of the world had come to think of UNREA D5 curne, Unleys, Hone Kong and Borneo which ned been under n. policing organization -- one which would limit their Tapenese occupation for three years or more would require procurement of materials through screening rather then axtinsive supreency 800 relief snipments of foods, medi- en reanization which would 810 them in relief and re- cines, clothing and other vitelly assential meterials. nacilitetion. Both Lord Koynne end Sir silired Endy Lord Keynes astimated that the total of these supplies thought that there was still on o cortunity of seking would DR In the neighbornood of e billion dollare. Sir Wilfred knoy sureed with this estimate. UNREA an effective international organization. USREA was the natural body which should nave control of the equitable distribution of civilien supplies to the claimant nations in the post-war Dariod and of Resing to it that some nations did not ootain civilian supplies Wm. H. Taylor at the expense of others. However, such of program could be successfully instituted only under e new and more effective administration. Judge Rosenman ald that though UNIFA might De Justly criticized for some shortcomines nonetheless he felt that 5039 of the remarks that ned been sade should be more properly directed st the evreements renoned by the United Nations in the meetings of the General Assembly of UNKRA at Atlentic City and Wontreel. He called attention to the fact that UNHRA wee expressly pronibited from providing relief end rehabilitation supplies to ex- enamy countries. This provision nad been montried nt the Montresl Conference to the extent of allowing MIRA TO spend 500 million for operations in Italy. Judice Hosenson. further pointed out Tnst UNIBA was also prohinited from carrying on activities in any national ET08 without the express consent of the lovernment of that area and that most govornments ned come to look upon the request of UNIONA to be allowed to supervise the distribution of goods or origin as en infringement of the principle RECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. 132 DEPARTMENT 131 INCOMING DIVISION OF OF TREASURY DEPARTMENT TELEGRAM CENTRAL SERVICES STATE TELEGRAPH SECTION INTER OFFICE COMMUNICATION GEM-63 London DATE 4/10/45- This telegram must be paraphrased before being Dated March 22, 1945 TO Secretary Morgentinu communicated to anyone Mr. Coe FC other than a Governmental Rec'd 11:59 p.m. FROM agency. (SECRET 0) SUBJECT: British Post Yor Pareign Lending Policy Secretary of State, 1, The U. X. Treasury has informed the U. S. Treasury Representative in London, that Britain's financial position Washington. will not permit her to extend credite to European countries after the ver. The U. X. Treasury stated that E = million 2978, March 22, 9 p.m. pound credit voulo probably be given to the Czachs Insuruch as this VER a pre-var commitment, but a credit request from FOR SECRETARY OF TREASURY FROM MANN the Turkish Government has been refused. No other European countries have appreached the British for credits, according Reference to your 1936, March 13. to the U. E. Treasury. It vas conceded that exceptions to this credit policy night be made for political reasons, B.D. One. Sir David Waley states that in general in the case of the offer of E 30 million pound short term credit to the Russians. the United Kingdom because of United Kingdom external 2. In view of the insistence of the British financial community that Britain bolster her post-ver export position financial position will not be in a position to extend by a program of Government sponsored long-term credite, this statement of credit policy by the U. K. Treasury cannot be credits to European countries. The United Kingdom accepted as the unaltered British post-war position. It clearly appears that the British are deliberately holding Treasury appreciates fully the need of the liberated back on revealing their post-war financial plens with regard to Europe until U. K. discussions on the financial arrange- countries of Europe for credits to obtain the imports ments which will supersede lend lease, are completed. The British are obviously voiting for the "brain weve" that necessary for restocking and reconstruction but feels Lord Keynes mentioned to Judge Rosensan, before disclosing their lending plana. It is obvious that they do not with to that these countries "should look to credit_ or nations injure their clain to U. 3. financial aid on the basis of their "debtor" position. like the United States and Canada for necessary loans and not to debtor nations like the United Kingdom". Two. According to Waley it will be necssary in the financing of British exports to provide arrange- ments for short term commercial credits but the Regraded Unclassified RECISION TRADE MARE MICROSTAT MICROFILM ROLL NO. -2-#2978, March 22, 9 p.m., from London -3-#2978, March 22, 9 p.m., from London 134 123 emphasis will be on selling British exports for the other European countries have approached the cash whenever possible. He did not elaborate on British for credits. what such arrangements would be put emphasized that Six. with regard to France you are referred to while flexible enough to cover all types of goods the Anglo-French financial agreement which Waley the credits would be basically short term in nature. states was made available to you in Washington on Three. Waley states that a credit of about March 21, 1945. 5,000,000 pounds will probably be given to Czecho- WINANT slovakia because of a pre-war commitment on the part of the United Kingdom when Czechoslovakia made its WMB gold available to the United Kingdom. Four. Reference to Embassy's 1749, February 20 to the Department. British have still not received a reply to British proposal of short term credits in the neighborhood of 30,000 pounds. Waley mentioned that the proposal was made largely as a political gesture and suggested that it may prove necessary for political reasons to make exceptions in the case of other nations to the United Kingdom Treasury policy of not extending credits. Five. According to Waley the Turkish Government approached the British with a view to obtaining credits and was immediately advised by the British that they were not in a position to extend credits. None of the other Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. 135 TREASURY DEPARTMENT 136 April 9, 1945 INTER OFFICE COMMUNICATION DATE April 0, 1,45 Dear Lieut. Futzell: TO Secretary Morgenthau (For Information/ I an writing to acknowledge FROM live. Doe FU. receipt of your letter of April 6 with which was enclosed a copy of radiotelephone message #291 from Vendic-Trance line Finally resigned from the French serne. Secretary Morgenthau is cablet. Moven Is taking exer the Mistery of Retional still and from Washington, but as Economy to addition to the Flannon Vinistry. The uny after soon as he returns to his desk 1 like realgnation Lave 9 statement to the These shall bring your letter and its en- In which he attached the Clargetal polloy of and onlo closure to his attention. that 11 ESE France Into RS inflation which mould wipe out the Franch Tidul- class. Yours sincerely, It is expected that Invoice -111 be in this country for the Sen Francisco conference. (Signed) R.S. Klota a. 5. Klots, rivate Secretary. Lieut. E. J. Putzell, Jr., Acting Executive Officer, Office of Strategic Services, Mashington, D.C. RESTRICTED 137 OFFICE OF STRATEGIC SERVICES WASHINGTON, D.C. 6 April 1945 Honorable Henry Morgenthau, Jr. The Secretary of the Treasury Treasury Department Washington, D. C. My dear Mr. Morgenthaus I an forwarding, as being of possible interest to you, copy of radiotelephone message #291, dated 5 April 1945. It was received last night from our representative in Berne. = Respectfully yours, E.Bubelly E.J. Putzell, Jr Lt. (js), USNR Acting Executive Officer Enclosure $ RESTRICTED RECISION TRADE MARK MICROSTAT NG. PAT. OFF. MICROFILM ROLL NO Purm - OFFICE OF STRATEGIC SERVICES OFFICIAL DISPATCH DATE 5 April 1040 FROM PRIORITY erne no ROUTINE TO DEFERED DIRECTOR, OFFICE OF STRATEGIC SERVICES DISTRIBUTION (FOR ACTION) (FOR INFORMATION) RECEIVED IN PLAIN TEXT RESTRICTED RESTRICTED GERNAMY According to reports roselved today from excellent sources, Mitler 1a still et or near Berlin with and his chief advisors. Be 1e seid to be andoavoring to reach 6 final docision, visation so make last stand with his troops at grlin, or to loove for the German re- ast. It fairly closs at the Corpone ;avo atandoned as Lope- less any organized defunno in C.O mest, Dut are still Lopeful of 1024- Inc off the Hussione for 0000 little time longer. It le custor to Induce the Cerman soldior to keep up a hopelese first against the Ruastone than it 1a exainst t.e Americana and [witiel Be 1deu seone to be fairly provalent in Correct tist for the soldiors taken prisoner by to Hussians years of labor In Rumois or Siberio my be their fate. On the ot: or hand, It 1a generally bulieved that, if one becomes a prisoner of E' e Anoricans or withsh, tion, after a hrief poriod of naptivity under comfortable conditions, there La a prospect of ourl return to Cermany - Strenge os It may BOOK, there to no conclusive evidence of . Coneral and vi cleanle evacuation of government bureaus from Derlin, Noes dopartments of the government still lave their chief odministrative centers there as yet, but not vary smoh to do. Each department las one or more places of retreat already chosen and with some personnel already shifted to these rotrests. Honever, the novement away from Derlin by government personnel has been thrown into somo confusion by the rapid advance of our forces in the West, with the rocult tiet many places chosen as safe refuges for government departments are nov threatoned with being overrun by our foroes. No general provent of government offices to the redult las as yet been established, but a great many high Nari officials have apparently moved their familiee More, RESTRICTED Regraded Unclassified 140 Table 1 Aoril 9, 1945 MEMORANOUM FOR THE SECRETARY Increase in income tax attributable to application of formula for allocating bank expenses between taxable From: Mr. Blough end tax-exempt income -- selected banks, 1943 Subject: Taxation and bank earnings, allocation of Income tax expenses between taxable and tex-exemot bank Assets, Before sp- After ap- Percent in- income end of 1943 olication plication crease at- of formula of formula tributable This memorandum 1a in response to your request to formula of April 2 for examples illustrating the operation of the formule for allocating bank expenses mentioned Large in my memorandum of March 24. Under this formule, an allowance would first be made for special expenses I $3,689,894,466 $5,126,123 87,012,393 36.8 assused to be associated with loans and special departmente. The belance of expenses would then be II 1,352,853,173 1,307,286 1,832,527 40.2 allocated between taxable and tax-exempt income in the ratio of tax-exempt income to total income. III 768,390,934 1,592,310 2,025,324 27.2 Expenses allocated to tax-exempt income would be dis- allowed for tax purposes. (For details of the formula seo appendix.) Medium The formula has been applied on 8 preliminary basie to 3 large, 3 mediun-sized, and 3 small banks. IV 123,235,934 154,829 210,737 36.1 The effect of its application on the 1943 income tax of these banks 1s summarized in Table 1. Further V 111,138,550 150,973 187,211 24.0 details of income for each bank are shown on the separate sheets attached. It has not been possible VI 106,613,265 127,970 156,211 22.1 to determine accurately the effect of the formula on the expess-profite income of these banks, but it 1e probable that воше of thes would be made subject to excess-profits tax. Small It should be pointed out that the effects of the VII 6,932,975 o 3,468 -- formula as shown in these examples may be substantially overstated. This 1e because the tax-exapt income VIII 5,294,487 1,322 5,261 298.0 reported on the tax returns is not always adjusted to take account of premiums ordinarily paid for tax- IX 4,422,226 1,723 3,626 110.4 exempt securities. Further study say reveal the necessity of refin- Treasury Department April 9. 1945 1ng the formula, which le based on somewhat arbitrary Division of Tax Research assumptions, to allow adequately for special expenses on loans 0.0 distinguished from investments. Attachments Roy Blough 142 141 0 Application of formula for alloontion of bank expenses between taxable and tax-exempt income Application of formula for allocation of bank expenses between taxable and tax-exempt income Bank II Assets, end of 1943 - $1,352,853,173 Bank I Assets, end of 1943 $3,689,894,466 1. Income, 1943 1. Income, 1943 Taxable $1,385,385 Tax-exempt 4,947,768 Taxable 8 9,277,744 Tax-exempt 13,847,245 Total $6,333,153 Total $23,124,989 ! 2. Income tax, 1943 2. Income tax, 1943 a. Before application of formula 81,307,286 n. Before application of formula 8 5,126,123 b. After application of formula 1,832,527 b. After application of formula 7,012,393 0, Percent increase attributable to 0. Percent increase formula 40.2 attributable to formula 36.8 The effect of the formula may be substantially overstated, since it 1e not certain that adequate The effect of the formula may be substantially allowance has been made for bond premium on overatated, since it 18 not certain that adequate tax-exempt securities in reporting income on allowance has been made for bond premium on the tax return. tax-exempt securities in reporting income on the tax return. Regraded Unclassifi 143 144 Application of formula for allocation of bank expenses between taxable and tax-exempt income Application of formula for allocation of bank expenses between taxable and tax-exempt income Bank III Assets, end of 1943 - $768,390,934 Bank IV Assets, end of 1943 . $123,235,934 1. Income, 1943 Taxable $2,529,985 1. Income, 1943 Tax-exempt 4,996,734 Taxable 329,116 Total $7,526,719 Tax-exempt 479,716 Total $808,832 2. Income tax, 1943 a. Before application 2. Income tax, 1943 of formula $1,592,310 a. Before application b. After application of formula $154,829 of formula 2,025,324 b. After application 0. Percent increase of formula 210,737 attributable to formula 27.2 0. Percent increase attributable to formula 36.1 The effect of the formula may be substantially overstated, since it is not certain that adequate allowance has been made for bond premium on tax-exempt securities in reporting income on The effect of the formula may be substantially the tax return. overstated, since it 1e not certain that adequate allowance has been made for bond premium on tax-exempt securities in reporting income on the tax return. Regraded Unclassified 145 146 Application of formula for allocation of bank Application of formula for allocation of bank expenses between taxable and tax-exempt income expenses between taxable and tax-exempt income Bank VI Assets, end of 1943 . Bank V Assets, end of 1943 - $106,613,265 $111,138,550 1. Income, 1943 1. Income, 1943 Taxable $267,531 Taxable 8183,352 Tax-exempt 141,755 Tax-exempt 524,672 Total $409,286 Total 8708,024 2. Income tax, 1943 2. Income tax, 1943 a. Before application a. Before application of formula $127,970 of formula $150,973 b. After application b. After application of formula 156,211 of formula 187,211 0, Percent increase 0. Percent increase attributable to attributable to formula 22.1 formula 24.0 The effect of the formula may be substantially The effect of the formula may be substantially overstated, since it is not certain that adequate overstated, since it is not certain that adequate allowance has been made for bond premium on allowance has been made for bond premium on tax-exempt securities in reporting income on tax-exempt securities in reporting income on the tax return. the tax return. 147 148 Application of formula for allocation of bank Application of formula for allocation of bank expenses between taxable and tax-exempt income expenses between taxable and tax-exampt income Bank VIII Bank VII Assets, end of 1943 - Assets, end of 1943 - $5,294,487 $6,932.975 1. Income, 1943 1. Income, 1943 Taxable $ 4,625 Taxable - $5,262 26,625 Tax-exempt 56,574 Tax-exempt Total Total $21,363 $61,199 2. income tax, 1943 2. Income tax, 1943 a. Before application a. Before application of formula of formula o $ 1,322 b. After application b. After application . of formula of formula $3,468 5,261 0. Percent increase 0, Percent increase attributable to attributable to formula formula 298.0 . : The effect of the formula may be substantially The effect of the formula may be substantially overstated, since it 10 not certain that adequate overstated, since it is not certain that adequate allowance has been made for bond premium on allowance has been made for bond premium on tax-exempt securities in reporting income on tax-exempt securities in reporting income on the tax return. the tax return. 140 150 APPENDIX Application of formula for allooation of bank expenses between taxable and tex-exempt income Formula for allocation of bank expenses between taxable and tax-exempt income 1. From total expenses (not including capital losses) deduct - Bank IX Assets, end of 1943 - $4,422,226 a. All service, special department, capital gains, and miscellaneous income (that 10, all income except earnings on loans and investments) plus 1. Income, 1943 b. Special or differential expenses attrib- Taxmble $ 3,353 utable to income from loans in the amount Tax-exempt 17,810 of 30 percent of earnings on loans. Total $21,193 2. Allocate the balance of expenses 1 - (1s + 1b27 to taxable and tax-exempt interest. 3. Disallow expenses as followe: 2. Income tax, 1943 8. Expense allocable to wholly tax-exempt 8, Before application interest equal to the percentage of Item of formula 81,723 2 which wholly tax-exempt interest 1 bears to total earnings on loans and b. After application investments. of formula 3,626 b. Expense allocable to partially tax-exempt 0, Percent increase interest equal to the percentage of item 2 attributable to which partially tax-exempt interest formula 110.4 - bears to total earnings on loans and investments. 4. Normal tax The disallowed expenses should be the total of items 3a and 30. The allowed expenses should be the total expenses The effect of the formula may be substantially (before deduction of items la and 1b) less the overstated, since it is not certain that adequate disallowed expenses mentioned above. allowance has been made for bond premium on tax-exempt securities in reporting income on the tax return. Gross interest minus amortizable bond premium. 151 Appendix - 2 - 5. Surtax and declared-value excess-profits tax The disallowed expenses should be item 3b. 152 The allowed expenses should be the total expenses TREASURY DEPARTMENT before deduction of items la and 1b) less the die- allowed expenses mentioned above. INTER OFFICE COMMUNICATION 6. Excess-profits tax DATEADRIL 9, 1945 The disallowed expenses should be the same as for normal tax (total of items 3a and 3b) unless the TO Secretary Morgenthau bank elects to include tax-exempt securities in invested capital for excess-profits credit and is FROM J. V. Pehle therefore required to include tax-exempt interest in excess-profite income. In that event, all expenses should be allowed for excess-profits tax. FOR YOUR INFORMATION The allowed expenses should be the same 8.8 for normal tax (total expenses minus total of items The attached excerpt from the Congressional Record 3a and 3b), unless the election mentioned above for April 5 indicates that Senator McKellar has now is exercised. inserted into the Record the letter to him of April 2 signed by Chairman Gillette concerning the Treasury Appropriation Bill. You will also note from the attached clipping that Jerry Klutts carried the story of this letter in his column on April 7. Attachments The Washington Post 154 CONGRESSIONAL RECORD Thursday, April 5. 1945 APR 7 - 1945 AFFINDERIATE SURPLOS rece. LETTER OM SCHPLE The unad the fieity of Meri Federal Our M. Property Board, in reference to certain with no apect to apprepriations for the surplus- Diary property within et the Procurement Division of the Treasury Department By Jerry Klutte no objection, the letter TM printed in the RECORD SURPLUS PROPERTY: Our M. as Gillette, chairman of the Surplex Being PROPERTY Boars Property Board. tax asked the the gider M Feshington a.c. April 2, 1941. Box, Kensers Depart- United traing MII which Bingion, a. e. would the sales of (00- MY Dara - american Res been sumet Ero- miled 16 the - - the to of the his finate - Muth . with regis to the receipt appropriation be the surpius property - form that gifer the of the Productional Inviales of time "add Treasury Departmento and the advendment to is confusted Mineover. the said with - addipted by the Benate much of Ride that had been is - ciese to - that the leading - to the and adoption. leveled Treasury's surplies : of surb - la large part have property a Boor of the upon as of etatements Benate - "unver- mate by me in the public press. ranted." agrees, be said, A sewapaper what 1 made with the rece diment made by - page tomo of the Commissioner Recess the Maad that Treasury My - - Cressed - 45 the Treasing OF any other disposi "is doing as good . job - can be - the preside of - age:- expected under the dreamstation this in if - with. No added they had been furthright out decla - Bargive is admitting and stempting to Property - No. The Depart. consent confisable mistakes. The mest is Migred - the Date+ Service approved the rider because diction of The have end its dispoista of - # indived H was daing à to wash Registration - Property Several Benators had gained Board may Propose unter de Prop- the from remairs made any Ass et 1944. Date - NOS the Board by furrer colleague that not only offigive the Agenties bus Traj vas disposing of goods lisa net prev to adopt applicable reguis. will the cleary of the board. None printing date is not denail as the Board - - 4 refer apo- citizally to - . and the Burgica Property All of 1944 As THE threfore, the Registe to de De. partinal's appropriation LE - but to add contratos. and by my optn- - about be I this that " - also appropriate to - to my that below mich of the - of the - property activities of the These - to the tate if the Resale - March . le - agree with the - - report of the Most constitution EST# of main property the FINE Mas at the treasury - - - can be repersed sinder the They have been fortangtht is administration and ettempting to corres their INDIVIDUAL - takes, and Are moine their If TW of differtion, 1 - - the instruction a this insure 16. more Racona Twy sincerely CITY M. District PRECISION TRADE MARK MICROSTAT/ MICROFILM BOLL NO. 156 CONFIDENTIAL FORSIGN ADVINISTRATION Lend-Leose Operations Unshington, D. c. Executive Report No. I April 9, 1945 ALLOCATIONS, OBLIGATIONS AND EXPENDITURES LEND-LEASE FUNDS APPROPRIATED TO THE PRESIDENT Report os of Feb. 28, 1945 (Thousands of Dellars) To: The Honorable Henry Morgenthau Appropriation Category Adjusted Cumulative to February 28, 1945 Appropriations Allosations Obligations Expenditures From: Berbert Millott Director of Research and Reports Ordnanos and Ordnance Stores $1,467,306 $1,463,009 $1,381,7% $1,302,494 Office of General Counsel Aircraft and Aero. Material 2,484,625 2,479,378 2,366,497 2,201,961 Subject: lonthly Reports on Lend-Lesse Operations Tasks and Other Vehicles 764,273 746,024 713,213 652,153 Watercraft 4,121,703 4,098,470 3,897,542 2,417,704 Transmitted nerwith are copies of Executive Reporta Miss. Military Equipment 304,288 300,562 268,361 264,661 Production Facilities 1,087,688 1,086,878 1,056,458 1,013,746 on lend-lesse operations as of February 28, 1945. Agrit. and Indust. Commodities 16,680,589 16,399,404 13,515,910 11,312,538 Servicing, Repair of Shipe, etc. 790,818 787,468 650,275 470,473 Services and Expenses 475,000 422,635 337,820 296,724 administrative Expenses 33,208 31,321 30,434 29,955 Total 28,209,698 27,815,229 24,216,286 19,962,609 Cumulative to February 28, 1945 Procuring Agency Allocations Obligations Expenditures Mar Department 5,414,949 5,214,772 4,909,416 Navy Department 4,315,566 3,398,879 3,104,497 Maritime Commission and Mar Shipping Admin. 4,149,777 3,880,261 2,269,138 Treasury Department 6,016,032 4,865,477 4,119,913 Department of Agriculture 7,835,993 6,829,350 5,538,244 Other 82,912 27,547 21,401 Total 27,815,229 24,216,286 19,962,609 Foreign [conoule Administration Office of General Counsel Division of Research and Reports April 4a 1945 ------------------------- ------------------------- Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM ROLL NO. 158 CONFIDENTIAL Lend-Lease Operations Executive Report No. 2 STATEMENT OF LEND-LEASE AID CONFIDENTIAL Report os of Feb. 28, 1945 Lend-Leose Operations (Thousends of Dollars) Executive Report No. 3 Cusulative to Month of Type of ASA LEND-LEASE GOODS TRANSFERRED Feb. 28, 1945 Jan. 31, 1945 Fab. 1945 Jan. 1945 Report os of Pab. 28, 1945 Coods Transferred $33,813,526 $32,407,334 $1,406,192 $997,106 (Thousends of Dellars) Servicing, Repair of Ships, sto, 544,887 537,917 6,970 5,582 Cusulative to February 28, 1945 Rental of Ships, Perrying of discraft, etc. 2,921,826 2,873,615 48,211 148,715 Br. Empire China U.S.S.R. Other Total Production Facilities in D. 8. 637,743 630,689 7,054 2,170 Ordnance (Exel. Ammunition) $678,737 $14,690 $298,659 $60,411 $1,232,497 Missellaneous Expesses 101,727 108,443 Cr. 6,716 1,779 Ammunition and Components 1,942,016 8,220 415,466 93,890 2,509,592 4,206,183 4,150,664 55,529 178,246 Aircraft Total Services 3,267,135 76,750 1,034,623 178,635 4,557,143 Total Cooda and Services 38,019,709 36,557,998 1,461,711 1,175,352 Aireraft Engines, Parts, etc. 1,846,981 24,779 322,418 19,779 2,253,917 Data on Gooda Transferred include value of goods procured from land-lesse appropriations Tasks and Parta 2,734,918 1,584 509,707 53,621 3,379,830 to the President and to the Mar and Havy Departments. Notor Vehicles and Parts 815,298 27,656 938,822 28,383 1,810,159 Reteroraft and Parta 2,838,357 447 329,243 257,388 3,425,435 Cumulative to February 28, 1945 Foods 3,052,290 Type of A14 3,273 1,432,003 58,786 4,546,352 Br. Expire China D.S.S.R. Other Total Other Agrie. Products 731,136 543 23,164 403 755,246 Goods Transferred 24,284,749 236,146 8,255,339 1,037,292 33,813,526 Washinery 726,343 13,042 1,080,794 18,404 1,838,583 Servicing, Repair of Ships, etc. 378,683 1,900 113,597 50,707 544,887 Netals 1,190,444 13,7% 683,329 54,615 1,942,164 Rental of Sadpe Petroleum Products Perrying of Aircraft, etc. 2,277,372 15,508 394,229 234,717 2,921,826 1,630,399 2,872 80,476 13,385 1,727,132 - - - 637,743 Wiscellansous Materials Production Facilities in U. 5. - and Menufactures 2,630,695 48,554 976,635 179,592 3,835,476 Miscellaneous Expenses 50,944 1,224 9,365 40,194 101,727 Total 24,284,749 236,146 8,255,339 1,037,292 33,813,526 Total Goods and Services - - - - 38,019,709 Economic Administration Office of General Counsel foreign Sconomic Administration Office of General Counsel Division of Research and Reporte April 4a 1945 Division of Research and Reports April 4, 1945 - - Regraded Unclassified PRECISION TRADE MARE MICROSTAT MICROFILM ROLL NO. 159 160 -2- (5) The open market rate for United States currency rose PARAPHRASE OF TELEGRAN RECEIVED to as high as 750-780 in Chungking, due to the raising of price PROT: American Embassy, Chungking via Havy of gold and the consequent decrease in denand for six month gold TO: Secretary of State, Washington deposits, but has steadied off to 700 since that time. In Funning DATED: April 9, 1945 the rate 1s 610, the disparity being due to active demand for NUMBER # 593 rupees for buying goods in India to be smiggled over the Ledo Road; SECRET rupees at 230 are at a premium over the United States dollar once The following message from Adler for the Secretary of the more. Now over 400 are savings certificates and the bond rate. Its Treasury is transmitted. February and March allotments have been sold out at 320 by the This nessage is relative economic situation in China. United Clearing Board. (1) During the month of March thore was no evidence of any retarding of the rate of increase on prices. An increase of 33 1/3 ATCHESON % for wholesale prices in Chungking 1s indicated by one unofficial index. (2) During March note issue CH dollars 246,864 million, which represents an increase over February of %, while Chungking bank clearings were almost 60%/at up CII dollars 1300 billion. (3) The revenues, CII dollars vere 8,000,000,000 during Fobru- ary;expenditures will exceed CII dollars 40,000,000,000 during March. (4) Sales of gold during March spot 21,000 bunces; 488,000 ounees total of six month deposits. The increase in official price of gold to CN dollars 35,000 per ounce offective 29th of March for resulted in an increase of the price on the black market to CH DC/L:LCW:CVT dollars 58,000 by the end of the month. During the last wook the 4-10-45 denand for six month deposits has slackened off to 6,000 ounces daily but it 1s probable that soon it will pick up again. The short gold position of the Chinese Government is now one and mlf all lion ounces,approximately. (5) The open Regraded Unclassified PRECISION TRADE MARK MICROSTAT I U. LML OFF. MICROFILM BOLL NO. + #405, April 9, 1945, from Ankara PARAPERASE OF TELEGRAM SEVE PROM: Decretary of State, Washington the DROTTWINGHOLM, within the framework of the foregoing. TO: American Embassy, Ankara In case the refures cannot be admitted to Palestine, the*ar DATED: April 9, 1945 Refuges Board 1s consulting UNRA to make provision for them at an UNRRA control camp, NUMBER: 405 The ********* given above should not be used in any way to SECURITY encourage refusal of admission of the group to Palestine by the British, which is the most destrable solution by far, Please refer to your cable of April 7. No, 473, which as No. 29 vas reported to Lendon. STRTTINIUM The American Tabasay in London has been salted by the VRB:GLM: , Department and the Var Refuges Board to emphasise with the Foreign Office of Great Britain the desirability of removing Paraphramed: German nationals from Turkey, from the standpoint of security. Further, the message states that 11 would be hishly desirable DC/L,LOW:AN that Jeve viso have been released from Germany for exchange not 4-18-45 since such en eventmality would seriously endancer the success of exchanges later on, aside from almost certain hardship to the people concerned. You 379 authorised further, in this connection, to reaev in your discretion, the assurances which were contained in cable dated February 35, 1944, from the Department, No. 146, and the following in particular: (b) In maintaining refugees in Turkey, the Board le prepared to render full assistance. (a) The Board will make every effort to NOTE refugees fina from Turkey to other locations, should such action become desirable, If the Dovernment of Turkey takes the steps necessary to facilitate the entry of a substantial number of refugees. If, as and when 11 becomes evident that the 134 refugees na board the Ref not be admitted to Palestine, the repitition of euch assurances to the Government of Turkey should be made in your discretion and for the purpose of indicing the Covera- sent of Turkey to receive them in Turkey pending arrangments for their removal to some other place. The assurances which are contained is (b) above should in your disgration be repeated to the Government of Turkey in the event the Government of Great Britain advises that the 134 refugees in question any be admitted to Palestine when the quese permits, You are requested to do everything possible to secure the admission to Turkey of the 134 refugees aboard Regraded Unclassified RECISION TRADE MARK MICROSTAT/ 116. U. L.M. OFF. MICROFILM BOLL NO. arrangment. (SECRET w) PARAPHRASE OZ. TELEGRAM RECEIVED US UPGENT FROM: American Legation, Stockholm AMERICATION TO: Secretary of State, Washington BEEN DATED: April 9, 1945 (Ree'd April 10th) 1392 NUMBER: 1326 The following for McClelland is WRB 490. SECRET Reference your no. 1988 and our telephone conversation of The following message for the Far Refuges Board and April 6th. for the Department is transmitted, New Department has agreed to sell Board 206,000 United States prisoner of mar pareels DOW in Switzerland, on condition It is in response to namage from the Department dated that these pareels are repackaged before delivery by Intererose and that they will be delivered only to concentration camps. March 27, No. 563. Far Department has requested American Red Cross to earnark these 206,000 pareels for transfer to for Refuges Board under arrange- Conversations have been actively pursued with the sente being worked out between far Department and the Board. Japanese, the Pussians and the Swedes reference the release Board most know at once (repeat at once) whether you can obtain new containers in Switserland for repackaging. If so, and transport of Fabbinical group from Shanghai, by Fabbie can repankaging be done in sufficient time and in sufficient quantities to utilise all transportation facilities including Jasobson and Welbe over a period of several months. trucks available for Board relief supplies. Board would be unable to arrange for delivery in Switzerland of containers AS high levels the interest of the Government of Sweden shipped from United States for may weice. - secured (a personal interest in the matter - taken by In the meantine, in view of your no. 2009 of April 6, Board will bring to attention of far Department that Intercross the Crown Prince) and there were promises made which are still is of opinion that these pareels could be used as they are with exception of blacking out of markings, changing labels, etc. in effect that the Rabbinical group would be given . collective Swedish visa and would be received in Sweden and supported there. STETTINIUS The position that release of the Fabbinical group would be (GHK) allowed has apparently been consistently taken by the Government NE SWP of Japan. There lise been no quid pro que so far as is known, 4/9/45 11 is our understanding that the Japanese instat that, because living conditions and congestion of civilians in Shanghai are practically unmanageable, they would be glad to get rid of the Rabbinical group. Nevertheless, the Japanese have stated that Regraded Unclassified PRECISION TRADE MARK MICROSTAT MICROFILM BOLL NO. - 2 - HAS-1910 Ankara This telegram must be paraphrased before being Dated April 9, 1945 outside transportation facilities must be furnished, adding communicated to anyone other than . Government Rec'd 0.30 p.m. that they have no shipping between Shanghai and Vladivostok and Agency. (RESTRICTED) that rail transportation to the Pussian border from Shanghai Secretary of State, (which is a weeks run) is equally imprecticable in view of the Washington. fact that the facilities are reserved for military purposes antirely. 487, April 9, 6 p.m. The Russians have expressed sympathy with the program but The official in the Ministry of Foreign Affairs have insisted that it 1a technically impossible for the Bussiane who 18 handling the matter (REKING 473, April 7) has just to furnish the transportation needed according to Jacobson and informed - the Turkish Covernment has decided to allow Folbe, who state that no Russian vessels are running between the 134 Jewish persons on the IR to land at Shanghai and Vladivostok which they call & prolonged rus and Istentul pending the *eventual determination of their an extremaly dangerous 000, The Fussians state that the fate". Siberian railway La overloaded and that no promises of trans- Sent to Department, repeated London - 31. PACKER portation would be based on realism, furthermore. There is no shipping belonging to the Swedes in the JT Shanghai area according to statement made by the Swedes. It is the belief of the Legation that the problem of moving the Rabbinical group from Shanghai has been examined into thoroughly and that it is . technical impossibility under conditions existing at present. For this reason - believe that Chauncey (for the Secty), Cohn, DuBoin, Caston, Hodel, nothing can be gained through additional afforts in that Hotchison, NoCormack, O'Dayer, Files direction which would serely retrace the identical steps which have already been taken and in addition it would seem likely that additional obstacles may be naused by the deterioration of Turro-Japanesse relations. JOHNSON DC/L:ICN:MEM 4/11/45 Regraded Unclassified RECISION TRADE MARK MICROSTAT/ ON. MICROFILM NOAL NO. PARAPHRASS OF TELSONAN RECEIVED 108 YOU: AMERICAN EMBASSY, LISBON PLAIN TOP Secretary of State, Washington Lisbon DATED: April 9, 1945 Dated April 9, 1945 748 Rec'd 8:45 ...., 10th SECRET Secretary of State The fellowing mosses VRB 377 is transmitted. Vashington This measage for Charles i, from Sharp, Unitarian 430, 751, Finth Heplying to your So, 263 there have been sent to the Inter- vas 378 JDC 213 FOR LEAVITY FROM HAROLD THOM gevernmental Committee is Lendon by way of the American Minister in Liabon all particulars regarding 180 Byyes cases and in Gettfarb Stockhelm cabled "Professor Xhrenprete addition lists have been sent to the Mexican Legation is Lisbon received letter from I Gruenberg Sofia: "Pressident who forwarded then to Megico to the Ministries of Interier des Virtschafterates bei der Juedischen Sektion der and Foreign Affaire there. 75 single - hiding is Lisbon were Vaterlammdischen Front" asking for medical supply and included in the list and in addition 22 others imprisoned also artisen tools, Please advise your point of view and 19 families 3 of these being imprisoned; the nameser 50 of the best ways of help and to when help should be directed met endangered cases can be cabled If Decessary. Advice in case Swedish Jess vill send relief to Maris should be furnished Maxicoropy that their information 10 not We replied: *01ad hear Swedish Jerry comsidering aid correct; daily - are deported either to death or to imprison- Pulgaria and hope final decision will be affirmative. a-at, I learned yesterday that . friend of President Barries, Va giving $50,000 monthly through representative committee Professor 011 Parragut former chief Guadalajara division has nov headed by Maurice Marcus Sefia also joint representative been deported from Spain and put in prison. Sie vas exiled after nov Tetanbul avaiting visa enter Palgaria already sent long imprisonment in Spain and vas later imprisoned in Portugal some medical supplies. Balieve best all concerned to where - gave his assistance. Deportation to Partugament Devile keep work centralized therefore urge Swedish Jerry aid Island Terrefal from which few return is being threstened to all through joint channels. If this principle accepted details politicals. In this energency If ve are not able to receive help regarding transfer funds can be arranged later. As from the Uniteriams, visit effort has been nade to secure direct inquiring nature committee you mention will send all from Bryan, 10,000T Vhy is there no interest is Pertugal If information sconest". Requesting information concerning large - 679 available in France for their cliente who are not committee from Maurice Marcus, in danger as your letter indicates. Is La requested that you consult for funts Lee Parlis, Labor League Human Rights, American CROCKER Federation of Labor and National CIO of Var Relief Committees, Is this regard as appreach 1a being made to the British by Marks. KFM CROCKER DC/LILON: CVT 4/10/45 Regraded Unclassified RECISION TRADE MARK MICROSTAT MICROFILM sou NO. 120-1/27 Stockholm Distribution of true reading only by special Dated April 9, 1945 PARAPIERASE 2 TELEGRAM SENT arrangement. (SNCIUMT =) Rec'd 6,55 p.m. PROM: Secretary of State, Washington Secretary of State, TO: American Inbassy, London Washington. DATAD: April % 1945 1328, April % 7 P.M. 2757 SECRET Following telegram has been sent to London 750Γ U. S. In Y.ew of fact that "ar Refugee Hoards recently made available to local world Jewish Congress 40,000 See your 20 cable No. 3186. Mar Refugee Board and bosher food parcels (half in Gotaborg for 188 by IRC delegate) for distribution to Jerish concentration Department assume that you have discussed with the Foreign Office camps in Demany through the facilities of the Swellsh Red Cross, the program referred to in your 270 of March Ankara's April 17 cable No. 29. Along these lines, you should 23, 8:30 p.m. has lost considerable of its imediate urgency. Recurre of extressly limited transportation stress the desirability from a security standpoint of removing facilities to demind, local Jevish group is appreciative of the fact that it will be nost fortunate if Oerman nationals and officials from Turkey 43 soon as possible, a in delivering even these 40,000 packages. Local group 18 ver, andous to obtain necessary funds to carry out view which the Foreign Office presunably shares. Also, it 18 believed its purchases for larger program, which supplies however simply will be stookpiled for imadiate post var delivery. by the Department to be very undestrable that any Jena released from They are particularly actious to purchase medical supplies at earliest opportunity since they report local supplies Germany for purpose of exchange be returned ultimately to Dermany as quite abort. Food also will te acquired locally, of products indigendous to Clothing 10 antifipated such 4. development, apart from almost certain hardship to persons to COMB from American sources. concerned, would probably taperil seriously pending negotiations, Repeated to Department for WEB as our 134. looking toward the departure of Jemp from Germany in exchanges, between Shipments through comercial channel each an Nootbar were discontinued sole time ago and empept for limited this Government and the German Government. parosls individually directed through paroal post channels rest of shipments are entirely under asspices of Dwedish STATTINIUS Red Cross. JOHNSON 100 Regraded Unclassified PLAIN 171 Pucharest Dated April 9. 1945 Rec'd 3131 a.m., 10th Secretary of State, Washington, 254, Sinth In reply to Department's 161 of March 28 Runanian law of December 18, 1944 repealing all anti-Jevish measures does not (repeat not) specifically restere citizenship to leve denationalized by Rumanian decree of January 20, 1938, The Justice Ministry since January has been drafting law restering citizenship to Jews demationalized their decree of 1938 to apply to Jews at base and abroad. Latest available draft of this = law being transmitted by peuch, No (repert ne) Funanish law denationalized Rumanian citisens of ethado German origin serving in German any but individual cases of demationalization have been made under Rumanian law of 1939 regulating acquisition and less of Fumanian citizenship and es Council of Minister reporte General lew on subject is being drafted by Justice Minister. BERRY via 1 PRECISION TRADE MARK MICROSTAT/ MICROFILM BOLL NO. 173 - 2 CARES 20 VISANT, LONDON, FOR CADE YROP WILLIAM D'DITER, VALI *Exact area of camp from which these persons come REPUBLICE HOARD is still unknown. For your information, following 18 text of cable received "Hortert Mataki arrived this afternoon, April 5 from Paris and will actively work with be on these from NeClelland ,under date of April oth: was programs. "Arrangements with ICHC for securing trucks to "All further significant developmente in situation transport TO food parcels into (emany for civil will be reported to Board.* detainess are shaping up as follows; Six venault tracks MILL ce available for loading norning April 9 For your further information, word has agreed to parchase and should depart on April 10, ICRC's Division of Special Assistance still to relief readly worsening from Bar Department 206,000 United States prisoner of Var par- condition of detainess in concentration campo of ienburg, (lavenstrunck and Hanburg If it cols non in Switzorland for distribution by Intercross to refu- proves impossible to dispatch tracks this area they will DO sent trunich region and eart. geos in German concentration camps. Details of transfer now "Prospecte AIR good esting four to six more being worked out between War Department and "card, rensults noving by April 13. "Deso French trucks, although cas, all re- quired light overhalling, painting with 1000 insignts, os cetera, widch has delayed their ase. with tires and diosel oil procured for ICHC by Board's efforts THIS IS LONDON CARDS NO. 64 counditee hopes nalor at least four trucks available also next week for our program. "Since it 18 quite possible that only areas of Huntch and to east and northeast thereof will be accessible in future it 18 planced to direct relief shipments by truck mainly to these regions taking in camps of Dechau, Landsberg Anlech, Flossenburg and Manthausen tear Line, including emergency relief so evacuated deportees on roads, These shipmente would be apart from any that night e to Lusbock area. "Recent DATE from Jeriary indicates that sinst all internal telephone and telegraph comunications are disrupted ao that individual can comminers are progressively more isolated. [ittle or no contralized BS control, therefore, appears to exist which may tend to preclude any general last sinute extermination of 1:15 Palle large group of civil detainees. April 9, 1945 *ICHT reported this afternoon this track convoy carrying 300 French MODEL and small children, presum- ably civil detainees, 10 expected to arrive grounligen tonorros, Regraded Unclassified 175 174 CARLE to AMERICAN INDASST, LISBON, FROM SIX VAR REFUGES BOARD CABLE TO AMERICAN LEGATION, 2335, FOR MOCLELLAND, FROM WAR REFUCER BOARD Please deliver the following message to Hareld Trobe from Please deliver the following measage to Hans Klee, 1 Bue du Rhone, K, A. Leavitt of American Jewish Joint Distribution Committee: Genera, from Abraham Silberscheis of World Jewish Congress: QUOTE RARLY LAST THAR VS PAID AMERICAN REDCROSS TENTHOSUAND DOLLARS FOR MEDICAMENTS POLAND. SUPPLIES QUOTE PLEASE INFORM WENTHER YOU HAVE SECURID PROTECTIVE NOW UNITED AND ARRANGEMENTS MADE REDCROSS EXPRESENTA* DOCUMENTS FOR ABRAHAM, MARGARETHA, ARNOLD, MILLY DRUTY. TIVE ELLIOTT SHIRK MOSCOV FOR RECEIPT AND SUPERVISION DISTRIBUTION THROUGH POL REDCROSS AND CENTRAL JEWISH COMMITTEE WARSAN. ADVISE SALY MATER REQUESTING HIS COOPERATION FRANCIS JAMES REDCROSS REPRESENTATIVE THIS IS WRB BIRN CABLE NO. 492 GENEVA FACILITATE SHIPMONT. UNQUOTE THIS IS WRB LISBON CABLE NO. 167 1:10 p.n. April 9, 1945 1:15 7,8, April 9, 1945 176 177 CABLE 90 AMERICAN CONSULATE, ISTANBUL, FOR THE VAR REFUCER BOARD CARLE TO AMERICAN LEGATION, 3225, POR MOCLELLAND, YECH WAR REFUGEE BOARD Please deliver the following MISSAGE to Professor Dr. A, Bustow, Please deliver the following message to Gerhard Riagner, 37 Qual International Rescue and Relief Committee, Istanbul, Kadikey, Mihurdar Wilson, Geneva, from Kart Grossman of World Jewish Congress: Caddesi 121, Istenbul, Turkey from Shebe Strunsky of International Rescue and QUOTE CHIEFRANCE BENSION QUEIKL JERUSALEM REQUESTED HELP an 4 Relief Committee: FOR 155 SALONIKA JEWS SUBJECTS OF SPAIN IN BERGENEELSEN. LAZARE RENVENISTA LAUSANNE WHO IS IN CONTACT VITH RICHARD QUOTE PARTLY REPEATING OUR FIVE STOP WILL TWOTHOUSAND MOSTELY LICETHEIM IN POSSESSION THIS LIST WHICH YOU PLEASE SECURE 33 SUFFICIENT ACCORDING PRESENT NEXDS QUERY REDUCTION EXCESSITATED AND SENT TO STORCE TO SEND THESE PEOPLE FOODPARCELS. DRAW BY DESIRATE sexos IN FRANCE AND ITALY STOP RECEIVED TOUR SPECIAL ATTENTION CASE ORPHANS MAANDAG SIO. AND HENRY excellent WORK FROM KATSKI STOP AMAITING YOUR APPROVAL TO APPROACH BERGINBELSEN POP INFORMED THAT 40 JEWS ARRIVED LATELY FRANK BLACK to JOIN TUREISE COMMITTEE STOP BRETHOLE SHOULD CONTACT SWITZERLAND FRIM AUSTRIAN CAMP PLEASE TRI FIND OUT WESTER HELAIS BLUM OUR WORKER LEST TO UNREA ATIONS AND EXPLORE VITH BLUM MOSKOWITE, HOLERNA AND BUT AMONGST TELSI. INQUOTE POSSIBILITIES JOINT IRRC_UNRRA SUPPLEMENTARY PROJECT STOP CABLED BLUM LIKEWISE STOP NO yusts FOR WORK IN PALESTINE BUT VILL REFER CTLASEX TO OTHER AGENCIES HERE. UNQUOTE THIS IS VRS BERN CABLE NO. 491 THIS IS WR3 1:10 p.s. 1:15 p.m. April 9, 1945 April 9. 1945 0 179 179 CABLE TO AMERICAN REGASSY, LISBON, FROM WAR REFUGEE BOARD Please deliver the following message to Harold Trobe from CASTA 20 AMERICAN EMBASST, LISSON, PROJIT THE MAY REFUCES HCARD H. 4. Leavitt of American Jewish Joint Distribution Committee: Please dollwr the following cessage to Harold Trobe from QUOTE ADVISE LINDOR AND SCHWARTE INNERQUOTE AFTER RECENT MEETING WITH KISSELEV VEO RETURNING MOSCOW F. A. [savitt of American Jowish Joint Instribution Committee: VK HAVE REACHED TENTATIVE CONCLUSION TO WROTE KISSELEY THAT WINNEVER DECISION REACHED 3T HIS GOVERNMENT GRAD. QUOTS YOU 367 GOTTHARNS INFORMATION REGARDIENG STOCYPILES UALLY RESETTLING JEVISE COLONISTS CRIMEA V2C PREPARED OF AMERICAN REDCROSS UNIVERSTAND AMOUNT SMALL DISCUSS OUR PARTICIPATION IN PROGRAM. DESPITE OUR AND NOT ATATIABLE FOIL SALE. 200,000 KILOS FOOD RESPORTED BUIGETARY PROBLEMS VE DESIRE SHOW OUR CONTINUED INTEREST. GIVEN TO COMMISSS NOT FROM ASSICIAN REDCROSS AND THIS REALIZE WEENEVER SUCH PLANS SHOULD MATERIALIZE OUR PRESENT PRESURARLY nersis TO PARCELS OF TAR REFUGER BOARD WHICH STEP MAY INVOLVE OUTLAT BETWEEN FIVE HUNDRED THOUSAND AND DESTINED 00 THROUGH SMEDISH HEDCROSS AND YISCA. UNQUOTE ONE MILLION DOLLARS ANNUALLY OVER A PERIOD. WITHOUT INDICATING ANT VINAL DECISION OUR PART couldtou ASCER_ TAIN WHETHER ICA FRIENDS WOULD BE PREPARED SHARE IN SUCH ENTERPRISE IN EVENT SUCH CRIMEAN PROGRAM MAY STENTUALLY THIS IS sour MEDIA CARLE NO. 166 EVOLVE. END INNERQUOTE UNQUOTE THIS IS WEB LISBON CABLE NO. 168 1:10 p.m. April 9, 1945 1,10 p.m. April 9, 1945 160 181 CARD TO AMERICAN LEDATION, STOCKHOLE, FOR CLEAN, FROM MAR REPURNED BOARD CARLE TO ASSICIAS GOASST, PROU THE MAY REPUCES BOARD Please deliver the following neasage to 130. Elise Ottensen-Jensen John Ericsonag 6, Stockholm, Sweden from Sheba Strunsky of International Reacue and Delief Committee: Please deliver the following message to Dr. genwarts from 11. he QUOTE MUST DISCONTINUE TRANSVISSION OF FUNTS UNLESS as RECEIVE leavitt of American Jewish Joint Instribution Committee: REPORTS ON EXPENDITURES AND ACTIVITIES STOP CANNOT UNDERSTAND WHY HEACHSTEIN CANNOT SEND REGULAR MONTHLY LETTER ADD STATISENT QUOTS ALTHOUGH JP WASHINGTON YOUR STAT TURIANTA STOP AWAITING YOUR CABIXO REPLY. UNQUOTE BULGARIA OUTLOOS UNIVATORABLE FOR DIVIDIATE PATRISSION. DIFFICULTY NOT WASHINGTON HUT IN ALLIND COMISSION. HOUSYER DOINO UTHICST THIS 20. UNQUOTE THIS IS TITLE NO. 349 1,10 p.m. 1:10 p.m. April 9, 1945 "pril 9, 1945 RECISION MARK MICROSTATI MICROFILM and NO. 183 182 CABLE TO AVISASSADOR MINANT AND STONE, PROM DEPARTMENT, FEA, AND WAR REPUGES CABLE TO HARRIYAN, PROM DEPARTMENT AND WAR REFURES HOARD BOARD Reference our 2070 March 17 and your 2965 March 22. Reference is nade to Stockholm's No. 14 of Aeril 4 No part of the proposed expansion in our 2070 will originate from the United States, out rather all will be indigenous to Sweden to you, repeated to the Department as No. 1251 of Anril 4. The relations between this proposed expansion and the originally approved Department and Board would appreciate your avine all 100 tons foodstuffs 1.0 only this: That proposal outlined represents an expan- sion of the originally approved program of foodstuffs and in that expansion possible support to the awedish Legation in Honcow in 1.18 medical supplies and clothing are proposed for inclusion. request to the Massian Government for assistance in deter- It is our intention that the distribution would be handled and supervised by Like Swedlah THICA, which, no far as cables from Sweden indicate, performed mining the fate of Haoul mllenborg, Attache to the Swedish with respect to handling and supervision on the initially approved 100 tona foodstuffs, However, ne have no objection to participation either on the part Legation in endapest. of Swedecross or Intercross. Trassuch 48 it has Deen proposed that the American Jewish Joint Distribution Committee here finance this expanded program, it 18 The "ar Infuges loard had special interest in milen- our intention that their representative in Stockholn shall be the spokessan for private agency interests in Sweden. Your reference to commercial channels, berg's nission to Hunnary because of ais outstanding work that 18, J. lootear and 4. B+ does not have our approval. Rather, it is proposed that food parcel distribution to internes in concentration camps in protecting Jown and other victims of unless oppression in enery Europe continue to be controllod as in the part by private humanitarian organizations who have demonstrated ability to perform with respect to distribu- during the enemy occupation 4 Hangary. tion. THIS ID vu LONDON CARE NO. 63 1:51 p.M. April 9, 1945 10,00 a.n. April 9, 1965 Regraded Unclassified RECISION TRADE MARE MICR NOT TQ DE RE-TRANSMITTED COPY NO. SECRET 1PA OPTEL No. 111 Information received up to 10 a,D,, 9th April, 1945. NAVAL 1. ANTI-SUBMARINE OPERATIONS. 8th. Frigates of 4th Escort Group made promising attack on U-boat S.W. of Ireland (B), while promising attack also made against second U-boat by frigatos of 21st Escort Group in same area. MILITARY 2. WESTERN FRONT. Southern Sector: 1st French Army made steady progress in face stiff opposition Karlsruhe and Heilbronn areas while further north infantry of 7th U.S. Army has cleared Wurzburg while armour of same Army has struck east from Heilbronn and reached Crails- heim. Central Sector: 1st U.S. Army secured bridgebead over River Weser north of Munden and late reports state Gottingen captured. 9th U.S. Army advancing against Ruhr pocket from North is fighting in Essen and Dortmund, while armour of same Army striking east now within 8 miles Hanover, Northern Sector: Armoured columns of 2nd British Army crossed River Leine N.W. of Hanover and now 7 miles from Bremen. Further west 1st Canadian Army made good progress with elements 4th Canadian armoured division reaching Meppen and Zutphen being cleared by troops 3rd Canadian Infantry Division. On 7th/8th special air service troops dropped in advance this Army and have gained their first objective. 3. EASTERN FRONT. Northern Sector: 8th, Assault on fortress city of Konigsberg launched when troops advancing from N.W. and south linked up thus enciroling considerable body of German troops defending city, while at same time nain station and port captured with 15,000 prisoners taken during day. Southern Sector: Further progress nade N.W. Bratislava where bridgeheads won over River Morava. South of Danube good pro- gress also made N.W. and most Vienna while fighting continues in southern and western parts of city where arsenal and three nain rail- way stations taken. Further south gains of 12 miles on 30 nile front made in area S.V. Winer Neustadt. 4. ITALY. In Adriatic sector troops of 8th Army made further progress between Lake Comacchio and River Reno where 275 P.W. cap- tured. In West const sector U.S. troops captured Montignose. 5. BURMA. Central Sector: Further 10 mile advance nade south Moiktila and our troops now ? miles S.W. Pyawbwe. AIR 6. WESTERN FRONT. 7th. Further reports state additional 435 tactical aircraft 3 missing ) destroyed 49 enemy aircraft on ground and over 600 road and rail vehicles. 7th/8th. 209 Bomber Command aircraft despatched (1 missing): 187 against oil distillation plant Molhis (south Leipzig) and 22 tomber support, when weather clear and bombing concentrated. Same night 46 Stirlings dropped paratroops Assen-Meppel area. 8th. 1184 U.S. escorted beavy bombers (10 bombers and 1 fighter outstanding) dropped 1493 tons rail centres Central Germany, 464 tona on 3 airfields Nuremberg area, 656 tons on 2 ordnance depots and 244 tons other targets, when all attacks except one made visually and reported successful with no enemy air opposition. SHAEF (Air). 801 medium bombers (9 missing) attacked con- munications and oil targets while 2073 fighters and fighter bombers (9 missing) operated Northern and Central sectors destroying or damaging 800 road and rail vehicles while inflicting enemy casual- cles 35,4,13 in combat and 60,3,74 on ground. Air transport sorties 983 flown. 7. MEDITERRANEAN. 7th. 668 U.S. heavy bombers despatched, but majority returned early due to weather, while remainder dropped 289 tons on 5 alternative railway targets. 629 tactical aircraft operated whole front cutting railway lines 53 places and destroying 7 oil cis- terns. Regraded Unclassified RECISION MICROFILM SOLL NO. 184A April 10, 1945 - 2 - 9:28 A. M. 184B HMJr: Be over all. Mr. Dan B: All right. Bell: Good morning. HMJr: I would like to suggest Milo Perkins. HMJr: Can the people hear me? B: Milo Perkins. B: Yes, they can hear you. HMJr: Yeah. I think he would do & bang-up job for us. HMJr: And I'm making a record? Now I'll wait and see what the crowd thinks. B: Yes, sir, you are making arecord 60 be careful what B: Just a moment. (Talks aside) you say. Harry and Coe think he would be good, but they don't think he would go. HMJr: What? HMJr: I think he would go. I don't think anybody can refuse B: And be careful what you say .... this. HMJr: (laughs) All right. B: Well, I don't know why they think he won't go. Let's see you got another job in mind? B: It will be held against you. HMJr: Nobody can refuse to go. HMJzj Well, now, Dan, I've got a flood of messages here before me, see? B: Just a moment.. (talks aside) Well, they still think he wouldn't go that they have other jobs in mind for B: All right. his. HMJr: And in reply to this request of the Var Department HMJr: Other jobs? to send some people over to run down German funde B: (talks aside) Oh, I thought you said. wait a minute. B: Yes. Well, Harry says there are several reasons why he wouldn't go. Re's quite certain that he will not go. HMJr: I definitely do not want to send Harold Glasser. HMJr: Well, let Milo Perkins decide that. B: All right, I told Harry that this morning. B: All right. HMJr: I don't want to argue about it. HWy: Hello? B: All right, sir. B: Yes, all right. HMJr: I want to suggest that Orvis Schmidt go. HMJr: And you people this morning get in touch with his and B: All right, we already have that under.. consideration. put it up to him. HMJr: Yeah, now I have, what I think 1s a brilliant suggestion B: All right. for & man to head that section. I mean, whatever you call it, the Finance HMJr: See? B: The Finance section. B: Yes, sir. HMJr: Yeah. HMJr: Do they agree that if he would go he would be a good man? B: Be over all, eh? Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ MICROFILM sou NO. - 3 - 184-C 184-D HMJr: B: Yes, they all do. On cartels. B: HMJr: What? On cartels, yes. HMJr: B: Herbert doesn't. Well, we don't want A cartel man. B: No. HMJr: Well, what HMJr: B: Herbert doesn't think that he would be a good man, Well, talk it over amonget yourselves. most of the others do. B: All right. HMJr: What's Herbert's objection? HMJr: Now, hello? B: And Luxford thinks he's a cartel san. B: Yes. HMJr: A cartel man? HMJr: Dan, I got this letter from Robert McConnell. Hello? B: Yes. B: Yes, I haven't seen it. HMJr: Milo Perkins? HMJr: Well, he wrote me seking my advice, you see? B: Yes, he wrote an article on it. Personally I don't B: know him very well. I was never impressed when I vas Oh, yes. He did talk to me, however, about it. in the Budget and he was in the Agriculture, but then HMJr: I wouldn't hold that against his because Now, what I'd like him to do is ... let his read this .... Hello? draft which the boys sent down to de on reparations. HMJr: Well, am I not right that he more or less spearheaded this thing when we were trying to get Sweeden to stop Bt Yes. sending ball-bearings and that stuff? HMJr: B: That I don't know (aside) Was he? Lauch Currie And I want to know how McConnel feels about that. Seet va.e the head of that, they say - spearheaded. B: All right. HMJr: Well, wasn't Milo Perkins very active? HMJr: But if the reparations draft, see? B: He played a minor part. (Laughs) (Group laughter) B: (He vas on the other side of the fence entirely) I get it. HMJr: Well, then why do they think he 18 good? HMJr: And tell McConnel that if Mrs. Morgenthau continues B: Wait a minute. (The head financial section, yeah, head well for another 24 hours, I will be coming up to- morrow. of the financial section the Secretary is suggesting him for). Coe said We have no basis for believing that B: All right. he would agree with our views on Germany. HMJr: HMJr: Well, you had better find out. And whether he would mind waiting until I got up there. B: I'm sure he would. B: And, the only way you can find out is to send for him. HMJr: Well, we can find out. Hello? And that I then would like to sit down and talk to his. HMJr: But if he will go along with us on that reparations B: Yes. DuBois says the one thing that he knows 18 the draft, and that is good a thing as any to take anybody's temperature, let his read that... article he wrotein Harper's which 10 against him. Regraded Unclassified PRECISION TRADE MARK MICROSTAT/ MICROFILM - 5 - 184-E - 6 184-F B: (laughs) HMJr: I say, I'm just mentioning some of these people. I'm HMJr: And ... you know, riding in this morning with thinking more of some widow of some General. Now there Mrs. Lehman I got an idea. I think that there would are nine Generals who have been killed, and of those be some women in this country that we could send over certainly hello? there who have lost sone and feel the way Mrs. Lehman B: does. We never think in terms of women. Now the amongst them you can find some University woman, Army. the State Department, for instance, is or some woman that would just tell some of these ap- peasers where to get off. I wish you could hear using the wife of General MoNair. Hello? Mrs. Lehman - she'd make even Joe DuBois pale. B: Yes. B: (Laughs) HMJr: And they are using her. There must be other people HMJr: Hello? like that because the mothers of America, you don't have to tell them about being tough on Germany. B: Yeah, B: You mean in this over-all set up? HMJr: She sav some German prisoners this morning working HMJr: Yes. I just don't .... I can't understand why they here, fat as hoge, working around the hospital, and don't bring some women in. I mean, take a women like the guard with his back turned smoking & cigarette. Mrs. MoNair, for instance. There are other women like B: that. I don't know, for instance, who General Rose's Well, it hean't been thought of here, but we might look at it. wife 1s, who vas shot there'in Germany the other day. HMJr: B: No, I don't know either. They come from out West some- What? What are you saying? where. B: I say we might look at it. It haen't been thought of HMJr: What? apparently here HMJr: B: Come from out in the Middle West someplace, I don't I think nine Generals have died, and amongst their know, wives there night be one or two very good women. HMJr: B: Denver. But I would think seriously of asking the Army All right, we'll take a look at it. about the wives of some of these Generale--- who they are, HMJr: how much education they have. Now you take Mrs. George They need the money and everything else. What? Patton, whe's wonderful. We have used some of these B: All right, we'll take a look at it and see if there women in War Bonds. There are no few people in the country are any available. who feel the way we do about Germany, I think we have got to get & couple of women on that plane to come in HMJr: They'll have some feelings on this thing. and eit in on these things. B: All right, sir. B: Do you muggest Mrs. George Patton? HMJr: And, now, let me talk to Harry a minute. HMJr: Well, I was mentioning her because she was very good. Mrs. Mark Clark B: Harry B: Mrs. Mark Clark has been ... Mr. Harry White: Hello. HMJr: Hello? HMJr: Harry? B: she's been in the limelight. Unclassified RECISION TRADE MARE MICROSTAT MICROFILM BOLL WO. - 8 - - 7 - 184.6 184-H HMJr: And, because I'd be influenced. If ve have the vote. Well, you sav my telegram. W: Good morning, sir. W: Yes. HMJr: How are you! HMJr: I don't-- by God, the way I feel, if we are going to V: Fine, thank you. do any compromising let's do it with our friends, like CED. HMJr: Good. be well I. enough, I hope to get back Wednesday nite. with the hope that Mrs. Morgenthau will V: Yeah. HMJr: That's fine. Hello? W: And with that in mind I would kind of just like to W: HMJr: Yeah, I'm listening. mark time on this Bretton Woods business until I can get to grip with you fellows. HMJr: And, so, I'll know tomorrow morning. They want one more 24 hours, you see. W: Well, that suite me, I don't know whether it suite the W: other men. Well, we can find out what we dan today. Would you suggest using Hannegan to find out, too, merely to HMJr: Well, I know it suits Bell. bring him in the picture, or do you want us to work through Spence? W: Oh, it does, well, now it's o.k. HMJr: I would do it through Spence. HMJr: Hello? V: What? V: All right. 2 RMJr: Through Spence. HMJr: I talked to Bell last nite and the only thing he said he'd feel happy if he could tell Ecclee what e going V: O.K. on. HMJr: Yeah. I told Bell last night and he's agreed that just W: Yeah, I think that myself, I think that he should do let Burgess 0001 his heels a little bit. Hello? that too. W: Yes. HMJr: And I told his because Are you fellows sure that we've got the votes in the committee? HMJr: The first thing you know another one of these fellows will shoot themselves. W: Well, I think a recheck would be essential before that definite statement could be made. W: (Laughs) Yeah, I'm having. yeah, ve are checking up on where all the boys are all the time. HMJr: Supposing that be done this week. HMJr: Yes. Now one other thing- this is for everybody. I W: I think it could be done this week. want to ask Bell and you and Coe this question, "Where the hell 1e FEAT Why did they dump all this stuff in HMJr: If it could be done today or tomorrow. the Treasury's lap?" Well, that I don't know. I don't know how sany there ** Which stuff? W: are, but we can find out. We can. HMJr: Well, there's this stuff of setting up these connittees HMJr: Suppose you try and find out. under General Clay. W: Right. Regraded Unclassified PRECISION TRADE MARK MICROFILM BOLL NO. - 10 - 184-J 9 - 184-I V: Well, I don't know about it 80 I'll ask Coe. (Frenk, C: Well, I hear that Douglas says that the way the did you hear what the Secretary said?) I'll put Frank policies are going that he won't have any industries Coe on the line, because I don't know what you refer to run. He is very disturbed. to, Mr. Secretary. HMJr: Well, the funniest one I read vas by I.M. Stone HMJr: All right. C: Yeah. Mr. Frank Coet Hello. HMJr: He asked. he said that when Leon Henderson was back, he said, "Morgenthau is having his way," because every- HMJr: Frank. place he went in Germany he just saw chaos. C: Yes. C: (Laughe) Yes, that's all over. HMJr: In this business, in all this stuff that General Hilldring HMJr: What? and General Clay are asking us to do - after all, FEA 1s supposed to have a foreign economic section with C: I also hear that Gramey Howard of General Motors about one hundred and twenty-five people in it studying 1e going. Germany. Now General Clay and General Hilldring pay me the compliment of asking me to do this and to do HMJr: Whot that, but where the hell is Crowley and all of them? C: Gramey Howard. He's the Colonel who's been in C: Well, this is in connection with the financial and charge in London. property section of the Army. That 1e under Colonel Bernstein, and they frankly say they cannot get trained HMJr: on. Re's the fellow -- there was some story about financial men. the truck - I forget - leave the trucks over there 80 that they can sell new trucks. HMJr: Now that isn't it. from the telephone conversation I've had with Bell, I don't see where FEA is doing any- C: Yesh, I think our boys --- I think Taylor and our thing. people had some trouble with his section over there very definitely. O₂ Well, they are planning to --- they've got about eight, nine, or ten other economic sections of the Control HMJr: Now, here's another thing --- I wrote down two names, Commission for Germany, and they are planning to feed Milo Perkins, he say not be good, but you can check in civilian personnel into some of those sections. it. There's a committee meeting with Hilldring and the civilian agencies line up their people through that. C: Yes. Now the Army, as in the case of Italy, first doesn't want people, and then gradually as their men in the field HMJr: The other nan I would like to bring in as an advisor scream they start asking for more help. But the other to the Treasury and get him into this pioture somehow agencies are providing personnel but for different kinds or other 1a President Conant. of work. C: President Conant. HMJr: Well HMJr: of Harvard. Hello? 0: By the way, I just heard from State that Lew Douglas is going with General Clay. 0: Yes. HMJr: Bell knows all about it, he talked to Lew Douglas. HMJr: I'd love to get his down here in some way so that while this thing at this end is in & formative period, that C: He talked with him? he would be there as an advisor to me. HMJr: Yes, Regraded Unclassified PRECISION MICROSTAT/ U.S.PAT.OW MICROFILM BOLL HO. - 12 - - 11 - 184-K 184-L 0: The reparations 1a going good. C: Be here as an advisor to you. HMJr: Now, I've got that one. It says here, "As previously reported, HMJr: Personally, yep. the document - in a form acceptable to the Treasury is revised and ready for the Clayton Committee. Financial 0: Yeah. Directive HMJr: I wish the boys would think about it. C: That's right. C: We'll talk that over. HMJr: Is that 117 HMJr: There's no question where he stands. Hello? C: That's it. C: I haven't followed --- I haven't followed him. HMJr: I got that. HMJr: Well, read his article in Life of two weeks ago. C: That's the report up to date. C: All right. HMJr: Now you tell your friend White he sent ne one on Belgium and Dutch lend-lease. HMJr: Read his article. And he has a wonderful position in this country. C: Yes. C: That's right. HMJr: I'm not going to worry about that until I get back. HMJr: 0: Read his article of two weeke ago. All right, then, we will just proceed as indicated there. C: We will get it and pass it around. HMJr: Well, on the assumption that I will be back in a couple HMJr: Its the same as his speech . This speech vas circu- of days. Can that wait? lated about two months ago, but ve could use somebody C: like that. Yes, sir. C: HMJr: What? Well, we will discuss it. C: HMJr: Now, how are you getting along over there with the Yes, sir. State Department? HMJr: Isn't that really --- are you doing that or 18 White C: We are about half way through the Economic directive doing it? over there, and we sent you last nite - did you get it? C: a report on how those meetings are going. I'm doing that. HMJr: HMJr: Wait a minute, I got everything here. Just a second, I don't White ought not to be doing it. think I 0: No, he 1sn't. C: Maybe you have too much down there. HMJr: He's got all he can do on Bretton Woods. Well, did HMJr: Well, I got too such 18 right, but it is all right. Wait Clayton get in on any of this? a minute. C: Yes, Clayton has been in on this both on the Belgium 5 Well, in and on the Dutch lend-lease, and he 1s having A change of heart. He said that Connally spoke to his very seriously HMJr: Wait a minute, wait a minute -- I've got the one on reparations and Regraded Inclassified - 13 - 184-M 0 0:(Cont) about the 30 business and he 18 getting worried about it. Also, as you say notice this morning, Vendenburg is out asking the Administration for a full statement of what they intend to do financially around the world -- all their committments. HMJr: No, all we get down here 1s the columnists. 0: (laughe) HMJr: All right. C: All right. HMJr: Now, if Mrs. Klotz goes back to her office, I'd like to talk to her. C: All right, goodbye. HMJr: Bye. = 8 CERTIFICATE OF AUTHENTICITY OPERATOR: Schwart ROLL NO. 3 TIME START: 945AM DATE: 1/30/47 TIME FINISH: 1115 DEPT.: SPECIAL FEATURE OF COPY: pcale B Deary Book Diary # 1832 831-2 Mar " 24.26 23, 1945 1945 833 % 27.31 1945 1 834-1 91 834.2 # 835 apr 6-10 1945 apr 4-5 1945 apr 1-3 1945 (pp 7 to 184m agrio 1900) conton nextrace 4 Photslats Poot. writing gave gray 18ml illy itle 1 bereby certify as follows: 1. I in # microlio operator employed by MICROFILM CORPORATION. 2. I made accurate and complete reproductions of the all embesined by for microfilming on the date of dates above memboned. 3. The listed above is the roll number and the seconds which it contains. (Company Name and Address) hole punched through the lower left hand resser of the frame, the picture a a deplicate and should be disregarded. enached a the beginning of this rell, and will be premied by # certificate essided: Certificate of Authenticity (Reakes): if any pimeres have . 4. The al any pinum have . norch punched through the edge of de frame, they have brea oresken, and each reskes will appear above space labelled: Special Feanure. 5. The if there are any significant feaures of the records microbled on this rell, they will be described in my handwriting in the - or additional regulations theores. thereof and according to Regulation 11, Sect. 80151 to 8015.9 indusive, made by the el Commun or any amend- 6. The said microbining was performed persuant a and in bondomance with Commer Septement Act of 1944, Seca. 4. (b) and 19 (a) Name of Operator