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Volume 726, May 1 – May 2, 1944
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Volume 726, May 1 – May 2, 1944
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Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
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Diary
Book 726
May 1-2, 1944
Regraded Unclassified
- A -
Book Page
Appointments and Resignations
Olrich, Ernest L.
Clayton (Will)-Treasury correspondence upon appointment -
5/1/44
726
65
Fred Smith suggestion of Public Relations - - 5/1/44
68
White suggests small group of economic advisers:
See Book 727, page 5
Appointment at $1 per year - 5/3/44: Book 727. page 67
Bell, C.S., reports to HMJr after taking Olrich to
Procurement - 5/4/44: Book 727. page 115
Paul, Randolph E.: Acceptance of retainers while in
a leave status
Discussed by HMJr, O'Connell, and C.S. Bell - 5/1/44
47
#
by HMJr, D.W. Bell, C.S. Bell, Gaston, and
'Connell 5/2/44
131
a) Resignation accepted as of April 25
145
Appropriations, Treasury
June 30, 1945, Act sent to HMJr by Ludlow - 5/1/44
83
- B - -
Black Markets
Payment by check in transactions over $500 as a means to
reduce discussed in Rosenman-Treasury correspondence -
5/1/44
58
Business Conditions
Haas memorandum on situation, week ending April 29, 1944 -
5/1/44
70
- C -
Cochran, John J. (Congressman, Missouri)
See Engraving and Printing. Bureau of
Couve de Murville
See France
- D -
Deferments, Military
Conference; present: HMJr. Gaston, and C.S. Bell - 5/1/44
27
a) Recommendations
29
1) Engraving and Printing. Bureau of
2) Mint, Bureau of
3) Procurement Division
Diplomatic Immunity
Office of Censorship-State-Treasury correspondence concerning
remittances destined for enemy territory - 5/1/44
93
Regraded Unclassified
- I -
Book Page
Engraving and Printing, Bureau of
See also Deferments, Military
Wage scale - revision of discussed at 9:30 meeting -
5/1/44
726
23
a) Cochran, John J. (Congressman, Missouri)-Treasury
correspondence concerning - 5/1/44
85
Health survey to cut down absenteeism also discussed - -
5/1/44
23
- I -
Financing. Government
Additional Treasury bill issuance and position of American
Bankers' Association Committee and Federal Reserve
System discussed in Bell memorandum - 5/2/44
171
War Savings Bonds
Life insurance advertisements also as means of saving
discussed by Vinson and HMJr - 5/2/44
165
a) Smith memorandum on Office of War Information-Gamble
conversations - 5/2/44
178
b) Treasury letter to Vinson 5/8/44: See Book 729,
page 70
New England Mutual Life Insurance Company correspondence -
5/12/44: Book 730, page 38
4th War Loan Drive: Panama Canal (Governor of)-Treasury
correspondence concerning donation of $67,257.18 for
bomber - 5/2/44
175
Foreign Funds Control
Yugoslavia: State Department attitude toward Royal
Yugoslav Government and National Committee of Liberation
of Yugoslavia - 5/2/44
217
France
Couve de Murville: HMJr's protest to Department of State
concerning the reappointment as representative of French
Committee of National Liberation - 5/2/44
216
- G -
Ginsberg case
See Justice, Department of
- I -
Internal Revenue, Bureau of
See Justice, Department of
Regraded Unclassified
- J -
Book Page
Justice, Department of
Arrest of Internal Revenue Agent discussed by HMJr with
Treasury group - 5/1/44
726
3
a) Gaston-Rosenman conversation reported to Treasury
group - 5/3/44: See Book 727, page 1
b) Congressman Cochran (Missouri)-Inv conversation
reported to HMJr - 5/5/44: Book 728. page 4
Schenley indictments - no-mention of Treasury participation
commented on in Smith (Fred) memorandum: Book 727. page 182
- K -
Kellems, Vivien
See Tax Evasion
- L -
Lend-Lease
U.S.S.R. : Fourth Protocol requirements discussed in
memorandum and program - 5/2/44
183
United Kingdom
Aircraft despatched, weeks ending April 14 and 21 -
British Air Commission report - 5/1/44
90
Gold and dollar holdings as of March 31, 1944 - 5/2/44
208
Life Insurance
See Financing, Government: War Savings Bonds
- X -
Mint, Bureau of
See Deferments, Military
Montgomery, Ward & Company
Procurement contracts in connection with Lend-Lease, etc.,
discussed by 9:30 group - 5/1/44
16
Editorials - analysis of - 5/17/44: See Book 732, page 194
- N -
Netherlands
Renewed request for loan discussed in Netherlands Minister
of Finance-Jesse Jones-Treasury correspondence - 5/1/44
100
a) HMJr's cable to FDR - 5/2/44
212
b) FDR's reply - 5/3/44: See Book 727, page 66
e) HMJr-Jones conversation - 5/5/44: Book 728, page 1
d) Hull-HMJr conversation: Hull has "15% interest in
the matter" - 5/6/44: Book 728, page 122
1) Copies of FDR-HMJr cables sent to Hull:
Book 728. page 127
Attitude toward Government-in-Exile - article in London
New Statesman and Nation - 5/2/44
210
Regraded Unclassified
- I - (Continued)
Book Page
New England Mutual Life Insurance Company
See Financing, Government: War Savings Bonds
- o -
Olrich, Ernest L.
See Appointments and Resignations
- P -
Panama Canal
See Financing, Government: War Savings Bonds
(4th War Loan Drive)
Paul, Randolph 1.
See Appointments and Resignations
Portugal
See War Refugee Board
Procurement Division
See also Deferments, Military
Surplus Property, Disposal of
See Appointments and Resignations: Olrich, Ernest L.
For organization chart under Olrich, and Bell memorandum on,
see Book 727, page 133
- S - -
Schenley Indictments
See Justice, Department of
- T -
Tax Evasion
Kellems, Vivien: Present status of case given HMJr by
Sullivan - 5/1/44
726
14
- U -
U.S.S.R.
See Lend-Lease
- W -
War Refugee Board
Temporary havens of refuge - unwillingness of United Nations
to provide discussed in draft of memorandum for FDR -
5/1/44
40
a) Discussion by HMJr, Pehle, and DuBoie
30,146
b) Memorandum for FDR - 5/8/44: See Book 729, page 135
Regraded Unclassified
- W - (Continued)
Book Page
War Refuges Board (Continued)
"Free Ports"
American Federation of Labor approval of - 5/8/44:
See Book 729, page 141
National Farmers' Union approval of - 5/12/44: Book 731,
page 69
FDR's favorable reaction reported to Pehle, Luxford, and
DuBois by HMJr - 5/16/44: Book 732, page 62
Haven for 1000 refugees to help solve Italian situation:
Memorandum to FDR, draft of message to Congress, etc. -
5/18/44: Book 733, page 9
a) Discussed by HMJr, Pehle, and DuBois: Book 733,
page 1
Portugal: Preliminary report by Special Attache'
Robert C. Dexter - 5/2/44
726 225
- Y -
Yugoslavia
See Foreign Funds Control
1
May 1, 1944
9:27 a.m.
HMJr:
Hello.
Clifton
Mack:
Good morning.
HMJr:
Cliff.
M:
Yes, sir.
HMJr:
I've just gotten a letter from Brigadier General
York in regard to the Protocol for Russia.
M:
Yes, sir.
HMJr:
Now, do you deal with him directly?
M:
Yes, I do. I'm on that Committee, Protocol Committee.
HMJr:
Because they send me the whole works but they don't
send me which part is for us.
M:
Oh, I see. Well, I'll be glad to take care of it
because we work with that Committee.
HMJr:
You do?
M:
Yes, sir.
HMJr:
Well, I'll send it over to you. I have no -- I've
only got this one copy. That's the trouble.
M:
Oh, I see. Well
HMJr:
I'll send you this copy and you try to get me
another one for my files.
M:
That's -- very good.
HMJr:
Will you, please?
M:
I'll be glad to do it.
HMJr:
I'll get it right over to you.
M:
Very good and I sent over to you a memorandum
this morning on surplus property that calls for
your decision. And the State of Illinois claim
that they want passenger vehicles because of a
flood situation.
Regraded Unclassified
2
- 2 -
HMJr:
Yeah, you told me about that.
M:
And originally they thought they wanted a hundred
and fifty or two hundred and now they have infor-
mation that they need twenty-five for the Public
Health Service and twenty-five for the Public
Safety Service.
HMJr:
Yes.
M:
And I told our Chicago office to go ahead with the
preliminary steps so we wouldn't lose any time but
pending your approval or decision.
HMJr:
Well, I give you -- I give you my approval now.
M:
Very good. All right, sir.
HMJr:
I give you my approval now.
M:
Very good. I'll go ahead then.
HMJr:
Thank you.
M:
Yes, sir.
Regraded Unclassified
3
May 1, 1944
9:30 a.m.
GROUP
Present: Mr. D. W. Bell
Mr. Gaston
Mr. Smith
Mr. Paul
Mr. Sullivan
Mr. White
Mr. Haas
Mr. O'Connell
Mr. Blough
Mr. C. S. Bell
Mrs. Klotz
H.M. JR: The principal thing that is bothering me this
morning that I want some advice on--I think I know what I
want to do--is this relationship between the Treasury and
the Department of Justice, Internal Revenue, which is
your (Sullivan's) responsibility, where the Department of
Justice goes in and arrests one of our men.
Well, I was worrying about it all night. You would
expect Governor Dewey to do that kind of 8 thing, except
Governor Dewey happened to cooperate with us when he was
District Attorney.
Now, do you have a pencil, John, and paper? I would
like to write this kind of a letter: "To the Attorney
General: The President of the United States is very busy
prosecuting the war. I happen to be very busy raising the
money, providing the sinews of war. And you, Mr. Attorney
General, seem to be very busy being & busy-body.
"Now, I haven't the time or the inclination to enter
into an inter-departmental fight with you, because I think
all of us have all we can do to fight the enemy, the Germans
and the Japs.
Regraded Unclassified
4
- 2 -
"I am serving notice on you, Mr. Attorney General,
that I am asking you in the vernacular to lay oif the
Treasury Department. I would expect you to act towards
me as & fellow Cabinet Member; and if over a period of
ten or eleven years agents of the Department of Justice
found that two or three out of eighty thousand employees
of the Treasury were dishonest, I would expect you to
bring this matter to my attention, and not to act as I
would expect Governor Dewey to act, as though he caught
the Treasury Department, and make capital out of it.
"Now, the net result of what you have done as a
fellow Cabinet Member is to discredit the Treasury in the
eyes of the public, and in that manner you are undermining
the Treasury Department, undermining our efforts in selling
war bonds, and I don't expect this matter to happen again.
If you do by chance find, as I may find, some agent of
the Department of Justice who has been dishonest, I, on
my part, will be very glad to turn the evidence over to
you.
"This matter is B. matter that the Treasury Department
has taken care of for over twenty-five years, and I expect
it to continue this way. Yours sincerely."
Now, what I would like to do is have 8 letter written
in that spirit. I am going to serve notice on the fellow.
If you don t mind my saying so, I think you people have
let this thing come on yourselves. I don't know why or
now. I mean, it is perfectly silly to send Harold Graves
and somebody else over there in conference with this man.
I offered to see J. Edgar Hoover, and I was advised not to
see him. To let this man get away with 8 thing like this,
I think, is outrageous. He is acting as though he is a
member of the Republican regime out to get me. And I am
not going to stand for it.
In order to play safe, after this letter is written
I want to show it to Samuel Rosenman and get his advice,
but I am not going to call him up and be undignified
and call him 8 lot of names, and so forth, and so on.
But for the Attorney General to go out and arrest one of
our people after we have asked him to turn over the evidence
Regraded Unclassified
5
- 3 -
to us, I think, is outrageous, and I think that you are
a bunch of sissies.
MR. PAUL: May I ask what happened here? I don't
understand the background.
H.M.JR: The background is that they ran into evidence
of an agent of Internal Revenue who was crooked. We asked
them to turn the stuff over to us; he didn't do it. He
asked our McQuillan to turn the stuff over to him. We
didn't do it. I don t know whether it had to do with this
case--he wrote us an eight or ten page letter making a lot
of statements, and we practically called him a liar in
answering him.
MR. PAUL: Before he was arrested?
H.M. JR: As a result of which ne said he would like
to talk the matter over. Then we sent Graves and somebody
else.
MR. GASTON: I made arrangements to see McGranery, and
then for one reason or another neither of us was able to
keep the appointment until I left town. Then I asked Graves
and Irey to go to see him.
H.M.JR: with the net result that on either Friday or
Saturday they go in and arrest this fellow and find seventy-
five thousand dollars in his place.
Knowing that the FBI was after him, why the hell didn't
they get after him and get the evidence first? They have
had months of notice. Why didn't Irey and his men, Internal
Revenue, go after this fellow and get there first? I don't
know what they have been doing.
MR. GASTON: This particular case--
H.M.JR: Why let the FBI make the case?
MR. GASTON: The FBI had the complaint from the tax-
payer.
Regraded Unclassified
6
- 4 -
H.M.JR: If they knew something was suspicious, why
not investigate? They went into the man's apartment and
found seventy-five thousand dollars.
MR. PAUL: This was what case?
MR. GASTON: This is the Ginsberg case, I suppose, in
New York.
H.M.JR: What is the matter with Internal Revenue?
We have all these agents. They know FBI; they know it is
competition in a race. Why not go and get there first?
MR. O'CONNELL: I think that would be worse, ar.
Secretary. It seems to me it would make it even worse to
start a competitive race.
H.M.JR: I don't agree with you at all. If we know
it is 8 competitive race, let's get there first.
MR. C. S. BELL: That puts us in the position of
having 8 crooked man in our employ for two or three weeks
while we are investigating it, and we know nothing about it.
H.M.JR: Two or three months.
MR. C. S. BELL: The Bridgeport, Connecticut case was
two or three weeks.
MR. GASTON: No, this Ginsberg case, I think, we must
have heard about three weeks ago.
H.M.JR: Are there two cases?
MR. GASTON: Oh, yes, the Kevil case originated in
December, that case in Connecticut. That is another case.
H.M.JR: I don't agree with Joe at all. If we know
they are after it, let's get there first.
MR. O'CONNELL: I think the solution comes the way
you first suggested, that you have to get a solution at
the time. I can't think of anything worse than a continuing
competition between us and FBI to chase Revenue agents.
Regraded Unclassified
7
- 5 -
H.M.JR: I am not going to do it; I am going to make
sure Rosenman is with me. But I want a stiff letter drafted
telling this fellow I haven t the time. I understand from
Irey--I called him up yesterday--that he has a history, that
it is twenty-five years that we have done our own stuff,
but this idea that we should sit back on our oars and wait
until the FBI makes an investigation when they have served
notice that they are suspicious of this fellow--this comes
under you, you know.
MR. SULLIVAN: I beg your pardon; I haven't been handling
this.
H.M.JR: Well, this is Internal Revenue Intelligence;
it comes under you.
MR. SULLIVAN: Herbert has been handling the corres-
pondence and everything.
H.M.JR: Why doesn't it come under John?
MR. D. W. BELL: Intelligence doesn't come under
Internal Revenue.
MR. GASTON: It is one of those things that we thought
affected all the agencies.
H.M.JR: I know you handled it, and what's-his-name--
anyway, I still say it is Nunan. A man in Internal Revenue
has been found crooked. We are served notice that this
fellow from the FBI is looking into it, and instead of
rushing in and getting there first, we let the other people
get there first.
Are you handling this?
MR. GASTON: I have been handling this correspondence
with the Attorney General of this question of jurisdiction.
MR. O'CONNELL: The next case may involve somebody in
Procurement or Customs.
H.M.JR: There are two things: I would like to have
this letter, and I would like to have Gaston and Sullivan
and Connell--do you want to get in on this?
Regraded Unclassified
8
- 6⑉
MR. C. S. BELL: Yes, sir.
H.M.JR: Whose side are you on before I put you on?
MR. C. S. BELL: I am very much on your side.
H.M.JR: O.K., you are on the committee. (Laughter)
MR. C. S. BELL: I think they are, too.
MR. GASTON: Don't you think John and I should get hold
of McGranery? He hasn't seen anybody but Harold Graves and
Irey.
The Attorney General wrote a letter to you saying he
had assigned the matter to McGranery to discuss with us.
Don't you think we had better get hold of him and find out
just where we stand before we write this letter?
H.M.JR: We know where we stand. They made an arrest
of a Treasury man.
MR. GASTON: That isn't the first one. They made the
Kevil arrest before.
H.M.JR: Well, what is the sense of fooling around
with McGranery? Let's serve notice on the Attorney General.
MR. GASTON: We did that in the previous letter.
H.M.JR: Let's do it again.
MR. GASTON: We said we would continue to investigate
these cases, and we hoped they would cooperate.
H.M.JR: I want to serve notice on the Attorney General
to keep out of my Department, and I don't mean maybe!
MR, PAUL: Of course, if you are successful in that,
you don't need to have the other policy. That seems to be
the best policy, to serve notice and get an agreement of
jurisdiction. Then you don't need to have any rush to see
who gets there first.
9
- 7 -
MR. GASTON: As far as the law is concerned--
H.M.JR: Excuse me. I agree with you, but while this
thing is pending, we have to have the rush. But I am not
going to sit here and take it. I would like a letter
written, and then I would like to show the letter to Judge
Rosenman and get his advice, so if the thing is referred
by the President to Judge Rosenman, I have seen him first.
Now, from a practical standpoint--
MR. SULLIVAN: I think that is a practical standpoint.
H.M.JR: All right, then that is practical. Furthermore,
in this conversation I could go to Mr. Doughton, who I
hope is now Chairman of the Interdepartmental Committee on
Taxation. Is this his year to be Chairman?
MR. SULLIVAN: I think George's year is about to expire,
isn't it, Roy?
MR. BLOUGH: I don't keep up with that; Id on't know.
H.M.JR: I think it would be 8 good time to go to Mr.
Doughton and say, "Look, Bob, here we have this tough job;
here we have all this trouble; and here is the Attorney
General undermining Internal Revenue. Now, does the Committee
on Taxation want to stand this?" This is no time that the
Attorney General can have any additional trouble on the Hill.
I think Bob Doughton might very well tell the Attorney
General that he was very much outraged at reading about FBI--
why don't they go after the things they are supposed to do,
and that he wants him to lay off the Treasury Department.
And furthermore, "If you are going to get dirty on this
thing, we will get very dirty," and Bob Doughton may be
worried about the expenses of the Department of Justice.
Do they need five thousand men over at FBI? What are they
doing; what is their draft status?
He started a fight, now. He has pinched one of my
men, and I am not going to stand for it. And I am not going
to sit a round and argue about it with any McGranery, or
whoever it is.
Regraded Unclassified
10
- 8 -
MR. GASTON: He was formerly & member of the Ways
and Means Committee.
MR. SULLIVAN: Did you hear Herb's last comment?
H.M.JR: That doesn't make any difference.
MR. SULLIVAN: I think it is very important. Herb
reminded you that he was one of the most popular former
members of the Ways and Means Committee of the House.
MR. BLOUGH: he wasn't on it long.
H.M.JR: Listen, I don't know whether I will get any-
where with Bob, but I can find out if they want to fight.
I don't want to fight; I have too much to tend to. de is
acting like--well, this McGranery said between now and
election the Attorney General might be criticized if he
doesn't--what is he running for? I would expect Dewey
to act like this, but he wouldn't. He is acting as though
he were & Republican, opposition candidate for something.
I am not going to take it.
I want a good stiff letter written, and I am going
to show it. I am going to tell him, "I want you to lay off.
Stop being a busy-body. Stop sticking your nose in stuff
that doesn't concern you. I am too busy raising money,"
and this and that. "I haven't time to act with you as though
you were an opposition candidate."
MR. PAUL: Are there any other incipient cases where
arrest hasn't been made?
MR. GASTON: We don't know; they haven't told us of
any that they are investigating.
(The Secretary leaves the office temporarily.)
H.M.JR: Well, now, look, Herbert is chairman of this
committee. In twenty-four hours will you give me something?
MR. GASTON: Yes.
11
- 9 -
You say that we should not talk to McGranery? I
haven't talked to him yet. Did you sign that letter
which I wrote saying I would talk to McGranery?
H.M.JR: That, I don't know; I cen't remember.
MR. GASTON: The Attorney General wrote a letter saying
he had turned this over to McGranery, and, "Would you assign
somebody to talk to him?"
Then I wrote a letter to him saying I would talk to
him.
MR. O'CONNELL: As I recall it, you signed B. letter
saying Mr. Gaston would talk to him.
MR. GASTON: I would like to make one more effort to
find out whether McGranery can do anything.
H.M.JR: I am simply saying that you are chairman.
If Randolph wants to get in on this thing, he can get in
on it. I would like to have him get in on it, but please
give me something tomorrow morning, and I will read it.
If I like it, I am going to ask Sam whether he will see
you, Herbert, and show it to him before the letter goes
over. But I am not going to stand here and let the Depart-
ment of Justice make a pinch on 8. Treasury man. I em not
going to take it. ^here is no telling what this fellow
will do next.
It 80 happens--and that is why I wanted to send for
Hoover that I have helped J. Edgar Hoover on a number
of occasions where he couldn't get from Biddle what he wanted.
J. Edgar happens to feel very kindly disposed towards me.
MR. WHITE: Do you attribute this to Biddle and not
Hoover?
H.M.JR: The enforcement people think it is Hoover.
I personally think it is Biddle.
MR. GASTON: I don't think so.
12
- 10 -
H.M.JR: I do.
MR. GASTON: We have information through underground
channels that Hoover has definite plans, even to the extent
of assigning the means and charts of organizations by which
he is going to take over the investigative work of other
investigative agencies of the Government.
MR. WHITE: And this would be public evidence that
he can do something that the Treasury cannot do. no has
found the Treasury breaking the law, whereas the Treasury's
own Secret Service has not been able to do SO. I think,
not from this episode alone, but from everything I have
heard, this is unquestionably not Biddle. Biddle isn't
looking for any fights from you.
H.M.JR: You are wrong. Look at how he agreed with
me on how we would deal on alien property with Crowley.
He gave me his word and went back completely on it, had
an Executive Order drawn up which three months later I
got the President to change, completely broke his word.
The man for some reason or other has it in for me, and has
shown every evidence of it.
MR. GASTON: It is both Hoover and Biddle.
H.M.JR: And I happen to be the man who called up
Biddle and told him he was going to be Attorney General.
He said, "Are you sure? This is the first I have heard
about it.
I. said, "Yes, I am sure." And I worked to get it for
him. I haven't time. I am sorry I have taken half an
hour of time. We have so much important stuff to do, but
I have to look after my own Department, and I can't let
them make & pinch. I don't care who it is. I am going to
deal with Biddle.
I am going to hit him on the nose
and make it bloody.
MR. GASTON: Maybe it would be all right for you to
see Hoover. What do you think about it?
H.M.JR: Not now that they have made the pinch. Before
that I wanted to see him. Now that they have made the pinch
I am going to write this.
Regraded Unclassified
13
- 11 -
MR. GASTON: This is the second one.
H.M.JR: I didn't even know it. But write a letter
and have it for me tomorrow, will you, gentlemen, please?
MR. PAUL: I think you should ask them whether they
have any other cases where the arrest hasn't been made.
MR. O'CONNELL: They won't tell you.
H.M.JR: Let's get out of this attitude that we are
scared of the Department of Justice and all the rest. If
Biddle envisages himself as the OGPU, this country doesn't
want 8 one-man investigating Federal body, and Biddle can't
take on any fight with Congress now. He is right up to
here, and the War Department tells me he handled this thing
terribly out there. So he is in no position, and this is &
good time to defend the honor of the Treasury. We will never
have a better time.
I don't want to be dirty; I don t want to make trouble
for Biddle or do what he did to me, because the President
has enough trouble without two Cabinet Members fighting
over who is going to arrest a crooked Treasury agent. I
don't want it to get into the press, but just tell this
fellow, "Now, you lay off me." But I want to make sure
I have Judge Rosenman with me before I start. I want
to see the Judge before I commit the crime! Is that good
sense?
MR. SULLIVAN: I am for it.
H.M. JR: Because if it is a fight, I don't want the
fight referred to Byrnes, because I know how he would side.
I want to pick my judge and see the judge first. If the
judge says, "O.K., hit him," then I am going to hit him.
All right, I am exhausted. Herbert, do you have any-
thing else?
MR. GASTON: No, I haven't anything else.
H.M.JR: I just want to let you know I have some
Washington sunshine invigorating me.
Regraded Unclassified
14
- 12 -
MR. SULLIVAN: We give Vivien Kellems until today
to clear up thirty-three thousand dollars in taxes for
1943. She telephoned on April 27 and said there was 8
check for twenty-five thousand in the mail. That leaves
a balance of about eight thousand. Collector Johnson
thinks we should give her until the first of June to pay
the other eight. Fred and I agree.
H.M.JR: All right, softies!
MR. SULLIVAN: George Haas, Tickton, and I talked
about getting some reports on salary stabilization; the
question is how long the cases have been pending. Burford
tells me that their men are abandoning all work for three
or four days to get that information, and query whether
you want to further hold things up.
H.M.JR: Yes, sir.
MR. SULLIVAN: O.K. That is all, sir.
H.M.JR: I was talking on the phone to Cliff Mack.
I have a long complicated thing on the protocol for
Russians which evidently is two or three months late. I
sent it over to him. They wouldn't take time to ell
what is for us, and 80 forth, anyway. While I was on the
phone he said, "Illinois needs very badly fifty automobiles."
He sent me a memorandum. I said not to wait, Go ahead and
let them have it, twenty-five for sanitation, and twenty-
five for the police or something.
MR. SULLIVAN: I agree.
H.M.JR: So I told him to go ahead. Is that all right?
MR. SULLIVAN: Good. Certainly.
H.M.JR: Another important decision made.
MR. SULLIVAN: You know, Olrich gets here Wednesday.
15
- 13 -
H.M.JR: Yes, as soon as he comes, if you will trot
him in here - and I don't know where you (C.S.Beil) were
the other day - yes, I do, too. I told Bell to get in
on the thing to make sure it is a nice place. And what
the new administrative setup is going to be, he is work-
ing on it, and I am sure by now has a complete plan.
MR. SULLIVAN: You want to wait and talk with
Olrich, himself, but I think he will probably want an
office here and over there.
H.M.JR: I personally think he should be in the
factory.
MR. SULLIVAN: I do, too, but I think he might have
a place here.
H.M.JR: I don't think these two offices work so
well. I didn't with War bonds - it didn't with Graves.
If you don't mind, I wouldn't even offer it to him.
MR. SULLIVAN: Well, I think if I were doing it I
would prefer to be over there.
H.M.JR: he ought to be over there with his coat
off and nis sleeves roiled up. he has got no business
over here. I want him over there - unless you disagree.
MR. C.S. BELL: No, sir. I think he should be down
there. He is going to have quite a staff, apparently.
As John says, we want to kind of wait until we see him
and talk it over.
H.M.JR: But I wouldn't suggest it to him. If he
says, "I want an office with the Secretary," all right.
If you don't mind, I wouldn't suggest it. I mean,
Gamble found it didn't work. If he asks for it, it is
another thing.
MR. SMITH: Nothing.
Regraded Unclassified
16
- 14 -
H.M.JR: I just want you people to know that some-
time this week Fred is going to be entertaining Mr. Orson
Welles, and it is up to the rest of the nine-thirty group
to look after Mrs. Orson Welles!
Mr. SMITH: I am going to get there first.
H. JR: You can't be so busy!
MR. SMITH: Well, you have to get the sweet with
the bitter.
H.M.JR: I have been unable to find out when they
are arriving.
MR. BLOUGH: Call & special meeting.
H.M.JR: Got a new dining-room downstairs.
MR. SMITH: Yes, that is right.
H.M.JR: We will hear the girls swoon outside.
MR. GASTON: She was somebody--
MR. SMITH: She is still somebody! Rita Hayworth.
MR. GASTON: She was the one with the curl that
hung down over her forehead.
MR. O'CONNELL: It may be a poor time to mention
cooperating with the Department of Justice.
MR. SULLIVAN: What do you mean, "may be"?
MR. O'CONNELL: But in connection with the Ward
case in court, one of the issues will probably be whether
or not this is a simple retail organization that has noth-
ing to do with the war effort. We dug into it down in Pro-
curement and found we had over a million dollars' worth
of contracts with Montgomery Ward in connection with
Lend-Lease or relief purchases, and we may have some with
some of their subsidiaries.
Regraded Unclassified
17
- 15 -
We have made that information available to the
Department of Justice and it may be helpful to them in
taking the action.
H.M.JR: I don't know - I am just repeating myself -
but personally, after you fellows have thought it over
and you bring it to me tomorrow, and after you see Judge
Rosenman, I think this fellow should be hit on the nose
until it is bloody. He has asked for it. I dealt with
Tom Dewey in New York City, as I say.
When we had cases the fellow cooperated and didn't
seek to put us in a bad position, and we worked like two
law-enforcement agencies who were interested in accom-
plishing putting people in jail, not like a publicity-
seeking stuffed shirt.
MR. WHITE: I think there is general agreement there.
The disagreement lies in the fact that you are hitting
the wrong nose.
H.M.JR: I don't think so. Well, we will get two
noses. Anyway, let's see how we goalong. And you might
be thinking about the cases when you had to push on the
tax question, all of you - I mean, the John L. Lewis
case, and the Hamilton Fish case, and a hundred other
cases where we have had to push them in order to get stuff,
so I can say, "Why don't you tend to the Treasury business?"
MR. PAUL: That, of course, is Biddle's part.
H.M.JR: I mean, where he is dragging his feet.
MR. PAUL: It isn't Hoover's.
H.M.JR: Let's deal with Biddie. I am yet to be
convinced this isn't Biddle. Biddle can't run his own
Department - let's find out.
MR. PAUL: Jackson admitted to me he couldn't
before Biddie came in.
Regraded Unclassified
19
- 16 -
H.M.JR: Let's hit Biddle first. I am personally
not worried about Hoover. I have first got to hit
Biddle.
MR. O'CONNELL: I had a report to you on Saturday in
connection with that employee in Internal Revenue that
you sent me a memo on. I spoke to Herb about it just
before the meeting. He suggested a slight change in
the form of letter I have for you. If you don't mind,
I will send it in to you.
H.M.JR: That has been too long coming to me.
MR. O'CONNELL: well, I gathered that you thought
that from the memorandum you sent me. No doubt about
that.
H.M.JR: A couple of weeks, isn't it?
MR. O'CONNELL: I think so, yes. When you gave it
to me you asked me to go over it myself, which I did.
But I didn't think it was of such urgency that I should
put other things aside.
H.M.JR: It was of particular interest to me with
this fellow McQuillan. It was one of McQuillan's-
MR. O'CONNELL: The file I first had didn't disclose
it, but Mr. McQuillan had examined the situation and came
to the conclusion a year or so ago that there were not
sufficient facts in the record to persuade him anything
should be done about it. In fact, the Department decided
after very intensive examination, about a year ago, there
was no basis for taking any action against the employee.
This is a re-hash of the same situation. I think the
Department decision was right. That is what this memo-
randum says.
H.M.JR: I see. Well, anything else?
MR. O'CONNELL: That is all.
Regraded Unclassified
19
- 17 -
MR. HAAS: I have nothing this morning.
H.M.JR: Yes, you have. What about the sewers, and
80 forth?
MR. HAAS: Oh, that is going to take a little time.
In this particular case that you found out about, they
don't know anything in washington.
H.M.JR: Georgie, you mustn't say that. ... are
right on the eve of an Election!
MR. HAAS: They said that maybe their field office
would have. What I have done is this - they were sort
of polite to us, but have given us a run-around. I have
asked them to give us all the statistics of all these
grants by States, and after I have that, I will be able
to pick out suspicious ones and ask for the file on
those cases. That will save us from going through maybe
seven thousand cases. And that letter went out the same
date. Charlie Bell signed it as your "dministrative
Assistant. We also asked for the file on the Bristol
case.
H.M.JR: Is there a Bristol case?
MR. HAAS: They don't know anything about it. It
may take a couple of weeks before I get it from the field.
MR. SULLIVAN: George, I think there is somebody
over there that knows 8 little bit more about it, now,
because I had B. cail from a mayor in New Hampshire
asking me if I would get in touch with 8. certain office
over there and ask them to expedite their consideration
of a street-widening project. So there is one office
over there that passes approval on these things.
MR. HAAS: Oh, yes, the man's name is Eaton.
MR. SULLIVAN: I did not call up.
Regraded Unclassified
20
- 18 -
MR. O'CONNELL: On that same point, at church
yesterday morning it was announced from the aitar that
they had just obtained a priority with WPE approval to
get materials to put an addition to the school. I have
an idea there are, throughout the country, a number of
entirely reasonable projects to be carried on even in
wartime, and a sewer might be one.
The basis for the addition to the school was that
there just were not in existence sufficient facilities
to teach the children, and WPB, on that basis, evidently
did grant the priority.
H.M.JR: I just want the facts.
Randolph, we found some four hundred million dollars
being allocated to municipalities for projects. I want
to know, are they necessary.
MR. PAUL: Is this information of yours hearsay?
MR. O'CONNELL: I was in church.
H.M.JR: Randolph is good!
MR. SULLIVAN: Not only in church, but awake!
H.M.JR: Was he? Keep after it, George.
Randolph, I see by the papers you think taxes are
still going to be high when the war is over.
MR. PAUL: I think that is a safe statement.
H.M.JR: I think it is perfectly safe.
MR. PAUL: I think it is a good thing, however, to
pound people with the idea that the end of the war isn't
going to be the end of paying taxes.
H.M.JR: What are you going to be able to report?
Regraded Unclassified
21
- 19 -
MR. PAUL: I have a report in my pocket, but I
wanted to do something more with it, particularly from
the standpoint--
H.M.JR: Which pocket?
MR. PAUL: (Indicating) Trying to call my bluff.
H.M.JR: You were asking him whether he was in church!
MR. PAUL: Yes, but we both stood up.
But I understand - I have talked with Roy since I
have seen you - I understand you had some other angles
to it from the standpoint of technique and strategy.
H.M.JR: If you are not busy at twelve-thirty, do
you want to have lunch with me?
MR. PAUL: All right. I can change the lunch I have.
Fine.
H.M.JR: Would you? Is it convenient?
MR. PAUL: Yes, I will change the other lunch.
H.M.JR: Fine. I want to talk to you a little bit.
MR. PAUL: All right.
MR. BLOUGH: I don't think this will tax your brain,
but you may want to know that Smith has arranged for
us to go to Young and Rubicam tomorrow afternoon to use
their facilities in preparing income tax--
H.M.JR: This will or will not tax my brain?
MR. BLOUGH: This will not. You had had some taxing
subjects here this morning, and I thought this was not
too important but you should know about it.
H.M.JR: This is in a lighter vein?
Regraded Unclassified
22
- 20 -
MR. BLOUGH: Yes, that is it. No commitments have
been made on any side, but Fred thinks that Young and
Rubicam may be willing to do the work on a non-profit
expense basis.
H.M.JR: They wouldn't do that in the days that
Smith was there. Maybe they have changed.
MR. SMITH: Smith wasn't outside with a blackjack
then!
MR. BLOUGH: We thought we would go up and see what
sort of 8 job they thought it would be, and how much
would be involved.
H.M.JR: That is what Orson Welles is going to do?
MR. SMITH: Yes, he is going to make a tax form that
is 8. tax form.
MR. BLOUGH: Yes. You have heard of the tax form
of the so-called Dr. Rockwell on the Fred Allen show?
He says his tax form is this, that everybody has to
guess what his income is going to be, so you guess what
your income is going to be, and you guess how much you
ought to pay this time, and then you just send the
return in without your name on it and let the Government
guess who it is!
H.M.JR: That is wonderful. You are in good humor
today, too. All my tax people are full of fresh air.
MR. D.W. BELL: I understand Harpo Marx has a new
book out on taxes; it is a scream.
H.M.JR: Harry, do you have something in a lighter
vein?
MR. WHITE: Bill Taylor will leave this week.
H.M.JR: You got my memo?
Regraded Unclassified
23
- 21 -
MR. WHITE: Yes. Nothing else.
H.M.JR: Nothing from the various fronts?
MR. WHITE: No, I haven't heard 8. thing.
H.M.JR: Do you want me to call up Chungking?
MR. WHITE: I think not.
H.M.JR: What is the capital of Siberia? Shall
I give them 8 ring?
MR. WHITE: I think Toboisk.
H.M.JR: Dan?
MR. D.W. BELL: You gave me this letter to Cochran
and said you wanted to talk to Charlie Bell and me about
it Saturday. I guess you forgot it. This letter is
all right. It just acknowledges his and says we will
look into it.
It is really a complicated situation down there.
The whole wage scale in the Bureau is & mess, due to
various acts. The plate printers get a good deal more
than the Superintendent of the Division, and the foremen
come below them. Of course, now the foreman's job
isn't worth a lot; it is sort of an honorary thing. A
fellow with a bad heart, or one leg, or one arm - he
gets the job.
H.M. JR: I will have to look into it.
MR. D.W. BELL: They think they ought to have much
more pay, and we could do away with them altogether
except for the union. You can't do away with them be-
cause of the union. But I think we might write a com-
plete letter.
H.M.JR: You don't need foremen or heads of
departments?
Regraded Unclassified
24
- 22 -
MR. D.W. BELL: I wouldn't go that far. I wouldn't
go beyond the foremen!
H.M.JR: O.K. (The Secretary signs letter to
Mr. Cochran)
MRS. KLOTZ: As long as we have waited so long, if
you are going to write them a full letter--
MR. C.S. BELL: It is going to take two or three
days to get all of the material.
H.M.JR: I think this should go out.
MR. D.W. BELL: He has raised a question there about
Treasury people, and about Mr. Hall being on this Wage
Board.
1.M.JR: what else do you have, Dan?
MR. D.W. BELL: We got all but nineteen million
dollars of the billion, six hundred million certificates.
It is about the best we have done.
MR. C.S. BELL: we are going ahead with the health
survey down in the Bureau of Engraving and Printing, see-
ing if we can hold down some of the absenteeism. We
have it as high as twenty-five percent on Mondays. That
tapers off until Saturday, about seventeen percent.
H.M.JR: Did you see the study Mr. Swope made of
that when he was here?
MR. C.S. BELL: No, sir. We had the Census man
over. He has made a similar study of the Bureau of
the Census. Al Hall, and Mrs. Doyle, and Public Health
doctors--
H.M.JR: Find out about the study that Gerard made.
MR. C.S. BELL: We have about four deferments 8.
little later.
Regraded Unclassified
25
- 23 -
MR. D.W. BELL: They are getting too much money.
H.M.JR: Anybody else want to see me? Anybody want
to ride out with me to Secretary Knox's funeral? I will
be leaving here about twenty minutes past one. Does
anybody want to go?
MR. SULLIVAN: The funeral is at two.
H.M.JR: That is time enough, isn't it? I am picking
up Mrs. Morgenthau at twenty minutes of. Does anybody
want to go?
MR. SULLIVAN: we are going from the house.
Mr. D.W. BELL: I didn't think I would go. I thought
you and John would want to go.
H.M.JR: Well, if anybody wants to go--
MR. SULLIVAN: I want a car just to take me out to
the house.
H.M.JR: I imagine it will be most of the afternoon,
won't it?
MR. SULLIVAN: It sounds like a pretty long affair.
H.M.JR: Were you there at his side?
MR. SULLIVAN: They sent for me about half past
nine and I was there until about quarter past twelve.
Then we decided that I would come down town and get &
bit to eat and come back. Then Major Dillon could come
down. He died. I was lunching with Joe. He died at
a little after one o'clock. I had been there up until
about three quarters of an hour before he died.
H.M.JR: Must have taken a sudden turn for the worse.
MR. SULLIVAN: He did that at midnight, sir. They
called at around twelve, Thursday night.
26
- 24 -
H.M.JR: Do you mean Thursday night?
MR. SULLIVAN: Yes, I do. There never was a chance -
not the slightest.
H.M.JR: Well, it is a great loss.
MR. SULLIVAN: There were quite a few of his New
Hampshire associates down there. I am sort of taking
care of them.
H.M.JR: All right.
MR. BLOUGH: Is it all right for me to be in New
York tomorrow for this Young and Rubicam matter?
H.M.JR: What are you going to do?
MR. BLOUGH: Take up the problem of tax returns -
to get a popular tax return. But I don't have to go if
you expect to take up tax matters tomorrow.
Regraded Unclassified
27
May 1, 1944
10:25 a.m.
DEFERMENTS
Present: Mr. Gaston
Mr. C. S. Bell
Mrs. Klotz
H.M.JR: Swoboda. Is this the fellow in Physical
Culture?
MR. BELL: No, sir. He is in the Bureau as a plate
printer. Fifty-five hundred is his salary. He is thirty-
two.
H.M.JR: The only one I question is Stephens in the
Procurement Division.
MR. BELL: He was Cliff's leading man out on the
Pacific.
H.M.JR: My God, he has more leading men! Now where
is he?
MR. BELL: He is still out there.
H.M.JR: He is thirty-five.
(The Secretary signs deferment request, attached.)
H.M.JR: Do you have any more?
MR. BELL: That is the crop.
H.M.JR: Herbert, I am glad you are back. I missed
you.
MR. GASTON: I didn't expect to be back until you
called me up this morning.
Regraded Unclassified
28
- 2 -
H.M.JR: Weren't you back?
MR. GASTON: No, I didn't expect to be back until
Wednesday morning.
MRS. KLOTZ: That is a shame.
H.M.JR: I diagree with you. Gaston was carrying
this thing, and I wanted him back.
Regraded Unclassified
29
DEFERMENTS
April 28, 1944.
Name
Title
Age
No. of Children
ENGRAVING AND PRINTING
Swoboda, Frederick H.
Plate Printer
32
None
(Key List)
PROCUREMENT DIVISION
Stephens, Thomas c.
Regional Director
35
1
(Key List)
MINT BUREAU
Matheron, Maurice J.
Operator of Sweeps Cellar 35
1
(Not on Key List)
Foreman, Refinery Cellroom 31
1
Mahoney, Bertram J.
(Key List)
The Agency Committee recommends that the above 4 employees be deferred.
pl Charles & Bell
Acting Chairman
Joseph a.Jondan
Approved: may 1, 1944
p/ H. Mongenthan, g.
Secretary of the Treasury.
Regraded Unclassified
30
May 1, 1944
11:00 a.m.
JEWISH EVACUATION
Present: Mr. Pehie
Mr. DuBois
H.M.JR: Now, I have read this document and, quite
frankly, I don't understand the construction of it at ail.
Is it a memorandum to the President from you; is it 8.
memorandum from the Board; or a memorandum from you to
the Board? (Refers to attached Memorandum for the President)
MR. PEHLE: It is a memorandum from the Board to the
President.
H.M.JR: That is no way to write a memorandum.
MR. PEHLE: What is troubling you?
H.M.JR: I mean, it reads like a memorandum from
Pehie to the President. If that is what you want--
MR. PEHLE: That is not what I want.
H.M.JR: In the first place - this is 8. little thing -
on Page 2 it says, "...take the Jewish refugees in Spain
to a small camp' - I would name the camp, because the
President knows about the camp. what is it called?
MR. PEHLE: Camp Lyautey, near Fidhala.
H.M.JR: He keeps thinking - he created it. That
will register, won't it? It is near Casablanca, isn't it?
MR. PEHLE: That is right.
31
- 2 -
H.M.JR: Then, "John W. Penie has strongly recom-
mended that this Government act at once" - that is the
part I don't get.
MR. DuBOIS: The reason for that, Mr. Secretary,
is that if the Board Members agree to present this to
the President - but the Board Members, as such, probably
won't be prepared - at least Stimson - to sign a state-
ment on which it says that the Board has strongly recom-
mended. This is something that the Executive Director
has recommended to the Board, and the Board has agreed
to pass on to the President.
H.M.JR: You don't say that.
MR. PEHLE: Well, we can. It wasn't intended to--
MR. DuBOIS: We can just say, "It has been proposed,"
if that is necessary. But it seems to me that the
Executive Director has worked with this for four months
and for him to "strongly recommend this step be taken" is--
H.M.JR: It is 8. most peculiar document.
If you want to say that the Board is forwarding
this at the direction--
MR. PEHLE: At the what?
H.M.JR: At the request, or some word - the Board
is forwarding this at the request of. In the first place,
it is too long and the President will never read it.
MR. PEHLE: All right. We have another alternative,
that this would be a covering memo. (Hands the Secretary
a one-page memorandum to the President, attached)
It would transmit a memorandum comparable to this
with a few small changes.
H.M.JR: Let me read it. This is a much better form
of transmittal.
Regraded Unclassified
32
- 3 -
MR. DuBOIS: Just transmit attached memorandum.
H.M.JR: This makes sense.
MR. PEHLE: All right. I think I see your point on
Page 2. We will re-cast that.
H.M.JR: As far as I am concerned, I don't mind
that John Pehle is doing this. It is all right with me,
but I don't think it would set very well with the other
people.
MR. PEHLE: Our only point, 1 assume that you appre-
ciate, is to make it as strong as we can make it. That
is all. But we will re-cast it so it sounds better.
MR. DuBOIS: We can put stronger words in Pehie's
mouth than we can put in the mouths of Members of the
Board.
H.M.JR: I don't think you are doing Pehle any good.
MR. PEHLE: All right. We will re-cast that.
H.M.JR: Now, this last page - "Decision of the Board"--
MR. DuBOIS: That will come off.
MR. PEHLE: The whole last page will come off, in
view of--
H.M.JR: Why did you hold out on that?
MR. PEHLE: Only because this is the way we presented
it to Stimson. Then we were worried about the fact the
document was so long. This is an alternative way to do
it. The change in Page 6 is moved up to that short memo-
randum.
H.M.JR: Yes, but there are several things here that
hit me wrong.
Regraded Unclassified
33
- 4 -
MR. PEHLE: I think the answer probably is that this
is a document which has been changed 8. number of times,
and therefore there are some inconsistencies in it. But
I think the covering sheet will probably remove that.
It isn't intended to be anything other than & straight
memorandum from the Board to the President.
H.M.JR: What is the next move?
MR. PEHLE: To get Mr. Hull to sign it. Mr. Stimson
is ready to sign it. It is a long document for Mr. Hull
to go over. The only difficulty is whether Stimson's
doubts will create more doubts in Hull's mind. It has
been cleared with Stimson, and it has now been cleared
with you. If we can get Hull to sign it without having
it re-discussed at a Board Meeting, there is added
advantage.
MR. DuBOIS: There is a second disadvantage; if you
send it to Hull he will undoubtedly, my guess would be,
refer it to Berle to review.
H.M.JR: Then what?
MR. PEHLE: Youdon't know Berle's reaction. You
never can tell about him. Stettinius talked to him be-
fore he went away and he was all right.
H.M.JR: He will be back in a couple of days.
MR. PEHLE: If it is going to be a short time--
MR. DuBOIS: Well, if you can wait four or five
days--
H.M.JR: You can find out when he will come back.
Will Stimson sign this?
MR. PEHLE: Yes, he will. He didn't want to sign
it until he knew whether - he is ready to sign.
Regraded Unclassified
34
- 5 -
H.M.JR: I think it is a mistake for me to sign
first.
MR. PEHLE: I don't think you should, either.
H.M.JR: Do you want to go over and see if you can
see him?
MR. PEHLE: I don't think I should go over there
without you. I will. It is just the strength of it,
that is all.
MR. DuBOIS: The only thing is, Mr. Secretary, this
is obviously an awfully big move.
H.M.JR: I don't want to go over and see the man
alone, and go around it this way. I want the whole Board.
MR. DuBOIS: The only difference is, if you went over
with Mr. Pehie you might get Hull to sign - much more
likely to get Hull to sign, I would think, than if John
went over alone.
H.M.JR: It is such & peculiar way to do the thing.
MR. DuBOIS: Why?
H.M.JR: You have got one person in a corner and
another person in a corner.
MR. PEHLE: It has been discussed at a Board Meeting
and agreed to put up to the President--
H.M.JR: Then why make me go over there?
MR. PEHLE: "e can send it over, or I can take it
over. It isn't a question of making you go over, Mr.
Secretary, as you know.
H.M.JR: You can't make me go over.
MR. PEHLE: No, obviously, but--
Regraded Unclassified
35
- 6 -
MR. DuBOIS: Well, it all depends, Mr. Secretary,
it seems to me - this whole issue depends on whether or
not you are behind this enough to really fight for it.
I have the feeling that you are probably not.
H.M.JR: That is correct.
MR. DuBOIS: Now, my own feeling is the thing doesn't
have a chance as long as you feel that way about it, to
be very frank with you. I think it is fair to say that
we feel that this thing is not only important from the
refugee standpoint, it is the most important step that
you could take in the refugee field, but I think it is
also an important step from many points of view.
H.M.JR: I don't see it.
MR. DuBOIS: From the psychological warfare point of
view, and everything else. I don't think - we just found
a couple of days ago that the AF of L passed a resolution -
last September, wasn't it?
MR. PEHLE: That is right.
MR. DuBOIS: ...recommending this very same thing,
in substance. Many organizations have written in to us.
H.M.JR: I don't want to be in the position of
jockeying. I am perfectly willing to go.
MR. PEHLE: we are not trying to jockey.
H.M.JR: Get Stimson off by himself, and then get
me.
MR. PEHLE: No, Stimson's objections have been
stated in full in here. He says this is a very fair
document. It is very difficult. The only reason about
a Board Meeting is it is very difficult to get the three
top Cabinet people together, these days.
H.M.JR: I know it.
Regraded Unclassified
36
- 7 -
MR. PEHLE: Maybe the best thing to do is to let
Stettinius clear it through State.
H.M.JR: You don't think you can do it by going
alone?
MR. PEHLE: Well, that is a matter of judgment,
Mr. Secretary. I doubt it. I think it is a long docu-
ment, and he is a tired man, and I don't think he would
sign it.
H.M.JR: Well, why don't you find out when Mr.
Stettinius is going to be back? It can't be many days.
And the President isn't back, anyway, and won't be back
for a few days. ne would never act on this thing where
he is now.
MR. PEHLE: Oh, I wouldn't send it to him.
H.M.JR: Well, you are not losing any time.
MR. PEHLE: All right. But if you have doubts about
this thing, I would like to know what they are.
H.M.JR: No, I just don't want to be out on the front
on it.
MR. DuBOIS: Is it, Mr. Secretary, that you are not
sold on the wisdom of this from the refugee standpoint,
that you feel it isn't the time to do it?
H.M.JR: No, I just don't think you can get it
through Congress.
MR. PEHLE: What we are shooting for is not to go
through Congress.
H.M.JR: Well, the President shouldn't do it, then.
He shouldn't get Congress down on him. After hearing what
you--
37
- 8 -
MR. PEHLE: That is what Stimson says. Do you agree
with Stimson? He says that the President shouldn't do
it without Congressional approval.
H.M.JR: I have told you that right along.
MR. PEHLE: I didn't understand that.
MR. DuBOIS: I didn't understand that.
H.M.JR: I have said that right along. What was the
purpose of the whole idea? He said you could get approval?
MR. PEHLE: No, what I saw McCormack about was how
Congress would react if the President did it.
H.M.JR: Oh, I don't think the President should do
it without Congressional--
MR. DuBOIS: I have always thought strongly you
should do it without going to Congress.
H.M.JR: Well, I don't.
MR. PEHLE: Then, frankly, Mr. Secretary, I don't
think it represents 8. fair statement of your views. If
you feel that way - I disagree strongly with that, myself.
H.M.JR: That is your privilege.
MR. PEHLE: The more I have been with this issue, and
the more there has been publicity on it, the more support
we have gotten. We haven't gotten any blasts.
H.M.JR: I still say I don't think the President
should take this on. You certainly should consult the
leaders.
MR. PEHLE: Oh, that is something else.
Regraded Unclassified
38
- 9 -
H.M.JR: That is the first step. I know what they
will say. They will tell them not to do it.
MR. PEHLE: Well, I suppose it depends on how he
puts it up to them, to some extent.
H.M.JR: But I certainly think they should be con-
sulted. I certainly don't think--
MR. PEHLE: Now, which is it? Is it you don't
think he ought to do it by Executive Order, even after
consulting the leaders?
H.M.JR: No, I think that this is something that
Congress should be consulted upon. It is my opinion.
He may differ.
MR. PEHLE: Well, I think that takes more thinking
on our part at this point. I think we have to recanvass
it now.
H.M.JR: Well, supposing you recanvass it, because
I think, from all the evidence of Congress, that if he
did this thing, that they could get & resolution through
countermanding any Executive Order.
MR. DuBOIS: I don't believe it.
MR. PEHLE: Not today, in view of the Elections.
H.M.JR: When they attacked these people like
Walter Winchell, and so forth, there wasn't one man got
up.
Well, supposing you people have another look at it.
I am glad - well, it is the first talk we have had.
I would like to keep this. (Referring to memorandum
to the President)
I don't think this is something that the President
Regraded Unclassified
39
- 10 -
should do by Executive Order. You say that is Stimson's
view?
MR. PEHLE: Sure it is Stimson's view. It is stated
in there in his words. It is the Attorney General's view.
MR. DuBOIS: He says the President can do it by
Executive Order, but it would be unwise for him.
H.M.JR: I must have read it too quickly.
MR. PEHLE: The Attorney General's views and Stimson's
views are in there.
H.M.JR: That is fine. We will have another talk.
Regraded Unclassified
40
Prift
MEMORANDUM FOR THE PRESIDENT
Attached is 8. memorandum discussing the proposal that this
Government provide temporary havens of refuge in this country for
oppressed peoples escaping from Hitler - these people to be placed
in camps established in this country and to remain there until the
termination of the war at which time they will be returned to their
homelands.
Under this proposal the refugees would be brought into the
country outside the regular immigration procedure just as civilian
internees of Latin American countries have been brought here and
placed in internment camps. There could be no objection on security
grounds any more than in the case of prisoners of war.
The overwhelming humanitarian reasons for taking this action,
and the considerations involved in deciding whether this step should
be taken now by Executive action or submitted to Congress, are
discussed in the memorandum.
The Board has decided that, in view of the importance and
urgency of this question and the great responsibility involved in
reaching a final determination as to what should be done, the whole
matter should be submitted to you for your consideration.
Among the possible courses of action which you will of course
want to consider are:
(1) Putting the program into effect at once by Executive
action.
(2) Consultation with appropriate members of Congress with
a view to Executive action.
(3) Presidential message submitting the matter to Congress
for urgent action.
(4) Having a bill first introduced in Congress, followed
by a Presidential message urging its immediate enactment.
Secretary of State.
Secretary of the Treasury.
Secretary of War.
Attachment.
Regraded Unclassified
MEMORANDUM FOR THE PRESIDENT
In the Executive Order creating the War Refugee Board you
directed that the Board make appropriate recommendations to you
to overcome any difficulties encountered in the resoue and relief
of war refugees.
Although the Board has already initiated many measures which,
if fully implemented, may result in saving many lives, there is
one basic obstacle which lies athwart all our efforts. This is
the simple fact that the United Nations have not been prepared to
supply even temporary havens of refuge for substantial numbers of
the persecuted peoples of Europe, particularly the Jews.
Why This Is The Main Obstacle
The following brief summary will reveal why this constitutes
the basic weakness in our whole program.
(1) Our best chance of saving many people from death, particu-
larly after recent events in the Balkans, lies in an effort to con-
vince the Hitlerite forces, and more particularly their functionaries
and subordinates, that it is in their interest to spare the lives
of these people. In this connection, the statement issued by you
on March 24, which is being given the widest possible publicity in
German controlled territory, will of course be most helpful toward
this end, especially if followed by concrete action.
(2) And there is also an opportunity to actually bring some
of these people out of enemy territory. The recent developments
in the Balkans may limit opportunities there, but there still remains
8. possibility of stimulating the flow of refugees to Spain and
Switzerland.
(3) It is essential to both of these avenues of approach,
however, that we and our allies convince the world of our sincerity
and our willingness to bear our share of the burden. Thus, great
substance would be added to our threats, and other countries would
be much more ready to cooperate in aiding the escape of refugees,
if we made it clear now by action that our doors are open to these
people.
(4) The United Nations must not merely threaten our enemies
and ask them to stop killing Jews; the United Nations must themselves
offer the Jews a haven. Only in that way can the great moral issue
involved be made clear.
Such a step would show the Germans clearly that our
threats of punishment and promises of action are not mere words.
It is even possible that after such an announcement the Germans
might be prepared to release or permit the escape of these
persecuted peoples.
Regraded Unclassified
- 2 -
42
(5) And such a step would certainly cause the neutral
countries to encourage the entry of more refugees into their
territory since they would then know that they would not be
required to keep all refugees until the war ends. Thus, one
of the reasons why we are not meeting with any success in Spain
is the fact that the Spaniards are not convinced that we will
take the refugees off their hands. Although we have been stating
for a long while that we are going to take the Jewish refugees
in Spain to a small camp in North Africa, none have been moved
there to date. This has been due primarily to the reluctant
attitude of the French. And the inarticulate major premise of
the French attitude undoubtedly is the conviction that such
refugees are to be dumped and left in French Africa and that
neither the United States nor Great Britain will receive them.
Proposed Solution
John W. Pehle has strongly recommended that this Government
act at once in this humanitarian cause and announce to the world
that we will provide temporary havens of refuge in this country
for all oppressed peoples escaping from Hitler - these people to
be placed in camps established in this country and to remain there
until the termination of the war at which time they will be returned
to their homelands.
Nature and Benefits of Proposal
(1) Under this proposal the refugees would be treated in
effect as prisoners of war. They would be brought into the country
outside the regular immigration procedure just as civilian internees
from Latin American countries have been brought here and placed in
internment camps. No violation or attempt to evade immigration
laws would be involved since the refugees would remain only until
the termination of the war and would not come in under the quota
system. There could be no objection on security grounds any more
than in the case of prisoners of war.
(2) The principal United Nations involved have already agreed
that each of them will receive after the war its nationals who
have fled for their lives and have been given asylum in other
countries. These nations have also agreed that it is 8 part of
their settled policy to assure such conditions in enemy and enemy
occupied countries as will permit the return thereto of all persons
displaced therefrom who have sought refuge elsewhere. This agree-
ment, already concurred in by the United States, Great Britain,
the Soviet Union, Luxembourg, Yugoslavia, Norway, The French Committee,
Greece, Belgium, Poland, Czechoslovakia, and the Netherlands should
serve to make clear to those concerned that such refugees as may be
accepted in camps here will be returned to their homelands at the
end of the war.
Regraded Unclassified
- 3 -
(3) The humanitarian considerations which might be urged
against the confinement of the refugees are answered by the simple
fact that treating them as prisoners of war is better than letting
them die.
(4) The general idea has been discussed with 8. number of
organizations, Jewish and non-Jewish, and they have all expressed
their approval. Most of them feel that it is by far the biggest
step the Board can take to accomplish the purposes for which it
was established.
(5) The necessity for unilateral action now by this Government
lies in the fact that we cannot expect others to do what we ourselves
will not do, and if we are to act in time we must take the lead.
(6) The practical effect of such a step by the United States
might be tremendous. Our allies would without doubt follow our
lead. That this country, which has always been 8. refuge for the
fugitive from injustice, oppression and persecution, should take
the leadership in this matter would be in keeping with our heritage
and with our ideals of liberty and justice.
(7) In the hearts and minds of all peoples under Nazi domina-
tion and throughout the world such action might well have an effect
very much favorable to our whole war effort and to our reputation
as a nation which has always carried the torch in great undertakings.
In a report to the War Refugee Board in early March,
Ira Hirschmann, the Board's representative in Turkey, concluded as
follows:
"I am sure you will be gratified to learn that
although still on the threshhold, the work of the War
Refugee Board has injected new life and hope into
thousands of down-trodden, tormented refugees through-
out the European continent. This is not my opinion but
one that is confirmed by all of the refugees I interviewed
during my visit in Istanbul. The first Jewish refugees
of Turkish origin just arrived from France said to me
feelingly, 'For two years there has been only one phrase
on everyone's lips - when are the Americans coming?'"
(8) Even if no refugees were ever actually brought to these
camps, the mere announcement of our readiness to receive them would
remove the basic obstacle to our efforts to save them. In view of
geographical and time factors, it is not likely that many refugees
would actually come to the United States. The important thing is
that we offer to receive them.
Regraded Unclassified
- 4 -
Question of Congressional Approval
Secretary Hull, Secretary Morgenthau and Secretary Stimson
carefully considered this proposal at the meeting of the Board on
March 21. Although there was no disagreement as to the potential
benefits of such B. program, Secretary Stimson felt that it was a
matter which should be presented to Congress for its approval.
Secretary Stimson's views on this, in his own words, are as follows:
"The principal objection which I had to the proposal to bring
these refugees into the United States was my fear that the proposal
would be considered 60 at variance with the policy of our immigration
laws that the President should not undertake it without conferring
with and obtaining the consent of Congress. The reasons were as
follows:
"Our present immigration laws were the result of a very deeply
held feeling of our people that the future immigration of racial
stocks should be so limited as to coincide with the existing ratio
of such stocks already within the country. Furthermore these laws
were adopted at the close of the last war by overwhelming majorities
of our Congress for the purpose of preventing the entrance into this
country of large blocks of immigrants who were likely to come from
the very countries in which most of the present refugees with whom
we are concerned now originate. Our people then showed that they
strongly feared that an uncontrolled immigration from such countries
would modify the proposidon of the racial stocks already existing
in our own population and would introduce into the United States
many people who would with difficulty be assimilated into our own
population and brought into conformity with our own institutions
and traditions.
"I fear that your proposal would meet with B. similar reaction
from our people today who would feel that it was merely the beginning
of a. permanent immigration. This would be accentuated if it was
carried through by Executive authority alone and without the assent
of Congress.
"One of the considerations which faces us in attempting to
obtain the consent of the European nations to take these people off
our hands at the end of the war is that many of those countries are
not now free to make valid commitments supported by responsible
governments.
"But even if the obtaining of such commitments were possible,
I am informed that the mere introduction of these people today on
such a scale and for humanitarian purposes alone would be contrary
to existing American law. In this connection I an not at all clear
Regraded Unclassified
15
- 5 -
that the war power of the President would be held to cover a
transaction like this which has no direct connection with the
prosecution of the war.
"For these reasons I felt then and feel now that it would be
unwise to advise the President to take such 8. step without the
consent of Congress.
"At our meeting at which this was discussed I think you stated
your belief that it would be impossible to get the consent of Congress.
On reflection I am not at all sure that you are right. If presented
with the support of the overwhelming humanitarian reasons and with
adequate safeguards for returning the refugees to their own countries,
I am not at all sure that the measure could not be carried. If thus
presented, the Congress would be able to take such precautions as
it would deem necessary and would be consulted in regard to the
financial responsibility which it is quite evident that this country
must ultimately assume.
The Attorney General has informally advised the Board that
if you wish to put this program into effect without Congressional
approval legal justification could be found for such a temporary
arrangement. The Attorney General believes, however, that in view
of the attitude of the Congress toward all immigration policies it
would be unwise for you to take the proposed action without
Congressional approval having been first obtained.
In considering whether this step should be taken now by
Executive action or submitted to Congress for its approval the
following points should also be borne in mind:
(1) Time is of the essence and, even assuming Congressional
approval could eventually be obtained, it might be too late to do
any good.
(2) If, as many believe, the immediate adoption of this
program is fundamental to our efforts to save many people from
death, the question arises as to whether you should not act at once,
as you did in the case of the delivery of destroyers to Great Britain
- taking the leadership in molding public opinion in support of
the action.
(3) If the proposal were put up to Congress and Congress
failed to act, the result might be to minimize the gains which
have already resulted from your establishment of the War Refugee
Board.
Regraded Unclassified
46
- 6 -
Decision of the Board
The Board has decided that, in view of the importance and
urgency of this question and the great responsibility involved
in reaching 8. final determination as to what should be done, the
whole matter should be submitted to you for your consideration.
Among the possible courses of action which you will of course
want to consider are:
(1) Putting the program into effect at once by Executive
action.
(2) Consultation with appropriate members of Congress with
a view to Executive action.
(3) Presidential message submitting the matter to Congress
for urgent action.
(4) Having a bill first introduced in Congress, followed by
a Presidential message urging its immediate enactment.
We would appreciate an early expression of your views.
Secretary of State.
Secretary of the Treasury.
Secretary of War.
Regraded Unclassified
17
May 1, 1944
4:30 p.m.
STATUS OF RANDOLPH PAUL
Present: Mr. O'Conneil
Mr. C.S. Bell
H.M.JR: Had you people had a chance to get this
Paul episode straightened out? What is the status of
that?
MR. O'CONNELL: I have it now. I will outline it
as well as I can from what I understand of it. The day
after he resigned as General Counsel and, as I understood
it, pursuant to that arrangement you and he talked about
he was put on the other role as Assistant to the Secretary,
and the following day resigned from that. I understood
that the transfer was made solely for the purpose of
permitting him to collect his annual leave, and--
H.M.JR: No, it wasn't.
MR. O'CONNELL: That certainly was my understanding.
H.M.JR: I told him I wanted him to stay on and do
this thing. I have asked him to do thing. I appointed
him. Nobody said he was going to resign. Has he resigned?
MR. O'CONNELL: Yes--
MR. BELL: He has not resigned legaily. He is still
on the pay roll. We paid him last pay day and next pay
day, as Assistant to the Secretary. we have done that
for about everyone that gets out.
H.M.JR: He said that the General Counsel, Joe O'Connell,
told him he could go out and practice law because he resigned
as Assistant to the Secretary and was therefore simply able
Regraded Unclassified
18
- 2 -
to get his accumulated leave, and therefore he could
practice law, and he has had two separate cases.
MR. O'CONNELL: That is what I did tell him, and I
based it on the proposition that, as I understood it,
the only purpose of keeping him on was to let him get
his leave. He signed his resignation, and I gave it to
Norman Thompson the day he was assigned on the other role.
Mr. Thompson's office has been holding it until the day
his leave expires, June 3. He has been on leave ever
since, getting the leave to which he is entitled.
H.M.JR: Is he Assistant to the Secretary or not?
MR. BELL: Assistant to the Pecretary.
H.M.JR: Then how could he practice law?
MR. O'CONNE L: Well, that gets you to a legal
question that I have probably muffed.
H.M.JR: It is a question of horse sense. As Assis-
tant to the Secretary, how can he take retainers?
MR. O'CONNELL: People resign from the Department
every day and immediately start to work for someone else
the following day. That goes for every person that
leaves the Department. When Tarleau, or anyone else
leaves the Department, they are on a pay status and are
paid during all the time they are on leave, and they
start to work for somebody else the day after they leave
here. They get compensation in every case, and they get
paid while they are working for the other fellow.
H.M.JR: But he is, today, Assistant to the Secretary.
MR. O'CONNELL: For purposes of getting his leave,
as I understood it, and for no other purpose.
MR. BELL: The only inconsistency in the whole thing,
Mr. Secretary, is that Mr. Paul has appeared before the
Department rather recently. If he were still out working
Regraded Unclassified
49
- 3 -
at anything and not appearing before the Department there
would be no inconsistency about continuing him on to
use up his leave as an Assistant to the Secretary.
H.M.JR: Now, wait a minute. I have been around
here long enough that I know my onions. I put the man on
as Assistant to me. I mean, to stay. The idea was he
was going to stay on for months. Nobody said anything
to me about practicing law. Nobody said it was a subter-
fuge. It was in lieu of his leave pay, which he couldn't
have gotten unless he had gone through something and I
had kept him on as General Counsel.
MR. O'CONNELL: Well, we are at cross purposes, but--
H.M.JR: Or appointed him 8.8 Assistant General
Counsel.
MR. O'CONNELL: We did it before, but we could do the
same thing.
H.M.JR: well, you should have talked to me. I am
bothered with a thousand unimportant details. I never
had it in my mind. I have asked him to come to my nine-
thirty Group and to do post-war studies. I took it for
granted he was Assistant, and he is Assistant to me.
MR. O'CONNELL: He has been on leave ever since he
was Assistant.
H.M.JR: But he is Assistant to me, and as such - I
am willing to leave it up to anybody - he is not entitled
to practice law.
MR. O'CONNELL: I know that. That is the situation
that came up to me first on Saturday of this past week.
I know that is wrong. He cannot practice law.
H.M.JR: lie said you said he could.
MR. O'CONNELL: I took the position that by virtue
of putting in his resignation as he did - and I was en-
tirely wrong, undoubtedly - but I understood the
Regraded Unclassified
50
- 4 -
transfer was made for two purposes: One, to vacate the
General Counsel's office so the vacancy could be filled;
and secondly, to avoid the necessity for his giving up
the leave that he had earned during the time he was here.
and the fact that he was put as Assistant to the
Secretary instead of Assistant to General Counsel, as we
did with Ed Foley, was just to my mind & different
method, and I understood the purpose was entirely the same.
H.M.JR: Whom did you ask?
MR. O'CONNELL: I didn't ask anyone other than read the
exchange of letters, and Mr. Paul told me his under-
standing was to that effect.
I understood he said the same thing to you this noon,
although I wasn't there, either.
H.M.JR: Look, fortunately for me, at every single
conversation up to the time he left, lierbert Gaston
was present, so don't go by my memory. We could ask
Herbert Gaston. He was present at every single one.
So when he gets here tomorrow, we will ask him.
Don't lets you and I argue what Paul and I thought,
but ask Herbert, who was at every single conference up
to and including the luncheon after he resigned as
General Counsel and was "ssistant to the Pecretary.
Now, as 8 matter of fact - I am tired now - it was
a complete afterthought in my appointing him as Assistant
to me.
Herbert will tell you, it was an afterthought.
MR. BELL: For the purpose of having him work for you
and not for the purpose of getting his leave?
Regraded Unclassified
51
- 5 -
H.M.JR: Dual, but the leave part was incidental. I
wanted his services. I told the President. I have told
Jimmy Byrnes that he was here, available to help us. It
is clear in my mind. We will talk to Herbert tomorrow.
But leave that out; don't take my word for it.
(The Secretary leaves the conference temporarily.)
H.M.JR: There was a convoy lost with five hundred men
on it. I double-checked to make sure it wasn't Henry. I
just heard it wasn't.
Look, as to what was in his mind, let's leave it go
for the minute. You check it with herbert Gaston. Let's
take it as of today. He is assistant to me. Never mind
what the purpose was.
MR. BELL: He doesn't think so, sir, Paul. You see,
I have 8. signed slip from Paul asking for his annual leave
up until June 3.
H.M.JR: But look, old man, don't get me confused.
Mr. Paul is Assistant to the Secretary of the Treasury.
Never mind the reason why. After all, you can't go into
court and say that I made him that in order to get his
annual leave, can you?
MR. BELL: Yes, sir, that is legitimate.
H.M.JR: You can say that?
MR. BELL: Yes, sir.
H.M.JR: You can say that I am paying him at the rate
of ten thousand a year?
MR. BELL: Yes, sir, you have the right to pay that
to Assistants.
H.M.JR: In lieu of his annual leave?
MR. BELL: Yes, sir, it is a legal right. That is only
about two years old.
Regraded Unclassified
52
- 6 -
MR. O'CONNELL: It is something he earned before he
resigned as General Counsel.
H.M.JR: I am not saying he didn't earn his annual
leave, but I am saying I can't make him --
MR. BELL: We have a Comptroller General case moving
a man from one classification to another for the purpose
of annual leave.
H.M.JR: Well, say you are right. Then can he still
take retainers between now and then?
MR. O'CONNELL: No.
MR. BELL: And he can't appear before the Department
in a tax case.
MR. O'CONNELL: During the period that he is on leave
between now and the time he resigns he cannot--
H.M.JR: That is what he said you said he could do.
MR. O'CONNELL: That is right.
MR. BELL: I don't think Joe told him that.
H.M.JR: He said that Joe said he could practice law.
MR. O'CONNELL: That is right, and he could practice
law.
H.M.JR: But has he appeared?
MR. O'CONNELL: Yes, he did last Wednesday. That is
why the question came up.
H.M.JR: I can't do this tonight, but for God's sake,
put this thing together for everybody's sake, and Paul, of
all people!
Regraded Unclassified
53
- 7 -
MR. BELL: Well, Mr. Secretary, there is no damage
done if we take his resignation as of April 26, which is
the beginning of the next pay period. He didn't practice
up until that time, and he is perfectly willing to give
it to us and sacrifice fifteen hundred dollars for the
leave, which only proves again that he hasn t the notion
that he is an Assistant to the Secretary.
MR. O'CONNELL: He gave me his signed resignation and
signed a leave slip the day after he was appointed Assistant
to the Secretary. That is entirely consistent with my
understanding of the purpose of his being put in that other
job.
H.M.JR: Well, do you mind asking Herbert Gaston tomor-
row, who was at every single meeting? But let's say that
you are right, see? He is Assistant to the Secretary for
& reason. It doesn't make any difference. I say, "Has he
the right to practice before the Treasury?"
MR. BELL: No, sir.
H.M.JR: You boys had better straighten it out.
MR. O'CONNELL: It can be done very rapidly by
accepting the resignation as of the 25th of April.
MR. BELL: He is agreeable to that.
MR. O'CONNELL: Oh, yes, he was willing to sacrifice
anything. That is why I thought the purpose of this in
the first instance was for leave. He was entirely willing
to give it up, as I understood it.
H.M.JR: Yes, I would like to go through this once
more tomorrow with Gaston. Have you talked to him since
I have seen him?
MR. O'CONNELL: Yes, just after lunch.
H.M.JR: He is willing to give it up?
MR. BELL: Oh, yes. He realizes now that he should,
but I don't t think he thought of it earlier.
Regraded Unclassified
54
- 8 -
H.M.JR: May I say this now to both of you, see? I
don't care who the person is in the Treasury, it is your
jobs, both of you, to protect me and the good name of the
Treasury, and I don t care who the person is, using this
as an extreme, the McReynolds case. And if you see that
I am careless, I want to be told. I want to be told first
by both of you.
MR. BELL: Well, as soon as he told you--
H.M.JR: Now, wait a minute. Starting with me, it
is the responsibility of you two people to see that I don't
make any mistakes unwittingly, or anybody else. I have no
favorites. It is a job, and everybody, starting with myself--
now, do we understand each other?
MR. BELL: We had this same thing up with Tarleau.
H.M. JR:- Now, wait & minute, I have something very
definite in mind. Do you understand me?
MR. BELL: Yes, sir.
MR. O'CONNELL: Yes, sir.
H.M.JR: Starting with me and everybody else right
down, no favorites, no monkey business, no special privileges.
It is more on you two fellows than anybody else, and you
can start with me.
MR. O'CONNELL: There is one little thing I might
mention as the sort of thing that I should have done in
this case, just before Randolph--if he asked for a file
from the Bureau in connection with a matter which was per-
fectly legitimate for him to examine, the file came over
from the Bureau after he had resigned, and I old him he
could not see the file. I was trying to be consistent with
the theory that as of the date he signed the resignation
he was on the pay status solely for the purpose of getting
his pay. I haven't let him see anything or talk about the
routine operations that he would be concerned with.
Regraded Unclassified
55
- 9 -
H.M.JR: I think I ought to talk to Paul in a very
nice way if he is practicing before the Bureau. This idea
of his having his old office and all the rest of it should
stop. And he should be the first one--
MR. O'CONNELL: There is no question about it.
H.M.JR: He said you told him this two year business
didn't apply, and he only found it out. But I still think
that a thing like this should have been brought immediately
to my attention, and the point is, I don't want to find
out these things myself, see? If I hadn't found it out, I
don't know how long it would have run.
MR. O'CONNELL: Well, we will do it.
H.M.JR: You have inherited a job. If you had had this
thing for six months, I wouldn't have let you off so easy.
But you are new.
MR. BELL: We had the same thing with Tarleau.
H.M.JR: I mean the whole business, these papers, you
should pass on them. He shouldn't be able to change a man's
status without your knowing it. I am going to take it up
once more with Gaston.
Regraded Unclassified
56
May 1, 1944
5:11 p.m.
HMJr:
Hello.
D. W.
Bell:
Hello.
HMJr:
Dan, I was just reading the letter that you
wrote to Rosenman about five-hundred dollar
checks. I still can't see why we shouldn't
stop issuing anything more than twenty-dollar
bills.
B:
You mean five-hundred dollar bills?
HMJr:
No, I don't see why we should issue anything
more than twenty-dollar bills.
B:
Yeah.
HMJr:
I wish - I wish you'd give that serious
consideration.
B:
I have.
HMJr:
Well, give it again.
B:
We've talked about it and talked about it.
I
HMJr:
Well, we can talk
....
B:
I think it would have been fine if we'd
have done it at the beginning of the war, but
I - I'm just a little scared of fooling with
the currency at this time.
HMJr:
Well, do you mind making a note and bringing
it up at the next Staff meeting?
B:
Yep. Be glad to.
HMJr:
Please. Thank you.
B:
All right. Ah - I've got a
....
HMJr:
(Coughs) Excuse me.
B:
I've got an understanding with Eccles on
Treasury Bills
Regraded Unclassified
57
- 2 -
HMJr:
Yeah.
B:
....
and we've all agreed now that they
should be increased to a billion two....
HMJr:
Yeah.
B:
....
beginning this week. Is that okay with
you?
HMJr:
Well, I've got to talk to you about it, Dan.
It's too important to
....
B:
It's one of those things, you know, we've
been talking since last financing, and
....
HMJr:
Well, let me
....
B:
....
they've wanted a double rate.
HMJr:
Well, talk to me about it tomorrow.
B:
Yeah, I'd like to do it for Wednesday - by
Wednesday.
HMJr:
I'm available tomorrow.
B:
Okay. Right.
58
57326
MAY 1 1944
Dear Same
I have your letter of April 24, passing along a
surgestion of a friend that black market operations
might be relussed by a requirement that all Memostions
in ****** of $500 must be settled by check.
Ve have been studying the related problems of the
increase of money in circulation and the use of currency.
particularly in large denominations 1) conseal illegal
transactions. Our conclusions, at the present time, are
that 10 would be advisable to deal with these questions
separately and not, as your friend suggesse, to go after
the illegal transactions indiFectly decislation affect-
ing the currency. is you realize, The proposal to require
all transactions in excess of 1500/No be settled by cheek
would require legislation, - such legislation would, in
effect, convert W placy of the United States from unlimited
to limited legal tooder, while giving to bank checke a quast
legal teader power which they do not new possess. Such
action would, neresver, pendise legitimate transactions
as well as illegal transactions. I believe 10 is possible
to not black market operations under the provisions
of the dentral and stabilization lave, and to avoid
thereis the discrivantages which I have mentioned.
approciate the thoughtful interest which prompted
your friend's suggestion.
Sincerely,
(Signed) Heary
Nonerable Semuel 1. Resease
The White Kense
Washington, D. c.
am
arest
APLT:hr
4/28/44
EX
swB
Regraded Unclassified
THE WHITE HOUSE
WASHINGTON
57326
April 24, 1944
Dear Henry:
I am passing along to you the follow-
ing excerpt from a letter which 2. friend of
mine sent to me:
"Perhaps this suggestion 1s on the fan-
tastic side but one of my partners thinks
that black marketing might be drastically
reduced 1f through Treasury regulation
or legislation a transaction in excess
of $500. had to be settled by check.
"If this 1dea has any merit, I assume
you will pase it along to the proper
channels; if it hasn't, I am sure you
have P. spacious waste backet."
With kindest regards,
Very sincerely,
SAMUEL Sam I. ROSENMAN
The Honorable,
The Secretary of the Treasury,
Washington, D. C.
60
THE UNDER SECRETARY OF THE TREASURY
WASHINGTON
May 1, 1944.
MEMORANDUM TO THE SECRETARY:
Referring to your memorandum of April 13, 1944
regarding your conversation with Gordon Rentschler on
the system they had worked out for getting $1 million
a week of new deposit money, I talked with Dr. Burgess
in Rentschler's absence about this matter and he had
Vice President Sheperd look into it. Sheperd advised
Burgess that the principal increase in their interest
deposits is due to current savings and that there has
been very little indication that any of this money has
come out of hoarding. He said that a great many of the
new savings accounts are for soldiers, coming from allot-
ments which they have made to their wives and other members
of their families and many of the accounts are coming from
women who are going into jobs to take the place of men who
leave for military service. Burgess didn't think there
was anything new in this and that most banks were having
about the same experience.
DWB
POBLYCTORY
BUY
UNITED
STATES
WAR
BONDS
489
STAMPS
Regraded Unclassified
61
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
May 1, 1944
TO
Secretary Morgenthau
FROM Fred Smith
D
Attached is a carbon copy of my memorandum to
Mrs. Morgenthau.
General Greenbaum would like to know if you want the
"Battle Of New Britain" for your next movie night. It is
the latest in Frank Capra's series.
Attachment
Regraded Unclassified
62
May 1, 1944
Mrs. Morgenthau
Fred Smith
(signed) Fred Smith
This is to let you know that we will be expecting you
in the projection room at 2:00, Tuesday.
For your information, here are the films to be reviewed,
out of which we hope to get a three and one-half to four-hour
course in what the war is all about. The ones marked with
a star are the least important, and we will review these in
the morning. If any are outstanding, we will play them
again in the afternoon.
I think you can be very helpful on this, and I appreciate
your taking the time.
Prelude to War
60 minutes
Battle Of China
60 minutes
Earthmovers
20 minutes
How Good Is A Gun
20 minutes
Tremendous Trifle
20 minutes
Lifeline
20 minutes
AAF Report
40 minutes
Communique #6
20 minutes
Communique #7
20 minutes
Communique #8
20 minutes
Battle of New Britain
65 minutes
FS:mlf
Regraded Unclassified
From Paul.
63
they 1st 1944
THE PROBLEMS OF POSTWAR TAXATION
Summary
I. General considerations.
Postwar includes (1) the transition period, and
(2) the period after the transition. The belief is
widespread not only that wartime rates are too high
but that some elements in the tax structure would inter-
fere with achieving full employment. The extent to
which the distribution of the tax burden can be changed
depends on the level of postwar expenditures, the level
of the national income, and the yield of the tax system.
A tentative analysis indicates that there may be room
for minor ad justments but not for wholesale read justments.
II. Possible postwar revisions of specific taxes.
A. Individual income tax: Little change in struc-
ture but the question of rates and exemptions at the
bottom and rates at the top.
B. Estate and gift taxes: No rate decrease seems
necessary but me jor revision either in the form of a
transfer tax or of an accessions tax would be desirable.
C. Excise taxes end the general sales tax: Some
reduction in excise taxes will be necessary for enforce-
ment purposes (for example, in liquor, to prevent boot-
legging) or to avoid repression of the taxed industries.
A general sales tax should be avoided.
D. Payroll taxes and social security: The enlarge-
ment of social security benefits and coverage, together
with higher rates of payroll tax, are involved.
E. Corporation taxes: The high corporate rates
and the double taxation of distributed corporate profits
present the big problems here. The elimination of
double taxation 18 probably the most difficult of the
postwar tax problems.
F. Tax incentives for business: Many special incen-
tives devices have been recommended, most of which would
probably not be of much value.
Regraded Unclassified
64
- 2 -
III. The transition period
During the transition period, some of the most
important problems will be: (1) The speeding up of
refunds on account of carry-backs and the postwar
credit of 10 percent of the excess profits tax, as
well as other payments which may be due the taxpayer
from the Government; (2) the revision of the carry-
back of losses and unused excess profits tax credits;
(3) the fixing of a date of repeal of the excess profits
tax, whether immediately after the end of the war or
some time thereafter; and (4) the rapidity with which
steps should be taken to move other wartime taxes to
the proposed postwar rates.
May 1, 1944
Regraded Unclassified
Att
65
OFFICE OF WAR MOBILIZATION
SURPLUS WAR PROPERTY ADMINISTRATION
OFFICE OF ADMINISTRATOR
011 VERMONT AVENUE NW.
WASHINGTON 25, D. c.
Proma May 1, 1944
Dear Henry:
Thanks for your note of this date.
I certainly would not select anyone to work
with the Treasury without being perfectly sure that you
and John and Mr. Olrich looked him over and approved of
him.
Sincerely yours,
wee
W. L. Clayton
The Honorable
Henry Morgenthau, Jr.
Secretary of the Treasury
Regraded Unclassified
56
May 1, 1944
Personal
Dear will:
I was very glad to learn from your personal
note of April 29th that you are as pleased as I
am that ne persuaded Mr. Olrich to come with us.
I note from your letter that you are looking
for a "top man in the merchandising field". I
would appreciate it if, before you appoint such
a man, you would give Mr. Olrich and myself an
opportunity to look him over to make sure he is
the type of person with whom we can work to our
mutual advantage.
Sincerely yours,
(Signed)
E.
Margrathen,
Mr. W. L. Clayton,
Administrator,
Office of War Mobilization,
Surplus War Property Administration,
811 Vermont Avenue, N.W.,
Washington 25, D.C.
5/1/24 13:00
Regraded Unclassified
67
OFFICE OF WAR MOBILIZATION
SURPLUS WAR PROPERTY ADMINISTRATION
OFFICE OF ADMINISTRATOR
011 VERMONT AVENUE NW.
WASHINGTON 25, D. c.
PERSONAL
April 29, 1944
Dear Henry:
Just 8. line to congratulate you and Mr. Ernest L. Olrich
on his appointment in connection with the disposal of sur-
plus property.
From my impression of one meeting with Mr. Olrich, and
from a knowledge of his background and experience, I believe
you have found the right man.
I also believe that Mr. Olrich will derive great satis-
faction in his work with you and John Sullivan and in the
performance of a very important and useful public service.
In due course, we will have here a top man in the merchan-
dising field, who will represent us in working with Mr.
Olrich in fixing policies, and making necessary day to
day decisions, so that there will be no delay at any time.
With regards and best wishes,
Sincerely yours,
W. L. Clayton
Administrator
Honorable Henry A. Morgenthau, Jr.
Secretary of the Treasury
Washington, D. C.
CC: Mr. John Sullivan
Regraded Unclassified
68
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
Date
TO Secretary Morgenthau
May 1, 1944
FROM Fred Smith
The man we ought to get to handle Public Relations for
Olrich, is Harold Smith, who was my good right-hand man at
Young and Rubicam, whom you met once in New York.
Smith is 35, has two pre-Pearl Harbor children, is 1A
in the draft and is slated to be inducted next month.
However, his draft board would defer him if he were in an
essential job, instead of in an advertising agency.
I am wondering if we would want to ask for his deferment,
if only until such time they again start taking men in that
age bracket, regardless of essentiality.
no
S-1ry I
Mr. Smith to speak to the Secretary and he will explain
why the answer is no.
Regraded Unclassified
69
VICTORY
TREASURY department
BUY
PRITED
WAR
PROCUREMENT DIVISION
SONDS
STAMPS
WASHINGTON 25
ICE OF THE DIRECTOR
May 1, 1944
VENORANDUM TO THE SECRETARY:
The Army Service Forces have instructed the Ordnance
Division to declare 5000 jeeps surplus to us. The Ordnance
Division in turn is determining the points from which sur-
plus should be declared and the quantities from each location.
Thus far we are advised that 50 jeeps are being declared
surplus to us in Region 4, which includes the States of Ohio,
Kentucky, Indiana, and West Virginia. A further report will
be submitted as soon as we have more information as to the
condition of this equipment.
A conference was held with representatives of the tanning
industries for further discussions on the disposal of shear-
lings.
V
w
J
Sperma Clarton E. Mack
Director of Procurement
<
jups,
bd
70
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
CONFIDENTIAL
DATE May 1, 1944
TO
FROM
Mr. Hage
Secretary 9A Morgenthau
subject: The Business Situation,
Week ending April 29, 1944.
Summary
Industrial production: Industrial activity decreased slightly
in March and the FRB adjusted index of production dropped to
242 from 244 in the previous month. This compares with the
wer-time peak of 247 reached in October and November 1943.
An important factor in the decline W&B a 6 percent drop in
coal production from the previous month's unusually high
level. Munitions output rose 3 percent in March after
declining for 3 consecutive months.
Commodity prices: Commodity prices showed little change last
week, with the BLS index of 28 basic commodities off 0.1 per-
cent. Tightness in the feed situation held cash rain prices
steady around ceiling levels. Cotton prices eased slightly,
while prices of non-support veights of hoge were off noticeably.
Security prices: Stock prices at New York held steady last week
on 11-ht trading. Publication of the U. S. Steel report for
the first cuarter showed sernings better then expected, but
high costs took the company out of the excess-profits bracket.
Dollar bonds of Axis-occupied countries have recently
strengthened.
Farm parity: With average farm prices unchanged last month,
the index of prices received by farmers fell below the level
of the corresponding month a year earlier for the first time
since December 1939. Since the index of prices paid by
farmers was also unchanged, farm prices continued to average
115 percent of parity, the same 8.8 in the preceding two months.
A year ago the parity ratio W&B 122.
Corn situation: To obtain supplies for the hard-pressed corn
processors, the 000 W&B made the sole purchaser of corn in
125 counties in five Mid-Western states last week. By
providing free shelling service at the farm and transportation
to the local elevator, the 000 will in effect be granting
farmers a subsidy of from 1 to 5 cents per bushel.
Regraded Unclassified
71
- 2 -
Industrial production elightly lower in Haroh
Despite an increase in munitions output end further
expansion in steel production, industrial activity declined
olightly in March and the FRB adjusted index of production
dropped to 242 from 241 in February. On an uned justed basie,
the index has now declined 10 points from the war-time beak
attained last October, but after allowance for seasonal factors,
the decline has been only 5 points or about 2 percent. (See
Chart 1.)
Production in the important transportation equipment and
machinery industries decreased moderately in March, although
aircraft and merchant ship deliveries increased. According to
1. preliminary WPS report, machine tool shipments during the
month showed a small rise for the first time in a year, but
the total of less than $51 millions contrasted sharply with
shipments of 125 millions in March 1943. Nondurable goods
output showed a small decrease in March, largely due to a
further decline in chemical production. On the other hand,
the output of manufactured foods declined less than seasonally,
and was 11 percent greater than in March 1943. Minerols
production fell off, chiefly due to a 6 percent drop in coal
output resulting from manpower shortages and a return to the
0-any work week in the anthracite mines.
Munitions output gains
The over-all output of munitions rose 3 percent in March,
according to the WPB, after declining for 3 consecutive months.
Aircraft production rose to a new high, and on B weight besis
increased 9 percent over the February level. Landing craft
production rose 26 percent, while total deliveries of neval
craft showed a gain of 5 percent, although they failed to
meet scheduled requirements.
Restrictions on civilian goods conversion modified
Further gains in munitions output in coming months were
forecast last week by the WPB chairman. About four-fifths of
the entire munitions program is slated for further increases,
including such items 8.6 aircraft, landing craft, large trucks
and heavy artillery. A new peak in wer production is expected
to be reached by August, and in view of this fact it was
indicated that civilians could not expect any early general
increase in civilian goods supplies. Nevertheless, at the
beginning of last week the WPB revoked the order issued earlier
In April which tightened up on civilian ;oods production in
Regraded Unclassified
72
- 3 -
103 Inhor shortage areas. In connection with the revocation,
the WPB indicated that a new and less sweeping order WAB being
@ream un which would omit certain es ential programs from the
restrictions. Among the items which are expected to benefit
from the action are electric irons, clarm clocks and work
loves.
Steel output at new peak
Industrial activity during April has been featured by
further ains in steel output, with operations last week
rising to 100 percent of capacity, thus breaking all previous
weekly tonnage output records. Indicative of the sustained
Lervy demand for steel, the Chairman of the U. S. Steel
Corporation revealed last week that concellations and cut-
backs have been offset by new orders booked by the corporation,
and 10 0 consequence there has been no over-all loss of
luminess.
Unfilled orders of the Bethlehem Steel Corporation dropped
21 percent in the first quarter of 1944, due almost entirely
to E reduction in shipbuilding: bookings. Despite the decline,
unfilled orders on April 1 were equivalent to nearly a year's
billings at the first ouarter's rate of operation, and average
quarterly billings for 1944 are expected to approximate the
first quarter rate provided there is no change in the military
grogram.
Stock prices steady
After a further decline at the beginning of the week,
stock prices later improved moderately as selling attributed
to invesion uncertainties abated. Daily average stock trans-
actions on the New York Exchange declined 22 percent from the
previous week, while closing stock prices on Saturday were
virtually unchanged from week-earlier levels. (See Chart 2.)
Publication at mid-week of the U. S. Steel Corporation's
first quarter earnings report probably W&B a moderately
stimulating market factor, 0.8 quarterly earnings of 1.23 per
share were better than some observers had expected. An
interesting feature of the corporation's earnings report was
the revelation that higher employment and other costs took
the company out of the excess profits bracket in the first
quarter. Despite a rise in sales of nearly 242 millions over
the first quarter of 1943, mounting coste, including & 826 mil-
lion rise in payrolls, out income taxes to $15 millions from
25 millions E. year earlier.
Regraded Unclassified
73
- 11. -
Dollor bonds of Axis-occupied countries rise
Prospect of an early invasion of Western Europe, end
we nuccesses of the Russian armies in Eastern Europe, have
in recent months stimulated speculative interest in the dollar
bonds of Axis-occupied countries. Indexes which we have
compiled for a limited group of dollar bonds of Western and
Eastern European countries now under Axis control show that
these bonds have recently risen to the highest levels since
1939. (See Chart 3, upper section.) It will be noted that,
following sharp declines touched off by the German invesions
of Poland and of Horway and Demark, prices at the end of
1940 were only about one-fifth of the level prevailing at the
en of February 1939, just before the German absorption of
Creohoslovakia.
with the exception of 2% short-lived rise after Russia
YES brought into the war in 1941, sustained improvement in
nrices of these bonds did not et under way until the North
African campaign was opened in November 1942. Since that
time, prices of the Western European bonds have shown &
stendy recovery, and recently have been cuoted at nearly
70 percent of the February 28, 1939 level. In line with
inherently greater speculative characteristics, the Eastern
European bonds have shown a more erratic upward trend. However,
as will be seen in the lower section of Chart 3, in recent weeks
these bonds have displayed greater strength than those of
Vestern Europe, probably in reflection of the advances of the
Russian army. While the Eastern European bonds at the end of
last week stood slightly higher in relation to the base period
than the Western European bonds, it must be remembered that at
the end of February 1939, the former were already selling at
depressed levels while the Western European issues were selling
above or near par.
Commodity orices show little change
Commodity prices showed little change last week, although
the BLS index of 28 basic commodities was down 0.1 percent.
(See Chart 4.) Hog prices for weights covered by the Govern-
went support program declined slightly to the support levels,
while prices of non-support weights declined noticeably.
Continued heavy hog marketings, together with a less active
demand, resulted in large carryovers of hoge at several
markets. Cotton prices eased alightly and rosin prices
deolined sharply. Reflecting the opening of the production
season, rosin prices have declined for the fifth consecutive
week.
Regraded Unclassified
74
- 5 -
The feed supply situation continues very tight, with
cash grain prices holding around ceiling levels. Lar e
imports of Canadian grain, however, have been arriving
recently both by rail and by boat. Argentina 16 reported
to have an excellent corn crop this year, following a near-
failure last year, with the crop estimated at 358 million
bushels, or 17 percent above the 1937-42 average. There has
consequently been some discussion in the trade concerning
possible importation of Argentine corn.
A program to utilize surplus stocks of ootatoes for
livestock feed was announced by the Minnesota state AAA chairman
recently. The 000 will purchase potatoes in that state at the
support prices of from 31.65 to $1.80 per 100 pounds for No. 1
notatoes, and will resell them immediately to farmers for
feed at 30 cents per hundred pounds. At this price, notatoes
are said to compare favorably with grain as livestock feed.
Other measures taken to support potato prices and to utilize
surplus stocks have included the dehydration of ootatoes for
alcohol production end livestock feed.
The BLS all-commodity index in the week ended April 22
declined 0.2 percent. Lower prices for several farm products
lar ely accounted for the decline. Onion prices were off
sharply 8.8 e. result of an improved supply situation. Having
moved in a very narrow range during the past year, the
all-commodity index at 103.6 16 only 0.2 percent higher than
a year ago, but is 38.1 percent above the pre-war level of
August 1939.
Farm prices lower than a year DO
Farm prices on the average were unchanged last month,
and the farm price index fell below the level of the corresponding
month a year earlier for the first time since December 1939.
The index has moved in a narrow range during the past year,
end at 196 percent of the 1909-14 average the index for
Aoril W&B 0.5 percent below that of April 1943, but it was
120.2 percent above the pre-war level of August 1939. While
prices of fruit, grains, tobacco and oil-bearing crops
have shown a substantial rise durin the nast year, these
increases have been offset by appreciably lower prices for
meat animals, eggs, and truck crops. Price ceilings, rationing,
end very heavy production of meat animals, eggs, and truck crops,
have been lar ely responsible for stabilizing the index.
Regraded Unclassified
75
Fruit prices in April rose more than 10 percent to an
All-time high, 46 percent above the average for this group &
year ago. Strawberry prices were sharply higher than last
year, with receipts only about half 8,8 large. Prices of
nonles, grapefruit and oranges showed moderate increases
for the month. The indexes of grain and cotton prices were
un slightly. (See Chart 5.) On the other hand, sharp
declines in the prices of tomatoes and carrots helped
produce D. 9 percent decline in the truck crop index. Dairy
products prices were off slightly with the seasonal upswing
in production, and eye prices declined substantially. The
fera price of essa on April 15 avera ed 27.1 cente per
dozen, LE compared with 33.7 cents a year ago.
As the index of prices paid by farmers (including interest
and taxes) Also was unchanged from the preceding month, farm
Orices continued to average 115 percent of parity. During the
not year the index of prices paid has gradually risen, while
the index of prices received has shown little change. Conse-
qently, the parity ratio has tended to decline. (A year 8/0
form orices averaged 122 percent of parity.) All principal
form products are now at or above perity except whent, cotton,
hay, peanuts, rye and lemons.
000 made sole ourchaser of corn in five states
In & move to obtain needed supplies for corn processing
plants, the 000 last week was made the sole legal purchaser
of corn in 125 counties of Mebraska, Minnesota, Iowa, Illinois,
and Indiana for a period of 60 days. Although the 000 will
pay the loonl elevator ceiling price, it will provide shelling
service at the farm and transportation to the local elevator
without cost, thus in effect granting a subsidy to farmers
renging from 1 to 5 cents per bushel. The only exception to
the 000-purchase order 18 that feeders presenting evidence of
imediate need, upon obtaining authorization from the county
AAA committee, may purchase limited supplies from farmers.
To further stimulate the flow of corn to processing
plants, the OPA announced last week a reduction of 75 cents
per hundredweight in the ceiling prices of hogs weighing
more than 240 pounds, effective May 15. This provision is
intended to discourage the feeding of hoge to heavier
weights. While this action may have little immediate effect
on hog prices, which are now substantially below the new
ceiling levels, it should serve as a warning to farmers
against over-feeding. Hos prices now show the least favorable
relationship to corn prices since December 1940, and the
continued heavy hog marketings, including sizable numbers of
boye lacking desirable finish, indicates a certain amount of
liquidation.
Regraded Unclassified
76
- 7
Reanwhile the corn processing industry continued to
operate last week at sharply reduced levels, with several
large plants shut down. The Argo, Illinois, plant of the
Corn Products Refining Co., which 1s the largest in the
country, WAS forced to close Saturday for lack of corn
supplies. The Pekin plant of this company has been closed
for three weeks and the Kansao City plant has sufficient
corn to maintain operations at only 40 percent of capacity.
The entire industry, according to press reports, has recently
been able to purchase only 25 percent of normal requirements
despite the set-aside orders of the Government. Stocks for
the industry are reported to have dwindled to a two-veeks'
supply.
Persistent rains continue to delay planting
Persistent and excessive rains have continued to delay
planting in most agricultural sections of the country,
carticularly in the South, and forming operations are now
from 2 to 4. weeks behind the normal schedule in many areas,
according to the Weather Bureau. Floods have occurred during
the past week in parts of Oklahoma, Kansas, Missouri, Iowa,
end Illinois, which have caused some damage to crops, with
the Mississioni River reported at the highest flood stage in
a century in the St. Louis area. The shortage of farm labor
ndds to the seriousness of any delay in farm operations this
year.
In the South, the planting of corn, peanuts, and cotton
her been considerably delayed, according to press reports,
which may cause a reduced acreage of these crops. In the
Central Plains area a reduction in the out acreage appears
likely because of the late season, but acreage intended for
this crop will probably be diverted to corn and soybeans.
Winter wheat and pastures, on the other hand, have progressed
favorably, except that growth has been retarded in some areas
by abnormally low temperatures.
Civilian dairy supplies larger
Larger civilian supplies of dairy products are indicated
for the second quarter of this year, 88 reflected in the in-
crease in butter and cheddar (American type) cheese allocations
for civilian use recently announced by the WFA, a reduction
in the ration value of butter to 12 points from 16 previously,
and an increase in quotas governing the sales of fluid cream
and fluid milk by-products. Civilian butter supplies in the
months April through June, the Department of Agriculture
recently stated, will probably be about the same AE in March,
Regraded Unclassified
77
- 8 -
and Larger than in any month since January 1943, while
cheddar cheese supplies will be about 40 million pounds
monthly as compared with around 30 million pounds available
Quring previous months.
Since butter production has been increasing without any
edjustment in the ration cost of butter, stocks have apparently
been built up to & point at which the OPA felt that EL reduction
in the ration cost this month was fessible. M1lk dealers
durin the next two months vill be permitted to sell 100 per-
cent 8.9 much cream and milk by-products (chocolate drink, butter-
milk, cottage cheese, etc.) as they sold in June 1943, 0.8
compared with a previous limitation of 75 percent. Quotas on
fluid milk will remain at 100 percent, but sales may be expanded
since nuotas on cream and milk by-products are transferable to
rluid milk in most cases.
Milk production outlook improved
The increase in civilian dairy supplies 10 largely the
result of a greater than usual seasonal increase in milk
moduction, although some improvement in the dairy outlook
for the entire year 18 apparent. Mille milk production fell
welow year-earlier levels during the latter part of 1943, it
las recently shown a more favorable comperison, and in March
Visa eli htly above the record levels of the year before. The
small increase was due to a larger number of cows, since
production per COW W&B somewhat lower than that of last year.
Milk production in 1944, the I/FA now estimates, may equal that
of 1943, whereas a few months BIO e slight decline had been
anticipated. Improved dairy incomes as E. result of the dairy
production payment program, together with a relatively mild
vinter, have been factors in the improvement in the milk
production outlook. Moreover, the number of milk COWE will
probably continue to increase during the year, due to the
relatively high price of COWE for milk in relation to the
price of 00WS for slaughter.
Since the next two months are the peak months for dairy
production, the percentage of butter production to be set
aside for the Government will be increased to 40 percent in
May from the 10 percent set aside last month. (The amount was
50 percent in May 1943.) The cheese set-aside has also been
increased from 55 to 60 percent, but this percentage is smaller
than the 70 percent set-aside required during May and June
last year.
Regraded Unclassified
F.R.B. INDEX OF INDUSTRIAL PRODUCTION, REVISED
1935-39=100, Seasonally Adjusted
1937
1938
1939
1940
1941
1942
1943
PERCENT
PERCENT
Monthly
275
275
250
250
225
225
200
200
175
175
150
150
125
125
100
100
75
M
M
S
N
J
M
M
J
s
N
J
M
M
75
Chart 1
J
J
J
S
N
J
M
M
J
S
N
J
M
E
J
S
N
J
M
M
J
$
N
J
M
M
J
S
N
J
M
M
1937
1938
1939
1940
1941
1942
1943
1944
78
Office of the Secretary of the Treasury
Division of Research and Statistics
Regraded Unclassified
Chart 2
STOCK PRICES, DOW-JONES AVERAGES
79
Daily
1943
1944
DEC
JAN.
FEB.
MAR.
APR.
MAY
JUNE
e
it
19
26
1
9
le
23
30
4
13
20
27
5
12
a
26
2
9
16
23
30
7
14
24
28
+
"
18
25
DOLLARS
DOLLARS
155
155
30 Industrial Stocks
150
150
145
145
140
140
135
135
130
130
125
125
120
120
40
40
38
20 Railroads
38
36
36
34
34
32
32
30
30
24
24
15 Utilities
22
22
20
20
18
18
SHARES
SHARES
Millions
Volume of Trading
Millions
2
2
I
I
o
o
5
12
-
26
=
9
16
25
30
6
IS
20
17
5
12
-
и
I
9
is
ES
30
T
14
24
28
4
"
18
20
DEC.
JAN.
FEB.
MAR.
APR.
MAY
JUNE
1943
1944
- el - of the Insury
P-144-L
Even - -
PRICES OF SELECTED DOLLAR BONDS
OF AXIS OCCUPIED COUNTRIES
February 28,1939=100
PERCENT
PERCENT
End of Month
SEPT. 1
100
GERMANY
100
INVADES
POLAND
80
80
Western Europe*
NOV. 7
MAY 10
U.S.
GERMANY
60
OPENS
60
ATTACKS
JUNE 22
AFRICAN
HOLLAND,
GERMANY
FRONT
MAR. 14
BELGIUM
INVADES
GERMANY
RUSSIA
OCCUPIES
CZECHO-
40
SLOVAKIA
40
SEPT. 8
SURRENDER
OF
ITALY
20
20
APRIL 9
GERMANY INVADES
Eastern Europet
NORWAY, DENMARK
o
0
J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N
1939
1940
1941
1942
1943
1944
PERCENT
PERCENT
Weekly
80
80
80
70
Western Europe*
70
60
60
Eastern Europe⁺
50
50
40
40
30
30
JAN.
FEB.
MAR.
APR.
MAY
JUNE
JULY
AUG
1944
* Denmark 6's, 1942; Antwerp 5's. 1958; Copenhagen 5's. 1952
+ Czechosiovokia 8's, 1951; Poland 4½. 1968. assented: Serbs, Croats and Slovenes B's, 1962
Office of the Secretary of the Treasury
F0-171
Division of Research and Statistics
Chart 3
Regraded Unclassified
MOVEMENT OF BASIC COMMODITY PRICES
1942
1943
1944
PERCENT
PERCENT
AUGUST 1939 . 100
220
220
210
210
9 Uncontrolled Commodities
As of February 1942*
200
200
190
190
28 Commodities
180
180
170
170
19 Controlled Commodities
160
160
DEC
FEB
APR.
JUNE
AUG.
OCT
DEC.
FEB
APR
JUNE
1942
1943
1944
PERCENTAGE CHANGE DEC. 6. 1942 TO APR. 21, AND APR. 28, 1944
PERCENT
PERCENT
19 Controlled
9 Uncontrolled
Barley 760%
Commodities
Commodities
. 70
+ 70
Flasseed 64.6%
- 60
Rosin 59.9%
+ 60
Carn 56.9%
81
- 50
. 50
Wheat 446%
+ 40
+ 40
Hogs 35.8 %
Lard 28.8%
+30
Shellee 12.3%
+ 30
(Lood 111%
Steers 26.5%
Segar 6.9%
Cottonseed 0116.3%
Print Cloth 4.9%
+ 20
+20
Cotton 206%
Burlap 2.6%
Butter 18.8%
Weel Tops. 4%
Zinc 3%
0% Change
. 10
+ 10
Hides, Sill,
Tin, Rubber,
Coffee, Copper,
Stand of dep.
o
St. Scrap, exp.
o
Cocoa -0%
Tellow -4.1%
- 10
10
Dec. 6.
Apr. 21
Apt28
Dec. 6,
Apr.21
Apr28
1941
1944
1944
1941
1944
1944
*All commodities in index are now under some form of price control, except rosin and cotton.
Offer of the Secretary of the Trunsery
Dama Road - Subtotica
Regraded Unclassified
Chart
F
AVERAGE PRICES RECEIVED BY FARMERS
Indexes, August 1909-July 1914=100
PERCENT
PERCENT
All Farm Products
225
225
1944
200
200
1943
175
175
150
150
125
125
1941.
100
100
J F M A M J J A S 0 N D
PERCENT
PERCENT
PERCENT
Truck Crops
Feed Grains
Frult
200
225
350
1944
175
200
325
1944
1943.
150
175
300
1943,
275
125
150
1941
100
125
250
1941
1944
225
75
100
J F M A M J J A S o N D
1943
225
Cotton
75
200
200
175
50
1944
J F M A M J J A 5 o N o
175
250
Meat Animals
150
1941
150
1943
225
125
125
200
1943
19417
1944
100
100
175
75
J F M A M J J A 5 o N D
75
150
1941
J F M A M J J A s o N D
225
225
Food Grains
Poultry and Eggs
125
a F M A M J J A 5 o N D
250
82
200
200
1943
Dairy Products
1944
175
175
225
1944
150
1944
200
150
1943
1943
125
175
125
.1941
1941
100
100
150
1941
75
125
75
J F M A M J J A 5 o N D
J F M A M J J A S o N D
J F M A M J J A 5 o N D
Office of the Secretary of the Treasury
P-257-B
Division of - - Stativier
Chart 5
Regraded Unclassified
83
MAY 1 1944
Hon. Louis Ludlow,
Chairman, Treasury Sub-Committee
on Appropriations,
House of Representatives.
Dear Mr. Ludlow:
I an grateful for the copy of the Treasury
Appropriation Act for 1945 which you were kind
enough to send no.
I would like to take this opportunity to
thank you also for the cooperation and assistance
which you extended to us in connection with your
Committee's consideration of our estimates.
With kindest personal regards, I remain
Sincerely,
(Signed) H. Morgenthen, &
CRS/jm
4/28/44
CRS
prok
Regraded Unclassified
New Treasury appro 84
credition law. Couple -
Insents of
(PUBLIC LAW 293-78TH CONGRESS]
Louis
[CHAPTER 175-20 SESSION]
[H. R. 4133]
Ludlaw
AN ACT
Making appropriations for the Treasury and Post Office Departments for the
fiscal year ending June 30, 1945, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I-TREASURY DEPARTMENT
That the following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the Treasury Department
for the fiscal year ending June 30, 1945, namely:
OFFICE OF THE SECRETARY
Salaries: Secretary of the Treasury, Under Secretary of the
Treasury, Fiscal Assistant Secretary of the Treasury, two Assistant
Secretaries of the Treasury, and other personal services in the District
of Columbia, including the temporary employment of experts,
$412,500: Provided, That no part of the money appropriated by this
title shall be used to pay the salaries of more than eighteen messen-
gers assigned to duty in the Office of the Secretary.
Reimbursement to District of Columbia, benefit payments to White
House Police and Secret Service forces: To enable the Secretary of
the Treasury to reimburse the District of Columbia on a monthly
basis for benefit payments made from the revenues of the District
of Columbia to members of the White House Police force and such
members of the United States Secret Service Division as are entitled
thereto under the Act of October 14, 1940 (54 Stat. 1118), to the
extent that such benefit payments are in excess of the salary deduc-
tions of such members credited to said revenues of the District of
Columbia during the fiscal year 1945, pursuant to section 12 of the
Act of September 1, 1916 (39 Stat. 718), as amended, $25,000.
FOREIGN FUNDS CONTROL
Foreign funds control: For all expenses necessary in carrying out
the functions of the Secretary of the Treasury under sections 3 and
5 (b) of the Act of October 6, 1917, as amended (50 U.S. C. (App.)
3, and 50 U. S. C. (Suppl. 1941). 5 (b)), and any proclamations,
orders, regulations, or instructions issued thereunder; and in exercis-
ing fiscal, financial, banking, property-control, and related functions,
authorized by law, and administered by the Treasury Department
in foreign countries and arising out of military operations of the
United States; including personal services; printing; maintenance,
repair, and operation of a motor-propelled passenger-carrying
vehicle: and reimbursement of any other appropriation or other funds
of the United States or any agency, instrumentality, Territory, or
Regraded Unclassified
(Pvs. Law 20%)
2
3
E
possession thereof, including the Philippine Islands, and reimburse-
ment of any Federal Reserve bank for printing and other expendi-
hand trucks: ladders; miscellaneous hardware; streetcar fares not
tures; $4,000,000.
exceeding $650; thermometers; lavatory equipment and supplies;
DIVISION OF TAX RESEARCH
tools and sharpening same; laundry service; laboratory supplies and
equipment; removal of rubbish: postage; not to exceed $30,000 for
Salaries: For personal services in the District of Columbia, includ-
stationery for the Treasury Department and its several bureaus and
ing the employment of experts, $169,295.
offices, and field services thereof, except such bureaus and offices as
may be otherwise specifically provided for, including tags, labels,
OFFICE OF TAX LEGISLATIVE COUNSEL
and index cards, printed in the course of manufacturing, packing
Salaries: For personal services in the District of Columbia, includ-
boxes and other materials necessary for shipping stationery supplies,
ing the employment of experts, $103,300.
and cost of transportation of stationery supplies purchased free on
board point of shipment and of such supplies shipped from Wash-
DIVISION OF RESEARCH AND STATISTICS
ington to field offices; and other absolutely necessary articles, sup-
plies, and equipment not otherwise provided for; $250,000: Provided,
Salaries: For personal services in the District of Columbia,
That the appropriations for the Bureau of Accounts, Bureau of the
$181,500.
Public Debt, Internal Revenue Service, Procurement Division, Office
OFFICE OF GENERAL COUNSEL
of the Treasurer of the United States, Division of Disbursement,
and Foreign Funds Control for the fiscal year 1945 are hereby made
Salaries: For the General Counsel and other personal services in
available for the payment of items otherwise properly chargeable
the District of Columbia, $150,000.
to this appropriation, the provisions of section 6, Act of August 23,
1912 (31 U.S. C. 669), to the contrary notwithstanding.
DIVISION OF PERSONNEL
Printing and binding: For printing and binding for the Treasury
Salaries: For the Chief of the Division, and other personal serv-
Department and its several bureaus and offices, and field services
ices in the District of Columbia, $191,495.
thereof, except such bureaus and offices as may be otherwise specifi-
cally provided for, including materials for the use of the bookbinder,
OFFICE OF CHIEF CLERK
located in the Treasury Department, but not including work done at
the New York Customhouse bindery authorized by the Joint Com-
Salaries: For the Chief Clerk and other personal services in the
mittee on Printing in accordance with the Act of March 1, 1919
District of Columbia, $345,000.
(44 U.S. C. 111), $24,000.
MISCELLANEOUS AND CONTINGENT EXPENSES, TREASURY DEPARTMENT
CUSTODY OF TREASURY BUILDINGS
For miscellaneous and contingent expenses of the Office of the
Salaries of operating force: For the Superintendent of Treasury
Secretary and the bureaus and offices of the Department, including
Buildings and for other personal services in the District of Columbia,
operating expenses of the Treasury, Treasury Annex, Auditors', and
including the operating force of the Treasury Building, the Treasury
Liberty Loan Buildings; financial journals, purchase (including
Annex, the Library Loan Building, the Belasco Theatre Building,
exchange) of books of reference and lawbooks, technical and scientific
the Auditors' Building, and the west and south annexes thereof,
books, newspapers, and periodicals, expenses incurred in completing
$580,000.
imperfect series, library cards, supplies, and all other necessary
FISCAL SERVICE
expenses connected with the library; not exceeding $17,000 for travel-
ing expenses, including the payment of actual transportation and
BUREAU or ACCOUNTS
subsistence expenses to any person whom the Secretary of the Treas-
ury may from time to time invite to the city of Washington or else-
Salaries and expenses: For salaries in the District of Columbia
where for conference and advisory purposes in furthering the work
and all other expenses (except printing and binding) of the Bureau of
of the Department; freight, expressage, telegraph and telephone
Accounts, including contract stenographic reuniNg pervices, sta-
service: maintenance and repair of motortrucks and three passenger
tionery (not to exceed $10.000), supplies and equipment; purchase
automobiles (one for the Secretary of the Treasury and two for gen-
and exchange of lawbooks, books of reference, periodicals, and news-
eral use of the Department), all to be used for official purposes only;
papers; travel expenses, including expenses of attendance at meetings
file holders and cases; fuel, oils, grease, and heating supplies and
of organizations concerned with the work of the Bureau of Accounts,
equipment; gas and electricity for lighting, heating, and power pur-
$830,000.
poses, including material, fixtures, and equipment therefor; floor
Salaries and expenses, deposit of withheld taxes: For all necessary
covering and repairs thereto, furniture and office equipment, includ-
expenses incident to the deposit of withheld taxes in Government
ing supplies therefor and repairs thereto; purchase and repair of
depositories pursuant to the Current Tax Payment Act of 1943,
uniforms for elevator conductors; awnings, window shades, and fix-
including personal services in the District of Columbia; not to exceed
tures; cleaning supplies and equipment; drafting equipment; flags;
$47,000 for printing and binding; and reimbursement to Federal
she
Regraded Unclassified
E
5
(Pus. Liw 201.]
Reserve bester for printing and other secureary expetives, $675,000.
Payment of unclaimed moneys: To enable the Secretary of the
Printing and binding: For printing and binding for the Bureau of
Treasury to meet any expenditures of the character formerly charge-
Accounts, $32,000.
able to the appropriation accounts abolished under section 17 of the
Division of Disbursement, salaries and expenses: For all necessary
Permanent Appropriation Repeal Act of 1934, approved June 26,
salaries and expenses, except printing and binding, of the Division
1934, payable from the funds held by the United States in the trust
of Disbursement, including personal services in the District of Colum-
fund receipt account "Unclaimed moneys of individuals whose where-
bia, stationery, and travel. $3,750,000: Provided, That with the
abouts are unknown", $15,000.
approval of the Director of the Bureau of the Budget there may be
transferred to this appropriation and to the appropriation "Print-
BUREAU OF THE PUBLIC DEBT
ing and binding, Division of Disbursement" from funds respectively
available for such purposes for the Agricultural Adjustment Agency,
Salaries and expenses: For necessary salaries and expenses con-
Federal Housing Administration, Federal Public Housing Authority,
nected with the administration of any public debt issues and United
Federal Surplus Commodities Corporation, Federal Prison Industries,
States paper currency issnes with which the Secretary of the Treasury
Railrond Retirement Board, United States Maritime Commission, the
is charged, including the purchase of lawbooks, directories, books of
Federal Crop Insurance Corporation, the Commodity Credit Cor-
reference, periodicals, newspapers, and stationery (not to exceed
poration, the Food Distribution Administration, and the Farm
$45,000), the maintenance, operation, and repair of a motor-propelled
Security Administration, such sums as may be necessary to cover the
passenger-carrying vehicle for use of the Destruction Committee,
expense incurred in performing the function of disbursement therefor.
and personal services in the District of Columbia, $5,900,000.
Printing and binding: For printing and binding, Division of Dis-
Printing and binding: For printing and binding for the Bureau
bursement, including the cost of transportation to field offices of
of the Public Debt, $65,000.
Distinctive paper for United States securities: For distinctive
printed and bound material and the cost of necessary packing boxes
and packing materials, $82,500.
paper for United States currency, including transportation of paper,
Contingent expenses, public moneys: For contingent expenses under
traveling, mill, and other necessary expenses, and salaries of employ-
ees and allowance, in lieu of expenses, of officer or officers detailed
the requirements of section 3653 of the Revised Statutes (31 U. S. C.
545), for the collection, snfekeeping, transfer, and disbursement of
from the Treasury Department, not exceeding $50 per month each
the public money, transportation of notes, bonds, and other securities
when actually on duty, $929.000: Provided, That in order to foster
of the United States, transportation of gold coin and gold certificates
competition in the manufacture of distinctive paper for United States
transferred to Federal Reserve banks and branches, United States
securities, the Secretary of the Treasury is authorized, in his discre-
tion, to split the award for such paper for the fiscal year 1945 between
mints and assay offices, and the Treasury, after March 9, 1933, actual
expenses of examiners detailed to examine the books, accounts, and
the two bidders whose prices per pound are the lowest received after
advertisement.
money on hand at the several depositories, including national banks
acting as depositories under the requirements of section 3649, Revised
Expenses of loans: The indefinite appropriation "Expenses of
Statutes (31 U. S. C. 518), also including examinations of cash
loans, Act of September 24, 1917, BS amended and extended" (31
accounts at mints, $400,000.
U. S. C. 760, 761), shall not be used during the fiscal year 1945 to
Recoinage of silver coins: To enable the Secretary of the Treasury
supplement the appropriations otherwise provided for the current
to continue the recoinage of worn and uncurrent subsidiary silver
work of the Bureau of the Public Debt. and the amount obligated
coins of the United States now in the Treasury or hereafter received,
under such indefinite appropriation during such fiscal year shall not
and to reimburse the Treasurer of the United States for the difference
exceed $109,500,000 to be expended as the Secretary of the Treasury
between the nominal or face value of such coins and the amount the
may direct: Provided, That the proviso in the Act of June 16, 1921
same will produce in new coins, $200.000.
(31 U. C. 761), limiting the availability of this appropriation for
Relief of the indigent, Alaska: For the payment to the United
expenses of operations on account of any public debt issue to the
States district judges in Alaska (not to exceed 10 per centum of the
close of the fiscal year next following the fiscal year in which such
receipts from licenses collected outside of incorporated towns in
issue was made, shall not apply to savings bond transactions handled
Alaska), to be expended for the relief of persons in Alaska who are
by the Federal Reserve banks for account of the Secretary of the
indigent and incapacitated through nonage, old age, sickness, or
Treasury.
accident, $20,000.
OFFICE OF THE TREASURER OF THE UNITED STATES
Refund of moneys erroneously received and covered: To enable
the Secretary of the Treasury to meet any expenditures of the char-
Salaries: For personal services in the District of Columbia, Office
acter formerly chargeable to the appropriation accounts abolished
of the Treasurer of the United States, $4,075,000: Provided, That
under section 18 of the Permanent Appropriation Repeal Act of
with the approval of the Director of the Bureau of the Budget, there
1934, approved June 26, 1934, and any other collections erroneously
may be transferred to this appropriation and to the appropriations
received and covered which are not properly chargeable to any other
"Printing and binding, Office of the Treasurer of the United States"
appropriation, $75,000.
and "Contingent expenses, Office of the Treasurer of the United
Regraded Unclassified
(Pus. 2ml
6
7
(Pus. LAW m.)
States", from funds respectively available for such purposes for
laws, for the purchase of arms, ammunition, and accessories; not to
the Agricultural Adjustment Agency, Home Owners' Loan Corpora-
exceed $700,000 for personal services in the District of Columbia
tion, Tennessee Valley Authority, Federal Farm Mortgage Corpora-
exclusive of ten persons from the field force authorized to be detailed
tion, Reconstruction Finance Corporation, Federal land banks and
under section 525 of the Tariff Act of 1930, and reimbursement, at
other banks and corporations under the supervision of the Farm
not to exceed 3 cents per mile, of employees for travel performed by
Credit Administration, Railroad Retirement Board, Federal Crop
them in privately owned automobiles while engaged in inspecting,
Insurance Corporation, United States Maritime Commission, Food
guarding, admeasuring, examining, sampling, investigating, and
Distribution Administration, Farm Security Administration, Federal
storekeeping duties within the limits of their official station,
Housing Administration, Federal Public Housing Authority, Com-
$25,500,000.
modity Credit Corporation, and corporations and banks under the
Printing and binding: For printing and binding, Bureau of Cus-
Federal Home Loan Bank Administration, such sums as may be
toms, including the cost of transportation to field offices of printed
necessary to cover the expenses incurred on account of such respective
and bound material and the cost of necessary packing boxes and
activities in clearing of checks, servicing of bonds, handling of collec-
packing materials, $85,000.
tions, and rendering of accounts therefor.
Refunds and drawbacks (indefinite appropriation): For the refund
Contingent expenses, Office of the Treasurer of the United States:
or payment of customs collections or receipts, and for the payment
For all necessary expenses, other than personal services and printing
of debentures or drawbacks, bounties, and allowances, ns authorized
and binding, including travel expenses and purchase of periodicals
by law, there is hereby made available such amount as may be
and books of reference, $400,000.
necessary.
Salaries (reimbursable): For personal services in the District of
OFFICE OF THE COMPTROLLED or THE CURRENCY
Columbia, in redeeming Federal Reserve notes, $85,000, to be reim-
bursed by the Federal Reserve banks.
Salaries: Comptroller of the Currency and other personal services
Printing and binding: For printing and binding for the Office of
in the District of Columbia, $276,600.
the Treasurer of the United States, $115,000.
Printing and binding: For printing and binding for the Office of
the Comptroller of the Currency, $17,000.
BUREAU OF CUSTOMS
BUREAU OF INTERNAL REVENUE
Salaries and expenses: For collecting the revenue from customs,
for enforcement, ns specified in Executive Order Numbered 9083, of
Salaries and expenses: For salaries and expenses in connection with
certain navigation laws, for the detection and prevention of frauds
the assessment and collection of internal-revenue taxes and the admin-
upon the customs revenue, and not to exceed $100,000 for the securing
istration of the internal-revenue laws, including the administration
of evidence of violations of the customs and navigation laws; for
of such provisions of other laws as are authorized by or pursuant to
expenses of transportation and transfer of customs receipts from
law to be administered by or under the direction of the Commis-
points where there are no Government depositories; not to exceed
sioner of Internal Revenue, including one stamp agent (to be reim-
$84,500 for foreign living allowances; not to exceed $500 for subscrip-
bursed by the stamp manufacturers) and the employment of experts:
tions to newspapers: not to exceed $85,000 for stationery; not to
the securing of evidence of violations of the Acts, the cost of chemical
exceed $12,000 for improving, repairing, maintaining, or preserving
analyses made by others than employees of the United States and
buildings, inspection stations, office quarters, including living quarters
expenses incident to such chemists testifying when necessary; tele-
for officers, sheds, and sites along the Canadian and Mexican borders
graph and telephone service, postage, freight, express, necessary ex-
acquired under authority of the Act of June 26, 1930 (19 U.S.C.68);
penses incurred in making investigations in connection with the enroll-
and for the purchase (not to exceed one hundred and fifty at a price
ment or disbarment of practitioners before the Treasury Department
of not exceeding $1,300 each), maintenance, repair, and operation
in internal-revenue matters, expenses of seizure and sale, and other
of motor-propelled passenger-carrying vehicles when necessary for
necessary miscellaneous expenses, including stenographic reporting
official use in field work; for the payment of extra compensation
services: for the acquisition of property under the provisions of title
earned by customs officers or employees for overtime services, at the
III of the Liquor Law Repeal and Enforcement Act, approved August
expense of the parties in interest, in accordance with the provisions
27, 1935 (49 Stat. 872-881), and the operation, maintenance, and
of section 5 of the Act approved February 13, 1911, as amended by
repair of property acquired under such title III; for the purchase (not
the Act approved February 7. 1920, and section 451 of the Tariff Act,
to exceed thirty-four), hire, maintenance, repair, and operation of
1930, as amended (19 U. S. C. 261, 267, and 1451), the receipts from
motor-propelled or horse-drawn passenger-carrying vehicles when
such overtime services to be deposited as a refund to the appropria-
necessary, for official use of the Alcohol Tax and Intelligence Units in
tion from which such overtime compensation is paid, in accordance
field work; printing and binding (not to exceed $2,000,000) and the
with the provisions of section 524 of the Tariff Act of 1930, as
procurement of such supplies, stationery (not to exceed $1.400,000),
amended; for the cost of seizure, storage, and disposition of any
equipment, furniture, mechanical devices, laboratory supplies, peri-
or any other conveyance seized under the provisions of the customs
merchandise, vehicle and team, automobile, boat, air or water craft,
odicals, newspapers for the Alcohol Tax Unit, ammunition, lawbooks
and books of reference, and such other articles as may be necessary,
Regraded Unclassified
8
9
(Por Law
(Pye
$143,400,000, of which amount not to exceed $18,910,000 may be
evidence of violations of the aforementioned laws and regilations
expended for personal services in the District of Columbia: Provided,
promulgated thereunder; the costs of chemical analyses made by
That not more than $100,000 of the total amount appropriated herein
others than employees of the United States: the purchase of such
may be expended by the Commissioner of Internal Revenue for
supplies, equipment, mechanical devices, books, stationery (not to
detecting and bringing to trial persons guilty of violating the internal-
exceed $6,000). and such other expenditures as may be necessary
revenue laws or conniving at the same, including payments for infor-
in the several field offices: cost incurred by officers and employees of
the Bureau of Narcoties in the seizure, forfeiture, storage, and dis-
mation and detection of such violation.
Refunds and payments of processing and related taxes: For
position of property under the Act of August 9, 1039 (49 U. S. C.
781-788) and the internal-revenue laws; hire, maintenance, repair,
refunds and payments of processing and related taxes as authorized
and operation of motor-propelled or horse-drawn passenger-carrying
by titles IV and VII, Revenue Act of 1936, as amended; for refunds
vehicles when necessary for official use in field work: purchase of arms
of taxes collected (including penalties and interest) under the Cotton
and ammunition; in all, $1,338,407. of which amount not to exceed
Act of April 21, 1934, as amended (48 Stat. 598), the Tobacco Act
$195,964 may be expended for personal services in the District of
of June 28, 1934, as amended (48 Stat. 1275), and the Potato Act
Columbia: Provided, That not exceeding $10,000 may be expended for
of August 24, 1935 (49 Stat. 782), in accordance with the Second
the collection and dissemination of information and appeal for law
Deficiency Appropriation Act, fiscal year 1938 (52 Stat. 1150), as
observance and law enforcement, including cost of printing, purchase
amended, and as otherwise authorized by law; and for redemption
of newspapers, and other necessary expenses in connection therewith
of tax stamps purchased under the aforesaid Tobacco and Potato
and not exceeding $1,500 for attendance at meetings concerned with
Acts, there in hereby continued available, during the fiscal year 1945,
the work of the Bureau of Narcoties: Provided further, That not
the unexpended balance of the funds made available to the Treasury
exceeding $10,000 may be expended for services or information looking
Department for these purposes for the fiscal year 1944 by the Treas-
toward the appreliension of nareotic law violators who are fugitives
ury Department Appropriation Act, 1944.
from justice: Provided further, That moneys expended from this
Additional income tax on railroads in Alaska: For the payment to
appropriation for the purchase of nareotics including maribuana,
the Treasurer of Alaska of an amount equal to the tax of 1 per
and subsequently recovered shall be reimbursed to the appropriation
centum collected on the gross annual income of all railroad cor-
for enforcement of the narcotic and marihuana laws current at tittle
porations doing business in Alaska, on business done in Alaska,
of the deposit.
which tax is in addition to the normal income tax collected from such
Printing and binding: For printing and binding for the Burenu
corporations on net income, the amount of such additional tax to be
of Narcotics, $4,000.
applicable to general Territorial purposes, $21.850.
Refunding internal-revenue collections (indefinite appropriation):
BUREAU OF ENGRAVING AND PRINTING
For refunding internal-revenue collections, ns provided by law, includ-
For the work of engraving and printing, exclusive of repay work,
ing the payment of claims for the prior fiscal years and payment of
during the fiscal year 1945, United States currency and internal-
accounts arising under "Allowance or draw-back (Internal Reve-
revenue stamps, including opium orders and special-tax stamps
nue)", "Redemption of stamps (Internal Revenue)", "Refunding
required under the Act of December 17, 1914 (26 U.S. C. 1040, 1388),
legacy taxes, Act of March 30, 1928", and "Repayment of taxes on
checks, drafts, and miscellaneous work, as follows:
distilled spirits destroyed by casualty", there is hereby appropriated
Salaries and expenses: For the Director, two Assistant Directors,
such amount ns may be necessary: Provided, That a report shall be
and other personal services in the District of Columbia, including
made to Congress by internal-revenue districts and alphabetically
wages of rotary press plate printers at per diem rates and all other
arranged of all disbursements hereunder in excess of $500 as required
plate printers at piece rates to be fixed by the Secretary of the
by section 3 of the Act of May 29, 1928 (see. 3776, I. R. C.), includ-
Treasury, not to exceed the rates usually paid for such work; and
ing the names of all persons and corporations to whom such pay-
all other necessary expenses, except printing and binding, including
ments are made, together with the amount paid to each.
engravers' and printers' materials and other materials, including
distinctive and nondistinctive paper, except distinctive paper for
BUREAU OF NARCOTICS
United States currency and Federal Reserve bank currency; purchase
Salaries and expenses: For expenses to enforce sections 2550-2565;
of tabulating machine card checks: equipment of, repairs to, and
2567-2571; 2590-2608; 3220-3228; 3230-3238 of the Internal Revenue
maintenance of buildings and grounds and minor alterations to build-
Code: the Narcotic Drugs Import and Export Act, ns amended (21
ings; periodicals, examples of engraving and printing, including
U. S. C. 171-184) the Act of June 14, 1930 (5 U. S. C. 282-282c
foreign securities and stamps, and books of reference, not to exceed
and 21 U. S. C. 197-198) and the Opium Poppy Control Act of
$500; traveling expenses not to exceed $15,000; articles approved by
1942 (21 U. S. C. Supp. II, 188-188n), including the employment
the Secretary of the Treasury ns being necessary for the protection
of executive officers, attorneys, agents, inspectors, chemists, super-
of the person of employees, not to exceed $2,200; stationery, not to
visors, clerks, messengers, and other necessary employees in the field
exceed $5,000; transfer to the Bureau of Standards for scientific
and in the Bureau of Narcotics in the District of Columbia, to be
investigations in connection with the work of the Bureau of Engrav-
appointed as authorized by law; the securing of information and
Regraded Unclassified
10
11
(Pus LAW we.)
IPve law 201.1
ing and Printing, not to exceed $15,000; and maintenance and driving
maintenance, repair, and operation of motor-propelled passenger-
of two motor-propelled passenger-carrying vehicles; $10,000,000, to
earrying vehicles, and the purchase of arms and ammumition and
be expended under the direction of the Secretary of the Treasury.
miscellaneous equipment, $600,000 Provided, That not to exceed
Printing and binding: For printing and binding for the Bureau
$100,000 of the appropriation "Salaries and expenses, Buronn of
of Engraving and Printing, $5,500.
Engraving and Printing", may be transferred to this appropriation
During the fiscal year 1945 all proceeds derived from work per-
to cover service rendered such Bureau in connection with the protec-
formed by the Bureau of Engraving and Printing, by direction
tion of currency, bonds, stamps, and other papers of value the cost
of the Secretary of the Treasury, not covered and embraced in the
of producing which is not covered and embraced in the direct appro-
appropriations for such Bureau for such fiscal year, instead of being
priations for such Bureau: Provided further, That the Secretary of
covered into the Treasury ns miscellaneous receipts, as provided by
the Treasury may detail two agents of the Secret Service to supervise
the Act of August 4, 1886 (31 U. S. C. 176), shall be credited when
such force,
received to the appropriations for such Bureau for the fiscal year
Printing and binding: For printing and binding for the Secret
Service Division, $7,000.
1945.
SECRET SERVICE DIVISION
BUREAU OF THE MINT
Salaries: For the Chief of the Division and other personal services
Salaries and expenses, Office of the Director: For personal services
in the District of Columbia, $85,000.
in the District of Columbia and for assay laboratory chemicals,
Suppressing counterfeiting and other crimes: For salaries and other
fuel, materials, balances, weights, stationery (not to exceed $700),
expenses under the authority or with the approval of the Secretary
books, periodicals, specimens of coins, ores, and travel and other
of the Treasury in detecting, arresting, and delivering into the custody
expenses incident to the examination of mints, visiting mints for the
of the United States marshal or other officer having jurisdiction,
purpose of superintending the annual settlement, and for the collection
dealers and pretended dealers in counterfeit money, persons engaged
of statistics relative to the annual production and consumption of
in counterfeiting, forging, and altering United States notes, bonds,
the precious metals in the United States, $168,000.
national-bank notes, Federal Reserve notes, Federal Reserve bank
Transportation of bullion and coin: For transportation of bullion
notes, and other obligations and securities of the United States and of
and coin, by registered mail or otherwise, between mints, assay
foreign governments (including endorsements thereon and assign-
offices, and bullion depositories, $12,800, including compensation of
ments thereof), na well as the coins of the United States and of foreign
temporary employees and other necessary expenses.
governments, and persons committing other crimes against the laws of
Salaries and expenses, mints and assay offices: For compensation
the United States relating to the Treasury Department and the sev-
of officers and employees of the mints at Philadelphia, Pennsylvania;
eral branches of the public service under its control; purchase (not to
San Francisco, Culifornia; and Denver, Colorado; the assay offices
exceed twenty), hire, maintenance, repair, and operation of motor-
nt New York, New York; and Seattle, Washington, and the bullion
propelled passenger-carrying vehicles when necessary; purchase of
depositories at Fort Knox, Kentucky; and West Point, New York,
Arms and ammunition: stationery (not to exceed $7,500); traveling
including necessary personal services for carrying out the provisions
expenses; and for no other purpose whatsoever, except in the perform-
of the Gold Reserve Act of 1934 and the Silver Purchase Act of 1934,
nnce of other duties specifically authorized by law, and in the protec-
and any Executive orders, proclamations, and regulations issued
tion of the person of the President and the members of his immediate
thereunder, and for incidental and contingent expenses, including
family and of the person chosen to be President of the United States,
traveling expenses, stationery (not to exceed $2,900). new machinery
*$1,629,090: Provided, That of the amount herein appropriated not to
and repairs, arms and ammunition, purchase and maintenance of
exceed $15,000 may be expended in the discretion of the Secretary of
uniforms and accessories for guards, protective devices, and their
the Treasury for the purpose of securing information concerning
maintenance, training of employees in use of firearms and protective
violations of the laws relating to the Treasury Department, and for
devices, purchase of two and the maintenance, repair, and operation
services or information looking toward the apprehension of criminals.
of three motor-propelled passenger-carrying vehicles, cases and
White House Police: For one captain, one inspector, four lieuten-
enameling for medals manufactured, net wastern in melting and
ants, six sergeants, and one hundred and eight privates, at rates of pay
refining and in coining departments, loss on safe of sweeps arising
provided by law, $300,000, notwithstanding the provisions of the Act
from the treatment of bullion and the manufacture of coins, not to
of April 22, 1940 (8 U.S. 62).
exceed $500 for the expenses of the annual assay commission, and not
For uniforming and equipping the White House Police, including
exceeding $1,000 for the acquisition, at the dollar face amount or
the purchase, issue, and repair of revolvers, and the purchase and
otherwise, of specimen and rare coins, including United States and
issue of ammunition and miscellaneous supplies, to be procured in
foreign gold coins and pieces of gold used as, or in lieu of, money,
such manner as the Presi lent in his discretion may determine, $9,000.
and ores, for addition to the Government's collection of such coins,
Salaries and expenses, guard force, Treasury buildings: For sala-
pieces, and ores; $5,500,000.
ries and expenses of the guard force for Treasury Department build-
Printing and binding: For printing and binding for the Bureau
ings in the District of Columbia, including the Bureau of Engraving
of the Mint, $7,000.
and Printing, including purchase, repair, and cleaning of uniforms,
Regraded Unclassified
12
13
2011
(Pva. LAW 200.)
PROCUREMENT DIVISION
sonal services in the District of Columbia not to exceed $1,250,000:
Salaries and expenses: For the Director of Procurement and other
Provided further, That per diem employees engaged in work in con-
personal services in the District of Columbia and in the field service,
nection with operations of the fuel vards may be paid rates of pay
and for miscellaneous expenses, including office supplies and mate-
approved by the Secretary of the Trensury not exceeding current
rates for similar services in the District of Columbia: Provided 148-
rints, stationery (not to exceed $27,500), purchase of motortrucks and
ther, That the term "fuel" shall be held to include "fuel oil": Pro-
maintenance and operation of such trucks and motor-propelled pas-
senger-carrying vehicles, telegrams, telephone service, traveling
vided further, That the reconditioning and repair of surplus prop-
erty and equipment for disposition or reissue to Government serv-
expenses, office equipment, fuel, light, electric current, and other
expenses for carrying into effect regulations governing the procure-
ice, may be made at cost by the Procurement Division, payment there-
ment, warehousing, and distribution by the Procurement Division of
for to be effected by charging the proper appropriation and credit-
ing the general supply fund: Provided further, That all orders for
the Treasury Department of property, equipment, stores, and sup-
printing and binding for the Treasury Department, exclusive of work
plice in the District of Columbia and in the field (including not to
performed in the Bureau of Engraving and Printing and exclusive
exceed $500 to settle claims for damages caused to private property
of such printing and binding ns may under existing law be procured
by motor vehicles used by the Procurement Division). $1,190,000:
by field offices under authorization of the Joint Committee on Print-
Provided. That the Secretary of the Treasury is authorized and
ing. shall be placed by the Director of Producement in accord with
directed during the fiscal year 1945 to transfer to this appropriation
the provisions of existing law.
from any appropriations OF funds available to the several depart-
Repairs to typewriting machines (except bookkeeping and billing
ments and establishments of the Government for the fiscal year 1945
machines) in the Government service in the District of Columbia and
such amounts as may be approved by the Director of the Bureau
areas ndjacent thereto may be made at cost by the Procurement
of the Budget, not to exceed the sum of (a) the amount of the
Division, payment therefor to be effected by charging the proper
annual compensation of employees who may be transferred or detailed
appropriation and crediting the general supply fund.
to the Pronourement Division, respectively, from any such department
No part of any money appropriated by this or any other Act shall
or establishment, where the transfer or detail of such employees is
he used during the fiscal year 1945 for the purchase. within the con-
incident to IL transfer of n. function or functions to that Division and
tinental limits of the United States. of any standard typewriting
(b) such amount na the Director of the Bureau of the Budget may
machines (except bookkeeping. billing. and electric machines) at a
determine to be necessary for expenses other than personal services
price in excess of the following for models with earringes which will
incident to the proper carrying out of functions so transferred:
accommodate paper of the following widths to wit: Ten inches (corre-
Provided further, That when there has been or shall be transferred
spondence models). $70; twelve inches, S75: fourteen inches, $77.50;
from any agency of the Government to the Procurement Division any
sixteen inches, $82.50; eighteen inches, $87.50: twenty inches, S94;
function of warehousing, and the agency from which such function
twenty-two inches, $95; twenty-four inches, $97.50: wenty-six inches,
is being transferred is authorized at the time of such transfer to
$103.50: twenty-eight inches. $104: thirty inches, $105; thirty-two
perform functions of procurement, warehousing. or distribution of
inches, $107.50; or, for standard typewriting machines distinctively
property, equipment, stores, or supplies for non-Federal agencies the
quiet in operation, the maximum prices shall be as follows for models
Procurement Division is authorized during the fiscal year 1945 to con-
with carriages which will accommodate paper of the following widths,
tinue the performance of such functions for such non-Federal agencies
to wit: Ten inches, 880; twelve inches, $85; fourteen inches, $90;
where such functions are to be discontinued by the agency from
eighteen inches, $95,
which the warebousing function has been transferred. and the
Federal property utilization: For necessary expenses of the Pro-
receipts, including surcharge, for all issues to and all advances by
curement Division in connection with the transportation, handling,
all non-Federal agencies shall be credited to the general supply
warehousing, safeguarding. rehabilitating, transferring to Govern-
fund: Provided further, That payments during the fiscal year 1945
ment agencies, and otherwise disposing of supplies and equipment,
to the general supply fund for materials, and supplies (including
including personal services in the District of Columbia and elsewhere,
fuel), and services, and overhead expenses for all issues shall be
stationery (not to exceed $45,000). purchase (including exchange) of
made on the hooks of the Treasury Department by transfer and
books of reference and periodicals, printing and binding (not to
counterwarrants prepared by the Procurement Division of the Treas-
exceed $40,000), and advertising, $6,250,000.
ury Department and countersigned by the Compiroller General,
Printing and binding: For printing and binding for the Procure-
such warrants to be based solely on itemized invoices prepared by
ment Division, including printed forms and miscellaneous items for
the Procurement Division at issue prices to be fixed by the Director
general use of the Treasury Department, the cost of transportation
of Procurement: Provided further, That advances received pursuant
to field offices of printed and bound material and the cost of neces-
to law (31 U. S. C. 686) from departments and establishments of
sary packing boxes and packing materials, $150,000, together with not
the United States Government and the government of the District
to exceed $4,000 to be transferred from the general supply fund,
of Columbia during the fiscal year 1945 shall be credited to the
Treasury Department.
general supply fund: Provided further, That during the fiscal year
1945 there shall be available from the general supply fund for per-
Regraded Unclassified
[Pus. Law 290.)
14
15
(Pvs. Live 200.)
Appropriations of the Treasury Department for the fiscal year
exchange of lawbooks, and books of reference; newspapers, not
1945 shall be available, in accordance with the Standardized Govern-
exceeding $200; expenses, except membership fees, of attendance at
ment Travel Regulations, the Subsistence Expense Act of 1926, ax
meetings or conventions concerned with postal affairs, when incurred
amended (5 S. C., ch. 16), and the Act of February 14, 1981, as
on the written authority of the Postmaster General, not exceeding
amended (5 U. S. C. 73a), for the payment of travel expenses to and
$2,000; and expenses of the purchasing agent and of the Solicitor
from their homes or regular places of business and per diem in lieu
and attorneys connected with his office while traveling on business
of subsistence at place of employment of persons employed inter-
of the Department, not exceeding $1,200; and other expenses not
mittently away from their homes or regular places of business by
otherwise provided for; $131,900.
the Treasury Department as consultants and receiving compensation
For printing and binding for the Post Office Department, including
on a per diem when actually employed basis.
all of its bureaus, offices, institutions, and services located in Wash-
No part of any appropriation or authorization in this Act shall be
ington, District of Columbia, and elsewhere, $1,350,000.
used to pay any part of the salary or expenses of any person whose
Appropriations hereinafter made for the field service of the Post
salary or expenses are prohibited from being paid from any appro-
Office Department. except as otherwise provided. shall not be
printion or authorization in any other Act.
expended for any of the purposes hereinbefore provided for on account
This title may be cited as the "Treasury Department Appropria-
of the Post Office Department in the District of Columbia: Provided,
tion Act, 1945".
That the actual and necessary expenses of officials and employees of
the Postal Office Department and Postal Service, when traveling on
TITLE II-POST OFFICE DEPARTMENT
official business, may be paid from the appropriations for the service
in connection with which the travel is performed, and appropriations
The following sums are appropriated in conformity with the Act
for the fiscal year 1945 shall be available therefor: Provided further,
of July 2, 1836 (5 U. S. C. 380, 30 U. S. C, 786), for the Post Office
That appropriations hereinafter made, except such ns are exclusively
Department for the fiscal year ending June 30, 1945, namely:
for payment of compensation, shall be immediately available for
expenses in connection with the examination of estimates for appro-
POST OFFICE DEPARTMENT, WASHINGTON, DISTRICT OF COLUMBIA
priations in the field including per diem allowances in lieu of actual
OFFICE OF THE POSTMASTER GENERAL
expenses of subsistence,
Salaries: For the Postmaster General and other personal services
FIELD SERVICE, Post OFFICE DEPARTMENT
$278,500. in the office of the Postmaster General in the District of Columbia,
OFFICE OF THE POSTMASTER GENERAL
SALARIES IN BUREAUS AND OFFICES
Travel expenses, Postmaster General and Assistant Postmasters
For personal services in the District of Columbia in bureaus and
General: For travel and miscellaneous expenses in the Postal Service,
offices of the Post Office Department in not to exceed the following
offices of the Postmaster General and Assistant Postmasters General,
amounts, respectively:
$3,000.
Office of Budget and Administrative Planning, $40,430.
Personal or property damage claims: To enable the Postmaster
Office of the First Assistant Postmaster General, $787,500.
General to pay claims for damages, occurring during the fiscal year
Office of the Second Assistant Postmaster General, $648,100.
1945, or in prior fiscal years, to persons or property in accordance with
Office of the Third Assistant Postmaster General, $1,013,000.
the provisions of the Deficiency Appropriation Act, approved June
Office of the Fourth Assistant Postmaster General, $500,000.
16, 1921 (5 U. S. C. 392), as amended by the Act approved June 22,
Office of the chief inspector, $341,233.
Office of the Solicitor for the Post Office Department, $140,000.
1934 (48 Stat. 1207), $75,000.
Adjusted losses and contingencies: To enable the Postmaster Gen-
Office of the purchasing agent, $69,000.
eral to pay to postmasters, Navy mail clerks, and assistant Navy mail
Bureau of Accounts, $318,000.
clerks or credit them with the amount ascertained to have been lost or
destroyed during the fiscal year 1945, or prior fiscal years, through
CONTINGENT EXPENSES, Post OFFICE DEPARTMENT
burglary, fire, or other unavoidable casualty resulting from no fault
For contingent and miscellaneous expenses: including stationery
or negligence on their part, as authorized by the Act approved March
and blank books, index and guide cards, folders and binding devices,
17, 1882, as amended, $55,000.
furniture and filing cabinets and repairs thereto; purchase of tools
purchase of free penalty envelopes; telegraph and telephone service,
OFFICE OF СШЕР INSPECTOR
and electrical supplies; maintenance of two motor-driven passenger-
Salaries of inspectors: For salaries of fifteen inspectors in charge
addressed carrying vehicles; floor coverings; postage stamps for correspondence
of divisions and seven hundred and ninety-five inspectors, $3,273,400.
Aires Convention of the Universal Postal Union; purchase and
abroad, which is not exempt under article 49 of the Buenos
Traveling and miscellaneous expenses: For traveling expenses of
inspectors, inspectors in charge, the chief post-office inspector, and
the assistant chief post-office inspector, and for the traveling expenses
Regraded Unclassified
(Pvs law
16
17
(Pts. Lew mL)
of four clerks performing stenographie and clerical assistance to
tection of post offices of the first and second classes, and the business
post-office inspectors in the Investigation of important fraud cases;
appropriations, $2,820,000.
conducted in connection therewith, not provided for in other
for tents, exhibits, documents. photographs, office, and other necessary
expense incurred by post-office inspectors in connection with their
Village delivery service: For village delivery service in towns and
official investigations, including necessary miscellaneous expenses of
villages having post offices of the second or third class, and in
division headquarters, and not to exceed $500 for books of reference
communities adjacent to cities having city delivery, $1,261,000.
needed in the operation of the Post Office Inspection Service,
Detroit River service: For Detroit River postal service, $11,060.
$962,183: Provided, That not exceeding $14,600 of this sum shall be
Carfare and bicycle allowance: For carfare and bicycle allowance,
available for transfer by the Postmaster General to other depart-
including special-delivery carfare, cost of transporting carriers by
ments and independent establishments for chemical and other
privately owned automobiles to and from their routes, at rates not
investigations.
exceeding regular streetcar or bus fare, and purchase, maintenance,
Clerks, division headquarters: For compensation of three hundred
and exchange of bicycles, $1,670,000.
and forty-three clerks nt division headquarters and other posts of
City delivery carriers: For pay of letter carriers, City Delivery
duty of post-office inspectors, $1,026,716.
Payment of rewards: For payment of rewards for the detection.
$199,000,000. Service, and United States Official Mail and Messenger Service,
arrost, and conviction of post-office burglars, robbers, highway mail
robbers, and persons mailing or causing to be mailed any bomb,
$15,750,000. Special-delivery fees: For fees to special-delivery messengers,
infernal machine, or mechanical, chemical, or other device or com-
Rural Delivery Service: For pay of rural carriers, auxiliary car-
position which may ignite, or explode, $55,000: Provided, That
riers, substitutes for rural carriers on annual and sick leave, clerks
rewards may be paid in the discretion of the Postmaster General,
in charge of rural stations, and tolls and ferriage, Rural Delivery
when an offender of the classes mentioned was killed in the act of
Service, and for the incidental expenses thereof, $107,690,000, of
committing the crime or in resisting lawful arrest: Provided further,
which not less than $200,000 shall be available for extensions and
That no part of this suru shall be used to pay any rewards at rates
new service.
in excess of those specified in Post Office Department Order 15142.
dated February 19, 1941: Provided further, That of the amount
OFFICE OF THE SECOND ASSISTANT POSTMASTER GENERAL
herein appropriated not to exceed $20,000 may be expended in the
discretion of the Postmaster General. for the purpose of securing
Star-route service: For inland transportation by star routes
information concerning violations of the postal laws and for services
(excepting service in Alaska), including temporary service to newly
established offices, $19,600,000.
and information looking toward the apprehension of criminals.
Star Route and Air Mail Service, Alaska For inland transportation
OFFICE OF THE FIRST ASSISTANT POSTMASTER GENERAL
by Star Route and Air Mail Service in Alaska, $500,000.
Powerboat service: For inland transportation by steamboat or
Compensation to postmasters: For compensation to postmasters,
other powerboat routes, including ship, steamboat, and way letters,
including compensation as postmaster to persons who, pending the
$570,000.
designation of an acting postmaster, assume and properly perform
Railroad transportation and mail messenger service: For inland
the duties of postmaster in the event of a vacancy in the office of
transportation by railroad routes and for mail messenger service,
postmaster of the third or fourth class, and for allowances for rent.
$138,180,000 : Provided, That separate accounts be kept of the amount
light, fuel, and equipment to postmasters of the fourth class,
expended for mail messenger service.
$65,800,000.
Railway Mail Service: For fifteen division superintendents, fifteen
Compensation to assistant postmasters: For compensation to assist-
assistant division superintendents, two assistant superintendents at
ant postmasters at first- and second-class post offices, $11,128,500.
large, one hundred and twenty chief clerks, one hundred and twenty
Clerks, first- and second-class post offices: For compensation to
assistant chief clerks, clerks in charge of sections in the offices of
clerks and employees at first- and second-class post offices, including
division superintendents, railway postal clerks, substitute railway
auxiliary clerk hire at summer and winter post offices, printers,
postal clerks, joint employees, and laborers in the Railway Mail
mechanics, skilled laborers, watchmen, messengers, laborers, and
Service, $80,248,000.
substitutes, $309,970,500.
Railway postal clerks, travel allowance: For travel allowance to
Contract station service: For contract station service. $2,700,000.
railway postal clerks and substitute railway postal clerks, $4,075,000.
Separating mails: For separating mails at third- and fourth-class
Railway Mail Service, traveling expenses: For actual and necessary
post offices, 8491,500.
expenses, general superintendent and assistant general superintendent,
Unusual conditions: For unusual conditions at post offices, $800,000.
division superintendents, assistant division superintendents, assistant
Clerks, third-class post offices: For allowances to third-class post
superintendents, chief clerks, and assistant chief clerks, Railway Mail
offices to cover the cost of clerical services, $11,500,000.
Service, and railway postal clerks, while actually traveling on business
Miscellaneous items. first- and second-class post offices: For mis-
of the Post Office Department and away from their several designated
cellaneous items necessary and incidental to the operation and pro-
headquarters, $64,000.
Regraded Unclassified
18
19
(Pos. Live ml
the
Railway Mail Service, miscellaneous expenses: For rent, light, heat,
fuel, telegraph, miscellaneous and office expenses, telephone service,
straps, letter-box paint, baling machines, perforating machines,
repair of furniture, package boxes, posts, trucks, baskets, satchels,
badges for railway postal clerks, rental of space for terminal railway
presses, directories, cleaning supplies, and the manufacture, repair,
vending and postage meter devices, duplicating machines, printing stamp
post offices for the distribution of mails when the furnishing of space
for such distribution cannot, under the Postal Laws and Regulations,
properly be required of railroad companies without additional com-
equipment, and for the purchase and repair of preases and dies for
and exchange of equipment. the erection and painting of letter-box
pensation, and for equipment and miscellaneous items necessary to
terminal railway post offices, $400,000.
money-order stamps, and electrotype plates and repairs to same;
use in the manufacture of letter boxes: for postmarking, rating,
Electric-car service: For electric-car service, $230,000.
holders, ink pads for canceling and stamping purposes, and for the
metal, rubber, and combination type, dates and figures, type
Foreign mail transportation: For transportation of foreign mails,
except by aircraft, $575,000.
purchase of time recorders, letter balances, scalex (exclusive of dor-
Balance due foreign countries: For balances due foreign countries,
mant or built-in platform scales in Federal buildings), test weights,
fiscal year 1945 and prior years, $2,250,000.
and miscellaneous articles purchased and furnished directly to the
Indemnities, international mail: For payment of limited indemnity
Postal Service, including complete equipment and furniture for post
for the injury or loss of international mail in necordance with con-
offices in leased and render quarters; for the purchase (including
vention, treaty, or agreement stipulations, fiscal year 1945 and prior
exchange), repair, and replacement of arms and miscellaneous items
years, $8,000.
necessary for the protection of the mails; for miscellaneous expenses
Foreign air-mail transportation: For transportation of foreign
in the preparation and publication of post-route maps and rural-
mails by aircraft, as authorized by law, including the transportation
delivery maps or blueprints, including tracing for photolithographie
of mail by aircraft between Seattle, Washington, and Fairbanks,
reproduction: for other expenditures necessary and incidental to
Alaska, via intermediate points. $3,785,000.
post offices of the first, second, and third classes, and offices of the
Domestic Air Mail Service: For the inland transportation of mail
fourth class having or to have rural-delivery service, and for letter
by aircraft, BS authorized by law, and for the incidental expenses
boxes; for the purchase of atlases and geographical and technical
thereof including travel expenses, and including not to exceed $55,100
works not to exceed $1,500; for wrapping twine and tying devices;
for supervisory officials and clerks at air-mail transfer points,
for expenses incident to the shipment of supplies, including hard-
$35,000,000.
ware, boxing, packing, and not exceeding 875,500 for the pay of
employees in connection therewith in the District of Columbia; for
OFFICE or THE THIRD ASSISTANT POSTMASTER GENERAL
rental, purchase, exchange, and repair of canceling machines and
motors, mechanical mail-handling apparatus, accident prevention,
Manufacture and distribution of stamps and stamped paper: For
and other labor-saving devices, including cost of power in rented
manufacture of adhesive postage stamps, special-delivery stamps,
buildings and miscellaneous expenses of installation and operation
books of stamps, stamped envelopes, newspaper wrappers. postal cards,
of same, including not to exceed $38,900 for salaries of thirteen travel-
and for coiling of stamps, and including not to exceed $26,150 for pay
ing mechanicians, and for traveling expenses, $3,900,000: Provided,
of agent and assistants to examine and distribute stamped envelopes
That the Postmaster General may authorize the sale to the public
and newspaper wrappers, and for expenses of agency, $6,036,000.
of post-route maps and rural-delivery maps or blueprints at the cost
Indemnities, domestic mail: For payment of limited indemnity for
of printing and 10 per centum thereof added.
the injury or loss of pieces of domestic registered matter, insured and
Equipment shops, Washington, District of Columbia: For the
collect-on-delivery mail, and for failure to remit collect-on-delivery
purchase, manufacture, and repair of mail bags and other mail con-
charges, $1,500,000.
tainers and attachments, mail locks, keys, chains, tools, machinery,
Unpaid money orders more than one year old: For payment of
and material necessary for same, and for incidental expenses per-
domestic money orders after one year from the last day of the month
taining thereto; material, machinery, and tools necessary for the
of issue of such orders, $300,000.
manufacture and repair of such other equipment for the Postal
Service as may be deemed expedient; accident prevention; for the
OFFICE OF THE FOURTH ASSISTANT POSTMASTER GENERAL
expenses of maintenance and repair of the equipment shops
Post office stationery, equipment, and supplies: For stationery for
building and equipment, including fuel, light, power, and miscel-
the Postal Service, including the money-order and registry system;
laneous supplies and services; maintenance of grounds; for compen-
and also for the purchase of supplies for the Postal Savings System,
sation to labor employed in the equipment shops and in the operation,
including rubber stamps, canceling devices, certificates, envelopes,
care, maintenance, and protection of the equipment shops building,
and stamps for use in evidencing deposits, and free penalty envel-
grounds, and equipment, $2,370,000, of which not to exceed $884,495
opes: and for the reimbursement of the Secretary of the Treasury for
may be expended for personal services in the District of Columbia:
expenses incident to the preparation, issue, and registration of the
Provided, That out of this appropriation the Postmaster General is
bonds authorized by the Act of June 25, 1910 (39 U. S. C. 760) for
authorized to use as much of the sum, not exceeding $15,000, as may
miscellaneous equipment and supplies, including the purchase and
be deemed necessary for the purchase of material and the manufac-
Regraded Unclassified
20
(Pis no.:
21
the
ture in the equipment shops of such small quantities of distinctive
equipments as may be required by other executive departments; and
and the Custombouse Building in the District of Columbia, operated
for service in Alaska, Puerto Ríco, Philippine Islands, Hawaii, or
by the Post Office Department, together with the grounds thereof
and the equipment and furnishings therein, including telephone
other island possessions.
Rent, light, fuel, and water: For rent, light, fuel, and water, for
operators for the operation of telephone switchboards or equivalent
first-, second-, and third-class post offices, and the cost of advertising
telephone switchboard equipment in such buildings jointly serving
for lease proposals for such offices, $10,700,000.
in each case two or more governmental activities, $30,000,000: Pro-
Pneumatic-tube service, New York City: For rental of not exceed-
vided, That in no case shall the rates of compensation for the
mechanical labor force be in excess of the rates current at the time
ing twenty-eight miles of pneumatic tubes, hire of labor, communica-
tion service, electric power. and other expenses for transmission of
and in the place where such services are employed.
mail in the city of New York including the Borough of Brooklyn,
Operating supplies, public buildings: For fuel, steam, gas, and
$572,900: Provided, That the provisions of the Acts of April 21,
electric current for lighting, heating, and power purposes, water, ice,
1902, May 27, 1908, and June 19, 1922 (39 U. S. C. 423), relating to
lighting supplies, removal of ashes and rubbish, snow and ice, cut-
contracts for the transmission of mail by pneumatic tubes or other
ting grass and weeds, washing towels, telephone service for custodial
similar devices shall not be applicable hereto.
forces, and for miscellaneous services and supplies, accident preven-
Pneumatic-tube service, Boston: For the rental of not exceeding
tion, vacuum cleaners, tools and appliances and repairs thereto, for
two miles of pneumatic tubes, not including labor and power in
the operation of completed and occupied public buildings and
grounds, including mechanical and electrical equipment, but not the
operating the same, for the transmission of mail in the city of Boston,
Massachusetts, $24,000: Provided. That the provisions not incon-
repair thereof, operated by the Post Office Department, including
the Washington Post Office and the Customhouse Building in the
sixtent herewith of the Acts of April 21, 1902 (39 S. C. 423), and
District of Columbia, and for the transportation of artícles and
May 27, 1908 (39 U. S. C. 423), relating to the transmission of mail
supplies authorized herein, $6,000,000: Provided, That the foregoing
by pneumatic tubes or other similar devices shall be applicable
appropriation shall not be available for personal services except for
hereto.
work done by contract, or for temporary job labor under exigency
Vehicle service: For vehicle service; the hire of vehicles; the rental
not exceeding at one time the sum of $100 at any one building:
of garage facilities; the purchase, maintenance, and repair of motor
Provided further, That the Postmaster General is authorized to con-
vehicles, including the repair of vehicles owned by, or under the con-
tract for telephone service in public buildings under his administra-
trol of. units of the National Guard and departments and agencies
tion by means of telephone switchboards or equivalent telephone
of the Federal Government where repairs are made necessary because
switching equipment jointly serving in each case two or more
of utilization of such vehicles in the Postal Service: accident preven-
governmental activities, where he determines that joint service is
tion: the hire of supervisors, clerical assistance, mechanics, drivers,
economical and in the interest of the Government. and to secure reim-
garagemen. and such other employees as may be necessary in pro-
bursement for the cost of such joint service from available appro-
viding vehicles and vehicle service for use in the collection, trans-
priations for telephone expenses of the burenus and offices receiving
portation, delivery, and supervision of the mail, and United States
the same.
official mail and messenger service, $20.750,000: Provided, That the
Furniture, carpets, and safes, public buildings: For the procure-
Postmaster General may, in his disbursement of this appropriation,
ment, including transportation. of furniture, carpets, safes, safe and
apply a part thereof to the leasing of quarters for the housing of
vault protective devices, and repairs of same, for use in public build-
Government-owned motor vehicles nt n reasonable annual rental for
ings which are now. or may hereafter be, operated by the Post Office
IL term not exceeding ten years: Provided further, That the Post-
Department, $550,000: Provided, That excepting expenditures for
master General may purchase and maintain from this appropriation
labor for or incidental to the moving of equipment from or into public
such tractors and trailer trucks ns may be required in the operation
buildings, the foregoing appropriation shall not be used for personal
of the vehicle service: Provided further, That no part of this appro-
services except for work done under contract or for temporary job
priation shall be expended for maintenance or repair of motor-
labor under exigency and not exceeding at one time the sum of $100
propelled passenger-carrying vehicles for use in connection with the
at any one building: Provided further, That all furniture now owned
administrative work of the Post Office Department in the District of
by the United States in other public buildings or in buildings rented
Columbia.
by the United States shall be used, so far as practicable, whether or
Transportation of equipment and supplies: For the transportation
not it corresponds with the present regulation plan of furniture.
and delivery of equipment, materials. and supplies for the Post Office
Scientific investigations: In the disbursement of appropriations con-
Department and Postal Service by freight. express, or motor trans-
tained in this title for the field service of the Post Office Department
portation, and other incidental expenses, $300,000.
the Postmaster General may transfer to the Bureau of Standards not
to exceed $20,000 for scientific investigations in connection with the
PUBLIC BUILDINGS, MAINTENANCE AND OPERATION
purchase of materials, equipment, and supplies necessary in the main-
Operating force: For personal services in connection with the
tenance and operation of the Postal Service.
operation of public buildings, including the Washington Post Office
Regraded Unclassified
(Prs. Law 3)
22
Deficiency in postal revenues: If the revenues of the Post Office
Department shall be insufficient to meet the appropriations made
under title II of this Act, a sum equal to such deficiency in the revenues
of such Department is hereby appropriated, to be paid out of any
money in the Treasury not otherwise appropriated, to supply such
deficiency in the revenues of the Post Office Department for the fiscal
year ending June 30, 1945, and the sum needed may be advanced to
the Post Office Department upon requisition of the Postmaster
General.
This title may be cited as the "Post Office Department Appropria-
tion Act, 1945".
TITLE III-GENERAL PROVISIONS
Sec. 301. No part of any appropriation contained in this Act shall
be used to pay the salary or wages of any person who advocates, or
who is a member of an organization that advocates, the overthrow of
the Government of the United States by force or violence: Provided,
That for the purposes hereof an affidavit shall be considered prima
facie evidence that the person making the affidavit does not advocate,
and is not n member of an organization that advocates, the over-
throw of the Government of the United States by force or violence:
Provided further, That any person who advocates, or who is a mem-
ber of an organization that advocates, the overthrow of the Govern-
ment of the United States by force or violence and accepts employ-
ment, the salary or wages for which are paid from any appropriation
shall be fined not more than $1,000 or imprisoned for not more than
contained in this Act, shall be guilty of a felony and, upon conviction,
one year, or both: Provided further, That the above penalty clause
sions of existing law.
shall be in addition to, and not in substitution for, any other provi-
SEC. 302. If at any time during the fiscal year 1945 the termination
of the Act entitled "An Act to provide temporary additional com-
pensation for employees in the Postal Service" approved April 9,
1943, or of the Act entitled "An Act to provide for the payment of
overtime compensation to Government employees, and for other
poses", approved May 7, 1943, shall be fixed by concurrent resolution pur-
tions contained in this Act shall cease to be available on such earlier
of the Congress at a date earlier than June 30, 1945, the appropria-
date for obligation for the purposes of the terminated Act and the
of unobligated portions of appropriations allocated for the
of the such terminated Act shall not be obligated for any other purposes purposes
appropriation during the fiscal year 1945.
Departments Appropriation Act, 1945".
Sec. 303, This Act may be cited as the "Treasury and Post Office
Approved April 22, 1944.
85
MAY 1 1944
By dear Mr. Cochrant
This will acknowledge receipt of your letter of
April 25, 1944, relative to the adjustment of the
salaries of foremen of plate printers in the Bureau of
Engraving and Printing.
The matters presented by you will be given careful
consideration, and as soon as a decision is reached you
will be fully informed.
Very truly yours,
(Wigned) II. Mergenthau, Jr.
Secretary of the Treasury.
Honorable John J. Cochram,
House of Representatives,
Washington, D. c.
JAJ:mo:jc
Regraded Unclassified
COMMITTEES
COMMITTEE - kases
- - Entime Career
RENTS
CONGRESS OF THE UNITED STATES
Comune, Weismi, AND -
BELBET Commines - Consentation -
WILDLIFE Reselunce
HOUSE OF REPRESENTATIVES
MISSATORY Bino COMMINATION
Commission
WASHINGTON, D.C.
April 25, 1944
PERSONAL TTENTION
Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
My dear Mr. Secretary:
I have received a letter dated April 19 and signed by
Honorable Charles S. Bell in answer to my letter to you in which
I urged the adjusting of the salaries of foremen, plate printers,
and so forth in the Bureau of Engraving and Printing so this group
would receive the same benefits that are paid foremen at the
Government Printing Office.
It is true that the foremen are now paid on a per diem
basis and receive time and a half for all hours worked in excess
of forty, and I assume it is likewise true that at times the
salary more than equals the pay of employees of the Printing
Office. This is due, however, to this overtime work.
I do not want to be critical at all but it seems to me
that I am warranted in appealing to you to have this matter re-
considered. First let me say it is my understanding that the
group that considered the request of the foremen was composed
of a Mr. Slindee, Mr. Hall, the Director of the Bureau of En-
graving and Printing, and Mr. Wilson, Chief of the Appointment
Division. It is also true that Mr. Wilson has been critically
111 for quite a time and had little opportunity to hear this case.
I did talk to Mr. Wilson about the case and from the conversation
I felt that he was inclined to side with the foremen, or at least
he elt very sympathetic. Here we find a situation where the
D1 tor of the Bureau that is involved in a controversy is sitting
committee to render a decision in connection with that contro-
vs
I do not think that is sound business judgment.
The same principle involved in this controversy existed
nection with certain officials of the Fire Department in
strict of Columbia. Their salary was less than the salary
1cials of the Folice Department of equal rank. Only yeater-
so House completed action on Senate Bill 1757 equalizing
laries of officers and members of the Police Force and
Ire Department.
Regraded Unclassified
- 2 -
On June 1, 1928, Mr. George Carter, who was then the
Publi Printer, advanced the rate paid foremen of these craftsmen
to $3600 & year, leaving the foremen of the Bureau of Engraving
and Printing hundreds of dollars behind, and as was to be ex-
pected, the Bureau foremen made a request of Mr. Hall for
equalization. While he has maintained the same pay status for
the tradesmen all these years, he has denied any equal compensa-
tion for the foremen. If you were one of them, can you say you
would have been contented with Mr. Hall's decision?
Then, September 15, 1941, the present Public Printer in-
creased these same positions to $4000 basic salary, and this was
with the consent of the Joint Committee on Printing of Congress.
The foremen requested Mr. Hall for consideration and he
refused.
The foremen in the Bureau of Engraving and Printing were
placed on a per diem basis August 1, 1942 without a hearing.
They wanted a settlement of the basic pay problem and not the
overtime. As I understand it, they did not want their status
changed.
It is true that the foremen's compensation in some cases
amounted to over $4500 but they were required to work over 500
hours overtime to get it.
The purpose of this letter 1s to urge that further con-
sideration be given to the matter and that B. new committee be
appointed and that neither N°, Hall nor any of the foremen be
members but that both sides have a right to appear before the
Committee and state their case. I cannot conceive but this 1s
fair. If you do not desire to do that, then appoint some offi-
cial to reconsider the matter, let the foremen choose & member,
and then let the two of them choose a third.
John Sincerely I yours, bocher
Regraded Unclassified
88
May 1, 1944
My dear Mrs. Knox:
Nothing that I might write could convey
adequately the deep feeling of grief and personal
loss that your husband's death has brought to me.
I have been happy to be able to claim him as
a close personal friend. His dauntless courage
and energy, his unfailing cheerfulness and the
warmth and vigor of his personality have been
a source of strength to me as I know they have
been to all of his associates here in Washington.
The magnificent record that he has made in
office is a legacy to his country that cannot
soon be forgotten.
Mrs. Morgenthau joins me in expressing most
heartfelt sympathy with you in your sorrow.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mrs. Frank Knox
4704 Linnean Ave., N.W.
Washington, D. C.
HEG:pm
1R9
Regraded Unclassified
89
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
Date
May 1, 1944
TO
Herbert Gaston
FROM
Secretary Morgenthau.
I would appreciate it if you would write a
letter for me to sign to Mrs. Frank Knox. I'd
like to make it a very warm letter to express
warm feeling as I was very fond of Frank Knox
and I think he did a wonderful job. He had
great courage and leadership. Thank you.
Regraded Unclassified
SO
BRITISH air COMMISSION
1785 MASSACHUSETTS AVENUE
WASHINGTON, D. C.
TELEPHONE HOBART 9000
EASE QUOTE
FERENCE NO
With the compliments of British Air Commission
who enclose Statements Nos. 133 and 134 -
Aircraft Despatched -- for the weeks ended
April 14th and April 21st respectively.
The Honourable Henry Morgenthau, Jr.
Secretary of the Treasury
WASHINGTON, D. C.
May 1, 1944.
Regraded Unclassified
STATEMENT NO.133
TOP SECRET S1
Air Despatched from the United States
Week Ended April 14th, 1944
ASSEMBLY
BY
BY
FLIGHT DELIVERED
TYPE
DESTINATION
POINT
SEA
AIR
FOR USE IN CANADA
CONSOLIDATED
Liberator B VI
M.E.
M.E.
2
Liberator B VI
India
India
7
Liberator B VI
Canada
Canada
3
GLENN MARTIN
Marauder III
M.E.
M.E.
32
Baltimore V
M.E.
M.E.
9
VEGA
Ventura GR V
U.K.
U.K.
3
Ventura GR V
S. Africa
S. Africa
4
DOUGLAS
Boston IV
U.K.
U.K.
1
Dakota III
U.K.
U.K.
4
Dakota III
M.E.
M.E.
3
Dakota III
India
India
9
kota III
Canada
Canada
1
BOEING
Catalina IV B
U.K.
U.K.
8
CURTISS
Kittyhawk
Australia
Sydney
10
REPUBLIC
Thunderbolt
Madras
India
10
Thunderbolt
Karachi
India
35
NORTH AMERICAN
Mustang
U.K.
U.K.
6
NOORDUYN
Harvard
U.K.
U.K.
67
STINSON
Relient
U.K.
U.K.
10
BEECH
Beechcraft UC $5 U.K.
U.K.
3
Total:
1/1
82
4
(
rements Division
british Air Commission
April 21, 1944
mb
Pile V-17
Regraded Unclassified
92
STATEMENT NO, 134
TOP SECRET
Aircraft Despatched from the United States
Week Ended April 21st, 1944
ASSEMBLY
BY
BY
FLIGHT DELIVERED
TIPS
DESTINATION
POINT
SEA
AIR
FOR USE IN CANADA
CONSOLIDATED
Liberator B-VI
M.E.
M.E.
5
Liberator B-VI
India
India
9
Liberator B-VI
Canada
Canada
5
GLENN MARTIN
Marauder III
M.E.
M.E.
41
Baltimore V
M.E.
M.E.
13
VEGA
Ventura GR V
M.E.
M.E.
3
DOUGLAS
Boston IV
U.K.
U.K.
4
Dakota III
U.K.
U.K.
5
Dakota III
M.E.
M.E.
6
Devota III
India
India
3
D. its III
S. Africa
S. Africa
1
BOEING
Catalina IV B
U.K.
U.K.
9
BEECH
Expediter II
Canada
Canada
3
NORTH AMERICAN
Mustang
U.K.
U.K.
4
Mustang
N.W. Africa
Casablanca
14
Harvard
U.K.
U.K.
14
NOORDUYN
Harvard
U.K.
U.K.
32
GRUMMAN
Wildcat
U.K.
U.K.
2
Avenger
U.K.
U.K.
6
VOLUHT-SIKORSKY
Corsair
U.K.
U.K.
11
FAIRCHILD
Argus
U.K.
U.K.
15
REPUBLIC
Thunderbolt
India
Karachi- 22
12
Thunderbolt
India
Madras
10
BLACH
Beecheraft
U.K.
U.K.
27
Beechcraft UC 45
India
Karachi
12
STINSON
Reliant
U.K.
U.K.
6
165
99
B
Total:
Note: Statement No.131. Destination of 1 Dekota III reported exported to U.K. has been changed
to E.T. which leaves 5 Dakota III to U.S.
Diverents Division, British Air Commission
April 20, 1944.
Regraded Unclassified
93
25
MAY 1 1944
My dear Mr. Price:
This is to acknowledge receipt of your note of
April 26, 1944 and the copy of the letter and memorandum
you sent to the Secretary of State relating to the use
of the diplomatic peuch for remittances destined for enemy
territory. I appreciate your calling my attention to the
matter and I share your concern lost the diplomatic pouch
be employed to carry to our cnemies material of importance
from a standpoint of security.
The Department has given much thought and study
to the problem created by the evasion of Treasury financial
controls through the abuse of the immunity afforded
diplomatic pouches, and would cooperate gladly with any
appropriate measures that may be suggested to remedy the
situation.
Very truly yours,
(Wigned) H. Morgenthau, Jr.
Secretary of the Treasury.
Honorable Byron Price,
Director, Office of Censorship,
Washington, D. C.
EEM:10
4/23/44
Regraded Unclassified
THE OFFICE OF CENSORSHIP
WASHINGTON - 25
CONFIDENTIAL
April 26, 1944.
The Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D. C.
My dear Mr. Secretary:
I am enclosing, for your information, a copy of a letter
and memorandum I have sent today to the Secretary of State indicating that
remittances destined for enemy territory are being forwarded under diplomatic
imunity by the Irish Consul General in New York City. I would be glad to
have any comment you may care to make.
Sincerely yours,
you him
Byron Price,
Enclosure
Director.
CONFIDENTIAL
Regraded Unclassified
- 25
April 26, 1944.
CONFIDENTIAL
The Benorable Cordall Hull,
Secretary of State,
Washington, D. C.
Ry dear Mr. Becretary:
I an enclosing herewith a memorandum which
comes to se from our Postal Censorship Division indi-
eating that eertain remittances on behalf of Alexander
McKee, a British subject, and destined for enemy terri-
tory, are being forwarded by the Irish Consul General
is New York City.
The amount of these remittances is quite
small but it occurs to Be that if the Irish Consulate
in Nov York is willing to forward these remittances
14 may be willing to include in its official pouch
material of far greater importance from the standpoint
of security.
the assorandus 1s forwarded for such action
as the Department of State may doos advisable and also
is the hope the Department may have some suggestion to
aske to Consorship.
Sincerely yours,
Byron Price,
Inclesure
Director.
CONFIDENTIAL
Regraded Unclassified
CONFIDENTIAL
Mr. 0. R. Ball, an official of the Agency, Bank of Nontreal,
6ls
Street, New York City, has offered the following confidential
Jon.
Mr. Alexander McKee, a Britisher born in the Irish Free State
and
located at New Goldfields of Venezuela, Ciudad Bolivar, Venesuala,
app
ly is married to a German whose maiden name was Fridl Seidermaser
and was in Holland when that country was overrun by the Germans.
She rubsequently returned to her previous home and on the 26th of January
1941 requested that her mil be addressed to her at Menslin, Pusseania,
Jermany.
Prior to the entry of the United States into the war, the
German woman used the New York Agency of the Bank of Montreal as a means
of comunicating with her husband and he arranged remittances for her
through the same bank. Subsequently, the bank informed the German
woman it did not wish to receive any further communications from ber
or to carry out any banking transactions on her behalf.
Since the entry of the United States into the war Mr. HeXes
occasionally has instructed the New York Agency of the Bank of Montreal
to pay certain amounts, e.g. June 1943 $200., November 1943 $400.,
February 1944 $200. to the Irish Consul General, Leo T. McCauley at
405 Lexington Avenue, New York City to the debit of McXee's account.
These payments are made by check in the name of Leo T. McCauley and
are deposited by the latter in the Central Hanover Bank & Trust Company,
and the cancelled checks bearing the personal endorsement of Mr. McCaulay
are returned, after clearing, to the New York Agency of the Bank of
Montreal.
It is conceivable that the Irish Consul General, by - of
the diplomatic pouch, is the medium of communications from this country
to Eire which result in the payment of funds to an enemy national in
Germany and in the corresponding provision to the Germans of foreign
exchange. In view of the delicate situation of the Irish Free State
in these critical moments, it is considered that this information should
X brought to your attention.
CONFIDENTIAL
Regraded Unclassified
97
DE BELGIQUE
3/6
Washington, May 1, 1944
149
sure
My dear Mr. Secretary:
I am enclosing herewith a letter Mr. Gutt,
the Belgian Minister of Finance and Economic
Affairs, asked me to forward to you.
May I avail myself of this opportunity to
renew to you the assurances of my highest esteem.
Very sincerely yours,
The Belgian Ambassador:
X thatm
able
enthau, Jr.
the Treasury
ON, D. C.
Regraded Unclassified
//
49. EATON PLACE,
LONDON, S.W.I.
Tel: Sloane 0220.
MINISTRE MINISTER
DEN
Pr
and
con
ntial.
13 th April, 1944.
CG
ny dear Security
I wish to inform you that at one
of our last Cabinet meetings my Government
agreed to fix the exchange parity of the
Belgian franc, from the day of the entry
of the Allied troops into Belgium, at
43,827 francs to the dollar.
May I ask you to consider this
decision as highly confidential ? It has
been taken in view of the present situation.
It goes without saying that if a very long
time elapsed between now and the landing
of the Allied troops, or if the volume of
quite unforeseen destructions wrought in
Belgium before the landing were so much
beyond expectations that it would have a
marked detrimental effect on the economic
situation of our country, my Government
would have to reconsider such a parity.
Believe me, my dear Security
With ben bot regards
Your very sincerely
enthau Esq.,
tary of the Treasury,
Washington.
Guty
Regraded Unclassified
99
Harry White
May 1, 1944
Secretary Morgenthau.
Please acknowl edge the receipt of Jesse Jones'
letter to me on the Greek Dutch loan and say that I am
studying it and will let him have an answer in a
couple of days. I'd like to have this by twelve
o'clock, please. - Letter signed 5/1/11-
100
MAY 1 1944
My dear Mr. Secretary:
This will your letter of April 22, 1944
enclosing a copy of & statement from Minister J. Van Den
Break of the Netherlands The renewed
request for a loan to the Notherlands, set forth in these
papers, is being given careful consideration and I will
advise you further in respect to my views in a for days.
Very truly yours,
(Wigned) H. Morgenthon, Jt.
Secretary of the Treasury
The Honorabile,
The Secretary of Commros,
While 3/2/44
you
THE EXCHARY OF COMMERCE
11/24/97-
WASHINGTON
April 22, 1944
DMV Mr. Secretary:
Enclosed herewith copy of letter received from Mr. Van
Den Broek, the Notherlands Minister of Finance.
Mr. Van Den Broek spoke to me about this loan some seven
months ago, and, after a conference with the President I told the
Minister that I thought we would be able to grant the loan provided
it was on a strictly secured and business basis.
The RFC is authorized by law to make loans of this char-
acter when properly secured by investments in this country. You
will recall that we made a loan to Great Britain and Northern Ireland
for $425,000,000, secured in this manner, and it is working out very
satisfactorily. The Netherlands want to be in a position now to place
orders for reconstruction materials that will enable industry to go
imediately into such work when production for war eases up.
The Netherlands want to repay the money over a period of
15 years, with interest at 3%, and are willing, if we wish, to have
the loan transferred to a so-called International Bank, if and when
one is ready for business, or to private investors.
The Netherlands is a rich government, amply able to repay
its obligations. They will need assistance as will other overrun
countries, and should be generally helpful in the reconstruction
period.
My OWD view is that the loan should be authorized now by
the RFC, under conditions that the money be spent in this country
and that any orders placed by the Netherlands be first checked with
the RFC and WPB.
Please let me have your views.
Sincerely yours,
Secretary of Commerce
FOR
Honorable Henry Morgenthau, Jr.
Becretary of the Treasury
Mashington, D. C.
Regraded Unclassified
IIII
PINNERS HALL
MINISTER
VAN FINA
lands Treasury)
(Roynl
Gr. Winchester Street
Wall 2027
Tel.1
London, E. C. 2.
3484.
The orable Jesse Jones,
Secretary of Commerce,
Lafayette Building,
Mashington, D. C.
Dear Mr. Jones,
Shortly after returning to England in September 1943 I was
informed that the plans for the granting of a loan to the Netherlands
Government by the R.F.C. could not, at least for the time being, materialize.
I need not tell you how disappointed I was to hear this and I am writing
you because I know that the scheme to borrow at present a certain mum of
money against collateral was considered by you to be businesslike and sound.
AB you are fully aware, my Government has so far paid its own
expenses during the war and it still prefers, as long as it can possibly
manage to do so, to continue that policy. I am convinced that inter-
national banking circles consider the credit of Holland to be of a very
high order and there is not the slightest doubt that private banks in the
U.S.A., if they were allowed to do BO, would gladly lend money to the
Netherlands against certain guarantees. However, at present your Govern-
sent does not permit them to grant loans to foreign countries.
The reason why I did not succeed in entering into an agreement
with the RFC, although you, Mr. Cordell Hull and many others were in
favour of it, was, I believe, that the U. S. Treasury was of opinion that
the transaction was more or less premature, particularly so because the
Treasury was preparing, and at that time already discussing, plans for an
International Stabilization Fund and an International Bank for Reconstruction.
I told you on several occasions that, in the event of the R.F.C. immediately
granting a loan, my Government would be quite willing and prepared at the
once proper such a bank has been established. Also you know that I wanted to be
moment, to transfer such a loan to the planned International Bank
to a position to have at my disposal certain funds in the U.S. in order to
be able to enter into negotiations with various producers in your country
connexion with post-war problems.
Six months have elapsed since we discussed this matter and I
Rd like to reopen this question.
An arrangement may be reached in the near future, it will certainly
International Stabilization Fund has been discussed, but al-
ugh B. considerable воше time before anything like the originally contemplated
me can be expected to materialise,
01 have Negotiations to be started and I am afraid that I am not being very pessimistic such a
and discussions regarding a Bank for Reconstruction
that 6 lot of water will go down the Mississippi before
maying becomes B reality. What will happen in the meantime?
Regraded Unclassified
- 2 -
interests of my country the Netherlands Government must
contine
the preparation of post-war plans and take all possible
soilitating and speeding up the reconstruction of its
industr
the re-establishment of the economy of the country immediately
after
ration. We are, therefore, more or less obliged, if we cannot
raly
miring credits in the U.S.A., to find out what we can do elsewhere.
I do DO
to explain to you what the result will be. Countries without,
or pree
My without resources, and with a completely different and, if I say
say 00,
lower standard of reliability and credit than my country, will
after
approach the U.S. for help and support. To avoid unemployment,
their
requests for credits will very likely be favourably received. No, on the
other band, will in the meantime have entered into negotiations with other
countries and the danger exists that in order to help our people in the quickest
possible ear, we will have to rely upon British industry exclusively. It is
step imaginable that populations in liberated countries will press upon their
Governments to renew unduly soon relations with German industry, if they feel
their Allies cannot help them.
You any well ask yourself: "Why is van den Broek so anxious to get
credits in America and why does he not lay much more stress on the necessity of
getting credits in a country BO such nearer to his own - England?" Because,
Mr. Jones, I believe that it will be essential that the Netherlands East Indies
re-establish their business relations with the U.S. 8.8 soon as the Japs are
beaton. If we are to be sellers to the U.S. in the future we should also plan
now to be buyers when this can and should be done, namely, immediately after the
liberation of Holland.
May I remind you that in 1941 about three hundred million dollars worth
of goods were deported into the U.S.A. from the Netherlands East Indies, consisting
mainly of rubber, tin, quinine, tobacco and kapok. We were buying weapons.
I hope you will understand my feelings and the frank way in which I
present By problems to you. Really the idea of postponing an arrangement to grant
credits to a country like Holland, a country that has so greatly contributed in
the part to the development of the U.S., financially and otherwise, until world
side plans have materialised, does not, in my opinion, make sense. I am writing
you this because the possibility of coming to business may now be elightly better
than months ago. If this is 80, I would gladly pay a short visit to
Washi 1 You will also understand, however, that I should prefer not to be
away
England in case there is an invasion of Western Europe. When the
curt
rises over the darkness in which my compatriots have been living now for
also
our years, I want to be on the spot, because at that time I propose to do
all
to assist to the best of My ability in the rebuilding of my country.
If there is a reasonable chance of coming to & settlement on the lines
liscussed, which I consider to be of mutual interest, and on the under-
that By Government will be prepared to transfer a loan by R.F.C. to an
lonal Bank as soon 8.5 this is considered desirable, will you kindly let
by either dropping me a note or sending ne & cable?
Looking forward to a reply,
With kind regards, Sincerely yours,
(Signed) J. Van Den Broak
Netherlands Minister of Finance
Regraded Unclassified
104
STORET BY COURIER
1-311
4100 para
May 1, 1944
SINT BY SECRET COURIER
AMINGASSY, SAN JOSE (COSTA RICA).
Refer to Department's circular airgrams of March 31, 1:05 p.m.,
of April 11, 11:00 a.m. and of April 22, 7130 p.m. The Department
has now been apprized that Papel Nuncio at Bern informed Minister
Harrison that Vatican had attempted to work out relief measures for
Jevs holding Costa Rican documents and interned by Germany. Apparently.
the question of eventual immigration as result of possible exchange was
raised in addition to the question of recognition of documents. Costa
Rice 10 reported to have replied that it 1s disposed to recognise pass-
ports issued by its Consuls only to the extent of eight families, and
that these families would be allowed to remain in Costa Rica only for
the duration of the var, unless the persons concerned are either farmers
or industrialists,
At the time this reply 1s reported to have been given to Vatican,
the assurance contained in our circular airgram of April 11 had evident-
ly not (repeat not) yet reached Costa Rican government. It is therefore
felt advisable to reiterate the assurance of this Government that Costa
Rica will not (repeat not) be expected to grant physical admission to
any of the persons concerned in the event of exchange or of any other
procedure leading to their release. Under these assurances, Costa Rica would
not (repeat not) be asked to permit any of these persons to enter its
territory even temporarily, unless it so desires. Accordingly, the
numerical limitation stated in Costa Rican reply to the Vatican seems
no longer justified, and the hope is expressed that Costa Rica will
agree to act in the sense of our circular airgram of April 11 without
any numerical limitations whatsoever.
In the light of these assurances, please impress upon the Costa
Rican Government the extreme urgency with which this Government views
the necessity of acting favorably without delay on proposals previously.
submitted and detailed in the airgrams under reference. You should
impress upon Costa Rican officials that since failure to act would
almost certainly spell death for the persons involved, and that since
no (repeat no) responsibilities or obligations would result for Costa
Rica from acquiescence in our requests, ve would be sorely disappointed
If Costa Rican authorities should not (repent not) whole-heartedly
cooperate with our efforts to save these people.
The foregoing message was repeated to Managua, as the Department's
airgram No. A-161, at 4100 p.m.
HULL
WEB:GLW:KG
ARA
4/27/44
Regraded Unclassified
175
A-143
SECRET BY COURTER
10:45 e.m.
SENT BY SEDRET AIRGRAM
AMEMBASSY,
SAN SALVADOR (EL SALVADOR).
Mayl, 1944
FOR THE PERSONAL AND CONFIDENTIAL INFORMATION OF THE AMRASSADOR.
With reference to Department's circular airgrams of March 31
1:05 p.m., of April 11, 11:00 a.m. and of April 22, 7:30 p.m., the
Department had been apprized that Papal Nuncio at Bern informed Minister
Harrison that Vatican had attempted to work out relief measures for
Jews holding Salvadorean documents and interned by Germany. Apparently,
the question of eventual immigration as result of possible exchange was
raised in addition to the question of recognition of documents. Salvador
is reported to have given a negative reply, presumable because it was
not (repeat not) prepared to permit persons in question actually to enter
Salvador.
At the time this reply is reported to have been given to Vetican,
the assurance centained in our circular airgram os April 11 had evi-
dently not (repeat not) yet reached Salvadorean government.
Please verify information received from Bern and reiterate this
Covernment's assurance that, in the event of exchange, Salvador will
not (repeat not) be expected to grant physical admission to any of the
persons concerned even on a temporary or tentative basis.
In the light of these assurances, please impress upon the
Salvadorean Government the extreme urgency with which this Government
views the necessity of acting favorable without delay on proposals
previously submitted and detailed in the airgrams under reference.
You should impress upon Salvadorean officials that since failure
to act would almost certainly spell death for the persons involved,
and that since no (repeat no) responsibilities or obligations would
result for Salvador from acquiescence in our requests, we would be
sorely disappointed if Salvadorean authorities should not (repeat not)
whole-heartedly cooperate with our efforts to save these people.
The foregoing message was repeated to Guatemala City as the
Department' sairgram No. A-308, 12:45 p.m.
HULL
GLW
WRB:GLW:KG
ARA
SWP
4/27/44
Regraded Unclassified
SECRET 51
A-135
4:40 p.m.
SANT BY SECRET AIRGRAM
AMERGASSY
ASUNCION (PARAGUAY)
FOR THE PERSONAL AND CONFIDENTIAL INFORMATION OF THE AMBASSADOE
With reference to Department's A-118 of April 11 und A-129,
April 22, 6:45 p.m., the Department has now been appprized that
Papal Nuncio at Bern informed Minister Harrison that Vatican had
attempted to work out relief measures for Jews holding Paraguayan
documents and interned by Germany. Apparently, the question of
eventual immigration as result of possible exchange was rAised
in addition to the question of recognition of documents.
Paraguay is reported to have replied that the passports of Polish
Jews at Vittel have been recognized by Paraguay.
It is further learned from Vatican sources that the trouble
arose when the proposal was made to exchange these Jews for Germins
located in South America. Jews who had Paraguayan passports were
included in the list by Germany. A protest was made by Paragury
which stated that the passports had been illegally iscued and
Paraguay refused to recognize the presports. The Germans with-
drew as a result of this and protection was suspended by Spain.
At the time this attitude is reported to have been taken by
Paragury, the assurance contained in our circular mirgram or
Agril 11 had evidently not (repeat not) yet reached Paraguayan
government.
Please verify information received from Bern and reiterate
this Government's assurance that, in the event of exchange,
Paraguay will not (repeat not) be expected to grant physical
admission to any of the persons concerned even on B. temoorary
or tentative basis.
In the light of these assurances, please impress upon the
Paraguayan Government the extreme urgency with which this Govern-
ment views the necessity of acting favorably without delay on
proposals previously
Regraded Unclassified
-2
135 to Asuncion (Paraguay) May 1, 1944
proposals previously submitted And detailed in the airgrams
under reference. You should impress upon Peraguayan officials
that since failure to act would aloust certainly spell death
for the persons involved, and that since no (repent no) respon-
sibilities or obligations would result for Paraguay from
acquiescence in our requesta, we would be sorely disappointed
if Paraguayan authorities should not (repeat not) whole-heartedly
cooperate with our efforts to save these people.
HULL
WRB:GLV:OMH
ARA
SWP
RPA
4/27/44
Regraded Unclassified
108
SECRET
A-330
8:40 p.s.
May 1, 1944
AMERICAN MISSION,
LIMA (PERU).
FOR THE PERSONAL AND CONFIDENTIAL INFORMATION OF THE
AMBASSADOR.
With reference to your 541 of April 24. The nationali-
ties represented in the prospective immigration of children
cannot be stated definitely by the War Refuges Board. The
belief is however that they would be principally Polish,
French, Belgian and stateless of German and Austrian origin.
The humanitarian aspect of the action suggested to the
Peruvian Government should be given emphasis.
HULL
HULL
(glw)
WHB:MMV: KG
ARA
5/1/44
Regraded Unclassified
A-194
secret BY COURTEN
3:55 p.m.
SENT BY SECRET AIRGRAM
AMERIASSY
May 1, 1944
MONTEVIDEO, URUGUAY
FOR THE PERSONAL AND CONFIDENTIAL OF THE AMBASSADOR
with reference to the Department's circular airgrams of March
31, April 11 and April 22 the Department and War Refugee Board are
informed that a certain number of Jews, mostly of Folish origin, now
in German-controlled territory, hold passports and consular documents
issued in the name of Uruguay. It is requested therefore that you
attempt to obtain cooperation of Uruguayan authorities in American
efforts to save these people in the same manner in which the co-
operation of other Latin American countries has been requested, whose
documents are found to have been issued to Jews in German-held ter-
ritory.
Department understands that Vatican had also attempted to work
out relief measures for Jews in German-held territory holding Uru-
guayan documents. Apparently, the question of eventual immigration
as result of possible exchange was raised in addition to the question
of recognition of documents. Uruguay 18 reported to have replied
that each case would be considered individually.
Please verify above information and emphasize that Department's
request does not (repeat not) involve immigration but on the con-
trary contains assurances that Uruguay will not (repeat Not) be
expected to admit persons concerned even on & temporary basis. Ac-
cordingly, we hope that Uruguay, in the interdsts of humanity, will
postpome any questioning of said documents, meanwhile requesting
Germans to accord holdere treatment to which Uruguayans are entitled,
and will also agree to the persons concerned being considered ex-
change material for German nationals held in this hemisphere provid-
ed such holders of Uruguayan passports are sent to havens elsewhere.
In the light of these assurances, please impress upon the
Uruguayan Government the extreme urgency with which this Government
views the necessity of acting favorably without delay on proposals
previously submitted and detailed in the airgrams under reference.
You should impress upon Uruguayan officials that since failure to
act would almost certainly spell death for the persons involved, and
that since no (repeat no) responsibilities or obligations would result
for Uruguay from acquiescence in our requests, we would be sorely dis-
appointed if Uruguayan authorities should not (repeat not) whole-
heartedly cooperate with our efforts to save these people.
Please advise Department of the result of your efforts.
The foregoing message was repeated to Santiago, No, A-296, 12:40 p.m.
WNB:GLW:OMH
ARA
RPA
HULL
4/28/44
Regraded Unclassified
150
CABLE TO AMBASSADOR CORRIGAN AT CARACAS, VENEZUELA
Department and War Refugee Board very gratified
results reported in your A-323 of April 15. Please
convey Venesuelan authorities this Government's appre-
ciation of their attitude. Simulaneously, please as-
certain whether affirmative approach through protecting
power has yet been made. If not (repeat mot), please
urge immediate action.
May 1, 1944
10:50 a.m.
BAksimtjp
4/29/44
Regraded Unclassified
AIRGRAM SENT
SECRET BY COURIER
SECRET CIRCULAR AIRGRAM
May 1, 1944
7135 p.m.
FOR THE PERSONAL AND CONFIDENTIAL INFORMATION OF THE AMBASSADORS
AT MONTEVIDEO, GUATEMALA CITY AND SANT LAGE. Habama
The following sirgrams have been sent by the Department to the
American Ambassadors in certain South American countries and are
repeated to you for your information:
March 31, 1944, 1:05 p.m. "Information has been received that
there are in ensay-occupied Europs a number of persons holding passporte
issued in the names of various Latis American countries including the
country bo which you are accredited. Our information is that in a
large number of sases such persons are intermed under conditions which
are immeasurably better than the treatment they would receive if they
did not have such passports. It is reported that without such passports,
such persons would be transported to Poland and death.
The plight of these refugees was the subject of 8 memorandum pre-
sented to the Department by the Polish Ambassador in Washington on
December 24, 1943, in support of the request of his government that this
Government intercede on humanitarian grounds to save the persons CO D-
cerned from deportation to Poland by interceding to prevent the with-
drawal of these passports in cases in which they may have been improperly
issued.
The following are excerpts from a report of Dr. Kullman, Vice
Director of the Intergovernmental Committee, who has recently made
exhaustive investigation of the matter in Switzerland: QUOTE It is
an estimated that 4,000 (passports) have been issued from Switzerland and
it 18 known that others have been issued from other neutral countries
as high as nine to ten thousand but some thought that it did not exceed
including Sweden. Some informants estimated the total number to be
5,000. In Svitzerland it (the securing of the passports) was organized
Federal Government had to intervens. Legal action was taken against
by private individuals and reached such proportions that the Swiss
several of the organizers and at the same time inquiry was made regard-
1ag the authority of some of the representatives of the South American
states to carry on these transactions.
little doubt that the German authorities are avare of
what not has a. general going policy of withdrawing the passports. the owners
There been seems on but for reasons of their own they have While bitherto in
protection in other cases they have afforded no protection at and
any cases against persecution and even special treatment all of
adopted the possession of these documents has afforded in some
particularly German authorities seen to have charished the hope besis for
the camps. so where the persons concerned were not interned. that the Original- per
ly the South American passporte might constitute a and 11
the sons with these of German nationals in South American countries Other Le
not exchange improbalbe that they still have vague hopets of this. have reasons been
Regraded Unclassified
-2- CIRCULAR, May 1, 7135 p.m.
have been suggested for their lack of consistency. Recently however
they have been making inquiries through some of the protecting powers
of the South American Governments conserned regarding the genuineness
of the documents and they have been submitting lists of persons concerned
with a view to verification UNQUOTE
Sir Herbert Emerson, Director of the Intergovernmental Committee,
on the basis of the foregoing recommends that the Latin American
Governments in whose names such passports have been issued, be approached
on two points, QUOTE (first) that the Governments should refrain from
withdrawing the passporte which have been issued and (second) that if
and when the protecting power on the request of the German authorities
submits lists of persons with such passports they should instruct the
protecting power that the passports have been confirmed UNQUOTE
Although the Department does not condone the unauthorized issue of
presports, it does not follow that the Department whould vi thhold its
intercession in & situation in which the lives of so many persons are
at stake. The Department and the War Refuges Board agree with Emerson
that where thousands of human lives lie in the balance because of var
conditions and enemy persecutions, appropriate steps should be taken
to avoid the nonrecognition by the Germans of such passports.
The Department understands that these passports, appearing on
their face to have been issued by competent officials, are valid
until they are cancelled. While Department agrees that the Govern-
ment to which you are accredited is entirely within its right in
cancelling such passports, it urges that the right of cancellation of
be not exercised until the holders shall have reached a place
safety, so that the act of cancellation shall not be, in essence,
asked is that the Government to which you are accredited deal with
condemnation of the holder to a terrible death. All that is here
the question at a. time when it shall occasion the le ast possible
measure of human suffering.
SPECIAL INSTRUCTIONS TO THE AMBASSADOR,
You instructed to memorise the contents of thee airgram,
burn the document are and discuss the matter orally with the government the
to which are accredited. Such report as you submit to
Department you on this subject should be by mcret courier."
April 11, Swiee Foreign Interests Division has advised him to 10-
1944, 11:00 14th "Minister Harrison at Bern has informally informed
us that the government had been requested by the Germans held
quire that persons internees governments of the the into government holding Spanish in the have enemy-controlled bona such denied such to fides passports. which inquiries responsibility of you certain territory are through Please accredited Latin as and approach the well American that government and as the appropriate any inquire passports, Latin claims of whether Spain American of officials the or 11 by
has received any the Germans with respect to the idity of passporte
held otherwise by such from interness and if such inquiry has been made, please ascer-
tals the nature of the response. If any.
In View
Regraded Unclassified
-1-
CIRCULAR, May 1, 7:35 p.w.
In view of the prileus situation in which these internees find
themselves, the conclusion has been reached that perhaps the only way
of misguarding the lives of these unfortunate victims of Nasi perseo®
ution is forthwith to intiiate through proper channels negotiations
for an exchange of actionals for which these people will be eligible.
In contemplating such exchange negotiations, it is not expected that
the government to which you are accredited will physically admit
any such persons into its territory even on a temprazy or tentative
basis. This Government is prepared to take full reponsibility for
all arrangements necessary to route these persons to places elsewhere.
Proceeding on this basis, please approach the government to which
you are accredited with the request that it give its approval to the
Government of the United States approaching the German government
through appropriate channels with a view to initiating such negotig-
tions. Please also advise appropriate officials of the government to
which you are accredited that similar requests are being made of other
Latin American countries, it being the hope of this Government that it
will be put in B. position to initiate exchange discussions as a hemie-
pheric basis. Please also advise such officials that in any exchange
negotiations that may be entered into, it is of course understood that
unquestioned dtisens of the United States and of the Latin American
countries will be considered by this Government as being in a category
entitled to priority over others.
Please also request the government to which you are accredited,
on humanitarian grounds, affirmatively to approach the German govern-
ment through the protecting power vd. th a demand that the lives of
all persons holding passports issued is its name or claiming its citi-
wenship on the basis of consular documents be safeguarded and that
they be given all rights, privileges and immunities accorded to civilism
interness of enemy nationality to whom the Geneva Convention regarding
the treatment of prisoners of war is currently applied by analogy.
In view of the igminent danger in which the persons concessed
find themselves, you are requested to act with the greatest possible
dispatch.
Finally, ve communicate to you, for communication to the govern-
ment to which you are accredited, the substance of a cabbe which the
Department has sent to our Minis at Bern as follows: QUOTE Altho ugh
the motives of the Germans in according better treatment to Jeve of
Polish origin holding passports and dher documents issued in the
names of Latin American countries are not too clear, it would appear
that they include (1) some hope that they might be considered exchange
material against Germans in the Western Hemisphere and (a) some fear
that their ill-treatment might afford the Latin American countries &
pretext for further limiting the freedom and economic activities of
Germans resident in such countries.
The neasure reported is your 1958 of March 30 may be as indication
that Germany is beginning to doubt whether such Java are considered 02-
of Germans is latts America. This Government regards it as essential
change material and whether their treatment would affect the treatment
that these
Regraded Unclassified
CIRCULAR, May 1, 7135 D.B.
that these doubts be promptly and effectively disspelled.
Accordingly, please request the good offices of the Swies Govern-
ment in informing the Germans that this Government 10 undertaking die-
cussions with Latin American countries for a further exchange of Ger-
mans in the Western Hemisphere for persons in German-costrolled ter-
ritory and that in this connection, the United States considers that
all persons in Vittel and elsewhere holding passports and other docu-
ments issued in the name of Latin American countries will be eligible
for such exchange.
Simultaneously, please request the appropriate Swise authorities
to advise the Germans that in the meantime this Government expects
that these persons will be accorded the same rights, privileges and
imunities that the German government expects will be accorded to
Germans in the Western Hemisphere. You may add that a considerable
number of German civilians interned by various Latin American countries
have been placed by such countries in the custody of the United States
and are presently in such custedy within continental United States.
For your information, the substrace of this message is being
communicated to our Missions in the Latin American countries concerned.
Ve are also making inquiry of such Latin American countries with
to you by the Swise Foreign Interests Division which you referred
respect to the authenticity of the information informally conveyed
to in your 1994 of March 31 UNQUOTE
SPECIAL INSTRUCTIONS TO THE AMBASSADOR,
You instructed to memorise the contents of this airgram,
burn the document are and discuss the matter orally with the government
to which you are accredited. Such report as you submit to the
Department OR this subject should be by secret courier."
April 22, 1944, 7130 p.m. "Referring to the Department's the circular
airgrams is the substance of a meage received from London by who Sir
of April 11, 11:00 a.m., and of March 31, 1:05 p.m.,
following Herbert Emerson, Director of the Intergevernmental Committee, Jerusalem is
Now commander Vittel Camp advised March 20 about 250 to 300 interness by
in Washington: QUOTE According cables Jewish Agency,
new South American passports that they were not recognized
holding concessed. It is alleged these persons already here isolated has
government which caused pasic and despair. Agency
for partial deportation list of people affected, mostly Polish Jews previously of Palestine put on
list certificates. Palestine assurance and in of Is the veteran view to exchange 11ght Swies of Agency Zienists, of the protecting list this imminent trying in Government's Rabbie, order to power danger obtain to et that stave cetera, which deep officials from these off faces concern Colonial for deportation persons of grant the for the Office proons placed their Government UNQUOTE formal involved, welfare, OR to
you should communicate accredited to the appropriate urgency with which favorable circular responses ad
which you are along the lines described in our to inform rgrams such
of and April active 11 seasures and March 31 aceded. You say also wish officials
Regraded Unclassified
115
-5- CIRCULAR. May 1, 7:35 p.m.
officials fat in addition to the approach to Switzerland referred
to in our circular airgram of April 11, we have also requested
Ambassador Hayes similarly to approach the Spandsh Government.
Please keep the Department premptly advised of all developments
in this matter."
HULL
(GLW)
Sent te: Uruguay, Gustemala and Chile.
S/CR
WEB: GLW: KGs OMH
4/28/44
Regraded Unclassified
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Imbassy, London
TO:
Secretary of State, Washington
DATED:
May 1, 1944
NUMBER: 3556
SECRET
ATTENTION OF THE WAR REFUGEE BOARD.
In accordance with instructions as contained in the
Department's 2292, of March 25, and 3243, of April 22,
the Embassy has on several occasions approached the
Foreign Office in regard to the proposal to establish
havens for refugees in Tripolitania and Cyrenaica. In
connection with the proposal a responsible official at
the Foreign Office stated today that there were involved
political problems, but that the Foreign Office was
actively pursuing the matter and was in touch with British
officials on the spot with regard to the establishment of
this haven for refugees. This official informally stated
that the case had become further complicated by the fact
that many Arabs had moved into some of the regions under
consideration for havens. Assurance was given the Embassy
that, as soon as possible, a formal reply would be forth
coming.
WINANT
Regraded Unclassified
ORIGINAL TEXT OF TELEGRAM list
FLOM:
Secretary of State, Washington
TO:
AMLEGATION, Lisbon
DATED:
May 1, 1944
NUMBER:
1229
SECRET
CABLE TO NORWEB, LISBON, FOR DEXTER
Reference your no. 1168, April 19, and no. 1183,
April 20. Following message is for Dexter from Fehle:
"In connection with proposals of Weissman con-
cerning rescue of hidden children from France through
Spain to Portugal, you are requested immediately
to contact Dr. Joseph Schwartz of the American
Jewish Joint Distribution Committee who, as you know,
is extremely competent and experienced in this field.
You should take advantage of his knowledge and back-
gound in this particular program. Schwartz is already
operating such a rescue program under appropriate
Treasury license, text of which was cabled to
Ambassador Norweb, permitting the necessary commun-
ication with persons in enemy territory as well as
the necessary financial transactions. It should be
noted that aside from its wide experience in this
type of operation and adequate personnel the
American Jewish Joint Distribution Committee has
substantial funds available and has shown its will-
ingness to cooperate wholeheartedly on all our
rescue programs.
"It is appreciated that the problem of working
with the various private organizations in Portugal
cannot be resolvef from this end. While it is, of
course, our policy to work in harmony with all
organizations, the Board feels that the program to
rescue children from France would be greatly endang-
ered if two organizations without coordination through
you should be trying to rescue the same children with
the possibility that fewer lives are saved. Since our
main goal is to rescue the mazimum number of children
in the shortest possible time, we feel you should
use your best judgment in utilizing all agencies in
those ways that will best achieve our aim.
"The problem of where to send the children who
are actually rescued should, of course, be determined
after they have been save d and depends upon exist-
ing facilities at that time."
THIS IS WRB CABLE TO LISBON NC. 8.
HULL
Regraded Unclassified
PARABHRASE OF TELEGRAS RECEIVES
FROM:
American Legation, Lisbon
TO:
Secretary of State, Washington
DATE:
May 1, 1944
NUMBER:
1307
SECRET
Following is WRB no. 11.
According to latest news approximately one hundred
children and adults, rescued by Jewish Congress, are
in Spain at present. On May 1, first group of our
children arrived in Lisbon. In order to keep work going
satisfactorily it is necessary to borrow money on
personal credit. I am trusting that it will be repayed
by WRB. Please ask WRB director to instruct Dexter to
refund $5,000 to me which has been borrowed to present
time. Although he has funds here he should be given
authority to make payment. In addition I urge that you
ask War Refugee Board to put $50,000 at disposition of
Lisbon Embassy for purpose of providing funds for
rescue and support of more children and for rescue of
adults. It is plan of both adults and children to
go to Palestine, and we are to be responsible for their
care. Their departure from occupied territory is expected
shortly. Our rescue work terminates and frontier
organization disintegrates in same way (?) (7) (?)
unless these funds are received from WRB or some
other source.
NORWEB.
NOTE: Last part of message garbled (serviced).
Regraded Unclassified
NCB-852
PLAIN
Lisbon
Dated May 1, 1944
Rec'd 6423 p.m.
Secretary of State,
Washington,
1316, May 1, 6 p.m.
WEB 13
FOLLOWING FROM JOSEPH SCHWARTZ FOR LEAVITT JOINT
DISTRIBUTION COMMITTEE NEW YORK.
"Following report received from Shanghai first
four months 1944 through local community:
'All figures below mentioned are local dollars
and in thousands, Our credit balance first January
1758 received during January February March 1944
various local loans and Swiss donation total 24894
receipts in April almost nil total receipts 26652.
Expenditures for feeding, 15487; housing, 3911; medical,
992; cash instead of food 2039; monetary assistance
loans 143; various donations, 240; administration
expenses. 96, total, expenditure until 31st March
approximately 23000. Since April first till today
spent entire cash balance approximately 3652. Are
without funds and without possibility of paying over-
due bills and without money for May expenditures
estimated 140.00 Swiss france, At present impossible
borrowing locally urgent help required telegraph
immediately in case no assistance forthcoming
immediately will be forced to stop next week hot
meals and reduce bread distribution, Mailing
monthly statements with fullest particulare.'
Local community will make special one time grant
$5,000 to mest energency. SS MILCA arrived Istanbul
from Constanza yesterday carrying 272 refugees who
leaving by train today for Palestine. This 1e
fourth boatload to arrive."
HORWEB
EJH
WED
Regraded Unclassified
3-862
PLAIN
Lisbon
Vay 1, 1944
Rec'd 7:28 p.m.
lecretary of State
Washington,
1317, May 1, 6 p.m.
WRB 15.
FOR WAR REFUGEE BOARD AND RABBI STEPHAEN WISE
NEW YORK FROM WEISSMAN.
Regret despite intervention of others Joint (*) will
not collaborate or finance maintanance rescued children
unless children handed to them. Consider absolutely
indispensable that arriving orphans should remain in
our care for preparationand expedition to Falestine.
Have arranged with respective Governments for payment
maintenance of their Nationals. Majority of children
Allied Nationals. Concerning few stateless children
sending amil report with suggestions. Have already
organized reception centers here. Will send Congress
regularly data and photos children.
First group six children arrived May first.
Following children have relatives in US: Helene Spiel-
mann 14 years, and Paul Spielmann, 10 years, Uncle Her-
mann Spielmann, Brooklyn, watchmaker, street address
unknown; Edith Tieberg, 15 years, Uncle Margosches
first name unknown, Editor THE DAY, New York; Edith
Affenkraut, 14 years, married sister Sophie Specter,
3729 North Seventeenth, Philadelphia; Malvina Bodner,
12 years, Uncle Jacob Bodner, diamond cutter,
Brooklyn, street address unknown. Spielmanns Tieberg
and Affendkraut all have additional relatives in Pales-
tine andesire go there. Please trace relatives in
America through Jewish Press if necessary and advise
relatives opinion regarding children's destination.
Second group arriving May 3. Cable reply.
NORWEB
EJH
KTD
(*) Apparent omission
Regraded Unclassified
121
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Portugal
TO:
Secretary of State, Washington
DATED:
May 1, 1944
NUMBER: 1308
CONFIDENTIAL
This is WRB's no. 12.
We refer herein to the Embassy's no. 1307 of May 1
and WRB's no. 11.
Definite authorization to pay for maintenance of
children from WRB funds here should be given the Embassy.
Am also of the opinion that for any immediate anticipated
needs the sum of $50,000 asked for is entirely too large.
NORWEB
Regraded Unclassified
DSH-843
Stockholm
This telegram must be
paraphrased before being
Dated May 1, 1944
communicated to anyone
other than & Gar ernment
Rec'd 5:44 p.m.
Agency. (s0-00)
Secretary of State,
Washington.
1534, May 1, 4 p.m.
This is number 6 for War Refugee Board.
Information reported in Department's 755 (War Be-
fuges Beard's 6) appears to be in error si nce there is
no knowledge of any such ships locally. Reports may be
based on fact that in June 1943 approximately 5 tone
of used clothing arrived from the United States on
Swedish Vessel destind for Polish war refugees. Such
Biothing is now stored in free harbor awaiting authori-
sation from London and Washington to distribute same to
needy in Poland. Polish Legation here recently cabled
Polish Embassy in Washington to renew request for
authorization to distribute this clothing.
JOHNSON
WTD
JRL
Regraded Unclassified
DEPARTMENT OF STATE
Peraphrased and sent May 1, 2 p.m.
Foreign Economic Administration
CONFIDENTIAL
AMLEGATION,
BERN.
1508
FROM CROWLEY AND STONE FEA.
Your 1334, March 4, 2122 April 6, and 2305
April 13.
Ve are requesting NEW to approve immediately the entire list
of foodstudfs and medical supplies. and to instruct British Legation
at Bera accordigly, Please take prompt action subject to confirms-
tiom by London.
HULL
(GHK)
DCR;RLHIATM SWP
WTStone
Liaison:
BA-813-HSKiser
4/25/44
ect Gerden
Regraded Unclassified
RECT-830
PLAIN
Bern
Dated
May 1, 1944
doc'd 5:30 p.m.
Secretary of State,
Washington.
2758, first.
Axis press and agencies report following
developments Hungarian Jewish situation:
One. Internment in concentration camps 300,000
Jews residing sub-Carpathian Russia and other declared
military operations districts including both sexes all
ages except doctors, druggists, and workers in war
industries. Internment commenced late March now
completed with largest camps located neighborhood
Munkacs and Ungvar.
Two. Establishment legal basis for creation Jewish
ghettos throughout Hungary by decree providing Jews in
communities under 10,000 population may be compelled
move other communities and Jews in communities over
10,000 may be forced live specified residential areas
closed to non-Jews.
Three. Institution effective May 3 of restrictions
on consumption meat, fats, and sugar, by Jews with
special rations meat only for Jewish heavy workers in
war industries.
HARRISON
CAW
WTD
Regraded Unclassified
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMCONSULATE GENERAL, Istanbul
TO:
Secretary of State, Washington
DATED:
May 1, 1944
NUMBER 270258
SECRET
The following developments in the Jewish situation in
Greece are reported by repatriated Turkish Jews: On the 24th
of March all registered Jews in Athens were confined at
Haidari concentration camp. On the following days registered
Jews from the provinces arrived. The Haidari camp was evacuated
on April 2, and repatriation vas ordered for Portuguese, Turkish,
and Spanish Jews, Argentine Jews were left in cam (*) and
there were leaded on trains for unknown destination, believed
to be the Resienstadt, all others possibly totaling 4,000.
The suggested assistance (see Department's telegram of
April 26, 1944, no. 257) has been complicated by these develop-
ments since there are officially no Jews in Greece, the Jews
who are registered having been removed while the Jews in hiding
have lost the last remmant of rights through failure on their
part to emply with registration order issued by the Germans.
The foregoing was repeated to Cairo for Mac Veigh and
was repeated as my no. 10 to Algiers.
SQUIRES
(*) Apparent omission
DCRI IDBIFB
5/3/44
Regraded Unclassified
ORIGINAL TEXT OF TELEGRAM SINT
FROM:
Secretary of State, Washington
TO:
AMERASST, Moscow
DATED:
May 1, 1944
NUMBER: 1081
SECRET
CABLE TO AMBASSADOR HARRIMAN, MOSCOW
The War Refugee Board requests that you deliver
the following message to Samuel Chobrutsky, Moscow
Jewish Community, @pasoglinistchevsky #8, Moscow,
U.S.S.R.:
QUOTE Our Vasi Hahatzala Emergency Committee
Relief and Rescue Agency comprising Rabbinical and
other Orthodox organisations interested in obtaining
information regarding position of Jews, in territories
freed by Russian Army with view to sending relief,
if needed, Ve suggest you as head of Jewish commun-
ity in Moscow present matter to your Government and
request information regarding situation, need of and
possibilities for giving relief. Inform us if you
have complete list Rabbis and Teshiva scholars.
Advise us giving details by message to War Refugee
Board, Washington, through American Embassy, Moscow,
or through Soviet channels. Vaad Hahatzala Emer-
gency Committee Rabbis Rosenberg, Silver, Levinson,
Kotler, Kalmanowits, Grosowski UNQUOTE.
HULL
Regraded Unclassified
127
PARAPHRASE OF TELEGRAM RECEIVED
PROM: lloseow
DATED:
May 1, 1944, 7 Pelle
NUMBER: 1551
US
URGENT
NOST IMMEDIATE
with reference to my 1506, April 29, 5 Palle and
your 1052, April 27, B Pallie, I regret that I have not
been able to get a reply to the question raised by the
Secretary of the Treasury despite efforts throughout
yesterday and today to ⑉ the Commissar of Finance
and Vyshinski or Molotov. All government offices are
closed today and tomorrow because of official Seviet
holidays. Our efforts to obtain a reply shall be
continued although it seems likely that the delay
probably springs from the fact that the Soviets have
not yet reached a decision, in addition to the diffi-
culties presented by the preparation for the holidays
and the holidays themselves.
The foregoing should be brought to the attention
of the Secretary of the Treasury.
HAMILTON
FMA1E0C:ja
5/2/44
Regraded Unclassified
PARAPHRASE OF TELEGRAM RECEIVED
PROM: Moseow
DATED: May 1, 1944, 7 Peme
NUMBER # 1851
B
URGENT
MOST IMMEDIATE
With reference to my 1506, April 29, 5 Pame and
your 1052, April 27, 8 pelle, I regret that I have not
been able to got a reply to the question raised by the
Secretary of the Treasury despite efforts throughout
yesterday and today to 500 the Commissar of Finance
and Vyshinski or Molotov. All government offices are
closed today and tomorrow because of official Seviet
holidays. Our efforts to obtain a reply shall be
continued although it seems likely that the delay
probably springs from the fact that the Soviets have
not yet reached a decision, in addition to the diffi-
Julties presented by the preparation for the holidays
and the holidays themselves.
The foregoing should be brought to the attention
of the Secretary of the Treasury.
HAMILTON
FMA:EGO:ja
5/2/44
Regraded Unclassified
PARAFERASS P TISCRUM SOUTD
PROM: Hoscow
DATED: May 1, 1944, 7 pelle
NUMBER: 1531
US URGENT MOST IMMEDIATE
with reference to my 1506, April 29, 5 Pello and
your 1058, April 27, 8 Palle, I regret that I have not
been able to get a reply to the question raised by the
Secretary of the Treasury despite efforts throughout
yesterday and today to 000 the Commissar of Finance
and Vyahinski or Molotov. All government offices are
closed today and tomorrow because of official Seviet
holidays. Our efforts to obtain a reply shall be
continued although 10 seems likely that the delay
probably springs from the fact that the Soviets have
not yet reached a decision, in addition to the diffi-
culties presented by the preparation for the holidays
and the holidays themselves.
The foregoing should be brought to the attention
of the Secretary of the Treasury.
HAMILTON
FMA1E00:ja
5/8/44
Regraded Unclassified
NO2 TO BE RE-TRANSMITTED
COPY NO.
SECRET
OPTEL No, 139
Information received up to 10 a.m., 1st May, 1944,
1. NAVAL
On 29th/30th Motor Torpedo Boats off HAVRE claim to have
damaged 8. group of E-boats, A Greek Submarine sank a caique off
CRETE 13th. On 28th one of H.M. Submarines torpedoed and probably
sank a German controlled Greek ship of 4,700 tons loaded with muni-
tions on passage from PIRAEUS to CRETE. Several U-boats attacked
a homeward bound convoy from North RUSSIA on 30th and sank one ship.
2. AIR OPERATIONS
WESTERN FRONT. 29th/30th. ST. MEDARD-EN-JALLES. 268
tons H.E. dropped. Series of explosions started lasting half an
hour, Ground defences negligible, no fighters. CLERMONT FERRAND -
217 tons, mostly H.E., practically no opposition from ground or air.
30th. 295 U.S. heavy bombers despatched. Fortresses
attacked airfields at LYON-BRON 248 tons, and CLERMONT FERRAND 263
tons. One Fortress missing. Liberators bombed military constructions
PAS DE CALAIS 181 tons. Sorties by light and medium bombers and
fighters totalled 2,766. Attacks made on military constructions 583
tons; Transportation targets 533 tons, and airfields 61 tons.
Enemy casualties reported:
In the air
25, 1, 9
On the ground 17, 2, 20,
Ours - 9 aircraft missing.
30th/1st. 492 aircraft despatched:
Goods yards SOMAIN, 12 miles north of CAMBRAI
138
Goods yards PARIS/ÁRCHERES
132
German Air Force ammunition dump MAINTENON
116
Mosquitoes to SAARBRUCKEN and DUREN
33
Sea Mining
48
Bomber Support, Intruders and Leaflets
25
1 Halifax missing and 2 aircraft crashed, crews safe. Preliminary
reports: MAINTENON - huge fires and spectacular explosions. ACHERES
I
attack well concentrated. SOMAIN - attack well concentrated in
later stages.
FRANCE. Reference OPTEL 138. TOULON. 29th. 1,171 tons
dropped.
ITALY. 28th. 1,573 offensive sorties flown mainly
against communications and supply dumps in central sector. 3 dnemy
aircraft destroyed, 1 of ours missing.
28th/29th. Wellingtons and Liberators dropped total 60
tons at GENOA and PIOMBINO.
30th. Principal attacks by heavy bombers:
Aircraft factories VARESE
180 tons
140 "
MILAN BRESSO
Railway Centres - MILAN
263 #
ALLESANDRIA
492 H
Four bombers missing.
Regraded Unclassified
131
May 2, 1944
9:30 a.m.
STATUS OF RANDOLPH PAUL
Present: Mr. D. W. Bell
Mr. Gaston
Mr. O'Connell
Mr. C. S. Bell
Mrs. Klotz
H.M.JR: Herbert, you sat in on all my conferences
with Paul, so your memory will be fresh on this thing.
What was your impression-why did I make Paul Assistant
to the Secretary?
MR. GASTON: So that he could pick up his accumulated
annual leave.
H.M.JR: Was it in your mind that I would keep him
just for that period, or longer?
MR. GASTON: That was my understanding, that you would
keep him for that period, that he would be on leave and
would be drawing salary as Assistant to the Secretary until
he used up his accumulated annual leave, and then he would
be off the pay roll.
H.M.JR: I felt that he was going to stay and do work,
and I gave him assignments, and so forth, and so on.
MR. GASTON: Well, I think that was more or less left
open, that you would call him back, because you did discuss
the question or some things that you did want to ask his
advice on. That, of course, would extend the period during
which he would draw salary for annual leave. But that was
the purpose of putting him on the pay roll, to allow him to
be paid up for the annual leave.
Regraded Unclassified
132
- 2 -
MR. D. 1. BELL: I understood he matter of doing
same work came after the question of his being Assistant
for his annual leave.
MR. GASTON: That is true. That was an afterthought.
H.M.JR: It was?
MR. O'CONNELL: Yes. Several weeks after that Randolph
was at a staff meeting. You asked him to come down to a
meeting to do something on post-war taxes.
MR. GASTON: When you had lunch with him 8. day or two
after his resignation was announced, I was there.
H.M.JR: Evidently my memory was wrong. But it doesn't
affect this thing one way or the other. Now, what I want
to know is--let me just tell you what happened: Paul had
lunch with me yesterday. By accident I ound out--he told
me that he had a case, two cases, which he has taken retainers
for. It turns out that one of them was before the Bureau.
And he told me yesterday that he had just sort of found out--
I don t know whether he found out; it wasn't very clear--
maybe Joe told him--that this law about not being able to
practice for two years before the Treasury wasn t so.
Now, Paul consistently told me that one of the reasons
he was anxious--this, I am sure--was that the two years should
begin to run--
MR. GASTON: He told me that, and told you that. He
said he was a little uncertain about how broad the scope
was of that law, but at the same time he didn't want any
question to arise.
H.M.JR: Now, he suddenly finds out that he can practice
law.
MR. D. W. BELL: There isn't any question, is there,
that he can practice on any case that wasn't before him?
MR. O'CONNELL: Yes. The thing that Randolph didn't
recall was that in the tax bill which was passed a month
Regraded Unclassified
133
- 3 -
or six weeks ago there was a provision inserted in the
renegotiation section of the bill which permits people
who have come to the Treasury, the War Department, the
Navy Department, or Maritime Commission since a date in
1940 to practice law before Government agencies as soon as
they leave the Government, except in connection with cases
that they worked out while they were with us. In other
words, they remove the two year prohibition.
H.M.JR: Who got that?
MR. O'CONNELL: Jim MacIntosh and 8. fellow working
for the Navy Department. It was intended to take care of
two or three men working for the War and Navy Department
Price Adjustment Boards, and they wanted to have it clear.
H.M.JR: Who is MacIntosh?
MR. O'CONNELL: Counsel for the Price Adjustment
Board.
H.M.JR: Are you sure it is they who got it in?
MR. O'CONNELL: There were other people affected, but
I am sure they did.
H.M.JR: Will you tell me how Paul didn't know that
thing was in there?
MR. O'CONNELL: Well, I think he did know, as well as
I knew, but he had been thinking for months about resigning.
This particular provision was in and out of the bill. It
was put in in the House and taken out in the Senate, and
ultimately back in in conference. It is a perfectly anomalous
provision, nothing to do with the rest of the bill.
I think in Paul's thinking of the two-year prohibition,
which has existed for years, he didn't have in mind any
more than I did the proposition that this amendment elimi-
nated that two-year provision.
MR. GASTON: Doesn't the date make it fit him?
Regraded Unclassified
134
- 4 -
MR. O'CONNELL: Yes, because it applies to people
who came to the Department after May 27, 1940. He came
in 1941.
H.M.JR: Are you sure that nobody in the Treasury
had anything to do with it?
MR. O'CONNELL: Absolutely, because the provision was
inserted in the Ways and Means Committee sub-committee
while the bill was being considered by the sub-committee.
The Treasury had no one present there; the War and Navy
Departments handled the bill.
After the provision was put in in the House, Stan
Surrey talked to me about it; we talked to Wenchel, Paul,
and 8 number of others. The question was, "Should we oppose
the provision as one which would unduly relax the legal
requirements with respect to practicing?" We came to the
conclusion that regardless of how much there was in this
in the way of relaxation, that the Secretary still had the
power that he had always had with respect to controlling
the regulations--the rules with respect to people admitted
to practice before the Treasury Department, and we did not
have any basis for opposing this. The Department of Justice
took the same view, and the provision was left in.
I can assure you 8. hundred percent that no one in the
Treasury Department had anything to do with respect to the
introduction of the provision. We were never asked before
any committee whether we liked the provision, and we never
took a position with respect to it. And Mr. Paul had nothing
to do with it, nor did anyone in the Treasury Department.
I can promise you that. It is a broadening of a provision
contained in the renegotiation statute of the year before.
You see, it is written in terms of the Departments that have
authority to renegotiate. It was intended to cover people
who are connected with renegotiation in the agencies which
have the power. But as written, it covers all employees
in the Departments who have the authority to renegotiate.
So Treasury employees, War, Navy, Maritime, and RFC employees
are covered by it and granted that exception.
Regraded Unclassified
135
- 5 -
MR. D. W. BELL: It covers tax cases, too?
MR. O'CONNELL: Any employee regardless of the type
of case.
H.M.JR: But they cannot practice before the Bureau
of Internal Revenue?
MR. O'CONNELL: Yes, they can. The statute reads to
the effect--it is citing the various criminal statutes--
the ones that prevent representing clients before the
Government--"Nothing in these statutes shall be deemed
to prevent any person by reason of service in a Department--"
now, those are the agencies with authority to renegotiate--
"during the period or a part thereof beginning May 27,
1940, and ending six months after the termination of present
hostilities, from acting as counsel, agent, or attorney
for prosecuting any claim against the United States." Nothing
will prevent them from doing that, in the statute, "Provided
that such persons shall not prosecute any claim against the
United States, one involving any subject matter directly
connected with any such person was so employed, or, two,
during the period such person is engaged in employment in
the Department." Now, that means that when you leave the
Department you are no longer subject to the rule of the
old statute, which is 190 of Title five.
H.M.JR: When did Paul find out that he could practice
before the Bureau?
MR. O'CONNELL: Well, I told him at the time that he
submitted his resignation, which was on the 22nd of March.
I told him, and that was where I was wrong, that when he
was no longer with the Department he was completely free to
practice law, and he was free to the extent that this made
him free from any two-year rule with respect to what he
could do after he had left the Department.
Now, where I was wrong--end there is no law other than
the practice on the subject--I assumed that the purpose of
having him submit a resignation on the 22nd of March was
to sever all of his connections with the Department at that
time, except the connection necessary to collect his pay.
Regraded Unclassified
136
- 6 -
Now, the practice has been--and I have since found
out that Tim Mooney had the same difficulty; Tim Mooney
sacrificed, I think, four or five thousand dollars in
earned leave, because he was concerned about the propriety
of his practicing law while he was on leave status from the
Government.
H.M.JR: Isn't the maximum around thirty-two hundred?
MR. C. S. BELL: No, sir.
MR. O'CONNELL: No, you can accumulate up to ninety
days. Actually you can get about four months.
MR. C. S. BELL: No, you are pretty close.
MR. O'CONNELL: It was about four months' pay.
MR. C. S. BELL: Carry over ninety days and accumulate
what you have in the year.
H.M.JR: That would be a third. Three times five
would be fifteen.
MR. O'CONNELL: I am a little high.
H.M.JR: I think you will find it is around thirty-two
hundred, but that is unimportant.
MR. O'CONNELL: In Tim Mooney's case, when he resigned,
I learned after this question about Paul came up--the thing
I missed was, it never occurred to me that Randolph was
going to have any cases before the Government before he
had exhausted his leave, and I didn't focus on the problem.
But I felt--and there is no law either way--the only thing
is, the practice has been that regardless of your resignation,
unless your leave has expired, you are not--
H.M.JR: Yes, sir, you said you had heard of his
practicing before the Bureau as of Saturday.
MR. O'CONNELL: That is right. The way it came up
was, last Wednesday he appeared up in Newark in connection
Regraded Unclassified
137
- 7 -
with 8 trust case, and I believe our lawyer up there
raised the question with him as to whether he was entitled
to appear in that case.
H.M.JR: Our lawyer?
MR. O'CONNELL: When he came back here on Friday he
tried to speak to me, and I was busy and out of the office.
He spoke to Tietjens. Saturday morning Norman and I talked
about it. We wrote to the lawyer in Newark and said we
had the matter under consideration.
I told Randolph we were re-examining the thing, but it
was very doubtful, and my doubts were confirmed on Monday
as to whether, even though he had severed all connections
except for leave pay, he could with propriety represent a
client before the Government. Now, that is the problem
during the time he is still on a leave status, but he has
done all he could to sever his connections, except sacrifice
his leave.
MR. GASTON: The question of propriety is no question
at all; it is grossly improper.
Now, the second thing is, it seems to me there is
something in that statute about the regulations of the
Department applying--haven't we regulations which forbid
it?
MR. O'CONNELL: No, well, not if he has left the
Government, because we have 8. regulation that says that
you cannot practice law in violation of Section 190. This
is an amendment to 190.
MR. GASTON: But our regulations would not be amended
by the amendment to 190.
MR. O'CONNELL: Oh, yes, this is an amendment to 190.
We say & man may not practice law in connection with & matter
after he leaves the Treasury, if he had anything to do with
it, if he was in the division that handled the case, or if
it is in violation of Section 190. Section 190 has been
changed.
138
- 8 -
MR. GASTON: I have three points: One is that it is
grossly improper.
Second, he hasn't left the employ of the Department,
which makes it illegal.
And third, I think our regulations should be amended
to provide that notwithstanding the provisions of this
section no person in the Treasury Department is permitted
to practice.
MR. O' CONNELL: There is nothing in the regulations
about a person in the Treasury--
H.M.JR: But the thing that burns me on this thing is,
Randolph Paul, Assistant to the Secretary, at ten thousand
dollars a year, appeared in the courts against the Treasury
while he was Assistant to the Secretary. You fellows can
go through all the somersaults that you want in order to
get his leave pay, which is technically correct.
MR. GASTON: I say it doesn't make any difference. I
am in agreement with you completely.
H.M. JR: I say that Randolph Paul never should appear
in a court against the Treasury while he is Assistant to
the Secretary.
MR. GASTON: I agree with you a thousand percent,
whether he is working or not working.
H.M.JR: All this moral talk and the rest of the stuff
makes me sick to my stomach. And certainly before he went
in there--it isn't clear in my mind yet, Joe, how Randolph
throws it entirely on you.
MR. O'CONNELL: I think he is to an extent correct,
because I advised him, and the purpose of his signing a
resignation on the 22nd of March and signing a leave slip
on that day was to terminate insofar as it was possible
all connection with the Treasury Department. I told him
that he was free to practice law. I wasn't thinking in
terms of representing anybody before the Treasury, because
Regraded Unclassified
139
- 9 -
it didn't occur to me that that would develop, but that is
done every day. Everyone goes to work for somebody the day
he leaves. It was only in the Tim Mooney case that some-
body wanted to represent a client before the Government
that the question arose.
H.M. JR: You can't tell me that Paul, irrespective of
the advice you gave him, a very brilliant person, must have
realized he was doing something questionable.
MR. GASTON: I would like to ask Charlie what the rule
is 80 far as a person who is on annual leave, who submitted
his resignation and then begins to take his annual leave,
and his resignation is effective at the conclusion of the
annual leave, is concerned. Can he go out and get any
ordinary job and accept pay in addition to his annual leave
pay?
MR. C.S.BELL: Yes, sir.
MR. O'CONNELL: It is only the conflict that raises
the question. There is no statute that says--what we are
talking about is the impropriety of a man working in an
inconsistent position with the one he is being paid for.
That comes up when he is representing a client against the
Government.
H.M.JR: Put the other thing on the record about his
asking you for a file.
MR. O'CONNELL: Well, I mentioned that to you last
night, and I think in fairness to Randolph that this was
not improper. I mentioned it because it was consistent
with the position I took that he had severed his connections;
just before he left he asked for a Bureau file in connection
with a matter which was perfectly proper for him to have.
When the file was received over in Wenchel's office, he had
resigned. Phil called me and said, "I am not going to give
Mr. Paul the file, but I will send it to you.
I said, "Go ahead and send me the file."
He sent me the file; it was very interesting, &
situation which I have since talked to Roy Blough about.
Regraded Unclassified
140
- 10 -
But I told Randolph he could not see the file because
he was no longer connected with us, It was an advertising
case. It was the case I mentioned to you at the staff
meeting on Monday where this Philadelphia company had
advertised, done some institutional advertising by reprinting
editorials from PM and other magazines. We had a letter
from Stam asking whether the advertising was deductible.
It is quite a bad case.
H.M.JR: Which side is Paul on?
MR. O'CONNELL: I haven't any idea.
H.M.JR: Is he retained?
MR. O'CONNELL: Oh, no, he asked for the file while
he was General Counsel. Somebody complained to him.
H.M.JR: Oh, I thought he was being retained.
MR. O'CONNELL: Oh, no.
H.M.JR: Of course, aside from everything else, it
makes such a jackass out of me. Here I am--I didn't know
anything about this. He sits in his old office.
MR. O'CONNELL: He only comes in every once in &
while.
H.M.JR: But he is practicing before the Bureau.
MR. O'CONNELL: There is no escape from that.
MR. GASTON: If he has cases before the Bureau and
intends to go through with them he has to be cut off the
pay roll. Either that, or he has to give up the cases.
Regraded Unclassified
141
- 11 -
H.M.JR: He is not going to give up the cases.
MR. O'CONNELL: They will cut him off as of the 25th
of April. He has been paid up to that point. It was the
day after that he appeared in Newark.
H.M.JR: When was the last day he was paid?
MR. O'CONNELL: The 25th. He appeared on the 26th.
It is 8. coincidence, but is a good one.
MR. GASTON: To protect him, that has to be done.
H.M. JR: How about protecting the Treasury?
MR. GASTON: I mean, protecting both. It is just as
important. to protect him from his point of view, if he
needs that protection, a S well as the Treasury.
MR. O'CONNELL: He needs it more, but I am more wrong
in this than any other one person.
H.M.JR: I think you are, but I appreciate your forth-
rightness in admitting it, instead of arguing about it.
That is why I made this little speech to you and Charlie
last night.
Now, where is his resignation?
MR. C. S. BELL: I have it in my office.
H.M.JR: Is it signed?
MR. C. S. BELL: Yes, sir.
Regraded Unclassified
112
- 12 -
MR. O'CONNELL: Dated the 22nd of March; it nas
been there since the 22nd of March.
MR. C.S. BELL: He didn't put an effective date;
he left that to us.
MR. O'CONNELL: That is as Assistant to the Secretary.
H.M.JR: You have had that, as Assistant to me?
MR. C.S. BELL: Yes, sir, effective June 3, but he
didn't put an effective date. I just got a little card
from Norman - "Make this effective June 3."
H.M.JR: what did Paul do about it.
MR. C.S. BELL: He signed it.
MR. O'CONNELL: It is dated the 22nd of March.
MR. C.S. BELL: The 29th - he didn't put the effec-
tive date in because he didn't know what that was.
MR. D.W. BELL: He left it to Norman to figure out.
MR. GASTON: That was apparently an advance resig-
nation that he could use to close up their records,
when his annual leave expired.
MR. O'CONNELL: No, I dictated that resignation.
I had a purpose in doing it. I made it, "I hereby resign
as Assistant to the Secretary" period. lie signed it.
I talked to Norman about it, whether he should not say,
"effective at the expiration of the annual leave."
The theory of having it signed at that time, in
my mind, and having him sign the leave slip at that time,
was to cut everything off except his right to get leave.
I was trying to do it that way, and Norman seemed to
think that would be effective.
Regraded Unclassified
143
- 13 -
Now, we weren't thinking, primarily, of the fact he
would want to practice before the Treasury. It never
occurred to anybody. 1 understood ne was going to take
a vacation and wasn't going to do anything for several
months.
H.M.JR: Certainly filled Gaston and myself with
that, didn't he?
MR. GASTON: Yes, he told me he wasn't so sure about
how far this two-year limitation went, but at the same
time, as a matter of ethics, he wouldn't want to take any
case before the Treasury Department within the two-year
period. 50 he was anxious that period would begin to
run.
M. O'CONNELL: That is right. Anyhow, all he did
was sign the resignation. The simple thing now is to
accept the resignation, effective April 25. Isn't that
right, Charlie? Isn't it true that all the Secretary
has to do is to accept the resignation, effective
April 25?
MR. C.S. BELL: That is right. Put a date in there
and then change his leave card.
H.M.JR: I don't want any tampering. This says
June 2.
MR. O'CONNELL: That is the expiration of the leave.
He signed it at the front end, when the leave starts.
H.M.JR: "I submit herewith my resignation as Assis-
tant to the Secretary."
MR. D.W. BELL: When you acknowledge that you will
accept it effective as of June 2. That is what you
would have done, normally. Now you accept it effective
as of April 25.
MR. C.S. BELL: That is correct. That is why those
littie red marks there - acceptance June--
Regraded Unclassified
144
- 14 -
H.M.JR: Then it is all right. You don't have to
do any tampering?
MR. C. S. BELL: Not a thing, no, sir.
H.M.JR: Will you fix that up today?
MR. C. S. BELL: Yes, sir.
H.M.JR: Or have you already done it?
MR. C. S. BELL: No, sir.
H.M.JR: Well, that is that. It is unfortunate.
Do I have to say anything to Paul?
MR. O'CONNELL: No.
MR. D. W. BELL: Does he know?
MR. O'CONNELL: We told him yesterday afternoon.
H.M.JR: I would rather say it to him, myself.
MR. GASTON: He should have asked for it, himself.
Regraded Unclassified
145
April 25, 1944
Dear Randelph:
As requested in your letter of March 29, I accept
your resignation as Assistant to the Secretary, to be
effective at the close of business on April 25, 1944.
Sincerely,
thu J.
Secretary of the Treasury.
Mr. Randelph 1. Paul,
Assistant to the Secretary,
Treasury Department.
paul
Regraded Unclassified
116
May 2, 1944
10:15 a.m.
JEWISH EVACUATION
Present: Mr. Gaston
Mr. White
Mr. Pehie
Mr. Luxford
Mr. DuBois
Mr. Smith
(The Secretary reads from notes of April 8)
H.M.JR: The point is that we should sound out
Congress. You went as far as John McCormack, didn't
you?
MR. PEHLE: Yes.
H.M.JR: And McCormack told you he was for it him-
self, but he wouldn't even think of introducing a little
bill he had because he knew he couldn't get it through.
MR. PEHLE: Às far as getting legislation through
Congress, that is right. Since then there has also been,
Mr. Secretary, as you recail, two things: One, the
Gailup Poll that the White House took which was much
more favorable than we had anticipated--
H.M.JR: The White House took?
MR. PEHLE: Yes, sir. That was taken pursuant to the
request of the White House. Niles did it on his own,
without our knowledge or request.
H.M.JR: Niles isn't White House yet.
Regraded Unclassified
117
- 2 -
MR. PEHLE: well, he is Assistant to the President,
and I assume--
H.M.JR: Well, anyway, he asked the Gallup Poll to
do it.
MR. PEHLE: I don't know the inside of the arrange-
ment. They have apparently an arrangement whereby the
questions the White house are interested in, the Gallup
Poil takes & poll. And they took a poll, copy of which
I have here, which I sent to you, showing seventy per-
cent of the people who were sounded out approved it,
twenty-three percent disapproved, and seven percent
didn't have any reaction. The question was not put in
its most favorable way. It could have been put much
more favorably than it was. Secondly, growing out of a
press conference that I had, more or less by accident,
there was considerable newspaper publicity and there
has been B. lot of radio publicity.
McCormack introduced into the record all of Grafton's
articles on free ports, which is the same idea put in
different terms. All of the publicity has been favorable.
We have received from organizations such as the YWCA,
and the Federal Council of Churches of Christ in America,
and the American Friends, and other organizations, very
strong support. And the only opposition we have gotten
are three or four letters, most of which are anonymous
letters of the crank type.
So, since we have talked, I, at least, have grown
much more confident of the public acceptance of this
thing.
H.M.JR: well, when did we have that meeting over
in Hull's office when we brought this up? Was it before
or after this April 87
MR. PEHLE: It was before.
MR. GASTON: March 21, I think.
Regraded Unclassified
119
- 3 -
H.M.JR: 1 don't see why you men were 80 surprised
yesterday, or acted SO surprised, that I had changed my
position, and 80 forth and 80 on. The way I left it was
that you should go and sound out Congress. You were
very doubtful on April B, too.
MR. PEHLE: I was very doubtful as to whetner
legislation could be put through Congress.
H. JR: You know and I know that you can't get
any legisiation through Congress.
MR. PEHLE: 1 am still doubtful. 1 am less doubt-
ful than I was because of the public acceptance of this
thing when there has been so much publicity. It was
on the front page of both the Herald Tribune and New
York Times. We have had no Congressman raise Cain about
it.
H. JR: Let me change my position. I don't think it
has been changed - I read this very carefully and I repeat
myself - I don't want to put the President on the spot.
That is what I said.
Now, we send this thing to him, knowing that you
can't get the immigration laws changed at this time,
and there is nothing that has been brought to me except
a very bad report from McCormack as far as the Congres-
sional attitude is concerned.
Now, I don't believe that the President should do
this by Executive Order.
MR. PEHLE: That is the part where we disagree,
Mr. Secretary.
H. JR: That is all right. I think your comparison
comparison between this and the fifty destroyers than .
to the fifty destroyers is ridiculous. There is no more
well, I don't know.
Regraded Unclassified
119
- 4 -
My job - one reason 1 wanted White here - my job
is to look after the President's interests, and I think,
for us to dump this thing in the President's lap, urging
nim to do this by Axecutive Order, knowing the temper of
Congress - well, I just can't go on.
MR. DuBOIS: That memorandum doesn't urge him to
do it by Executive action. It puts up four alternatives,
to let him take his choice. He may well feel it is
wiser to do it that way.
H.M.JR: It puts me in the position of urging him
to do it. You don't say I am opposed to doing it by
Executive Order.
MR. DuBOIS: We say that Mr. stimson, in particular, did not
feel it should be done.
H.M.JR: You can add me to that, because I don't
think it is in the President's interests to ask him to
do something at this time by Executive Order, which,
from my impression of the temper of Congress, is going
contrary to the temper of Congress.
MR. LUXFORD: Mr. Secretary, I gather it would be
your opinion that Congress would not enact any legisia-
tion necessary here. I gathered that from your statement.
If that is true, then there is no hope for the camp
program.
H.M.JR: Now, wait a minute. I went over this whole
thing. were you in the room?
MR. LUXFORD: I was here.
H.M.JR: We talked about the thing and at that
time Pehle was entirely in my corner.
MR. LUXFORD: I wasn't here at the other meeting.
H.M.JR: No, but I read this. What I am worried
about is this: It is all right to have this fellow
Regraded Unclassified
- 5 -
Grafton, or whatever his name is, and some other people
go through these things. It is ail right. Everybody
is for it, just like McCormack is.
McCormack says, "John, 1 am for this thing, but you
let the President do this thing by Executive Order,
then you see the wolves jump on him and the Congress
takes action to vitiate what he has done." And I believe
that they could.
Now, it is one thing, as I say, to do the fifty
destroyers, for which, incidentally, we got something
in return, but 1 an not even going to compare the two
because the one is the fighting of the war and the other
thing is the saving of lives. I don't think the two
things are comparable.
MR. LUXFORD: Saving lives is the narrow objective,
but in the broader plane the destroyer deal represented
a change in the thinking of a lot of people in this
country on what our part was in the war. Right now, this
has a broader aspect, too. It means & change in this
Government's attitude on & major problem.
MR. DuBOIS: This is more than--
H.M.JR: Just a minute. what you people have avoided,
and you haven't taken this thing head on, and that is to
find out what Congress would do. Now, that I asked you
to do, and you haven't done it. You asked one person;
you got unfavorable reaction and you stopped. Now, what
I want to know is this, that if the President did this
thing by Executive Order, what are the chances that the
Congress would overrule him?
MR. DuBOIS: Of course, it is an entirely different
thing, Mr. Secretary, to try to test that out before he
does it, as cistinguishedfrætrying to find their temper
after he does it.
Regraded Unclassified
151
- 6 -
H.M.JR: But you are on record that you would like
to see the President do the thing and then have the
Congress override him.
MR. DuBOIS: I never said that.
H.M.JR: Oh, yes, you said that right at the bottom;
you said that might be good.
MR. DuBOIS: My point is that there is no chance.
MR. PEHLE: Just the opposite, Mr. Secretary.
H.M.JR: Just let me see.
MR. PEHLE: It is on Page 5, the bottom paragraph,
which I insisted go in.
MR. DuBOIS: Of course I wouldn't want this done if
I thought the Congress would override it. It would be
the worst thing in the world.
MR. SMITH: That isn't the worst; it wouldn't be
that they overrode it, but they certainly would have an
anti-propaganda campaign that would shake the world.
MR. PEHLE: I don't think SO.
MR. LUXFORD: I have changed completely.
MR. SMITH: You haven't been west of Pennsylvania.
MR. DuBOIS: Miss Laughlin just got back from a
trip around the country and she reported a very favorable
reaction.
MR. SMITH: That is just one person.
MR. DuBOIS: Well, the Gallup Poll is very convincing.
H.M.JR: This is what I read--
Regraded Unclassified
152
- 7 -
MR. DuBOIS: I would like to put my position a
little differently. I feel that we can get the President
to send a strong message to Congress, and that we have
a reasonable chance of getting it through, particularly
at this time. But in any event, I feel if he is unwill-
ing to act on his own, that we should run the risk of
having it turned down in order to try to get it through
Congress. That is a different point.
H.M.JR: "I feel so strongly this is the essence of
& real success in this program - but I feel we might as
well make the issue clear now, once and for all. It is
different.
MR. DuBOIS: But I knew you had the turn-down.
R.M.JR: Dut it was the turn-down of the President,
not the Congress.
But I still feel, and I would like to hear from
White and Gaston, that what we are recommending - at
least what you are asking me to recommend to the Presi-
dent - is he do this thing by Executive Order - and
then what happens to the President?
MR. WHITE: Well, I share your concern with respect
to the paramount desideratum; namely, will - if I under-
stand it correctly - will this seriously adversely
affect the position of the President and his chances for
re-election? If it is going to seriously jeopardize his
chances for re-election, or significantly so, I think it
should be avoided at all costs, because I think it is
more important that he be re-elected and do larger
things, than run the chances of not being re-elected in
order to accomplish these minor results.
If that is the concern that is playing a major role
in our own judgment, I find myself completely in sympathy.
H.M.JR: I am asking your advice. These men want me
to go on record to the President that he do this by Execu-
tive Order.
Regraded Unclassified
153
- 8 -
Mile WHITE: Yes, I am leading up to that.
H.M.JR: I have got to make up my mind here. Should
I, or shouldn't I,go along?
MR. WHITE: That is right. I said that if that is
the consideration, as I understand it, and nothing else
other than that consideration, if my opinion hears any
weight in this matter.
In other words, in my opinion the only thing that
would deter me from making the recommendation that ne do
it by Administrative action would be the conclusion, or
the feeling, or the judgment, that by so doing, ne would
significantly jeopardize his chances for re-election
more than are already in existence. I don't feel it would
be a significant factor in determining his election.
Therefore I am unqualifiedly in favor of recommending
that he do it by Administrative action. I don't think
Congress would override him.
I don't think that Congress would pass the bill in
any case, or at least I have my doubts, and I think
that if he would do it Administratively - and there is
a grave question there - but that decision, I think,
should be his.
Certainly, in my judgment, we should not hesitate to
recommend it to him, unless, as I say, one can make a
dize his re-election. Since I don't feel it would, I feel
strong case for saying that by so doing he would jeopar-
that, unquestionably, the recommandation ought to be that
he should do it by Administrative action if he sees fit.
H.M.JR: Herbert?
MR. GASTON: I am inclined to think that he should
consult more leaders of Congress before he takes any other
McCormack, Martin, and whoever is the Republican leader
action, a group of the real leaders - Barkley, nayburn,
in the Senate. If they say, "We probably couldn't get
8. bill through, but there won't te any violent action in
go ahead and do it by Executive action. If he submits
Congress if it is done by Axecutive action," then I would it
to Congress, 1 would have him submit it with 8 strong message.
Regraded Unclassified
154
- 9 -
MR. DuBOIS: We have the alternative in there,
Mr. Gaston.
MR. GASTON: Before doing anything--
MRS. KLOTZ: That is all in there.
MR. GASTON: That is one of the alternatives, but as
I understand, we are discussing which is the preferable
alternative.
MR. WHITE: Take the position of these leaders, Herbert.
If there is the slightest doubt in their minds, they are
not impelled very strongly to take what they would regard
as the slightest chance. I think that at a time like this
they would be cautious on any problem you asked them, no
matter how small it was. No matter how important, they
would say, "Let things alone; it is too dangerous at this
stage of the game.
I think that is 8 decision which the President could
make, because the President is confronted, as these leaders
are not, with the responsibility of that choice, and I
think that the answer you would get from every one of them
would be, "Well, on the whole at a time like this I think
it is better to let sleeping dogs lie, and let's see what
we can do next year. It is unfortunate, but I am inclined
to think that would be their answer. And I don't think
that their evaluation at this time is a good one, because
there is nothing on the other side pushing them. There is
no responsibility, no great emotional feeling on their part.
MR. PEHLE: Particularly if it is put up to them by
somebody other than the President. McCormack we could sound
out, because we knew he had some feelings and interest about
this. But for somebody down the line to say, "If the President
does something, what will you do?" that smacks almost of
impertinence to do that. I mean, the President is the man.
He has his own ideas as to what Congress does, and he is
the one who has to consult them as to what he does. Maybe
he doesn't want to consult them, but that is something he
ought to decide, I believe, Mr. Secretary.
MR. LUXFORD: Mr. Secretary, if I could speak from my
own experience, when this thing was first raised, I was
afraid of public reaction. I was brought around; that is,
Regraded Unclassified
155
- 10 -
we argued the thing out, that it did have & chance. The
more I have seen of it, and of public reaction on the basis
of the trial balloons that were thrown out, it has been
favorable. Now, just along that same line, Will Rogers, Jr.
said the other night--it was very interesting to me--on
this issue of the Jewish problem, he said he had been amazed
at the warm response there was in the American public for
any measures of this kind, that everybody had misjudged
and felt that we were cynical and harsh. If you only give
them 8 chance, they will carry you through on this kind of
a measure. It is just that people are too freely misjudged.
I had misjudged it.
MR. DuBOIS: Everybody has been saying that labor would
be opposed. We just found out the other day, almost by
accident, that the AF of L passed a resolution in their
October meeting recommending this very same thing.
H.M.JR: Fred?
MR. SMITH: I don't think that anybody has any evidence
one way or another, frankly. I think that you are talking
about--well, take Will Rogers, for example. ne is very much
in favor of this. ne is very likely to say exactly what
he said in a sort of "whistling in the dark" way, although
it might be true. I am not saying it isn't true; I don't
know. Your favorable editorials are a drop in the bucket,
and I think they carry no weight whatsoever as evidence.
One thing I would like to hit first of all is--you
bring the destroyer deal--whether that is pertinent or
million dollars was spent before the President made B move
isn't, up you are all overlooking the fact that about half a
on that, and by some of the ablest public opinion people The
in the country in advertising and everything else.
ground was cultivated for that better than the ground has
been cultivated for anything before or since. That has not
been done on this, and I C ertainly wouldn't think of doing
it unless could find somebody, not 8 Jewish organization, aid
but an organization you of the same type as the Committee million to
the Allies, to sink a half million or 8. quarter of a four
dollars into doing a job over B. period of three or
Regraded Unclassified
156
- 11 -
months, and see what happens. Now, you have that part of
it underway; then you can go into Congress; you can get
some Congressmen to bring this thing up on the Floor after
your ground has been laid, again I say, and get it knocked
around there by experts and see what happens. Then if
the thing looks all right, you can do either of two things.
Either it would be obviously safe for the President to do
it by Executive Order, or it would be obvious that even if
he asked Congress to do it and came out for its support, it
would be done. But I don't think you can do this right out
of A clear sky. I don't think you can put the President
in that position.
Here is one thing, Harry, you have to bear in mind:
The President has the minority vote. Therefore, the Repub-
licans have nothing to lose.
MR. WHITE: Well, you are not selling 8 new brand of
tomatoes; do a half million dollars of advertising. You
have had the equivalent of billions of advertising in
the sense that the public is aware of the general situation.
There have been innumerable accounts and stories, particularly
in the last five or six months, of the problem, and I think
it is a little unreasonable to say that you have to prepare
the ground. The ground is either prepared, or there is
nothing you will ever do about it.
MR. SMITH: You are wrong, Harry. The ground is pre-
not prepared for opening up this country to let other people
pared for being sorry for the situation. The ground is
in, no matter what kind of refugees they are. I am not
anybody who comes in from the outside. I don't believe we
specifically saying Jewish, but any kind of & foreigner,
are ready to open up our borders yet to do that. I think
most violent reaction in the world if it were done without
as soon as you got west of Pennsylvania you would have the
proper preparation.
MR. DuBOIS: One difficulty of preparation--you might
as well forget it if you wait three or four months.
less time than that you could test it out. But I still say
MR. SMITH: If you had B lot of money spent in much
that it is either that or nothing.
Regraded Unclassified
157
- 12 -
MR. LUXFORD: How do you ignore the Gallup Poll
report?
MR. SMITH: I am not sure it is B. good Gallup Poll.
MR. PEHLE: What do you mean by that?
MR. SMITH: I don't know whether Gallup did it or
how widespread it was.
MR. PEHLE: I don't know; it was the method used by
the White House to test public opinion on issues.
MR. SMITH: Maybe it is all right. I am not disparaging
it.
MR. WHITE: I think there are S ome things in which the
President has to lead, provided he doesn't jeopardize the
major issue; merely because he may get some people sore at
him who won't vote for him anyhow, or some other people
sore who might vote for him is not at issue. The question
is, is it a desirable thing to do? What is the cost of
doing, it? what is the cost of not doing it? I say if it
doesn' jeopardize his chances of election, then it is
his function as 8 leader, and for other reasons.
MR. PEHLE: And he will know better than anybody else
in the world, it seems to me, whether this is a thing that
will jeopardize his chances. I can't even talk in terms
of jeopardizing his chances, because the people who are
going to get aroused on this hate him with an undying anger
anyhow.
how I feel about this thing so there will be no misunderstand-
H.M. JR: I have heard enough. I would like to tell you
ing. I am prepared to say that I am for this. I am prepared
plain that he will have to make up his own mind how he wants
to say it to the President. But I want to make it perfectly
to do it. And I don't want to put methods into his mouth or
endorse the thing as to how he should do it. I don't want
to he should do it by Executive Order, by Congress, by
this, say or that. I am simply willing to say, Mr. President,
Regraded Unclassified
158
- 13 -
I am prepared to recommend this to you as a good thing.
You will have to decide how you want it received."
MR. DuBOIS: I think, in effect, that is what it says.
MR. WHITE: Will he know that he can do it by Executive
Order without saying so?
MR. DuBOIS: We give him four alternatives.
H.M.JR: Of course, what they do is--
MR. DuBOIS: The decision of the Board is that he
submit these four alternatives to you, and the only thing
we say--
H.M.JR: Now, look, fellows--
MR. WHITE: It may be slanted.
MR. PEHLE: Of course it is slanted. You can't take
the slant out. It is slanted in the direction of getting
the thing done--this memorandum. Of course it is.
MR. LUXFORD: You wouldn t do your job if you didn't
slant it.
MR. PEHLE: That is right.
H.M.JR: That is where I was going to make my little
speech. I don't deal with the President that way, and I
want to deal with him on the same level that I always
deal with him. That is why when I send him cables down
into whether it is slanted or not. That is why I get these
on this thing he takes what I tell him without looking
prompt replies in connection with Harry. That is just why
I object to this thing. I don t want you to take offense,
but what I am saying is offensive, what I am going to say.
I don't want to be smart with him. And I don't want you
boys to be too smart with me.
Over 8 long period I have gotten along all right with
him, and I want to maintain that position with him. I am
Regraded Unclassified
159
- 14 -
here looking after his interests. In order to accomplish
something, I don't want to be too smart.
MR. LUXFORD: Mr. Secretary, no one for à minute
thinks that is smart. On the other hand, I defy anyone
to say they don't have a slant on anything. Anything is
slanted; if you make it neutral, it is slanted.
H.M.JR: No, no, we were very, very careful. You were
here that night when I went over that. You complimented me
the next morning, insisting that Harry make up his mind
before--
MR. LUXFORD: That didn't go into the slant of it,
I believe.
H.M.JR: It changed that sentence, though.
MRS. KLOTZ: That was not putting the President on the
spot.
H.M.JR: But I don't want to make it embarrassing for
him so he feels, "Well, now, the War Refugee Board has put
this thing up to me."
MR. PEHLE: It can't be too embarrassing when Stimson
argues at great length and we spread out his argument,
saying, "Don't do it by Executive Order." The Attorney
General's recommendation is right in here.
MR. DuBOIS: I thought this was more loaded against it
than for it, as a matter of fact. It gives four alter-
natives, and gives the views.
H.M.JR: But I want to be on record that I am not
recommending the method. I am recommending the project.
How can you you put the thing in there 80 that it is clear
Now, fellows want him to do it by Executive Order. that
I am not telling him how to do it?
MR. PEHLE: We can find & way to do that.
Regraded Unclassified
160
- 15 -
MR. GASTON: I don't find an objectionable slant in
here, so far as I have seen it. It is slightly slanted,
particularly because the argument--
MR. PEHLE: Is in favor of the project.
MR. GASTON: The argument against the Stimson con-
clusion is stated last. But after all, it is merely
stating on the other hand--there is this to consider on
the one hand, and on the other hand--
MR. PEHLE: When I said it was slanted, Herbert, I
meant it was slanted strongly in favor of doing something.
I thought we were very fair with Mr. Stimson, who feels
much stronger about the President not doing it on Executive
Order than you do. I felt it was 8. very fair statement.
That is what he told me, "You put it very fairly."
MR. WHITE: I should imagine the President has a right
to expect that you have given this more thought than he
has, and being a member of the Board and having given it
more thought that you would have some views, not only as
to whether it should be done, but also as to what might be
done. For example, you are convinced, or you at least
feel that Congress would not pass it. Now, I think that
may be information which he may not have at his disposal.
I don t quite see the harm in indicating that you would
feel there would be considerable difficulty in getting
Congress to pass it. But you think it ought to be done.
Therefore, that suggestion is, it ought to be done some
other way. After all, you are on the Board. It isn't as
yours. You are speaking as a member of the Board, just as
though you were interfering in some business that isn't
Stimson is speaking as & member of the Board.
H.M.JR: What would satisfy me is, where in the body
and of what the Attorney General thinks, if you will put
of this thing where you are talking of what Stimson thinks
in that Morgenthau thinks that before he does anything he
should consult with the appropriate Members of Congress,
period.
MR. PEHLE: Perfect.
Regraded Unclassified
161
- 16 -
H.M.JR: Just leave off "Not with the view."
MR. PEHLE: Sure.
H.M.JR: That is what you said.
MR. GASTON: That is what I said, and I think for two
reasons: I am inclined to believe 8.8 John says, that the
sentiment of this country would be for this thing, considerably
more than the majority. But when you take this Executive
Order action, you bring in another issue which is the issue
of defiance of Congress in acting on an important national
question without consultation with Congress. That is a
different issue from the issue of whether you ought to have
camps for refugees saying--
H.M.JR: I simply want to be quoted as saying that I
think he should consult with the appropriate Members of
Congress before taking any action, but leaving out what
he should--just on the over-all problem. See?
MR. PEHLE: Certainly. That is perfectly agreeable.
H.M.JR: Is that agreeable?
MR. PEHLE: Certainly. Of course.
H.M.JR: If you will put that into the body--
MR. PEHLE: I agree fully with that. I think he
ought to, too.
H.M.JR: Is there any difference between us on that?
MR. PEHLE: No, not on that point.
H.M.JR: That is all. Say that I am in favor of the
thing, but before he takes any steps he should consult with
the appropriate Members of Congress.
MR. PEHLE: Right.
H.M.JR: What do you want ne to do then to push
this thing along?
Regraded Unclassified
162
- 17 -
MR. PEHLE: If you would sign it, it would be easier
for me to get Hull to sign it, and then get Stimson to
sign it.
H.M.JR: This will be changed?
MR. DuBOIS: It will be. The attached memorandum, I
take it, you want changed.
H.M.JR: Yes.
MR. DuBOIS: The best thing, if you could do it, of
course, Mr. Secretary, would be if you and Mr. Penle could
see Mr. Hull. That would be the best without your even
signing it.
MR. PEHLE: Or, if you could call him and say, "This
is a memorandum--'
H.M.JR: You have something else there that is ahead
of you on this thing.
MR. PEHLE: What?
H.M.JR: Argentina.
MR. LUXFORD: We ought to get an answer today on
that, Mr. Secretary.
H.M.JR: Well, get an answer on that, and then this
will come next.
w
MR. PEHLE: All right.
H.M.JR: If you fellows feel it helps you to go over
there, I am willing.
MR. PEHLE: Oh, it helps; sure, it helps.
H.M.JR: In the room here, the President will not be
back until the end of the week.
Regraded Unclassified
163
- 18 -
MR. PEHLE: The end of this week? Mrs. Roosevelt
indicated at her press conference yesterday that it would
probably be another week yet.
H.M.JR: The word we have is the end of the week,
isn't it?
MR. GASTON: I didn't check.
MRS. KLOTZ: I did. It is the end of the week.
H.M.JR: Let me just read this again carefully.
Would you have any objection to making two number one?
MR. WHITE: I think it probably belongs as number one.
MR. PEHLE: What, two? No, we can change the order.
H.M.JR: Make two number one.
MR. PEHLE: We will do that.
MR. WHITE: I am wondering, isn't the President entitled
to know how many you expect? That would make an awful lot
of difference.
MR. PEHLE: What is that?
MR. WHITE: Would you expect fifty thousand, or a
hundred thousand.
MR. PEHLE: We said that even if no people were
brought over, this would be a very substantial step.
H.M.JR: You rewrite that. No time is being lost,
because we have all agreed that we shouldn't t send this.
Have you any feelings on the suggestions I have just made?
MR. LUXFORD: No, it is all right with me.
MR. DaBOIS: It is all right.
Regraded Unclassified
164
- 19 -
H.M.JR: Don't tell me you agree with me! I may be
wrong.
MR. LUXFORD: No. We could ask more, but that is
all right.
MR. SMITH: I still say that you ought to take some
trouble to cut some of the opposition out from under him
before you do it.
MR. PEHLE: We have done some of that.
H.M.JR: You should do more.
MR. PEHLE: We can't.
MR. WHITE: You ought to spend about fifty million
dollars to eliminate anti-Semitism--money that returns
a dividend of minus forty percent!
H.M.JR: Well, we will hear about the thing today?
MR. LUXFORD: That is what they told you on Friday.
Do you want us to nudge them?
H.M.JR: Yes.
Regraded Unclassified
165
May 2, 1944
11:55 a.m.
HMJr:
Hello.
Fred
Vinson:
Henry, what I wanted to talk with you about was
the advertising that comes out of the War Adver-
tising Council work.
HMJr:
Oh, yes.
V:
Ah -- it's in regard to mentioning insurance, and
if so, in what manner. I understand that the
O.W.I. boys have talked to some of your fellows
and there's a difference of opinion about this
situation and I want to talk with you about it.
HMJr:
Well, I'm not familiar with it, Fred, but I'll
find out who's handling it and call you back.
V:
Well, the situation
....
HMJr:
Or I'm available any time.
V:
The situation is simply this
....
HMJr:
Yeah.
V:
and as far as we're concerned, frankly, it
don't make a great deal of difference.
HMJr:
Yeah.
V:
As far as I'm concerned.
HMJr:
Is this life insurance?
V:
Yes.
HMJr:
Yeah.
V:
They've got two proposals.
HMJr:
Yeah.
V:
And I'll read it to you BO you can have that
background.
HMJr:
Please.
Regraded Unclassified
166
- 2 -
V:
Now, after -- they say what people can do to help
hold down the cost of living and insure & sound
state of the nation. "1. Buy only what you really
need."
HMJr:
Yes.
V:
"Check ceiling prices and 80 forth. Don't take
advantage of war conditions to ask more money
for yourself."
HMJr:
Yes.
V:
"4. This is the -- Save, pay off debts, protect
yourself and family against a rainy day with
adequate life insurance and savings."
HMJr:
Yes.
V:
"Buy and hold all the War Bonds you can afford."
HMJr:
Yes.
V:
Now, as an alternative to that "4"
....
HMJr:
Yes.
V:
this 1s suggested: "Buy and II hold all the
War Bonds you can afford
HMJr:
Yes.
V:
"--dash-- to pay for the war and insure your
future -- period -- Save -- period -- Keep up
your life insurance."
HMJr:
I see.
V:
Now, that has a little less emphasis on the --
on the life insurance end of it.
HMJr:
Well, Fred, would you be a little more explicit?
I don't quite understand what you want me to say
or do.
V:
Well, it's -- it's O.W.I. who is in contact with
some of your fellows.
HMJr:
Yeah.
Regraded Unclassified
167
- 3 -
V:
And I forget -- I ought to know their names --
Smith
HMJr:
Yeah.
V:
And I'm inclined to think -- ah -- White.
HMJr:
Yeah.
V:
Now, one of them took one position and one of
them took the other position about having any
specific empha -- specific reference to the
purchase of life insurance.
HMJr:
I see.
V:
Now -- on the ground that that might be hurtful
to the sale of War Bonds
HMJr:
Well
V:
and that
HMJr:
Seems kind of far-fetched to me.
V:
Well, it does to me except for one further piece
of information.
HMJr:
Yeah.
V:
On the side against putting it in
HMJr:
Yeah.
V:
that 1s, a.s to buying -- now, on that side
it was said that some high-powered salesmen took
the advertisement out and used it to pump up the
sales of life insurance.
HMJr:
I see.
V:
But it seems to me that that might be a pretty
good that would interfere with your War Bond
thing. I don't -- I didn't want to sales. do anything
HMJr:
Yeah.
V:
And I would think that it would be a minimum.
HMJr:
Yeah.
Regraded Unclassified
168
- 24
V:
....
of disadvantage.
HMJr:
Yeah.
V:
Personally, I like the alternative one better.
HMJr:
I see.
V:
Because it puts the emphasis on "Buy and hold all
the War Bonds you can afford
If
HMJr:
Yeah.
V:
If
....
to pay for the war and insure your future."
HMJr:
Yeah.
V:
"Save, keep up your life insurance."
HMJr:
Yeah.
V:
See?
HMJr:
Yeah. Well, let me look into it and I'll give you
a call back. How's that?
V:
All right. Now, they're wanting -- they've been
pressing me and I should have called you a long
time ago and
HMJr:
Well
V:
if you can check
....
(12:00 o'clock sirens blow
HMJr:
Wait a minute. I can't hear. We've got all these
whistles.
V:
I say, they've been pressing me about them and I
should have called you a long time ago but I just
didn't -- I just -- it.looked to me like a kind of
picayunish matter one way or the other.
HMJr:
Yeah.
V:
Whatever you say about it, why, I'll do.
HMJr:
Well, thank you.
V:
All right, Henry.
Regraded Unclassified
- 5 -
169
HMJr:
Thank you.
V:
Bye.
HMJr:
Bye.
Regraded Unclassified
170
On the end of Fred Vinson record.
Operator:
Yes, sir.
HMJr:
Who is this?
Operator:
Spangler.
HMJr:
Am I clear?
Operator:
You are now.
HMJr:
Well, let me just say -- this is a conversation
with Fred Vinson. I'd like it typed and a copy
sent to Fred Smith and after he's digested it
and has the answer, please talk to me promptly.
Now, that's that.
Operator:
All right.
Regraded Unclassified
171
THE UNDER SECRETARY OF THE TREASURY
WASHINGTON
May 2, 1944
MEMORANDUM FOR THE SECRETARY'S FILES
This confirms what I told the Secretary this
morning in our walk around the Elipse.
In our cash position estimate, which was the
basis for Mr. Haas' memorandum on financing, in
our talks with the ABA Committee and with the repre-
sentatives of the Federal Reserve System, we included
$100 million a week of additional money to be obtained
through the issuance of additional Treasury bills
beginning April 6 and running through until the first
week of June, when it would be further increased to
$200 million a week, increasing from time to time
thereafter until we had raised, out of a total of
about $13 billion directly from the banks, $7 billion
additional through the sale of Treasury bills. We
also included an increase of $2 billion in the May 1
certificate of indebtedness.
It will be recalled that the Bankers approved
the bill program but recommended that the additional
funds which we contemplated raising through the
May 1 certificate be eliminated at this time because
be recalled that Mr. Eccles and Mr. Sproul, while
they thought it would help the Drive. It will also
agreeing in principle with the recommendation that
additional bills should be issued, wanted us to
change the rate from 3/8% to 1/2% for four months
and submitted a memorandum along this line.
In our discussions with the Federal Reserve
people I told them that we could not agree to the
increased bill rate, whereupon Mr. Eccles asked for
a. few days in order that he might submit an alternative
to the proposal first submitted. They have worked
on this alternative practically the whole month of
NO
VICTORY
April, submitting it to me the middle of last week.
BUY
They propose that we do all of our interim financing
STATES
through the issuance of additional Treasury bills --
that we offer initially $1,200 million Treasury bills
Regraded Unclassified
172
- 2 -
each week, an increase of $200 million over the
present issue, which would include $600 million
of three months 3/8% bills and $600 million of
six months 5/8% bills. They would place a buying
rate of 5/8% and a repurchase option on these new
bills. It was their contention that the banks do
not want the 3/8% bill, that the Federal Reserve
System will eventually get all of these bills.
They believe that if we would issue the 5/8% bill
the banks would again become interested in them
and in addition we would get quite a lot of additional
corporate balances; that the 3/8% bill would be nothing
more than a money market instrument which the Federal
Reserve Banks would get and which would be the medium
through which excess reserves are supplied.
We considered this memorandum here in the
Treasury and came to the conclusion that we should
not adopt the Federal Reserve suggestions for the
following reasons:
1. Many uncertainties lie immediately ahead
of US. People seem to have the invasion jitters and
there is some question being raised now in the minds
of market people as to whether the Federal Reserve
System will be able to maintain the market if the
contemplated invasion is 8. failure. It is also a
political year and comment is beginning to be heard
on the declining Federal Reserve ratio, and it is
just preceding a war financing program where the
goal is the largest we have yet had.
2. If the rate is changed to 5/8% as suggested
by the Federal Reserve, we believe it will be inter-
preted as the first step towards the change in the
pattern of Government securities interest rates.
This may have an adverse effect on the Fifth War
Loan.
Reserve System, are rates for one-day money. We do
posted buying and repurchase agreement by the Federal
3. In effect, the 3/8% and 5/8% rates, with
not see how the Federal Reserve can maintain two
rates like this.
Regraded Unclassified
Under all the circumstances I told Kr. Recles
yesterday over the telephone that I felt the
Treasury should not adont his suggestions and
that I was going to recommend strongly to the
Secretary that he not go along for the reasons
enumerated above. I told him that we had now
lost a whole month in our bill program, excess
reserves were down to $600 million, the market was
not any too strong, and I thought it was time we
increased the bills to $1,200 million instead of
$1,100 million as originally contemplated, (1) in
order to pick up some of the balance that we had
lost through delay in inaugurating the program,
(2) in view of the fact that the money market
apparently needs some bills, and (3) that currency
is going out at the rate of about $100 million a
week and I can see no earthly excuse for paying
more than 3/8% on the excess reserve being provided
by the Federal Reserve (except those provided as
a result of support given the bond market) and on
the currency provided largely for hoarders.
Mr. Eccles said that he agreed there ought
to be additional bills and if we could not agree
on this proposition that they have submitted, he
saw no objection to going ahead with $1,200 million
in bills next week. He said he would like to have
a promise that after the Fifth War Loan Drive we
would again consider this matter. If we are not
satisfied with this, he would like to have us con-
sider a certificate of indebtedness at 3/4 of 1%
instead of the 7/8%; that we eliminate the 7/8%
certificate from any drives subsequent to the Fifth
War Loan Drive; and that we replace the certificate
in the Drive with either a 1% or a. 1-1/4% note.
I told him that we would be glad to take a
look at it right after the Fifth War Loan Drive.
I also said it was possible that the $1,200 million
bills issued between now and then will give some
indication as to whether the banking system wants
additional bills.
Regraded Unclassified
174
- 4 -
I also talked with Bob Rouse, going over
practically the same story that I told Mr. Eccles.
He said he saw no objection to going ahead with
the bill program as contemplated herein. He thought
it would be a good thing to increase them to $1,200
million next week.
The Secretary approved the program of increas-
ing Treasury bills beginning the week of May 11 to
$1,200 million, to continue each week on that basis
until the cycle is completed unless otherwise in-
structed.
DuB
Regraded Unclassified
175
25.
MAY 2- 1944
Ky dear Governor Rigertent
It is a pleasure to acknowledge receipt of your
letter of March 28, 1944, enclosing A check in the sus of
$67,257.18 representing a donation to be applied against the
cost of the construction of a bomber for the ngmed forces.
It is gratifying to note that these funds were
collected as an incident of the Canal Zone Fourth War Loan
program by means of carnivals designed to provide enter-
tainment for the public and also stimulate interest in the
purchase of var bonds and stamps.
Please express the appreciation of the Treasury to
Mr. 1. Gabriel Duque, owner of the Star and Herald, who
sponsered a campaign for funds in the cities of Panama and
Colon and other towns.
Very sincerely yours,
H. MORGENTHAU, JP.
Secretary of the Treasury
Maj. Gea. Glos 1. Rigerton
Governor of the Panama Canal
Balbon Neights
Canal Zone
Birth
Regraded Unclassified
THE PANAMA CANAL
CANAL ZONE
EXECUTIVE DEPARTMENT
meld
Balboa Heights, C. Z.,
March 28, 1944.
VIA MAIL
The norable
The Secretary of the Treasury,
Washington, D. C.
Mr. Secretary:
There is transmitted herewith check No. 3,912, dated March 20,
1944, in the amount of $67,257.18, by the Collector, The Panama Canal,
representing a donation to be applied against the cost of the construc-
tion of a bomber for the armed forces.
This gift is made in pursuance of the provisions of Section
1101 of the Second War Powers Act, 1942, approved March 27, 1942.
These funds were collected as an incident of the Canal Zone
War Loan program, during which War Bond Carnivals were held from
Fourth 7 to 12, 1944, on the Atlantic and Pacific sides of the Isthmis. and
February carnivals were designed to provide entertainment for the public and
The time to stimulate interest in the purchase of War Bonds out-
Stamps, rill (it contributions made for this specific purpose, were applied
at the same and a part of the general receipts, as well as the direct to a
"Rember Fund."
While bomber, it is hoped that the source of these funds applied. can be
this contribution is not sufficient to finance the con-
otion tified of on a the bomber towards the purchase of which they are
blic of The "Bomber and its oldest newspaper, the STAR AND HERALD, the cities owned
Fund" idea was taken up enthusiastically in the
325.60 anama and was Colon contributed to the fund and is included in the remittance
T. and other towns. As a result of that
Gabriel Panama, Duque, sponsored a campaign for funds in campaign,
osed.
Very respectfully,
GLEN E. EDGERTON
Governor
closure:
67,257
Check No, 3,912
C-1223
miel
Regraded Unclassified
177
TREASURY DEPARTMENT
An
INTER OFFICE COMMUNICATION
Date
TO
Secretary Morgenthau
May 2, 1944
FROM Fred Smith
(1) Providing we can get him travel priorities,
Orson Welles is leaving Hollywood immediately after his
radio show next Thursday night, May 11, and will be here
for four days, going back in time for the following radio
show.
(2) I am borrowing the man from WPB to take over the
movie operation we have planned in conjunction with the
War Department. He has had excellent experience in organiz-
ing this kind of an operation. He will stay with it through
the experiment, and will organize showings during the War
Loan by both local Bond Committees and industrial concerns.
He is starting today.
Bill Maloney of B.B.D. & O. could not be spared since
he has lost all of his assistants to the war. However,
he recommended two people at C.B.S. and I will call Paul
Kesten to see if one can be borrowed to help organize the
showmanship angle.
Regraded Unclassified
178
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE May 2, 1944
TO
Secretary Morgenthau
FROM
Fred Smith
Mr. Hettinger of OWI talked to Gamble about the
Stabilization advertising, which up to this time has ad-
vised people to buy War Bonds and to invest in life
insurance, etc.
Gamble opposed this, saying that nothing should be
mentioned in the advertisements but War Bonds.
Hettinger then talked to me, without telling me at
first that Gamble opposed it. My opinion was that since
we were trying to get people to invest money for inflation
purposes, that it was just as well to give them several
options instead of saying War Bonds or nothing.
They then said Gamble had taken this positive view,
and I told them it was more Gamble's job than mine, but that
the only possible difficulty I could see was the possibility
that the Government would encourage investment in life insur-
ance, and then have a company "go bust"; but I felt this was
& little far fetched.
I advised Hettinger to talk to Vinson about it since
Vinson is running the advertising campaign. If he agreed
with Gamble, then there would be no argument. If he didn't,
they could settle the argument between Gamble and Vinson,
which they are apparently trying to do.
Regraded Unclassified
179
May 2, 1944
My dear Fred:
I find that Ted Gamble, who is
in charge of selling War Bonds, is
attending a meeting on the West Coast.
He will be back at the end of the
week. If you do not mind, I would
like to delay answering your inquiry
in regard to life insurance advertising
until his return.
Sincerely yours,
(Signed) Henry
Honorable Fred M. Vinson,
Economic Director, Stabilization Board,
Washington, D.C.
Regraded Unclassified
180
May 2, 1944
My dear Mr. President:
I thought you would be interested in
seeing a copy of the very nice letter which
I received from Bob Doughton.
Yours sincerely,
(Signed) Henry
The President,
The White House.
by Dattain so art to and m In
be
Regraded Unclassified
A. =
ALLIN T. TREADWAY, MAIS
- KNUTHIN, WINEL
DANNEL A. REED. a. V.
BAY a. DOCCRUPY, MICH.
COMMITTEE ON WAYS AND MEANS
THEMAS 4. JOHN -
HL MC LEAR, N. A.
BERTRAND W. BEARHART, CALIF.
HOUSE OF REPRESENTATIVES
PRANK CARLBON, KANS.
EXPLARD M. SIMPSON, PA.
1
DIABLER s. DEWEY, ILL
WASHINGTON, D. C.
revener, CLERK
April 27, 1944
Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury
Treasury Department
Washington, D. C.
Dear Mr. Secretary:
May I extend to you and to your staff my appreciation
for their sincere and helpful aid in the preparation of H.R. 4646,
the Individual Income Tax Simplification Bill recently reported
by the Committee on Ways and Means. I think the results of our
deliberations on this bill show how much can be accomplished by
having our staff and the Treasury staff, including the staff of
the Bureau of Internal Revenue, work together in the formulation
of suggestions to be presented to our committee. Through their
joint efforts, the greatest good can be accomplished in assisting
our committee in formulating tax legislation. I am more than
gratified with the way in which your staff cooperated with our
staff in the preparation of this legislation.
Now that we have seen the results which can be accom-
plished through such cooperation, I hope we shall be able to have
it continued in connection with future revenue bills.
We have the utmost confidence that this joint effort and
cooperation of all members of the committee, and those who have
aided them in its preparation, has resulted in a bill that pro-
vides simplification that will lessen the difficulties of making
income tax returns and strengthen our income tax system.
Cordially yours
R. K. Doughton,
CHAIRMAN
Regraded Unclassified
182
VICTORY
TREASURY DEPARTMENT
BUY
PROCUREMENT DIVISION
WASHINGTON 25
FICE of THE DIRECTOR
May 2, 1944
MEMORANDUM TO THE SECRETARY:
Mr. H. Dewitt Smith, Executive Vice-President,
Metals Reserve Company (RFC) advised me today that
he intends to recommend to Mr. Clayton that we
handle the disposition of scrap gold, inasmuch BS
the limited quantities indicated can no doubt be
used by the Bureau of the Mint. A discussion has
been arranged for tomorrow afternoon with represen-
tatives of the Army Service Forces, Army Air Forces,
Bureau of the Mint, and this office to develop the
information as to what may be involved. I will
report to you further.
A meeting is being arranged with the Automotive
Council for War Production to discuss procedures
relative to the disposal of surplus automotive
equipment.
Director of Procurement
your Clifton E. Mack
Regraded Unclassified
SECRET83
treasury DEPARTMENT
BUY
WAR
SONDS
PROCUREMENT DIVISION
WASHINGTON 25
ICE OF THE DIRECTOR
LEMORANDUM TO THE SECRETARY:
May 2, 1944 101
With reference to your memorandum of May lst
concerning the listing of proposed requirements for
the U.S.S.R. under the Lend-Lease Act for the fiscal
year 1945, General York has been advised that the
Procurement Division is prepared to purchase end
service that part of the total proposed requirements
for the U.S.S.R. which consists of the types of
commodities usually purchased by the Procurement Divi-
sion for the Foreign Economic Administration.
The specific requirements for which shipping can
be foreseen and which comes within the eligibility
rules of the Lend-Lease Act, is scheduled BS $846,542,300
in the budget presentation which is planned for hearing
before the House Appropriations Committee during next
week.
The requirements proposed in the listing which
you sent to me, and returned herewith, is in excess of
the dollar amount shown in the budget estimates for
U.S.S.R. supplies, which fact will be taken into
consideration by the Foreign Loonomic Administration
before the proposed requirements are scheduled in the
formal Protocol.
you Clifton E. lack
Director of Procurement
Attachment
Regraded Unclassified
TO: SECRETARY OF EASURY 184
I HAVE 'PHONED BRIGADIER
GENERAL YORK.
CEM
5/3/44
From Mr. Mack
195
THE PRESIDENT'S SOVIET PROTOCOL COMMITTEE
SEGRET
WASHINGTON 25, D. C.
OFFICE OF THE EXECUTIVE
ROOM 149
1901 CONSTITUTION AVENUE NW.
My dear Mr. Secretary:
Under date of 14 February 1944, the President wrote
you as follows:
"Russia continues to be a major factor in achiev-
ing the defeat of Germany. We must therefore continue
to support the U.S.S.R. by providing the maximum amount
of supplies which can be delivered to her ports. This
is B. matter of paramount importance.
"The U.S.S.R. has been requested to state require-
ments for a Fourth Protocol, to cover the period from
July 1, 1944 to June 30, 1945. It is desired that,
within the limitations of available resources, every
effort be made to meet these requirements.
"Pending the formulation of the Fourth Protocol, it
is my desire that every effort be made to fulfill the
provisions of the Third Protocol, which terminates
June 30, 1944."
The requirements of the U.S.S.R. (copy of which is
attached), have now been submitted to the President's Soviet
Protocol Committee. These requirements have been apportioned to
the various interested agencies, including your Department. Due
to unforeseen circumstances, the submission of these requirements
is considerably behind schedule. It is therefore desirable that
the offerings to be made by your Department be submitted to the
Protocol Committee at the earliest practicable date.
In accordance with the desires of the President, 32 is
requested that your response to the Soviet requirements be as
generous as circumstances permit.
For the Chairman, President's Soviet Protocol Committee:
Sincerely yours
JOHN Y. YORK
JR.,
Brigadier General, U. S. Apay,
Acting Executive.
Attachment
The Honorable
The Secretary of the Treasury
Regraded Unclassified
186
SECRET
0
P
Y
PROGRAM OF REQUIREMENTS FOR
ARMAMENTS, EQUIPMENT AND MATERIALS FOR
SUPPLY TO THE U.S.S.R.
BY THE GOVERNMENT OF THE UNITED STATES
DURING THE PERIOD JULY 1, 1944 TO JUNE 30, 1945
(All weights are given in short tons)
GROUP I.
ARMAMENTS AND MILITARY EQUIPMENT
ITEM 1 - AIRPLANES
Amount requested
4,140
2400 Pursuit Planes
- "P-39" or "P-63"
600 Medium Bombers
- "B-25"
300 Heavy Bombers
- "B-24"
240 Heavy Bombers
- "B-17"
360 Transport Planes
- "C-47"
120 Transport Planes
- "C-46" or "C-57"
120 Flying Boats
Spare engines and propellers - 30% of those
installed on the planes,
Airplane spare parts - 20% of value of plane.
Engine spare parts - 15% of value of plane.
Propeller spare parts - 15% of value of pro-
peller.
ITEM 2 - TANKS
Amount requested
3,000
Tank spare parts to be supplied in accordance
with United States Army standards.
SECRET
Regraded Unclassified
187
SECRET
- 2 -
ITEM 3 - TRUCKS
Amount requested
144,000
Spare parts: 30% of value of truck per
U.S.S.R. specification.
ITEM 4 - SCOUT CARS /Jeeps/
Amount requested
6,000
Spare parts - 20% of value of "Jeep".
ITEM 5 - PRI E MOVERS FOR ARTILLE.RY
Amount requested
5,000
Including: Tractors - medium
....
4,000
Tractors - heavy
1,000
Spare parts: 20% of value of item,
ITEM 6 - DIESEL ENGINES GMC - 471 for artillery
prime movers
4,000
ITEM 7- MOTORCYCLES
Amount requested
12,000
Spare parts in accordance with United
States standards.
ITEM 8 - ROAD CONSTRUCTION MACHINES
2,000
300
ITEM 9 - SNO.I PLOUGHS
240
ITEM 10 - ANTI-AIRCRAFT GUNS 90 mm.
......
SECRET
Regraded Unclassified
188
SECRET
- 3 -
ITEM 11 - POWDER
80,000 tons
ITEM 12 - TOLUOL
40,000 tons
ITEM 13 - T.N.T.
65,000 tons
ITEM 14 - ALLUNITION for 90 mm. anti-
aircraft
2,000 shells per gun
for tanks
4 sets per tank
for planes
15 sets per plane
ITEM 15 - RADIO STATIONS, RADIO LOCATORS
AND OTHER RADIO EQUIPMENT ACCORDING
TO SPECIFICATIONS
18,642 units
ITEM 16 - TELETYPE APPARATUS
1,000 units
ITEM 17 - FIELD TELEPHONES
100,000 units
ITEM 18 - FIELD TELEPHONE /IRE
250,000 miles
ITEM 19 - SWITCH BOARDS, Army Field Type for
800 units
60-100 lines each
ITEM 20 - PRIVATE AUTOMATIC BRANCH EX-
100 units
CHANGE for 200 lines each
ITEM 21 - THREE CHANNEL TELEPHONE CARRIER
90 units
ITEM 22 - FIELD BATTERY CHARGING STATIONS 2,500
600 km.
ITEM 23 - SUBMARINE CABLE
1,200 km.
ITE: 24 - MARINE CABLE
SECRET
Regraded Unclassified
189
SECRET
- 4 -
NAVAL STORES
ITEM 1 - SUBMARINE CHASERS /110 feet/
38
ITEM 2 - TORPEDO BOATS
30
ITEM 3 - MINESWEEPERS:
Minesweepers of the displacement 850 tons
30
Trawling and navigation equipment in
accordance with specifications
100 sets
ITEM 4 - ESCORT VESSELS AND PATROL CRAFTS of the dis-
placement from 200 to 1,200 tons
20
ITEM 5 - ICEBREAKERS OF THE "NORTH WIND" TYPE with
2
power 12,000 HP
ITEM 6 - TANKERS /3000 - 6000 tons/
10
30
ITEM 7 - SEA-GOING TUGS
ITEM 8 - BOOM-TENDERS ITH THE CARRYING POTER 25-50 TONS
3
ITEM 9 - FLOATING HOISTING CRANES WITH THE CARRYING POWER
3
100 TONS
2
ITEM 10 - CABLE SHIPS
ITEM 11 - MARINE DIESEL ENGINES, DIESEL GENERATORS, PULPS,
COMPRESSORS, STEAM AUXILIARY MECHANISHS, TURBO-
MECHANISMS, ELECTRIC EQUIPIENT . - All in accordance
3,712 units
with specifications
ITEM 12 - ELECTRIC CONTROL APPARATUS AND ELECTRIC FITTINGS
500
in thousand dollars
ITEM 13 - COMPRESSING, DISTILATING, PUMPING ND OXYGEN
88 units
STATIONS FOR THE NAVY BASES
Including:
10 units
Compressing stations for 225-250 atmosphere
Distilating stations for 500 tons of the boiler
3 units
water per day
20 units
Water pump station 100 cubio meters per hour
55 units
Oxygen stations to 20 oubio meters
SECRET
Regraded Unclassified
190
SECRET
- 5 -
ITEM 14 - N.VIGATION-NAUTICAL EQUIPMENT ND APPARATUS
Including:
Lighthouse equipment
100 units
Nautical apparatus in thousand dollars
3,000
Beacon lanterns
500 units
ITEM 15 - DIVER SHIP SALVAGE EQUIPMENT in accordance with
specifications
992 units
GROUP II.
METALS, CHEMICALS AND OTHER MATERIALS
ITEM 1 - Aluminum ingots and duraluminum
70,000 tons
ITEM 2 - Cobalt
180 tons
ITEM 3 - Nickel / including in steel and nonferrous alloys/13,000 tons
including pure nickel cathods
11,000 tons
ITEM 4 - Magnesium
4,000 tons
ITEM 5 - Molybdenum concentrates
4,480 tons
ITEM 6 - Copper electrolytic /including in copper based
alloys rodded copper and cable/
150,000 tons
Including pure copper wire bars and ingots
60,000 tons
ITEM 7 - Zinc
10,000 tons
ITEM 8 - Copper goods and tubes
5,000 tons
ITEM 9 - Brass and bronze products
80,000 tons
ITEM 10 - Copper cable and wire
20,000 tons
600 tons
ITEM 11 - Nichrome wire
600 tons
ITEM 12 - Special alloys wire
SECRET
Regraded Unclassified
191
SECRET
- 6 -
ITEM 13 - Ferrovanadium
1,200 tons
ITEM 14 - Ferromolybdenum
1,200 tons
ITEM: 15 - Ferrotungsten
1,500 tons
ITEM 16 - Bimetal strip
24,000 tons
ITEM 17 - Polished drill rods
480 tons
Including high speed drill rods
230 tons
ITEM 18 - Tool steel
25;000 tons
Including high speed tool steel
6,720 tons
ITEM 19 - Stainless steel
4,000 tons
ITEM 20 - Cold drawn and cold rolled steel in rods,
bars, sheets and strip
112,000 tons
ITEM 21 - Hot rolled steel
200,000 tons
Including steel beams
25,000 tons
ITEM 22 - Tin plate
50,000 tons
ITEM 23 - Steel wire
35,000 tons
ITEM 24 - Steel rope
12,000 tons
ITEM 25 - Steel tubes
140,000 tons
Including alloy tubes
20,000 tons
ITEM 26 - Rails and accessories
250,000 tons
ITEM 27 - Car and locomotive steel tires
42,000 tons
ITEM 28 - Other metals and metal products
30,000 tons
ITEM 29 - Petroleum products
500,000 tons
/Plus an additional 300,000 tons to be de-
livered from Abadan/
4,000 tons
ITEM 30 - Ethylene Glycol
12,000 tons
ITEM 31 - Phenol
12,000 tons
ITEM 32 - Methanol
SECHET
Regraded Unclassified
192
SHOUST
IDJ
- 7 -
IT&! 33 - Urotropine
4,400 tons
ITEM 34 - Glycerine
4,400 tons
ITEM 35 - Caustic soda
30,000 tons
ITEM 36 - Ethyl Alcohol
180,000 tons
ITEM 37 - Acetone
6,000 tons
ITS: 38 - Butyl Alcohol
8,000 tons
Item 39 - Butyl Acetate
6,000 tons
ITEM 40 - Ethyl Acetate
5,000 tons
ITEM 41 - Casein
1,700 tons
If.21 42 - Potassium-Butyl-Xanthate
1,350 tons
ITMS: 43 - Camphor
800 tons
ITEM 44 - Various chemicals
18,000 tons
ITEM 45 - Tires, tubes and other rubber products
containing rubber in them
40,320 tons
ITEM 46 - Hap paper
3,000 tons
ITEM 47 - Parchment paper
3,000 tons
150 tons
ITEM 48 - Condenser paper
1,000 tons
IT&M 49 - Fibre
4,000 tons
ITEM 50 - Sisal rope
GROUP III.
LOCOMOTIVES AND RAILROAD FLAT CARS
1,500
ITEM 1 - LOCOMOTIVES
50
ITEM 2 - ELECTRIC LOCOHOTIVES
10,000
IT21 3 - RAILROAD FLAT CARS
2,000
IT21 4 - DUMPCARS
SECRET
Regraded Unclassified
193
SUCHET
- 8 -
GROUP IV.
INDUSTRIAL EQUIPMENT
ITEM 1 - LLACHINE TOOLS /in thousand dollars/
225,000
ITEM 2 - PRESSES, FORGING AND HOLLING MILLS
EQUIPMENT /in thousand dollars/
140,000
Rolling Mills and accessory equipment
/in thousand dollars/
80,000
Presses, Hammers, Forging Machines, Shears
and accessory equipment /in thousand dollars/.
60,000
ITEM 3 - POWER AND ELECTRICAL EQUIPMENT
/in thousand dollars/
228,000
ITEM 4 - EQUIPMENT FOR METALLURGICAL PLANTS
/in thousand dollars/
40,000
for blast furnaces
8 sets
for open hearth furnaces
20 sets
for Bessomer convertors
4 sets
for Coke ovens
10 sets
800
ITEM 5 - ELECTRIC FURNACES
-
ITEM 6 - INDUSTRIAL PLANTS AND UNITS
Complete plant for production nitric acid -
capacity 150 tons per day on the base of gasi-
1
fication of anthracite
Plant for synthosis of ammonia - capacity 60-80
1
tons por day
Plant for production of synthetic phenol -
1
capacity 7,000 tons per year
10
Installation for divisor of pyrolis gas
1
Shop for repairing automats and instruments
SECRET
Regraded Unclassified
SECRET
194
- 9 -
Plant for production of synthetic acetone
and butyl alcohol
2
Plant for production of ethyl alcohol -
capacity 50,000 tons por year
1
Plant for production of butadine by Houdry
method-capacity 15,000 tons per year
1
Plant for production of styrol - capacity
12,500 tons per year
1
Plant for production of synthetic rubber
/ncoprene/ capacity 10,000-15,000 tons per year
2
Plant for production of synthetic rubber
/Buna s/ capacity 30,000 tons per year
1
Installation for production of acetic acid
1
Installation for production of glucose
1
Installation for production of coke benzole
1
Hydrostabilization units for hydrogen plants
1
Installation for production Phthalic Anhydride.
1
Installations for production of building parts
119
and building materials
10
Refinery units
180
Oxygen units
ITEM 7- - VARIOUS INDUSTRIAL EQUIPMENT /in thousand
370,000
dollars/
Including:
700/
Power showels
45%
Portal /Gantry/ cranes
Units
450/
Overhead cranes
900/
Various cranes
Compressors, turbo and gns blowers, ox-
haustors and fans /in thousand dollars/
25,000
SECRET
Regraded Unclassified
195
SECRET
- 10 -
Various Pumps /in thousand dollars/
20,000
liining and Ore Drossing Equipment /mills,
crushors, drilling rigs, perforators /drills/
etc. /in thousand dollars/
105,000
Hoisting and transporting equipment, jacks
mining hoist, winches, conveyors, transporters,
eloctric lift trucks, diesol driven locomotives,
etc. /in thousand dollars/
60,000
Welding Equipment /in thousand dollars/
12,000
Valves and fittings /in thousand dollars/
15,000
Pnoumatic Tools /in thousand dollars/
5,000
Equipment for Automatic Block Signal System
for Railroads /in thousand dollars/
10,000
Other equipment /in thousand dollars/
50,000
ITEM 8 - CONTROL AND MEASURING INSTRUMENTS AND TESTING
MACHINES /in thousand dollars/
10,000
ITEM 9 - HARD \LLOYS, CUTTING AND EASURING INSTRUDENTS
/in thousand dollars/
26,000
Hard alloys /in thousand dollars/
4,000
Cutting instruments /in thousand dollars/
16,500
licasuring tools /in thousand dollars/
5,500
10,000 tons
ITEM 10 - \BRASIVES
4,000 "
Abrasive grains
6,000 "
Abrasive product
ITEM 11 - GRAPHITE ELECTRODS AND OTHER GRAPHITE
9,000 tons
PRODUCTS
ITEM 12 - BEARINGS, ROLLERS ND BALLS /in thousand
12,000
dollars/
ITEM 13 - VARIOUS INDUSTRIAL MATERIALS /in thousand
5,000
dollars/
4,000 km.
ITEM 14 - ELECTRIC POWER CABLE
ITEM 15 - VARIOU3 EMERGENCY EQUIPMENT AND MATERIALS
/in thousand dollars/
57,000
SECRET
Regraded Unclassified
196
SECRET
- 11 -
GROUP V.
QUARTERMASTER GOODS
ITEM 1 - SOLE LEATHER
18,000 tons
ITEM 2 - RETANNED UPPER LEATHER
4,000 tons
ITE: 3 - ANY SERVICE SHOES /in thousand pair/
5,000
ITEM 4 - many WOOL CLOTH /thousand yards/
18,000
ITEM 5 - COTTON UNIFORM CLOTH /in thousand yards/
25,000
ITEM 6 - DUCK-TARPAULIN /in thousand yards/
3,000
ITE: 7 - WEBBING /in thousand yards/
12,000
GROUP VI.
FOOD PRODUCTS
ITEM 1 - WHEAT, FLOUR, CEREALS, RICE AND BEANS
400,000 tons
ITEM 2 - SUGAR
350,000 tons
ITEM 3 - CANNED LEAT
420,000 tons
ITEM 4 - LEAT PRODUCTS
20,000 tons
320,000 tons
ITEM 5 - ANDLL FATS
225,000 tons
ITE: 6 - VEGETABLE OIL
160,000 tons
ITEM 7 - CONCENTRATES
GROUP VII.
MEDICAL SUPPLIES
liodical supplies in thousand dollars
12,000
SECRET
Regraded Unclassified
197
SECRET
- 12 -
Industrial equipment and armament delivery of
which extends or will extend boyond the torm of the
Third Protocol, as well as industrial equipment al-
ready ordered and that which shall be ordered against
$300,000,000 provided by the Third Protocol, shall be
delivered in excess of the Fourth Protocol Program.
SPECIFIC.,TION FOR RADIO STATIONS, RADIO
LOCATORS, DIRECTION FINDERS AND OTHER
RADIO EQUIP.INT.
ITEH 1 - Radio Stations output more than 1 kw
142
ITZI 2 - Radio Stations output less than 1 kw
10,800
ITEM 3 - Harino Radio Stations output 100-600 watts
480
ITEM 4 - Radio Direction Finders
200
ITE: 5 - Radio Receivers
4,000
ITE: 6 - Radio Locators /Radars/
970
Including:
Mircraft typo
500
220
Ground type
250
Marino type
2,000
ITEM 7 - Radio iltimotors
50
ITEM 8 - Radio Boacons
ITEM 9 - Rndio Tubes /in thousands/
5,000
ITELi 10- Radio Moasuring Equipment and Radio Parts
3,000
/in thousand dollars/
ITEM 11- Combination Power Supply units for field radio
15,000
stations
SECRET
Regraded Unclassified
198
SSCRET
- 13 -
SPECIFICATIONS FOR LARTHE DIESEL ENGINES,
DIESEL GENERATORS, PUMPS, COMPRESSORS, STENH AUXILIARY
MECHANISMS, AND ELECTRIC EQUIPLENT.
ITEM 1 - Marine diesel engines 1600 HP
12
ITEM 2 - Marine diesel engines 1200 HP
100
ITEM 3 - Marine diesel engines 101 - 500 HP
500
ITEM 4 - Marine diesel engines 31 - 100 HP
350
ITEM 5 - Marine diesel engines 9 - 30 HP
200
ITEM 6 - Marine gasoline engines "Packard" 1200 HP
200
ITEM 7 - Marine gasoline engines "Hall Scott"
50
ITEM 8 - Marine gasoline engines 101 - 300 HP
400
ITE: 9 - Marine gasoline engines 13 - 100 HP
200
ITEM 10- Diesel-Generators - various power
100
ITEM 11 - Various pumps
500
300
ITEM 12 - Various compressors
ITEM 13 - Steam auxiliary mechanisms
200
ITEM 14- Electric Equipment /marine/
600
SPECIFICATIONS FOR DIVER AND SHIP RISING EQUIPMENT
100 sets
ITEM 1 - Salvage stations
ITEM 2 - Rubber pontoons - capacity from 4 to 100 tons
120
120
ITEM 3 - Compressors with various capacities
240
ITEM 4 - Water pumps
28 sets
ITEM 5 - Jetting apparatus
SECRET
Regraded Unclassified
199
SECRET
- 14 -
ITEM 6 - Underwater Electric Water pumps
40
ITEM 7 - Electric welding and cutting ápparatus for
the underwater welding and cutting
48 sets
ITEM 8 - Station for underwater lighting
96 sets
ITEM 9 - Pneumatic tools for underwater works
160 sets
ITEM 10- Underwater metal detectors
40 sets
SECRET
SECRET
200
PROGRAM OF REQUIREMENTS FOR
ARMAI ENTS, EQUIPMENT AND MATERIALS
FOR SUPPLY TO THE U.S.S.R.
BY THE GOVERNMENT OF CANADA
DURING THE PERIOD JULY 1, 1944 to JUNE 30, 1945
/all weights given in short tons/
GROUPI
ARMAMENT AND MILITARY EQUIPMENT
ITEM 1. Airplanes bombers "Mosquito"
120
Spare Engines and propellers 30% of number
of planes
Airplane spare parts 20% of value of Plane
Engine spare parts - 15% of value of Plane
Propeller spare parts 15% of value of plane
ITEM 2. Powder
20.400 tons
ITEM 3. Radio Stations, Radio locators and other
radio equipment in accordance with the
Specification
2.300
Including:
Radio stations # 19
2.200
Radio locators
100
NAVAL STORES
10
ITEM 1. Wooden minesweepers
ITEM 2. Oxygen stations up to 20 cubic meters
10 units
SECRET
Regraded Unclassified
SECRET
201
- 2 -
GROUP2
RAW MATERIALS
ITEM 1. Aluminum in ingots
36.000 tons
ITEM 2. Pure nickel cathodes
2.400 tons
ITEM 3. Cadmium
360 tons
ITEM 4. Lead
50,000 tons
ITEM 5. Rails and accessories
70.000 tons
GROUP3
Rail Road Flat Cars
2,000
GROUP4
INDUSTRIAL EQUIPMENT
I. liachine Tools /in thousand dollars/
7.000
2. Presses, Forging and Rolling Mill equipment
/in thousand dollars/
4.000
3. Power - Electric equipment /in thousand dollars/21.000
4. Various industrial Equipment /in thousand
dollars/
12.000
GROUP5
300.000 tons
Wheat flour
SECRET
Regraded Unclassified
SECRET 202
- 3 -
1. Industrial Equipment and Armament delivery of which
extends or will extend beyond the terms of the third
Protocol must be delivered in excess of the Fourth
Protocol program.
2. Delivery of wheat and flour will be revised with the
view of increasing the quantity depending upon transport
facilities.
SECRET
Regraded Unclassified
203
SECRET
PROGRAM OF REQUIRED ENTS FOR
ARMAMENTS, EQUIPMENT AND MATERIALS FOR
SUPPLY TO THE U.S.S.R.
BY THE GOVERNMENT OF THE UNITED KINGDOM
DURING THE PERIOD JULY 1, 1944 to JUNE 30, 1945
/All weights given in long tons/
GROUP 1.
ARMAMENTS AND MILITARY EQUIPMENT
ITEM 1.
AIRPLANES
2.400
INCLUDING: "Spitfire"
1.200
"Mosquito"
1,200
Spare engines and propellers for the planes
30% of number of planes.
Airplane spare parts 20% of value of plane
Engine spare parts 15% of value of plane
Propeller spare parts 15% of value of the propeller
ITEM 2.
TANKS - Subject to further negotiations.
5.400 tons
ITEM 3.
POWDER
ITEM 4.
RADIO STATIONS, RADIO LOCATORS AND OTHER
EQUIPMENT ACCORDING TO SPECIFICATION
1.900
NAVAL STORES
ITEM 1.
SUBMARINE CHASERS /large type/
20
20
ITEM 2.
MINESWEEPERS /wooden/
SECRET
Regraded Unclassified
SECRET
204
- 2 -
ITEM 3.
TRAWLING AND NAVIGATION EQUIPMENT ACCORDING
TO SPECIFICATION
532
ITEM 4.
OXYGEN UNITS UP TO 20 CUBIC METERS
25 sets
GROUPII.
TXS
RAW MATERIALS
ITE! 1.
LEAD
6.000 tons
ITEM 2.
TIN
2,000 tons
ITEM 3.
STEEL POLISHED DRILL RODS
60 tons
ITEM 4.
PETROLEUM PRODUCTS
300.000
/short tons/
Subject to submission in Abadan according to the
agreement with the U.S. Government whereby the
latter will deliver this quantity to the United
Kingdom from the aviation gasoline provided for
this purpose by the U.S. Government.
ITEM 5.
CREOSOL
190 tons
ITEM 6.
RUBBER /from Ceylon/
30.000 tons
ITEM 7.
INDUSTRIAL DIAMONDS /in thousand dollars 2,000
ITEM 8.
GR.PHITE /Ceylon/
1.200 tons
2,400 tons
ITEM 9.
SHELLAC
JUTE AND ITS PRODUCTS
7.500 tons
ITEM 10.
6,000 tons
ITEM 11.
SISAL ND ITS PRODUCTS
W 0 L /Scoured/
6,000 tons
ITEM 12.
SECRET
Regraded Unclassified
205
SECRET
- 3 -
GROUP III.
INDUSTRIAL EQUIPMENT
ITEM 1. MACHINE TOOLS /in thousand dollars/
18.000
ITEM 2. PRESSES, FORGING AND ROLLING EQUIPMENT
/in thousand dollars/
500
ITEM 3. POWER-ELECTRIC EQUIPMENT /in thousand dollars/..5.000
ITEM 4. VARIOUS INDUSTRIAL EQUIPMENT
/in thousand dollars/
5.000
ITEM 5. CONTROL AND ME.SURING INSTRUMENTS AND
TESTING MACHINES /in thousand dollars
1.500
Industrial Equipment and armament delivery of which
extends or will extend beyond the terms of the Third Protocol
must be delivered in excess of the Fourth Protocol Program.
2. Medical Supplies will be furnished in the quantities
agreed upon with the Red Cross,
3, Specification for Radio Station, Radio Locators and
other radio equipment:
1. Radio Locators
1,900
1.000
INCLUDING: Aviation type
200
Ground type
200
Marine type
With the projectors 150 centimeters
500
2. Radio Tubes /valves/
1,000
3. Measuring apparatus and instruments and
radio parts /in thousand dollars/ 1,000
SECRET
Regraded Unclassified
SECRET
206
- 4 -
SPECIFICATION FOR TRAWLING
AND NAVIGATION EQUIPMENT
ITE{ I. ANTI-SUBMARINE SOUND DETECTORS
430
ITEM 2. HYDRAULIC LOGS
75
ITEM 3. ELECTRIC-MAGNETIC SWEEPING EQUIPMENT
14
ITEM 4. INSTRUMENTS AND APPARATUS FOR SWEEPING
MAGNETIC AND ACUSTIC MINES
10
ITEM 5. EQUIPMENT FOR SWEEPING MINES ALONGSIDE
PIERS AND DOCKS /Portable sweeping units/
3
SECRET
Regraded Unclassified
207
May 1, 1944
Mr. Mack
Secretary Morgenthau
In accordance with our telephone conversation, I
am sending you herewith a communication from General
John Y. York, Jr., and I would appreciate your giving
this matter your prompt attention. This is the only
copy I have, 80 would you please let me have another
copy for my files.
Please advise me what portions of these requirements
will be taken care of by the Treasury.
Letter dated April 29th from General York on requirements
of Soviet.
Regraded Unclassified
UNITED KINGDOM TREASURY DELEGATION
BOX 680
BENJAMIN FRANKLIN STATION
WASHINGTON, D. c.
TELEPHONE EXECUTIVE ....
2nd May 1944.
Dear Dr. White:
In continuation of my letter of 4th April,
the following are the figures for our gold and dollar
holdings in million dollars as at March 31st, 1944.
Gold
1,182
Less gold liabilities
306
Net gold
876
Official dollar balances 739
Less dollar liabilities
153
Net dollars
586
Net gold and dollars
1,462
Yours sincerely,
Fagarma P.E. Harmer.
Dr. H.D. White,
Assistant to the Secretary,
United States Treasury,
Washington, D.C.
Regraded Unclassified
209
1 Grosvenor Square,
London, W.1.
May 2, 1944
Dear Henry:
Thank you for your letter of April 24.
It is very satisfying that the fundamental
agreement has now been worked out on the
financial plan. I was very glad to have
been able to do what I could over here.
It was good to talk to you on the
telephone the other day.
With kindest regards,
Sincerely,
Och 1 Winant
The Honorable Henry Morgenthau, Jr.,
The Secretary of the Treasury,
Washington, D.C.
Regraded Unclassified
Treasury Department
Division of Monetary Research
210
Date May 2, 1944
19
To:
Miss Chauncey
From: Mr. White
The Secretary might be interested in the
views of one Dutch citizen on the extent to
which the present Dutch Government-in-Exile
represents the people of Holland.
H.D.W.
LCI
no New - ad Nation, Policy 16, 7944
1b No Lesse - Ana forway - THE
of this émigré administration deserted bis Que
fallow - wordlin pervice ningation la
and the Allied calise by escaping to Holland at the
British forces. Now on November 25. 1M3-
first opportunity. He was replaced by a Fanatical
that staunch friend of Great Dritain, Desch-burn
Calviniatic Professor of Law, Gerbrandy, as head
General Smits, made a speech before the Emplor
of e Hghtweight team of careerist politicians and
Purliamentary Association, in which be ESTE has
Civil Servants. Gerbrandy's Cabinet was recog-
audience the following explosive matter to
nised and is still regarded by the British Govern-
consider and ponder
ment as representative of the Netherlands, and all
Should we not cosse as Gress Britain to be an
the Dutch people stand for to-day. The truth is
island Should WE not work Intimately together
that it no more represents Holland than the
with those small democracies in Western Hurope
Chamberlain administration represented the guts
which by themselves may be loat, as they are lost
and endurance of the British people.
to-day, and as they may be lost again
They
The months passed conditions in Holland
have learned their lesson that standing by them-
became severe. Seyss Inquart, the German
selves
on
the
Continent
they
are
lost.
Surely
Governor, having tried-without success-the
they must feel that their place a with
Grest
Britain
velvet glove, soon revealed the iron hand.
We have evolved a system in the Commonwealth
Holland's reaction was vehement an underground
which opens the door for developments of this
movement was born, and from the tales brought
kind. To-day in the Commonwealth we have a
by the many brave men and women who had to
group of sovereign states working together, living
flee to England, it became abundantly clear that
together in peace and in war under "system that
out of the tears and bloodshed a new Holland was
has srood the greatest strain to which any nation
born. It was a renaissance comparable to
could be subjected. They are all sovereign states,
Britain's, though the circumstances and motives
they retain all the attributes, functions and symbols
of sovereignty. Other neighbouring nations,
were different. For once, Holland was guided not
therefore, living the same way of life and with the
by the old neutrality-addicted politicians, but by
name outlook, can with perfect safety say That is
an active group of people of all classes and creeds,
our group; why are we not there 7 With full
with two aims in life-the destruction of the
retention and maintenance of our sovereign status,
oppressors and the rebuilding of a new Nether-
We choose that grand company for our future in this
lands in which the émigré Government certainly
dangerous world." It is naturally a question for the
has no place.
States of Western Europe to settle for themselves.
It is for them to say whether
they
should
not
Ever since it was formed, Gerbrandy's Govern-
help themselves by helping to create out of closer
ment has planned a military dictatorship for
union with Great Britain a great European State,
Holland upon its return. A clique of Dutch
great not only in its world-wide ramifications, great
professional officers, reactionary to a degree,
not only as an empire and a Commonwealth
admirers of Nazi philosophy (see Leonard
stretching all over the continents, but great as a
Moseley's Parachules Over Holland) persuaded
power on this Continent, en equal partner with the
the Queen to act as saleswoman for their proposal
other Colossi in the leadership of the nations.
to establish a state of siege as a first stage.
Was this unique invitation extended with the
This, said the Queen on the radio, would provide
approval of the British Government ? Maybe it
for a the removal of all undesirable elements
was. It came more easily from Smuts than from
-1 term which might include anybody, especially
a British statesman. But if we regard Smuts'
as the state of siege is to be administered by
suggestion as harmonising with the views of the
the military authority," which in Holland is a
Empire, we should probably not be far wrong.
very different thing from the British conception.
And though the invitation extended to all small
The greatest fear of these Dutch officers is that
democracies in the West of Europe, Holland
the British authorities, with their absurd
can be termed the most natural aspitant for
liberalism," may interfere with their proposed
membership of the British Commonwealth of
purge. Its justification? The argument is that
Nations, since its interests are closely interwoven
the Dutch underground movement is infiltrated
with those of the Empire. Geographically,
with communium." Obviously, as in all under-
Britain's Far Eastern possessions link up with the
ground movements, the Communists play a
Netherlands East Indies. Holland's small West
leading part in Dutch resistance. They have the
Indian possessions are intermingled with Beitish
ANGLO-DUTCH UNION
necessary experience of underground organisation
islands. Commércially, to all intents and pur-
and cell-forming. But after the ejection of
poses, our large commercial undertakings (Royal-
[The author of this challenging article is a
German troops from Holland, the Communists
Dutch-Shell, Unilever and rubber interests) are
Dutch engineer who settled in England in 1937
would cease to be of great importance, as the
jointly owned. Historically, the destinies of bogh
and is now engaged in the production of
munitions for the Allied cause.)
job would then become one of reconstruction
nations run on parallel lines of colonial aspirations.
rather than sabotage their influence would be
Both are seafaring nations. We Dutch would not
THE Government of the Netherlands, which in
diminished to their (quite small) numerical
come empty-handed and could contribute our
May, 1940, found shelter and recognition in
proportions, Communist infilmation gives no
experience, from which the Empire would derive
Great Britain, was an ineffective Government,
excuse for a state of siege." Its imposition
great benefits, in the fields of colonial administra-
(I have the testimony of many non-Communist
tion and international commerce. Holland, in
which had endeavoured, and failed, to preserve
its balance on the lucrative tightrope of neutrality.
underground fighters arrived from Holland)
turn, would benefit greatly, apart from military
It arrived in England, hall-marked by the authority
would result in a rising by all who to-day are
security, by association with Britain in the art of
of Queen Wilhelmina but on its arrival its
actively aiding the Cause.
government, practical liberalism, finance and law,
moral collapse was complete. Numerous high-
Now Britain, in that event, could do one of
After Smuts had spoken, the Dutch Govern-
ranking officers came straight from Holland (under
three things. (1) British troops might be used to
ment spokesman, Foreign Minister Van Kleffens,
circumstances which after the war will have to be
quell the rising by force in the interests of Durch
went in front of the microphone and, in a speech
reaction. This would be a bitter blow to Dutch
to Holland, pooh-poohed the whole idea, planting
closely examined), while small bands of gallant
patriots who have looked for four anxious years
the seeds of doubt as to Britain's military strength
men fought their way through Belgium and France
towards Britain for their liberation. (2) Alter-
after the war-a point on which he can rest
and were lucky to gain the coast and transporta-
tion to England. Moreover, there was the usual
natively, it might be decided to let the Dutch
assured. There are difficulties to overcome one
fight it out amongst themselves. This surely
is the position of the Royal House. But they
stream of civilian refugees. All were completely
stunned and overwhelmed by the violent events
could not be in Britain's interest. After years
amount to nothing that Great Britain, with its
of Nazi tyranny, civil war would reduce Holland to
flair for compromise in consultation with the
taking place around them. The only person who
held her head erect with royal dignity, with faith
anarchy and demoralisation. (3) British military
other Empire members, cannot settle, Shortly
there will be a meeting of the Grand Council of
in the future and confidence in her new-found
occupational forces might take over the administra-
tion of Holland until proper elections could be
the British Empire, attended by all the Dominion
horts and protectors, was the Queen herself,
Premiers. What a golden opportunity to enlarge
Princess Juliana, with her children, was shipped
held.
off to Canada, to safeguard the dynasty her hus-
The last is the only course which merire adoption.
upon Grant Smith conception of the British
British troops are generally popular in occupied
- of Nations - . loving again.
band Prince Bernhard proceeded to indulge in his
of powth. - be a
mania for speed cars, while the British people
countries, and would be much liked la Hollend.
But 3 British military occupation could be as mon
- do pmple - decide the - -
prepared to resist invasion.
The ramshackle Durch Government sex itself
than a temporary solution. Agart streetber Oreas
done who - lightline w-day e Droub's - -
up in London, called up its subjects for service,
Dutch feelings la the mare, the Brinch Ave
and el - the - and number the - - Mart, -
to lerry tapes, voted in - a substantial
repair to be deschilant der with
a
de
LAW
Delh
1
-
box, of and to enjoy the amenkies
2 1 and w a - I 2
onl
$
be
-
#
$
- - 1
-
Bride hospitally The liest Price Minimer
deln, be - Imports plan for fulled
211
Regraded Unclassified
212
Delivered to White House Map Room by
Scaret Service Agent at 4:30 p.m. - May 2, 1944
213
May 2, 1944
TELEGRAM FOR THE PRESIDENT FROM THE
SECRETARY DF THE TREASURY
I have received a letter from Jesse Jones recommending
that a new request of the Dutch Government for 8. loan of
unspecified amount, secured by investments in this country,
should be authorized by R.F.C. The proceeds of the loan are
to be used for purchases here of reconstruction materials ns
soon as circumstances permit.
it in my view that this loan would be politically umwise
for the rest of the year for the following reasons:
1. It constitutes a post-war commitment and prejudges
an important issue which has not yet been decided on policy
grounds either by yourself or by Congress.
2. To grant this loan at this time would be an open
invitation to all the other governments-in-cxile and other
Allies to put in their applications for large loans direct
from the ". S. Government.
3. Holland is one of the relatively few foreign govern-
ments that at the appropriate time should have no difficulty
borrowing from the private investment market at reasonable
rates of interest. I believe we ought to be very hesitant
to give the impression that we are likely to compete with
private investment markets for loans to good borrowers.
4. The Dutch Minister of Finance in a memorandum ac-
companying the Jones letter states that a refusal by the
V. S. to grant this loan will force Holland to enter into
negotiations with other countries and to rely upon British
Industry exclusively. The Minister further states that un-
less the lean is granted, his Government may find it neces-
sery to reestablish relations Immediately upon liberation
with German Industry.
Regraded Unclassified
214
- 2 -
I am sure you will not like the implied threat by the
Dutch Minister any more than I do.
If you agree, I will advise Jesse Jones that in my
opinion the granting of the loan at this time would be pre-
mature and would constitute a policy commitment on loans
for post-war purposes to governments-in-exile that we are
not currently prepared to undertake.
DW/jm 5/2/44
Regraded Unclassified
215
TREASURY DEPARTMENT
An
INTER OFFICE COMMUNICATION
DATE ay 2, 1944
TO
Secretary Morgenthau
FROM Mr. white HOW
Subject: Allied Bombing and the Protection of Allied
Property under Jerman Control
A week ago, the inister of Luxembourg and r. Dupong
mentioned the fact that the iron and steel works in Luxembourg
nac not been combea as yet and that they had high hopes for
the continued safety of these plants during the rest of the
war. These plants are important producing centers for Germany
enc apparently well within bombing range from British bases.
Lis conversation, couplea with suspicions which have been
voiceu about the extent to which chemical plants in north Italy
have been income from bombing, and recent cables in connection
with the renabilitation of heavy industrial equipment in orway,
raise some questions which should be called to your attention.
-he Italian Chemical Plants are owned by the Firelli
interests anc are closely related to the Dritish chemical certel.
For some time the interested 1. 3. Government Departments have
been considering placing the Pirelli interests on the roclaimed
List and the fact that such action has not yet been taken may be
tied in with the absence of bombing raids on these plants to
date.
It may be Worth inquiring why these objectives ave not been
bombed.
You will recall the startling disclosures made some years
ago of collusion with the enemy in the safeguarding of industrial
properties from shelling and bombing during the last war. These
disclosures resulted in major political repercussions and serious
loss of faith in the leadership of the Allies. For instance,
when the briey Basin fell under German control, it was discovered
that the iron and steel works owned by the Comite ues Forges and
the Union des Industries Metallurgiques et Minieres were delivered
to the Germans intact. Moreover, while this industrial area was
occupied by the Germans the region was never effectively bombed,
although sham attacks took place. Throughout t e war the Germans
extracted valuable strategic ores.
Regraded Unclassified
216
MAY 2 1944
My dear Mr. Secretary:
It has been brought to By attention that M. Massigli,
Commissioner of Foreign Affairs of the French Committee of
National Liberation, has submitted the name of M. Couve de
Murville as the Committee's representative on the Allied
Advisory Council for Italy.
During the period in which M. Couve de Murville was
Commissioner of Finance in French Africa, his cooperation in
financial and other matters of important interest to the United
States Government and to the United States Treasury Department
left much to be desired.
During my visit last fall to French North Africa, United
States Treasury representatives there demonstrated to me the
uncooperative attitude and obstructionist tactics of M. Couve
de Murville. Discussions were held with Mr. Robert Murphy
and M. Couve de Murville and one of his assistants, at which
time representatives of the Treasury, with ample justification
from the record, made clear their dissatisfaction. Shortly
thereafter, M. Couve de Murville was replaced as Commissioner
of Finance by M. Mendes-France.
The Treasury Department would regard it as unfortunate
if M. Couve de Murville were again placed in a position where
his attitude and sympathies would conflict with those of our
Government and obstruct the close cooperation which we feel
is essential to effective operations in the Mediterranemn
theater.
Very truly yours,
(Signed) I. Morgenthan, Jr.
Secretary of the Treasury.
The Honorable,
The Secretary of State.
LCA:3HT:JRB:EN.Dtrb 4/27/44
Regraded Unclassified
217
TREASURY DEPARTMENT
photostathsm what
5/2 talk to
INTER OFFICE COMMUNICATION
bean
DATE MAY 2 1944
TO : Secretary Morgenthau
FROM : J. J. O'Connell, Jr.
FOR YOUR INFORMATION
You will recall that we received E. cablegram on March 23,
1944, from the National Committee of Liberation of Yugoslavia
requesting that no withdrawals of funds of the National Bank of
the Kingdom of Yugoslavia be permitted miless approved by the
Rational Committee of Liberation of Yugoslavia.
At the time there were pending with Foreign Funds Control
requests of the Government in Exile to transfer the balance of
funds still neld in accounts of the Banque Nationale du Royaume
de Yougoslavie ($1,300,000) to an account in the name of the Royal
lugoslav Government. After discussing the matter with you, a
letter was sent to Secretary mull in which we stated, "In view of
the objections to further transfers which have now been interposed
by Marshall Tito, the question is squarely raised L.S to whether it
is appropriate for the Treasury to permit the transfer of the bal-
sace of the central bank assets to an account in the name of the
Royal Yu, oslav Government. Under these circumstances, and apart
from overriding political considerations, the Treasury would not
authorize this transfer.
After asking that the transfer be permitted, Secretary Mull
in his reply makes this very revealing remark:
"It may be useful to observe that this Government, like all
the United Nations, continues to recognize the Royal Yugoslav
Government. The only relationship which exists between the Gov-
erament of the United States and the National Committee of Lib-
orution of Yugoslavia is or a strictly military nature, relating
to the jolicj to Turnish aid to all the resistant fores in If YV_O-
alovia encreed in driving the Termans ITOP their country
stocs
Regraded Unclassified
218
AMERICAN EMBASST
near the
GOVERNMENT OF GREECE
Cairo, Egypt
May 2, 1944.
No. 107
Subject:
Situation of Jews in Greece and
suggestions for assistance, principally
financial, to be given them.
The Honorable
The Secretary of State,
Washington,
Sir:
With reference to By despatch no. 82 of
March 27, 1944, transmitting a copy of a communica-
tion dated February 14, 1944, together with a copy
of its enclosure, from Mr. A. Cohen of the Royal
Hellenic Ministry of Foreign Affairs to the Jewish
communities of the United States regarding the
situation of Jews in Greece, I have the honor to
transmit herewith a copy of & memorandum dated April
27, 1944, which Mr. Cohen has furnished this Embassy
giving further details concerning this matter, includ-
ing estimates as to the number and whereabouts of Jews
in Greece, and suggesting that financial assistance be
sent than and that efforts to effect their escape to
the Middle Bast be intensified.
Mr. Gohen believes that, since the deportation
of approximately 55,000 Jews from Salonika to Poland,
there remain between 20 and 25,000 living in Greece,
of which a large proportion are in Athens with lesser
numbers in various specific provincial towns and on
Crete and Corfu. Some have succeded in jossing the
guarrillas and perhaps 400 have escaped from the country
in the last ten months, but the majority are still in
hiding with Christian families. Be suggests that their
let, as regards both their continued mintenance in
secret in Greese and their eventual escape would be
greatly ameliorated if financial assistance could be
sent thes.
s certain
Regraded Unclassified
219
- 2 -
A certain number of these unfortunates, Mr. Cohen
adds, are of non-Greek nationality, particularly
Spanish, and until recently have been afforded protect-
ton by their Governments. He is of the opinion that
such protection has diminished in recent months and
he believes it would be helpful if steps could be
taken to stimulate further activity in this regard
especially by Spain and Turkey.
The Embassy has informed Mr. Cohen that
his information and suggestions will be brought
to the attention of the War Refugee Board, through
the Department. At the same time & copy of this
despatch, and its enclosure, is being transmitted
to the Embassy at Ankara for the information of the
representative of the Board and of the representatives
of other governmental agencies likely to be concerned
with the matter there.
Respectfully yours,
Lincoln MacVeagh
Enclosure:
Memorandum by Mr. Cohen concerning
situation of Jews in Greece.
oct Ankara
File no. 848
Sent in hectograph to Dept.
HAH/WB/hcm
Regraded Unclassified
220
Enclosure no. 1 to Desputch
no. 107, dated May 2, 1944,
from American Embassy, Cairo,
Subject: Situation of Jews
in Greece and suggestions for
assistance, principally finan-
cial, to be given them.
Memorandum by Mr. Cohen
concerning Situation of Jews in Greece
April 27, 1944.
1. The Jewish population affected by the deportation to Poland
carried out by the German authorities in Greece exactly one year ago,
amounts to 60,000 which is roughly 3/4 of the entire Jowish pre-war
population of Greece. They were chiefly the Jews from Salonica (55,000)
and those living in the smaller communities of Macedonia and Trace, 1.0.
Sangada, Verria, Niacussa, Florina, Serres, Drama, Cavalla, Zanthie, Comotini
(Giornoultzina), Alexandropolis (Dedeagatch), Demotika, Creatreas, Soufli.
2. The Jews of the following nationalities: Italian, Spanish, Swiss,
Turkish, Iranian, British and American have been exempted of the deporta-
tion in Poland which measure maily applied to Greek Jews. The Jews of
alien nationality did not exceed 1,000. Of the Greek Jows those who were
able to escapt to the hills and who joined the guerilleros as well 88 those
who reached other parts of the country (mainly Athens) do not exceed 4,000.
There are serious reasons to fear that most of those who were shifted to
Poland in sealed railway trucks (horse carriages) were exterminated when
they ultimately reached their destination.
3. Following the Italian collapse, early in October 1943 the German
authorities endeavoured to put into force, in Athens and the rest of Greece -
which was so far under Italian administration - the same anti-Jewish measures
as in Salonica. But thanks to the acquired experience, the valuable help
and assistance of the Greek Orthodox Church, of all classes of the Christian
population and of the different organizations of partisans, and also owing
to their restricted number the immonse majority of the Athenian Jews
numbering then about 8,000 found refuge in Christian houses where they are
being hidden under false Christian identities. Only a small number of them
were able to escape, up to now, in the Middle East. With regard to the Jews
from the small country towns they joined the partisans and they are sharing
since last October, their fate including the women and children.
Regraded Unclassified
221
- 2 -
4. The order issued by the German Military Command in October 1943
in Athens stated that all Jews who would be caught after the expiration
of an interval of 5 days given for their registration would be shot and
that Christians who would by any means help them would be sent into con-
centration camps. A further more recent order extends the death penalty
to Christians who hide Jews. A concentration camp has been established
in the surroundings of Athens where numerous Jews who were recently arrested
ad well as some who have been compelled to surrender themselves spontaneously
within the last 6 months are being sent. It is considered unlikely that any
of them will survive the ill-treatment applied.
5. The greatest risk sustained by the Athenian Jews remain the
intensification of the hunting which may at any moment be ordered by the
Gestapo which would easily lead to their capture. Besides, whilst the
liberation of Greece is not as rapid as one would have expected it last
October, there are serious reasons to believe that the moral standing of
all those hiding Jews, falls at the same time as their resources are
being exhausted.
6. If consideration is given to help efficiently Jews from Athens
it is not sufficient to extend their means of escaping by sea, whose
results were very meagre so far. It is essential to send as soon as
possible funds and above all to see that these funds are well distributed.
One must bear in mind that in this final period all the Jews who will be
caught will have been lost on account of their lack of financial means.
As regards Jews from provincial towns who have joined the partisans in
the hills, they must also be helped by the sending of funds, foodstuffs
and medicines. It is reckoned that about 20-25,000 Jews still live in
Greece.
7. The tragedy of the Jews in Greece has entered a new phase about
a month ago. According to information from reliable sources all the Jews
of Athens - owing to lack of funds which would have enabled them to hide
themselves - began since October 1943 to register themselves with the
Gestapo. Their number reached about 2,000 by March 1944, when they were
all sent to concentration camps near Athens preliminary to deportation to
Poland.
8. Among those who were arrested there are all the foreign nationals
Jews numbering about 300 chiefly Spaniards, a few Portuguese and Argen-
tinians. It would appear that they have all shared the fate of Greek Jews.
The only difference which the Germans have apparently made is as regards their
property which has not been confiscated but has been left to the care of the
Spanish Legation in Athens. The Jewish nationals of Spain, Portugal and
Argentine had in the past enjoyed the efficient protection from their
Governments. Spanish Jews from Salonica numbering 365 were repatriated
and are at present in Spain. Jews of Turkish, Swiss etc., nationality who
Regraded Unclassified
222
- 3 -
lived in Greece were allowed to return to their respective countries.
There is no doubt that the 300 foreign Jews in Athens would be saved if
their respective Governments took up firm attitude towards the German
authorities.
9.
At the same time as all the registered Jews in Athens were
being arrested the Gestapo has been systematically endeavoring to discover
the many ones who are still hiding. The Gestapo has been offering as a
reward 50% of the property belonging to any Jew whose hiding place is re-
vealed to them. In consequence of the foregoing several arrests were made
and executions have followed swiftly.
10.
It is reported that the Jews of the little Community of Heraclion
in Crete were all shot by the Germans several months ago in a field outside
the town.
11. The following are the Greek towns where there still were Jews
after those from Macedonia and Thrace had been deported to Poland and the
approximate number of families in each town:
I.
Athens
2,000
II.
Halkis
120
III.
Volos
300
IV.
Larissa
280
V.
Triccula
70
VI.
Karditsa
20
VII.
Jannina
300
VIII.
Arta
60
IX.
Preveza
60
X.
Kastorva
230
XI.
Corfu
350
XII.
Zante
25
XIII.
Patras
60
XIV.
Canea
300
XV.
Pethymo
30
The above numbers of families may have been increased by refugees from Macedonia
Mr. Cohen
Legal Advisor at Greek Foreign Office.
Regraded Unclassified
PROPOSED TELEGRAM TO AMERICAN LEGATION, HELSINEI
Refer your 341 of April 20, While granting the desirebility of
an official Finnish statement on victime of Nasi oppression and per-
secution Var Refugee Board feels, and the Department agrees, that
the political factors as reported by you may be considered to out-
weigh any advantages that might accrue through the issuance at this
time of such a statement by the Finnish Government.
The Board would appreciate, however, your employing delaying
tactics with the Foreign effice in the event that the statement might
be considered opportune and of value at some later date.
With reference to movement from Finland to Sweden of various
refugee groups and Finnish Jewish community listed your 303, April 3,
Minister Johnson has just reported that Swedish Government does not
believe that minority groups in Finland are in serious danger from
the Germans but that refuge would probably be extended if Finnish
Government requested Swedish Government to allow entry of these persons
on ground that they may be in jeopardy in Finland.
Should circumstances so warrant, you are in your discretion
authorized to approach appropriate officials of the Finnish Government
in this connection. Please keep abreast of developments which say make
desirable the movement from Finland of potential victims of the Gestapo
in the event the Germans take action in Finland paralleling that taken
by them in Hungary, Rumania and Bulgaria, and keep the Department
advised.
Repeat information to Stockholm, Sweden.
May 2, 1944
10:05 A.M.
MStandish:LHLesser:1cm 4/29/44
Regraded Unclassified
224
KEN-250
Tegucigalpa
This telegram must be
paraphrased before being
Dated May 2, 1944
communicated to anyone
other than & Government
Rec'd 9:40 p.m.
agency. (BR)
Secretary of State,
Washington.
133, May 2, 5 p.m.
It is assumed that my despatch No. 1002 of
April 28 entirely covers the matters discussed in
the Department's circular airgram of April 22,
7:30 p.m., received this afternoon.
Does the Department desire any further action
here?
FAUST
WSB
JT
Regraded Unclassified
225
AIRMAIL
No. 455
EMBASSY OF THE
UNITED STATES OF AMERICA
Lisbon, May 2, 1944
Subject: Transmitting Preliminary Report on Activity
for Refugees in Portugal for War Refugee Board
The Honorable
The Secretary of State
Washington
Sir:
I have the honor to transmit herewith a preliminary report,
prepared by Dr. Robert C. Dexter, Special Attache to this
Embassy, on the activity in Portugal in behalf of refugees. Pro-
vided that the Department perceives no objection, it would be
appreciated if the report would be forwarded to Mr. John W. Pehle,
Director of the War Refugee Board.
Respectfully yours,
For the Ambassador:
/s/ Edward S. Crocker
Counselor of Embassy
Enclosure
Report
300
MCR/mvd
Regraded Unclassified
226
Enclosure to despatch no. 455 dated May 2, 1944, from
the Embassy in Lisbon
Preliminary Report
To:
John W. Pehle
Director, War Refuges Board
From: Robert C. Dexter
Special Attache, American Embassy, Lisbon.
April 26, 1944.
Since I have actually been functioning as your represen-
tative in the Embassy approximately one week, there is not
very much in the way of concrete accomplishments to report.
There are, however, certain matters en train and there are
certain indications pointing either to possibilities of success
in our efforts or suggesting possible difficulties. It there-
fore seems advisable that I send you this report. There are
certain points on which the cooperation of the Board in Wash-
ington may be helpful and there are other matters on which it
will be exceedingly desirable to have your advice.
Attitude of Embassy
First of all I wish to record my appreciation of the
cordial and helpful attitude adopted by the entire staff of
the Embassy in Lisbon from the Ambassador down. As I already
indicated to you, the Ambassador was most friendly in his
interview with me on receipt of your cable, and that cordiality
and friendliness, together with genuine interest in the task
we are undertaking, continues. Prior to my taking over the
work here the main responsibility for carrying out your
directives has rested and still rests 80 far as the Embassy
is concerned, on the Counselor of the Embassy, Mr. Edward S.
Crocker, and I desire to express to you my appreciation not
only of the way in which Mr. Crocker has been helpful to me
but also of his untiring efforts to carry out your suggextions
and the willingness with which be has assumed heavy burdens
in addition to multitudes of others which he has been carrying.
will continue as it makes the work ever 80 much easier and
I sincerely hope that the present cordial and friendly relation
pleasanter.
Regraded Unclassified
227
- 2 -
Attitude of Private American Agencies
There are, as you know, five or possibly six American or
American affiliated agencies functioning here in Portugal deal-
ing to a greater or less degree with the problems of refugees.
The reason that I an somewhat in doubt as to the number is that
I an not altogether clear where to classify the representative
of the World Jewish Congress. This is an international body
but its strongest single constituent group is that in the United
States, so that practically speaking it seems fair to include
it among the American agencies.
The largest and most important single agency in Portugal
is the American Joint Distribution Committee, whose director
is Dr. Joseph Schwarts. Dr. Schwarts and his associates have
been cooperative and have made more use of the facilities of
communication accorded by the War Refugee Board than any other
agency. Considering the sise of the agency and its long history
of effective work for Jewish refugees, one might have thought
that they would have considered the appointment of a representa-
tive of the War Refugee Board unnecessary and an infringement
on their autonomy, but 80 far at least no such attitude has
developed.
The second large Jewish agency is the HICEM, the director
of which is also an American, Dr. James Bernstein. The HICEM
is, in one sense, an international agency also, as prior to this
war most of its resources came from Europe. Since the war,
however, the resources of HICEM have almost entirely come from
the Joint Distribution Committee, consequently from the United
States. The HICEM is primarily concerned with transportation.
Dr. Bernstein has been ill and I have not seen as much of him
as the other persons involved, but I see no reason to believe
that he will not cooperate in our endeavors.
The third agency in chronological order, that is in length
of time which it has served in Portugal and in financial budget
1e the Unitarian Service Committee. I have officially turned
over all my responsibilities in connection with that Committee
to Mrs. Dexter, but under the circumstances I see no reason to
be disturbed about lack of cooperation. This Committee is mainly
concerned with non-Jewish refugees and, as will be indicated below,
has a very beavy responsibility in connection with Spenish re-
publicans.
Regraded Unclassified
228
- 3 -
The American Friends Service Committee, under the direction
of Mr. Phillip Conard, has been established here a shorter time
than the Unitarians or the Joint and has a smaller budget. They
carry a case load of both Christians and Jews which is not as
large as that of the Unitarians. Mr. Conard has been very
friendly but there is one difficulty as to policy which has
already arisen, which I shall comment on later. I think it can
be straightened out.
The American-Polish Relief Committee has a representative
here, Mr. Victor Piskorski. This Committee has been primarily
concerned with the shipment of food parcels to Poland, for which
it has had a special license from the United States. It is also
concerned in a minor degree with the care of Polish refugees
and, at a conference held yesterday in the Embassy, Mr. Piskorski
indicated that there was a possibility of his Committee bringing
out of France a large number of Polish children. Up to the
present time this Committee has not functioned in as close co-
operation with the other refugee committees, as I believe it
could. This has not been the fault of Mr. Piskorski, however,
and I believe that with the attachment of an officer to the
Embassy concerned with refugee problems we can bring about a
closer integration of the Polish-American Committee into the
general picture. This will, I hope, result in our getting out
a larger number of Polish refugees than might otherwise have
been the case. Mr. Piskorski's attitude is exceedingly cordial
and he is to be counted on for effective cooperation,
The American Red Cross has had a representative in
Lisbon for a considerable time, Mr. Ronald Klein. The Red
Cross is not primarily a refugee organization per se, but
in making plans for any large and cooperative movement the
Red Cross should be included. The Red Cross has facilities
which none of the other private organisations have, and Mr.
Klein's personal attitude is exceedingly friendly. One of
my hopes is to bring the Red Cross also into closer coopera-
tion and contact with the problems which we are facing.
The most recent American private organization to estab-
lish itself here in Lisbon is a representation of the American
National Catholic Welfare Council. Its representative 10
Dr. Henry Amiel. This committee naturally is concerned with
Catholie refugees. Dr. Amiel has only been in Lisbon for a
couple of months and is at the present time feeling his way
very carefully. Just how much this agency can do in getting
out refugees from occupied countries is uncertain at the
Regraded Unclassified
229
- 4 -
present time but it may well be that they will be exceedingly
helpful in our relations with Spain. They already have an
American representative in Spain, Miss Eileen Eagan. She
is returning from Spain shortly and when she comes back I
desire to have a conference with her and see if she cannot
help us smooth the way of refugees across the Peninsula.
Dr. Amiel naturally is very dependent for advice on the longer
established agencies and seems very grateful for any coopera-
tion which the Embassy here can give. I think we can count
on him to the full insofar as he can be of effective service.
The last agency is the World Jewish Congress previously
referred to. This organization has had a representative in
Lisbon, Mr. Isaac Weissman, who came to Lisbon as a Turkish
citizen but now possesses a Polish passport. Mr. Weissman
came here in 1942 I believe, and has been exceedingly active
ever since his arrival. He on the one side, and the Joint
Distribution Committee, the HICEM and the local Jewish com-
munity on the other, seem to have an outstanding feud. Whether
this is due to a difference of ideologies - Weissman's organi-
sation is Zionist and the others are neutral on the Zionist
question - or to a difference of general policies - the World
Jewish Congress has always been in close touch with under-
ground movements in the occupied countries and has not hesitated
to use technically illegal means in helping refugees, and the
others have tried to be technically "correct" - or whether it
is due to personalities, it is difficult to say. The fact re-
mains that there are difficulties. Weisaman, more than any
other representative of the agencies here, has shown & most
cordial - if not a proprietary - interest in the War Refugee
Board. The Unitarian Service Committee has been more closely
in touch with Dr. Weissman than any of the other refugee orga-
nisations here and be has appreciated its support at difficult
times very much. Consequently he welcomed my appointment'
with almost too open arms. At the same time it trust be said
that Weissman has contacts with the refugee governments, with
the underground in various countries and has unlimited persis-
tence and devotion. The British Embassy has very close rela-
tions with Dr. Weissman although their officials recognise
his shortcomings as much as the rest of us. His cordiality
and friendliness will be an asset in our program but at the
same time we must not allow ourselves to fall entirely into
his hands or those of his organisation. It is going to be
difficult to steer a middle course as WB wish to avail our-
selves of the opportunities which his organization provides;
Regraded Unclassified
230
- 5 -
but this is what we must try to do unless we are going to
antagonise the other Jewish organizations.
The Problem in Portugal at present
The general problem in Portugal at present has been
adequately covered in the memorandum sent you recently en-
closing the report of the British Embassy to the Foreign
Office. In regard to this report, which was prepared by
Mr. Peter Garran, Second Secretary of the British Embassy,
it should be said that his data was almost entirely derived
from reports given him by the various private agencies here.
Mr. Garran has been designated by the British Embassy to
handle refugee problems and he has the able assistance of
another member of the staff of the Embassy, Mr. John Hart.
With both of these men this office works in the closest con-
tact and harmony.
There are no further comments that need to be made at
the moment on the situation here except to once more query
you regarding the situation of Spaniards. Before I left the
United States you had already sent a representative to Mexico
to intervene with the Mexican Government and secure if possible
500 Mexican visas for Spanish republicans in Spain or Portugal.
You were also taking up the matter of transit visas for the
Spaniards across the United States in case that should be
necessary. I have had no word from you as to the success of
your efforts and should appreciate very much hearing about it.
May I point out once more that the evacuation of these Spanish
refugees from Portugal would help a lot in softening the atti-
tude of the Portuguese Government toward the admission of other
refugees from the occupied countries and it is absolutely vital
for their own welfare. They are, at the moment, the only large
number of refugees who are in immediate danger in this country.
And they constitute a very real problem for the Unitarian Com-
mittee and to a lesser degree for the Friends Service@Committee,
both of which organizations have a number of Spanish cases,
although the Unitarian Committee has the much larger number.
Incoming Refugees from Occupied Areas
At the present moment the indications are, as described in
cables and mamoranda previously sent, that we may have an influx
of child refugees coming from France via Spain. That influx
Regraded Unclassified
- 6 -
has not yet materialized but the preparation for it has been
made during the last week or ten days. Formal notes have been
sent by both the British and American Embassies to the Portuguese
Foreign Office indicating the possibility of the arrival of a
number of children who will have no proper papers. The Inter-
national Police have indicated to the British Embassy's represen-
tative that if the Foreign Office and the Government approved,
they would be willing to receive these children even without
transit visas for Portugal, provided that we, in our turn, would see
that they were provided for while here and that plans for their
migration would be made within a reasonable time. In view of your
recent cable regarding American visas for such children and your
promise to provide for them while in Portugal, we felt that we
could make such guarantees. In addition, the British Government
has advised the Portuguese Government that visas for Jewish
children would be available for Palestine. At the present moment
a representative of the Jewish agency, Mr. Lichtenstein, a Pales-
tinian, is here and has authority to issue such visas. We there-
fore have two possibilities for migration.
As indicated to you in & recent cable, this presents a
problem as well as & possibility. There is almost certain to be
some conflict between the American Jewish agencies, which I judge
would prefer the children to go to the United States, and the
World Jewish Congress, which would prefer the children to go to
Palestine. For the moment at least, since there is likely to be
a ship for Palestine in the next month or two, it would seem to
me that it would be best, in case children come in soon, to send
as many as possible to Palestine as the expenses of transporta-
tion are cheaper, the facilities for their care on arrival appar-
ently just as good if not better, and one very important thing,
they would be nearer their parents and friends in Europe after
the end of the war. However, we can take no sides in this
possible controversy. The Joint Distribution Committee is
apparently willing to send children to Palestine when there is
transportation, but if transportation is not available, they
naturally desire to send them to the United States. I hope we
can iron out this situation without any real clash.
Some of the difficulties are illustrated, however, by what
has happened within the last few days. According to Dr. Weiss-
man's report, his organization brought four children over the
Pyrenees at their expense. when they landed in Barcelona they
were immediately arrested by the Spaniards, and the World Jewish
Congress, as yet having no representation in Spain, could not do
anything for them. The Joint Distribution Committee was appealed
to and its representative had the children released in his care.
Regraded Unclassified
- ? -
Now the Joint Distribution Committee is claiming that these are
their children. A similar situation arose regarding forty Jewish
men, who had to call on the Joint Distribution Committee and the
Quakers in Spain for assistance, although Weissman claims that
they were brought out of France through the agency of his organi-
zation, I fear that there are going to be many similar problems
unless we here, and perhaps particularly you in the United States,
can somehow get these two important Jewish organizations to work
in harmony. This lack of harmony is going to affect our work, is
going to make it more difficult for us to get people out, and is
certainly going to present heavy and unnecessary problems to your
representatives abroad,
Dr. Weissman claims that the first contingent of six children
from France will reach Portugal within the next day or two. He
is making his own arrangements quite independent of the Jewish
agencies here for their reception and care and is calling on the
War Refugee Board for financial support. In view of your telegram
and since the number is comparatively small, I have agreed to fur-
nish the necessary support for these six and perhaps for a small
number of others, who he indicates will be coming soon. But it
will be far better and less expensive for the war Refugee
Board if these children can be cared for by other Jewish
agencies here, who apparently are ready and willing to do so.
The difficulty seems to be a matter of control and organisa-
tional prestige. Frankly, it seems to me that the children
are a bit like the unfortunate child on whom Solomon was asked
to pass judgment, where the woman who was not the mother was
willing the child should be cut in two. I sincerely hope that
I can do something here to prevent any such unhappy occurrence
and also that you can make the necessary representations to
the head offices of the organizations concerned in New York
so that they will instruct their representatives to cooperate.
Despite these difficulties, I feel very definitely that
80 far as children, and probably so far as adults are concerned,
Mr. Weissman has the more effective organization to bring people
out. He and his group are willing to take chances and that is
essential. He claims to have, and I believe does have, repre-
sentatives in France who are running the risk of their lives
in this undertaking, and incidentally I think his organization
brings children out at a less cost than the Joint Distribution
Committee. This means that there 18 less American cash that
runs the risk of getting into the hands of the Germans.
Regraded Unclassified
- 8 -
No shall continue here to work in as close cooperation a8
possible with both groups. Weissman's group, as indicated in
the cable, will certainly need financial support, the other
not, but it is my feeling that we will get more people through
from Weissman than in the other way,
Publicity
Publicity also presents a thorny problem. We realize
perfectly well here that the war Refugee Board must justify
its existence and mist from time to time report to the country
regarding its accomplishments. At the same time any reports
regarding children or adults gotten out of occupied territories
may well mean the end. It is for this reason that we asked in
a recent cable that no publicity be released regarding these
activities without consultation here. After all, our main
objective is to get the people out and if it is killed by
publicity, then our usefulness is ended. In this connection
also we are going to have a problem with the World Jewish Con-
gress. They are very keen on publicity with their name attached.
I do not see any objection to using their name, but I do feel very
doubtful about publicity in the press. I am sorry that this is
the case, but years of experience in dealing with the evacuation
of refugees are back of this feeling on my part, which I must
add is shared with many of the officials of the Embassy here
with whom I have talked.
Joint Distribution Committee Plans
I need not say much regarding the Joint Distribution Com-
mittee's plans as you are informed regarding them through their
many cables. They, too, have plans for getting out children,
some of whom will go directly to Palestine from Spain and
others come through here. They have similar plans for adults.
Just how many of these plans may be realized, it 18 diffi-
cult to say. The same caution should be used regarding their
plans as those of Dr. Weissman. This is another reason why
it is unwise to have any publicity until things are really
accomplished.
The Joint Distribution Committee is doing an excellent
piece of work in bringing children, and adults too, out of
the Belkans to Palestine and in this effort we are cooperating
through facilitating their comunications back and forth to
Istanbul as well as to New York.
Regraded Unclassified
- 9 -
The American Friends Service Committee
The only item in this organisation's program that needs
comment 18 one which is at present under discussion. Mr.
Conard some days ago received a cable from his head office
in Philadelphia saying that they had available an appropri-
ation of some $15,000, which was to be used for bringing
French children out of France to Portugal for a period of
three months, keeping them here for feeding and physical re-
building, and then returning them to France. He had not asked
the cooperation of this Embassy officially in representing
the matter to the Portuguese Government, but was planning to
do so through the former Brazilian Ambassador to Paris, who
was passing through hère, who is a close friend of a very
high official of the Portuguese Government. In view of the
fact that both the British and the American Embassies are now
making representations, to which no answer has as yet been re-
ceived, regarding refugee children whose very lives are in
danger, it seemed to us here that it would be unwise at present
to make additional representations to the Portuguese regarding
these French children. It might well complicate matters; the
Portuguese might think that by accepting this suggestion made
by an American committee they would not only please America
but please Vichy and the Germans as well, and might feel that
there was less risk involved in accepting this suggestion than
that of taking in the refugee children. After consultation
here, I therefore advised Mr. Conard to cable his head office
that the Embassy here recommended 6 delay in this request.
Certainly if such a request were to be made by an American
organization it should be made through an American represen-
tative, We here hope that you will agree with our decision,
which is based on the belief that the main function of the
War Refugee Board is to get people out who are in immediate
danger, and that all the forces of the American diplomatic re-
presentatives should be directed toward that end. If our re-
quest is refused, which I do not think it will be, as the
police have given approval for the first six to come through,
then we might take up the other, but it presents many diffi-
culties. However, our main objection 1a that it might endanger
the original plans.
Communications
The facilities which the War Refugee Hoard has offered
to the various private agencies of communication through
diplomatic channels, have been most gratefully received. The
Joint Distribution Committee has availed itself of them exten-
sively and the others to a lesser degree, However, in view of
the fact that the sending of cables, particularly if coding is
Regraded Unclassified
- 10 -
involved, means a terrific amount of work both for the staff
of the Embassy here and for the State Department in Washington,
I have suggested to the agencies at a conference held yesterday
that wherever possible they use first the ordinary commercial
cables. It seemed to me that many cables were being sent that
could just as well have gone through the commercial channels.
Second, that, where for reasons of speed it was advisable to
use diplomatic comunication, they wherever possible send their
cables in the clear. This means that the cables will go through
quicker and actually they will be more accurate, as they are
not subject to paraphrase, although I didn't mention this last
argument. Third, that code cables should only be sent in cases
where it is necessary to keep information out of enemy hands.
In general it seems to me that the decision as to whether a
cable should be sent coded or in clear should be made at the
Embassy rather than by the agency. Sometimes, even, they might
send cables which from their point of view would seem perfectly
all right to send in clear, which for reasons of security the
Embassy might feel should be coded.
Radio Bulletin No. 98, Paragraph 1, Page 3.
The Embussy here has noted with considerable interest
this paragraph in the radio bulletin of April 22, Your state-
ment regarding the WRB's function is perfectly clear. I am
not quite so clear as to Sir Herbert Emerson's statement to
the effect that the principal task of the Intergovernmental
Committee will be "looking after the refugees after they reach
neutral territory". Does that mean that the Intergovernmental
Committee will take the responsibility of refugees here and
if so will they have a representative here, or will the WRB
represent them as well? I should appreciate elucidation on
this point, which I assume will be coming before long. The
UNRAA portion of the task is clear except in regard to Pales-
tine, regarding which I have sent you a special memorandum.
Spain
It.1s becoming increasingly clear to me that success or
failure of our task here will to a very large extent depend
on the attitude of Spain. Spain can make it possible for re-
fugees to come through or can completely block our plans. And
unless the WRB has 44 strong representative in our Embassy in
Spain, little or nothing can be done here. I should appreciate
it exceedingly if I were informed as to just what progress has
been made in regard to Spain.
Regraded Unclassified
- 11 -
Dr. Weissman is planning to visit Spain shortly - he has
a Spanish visa - to consult with General Jordana, the Secretary
of State for Foreign Affairs, regarding the possibility that
the World Jewish Congress open up offices in Spain to receive
refugees and also to get the general attitude of the Spanish
Government. He has had apparently quite successful conferences
with the Spanish Ambassador here, Senor Nicolas Franco, and
this Ambassador has asked Mr. Weissman to ask me to call upon
him. Mr. Weissman is arranging an interview for me.
Weissman has also suggested that if he did have offices
in Spain he would be perfectly willing if it could be arranged
to have American representatives, either official or unofficial,
of the War Refugee Board work in these offices. They would
have to work technically as employees of the World Jewish Con-
gress unless we could get some kind of special permission.
Frankly I do not like the idea very much. I wish that we could
have representative of our own, or if that is not possible, re-
presentatives of the Unitarian Service Committee in Spain who
would closely cooperate with the WRB. The important thing, how-
ever, is to have an official WRB representative at Madrid, as
otherwise our work in Portugal is limited indeed. Such a man
ought to be of the type who could contact people who are inter-
ested in bringing people out of the occupied territories and it
would necessarily take an individual of strong personality and
plenty of courage as well as wisdom. Whoever went to Spain
should of course be in the closest contact with the WRB represen-
tative here, as the problems of the two countries are really in
this regard practically one.
Financial Licenses
The question of financial licenses bids fair to be one
which will consume considerable time here. With the new policy
of the Treasury, there will undoubtedly be increasing demands
for funds to be sent into enemy countries. Here, your represen-
tative will of necessity have to work in the closest cooperation
with the Financial Attache of the Embassy. He, and I likewise,
must be satisfied, insofar as is reasonably possible, that the
funds do not get into enemy hands, and sometimes this is a very
difficult thing to be sure about. We shall do our best to check
each case, and if we are in doubt will of course advise you and
the Treasury. Each license 18 being worked out by us coopera-
tively and the information is being gathered so that we both may
have it. Incidentally there is a possibility that there will be
a demand for an increase of license from the Polisn-American Com-
sittee, as they have many more demands for food to be sent to
,oland than they can supply under their present License. the
Regraded Unclassified
- 12 -
that demand comes, we shall try to check over their data and if
it seems reasonably sure that the food does not fall into the
hands of the Germans, we shall make a recommendation for an increase.
Another problem in connection with the sending of food is
the price of food from here. At the present time the price 1a
sky-high, and the Financial Attache and this office are making
investigations to see if reduction in the price to American agencies
and the simplification of the processes of sending cannot be
attained, as I believe if we can save the agencies money they can
use their funds to greater advantage.
Conclusion
I have tried to make this report as complete as possible
and have stated our problems as well as our possibilities. I
should be very happy to have any comments which you care to
make and especially urge your cooperation in solving some of
the problems which may be best approached at your end. May I
say, in conclusion, that, as you have already gathered, the
task is not a simple one, that we cannot accomplish all that
we would like to accomplish, and that we must be governed ulti-
mately by the policy of our Government, with which we gladly
cooperate, not to do anything which would interfere in the
slightest with our winning the war or winning the peace.
Regraded Unclassified
MFG-13
PLAIN
Lisbon
Dated May 2, 1944
Rec'd 12:31 p.m.
Secretary of State,
Washington.
1326, Second, 1 p.m.
FOLLOWING FROM JOSEPH SCHWARTZ FOR LEAVITT
JOINT DISTRIBUTION COMMITTEE NEW YORK:
WRB sixteen. "International Red Cross Geneva
suggests Portuguese authorities might grant export
permits foods other than sardines and dried fruits
provided Portugal received compensation corresponding
additional imports. Suggest you investigate pos-
sibilities with authorities Washington since such
arrangement would help feed labor camps especially
Yugeslavia."
NOTWEB
CSB
WSB
Regraded Unclassified
HECT - 144
PLAIN
Lisbon
Dated: May 2, 1944
Rec'd: 6:02 p.m.
Secretary of State,
Washington.
1327, 2nd, 4 p.m.
WRB 14. Reference Department's 1208, April 29.
Approve appointment, hope Widen arrives soon.
NORWEB
MEM
EJH
Regraded Unclassified
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Stockholm
TO:
Secretary of State, Washington
DATE:
May 2, 1944
NUMBER:
1540
CONFIDENTIAL
American and British Legations, without reference,
have proved as cases 276 export to Norway 300 kilograms
used shoes and 1,000 kilogram used clothes, because of
political implications and urgency of request. This
material is to be distributed to victims of recent
explosion in Bergen by Donora Committee. Svenska
Norgehjalpen contributed clothing and shoes.
Foregoing message was repeated to London in
my May 2 telegram no. 359.
JOHNSON
Regraded Unclassified
CABLE TO MINISTER HARRISON, BERN, SWITZERLAND
Reference is made to your 2282 of April 13, speci-
fically to passage regarding reply by Cube to Vatican.
For your information, Ambassador Braden has been
instructed to convey to the Cuban authorities the Depart-
ment's appreciation of Cuban attitude and the assurance
that the United States has no (repeat no) objection to
Cuban recognition of such documents. Ambassador Winant
has been instructed to request a similar British assurance
to Cuba. Tittman has been asked to inform Vatican accord-
ingly with a view to further Vatican action.
As regards actual admission, Ambassador Braden has
been asked to ascertain Cuba's attitude. Should he find
that Cuba is not (repeat not) agreesble to the admission
of such persons holding Cuban documents, he has been author-
ized to repeat to Cuba the assurance given to other Latin
American republics to the effect that Cuba will not (repeat
not) be expected to admit persons concerned but that they
will be routed elsewhere.
Ambassador Hayes has obtained assurance that Spain will
endeavor to arrange for return of deported refugees to
Vittel.
Among the Latin American countries approached, Honduras
and Venezuela have already acceded to all our requests
referred to in Department's 1221 of April 10 to you.
Refer to your 2510 of April 20. Appreciate your speedy
action concerning 238 deportees. War Refugee Board received
unconfirmed report that most or all of 238 deportees from
Vittel have been or are being placed in Camp Drancy near
Paris. Please take all necessary steps through Swiss, Inter-
cross and otherwise to assure their welfare.
Please advise whether Swiss authroites have made the
demarches requested in our 1221 of April 10 and in our 1269
of April 13.
THIS IS WRB BERN CABLE NO. 12
May 2, 1944
9:50 c.m.
BAksin:jp
4/29/44
Regraded Unclassified
242
TELEGRAM SENT
PLAIN
May 2. 1944
AMLEGATION,
BEFN.
1527, second
Legation authorised to pay salary and administrative
expenses of Rs D. McClelland, Special Attache of War
Refugee Beard at Born as follows:
(1) Salary at $6500 per annumieffective date
McClelland assumes duties.
(2) Per diem of $7.00 effective same date.
(3) Travel expenses.
(4) Salaries local staff.
(5) Miscellaneous expenses for office supplies and
equipment.
Combined annual expenditure under last three items
estimated not to exceed $6000.
Include payments in regular accounts for reimbursement
by VEB accordance Sedion V-45 as authorized by its letter
of April 22.
Questions raised in Legation's 2669, April 26, are
answered as fellewst
(10 Arrangements being made to establish pay
adjustment allotment for VES. Department
will authorise payments to McClelland when
they are completed.
(2) Per dies of $7.00 only authorised at Bern.
Maximum per diem of $8.00 payable only while
1:
in travel status in Switserland and not for
periods spent at efficial beadquarters.
(s) No. Veuchers are to be certified by Legation's
certifying efficer.
(4) Yes.
HULL
(GLM)
VH3
It
L-S/3
Regraded Unclassified
243
NOB-71
Bern
This telegram must be
paraphraced before being
Dated May 2, 1944.
communicated to anyone
other than a Governmental
Rec'd 2:12 p.m.
agency.
(R)
Secretary of State,
Washington.
2770, May 2, 3 p.m.
Swise committee for aiding Jews in Hungary
requests following be transmitted for information
War Refugee Boards
"Hungarian Government recently issued a decree
designed completely ruin Jews. Real estate bank
deposits safes and all valuables must be reported
eventually depositied businesses have been closed and
stocks confiscated. Expected next stop will be that
confiscated goods will be taken possession of by
others.
In committee's opinion all who obtain possession
such confiscated goods are under Hungarian law guilty
of receiving stolen property and will after the war
not only have to restore goods but also to suffer
legal consequences.
Committee is firsly convinced that repeated
breadcasting of this would have deterrent effect and
requests consideration of recommendation by
appropriate authorities with & view to immediate
action."
HARRISON
Regraded Unclassified
244
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMLEGATION, Bern,
TO:
Secretary of State, Washington
DATED:
May 2, 1944
NUMBER: 2793
Reference is made herewith to London's tele-
6TAR to the Legation of April 28, 1944, no. 97,
repeating its cable to the Department in answer
to the Department's telegram to London of April
26, 1944, no. 3325.
ABFAR 1523 has been received from KEV by my
British colleague and this cable gives wide discret-
tion to approve in this case even items which would
be referred to London normally and my British
colleague has informed London in reply that he is
ready to give approval.
2. IRO will be informed by the Legation that it
approves of the total $100,000 purchase program un-
less instructions to the contrary are received.
This withholding action is being taken by us in
anticipation of instructions from the Department
regarding the question of policy raised in the
LegatioNs cables of April 6, and April 24, 1944,
no. 2122, and 2612, and London's cable referred
to above.
The foregoing message was repeated as no. 736
to London for information of our Embassy there.
HARRISON
Regraded Unclassified
PARAPHRASE OF TELEGRAM RECEIVED
215
FROM:
American Legation, Bern
TO:
Secretary of State, Washington
DATED:
May 2, 1944
NUMBER:
2794
SECRET
Reference my 2591, dated twenty-second of April.
It is requested by Riegner that there be forwarded
to the World Jewish Congress the following messaget
I submit herewith report of further acti-
vities which is is sequence to my March 23
report, transmitted by the Legation's no. 1851,
of March 25.
Having countervalus of 134,834 Swies france,
have transmitted during last month a further
8,100,000 Swise france for evacuation. In-
cluding groups from Holland and Belgum,
during the last months an average of sixty per
month crossed the frontier. During the first half
of April 46 young Jews evacuated to Spain, while
during the second half, an additional fifty are to cross
and have probably reached the frontier already. During
the coming weeks this number will be increased as it is
the most favorable time since spring. We are
constantly receiving news from persons who arrived
in Spain safely. In assisting Jewish children to
cross the Spanish frontier, the Jewish resistance
is equally active. Recently the first group of 25
children were brought to Spain. Jewish resistance
is largely reponsible for their rescue. Hidden
yes ons, especially those in particular political
danger, a. re also being assisted by Jewish resistance.
Having desounced and sold Jews to Germany, several
special groups of four to five young Jews are charged
with punishment and elimination of traitors. Including
reports of American Jewish Congress, the resistance
has published an illegal newspper containing
instructions to French Jews and nove of Jewish life
throughout the world. Arrest of the printer has
temporarily suspendeqpublication.
Requests transfer of maximum funds possible in
view of very satisfactory reports, In the
western countries the coming weeks say be the last
chance for rescuing Jews.
This report contains confidential information
and should in no vay be disclosed.
The RAND Beigner appears at the signer of the
foregoing nottage.
HARRISON
Regraded Unclassified
246
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMERICAST, ANKARA
TO:
Secretary of State, Washington
DATED:
May 2, 1944
NUMBER: 788
SECHET
Follwing is Ankara's 49 from the Ambassador for War
Refuges Board.
Testerday the vessel SS MILKA from Constansa carrying
272 Jewish refugees appeared off the Port of Istanbul and
asked for permission to enter the post.
The Foreign Minister has directed the refugees to Hand
and has requested the Communications Minister to provide trans-
portation to the Byrian frontier for them in spite of the fact
that the vessel again arrived without proper papers and the
refugees en board are without Turk entry or transit visas and
without Palestine entry certificates. The British in Istanbul
are today issuing the requisite Palestine entry certificates.
It is necessary for no to advise the Board to refrain from
expressing publicly at this time our appreciation fo the Foreign
Minister's action in allowing the continued transit to Palestine
of Jew refugees arriving in Turkey illegally. It is feared
that such public expression at this time might embarrass Turk
relations with Arab countries and might be used against the
Foreign Minister by his political opponents who are now very
active. Therefore it is reco mended that any public expressions
of appreciation be deferred until later especially since I am
advised that the Bulgarian vessel SS MARITZA, which will
present a situation similar to the MILKA, is due to arrive
in Istanbul shortly.
STEINHARDT
Regraded Unclassified
247
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMEMBASSY, Ankara
TO:
Secretary of State, Washington,
DATED: May 2, 1944
NUMBER: 794
SECRET
The Ambassador sends the following for WRB'S
attention.
Today, when I invited the attention of the
Assistant Secretary General of the Foreign Office
to the fact that no Jewish refugees have arrived
from Hungary of late and asked whether the Turk
Consul in Budapest might be withholddng the granting
of Tark visas for any reason in epite of the assurance
I received from the Foreign Minister that the grant-
ing of the visas would be facilitated. I vas informed
by Brkin that the Turk Consul at Budapest had sent
the Foreign Office work that every Jev entering the
Turk Consulate in Budapest was arrested as soon as
be left and transported to an unknown place.
The fore-going is WRB's 50 from Ankara.
STEINHARDT
Regraded Unclassified
248
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMEMBASSY, ANKARA
TO:
Secretary of State, Washington
DATED:
May 2, 1944
NUMBER:
795
SECRET
The following is Ankara's 51 from the Ambassador for the
War Refugee Board.
Reference is made here with to the Department's telegram
of April 27, 1944, No. 377.
No great difficulty in transporting the refugees who
might arrive on the SS TARI from Iskenderun to Haifa by means
of schooners or caiques, which probable could be sent from
Egypt or Palestine for that purpose, especiallyst this time
of year, is anticipated by me after discussing the matter with
Barlas.
While it is yet too soon to give up hope that a safe
conduct for the SS TARI will be granted by the Germans, the
recent severe strain on relations between Germany and Turkey,
resulting form the abrupt discontinuance of chrome shipments
to Germany from Turkey, makes it improbable that the safe con-
duct will now be forthcoming from the Germans, In spite of
the fact that requests for safe conduct have been made by the
Swedish and Swiss Governments, by the Aportalic Delegate in
Istanbul and the Vatican and by the International Red Cross
from both Ankara and Geneva, the Turk Foreign Minister's
request for safe conduct is doubtless the application to
which the Germans are giving the most serious consideration
since the TARI is a Turk vessel. It seems unlikely that &
safe conduct for the TARI will be granted by the Germans as
I have reason to believe that the Germans wish to strike back
at the Turks for their action in discontinuing all chrome
shipments.
STEINHARDT
Regraded Unclassified
249
A-245
Secret
3:25 pm.
May 2, 1944
AMEMBASSY,
CARACAS (VENEZUELA).
FOR THE PERSONAL AND CONFIDENTIAL INFORMATION OF THE
AMBASSADOR.
The results reported in your A-323 of April 15 are very
gratifying to the Department and the War Refugee Board. The
appreciation of this Government of the attitude of the
Venezuelan authorities should be conveyed to them. At the
same time kindly find out if an affirmative approach has yet
been made through the protecting power. Please urge immediate
action if this has not (repeat not) occurred.
Hull
HULL
(glw)
WRB :MMV :KG
ARA
5/1/44
Regraded Unclassified
250
AIRORAM
KEM
Caracas
BY SECRET COURIER
Dated MAY 2, 1944
Rec'd 8 a.m., 8th.
Secretary of State,
Washington.
A-381, May 2, 3:15 p.m.
Department's secret circular airgram April 22,
7:30 p.m. for the Ambassador concerning internees in
German occupied territory holding South American pass-
ports.
In supplementation of the action reported in my
secret airgram No. A-323, April 15, 3:10 p.m., I have
again spoken personally with the Foreign Minister in the
sense of the circular airgram of April 22, above cited,
who informed me that his Government is taking active
measures along the lines indicated and that as soon as he
had further details in this connection he would inform me.
He added that the Venezuelan Government had no precise
information regarding the number of Venezuelan passports
which might have been issued in Europe and reiterated
his previous statement that these passports would not
be invalidated by the Venezuelan Government.
CORRIGAN
FPC:JF:fkf
Regraded Unclassified
251
Dictated over the phone by Mr. Collado, of the Department
of State, to Mrs. Shanahan, 9:20 a.m., May 3, 1944.
Paraphrase of telegram from Moscow, No. 1547,
May 2,7 p.m., Most Immediate.
In further reference to your 1052, April 27, 8 p.m.,
I have been informed this evening by Vyshinski that the
reply of the Soviet Government to the question raised by
the Secretary of the Treasury is that the Russians are
prepared to accept an invitation to send a delegation to
a monetary conference at the end of May, the composition of
the delegation to be selected later. Since the Commissar
of Finance is too busy in Moscow he would not be able to
head the Soviet delegation although ** Vyshinski stated that
the Commissar sould very much like to do SO. Please
inform the Secretary of the Treasury.
(Signed) HAMILTON
Regraded Unclassified
252
NOT TO BE RE-TRANS LITTED
COPY NO.
SECRET
OPTEL No. 141
Information received up to 10 8,00, 2nd May, 1944.
1, NAVAL
On 28th/29th 30 aircraft attacked ANZIO, 9 claimed des-
troyed. One of H.M. Submarines off Southern French Coast torpodoed
and probably sank one 1,000 ton ship on 27th and one of 2,000 tons
on 1st, Now known that ship sunk in convoy from North Russia was
a U.S. Liberty Ship. A U.S. Cruiser, 7,000 tons, completed in
1923, has been transferred to Russian Navy and renamed.
2, MILITARY
BURMA. Fighting continues all sectors, We are improving
our positions and inflicting proportionately heavy casualties on
the enemy. 70 our of 80 Japanese who penetrated our garrison peri-
meter at KOHIMA on 27th/28th were killed in the counterattack that
restored the situation. Our troops operating immediately north of
the town are having difficulty owing to steepness of the ground
and dense jungle.
3. AIR OPERATIONS
WESTERN FRONT. 30th/lst. 587 tons H.E. dropped at
SOMAIN, 526 tons H.E. at ACHERES and 633 tons H.E. and MAINTENON.
All attacks considered good, especially latter two where cloudless
conditions and good visibility enabled highly satisfactory concen-
trations to be achieved.
1st. 458 heavy, 430 medium and 453 light and fighter
bombers attacked objectives in Northern France and Belgium as
follows:
Military Constructions - 254 tons dropped, almost
complete cloud conditions, majority aircraft de-
tailed did not attack, rosults fair, ground
opposition moderate,
Airfields - 116 tons droppod,
Railway objectives - 1,957 tons, weather conditions
generally good, results generally good to excel-
lent.
Casualties reported - Enemy 11, 0, 5, Ours 3 heavy beubers, 4
fighters missing.
lst/2nd. 762 aircraft despatched:
Goods Yards MALINES
132 (2 missing)
ST. GHISLAIN
137 (2 nissing)
CHAMBLY Permanent Way Depot
118 (5 missing)
TOULOUSE aircraft Factory
72
TOULOUSE Explosive Works
67
TOURS Aircraft Repair Works
50
LYON Motor Vehicle Works
75
Other ninor operations
111 (1 missing).
All attacks considered good except on ALINES where boobing
scattered,
ITALY. 29th. 200 bonburs and about 360 fighters it-
tacked cormunications and other objectives is Central ITALY.
29th/30th. 5 Liberators attached GYNDA and Wellingtons dropped
29 and 25 total on SPEZIA etf LEGHORS respectively.
25th. 35 cortid 11b rators attached
DENIS relivery NEW propping of the
Regraded Unclassified