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Volume 757, July 22 - July 24, 1946
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Volume 757, July 22 - July 24, 1946
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Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
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DIARY
Book 757
July 22-24, 1944
- B - -
Book Page
Business Conditions
Haas memorandum on situation, week ending July 22, 1944 -
7/24/44
757
207
- , -
Freeman, D. S. (Richmond News Leader)
See Post-War Planning: International Monetary Conference,
Bretton Woods, New Hampshire
- H -
Hull, Cordell
See Post-War Planning: International Monetary Conference,
Bretton Woods, New Hampshire
- I -
Italy
See Occupied Territories
- I - -
Kellems, Vivien
See Tax Evasion
- L - -
Lend-Lease
Budget for 14-month period, May 1, 1943, through
June 30, 1944, compared with actual requirements -
7/24/44
223
Loeb, John
See Procurement Division: Surplus Property, Disposal of
- 0 -
Occupied Territories
Italy: United States troop pay - memorandum and proposed
release for FDR granting Italy same arrangement as other
Western European countries - 7/22/44
121
- P -
Post-War Planning
International Monetary Conference, Bretton Woods, N.H.
American delegation final meeting - 7/22/44
1
a) HMJr's nessage to FDR at closing of Conference -
7/22/44
15
Regraded Unclassified
-P- - - (Continued)
Book Page
Post-War Planning (Continued)
International Monetary Conference (Continued)
Closing Plenary Session - program for - 7/22/44
757
17
a) Drafts of HMJr's closing address.
18
b) Reading copy - 7/22/44
100
1) Copy to FDR - 7/29/44: See Book 759, page 137
c) Hull's congratulations
115
d) New York bankers' attitude commented on by Brown -
7/24/44
163
FDR congratulates HMJr on Conference - 7/27/44:
Book 759, page 22
Freeman, D.S. (Richmond News Leader) congratulates HMJr:
Book 759, page 24
Hull congratulates HMJr - 7/29/44: Book 759, page 143
Procurement Division
Surplus Property, Disposal of: Set-up and relation
between Procurement and Surplus Property as proposed
by Olrich - - 7/22/44
116
a) Discussed by HMJr, Olrich, D.W. Bell, and
0.8. Bell - 7/25/44: See Book 758, page 12
1) Regions discussed
2) Loeb (John) unsatisfactory to Olrich
- S -
Speeches by HMJr
International Monetary Conference, Bretton Woods, N.H.
HMJr's closing address - 7/22/44
100
(See also Post-War Planning)
- T -
Tax Evasion
Vivien Kellems and brother: Payments reported current -
7/24/44
191
Regraded Unclassified
1
Bretton Woods, N. H.
July 22, 1944
9:30 a.m.
FINAL MEETING OF AMERICAN DELEGATION
Present: Mr. Luxford
ar. Spence
Mr. Sweetser
Mr. Brown
Miss Newcomer
14
Mr. Ness
Mr. Tobey
Mr. Vinson
Mr. McDermott
Mr. Bernstein
Mr. Kelchner
Mr. Wolcott
Mr. White
Mrs. Klotz
H.M.JR: This is a rather unique experience, I think.
About eleven o'clock last night I got the idea that it
might be nice if the President sent a message of
congratulations to the Conference on the conclusion.
I don't honestly know where he is. I have a sneaking
notion, but I honestly don't know where he is. Here
it is nine-thirty and I already have an answer, and our
message didn't leave until after micnight.
"A proposed draft of telegram to be sent to the
United Nations Monetary and Financial Conference at
Bretton Woods' approved. F.D.R. Di you work on the
message?
MR. LUXFORD: No. I was working on Commission Four.
H.M.JR: Well the main purpose, at ten o'clock, on
request, the Russian Delegation and the American Delegation
are having their pictures taken.
MRS. KLOTZ: I said we would let them know. Is that
definitely arranged?
Regraded Unclassified
2
-2-
H.M.JR: Fred Smith is handling it.
MR. TOBEY: I wish we had a picture of all the
Delegates.
MR. McDERMOTT: Some of them are gone.
H.M.JR: I promise not to call a meeting tomorrow
morning.
This is sort of the home-stretch and as Chairman
of the Delegation, I really wanted to thank you each
and everyone of you for the splendid work. I have never
in my eleven and three-quarter years in Washington ever
participated with a group, and this is not blarney, that
worked so well together. I don't know of a single
instance of double crossing or anything behind the back.
It has been a team. It has been the most successful group
I have ever worked with, the most pleasant, and I think
it has demonstrated to me that on this sort of thing it
is the way we should work with Congress. There has been
lots of discussion about the Executive infringing on the
authority of Congress, and vice versa, but I think I
certainly am going to recommend as strongly as I know
how, to the President, that he follow this method at any
other similar International Conference.
In my presence Congressman Wolcott told the reporter
from the Tribune that there wasn't a single episode that
took place, no matter how secret, that he wasn't informed
about it, and there was nothing took place here that he
didn't know about, and I am sure that would have been
true if you had been with me.
MR. TOBEY: I would have been glad to make that
testimony.
H.M.JR: So altogether, I am going back tomorrow
very happy and feeling that thanks to each and all of you,
plus the technicans, that this has been a most successful
experiment in democracy. That's the way. I feel. That's
about all.
Regraded Unclassified
3
-3-
I would like to take a few minutes and ask for
suggestions as to what we are going to do to sell this
thing now that it is an accomplished fact.
MR. WOLCOTT: First, may I say, Mr. Secretary, that
I think much of the harmony is due to the splendid leader-
ship you have exhibited and the fairness with all of us.
I shall leave here thinking that this is one of the
greatest experiences of my life and one of the most
pleasant experiences and I express my own appreciation
and I think that of all the Delegates for the manner in
which you have treated us and the manner in which you
have conducted these meetings.
MR. TOBEY: Mr. Secretary, I would like to add to
that, that I have been very much impressed with your
remarkable patience and your genius in directing the
Conference, and on the selling end of it, I am with you
a hundred percent and I will do the best I can to carry
this thing forward to success.
MR. SPENCE: I suppose it is needless to say that
I am going to do everything possible to carry it out. It
has been a very pleasant experience and the association
with you, Mr. Secretary, has been very pleasant. And I
think it has been a most remarkable Conference. I have
never attended a conference before, but the good will and
the cooperative spirit here has been outstanding and it
certainly could not have been a more successful conference
for the purpose for which it was called.
MR. WOLCOTT: If Senator Wagner had stayed here he
wouldn't have gotten into the trouble he did out in
Chicago. He voted for Wallace.
MR. SPENCE: I was struck last night at the deep
interest the Senator and Jesse have in the Democratic
Party. They were pulling for Wallace as hard as I ever
pulled for a Democratic friend on a ticket.
Regraded Unclassified
4
-4-
MR. BROWN: Every Republican here.
MR. WOLCOTT: Too many Republicans rooting for him.
MR. SPENCE: So there is a good deal of democracy
in both these gentlemen.
MR. McDERMOTT: Mr. Secretary, I would like to say
a word. As one who has played around with psychological
warfare--this may seem a little insane and still it is
not, the great upset in Germany, and I wouldn't be at all
surprised if this Conference didn't contribute a good deal
to it. I can't conceive how any German could get the
reports that OWI has sent from here on the short wave
about what was being done here and how any German could
caimly look at a group of United Nations that could produce
seventeen billion, six hundred million dollars. They
couldn't but say, "My God, what are we up against?" and
quit. I think that undoubtedly something has been done
which has contributed to the upset over there.
H.M.JR: Well, certainly we didn't hurt it any. And
I gather from what I have learned that the overseas broad-
casting of OWI has just been pouring out, hasn't it?
MR. McDERMOTT: Pouring out and it has been excellent.
H.M.JR: Well I think we have had a demonstration,
also, on how to handle the press, which has been exceptionally
good, thanks to you and thanks to our people. I personally
haven't talked to a single newspaperman. Several have.
approached me and I have said, "I am sorry I can't talk,"
but not a single one has sent me a message that he wasn't
happy, he wasn't satisfied. I would say hello to them,
and so on. I have never seen a happier crowd and I think
it is a great compliment to Mr. McDermott.
MR. McDERMOTT: Thank you very much.
H.M.JR: Riding herd on them, he certainly did a good
job. I think the most important thing is that they are
going away sold.
Regraded Unclassifie
5
-5-
MR. SWEETSER: Mr. Secretary, I have followed
conferences since the Paris Peace Conference and I
have never seen a press better handled or happier.
The only thing that alarms me about it is that it
was so successful that I don't see how it is going
to be duplicated in other conference. It will be a
very high standard to follow up. You have had not
only a great deal of publicity here in the immediate
issuing of documents, but you have had a personal
explanation from Mr. White and the other experts which
has been something superb. We have a good deal of
comments back from the country and on the whole, they
are much more favorable than I had anticipated. There
is a good deal of confusion still as to the details
and lines of the Conference, but certainly the under-
standing, the sympathetic approaches, were very noticeable.
There is not as much opposition as I would have thought.
And I think that is going to pick up and improve as we
go along.
H.M.JR: Just thinking out loud, I wonder if this
American Delegation couldn't meet occasionally, again,
and discuss from time to time in Washington how we
would propose to sell this, because now that we have
got it, we have got groups like this New York State group,
headed by Mr. Potter who say they are going to make a
study and there will be other groups. His group is State?
MR. BROWN: Yes, but I am sure Potter caused himself
to be appointed Chairman of it. I have an appointment to
see him at ten 0' clock Monday.
H.M.JR: Would you mind before you leave for Chicago
to give me & ring in washington and give me a little
report on your conversation with Mr. Potter?
MR. BROWN: Yes, I will do that. I think unless you
want me to stay for your dinner, that I will go to Boston
this evening and go from Boston to New York.
H.M.JR: That's all right.
Regraded Unclassified
6
-6-
MR. VINSON: Stay with us and help us ring down
the curtain, Ned.
MR. BROWN: I don't care for ceremonies when the
work is over.
MR. TOBEY: No, but you're part of the entourage.
MR. WHITE: I think you will find it work to
digest that dinner.
MR. TOBEY: Mr. Secretary, he has done a good job in
this Conference. Why not have the suggestion put to the
President as we go along step by step and effect this
thing, that this be the permanent body to handle all
things, from now on?
MRS. KLOTZ: It is not a bad idea.
H.M.JR: Leaving the Chairman out, he could do worse.
You suit your own convenience about tonight.
MR. BROWN: It is needless to say I will do what I
can to sell it to the bankers of the country.
H.M.JR: Well, I think, Ned--I was very frank with
you when I invited you to come in, and I want to count
on you to sell it to the bankers, because they seem to
be the only people who right now are vociferous about
this thing.
MR. TOBEY: And Bob Taft.
H.M.JR: I will leave Taft to you! He is your
personal meat. I think you could take him apart and
put him together again so you wouldn't recognize what
he looks like.
But if you would just give me a ring after you
have been with Potter if you want to do it openly from
Potter's office, any way you want; because I know Potter.
Unclassified
7
-7-
MR. BROWN: We have an office in New York.
H.M.JR: Then the question is, you see after our
people get rested up, I mean, how much can they help
and all the rest of it. But I don't think it should be
just up to the Treasury to try to have to merchandise
this.
MR. SWEETSER: Mr. Secretary, I was going to make
a suggestion something along the lines of what you have
just put forward but perhaps on a lower level; namely,
general question of the press should meet fairly regularly,
because I think you are going to get questions all the
time--publications, documents, speeches, meetings. I
am sure from our experience in OWI that we are going to
get them, and there ought to be some way of centralizing
that. I think the first thing we ought to do is get out
all the official documents, because there is going to be
a tremendous demand for them and everybody is going to
want to have the text. I was talking with Frank Coe about
that the other day. He says he thinks he can get them
out very shortly so that we will have a clean document
to give wide distribution to. Then I think we ought to
have a popular pamphlet, a very simple pamphlet, which
you can put around in fairly large numbers. And I think
the United Nations Foreign Office will try and do something
of that sort, but that would, of course, have to be checked
and worked out with the experts here.
H.M.JR: Is there a United Nations Foreign Office?
MR. SWEETSER: Yes, sir, there is. That is located
in New York. It is composed of nineteen of the principal
United Nations, and they put out a similar pamphlet on the
Food Conference and also on UNRA--short popular pamphlets.
Then we are going to be pressed all the time for
experts. One of our problems at OWI is handling this
request, the request that we get people who can go out
and talk on specific and technical subjects; and unless
you have some way of meeting that and canalizing it, it is
Regraded Unclassified
8
-8-
apt to get very dangerously dispersed.
H.M.JR: If Mr. McDermott and you and Fred Smith
would form yourselves into a committee to work this
thing out--
MR. SWEETSER: What would you think of Oscar Cox
and Coe?
H.M.JR: Oscar Cox in Washington is such a busy
fellow that he doesn't get much time. I think Frank
Coe would be all right. Of course, White should be
part and parcel of it. I don't think you could keep
him out if you tried. As I say, you are talking now
about information. Smith and Sweetser and McDermott
would form a committee of three and talk it over and
decide how to organize the campaign.
MR. SMITH: One other matter is the money. Who is
going to pay? Should this body make a motion that money
be appropriated from some place to do it, the printing
of all these things?
MR. WHITE: The printing is done. But I do think
that it is necessary to have paid staff of whatever that
little committee of yours decides. The money certainly
can't come from public sources, but there are private
organizations who, I think, could furnish enough funds
to carry on. But I think it needs a permanent status.
H.M.JR: People like possibly Laura Spellman, or the
Rockefeller Foundation or Carnegie Peace Foundation, I
know the Carnegie people have gotten a tremendous income
and they haven't been able to spend it for the last
couple of years. They just haven't found things to
spend it on.
MR. SWEETSER: Mr. Secretary, I don't think it is
going to take money so much as thinking and planning
and coordinating. The documents will be published by
Regraded Unclassified
9
-9-
the Conference itself, I take it. We worked yesterday
with this general statement of Frank Coe's. Well that
is a Conference document. That would go out and be
available. You would have quantities of that which you
could use. If there is a general pamphlet put out
by the United Nations Foreign Office, that also would
be carried on their account. But what we will need is
some little group who can meet from time to time and see
what the questions are that are developing, what opportunities
are opening up, what meetings are coming along and arranging
to get experts or get articles, which could be done without
great expense.
MR. VINSON: And the content of the popular document
which might be called by us a Primer, is a very important
thing, because it should be free from the technical
discussions and just simply hit the high spots of some
or many of the major items, and in non-legalistic
language or non-technical language.
MR. WOLCOTT: I might suggest that perhaps the way
that could be handled is for Senator Wagner to address
a letter to you and in your reply to Senator Wagner you
can develop this Primer and have it published as a
Senate document.
H.M.JR: That is a good idea.
MR. VINSON: There might be much in that. Senator
Tobey made a suggestion a number of daysago, Mr. Secretary,
that I think is a very good one, and that is, after we have
a couple of days' rest in Washington and the group gets
back to Washington, to have occasional meetings in which
the work is reviewed, sort of refresher course, and later
it might be broadened to bring members of the House and
Senate who are not--
H.M.JR: Would it be a proper place to call a meeting
at nine o'clock at night in Washington at the Troika?
Would that make you all feel at home?
Regraded Unclassifie
10
-10-
MR. WOLCOTT: The Balalaika.
MR. VINSON: I wonder whether that is the proper
hour or place, but I yield to the Secretary.
MR. WOLCOTT: I think it should be a little later
at the Balalaika.
H.M.JR: I don't think you people can function
unless there is a Moon Room or a Hemicyle or a Cave
or something, SO I think we will have to have these
meetings a little later at the Balalaika.
If you will accept my amendment, Judge, as to the
location and the time to give it the proper atmosphere--
MR. VINSON: If it is the same atmosphere that
we have had here, both that which we have breathed quite
some time and the atmosphere of the Conference, I accept
the amendment, because I have been working all my life
and I say seriously that I don't believe that any more
hard work, and any better results with a complex subject
matter,
was ever had, or produced, by the same number
of people in the same length of time, particularly if
you had experience in drafting legislation. It has been
a remarkable job, Mr. Secretary.
H.M.JR: I am very happy at the remark which Mr. Brown
volunteered when he said he was going to take it on himself
to sell the American bankers.
MR. BROWN: I' didn't give any guarantee.
H.M.JR: But I am quoting you directly, am I not,
that you are taking it on? And I think that would be
very useful. And then is it understood that Mr. McDermott
and Mr. Sweetser and Mr. Smith will meet and confer as to
how to publicize this thing? You have time, McDermott,
to continue?
Regraded Unclassifie
11
-11-
MR. McDERMOTT: I am afraid not, sir. I will be
glad to work with these gentlemen as a committee.
H.M.JR: As a committee?
MR. McDERMOTT: Oh, yes, I am glad to.
H.M.JR: Anybody have any suggestions?
White?
MR. WHITE: No, I think that is the way to handle it.
MR. LUXFORD: Only one suggestion and everybody already
agrees with it and that is, every one here has to work just
as hard as they have been working now to sell it. Our
job isn't done until it is sold.
MR. BERNSTEIN: I think that perhaps after a while
we should begin systematically to go through the list
of organizations that might be enlisted in support of
what we have done. We could do a good deal that way to
rouse public interest and to get the general approval
of the public for what we have done.
MR. TOBEY: Time Magazine came out this last week
with a full column or column and a half about Bob Taft's
attack. They always take the negative side but nothing
has come in on the positive side. That is what I don't
like about pressure politics.
Mr. Chairman, as a humble member- of this Conference,
I want to pay tribute to something that has impressed me
tremendously, and that is the genius of these two men,
Luxford and Bernstein. I have watched them in action
and it is wonderful the work they have done here and I
want to compliment them and I appreciate all they have
done.
H.M.JR: Miss Newcomer, you are going to take on
the women of America?
Regraded Unclassifie
12
-12-
MISS NEWCOMER: I will try to. I have worked with
a good many of those national organizations. I think
something can be done. I don't know how far. I will
do what I can.
H.M.JR: Funds will be made available. If you want
somebody assigned to you full time or something like that
we think that might be arranged.
MISS NEWCOMER: I will see what can be done.
H.M.JR: If you want somebody, I think that could
be arranged.
MR. TOBEY: Wouldn't the General Federation of Women's
Clubs be a very potent organization?
MISS NENCOMER: Do you know Mrs. Dickinson?
MR. TOBEY: She is a New Hampshire woman. I would
be delighted to meet with you in Washington. She is in
Washington. If we could sit down together sometime,
perhaps.
MR. SPENCE: When the matter is submitted to Congress,
the hearings could be printed from day to day and be
distributed. I think that might have good effect.
H.M.JR: Speaking of continuing our conversations
in Washington, I think the New Hampshire air has contributed
much to the clear thinking of everybody.
MR. VINSON: I really think that is true.
H.M.JR: What do you mean you think that's true! I
was very serious. You thought I was kidding? Believe
me, if the United States Government had a summer capital
I think it would increase the work by a hundred percent.
MR. SWEETSER: Mr. Secretary, do you see any news
events that could keep the Conference alive as a news story?
Regraded Unclassifie
13
-13-
For instance, what about sending this to Congress?
When do you see that happening? What I am afraid of,
frankly, is it looks as though the project is going to
rather fall low for quite a long period of months, that
there won't be any news or any events in connection
with it, and if We could see things of that sort, see
a communication of Congress, and then the hearings and
other things of that nature, there would be news coming
all the time, apart from the explanations and propaganda.
H.M.JR: Well, we have got Members of Congress here.
They would know much better than I, the proper time, but
from what Mr. Wolcott said the other day, that Congress
wasn't going to settle any issues for the two Presidential
candidates, I question whether this very important one
should go up until after Election.
MR. WHITE: Might this not be treated as a non-partisan
issue?
MR. WOLCOTT: In Congress? You have been realistic
up to the present moment, Harry.
MR. WHITE: I thought we would give the Republicans
a break, otherwise it will be treated as a Democratic
issue.
H.M.JR: The Russian Delegation is on the golf tee,
wherever that is, waiting for us.
Again, my most heartfelt thanks for everything each
and every one of you has done. I will be seeing you
during the day, but I am going to leave early tomorrow
morning.
Regraded Unclassifie
13-A
July 22, 1944
7:00 p.m.
PRESENT: Mr. Stepanov
N. F. Chechulin
A. A. Arutiunian
(Mr. Stepanov)
INTERPRETER: Mr. Stepanov would like to tell you that
he has the answer from Mr. Molotov, and the answer is that he
is happy to agree to your proposition.
HM JR: Yes.
(Mr. Stepanov)
INTERPRETER: Mr. Molotov says that we will agree to increase
our quota.
HM Jr: To how much?
(Mr. Stepanov)
INTERPRETER: To $1,200,000,000.
HM Jr: Mr. Molotov agrees to that?
(Mr. Stepanov)
INTERPRETER: He said that he agrees with Mr. Morgenthau.
HM Jr:
Well, you tell Mr. Mobotov that I want to thank
him from the bottom of my heart.
Now, I don't know what we will do, but I will have to send
for Mr. Vinson and the others right away, and we will have to get
busy.
(Mr. Stepanov)
INTERPRETER: Yes. Mr. Stepanov says that is all right.
HM Jr: Just so I understand - would you mind saying it once
more?
(Mr. Stepanov)
INTERPRETER: Mr. Molotov gives us the right to agree to a
quota of $1,200,000,000 in the Bank. He said that he agrees
with Mr. Morgenthau, and I should like to mention this, too.
Mr. Molotov says that he agrees to the size of the quota because
Mr. Morgenthau asked the Soviet Delegation to do it.
HM Jr: I want you to say this to Mr. Molotov. This confirms
the long time respect and confidence that I have in the Union
of Soviet and Socialist Republics.
Regraded Unclassified
13-B
- 2 -
(Mr. Stepanov)
INTERPRETER: Mr. Stepanov says that he will telegraph what
you told him just as it was said by yourself.
HM Jr: Well, this makes me very, very happy. The Conference
was almost a success and now it is a complete success.
(Mr. Stepanov)
INTERPRETER: Mr. Stepanov says to tell you that Mr. Molotov
wanted to raise the quota because you asked them to and because
of his high regard for you.
HM Jr: You send back my warmest appreciation to Mr.
Molotov. I will get hold of Judge Vinson and will you be avail-
able the next half hour or so?
INTERPRETER: We will be in Room 317.
Regraded Unclassified
14
Charge to the account of
s
CLASS OF SERVICE DESIRED
DOMESTIC
CABLE
TTER
WESTERN
1211-B
CHECK
TRAM
ORDINARY
URGENT
RATE
SERIAL
DEFERRED
ACCOUNTING INFORMATION
OVERNIGHT
NIGHT
TELEGRAM
LETTER
SPECIAL
SHIP
SERVICE
RADIOGRAM
Patrone should check class of service
UNION
TIME FILED
desired: otherwise the - will be
transmitted - * talegram of
R. B. WHITE
NEWCOMB CARLTON
J. c. WILLEVER
ordinary exisgram.
PRESIDENT
CHAIRMAN OF THE BOARD
FIRST VICE-PRESIDENT
Send the following telegram, subject to the terms on back hereof, which are hereby agreed to
July 22, 1944
Honorable Henry Morgenthau, Jr.
Bretton Woods, New Hampshire
As President of the United Nations Monetary and Financial
Conference at Bretton Woods, please convey to the representatives
of the forty-four nations gathered there my heartiest congratulations
on the successful completion of their difficult task. They have
prepared two further foundation stones for the structure of
lasting peace and security. They have shown that the people
of the United Nations can work together to plan the peace
as well as fight the war. As the delegates and technicians
depart for their various countries, express to them my
appreciation for the efforts they have made in coming here.
Franklin D. Roosevelt
Regraded Unclassified
7/22/44. 15
To:
The President
From: The Secretary of the Treasury
Thank you very much for your generous message on the work of the
Conference. I read it at the final plenary session and it was received
with a great ovation.
You will also be pleased with the message I received from the
Soviet Government about an hour before the plenary session. The
Soviet Delegation had agreed to subscribe $900 million to the capital
stock of the proposed Bank for Reconstruction and Development. We had tried
to get them to increase their subscription to $1200 million, but they stated
that they could not go above $900 million, in view of the tragic devastation
of their country and the great burden of reconstruction, to which all of the
delegations unanimously agreed.
I privately personally A made a special appeal to them to increase their subscription
to $1200 million. This request was made several days ago and was trans-
mitted to Moscow. In reply I received a personal message from
Molotov that the Soviet Union agrees to raise its subscription in
response to our request, notwithstanding the fact that the Conference had
agreed on $900 million for their subscription, thereby demonstrating
their desire to collaborate fully with the United States.
asacurist
Dean Acheson has just said that this de unbelievable, and that he
regards it as a great diplomatic victory for the United States and as a
matter of great political significance. The news was received at the plenary
session just ended with great enthusiasm.
Regraded Unclassified
16
-2 -
You may think it helpful to make some reference to the significance x of
this voluntary step as important evidence of the desire of the Soviet
Union to collaborate wholeheartedly with the United States in a
program for the maintenance of world peace and prosperity.
Regraded Unclassified
17
UNITED NATIONS MONETARY AND FINANCIAL CONFERENCE
CLOSING PLENARY SESSION
July 22, 1944 - 9:45 p.m.
1. Address by the Representative of the United Kingdom,
and motion to accept the Final Act.
2. Seconding addresses by the Representatives of:
(1) Union of Soviet Socialist Republics
(2) Canada
(3) France
(Put the motion to a vote.)
3. Resolution of thanks by the Representative of Brazil.
4. Seconding of the resolution by the Representativesof:
(1) Norway
(2) Cuba
(Put the motion to a vote.)
5. Farewell Address by the President of the Conference.
6. Star Spangled Banner.
(The Chairmen of the Delegations, or their alternates, may
sign the Final Act in Room B, following the close of the
Plenary Session, or from 10 a.m. to 12 noon, on Sunday, in
the same Room.)
Regraded Unclassified
17
UNITED NATIONS MONETARY AND FINANCIAL CONFERENCE
CLOSING PLENARY SESSION
July 22, 1944 - 9:45 p.m.
1. Address by the Representative of the United Kingdom,
and motion to accept the Final Act.
2. Seconding addresses by the Representatives of:
(1) Union of Soviet Socialist Republics
(2) Canada
(3) France
(Put the motion to a vote.)
3. Resolution of thanks by the Representative of Brazil.
4. Seconding of the resolution by the Representativesof:
(1) Norway
(2) Cuba
(Put the motion to a vote.)
5. Farewell Address by the President of the Conference.
6. Star Spangled Banner.
(The Chairmen of the Delegations, or their alternates, may
sign the Final Act in Room B, following the close of the
Plenary Session, or from 10 a.m. to 12 noon, on Sunday, in
the same Room.)
Regraded Unclassified
7/22/44
18
DRAFTS OF SECRETARY'S ADDRESS AT
CLOSING SESSION OF MONETARY CONFERENCE
BARTH DRAFT
19
7/22/44-
I am gratified to announce that the conference at
Bretton Woods has successfully completed the task before it.
It was, as we knew when we began, a difficult task,
involving abstruse and complex technical problems. We came here
to devise an instrumentality which would take the place of the
economic evils - competitive currency devaluation and artificial
barriers to trade - which preceded and indeed led to the present
war. The old order has been ended.
The precise significance of an international monetary
and financial agreement may seem somewhat mysterious to the
general public. Yet at the heart of it lie the most elementary
bread and butter realities of daily life. What we have done here
in Bretton Woods is to devise a mechanism by which men and women
everywhere can exchange, on a fair and stable basis, the goods
which they produce through their labor. And we have taken the
initial steps through which the nations of the world will
Regraded Unclassified
20
- 2 -
be able to help one another in economic development to their
mutual advantage and for the enrichment of all.
From the beginning, despite the difficulties, it was
certain that we were to succeed. For we could not afford to fail.
And the delegates who came to this meeting from forty-four nations
in all quarters of the glove wère determined that understanding
and agreement were to be reached. They may have differed as to
method; but they were of one mind as to purpose. When one of the
delegation chiefs (the head of the Russian delegation, Mr. Stepanov,)
was asked one day what would happen if the conference were to conclude
without an agreement, he answered in this way: "I cannot conceive
of this conference not coming to a conclusion. I cannot conceive
of civilized nations going into the post-war world without reaching
complète and full agreement on vital economic and monetary matters."
Regraded Unclassified
21
- 3 -
We now have the substance of that agreement. I believe it
will be the more firm and the more enduring by reason of the very
difficulties which had to be overcome. You all know that there
were differences of opinion among us when the conference began.
That is why the conference was held. President Roosevelt did not
invite the representatives of 44 nations to Bretton Woods merely
to have them raise their hands in approval of some cut-and-dried
formula which had been settled in advance. On the contrary, he
asked them here precisely because differences of opinion -
differences as to method, which we knew we could thresh out and
resolve through patience, through tolerance and through free,
democratic discussion.
We embarked here upon an enterprise without precedent
in history - the establishment of a firm and dynamic foundation
for economic intercourse among the world's peoples. To succeed
Regraded Unclassified
22
- 4 -
in so momentous an endeavor, it has been necessary, of course, to
bring varied points of view into harmony. New patterns cannot
new
be cut from old dies. We have had to mold a die to meet tomorrow's
>
needs.
It is a notable fact, I think, that even the most technical
arguments of this meeting were carried on in the open air. There
has been no hush-hush here at any stage. The members of the press
have had full freedom and have ably reported every development to
you. Both in candor to the public and in the candor of discussion
among the delegates, this conference has provided a magnificent
demonstration of the democratic process. I hope and believe that
it has set a pattern for future international meetings.
Because we have faced our differences of opinion frankly,
and
have reached an agreement which is rooted in genuine understanding.
None of the nations represented here has altogether had its own way.
Regraded Unclassified
23
- 5 -
We have had to yield to one another not in respect to principles
or essentials but in respect to methods and procedural details.
The fact that we have done so, and that we have done it in a
continuing spirit of good will and mutual trust, is, I believe,
one of the most hopeful and heartening portents of our times.
Here is a sign blazoned upon the horizon, written large upon the
threshold of the future - a sign for men in battle, for men at
work in mines and mills and in the fields, and a sign for women
whose hearts have been burdened and anxious lest the cancer of
war assail yet another generation - a sign that the peoples of
the earth are learning how to join their hands and work in unity.
There is a curious notion that nationalism and internationalism
are conflicting philosophies - that somehow or other men of different
nations cannot work together without sacrificing the interests of
Regraded Unclassified
24
- 6 -
their particular nations. There has been talk of this sort -
and from people who ought to know better - concerning the
internationalism of the undertaking just completed at Bretton Woods.
I am perfectly certain that no delegation to this conference has
lost sight for a moment of the particular national interests it
was sent here to represent. The American delegation which I have
had the honor of leading, has at all times been conscious of its
primary obligation - the protection of American interests. And
the other representatives here have been,
THIS
you
no
less
loyal or devoted to the welfare of their own people.
Yet none of us has found any incompatability between devotion
to our own countries and joint action. Indeed, we have found on
the contrary that the only genuine safeguard for our national
interests lay in international cooperation. We have come to
recognize that the wisest and most effective form of nationalism
Regraded Unclassified
25
- 7 -
0
is internationalism - that is to say united effort for the attain-
ment of common goals. This has been the great lesson taught
by the war and is, I think, the great lesson of contemporary life -
that all the peoples of the earth are inseparably linked to one
another by a deep, underlying community of purpose. This community
of purpose is no less real and vital in peace than in war, and
cooperation is no less essential to its fulfillment.
To seek the achievement of our aims separately through the
planless, senseless rivalry that divided us in the past or through
4
the outright economic aggression which turned neighbors into
enemies would be again to invite ruin upon us all. Worse, it
would be once more to start our steps irretraceably down the
steep, disastrous road to war. That sort of nationalism belongs
to an era that is dead. Today the only enlightened form of
Regraded Unclassified
26
- 8 -
national self-interest lies in international accord. At Bretton
Woods we have taken the first step toward putting this lesson into
practice.
I take it as an axiom that after this war is ended no people
and therefore no government of the people - will again tolerate
prolonged or widespread unemployment. A revival of international
trade is indispensable if full employment is to be achieved in
a peaceful world and with standards of living which will permit the
realization of men's reasonable hopes. What are the fundamental
conditions under which commerce among the nations can once more
flourish? They are not too difficult to understand. Let me try to
summarize them for you very simply. First, there must be a
reasonably flexible standard of international exchange to
which all countries can adhere without sacrificing the freedom
of action necessary to meet their internal economic problems.
Regraded Unclassified
27
- 9 -
This is the sole alternative to the desperate tactics of currency
depreciation, excessive tariff restrictions, barter deals and
sterile exchange controls by which governments vainly sought to
maintain employment and living standards in the past and which
culminated in the tragic worldwide depression of 1929. The
international fund agreed upon at Bretton Woods meets this first
condition.
Second, there must be long-term financial aid at reasonable
rates to those countries whose industry and agriculture have been
destroyed either by the ruthless torch of an invader or by the
heroic scorched earth policy of their defenders.
1
And there must
be aid as well to promote industry and to raise living standards
among those peoples whose economic potentialities have not yet
been developed. Unless these countries can be lifted to their
Regraded Unclassified
28
- 12 -
The delegates at Bretton Woods have done their portion of
the job. They have sat down together and have talked as friends
and have perfected a plan to cope with the international monetary
and financial problems which all their countries face in common.
The plan upon which they have agreed must now be submitted, as
you know, to the legislatures of the 44 participating nations.
These, as your representatives, will pass upon what has been
accomplished here. It is of no small importance to every one of
you. It concerns in the last analysis the kind of job in which you
are to work and the amount of money you are to find in your weekly
pay envelope. More important still, it concerns the kind of world
in which your children are to grow to their maturity. It concerns
the opportunities which will await millions of young men when at
last they can take off their uniforms and come home and roll up
their sleeves and go to work.
Regraded Unclassified
29
- 13 -
This monetary agreement is but one step, of course, in the
broad program of international action necessary for the shaping
of a free future. But it is an indispensable first step and
it is also a vital test of our intentions. We are at a
crossroads, and we must go one way or the other. The conference
at Bretton Woods has placed a signpost there - a signpost pointing
down a highway broad enough for all men to walk in step and side
by side. If they will set out together, there is nothing on earth
that need stop them.
Regraded Unclassified
30
Q-Barth
I am deeply gratified to announce that the Bretton
Woods Conference has completed the task set before it.
The delegates of the forty-four nations who assembled
here on July 1, have perfected and agreed upon the program,
conceived by technicians nearly two years ago, to help
provide economic security and prosperity for the future.
A long forward stride has been taken toward lasting world
peace. We have shown here that international cooperation
in the establishment of an orderly, secure post-war world,
is no longer just a hope.
During the nineteen days of this conference, in which
narrow nationalistic interests have given way to a plan for
the common good, we have proved that our nations can work
together to establish a sound peace, just as we work together
today to win the war. Our forty-four nations have been able
to reach agreement upon one of the most ambitious and highly
technical programs ever attempted on an international scale.
Warnings were sounded often during past weeks that the
Bretton Woods Conference would fail because its program was
too ambitious, its agenda too inclusive, its goal unattain-
able. The very thing which critics thought would make us
fail -- human nature -- has made us succeed. All of us came
to this conference not simply as diplomatic representatives
of our various governments, but as human beings fully aware
of the
Q-Barth
30
I am deeply gratified to announce that the Bretton
Woods Conference has completed the task set before it.
The delegates of the forty-four nations who assembled
here on July 1, have perfected and agreed upon the program,
conceived by technicians nearly two years ago, to help
provide economic security and prosperity for the future.
A long forward stride has been taken toward lasting world
peace. We have shown here that international cooperation
in the establishment of an orderly, secure post-war world,
is no longer just a hope.
During the nineteen days of this conference, in which
narrow nationalistic interests have given way to a plan for
the common good, we have proved that our nations can work
together to establish a sound peace, just as we work together
today to win the war. Our forty-four nations have been able
to reach agreement upon one of the most ambitious and highly
technical programs ever attempted on an international scale.
Warnings were sounded often during past weeks that the
Bretton Woods Conference would fail because its program was
too ambitious, its agenda too inclusive, its goal unattain-
able. The very thing which critics thought would make us
fail -- human nature -- has made us succeed. All of us came
to this conference not simply as diplomatic representatives
of our various governments, but as human beings fully aware
of the
Regraded Unclassified
31
- 2 -
of the tragic costs of the war. Human beings in whose
memories there remains a fresh image of the suffering
which came with the world-wide depression -- a depression
which cost the United States alone, in the two years after
1939, at least one hundred billion dollars; and cost the
world a fabulous figure which never will be known. We
came here with deeply etched memories of the economic
aggression which reached its final fruition in this most
costly war of all history. We came here knowing in our
hearts that the world has been desperately maladjusted and
sick. We came with the conviction that some of the causes
of this sickness could and must be eliminated. We came
determined to spend, in building our future, some fraction
of the effort that we have used in fighting the war.
During this conference, we have established many
precedents. In this we have followed the course set by
our military leaders, who, early in the war, found that
they could not achieve vital objectives if bound by the
old rules and the old procedures. This, therefore, has not
been a conference of diplomats in the old-fashioned sense,
with sharp bargaining, smoke-filled rooms, and endless wait-
ing upon the niceties of diplomatic procedure. The delegates,
the
Regraded Unclassified
32
- 3 -
technical experts, the secretariat, representatives of the
press -- all have remained one large, almost indistinguish-
able democratic group, dedicated to hard work and long hours.
This has been truly a wartime conference.
And because the problems upon which we have been working
affect every man and woman on the face of the earth, there
has been no secrecy in this conference. Every possible scrap
of information which might be of interest has been made
available to the informational channels of the world. The
representatives of news and radio systems have been part
and parcel of this conference. Documents which ordinarily
are held secret were turned over to them the day the conference
started, and key men have kept press representatives abreast
of proceedings.
These representatives have had an opportunity to know
as much about the progress of the conference as any of the
delegates. Every move we have made has been reflected in the
press and over the radio. Information has been so full and
so extensive that Reich Minister Funk felt called upon only
a few days ago to assure the German people that we were not
taking up matters at Bretton Woods pertaining to their internal
economy. He also said that Germany would never submit to
discussing
Regraded Inclassifiel
33
- 4 -
discussing its economic problems with the rest of the world.
This is very revealing. It is an indication of the stubborn,
narrow-visioned mentality in which was born the idea of the
world war which we now are fighting.
A few moments ago the representatives of our forty-
four nations voted to accept the document which represents
the United Nations Financial and Economic Agreement. This
agreement includes the establishment of a World Fund to be
used for the purpose of stabilizing currencies, and 8. Bank
for Reconstruction and Development by means of which our
forty-four nations will stand shoulder to shoulder in
financing the reconstruction of the war-torn world and in
taking the risks involved.
The Fund and Bank, with offices situated in the United
States, will be competently managed by a Board of Directors
representing the participating nations. Policies will be
determined by governments whose voting power reflects their
financial interests in the undertaking.
The operations of both the Bank and the Fund will be
clearly defined by regulations adopted at this conference.
These institutions will have the power to prevent infractions
upon
Regraded Unclassifie
34
- 5 -
upon the common good; but no sovereign power which specifically
and rightfully belongs to a nation's own legislative body is
to be usurped. The use of the Bank and the Fund by any
nation will be contingent upon its willingness not to indulge
in dangerous currency and economic practices.
The Fund and the Bank are two parts of a single program.
The purpose of the Monetary Fund and the Bank, working to-
gether, is first, to stabilize currencies so that there may
be as full and free an exchange of goods and services between
countries at as high a level as possible; and second, to pro-
vide a 44-country guarantee for private loans and direct
loans, to develop the production and resources of the peace-
loving peoples. The simplest possible explanation of these
two institutions is this: the Fund is an emergency agency
set up to counteract the damaging effects in the monetary
field of uncontrollable and temporary misfortunes; the Bank
is a long-range lending agency designed to aid in world
reconstruction and development, thereby improving world
productivity, standards of living and labor conditions.
The Monetary Fund is not nearly as complicated a struc-
ture as the millions of words which have been written about
it might lead the lay observer to believe. The appearance
of complexity arises out of the technical provisions necessary
to make it a practical, working institution.
The forty-four nations who have signed the Bretton Woods
Agreement will invest a total of eight billion
dollars in
gold
Regraded Unclassified
35
- 6 -
gold and currency, in the Monetary Fund. The gold, of course,
already has an established international value. Much the
same will be true of the currencies in the Fund. Fluctua-
tions of currencies involved in the Fund will be compensated
for. Nations will make up any deflation in the value of
their currency, as measured in terms of gold, by the addition
of more currency or more gold. Since gold is the measure of
this Fund--since it is the yardstick used in all the Fund's
transactions--then it might fairly be said that the currency
of participating nations will have a constant gold value, as
long as the nations remain members of the Fund. Thus, the
currencies involved in the Fund will not ge "good" and "bad".
So long as any nation lives up to the requirements of the
Fund--and there are teeth to enforce this--its currency will
have a consistent, measurable value in gold.
The chief function of the Fund is to fortify a partici-
pating nation's currency when it has suffered a temporary
economic disturbance which might result in devaluation of
that nation's currency. For example, suppose drought came to
a great wheat-producing and exporting nation after huge in-
vestments were made to plant and nurture the wheat, to main-
tain and equip the farmers. If that nation were dependent on
its exports of wheat to get foreign exchange to buy imports
for its existence, it would be forced to depress and devalue
its currency unless some other form of assistance is available.
With the
Regraded Unclassified
36
- 7 -
With the Fund in operation, the nation, if in good standing,
could buy foreign currency with which to carry on inter-
national trade at exactly the same rate of exchange as
though no disturbance had occurred. The value of its currency
thus would be upheld until such a time as the country could
recover its equilibrium.
The Fund thus remedies one traditional cause of depression
and national bankruptcy. It does not, however, solve the
problem of reconstructing a war-torn world or reinstating
war-wrecked economic systems. This is the need served by
the Bank.
Upon foreign trade depends the economic health of all
countries. A nation cannot prosper within its own borders,
under ordinary circumstances, unless it can sell its goods
to other countries, and unless it can buy the material it
needs, at reasonable costs, from other countries. But foreign
trade cannot be developed without international investment--
particularly after the present war of destruction.
Many of the producing nations of the world have been
devastated, and cannot produce again unless goods and services
are made available to them to rebuild their plants and factories.
These devastated countries have insufficient money of their
own
Regraded Unclassified
37
- 8 -
own to purchase the goods and services 80 they must borrow
in order to get them. Who is to lend devastated countries
sufficient money to put them back on their feet? Can and will
traditional private investors supply this money in the magnitudes
required -- and on the extremely long-term basis that will
1.9
be necessary? Most trained observers believe private invest-
ment will not be able to reach the necessary levels without
some sort of governmental guarantee or assistance. It is
primarily for this purpose -- for the purpose of having the
United and Associated Nations underwrite private international
loans -- that the Bank is planned.
If no international bank were available, then it would
fall to two or three major governments to individually
guarantee these huge loans. This would disturb the invest-
ment market, and eventually would wreck any attempt at
balance of trade. It would throw the entire burden of risk
on these few creditor countries, chiefly upon the United States
of America. Under the plan for an International Bank which
has been agreed upon at this conference, the investments would
be guaranteed by all forty-four of our nations, and any risks
which might be taken would be divided among all of them.
Certainly something must be done to revitalize foreign
investments. During the past 20 or 30 years foreign invest-
ments by Americans have sometimes risen as high as a billion
and
Regraded Unclassified
38
- 9 -
and a half a year, but, of course, they are now at an
absolute standstill. Moreover, there has been practically
no capital movement during the past 5 to 8 years.
The billion and a half dollars invested by Americans
in other countries in a record year would, of course, fall
far short of meeting the requirements of our post-war
period. It would not be enough to materially aid in the
reconstruction of production facilities in Europe, nor would
it be enough to support the economy which will be necessary
to help keep our payrolls and the payrolls of other nations
at a satisfactory level.
Without ample foreign investment, the nations of the
world will have inadequate capital to reconstruct their
railways, their port facilities, and their power developments.
They will be unable to develop their industrial systems or
repair their damaged public utilities. They will be unable
to reemploy their demobilized armies and war production
workers. This could easily result in a slackening of world
production to such an extent that a depression more vast than
the last one would overtake us all.
There 1s another aspect to this situation: if ample
foreign investment is made available to these countries,
those nations now producing vast quantities of material for
war
Regraded Unclassified
39
- 10 -
war will be able to maintain high production levels and
full employment after the cessation of hostilities. The
United States is an outstanding example. With the collapse
of Germany, many of our manufacturers will face cancellations
of their contracts for guns, tanks, artillery, ships and
other war materials. On the other hand, Europe will need
large quantities of productive equipment -- railroads,
electrical equipment, machine tools and other industrial
equipment. If we have worked out in advance a satisfactory
arrangement for financing the manufacture and export of this
needed productive equipment, our factories and industries
can quickly change from war production to the production of
materials for reconstruction and development. This, of
course, is vital to the economy of the United States, which
is destined in the postwar world greatly to influence the
economy of all other nations.
I should like to point out also that war-time demands
have lead to our doubling -- and sometimes more than doubling --
our output of industrial equipment. If ample international
investment funds are available, this production can be kept
at a high level, since in many cases the industrial equip-
ment needed will be the same in peace as in war. A high
level
Regraded Unclassified
40
-11-
level of equipment exports immediately after the fighting
stops will make it possible for us to use much of our war
production capacity for export, greatly reducing the shock
of conversion, and giving our manufacturers and war workers
a longer period within which to shift to normal peace-time
production.
These are some of the purposes that the Bank for
Reconstruction and Development will serve. It will have a
capital of ten billion dollars of which 2 billion will be
immediately paid in by the participating countries, in
accordance with their agreed quotas. The United States, for
example, will have a minimum investment of six hundred
million dollars in the Bank, but will have a maximum
liability or guarantee of 2 billion dollars. Since there
will be a definite limitation upon the amount of the Bank's
assets which may be on loan at any one time, the Bank will
be prevented from lending more than one and one-half times
its paid-in capital. Should there be a default, it will be
shared by the forty-four nations participating in the Bank,
I should like to point out here that this Bank's
investments must, on the basis of past records, be con-
sidered sound.
Regraded Unclassified
41
- 12 -
During the pre-war years, when the economies of all nations
were depressed, when currencies were fluctuating or being
manipulated for competitive purposes, when international trust
and faith were at the lowest possible level, a record was
established for defaults in international investment. This
all-time record reached only 20 percent.
With the establishment of the Fund and the Bank, the
entire situation will be changed. Stabilized currency, the
outlawing of currency manipulation, and the restoration of
international confidence is likely to reduce defaults to a
fraction of this all-time record. Thus we have reason to
believe that the direct defaults will be well within reason.
Further, we must not overlook the fact that this Bank
has a much more significant purpose than merely the lending
of money and the collecting of loans. It must not be for-
gotten that loans made by this Bank will be used solely for
the purpose of increasing production and improving the
economic health of nations. In one sense, these loans
will be made to increase world markets, to create new
customers. As a specific example, we might cite the case of
China. In the 10 years following 1927, China purchased an
average of 1500 American automobiles each year. 1500 auto-
mobiles for more than 450 million people! If China were to
borrow
Regraded Unclassified
42
- 13 -
borrow money from the Bank for the purpose of improving
roads, improving the possibilities for automotive trans-
portation, and if through improved productive capacity China
were to become a wealthier nation, it stands to reason that
the consumption of automobiles would skyrocket. All the
industries in America dependent upon aut omobile production
would likewise profit, and in time service industries in
China would spring up as a result of increased use of auto-
mobiles, creating new employment and increased national
income. It might be said that the Bank, by thus concentrat-
ing on productive loans, can act to accelerate domestic
economies all over the world.
A few days ago, when word somehow mistakenly got around
that the conference was stalled by disagreements -- a myth,
I might say, which has plagued this conference from the day
it started -- Mr. Stepanov, the head of the Russian delegation,
was asked what would happen if we came to no agreement. He
replied: "I cannot conceive of this conference not coming to
a conclusion. I cannot conceive of civilized nations going
into the post-war world without reaching complete and full
agreement on vital economic and monetary matters."
We now have that agreement. We, as delegates repre-
senting our various countries, have done all we can do toward
taking
Regraded Unclassified
43
- 14 -
taking into the post-war world a concrete plan. The rest
of the task lies with the legislative branches of our
governments. The question as to whether or not we build
our post-war economic security on this sound foundation
therefore rests squarely with the people, who now must
answer for themselves this question: Shall we plan to avoid
the problems which lead to economic depression and war, or
must we, through lack of constructive action, return to the
old way of drifting, hoping against hope that collisions
and wrecks will somehow be avoided?
Regraded Unclassified
Smoth
# 1 Draft
44
I am gratified to announce that the conference at
Bretton Woods has successfully completed the task before
it.
It was, as we knew when we began, a difficult task,
involving abstruse and complex technical problems. The
precise significance of an international monetary and
financial agreement may seem somewhat mysterious to the
general public. Yet at the heart of it lie the most elementary
bread and butter realities of daily life. What we have done
here in Bretton Woods is to devise a mechanism by which men
and women everywhere can exchange, on a fair and stable basis,
the goods which they produce through their labor. And we
have taken steps through which the nations of the world will
be able to help one another in their economic development to
their mutual advantage and for the enrichment of all.
From the beginning, despite all the difficulties, it was
certain that we were to succeed. For we could not afford to
fail. And the delegates who came to this meeting from forty-
four nations in all quarters of the globe were determined
that understanding and agreement were to be reached. They
may have differed as to method; but they were of one mind as
to purpose. When the head of the Russian delegation,
?
Mr. Stepanov, was asked one day what would happen if the
conference were to conclude without an agreement, he
answered in this way: "I cannot conceive of this conference
Regraded Unclassified
45
- 2 -
not coming to a conclusion. I cannot conceive of civilized
nations going into the postwar world without reaching complete
and full agreement on vital economic and monetary matters."
We now have that agreement. I believe it will be the
more firm and the more enduring by reason of the very
difficulties which had to be overcome. You all know that
there were differences of opinion among us when the conference
began. That is why the conference was held. President
Roosevelt did not invite the representatives of 44 nations
to Bretton Woods merely to have them raise their hands in
approval of some cut-and-dried formula which had been settled
in advance. On the contrary, he asked them here precisely
because disagreements existed -- disagreements as to method,
which we knew we could thresh out and resolve through patience,
through tolerance and through free, democratic discussion.
/
It was not unnatural that these disagreements should have
been emphasized in the news reports of the conference which
have reached you. It is a notable fact, I think, that these
disagreements were openly acknowledged. There has been no
hush-hush at any stage of this conference. The members of the
press have had full freedom here and have ably reported every
development to you. What we have achieved is an open covenant
openly arrived at. Both in candor to the public and in the
candor of discussion among the delegates, this conference has
provided a magnificent demonstration of the democratic process.
I hope and believe that it has set a pattern for future inter-
national meetings.
Regraded Unclassified
46
- 3 -
Because we have faced our differences of opinion frankly,
we have reached an agreement which is rooted in genuine
understanding. None of the nations represented here has
altogether had its own way. We have had to yield to one
another not in respect to principles or essentials but in
respect to methods and procedural details. The fact that
we have done so, and that we have done it in a continuing
spirit of good will and mutual trust, is, I believe, one of
the most hopeful and heartening portents of our times. Here
is a sign blazoned upon the horizon, written large upon the
threshold of the future -- a sign for men in battle, for men
at work in mines and mills and in the fields, and a sign
for women whose hearts have been burdened and anxious lest
the cancer of war assail yet another generation -- a sign
that the peoples of the earth are learning how to join their
hands and work in unity.
There is a curious notion that nationalism and inter-
nationalism are conflicting philosophies -- that somehow
or other men of different nations cannot work together without
sacrificing the interests of their particular nations. There
has been talk of this sort -- and from people who ought to
know better -- concerning the internationalism of the
undertaking just completed at Bretton Woods. I am perfectly
certain that no delegation to this conference has lost
sight for a moment of the particular national interests
it was sent here to represent. The American delegation
Regraded Unclassified
47
- 4 -
which I have had the honor of leading has at all times been
conscious of its primary obligation -- to protect the welfare
of American businessmen and workers and farmers. And the
other representatives here have been, I assure you, no less
loyal or devoted to the welfare of their own people.
But all of us have been aware that our national interests
could best be safeguarded by international action. We have
been animated by a conviction that the wisest and most
7
effective form of nationalism is internationalism. This
is the great lesson of contemporary life. To seek the
achievement of our aims through the senseless, planless
rivalry that divided us in the twenties or through the
0
outright economic aggression which turned neighbors into
enemies during the thirties would be to invite ruin upon us
all. Worse, it would be to start our steps irretraceably
down the steep, disastrous road to war. That is the
nationalism of cavemen. It 1s a nationalism that leads
only to the grave. If it is to be avoided, nationalism must
take the more enlightened form of international cooperation.
Ben Franklin, the first great American internationalist,
stated this truth simply and succinctly many years ago:
"If we do not all hang together," he said, "we shall all
hang separately." It has taken us a long time to learn
this lesson and to put it into practice. At Bretton Woods
we have taken the first great stride in this direction.
Regraded Unclassified
48
- 5 -
I take it as an axiom that after this war is ended no
people -- and therefore no government of the people -- will
again tolerate prolonged or widespread unemployment. A
revival of international trade is indispensable if full
employment is to be achieved in a peaceful world and with
out
standards of living which will permit the realization of
men's reasonable hopes. What are the fundamental conditions
under which commerce among the nations can once more flourish?
They are not too difficult to understand. Let me try to
summarize them for you very simply. First, there must be a
reasonably flexible standard of international exchange to
which all countries can adhere without sacrificing the freedom
of action necessary to meet their internal economic problems.
This is the sole alternative to the desperate tactics of
currency depreciation, excessive tariff restrictions, barter
deals and sterile exchange controls by which governments
vainly sought to maintain employment and living standards
in the past and which culminated in the tragic worldwide
depression of 1929. The international fund agreed upon at
Bretton Woods meets this first condition.
Second, there must be long-term financial aid at
reasonable rates to those countries whose industry and
agriculture have been destroyed either by the ruthless
torch of an invader or by the heroic scorched earth policy
of their defenders. Unless these countries can be lifted
Regraded Unclassifie
49
- 6 -
to their feet economically, they cannot play their essential
part in the exchange of goods throughout the world. In
short, they must be enabled to produce and to sell if they
are to be able to purchase and consume. The Bank for
International Reconstruction and Development is designed
to meet this need.
Objections to this Bank have been raised by a few
members of the banking profession. Perhaps this was to be
expected. It is true that the institution proposed by the
Bretton Woods conference would in some measure limit the
control which private bankers have in the past exercised
over international finance. It would by no means put them
out of business or in any way restrict the investment
sphere in which they could engage. On the contrary, it
would act as an enormously effective stabilizer and guarantor
of any loans which they might make. But it would, unquestion-
ably, require them to make their loans at lower rates of
interest than they have sometimes exacted in the past.
The Bank for International Reconstruction and Development
would make loans only when these could not be floated
through the usual private investment channels at reasonable
rates. The effect would be to drive only the usurious
money lenders from the temple of international finance.
For my own part, I cannot look upon this outcome with any
sense of dismay. It seems to me altogether right and
Regraded Unclassified
50
- 7 -
proper that the ultimate control over capital should be
exercised, through their governments, by the producers who
need it in order to create the real substances of life.
Capital, like any other commodity, must be free from monopoly
control, must be available upon reasonable terms to those who
will put it to use for the general welfare.
Well, we at Bretton Woods have done our portion of the
job. We have sat down together and have talked as friends
and have perfected a plan to cope with the international
monetary and financial problems which our countries face in
common. The plan upon which we have agreed must now be
submitted, as you know, to the legislatures of our respective
countries. They, as your representatives, will pass upon
what we have accomplished. It is of no small importance
to every one of you. It concerns in the last analysis the
kind of job in which you are to work and the amount of money
you are to find in your weekly pay envelope. More important
still, it concerns the kind of world in which your children
are to grow to their maturity. It concerns the opportunities
which will await millions of young men when at last they can
take off their uniforms and come home and roll up their
sleeves and go to work.
This monetary agreement is but one step, of course, in
the broad program of international action necessary for the
shaping of a free future. But it is an indispensable first
51
- 8 -
step and it is also a vital test of our intentions. We are
at a crossroads, and we must go one way or the other. The
conference at Bretton Woods has placed a signpost there --
8. signpost pointing down a highway broad enough for all
men to walk in step and side by side. If they will set
out together, there is nothing on earth that need stop
them.
Regraded Unclassified
Smith
52
-Draft 2-
I am gratified to announce that the conference at Bretton Woods
has successfully completed the task before it.
It was, as we knew when we began, a difficult task, involving
abstruse and complex technical problems. The precise significance of
an international monetary and financial agreement may seem somewhat
mysterious to the general public. Yet at the heart of it lie the
most elementary bread and butter realities of daily life. What we
have done here in Bretton Woods is to devise a mechanism by which
men and women everywhere can exchange, on a fair and stable basis,
the goods which they produce through their labor. And we have
taken the initial steps through which the nations of the world will
be able to help one another in economic development to their mutual
advantage and for the enrichment of all.
From the beginning, despite the difficulties, it was certain
that we were to succeed. For we could not afford to fail.
Regraded Unclassified
53
- 2 -
And the delegates who came to this meeting from forty-four nations
in all quarters of the globe were determined that understanding
and agreement were to be reached. They may have differed as to
method; but they were of one mind as to purpose. When one of the
delegation chiefs (the head of the Russian delegation, Mr. Stepanov,)
was asked one day what would happen if the conference were to conclude
without an agreement, he answered in this way: "I cannot conceive
of this conference not coming to a conclusion. I cannot conceive
of civilized nations going into the post-war world without reaching
complete and full agreement on vital economic and monetary matters."
We now have the substance of that agreement. I believe it will
be the more firm and the more enduring by reason of the very
difficulties which had to be overcome. You all know that there
were differences of opinion among us when the conference began.
Regraded Unclassified
54
- 3 -
That is why the conference was held. President Roosevelt did not
invite the representatives of 44 nations to Bretton Woods merely
to have them raise their hands in approval of some cut-and-dried
formula which had been settled in advance. On the contrary, he
asked them here precisely because differences of opinion - differences
as to method, which we knew we could thresh out and resolve through
patience, through tolerance and through free, democratic discussion.
Remember that we embarked here upon an enterprise without precedent
in history - the establishment of a firm and dynamic foundation
for economic intercourse among the world's peoples. To succeed
in SO momentous an endeavor, it has been necessary, of course, to
bring varied points of view into harmony. New patterns cannot
be cut from old dies. We have had to mold a die to meet tomorrow's
needs.
Regraded classified
55
- 4 -
It was not unnatural that the minor disagreements, rather
than the great underlying area of agreement among us, should have
been emphasized in the news reports of the conference which have
reached you. It is a notable fact, I think, that even the most
technical arguments of this meeting were carried on in the open
air. There has been no hush-hush here at any stage. The members
of the press have had full freedom and have ably reported every
development to you. What we have achieved is an open covenant
openly arrived at: Both in candor to the public and in the candor
of discussion among the delegates, this conference has provided a
magnificent demonstration of the democratic process. I hope and
believe that it has set a pattern for future international meetings.
Regraded Unclassified
56
- 5 -
Because we have faced our differences of opinion frankly,
we have reached an agreement which is rooted in genuine understanding.
None of the nations represented here has altogether had its own way.
We have had to yield to one another not in respect to principles
or essentials but in respect to methods and procedural details.
The fact that we have done so, and that we have done it in 8
continuing spirit of good will and mutual trust, is, I believe,
one of the most hopeful and heartening portents of our times. Here
is a sign blazoned upon the horizon, written large upon the threshold
of the future - a sign for men in battle, for men at work in mines
and mills and in the fields, and a sign for women whose hearts have
been burdened and anxious lest the cancer of war assail yet another
generation - a sign that the peoples of the earth are learning how
to join their hands and work in unity.
Regraded Unclassified
57
- 6 -
There is a curious notion that nationalism and internationalism
are conflicting philosophies - that somehow or other men of
different nations cannot work together without sacrificing the
interests of their particular nations. There has been talk of
this sort - and from people who ought to know better - concerning
the internationalism of the undertaking just completed at
Bretton Woods. I am perfectly certain that no delegation to this
conference has lost sight for a moment of the particular national
interests it was sent here to represent. The American delegation
which I have had the honor of leading, has at all times been
conscious of its primary obligation - the protection of American
interests. And the other representatives here have been, I assure
you, no less loyal or devoted to the welfare of their own people.
Regraded Unclassified
58
- 7 -
0
Yet none of us has found any imcompatability between devotion
to our own countries and joint action. Indeed, we have found on
the contrary that the only genuine safeguard for our national
interests lay in international cooperation. We have come to
recognize that the wisest and most effective form of nationalism
is internationalism that is to say united effort for the
attainment of common goals. This has been the great lesson taught
by the war and is, I think, the great lesson of contemporary life -
that all the peoples of the earth are inseparably linked to one
another by a deep, underlying community of purpose. This community
of purpose is no less real and vital in peace than in war, and
cooperation is no less essential to its fulfillment.
To seek the achievement of our aims separately through the
planless, senselèss rivalry that divided us in the past or through
the outright economic aggression which turned neighbors into
enemies would be again to invite ruin upon us all. Worse, it
Regraded Unclassified
59
- 8 -
would be once more to start our steps irretraceably down the
steep, disastrous road to war. That sort of nationalism belongs
to an era that is dead. Today the only enlightened form of
national self-interest lies in international accord. At Bretton
Woods we have taken the first step toward putting this lesson into
practice.
I take it as an axiom that after this war is ended no people -
0
and therefore no government of the people - will again tolerate
prolonged or widespread unemployment. A revival of international
trade is indispensable if full employment is to be achieved in
a peaceful world and with standards of living which will permit the
realization of men's reasonable hopes. What are the fundamental
conditions under which commerce among the nations can once more
flourish? They are not too difficult to understand. Let me try to
60
- 9 -
summarize them for you very simply. First, there must be a
reasonably flexible standard of international exchange to
which all countries can adhere without sacrificing the freedom
of action necessary to meet their internal economic problems.
This is the sole alternative to the desperate tactics of currency
depreciation, excessive tariff restrictions, barter deals and
sterile exchange controls by which governments vainly sought to
maintain employment and living standards in the past and which
culminated in the tragic worldwide depression of 1929. The
international fund agreed upon at Bretton Woods meets this first
condition.
Second, there must be a long-term financial aid at reasonable
rates to those countries whose industry and agriculture have been
destroyed either by the ruthless torch of an invader or by the
Regraded Unclassified
61
- 10 -
heroic scorched earth policy of their defenders. And there must
be aid as well to promote industry and to raise living standards
among those peoples whose economic potentialities have not yet
been developed. Unless these countries can be lifted to their
feet economically, they cannot play their essential part in
the exchange of goods throughout the world. In short, they must
be enabled to produce and to sell if they are to be able to purchase
and consume. The Bank for International Reconstruction and Develop-
ment, upon which the conference is now completing its deliberations,
is designed to meet this need.
Objections to this Bank have been raised by a few members of
the banking profession. Perhaps this was to be expected. It is
true that the institution proposed by the Bretton Woods conference
would in some measure limit the control which private bankers have
in the past exercised over international finance. It would by no
Regraded Unclassified
- 11 -
62
means put them out of business or in any way restrict the
investment sphere in which they could engage. On the contrary,
it would act as an enormously effective stabilizer and guarantor
of any loans which they might make. But it would, unquestionably,
require them to make their loans at lower rates of interest than
they have sometimes exacted in the past. The Bank for International
Reconstruction and Development would make loans only when these
could not be floated through the usual private investment channels
at reasonable rates. The effect would be to drive only the usurious
money lenders from the temple of international finance. For my
own part, I cannot look upon this outcome with any sense of dismay.
It seems to me altogether right and proper that the ultimate control
over capital should be exercised, through their governments, by the
producers who need it in order to create the real substances of life.
Regraded Unclassified
63
- 12 -
Capital, like any other commodity, must be free from monopoly
control, must be available upon reasonable terms to those who
will put it to use for the general welfare.
The delegates at Bretton Woods have done their portion. of
the job. They have sat down together and have talked as friends
and have perfected a plan to cope with the international monetary
and financial problems which all their countries face in common.
0
The plan upon which they have agreed must now be submitted, as
you know, to the legislatures of the 44 participating nations.
These, as your representatives, will pass upon what has been
accomplished here. It is of no small importance to every one of
you. It concerns in the last analysis the kind of job in which you
are to work and the amount of money you are to find in your weekly
Regraded Unclassified
64
- 13 -
pay envelope. More important still, it concerns the kind of world
in which your children are to grow to their maturity. It concerns
the opportunities which will await millions of young men when at
pl
last they can take off their uniforms and come home and roll up
their sleeves and go to work.
This monetary agreement is but one step, of course, in the
broad program of international action necessary for the shaping
0
of a free future. But it is an indispensable first step and
it is also a vital test of our intentions. We are at a
crossroads, and we must go one way or the other. The conference
at Bretton Woods has placed a signpost there - a signpost pointing
down a highway broad enough for all men to walk in step and side
by side. If they will set out together, there is nothing on earth
that need stop them.
Regraded Unclassified
65
I am gratified to announce that the conference at Bretton Woods
has successfully completed the task before it.
It was, as we knew when we began, a difficult task, involving
abstruse and complex technical problems.
The precise significance of
an international monetary and financial agreement may seem somewhat
mysterious to the general public. Yet at the heart of it lie the
most elementary bread and butter realities of daily life. What we
have done here in Bretton Woods is to devise a mechanism by which
men and women everywhere can exchange, on a fair and stable basis,
the goods which they produce through their labor. And we have
taken the initial steps through which the nations of the world will
be able to help one another in economic development to their mutual
advantage and for the enrichment of all.
From the beginning, despite the difficulties, it was certain
that we were to succeed. For we could not afford to fail.
w a same here to devise an instrumentality which would
tabe the place of the reonomic rich - competeline currency
devaluation and altificial barriers 0 trade - which preceded and
indeed led to the present was. The do order has been ended.
Regraded Unclassified
66
- 2 -
And the delegates who came to this meeting from forty-four nations
in all quarters of the globe were determined that understanding
and agreement were to be reached. They may have differed as to
method; but they were of one mind as to purpose. When one of the
delegation chiefs (the head of the Russian delegation, Mr. Stepanov,)
was asked one day what would happen if the conference were to conclude
without an agreement, he answered in this way: "I cannot conceive
of this conference not coming to & conclusion. I cannot conceive
of civilized nations going into the post-war world without reaching
complete and full agreement on vital economic and monetary matters."
We now have the substance of that agreement. I believe it will
be the more firm and the more enduring by reason of the very
difficulties which had to be overcome. You all know that there
were differences of opinion among us when the conference began.
Regraded Unclassified
- 3 -
67
That is why the conference was held. President Roosevelt did not
invite the representatives of 44 nations to Bretton Woods merely
to have them raise their hands in approval of some cut-and-dried
formula which had been settled in advance. On the contrary, he
asked them here precisely because differences of opinion - differences
as to method, which we knew we could thresh out and resolve through
patience, through tolerance and through free, democratic discussion.
V embarked here upon an enterprise without precedent
in history - the establishment of a firm and dynamic foundation
for economic intercourse among the world's peoples. To succeed
in so momentous an endeavor, it has been necessary, of course, to
bring varied points of view into harmony. New patterns cannot
be out from old dies. We have had to mold a die to meet tomorrow's
needs.
Regraded Unclassified
68
- 4 -
It was not unnatural that the minor disagreements, rather
than the great underlying area of agreement among us, should have
been emphasized in the news reports of the conference which have
reached you
It is a notable fact, I think, that even the most
technical arguments of this meeting were carried on in the open
air. There has been no hush-hush here at any stage. The members
of the press have had full freedom and have ably reported every
development to you. What we have schieved is en open covenant
openly
arrived nt. Both in candor to the public and in the candor
of discussion among the delegates, this conference has provided a
magnificent demonstration of the democratic process. I hope and
believe that it has set a pattern for future international meetings.
Regraded Unclassified
69
- 5 -
Because we have faced our differences of opinion frankly,
we have reached an agreement which is rooted in genuine understanding.
None of the nations represented here has altogether had its own way.
We have had to yield to one another not in respect to principles
or essentials but in respect to methods and procedural details.
The fact that we have done so, and that we have done it in a
continuing spirit of good will and mutual trust, is, I believe,
one of the most hopeful and heartening portents of our times. Here
is a sign blazoned upon the horizon, written large upon the threshold
of the future a sign for men in battle, for men at work in mines
and mills and in the fields, and a sign for women whose hearts have
been burdened and anxious lest the cancer of war assail yet another
generation a sign that the peoples of the earth are learning how
to join their hands and work in unity.
Regraded Unclassified
70
- 6 -
There is a curious notion that nationalism and internationalism
are conflicting philosophies - that somehow or other men of
different nations cannot work together without sacrificing the
?
interests of their particular nations. There has been talk of
this sort - and from people who ought to know better - concerning
the internationalism of the undertaking just completed at
Bretton Woods. I am perfectly certain that no delegation to this
conference has lost sight for a moment of the particular national
interests it was sent here to represent. The American delegation
which I have had the honor of leading, has at all times been
conscious of its primary obligation - the protection of American
interests. And the other representatives here have been, I assure
you, no less loyal or devoted to the welfare of their own people.
Regraded Inclassified
71
- 7 -
Yet none of us has found any imcompatability between devotion
to our own countries and joint action. Indeed, we have found on
the contrary that the only genuine safeguard for our national
interests lay in international cooperation. We have come to
recognize that the wisest and most effective form of nationalism
is internationalism - that is to say united effort for the
attainment of common goals. This has been the great lesson taught
by the war and is, I think, the great lesson of contemporary life -
that all the peoples of the earth are inseparably linked to one
another by a deep, underlying community of purpose. This community
of purpose is no less real and vital in peace than in war, and
cooperation is no less essential to its fulfillment.
To seek the achievement of our aims separately through the
planless, senseless rivalry that divided us in the past or through
the outright economic aggression which turned neighbors into
enemies would be again to invite ruin upon us all. Worse, it
Regraded Unclassified
72
- 8 -
would be once more to start our steps irretraceably down the
steep, disastrous road to war. That sort of nationalism belongs
to an era that is dead. Today the only enlightened form of
national self-interest lies in international accord. At Bretton
Woods we have taken the first step toward putting this lesson into
practice.
I take it as an axiom that after this war is ended no people -
and therefore no government of the people - will again tolerate
prolonged or widespread unemployment. A revival of international
trade is indispensable if full employment is to be achieved in
a peaceful world and with standards of living which will permit the
realization of men's reasonable hopes. What are the fundamental
conditions under which commerce among the nations can once more
flourish? They are not too difficult to understand. Let me try to
Regraded Unclassified
73
- 9 -
summarize them for you very simply. First, there must be a
reasonably flexible standard of international exchange to
which all countries can adhere without sacrificing the freedom
of action necessary to meet their internal economic problems.
This is the sole alternative to the desperate tactics of currency
depreciation, excessive tariff restrictions, barter deals and
sterile exchange controls by which governments vainly sought to
maintain employment and living standards in the past and which
culminated in the tragic worldwide depression of 1929. The
international fund agreed upon at Bretton Woods meets this first
condition.
Second, there must be & long-term financial aid at reasonable
rates to those countries whose industry and agriculture have been
destroyed either by the ruthless torch of an invader or by the
Regraded Unclassified
74
- 10 -
heroic scorched earth policy of their defenders. And there must
be aid as well to promote industry and to raise living standards
among those peoples whose economic potentialities have not yet
been developed. Unless these countries can be lifted to their
feet economically, they cannot play their essential part in
the exchange of goods throughout the world. In short, they must
be enabled to produce and to sell if they are to be able to purchase
and consume. The Bank for International Reconstruction and Develop-
ment, upon which the conference is now completing its deliberations,
is designed to meet this need.
Objections to this Bank have been raised by a few members of
the banking profession. Perhaps this was to be expected. It is
true that the institution proposed by the Bretton Woods conference
would in some measure limit the control which private bankers have
in the past exercised over international finance. It would by no
Regraded Unclassified
75
- 11 -
means put of business on in any-may restrict the
investment sphere in which they could engage. On the contrary,
quatty expaind this sphere by enlarging the volume of anternational revert- ment
it would, act as an enormously effective stabilizer and guarantor
and
would
of any loans which they might make. But it would, unquestionably,
require them to make their loans at lower rates of interest than
they have sometimes exacted in the past. The Bank for International
Reconstruction and Development would make loans only when these
could not be floated through the usual private investment channels
at reasonable rates. The effect would be to drive only the usurious
provide cepatal for those who need it al lower interest than rater
money lenders from the temple of international finance, For my
j
the part
and
own part, I cannot look upon this outcome with any sense of dismay.
It seems to me altogether right and proper that the ultimate control
over capital should be exercised, through their governments, by the
producers who need it in order to create the real substances of life.
Regraded Unclassified
76
- 12 -
Capital, like any other commodity, must be free from monopoly
control, must be available upon reasonable terms to those who
will put it to use for the general welfare.
The delegates at Bretton Woods have done their portion of
the job. They have sat down together and have talked as friends
and have perfected a plan to cope with the international monetary
and financial problems which all their countries face in common.
The plan upon which they have agreed must now be submitted, as
you know, to the legislatures of the 44 participating nations.
These, as your representatives, will pass upon what has been
accomplished here. It is of no small importance to every one of
you. It concerns in the last analysis the kind of job in which you
are to work and the amount of money you are to find in your weekly
Regraded Unclassified
77
- 13 -
pay envelope. More important still, it concerns the kind of world
in which your children are to grow to their maturity. It concerns
the opportunities which will await millions of young men when at
last they can take off their uniforms and come home and roll up
their sleeves and go to work.
This monetary agreement is but one step, of course, in the
broad program of international action necessary for the shaping
of a free future. But it is an indispensable first step and
it is also a vital test of our intentions. We are at a
crossroads, and we must go one way or the other. The conference
at Bretton Woods has placed 8 signpost there - a signpost pointing
down a highway broad enough for all men to walk in step and side
by side. If they will set out together, there is nothing on earth
that need stop them.
Regraded Unclassified
Smith AFTERNOON DRAFT- 78
Q3
WITH ALL CHANGES
I am gratified to announce that the Conference at Bretton
Woods has successfully completed the task before it.
It was, as we knew when we began, a difficult task, involving
abstruse and complex technical problems. We came here to devise
methods which would do away with the economic evils, the competitive
currency devaluation and destructive impediments to trade which
preceded and indood delute the present war. We have succeeded
in that effort.
The actual details of an international monetary and financial
agreement may seem mysterious to the general public. Yet at the
heart of it lie the most elementary bread and butter realities
of daily life. What we have done here in Bretton Woods is to
devise machinery by which men and women everywhere can exchange,
on a fair and stable basis, the goods which they produce through
their labor. And we have taken the initial steps through which
Regraded Unclassified
79
- 2 -
the nations of the world will be able to help one another in economic
development to their mutual advantage and for the enrichment of
all.
the
Because the representatives of ow 44 nations have faced our
differences of opinion frankly, we have reached an agreement which
is rooted in genuine understanding. None of the nations represented
here has altogether had its own way. We have had to yield to one
another not in respect to principles or essentials but in respect
to methods and procedural details. The fact that we have done so,
and that we have done it in a continuing spirit of good will and
mutual trust, is, I believe, one of the hopeful and heartening
portents of our times. Here is a sign blazoned upon the horizon,
written large upon the threshold of the future - a sign for men
in battle, for men at work in mines and mills, and in the fields,
and a sign for women whose hearts have been burdened and anxious
lest the cancer of war assail yet another generation - a sign that
Regraded Unclassified
80
- 3 -
the peoples of the earth are learning how to join hands and work
in unity.
There is a curious notion that the protection of national
interests and the development of international cooperation are
conflicting philosophies - that somehow or other men of different
nations cannot work together without sacrificing the interests of
their particular nations. There has been talk of this sort - and
from people who ought to know better - concerning the international
cooperative nature of the undertaking just completed at Bretton
Woods. I am perfectly certain that no delegation to this conference
has lost sight for a moment of the particular national interests
it was sent here to represent. The American delegation which I
have had the honor of leading, has at all times been conscious
of its primary obligation - the protection of American interests.
Regraded Unclassified
81
- 4 .
And the other representatives here have been,
no less loyal or devoted to the welfare of their own people.
Yet none of us has found any incompatability between devotion
to our own countries and joint action. Indeed, we have found on
the contrary that the only genuine safeguard for our national
interests lay in international cooperation. We have come to
recognize that the wisest and most effective way to protect our
national interests is through international cooperation - that
is to say united effort for the attainment of common goals. This
has been the great lesson taught by the war and is, I think, the
great lesson of contemporary life - that all the peoples of the
earth are inseparably linked to one another by a deep, underlying
community of purpose. This community of purpose is no less
Regraded Unclassified
82
- 5 -
real and vital in peace than in war, and cooperation is no less
essential to its fulfillment.
To seek the achievement of our aims separately through the
planless, senseless rivalry that divided us in the past or through
the outright economic aggression which turned neighbors into
enemies would be again to invite ruin upon us all. Worse, it
would be once more to start our steps irretraceably down the
steep, disastrous road to war. That sort of nationalism belongs
to an era that is dead. Today the only enlightened form of
national self-interest lies in international accord. At Bretton
Woods we have taken practical steps toward putting this lesson
into practice in the monetary and economic field.
I take it as an axiom that after this war is ended no people -
and therefore no government of the people - will again tolerate
prolonged and widespread unemployment. A revival of international
Regraded Unclassified
83
- 6 -
trade is indispensable if full employment is to be achieved in
a peaceful world and with standards of living which will permit the
realization of men's reasonable hopes.
What are the fundamental conditions under which commerce
among the nations can once more flourish? They are not too
difficult to understand. Let me try to summarize two major
considerations for you very simply.
First, there must be a reasonably stable standard of
international exchange to which all countries can adhere without
sacrificing the freedom of action necessary to meet their internal
economic problems.
This is the sole alternative to the desperate tactics of the
past - competitive currency depreciation, excessive tariff barriers,
uneconomic barter deals, multiple currency practices and unnecessary
exchange restrictions - by which governments vainly sought to
maintain employment, uphold living standards, and keep international
balance of payments in equilibrium. In the final analysis,
Regraded Unclassified
84
- 7 -
these tactics only succeeded in contributing to world-wide
depression and even war. The International Fund agreed upon at
Bretton Woods will help remedy this situation.
Second, there must be long-term financial aid at reasonable
rates to those countries whose industry and agriculture have been
destroyed either by the ruthless torch of an invader or by the
heroic scorched-earth policy of their defenders. This financial
id is an absolute necessity to the reconstruction of world
economy. An adequate flow of foreign investments must be made
available to help these countries regain their footing, and must
be made available in addition to promote sound industry and increase
industrial and agricultural production in those nations whose
economic potentialities have not yet been developed. It is as
essential for us all as it is for these nations that they play
their full part in the exchange of goods, throughout the world.
Regraded Unclassified
- 8 -
85
In short, they must be enabled to produce and to sell if they are
Qo be able to purchase and consume. The Bank for International Recon-
struction and Development, upon which this conference is now completing
its deliberations, is designed to meet this need.
I am sure this need will be met if the opportunity for increased
production and trade, which these monetary and financial proposals
offer, is not frustrated by artificial and undue barriers to trade.
International collaboration must be continued into the field of trade
policy to give ever increasing opportunity for all peoples to sell
the products of their labor and buy the goods which they need.
Objections to the plans developed here have already been and
are bound to be raised. This is due chiefly, I believe, to a misunder-
standing of both the purpose and the method of the project. The
institutions proposed by the Bretton Woods conference would, of course,
limit the controls which private interests have exercised over
international finance; but it would in no way restrict the investment
phere in which sound bankers engage. On the contrary, it would
Regraded Unclassified
86
- 8A -
greatly expand this sphere by enlarging the volume of international
investments and by acting as a stabilizer and guarantor of loans
which private interests might make.
Regraded Unclassified
87
- 9 -
It is in fact the chief purpose of the Bank to guarantee loans
made by private investors through normal investment channels.
A private investor will be able to make loans to worthy governments
without risk, because the risk normally assumed by the investor,
will be shared by all of the nations subscribing to the Bank.
With the Bank in operation, a measure of control over capital will
be exercised through their governments, by the producers who
need it in order to create the real substances of life. Capital,
like any other commodity, must be free from monopoly control,
must be available upon reasonable terms to those who will put it
to use for the general welfare.
The delegates and technical staffs at Bretton Woods have
done their portion of the job. They sat down together and in
a high spirit of cooperation perfected a plan to cope with the
international monetary and financial problems which all their
Regraded Unclassified
88
- 10 -
countries face in common. These projects must now be submitted,
as is proper, to the legislatures and the people of the participating
nations. They will pass upon what has been accomplished here.
The result will be of vital importance to every one in every
country. It concerns in the last analysis the kind of job at which
men and women the world over are to work and the amount of money
they are to find in their weekly pay envelopes. More important
still, it concerns the kind of world in which our children
are to grow to maturity. It concerns the opportunities which
will await millions of young men when at last they can take off
their uniforms and come home and roll up their sleeves and go to
work.
Regraded Unclassified
89
- 11 -
This monetary agreement is but one step, of course, in the
broad program of international action necessary for the shaping
of a free future. But it is an indispensable step and a vital
test of our intentions. We are at a crossroads, and we must go
one way or the other. The conference at Bretton Woods has
erected a signpost - a signpost pointing down a highway broad
enough for all men to walk in step and side by side. If they
will set out together, there is nothing on earth that need stop
them.
Regraded Unclassified
4
SEMI-FIVAC SEMI FIVHE
90
I am gratified to announce that the conference at Bretton
Woods has successfully completed the task before it.
It was, as we knew when we began, a difficult task, involving
complicated technical problems. We came here to work out methods
which would do away with the economic evils - the competitive
currency devaluation and destructive impediments to trade - which
preceded the present war. We have succeeded in that effort.
The actual details of an international monetary and financial
agreement may seem mysterious to the general public. Yet at the
heart of it lie the most elementary bread and butter realities
of daily life. What we have done here in Bretton Woods is to
devise machinery by which men and women everywhere can freely
exchange, on & fair and stable basis, the goods which they produce
through their labor. And we have taken the initial steps through
which the nations of the world will be able to help one another
in economic development to their mutual advantage and for the
enrichment of all.
Regraded Unclassified
91
- 2 -
The representatives of the 44 nations faced differences of
opinion frankly, and reached an agreement which is rooted in
genuine understanding. None of the nations represented here has
altogether had its own way. We have had to yield to one another
not in respect to principles or essentials but in respect to
methods and procedural details. The fact that we have done so,
and that we have done it in a continuing spirit of good will and
mutual trust, is, I believe, one of the hopeful and heartening
portents of our times. Here is a sign blazoned upon the horizon,
written large upon the threshold of the future - a sign for men
in battle, for men at work in mines and mills, and in the fields,
and a sign for women whose hearts have been burdened and anxious
lest the cancer of war assail yet another generation - a sign that
the peoples of the earth are learning how to join hands and work
in unity.
Regraded Unclassified
92
- 3 -
There is a curious notion that the protection of national
interests and the development of international cooperation are
conflicting philosophies - that somehow or other men of different
nations cannot work together without sacrificing the interests of
their particular nations. There has been talk of this sort - and
from people who ought to know better - concerning the international
cooperative nature of the undertaking just completed at Bretton
Woods. I am perfectly certain that no delegation to this conference
has lost sight for a moment of the particular national interests
it was sent here to represent. The American delegation which I
have had the honor of leading, has at all times been conscious
of its primary obligation - the protection of American interests.
And the other representatives here have been no less loyal or
devoted to the welfare of their own people.
Regraded Unclassified
93
- 4 -
Yet none of us has found any incompatability between devotion
to our own countries and joint action. Indeed, we have found on
the contrary that the only genuine safeguard for our national
interests lies in international cooperation. We have come to
recognize that the wisest and most effective way to protect our
national interests is through international cooperation - that
is to say, through united effort for the attainment of common
goals. This has been the great lesson taught by the war and is,
I think, the great lesson of contemporary life - that
the
peoples of the earth are inseparably linked to one another by a
deep, underlying community of purpose. This community of purpose
is no less real and vital in peace than in war, and cooperation
is no less essential to its fulfillment.
Regraded Unclassified
94
- 5 -
To seek the achievement of our aims separately through
the planless, senseless rivalry that divided us in the past,
or through the outright economic aggression which turned neighbors
into enemies, would be to invite ruin again upon us all. Worse,
it would be once more to start our steps irretraceably down the
steep, disastrous road to war. That sort of extreme nationalism
belongs to an era that is dead. Today the only enlightened form
of national self-interest lies in international accord. At
Bretton Woods we have taken practical steps toward putting this
lesson into practice in the monetary and economic field.
I take it as an axiom that after this war is ended no people -
and therefore no government of the people - will again tolerate
prolonged and widespread unemployment. A revival of international
trade is indispensable if full employment is to be achieved in a
peaceful world and with standards of living which will permit the
realization of men's reasonable hopes.
Regraded Unclassified
95
- 6 -
What are the fundamental conditions under which commerce
among the nations can once more flourish? They are not too
9
OP
First, there must be a reasonably stable standard of
international exchange to which all countries can adhere without
sacrificing the freedom of action necessary to meet their internal
economic problems.
This is the alternative to the desperate tactics of the
past - competitive currency depreciation, excessive tariff barriers,
uneconomic barter deals, multiple currency practices and unnecessary
exchange restrictions - by which governments vainly sought to
maintain employment and uphold living standards. In the final
analysis, these tactics only succeeded in contributing to world-wide
depression and even war. The International Fund agreed upon at
Bretton Woods will help remedy this situation.
Regraded Unclassified
96
- 7 -
Second, long-term financial aid must be made available at
reasonable rates to those countries whose industry and agriculture
have been destroyed by the ruthless torch of an invader or by the
heroic soorched-earth policy of their defenders.
Long-term funds must be made available also to promote sound
industry and increase industrial and agricultural production in
nations whose economic potentialities have not yet been developed.
It is essential to us all that these nations play their full
part in the exchange of goods throughout the world.
They must be enabled to produce and to sell if they are to
be able to purchase and consume. The Bank for International Recon-
struction and Development is designed to meet this need.
sameja
Objections to this Bank have been raised by of
Grukers
a few
profession and come economistsv Perhaps was
It that The the institutions proposed by the
Regraded Unclassified
97
- 8 indeed
Bretton Woods conference would in-some measure limit the control
certain
which
private bankers have in the past exercised over
international finance. It would by no means restrict the
tankers
investment sphere in which they could engage. On the contrary,
it would greatly expand this sphere by enlarging the volume of
international investment and would act as an enormously
effective stabilizer and guarantor of loans which they might make.
The clief perpose 9 the
is to quarantees private erans
The Bank for International Reconstruction and Development would
made
make loans only when these could not be floated through the
normal
private investment channels at reasonable rates. The effect
severyt
would be to provide capital for those who need it at lower
only
interest rates than in the past, and to drive
the usurious
money lenders from the temple of international finance. For my
own part, I cannot look upon this outcome with any sense of dismay.
&
channels
Regraded
Unclassified
98
- 9 -
Capital, like any other commodity, should be free from monopoly
control, and available upon reasonable terms to those who will
put it to use for the general welfare.
The delegates and technical staffs at Bretton Woods have
completed their portion of the job. They sat down together,
talked as friends and perfected two plans to cope with the
international monetary and financial problems which all their
countries face in common. These proposals somust now be submitted
to the legislatures and the peoples of the participating
nations. They will pass upon what has been accomplished here.
The result will be of vital importance to every one in
every country. In the last analysis, it will help determine
whether or not people have jobs and the amount of money they are
to find in their weekly pay envelopes. More important still,
Regraded Unclassified
99
- 10 -
it concerns the kind of world in which our children are to grow
to maturity. It concerns the opportunities which will await millions
of young men when at last they can take off their uniforms and come
home and roll up their sleeves and go to work.
This monetary agreement is but one step, of course, in the
broad program of international action necessary for the shaping
of a free future. But it is an indispensable step and a vital
test of our intentions. We are at a crossroads, and we must go
one way or the other. The conference at Bretton Woods has
erected a signpost - a signpost pointing down a highway broad
in step and
enough for all men to walk side by side. If they will set out
together, there is nothing on earth that need stop them.
Regraded Unclassified
100
Reading copy of Secretary's address
at closing session of Monetary
Conference - July 22, 1944.
101
I am gratified to announce that the conference
at Bretton Woods has successfully completed the task
before it.
It was, as we knew when we began, a difficult task,
involving complicated technical problems. We came here
to work out methods which would do away with the economic
evils - the competitive currency devaluation and destructive
impediments to trade - which preceded the present war.
Pause
We have succeeded in that effort.
The actual details of an international monetary
and financial agreement may seem mysterious to the general
public. Yet at the heart of it lie the most elementary
bread and butter realities of daily life.
1459
102
Regraded Unclassified
102
- 2 -
What we have done here in Bretton Woods is to devise
machinery by which men and women everywhere can freely
exchange, on a fair and stable basis, the goods which
they produce through their labor. And we have taken
the initial steps through which the nations of the world
will be able to help one another in economic development
to their mutual advantage and for the enrichment of all.
The representatives of the 44 nations faced differences
of opinion frankly, and reached an agreement which is rooted
in genuine understanding. None of the nations represented
here has altogether had its own way. We have had to yield
to one another not in respect to principles or essentials
but in respect to methods and procedural details.
1357
126
Regraded Unclassified
103
- 3 -
The fact that we have done so, and that we have done it
in a continuing spirit of good will and mutual trust,
is, I believe, one of the hopeful and heartening
portents of our times. Here is a sign blazoned upon
the horizon, written large upon the threshold of the
future - a sign for men in battle, for men at work in
mines and mills, and in the fields, and a sign for
women whose hearts have been burdened and anxious
lest the cancer of war assail yet another generation -
a sign that the peoples of the earth are learning how
to join hands and work in unity.
1231
108
Regraded Inclassified
104
- 4 -
There is a curious notion that the protection of
national interests and the development of international
cooperation are conflicting philosophies - that somehow
or other men of different nations cannot work together 1/4
without sacrificing the interests of their particular
nations. There has been talk of this sort - and
from people who ought to know better - concerning the
international cooperative nature of the undertaking
just completed at Bretton Woods. I am perfectly
certain that no delegation to this conference has
lost sight for a moment of the particular national
interests it was sent here to represent.
1123
94
Regraded/Undassified
105
- 5 -
The American delegation which I have had the honor of
leading, has at all times been conscious of its
primary obligation - the protection of American interests.
And the other representatives here have been no less
loyal or devoted to the welfare of their own people.
Yet none of us has found any incompatability
between devotion to our own countries and joint action.
Indeed, we have found on the contrary that the only
genuine safeguard for our national interests lies in
international cooperation. We have come to recognize
that the wisest and most effective way to protect our
national interests is through international cooperation -
that is to say, through united effort for the attainment
of common goals.
1029
116
Regraded Unclassified
106
- 6 -
This has been the great lesson taught by the war and is,
I think, the great lesson of contemporary life - that the
peoples of the earth are inseparably linked to one
another by a deep, underlying community of purpose.
This community of purpose is no less real and vital in
peace than in war, and cooperation is no less essential to
its fulfillment.
To seek the achievement of our aims separately through
the planless, senseless rivalry that divided us in the
past, or through the outright economic aggression which
turned neighbors into enemies, would be to invite ruin
again upon us all.
913
102
811
Regraded
Unclassified
107
- 7 -
Worse, it would be once more to start our steps
irretraceably down the steep, disastrous road to war.
That sort of extreme nationalism belongs to an era that
is dead. Today the only enlightened form of national
self-interest lies in international accord. At
Bretton Woods we have taken practical steps toward putting
this lesson into practice in the monetary and economic
field.
I take it as an axiom that after this war is ended 1/2
no people - and therefore no government of the people -
will again tolerate prolonged and widespread unemployment.
A revival of international trade is indispensable if full
employment is to be achieved in a peaceful world and with
standards of living which will permit the realization of
men's reasonable hopes.
811
123
Regraded Unclassified
108
- 8 -
Pause
What are the fundamental conditions under which
commerce among the nations can once more flourish?
First, there must be a reasonably stable standard of
international exchange to which all countries can adhere
without sacrificing the freedom of action necessary to
meet their internal economic problems.
This is the alternative to the desperate tactics of
the past - competitive currency depreciation, excessive
tariff barriers, uneconomic barter deals, multiple currency
practices and unnecessary exchange restrictions - by
which governments vainly sought to maintain employment
and uphold living standards. In the final analysis,
these tactics only succeeded in contributing to world-wide
depression and even war.
688
Regraded nclassified
109
- 9 -
The International Fund agreed upon at Bretton Woods will
help remedy this situation.
Pause
Second, long-term financial aid must be made available
1.9
at reasonable rates to those countries whose industry
and agriculture have been destroyed by the ruthless torch
of an invader or by the heroic scorched-earth policy
of their defenders.
Long-term funds must be made available also to
promote sound industry and increase industrial and
agricultural production in nations whose economic
potentialities have not yet been developed. It is
essential to us all that these nations play their full
part in the exchange of goods throughout the world.
587
102
Regraded Unclassified 485
110
- 10 -
They must be enabled to produce and to sell if they
are to be able to purchase and consume. The Bank for
International Reconstruction and Development is designed
to meet this need.
Pause
Objections to this Bank have been raised by some
bankers and a few economists. The institutions proposed
by the Bretton Woods conference would indeed limit the
control which certain private bankers have in the past
exercised over international finance. It would by no
means restrict the investment sphere in which bankers
could engage. On the contrary, it would greatly expand
this sphere by enlarging the volume of international
investment and would act as an enormously effective
stabilizer and guarantor of loans which they might make. 3/4
485
117
Regraded Unclassified 368
111
- 11 -
The chief purpose of the Bank for International
Reconstruction and Development is to guarantee private
loans made through the usual investment channels.
It would make loans only when these could not be
floated through the normal channels at reasonable rates.
The effect would be to provide capital for those who
need it at lower interest rates than in the past, and
to drive only the usurious money lenders from the
temple of international finance. For my own part,
I cannot look upon this outcome with any sense of dismay.
Pause
Capital, like any other commodity, should be free from
monopoly control, and available upon reasonable terms
to those who will put it to use for the general welfare.
368
112
Regraded Unclassified 351
112
- 12 -
Pause
The delegates and technical staffs at Bretton Woods
have completed their portion of the job. They sat down
together, talked as friends and perfected plans to cope
with the international monetary and financial problems
which all their countries face in common. These
proposals now must be submitted to the legislatures and
the peoples of the participating nations. They will
pass upon what has been accomplished here.
The result will be of vital importance to every one
in every country. In the last analysis, it will help
determine whether or not people have jobs and the amount
of money they are to find in their weekly pay envelopes.
More important still, it concerns the kind of world in
which our children are to grow to maturity.
251
125
Regraded Unclassified
113
Incidentally, tonight we had a dramatic demonstration of
THESE 1 INTENTIONS
the hopeful prospects for the future of the United Nations.
Tonight the Soviet Government informed me, through Mr. Stepanov,
Chairman of its Delegation here in Bretton Woods, that it has
authorized an increase in its subscription to the International
Bank for Reconstruction and Development to one billion two
hundred million dollars. This was done after a subscription
of nine hundred million dollars had been agreed upon
unanimously by the Conference. By this action, the Union
of Soviet Socialist Republics is voluntarily taking 8. greatly
increased responsibility for the success of this Bank in
the post-war world. This is an indication of the true spirit
of international cooperation demonstrated throughout this
conference.
Regraded Unclassified
114
- 13 -
It concerns the opportunities which will await millions
of young men when at last they can take off their uniforms
and come home and roll up their sleeves ane go to work.
Pause
This monetary agreement is but one step, of course,
in the broad program of international action necessary
for the shaping of a free future. But it is an
indispensable step and 8 vital test of our intentions.
Pause
We are at a crossroads, and we must go one way or the
other// The conference at Bretton Woods has erected a
signpost - a signpost pointing down a highway broad
and
enough for all men to walk in step side by side.
If they will set out together, there is nothing on earth
that need stop them.
126
126
Regraded I Inclassifie
115
runo
UNITED NATIONS MONETARY AND FINANCIAL CONFERENCE
Henry -
> have jusT latted
with Mr. Hull. He sends
you his warmes wugralula-
hans Mr R great achievement.
Ite will issue n s/a/Ement
along the times of yours-
It will he Two Tate for
the Sunday pa dus, but
will approv on manday- day-
Dear
116
OFFICE OF
TREASURY DEPARTMENT
WASHINGTON
THE SECRETARY
July 22, 1944
MEMORANDUM TO THE SECRETARY
There is attached a memorandum for
your information sometime when things are not
so pressing and when you would like a better
knowledge of how we are trying to set up the
Surplus Property Division of Treasury Procurement.
These might be termed random notes,
however, I think they fairly well present what
we are attempting to accomplish.
DES L Olrich
Assistant to the Secretary
Attachment
Regraded Unclassified
117
COMMENTS REGARDING ORGANIZATION
PERSONNEL AND LOCATION OF REGIONAL OFFICES
Organization
Central Office
At the present time the positions of Supervisor of
the Procurement Division (Assistant to the Secretary) and
Director of Surplus Property are both held by the same in-
dividual. It is desirable that when the proper person for
the job can be found, the position of Chief Deputy Director
be created and filled in order to relieve the Director of Sur-
plus Property of many of his duties and to provide insurance
that someone familiar with the responsibilities of the this
position can "take over" in the Director's absence.
Mr. Clifton E. Mack continues to hold the office of
Director of Procurement, this office being on the same plane
as that of Director of Surplus Property.
The Director of Surplus Property will have Deputy Di-
rectors solely concerned with surplus property to him. Like-
wise, the Director of Procurement will have Deputy Directors
reporting solely to him. In addition, one Deputy Director,
concerned with budget, administrative, finance and personnel
activities, will report to both the Director of Surplus Prop-
erty and the Director of Procurement.
Offices for dealing with tax-sup orted institutions
Conversations are under way between Mr. Clayton's
Office and the Council of State Governments looking to the
establishment of a single, central S. Office in each of
the forty-eight states which would deal with the various pur-
chasing agents for the tax-supported institutions in each
state.
Merchandise Division Heads
Ten broad merchandise divisions have been established
within the organization, as follows:
1. Textiles and Wearing Apparel
2. Automotive
3. Furniture
4. Hardware
5. Medical and Hospital Supplies
6. Paper and Wood Products
7. Machinery
Regraded Unclassified
118
- 2 -
8. Equipment
9. Electrical
10. Miscellaneous
Each of these divisions is to be headed by a commod-
ity specialist whose duties shall be to formulate policies
regarding sales methods, channels of distribution, prices,
quantities to be sold, quantities to be stock-piled and so
on. These men will be broad-gauged merchandisers with con-
siderable experience in their respective fields. They will
be assisted by other specialists who have had intensive ex-
perience in the marketing of some specific category of
merchandise within the general field.
As an example, there is to be a commodity specialist
in charge of the disposal of paper who possesses 8 broad
knowledge of the entire industry. He may have assistants who
are highly skilled in the marketing of
a - Fine papers
b - Coarse papers
c - Paper products
The ten chief commodity specialists will report to 8.
Deputy Director in charge of merchandising and sales.
Location of Regional Offices
The locations of existing Regional Offices were
selected from the viewpoint of their nearness to sources of
supply for goods purchased by the Procurement Division and
of their proximity to federal agencies dependent upon them
for supplies.
Present locations are inadequate from the point of
view of surplus property disposal in that:
(a) They cannot serve certain im-
portant markets for various
types of merchandise
(b) They are far removed from
military depots where large
amounts of surplus stocks are
stored.
At the present time, location is not 8.8 important as
it will be later because many goods are now in short supply.
Customers will go to unusual extremes in order to purchase
merchandise. When goods are in long supply and a buyer's
Regraded Unclassified
119
- 3 -
market appears, customers will be reluctant to visit other
than their usual sources of supply and our problem will be-
come increasingly difficult.
Therefore, District Offices in charge of capable salès
mangers and reporting to the Regional Offices should be
established in important markets as follows:
Boston Regional Office
A district office should be established in Portland,
Maine.
New York Regional Office
District offices should be established in Buffalo,
Philadelphia and Pittsburgh and an uptown sales office located
near 34th Street and Fifth Avenue in New York City.
Washington Regional Office
Regional office should be transferred to Richmond and
enlarged sales offices opened. There is no valid son why
the Washington Regional Office should be in its present
location. At the present time much of its clerical work is
sent to Richmond because of the inability to secure help in
Washington.
Atlanta Regional Office
District offices should be opened in Jacksonville,
Florida; Birmingham, Alabama; Chatanooga, Tennessee, Memphis,
Tennessee.
Kansas City Regional Office
District offices should be established in St. Louis,
Missouri; Omaha, Nebraska; Des Moines, Iowa.
Chicago Regional Office
District offices should be established in Detroit, Michigan;
Springfield, Illinois; Milwaukee, Wisconsin; or Madison, Wisconsin;
Minneapolis, and St. Paul, Minnesota; Dubuque, Iowa.
Regraded Unclassified
120
- 4 -
Fort Worth Regional Office
District offices should be opened in Houston,
Galveston, and San Antonio, Texas; and New Orleans, Louisiena.
San Francisco Regional Office
The San Francisco region should be divided into two
regions -- a Regional Office in San Francisco and a Regional
Office in Los Angeles with a District Office at Phoenix,
Arizona, reporting to Los Angeles.
Denver Regional Office
A district office should be opened in Salt Lake City,
Utah; and Cheyenne, Wyoming.
Seattle Regional Office
A district office should be opened in Portland,
Oregon; and Spokane, Washington.
Cincinnati Regional Office
A district office should be opened in Columbus, Ohio;
and Indianapolis, Indiana.
Regional and District Offices physical layout
In each of the regional and district offices there
should be adequate space for a comprehensive display of the
various materials we offer for sale and the offices should be
laid out as sales offices.
Regraded Unclassified
121
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE July 22, 1944
TO
Mr. D. W. Bell
FROM
Mr. Glasser A.s.
Attached is a proposed memorandum for the
President and a press release to be issued by the
President, in connection with the Italian matter.
The Secretary did not feel that he needed
the approval of the President to make the dollars
available to the Italian Government for troop pay.
However, the memorandum for the President is used
merely to form the basis for the press release.
Mr. DuBois and I would like to discuss this
question with you.
122
MEMORANDUM FOR THE PRESIDENT
As you know, we will pay currently to the Western
European countries the dollar equivalent of the local cu-
rency which our troops will be spending out of their pay
in such countries, it being traditional that the United
States should not place the burden of the pay of its
troops on friendly countries.
In the case of Italy, however, we have not been pay-
ing the Italians the dollars representing our troop pay.
Instead, we have been placing these dollars in a special
account in the Treasury, holding them with the thought in
mind that they might eventually be turned over for the
use of the Italian people.
In view of the present situation in Italy, I suggest
that we now accord Italy the same arrangement we are accord-
ing the Western European countries.
I recommend, therefore, that the dollars which we
have set aside in this special account representing troop
pay be turned over to the Italian Government and that
from now on dollars representing the pay of our troops
spent in Italy be paid currently to the Italian Govern-
ment.
This step is particularly significant at this time
because of the need of Italy for foreign exchange with
which to pay for the necessary civilian supplies for its
people and to provide for the beginning of rehabilitation
in liberated Italy.
The Secretary of State and the Secretary of War con-
cur in this recommendation.
Regraded Unclassified
123
WHITE HOUSE
Press Release
I have today approved the recommendation of the
Secretary of the Treasury that the United States Govern-
ment turn over to the Italian Government the dollars
corresponding to the expenditures of our troops out of
their pay and allowances in Italy and that from now on
dollars representing the pay of our troops spent in
Italy be paid currently to the Italian Government.
These funds will be used for the purchase of essen-
tial civilian supplies in this country for relief and re-
habilitation in liberated Italy. Thus we will be according
to Italy the same arrangement as has been made with the
Western European countries.
We Americans have never regarded the Italian people
as our enemies. Our troops marched into Italy to free the
Italian people from the Fascist hoodlums who had enslaved
them for twenty-one years and from the German jailers who
added the Nazi whip to the Fascist chains in using Italy
as a conquered province. Our soldiers and sailors are
being welcomed by the civilian population wherever they
go and are being assisted at every step by Italian men
and women to whom they bring the hope of a. free land again.
Italians today, on both sides of the battlefront, are
risking their lives to help destroy the Nazi power. Peace-
ful men and women and children in the Nazi-occupied areas
are feeling the lash of Nazi brutality of the same kind as
that meted out to the people of Poland, of Czechoslovakia,
and of France. Military operations are ravaging all of
Italy as the Allied Armies push steadily north towards
Berlin. The Italian stake in a victory of the United
Nations is the same as the stake of freedom-loving people
all over the world.
Memorandum of the Secretary of the Treasury attached.
Regraded Unclassified
124
- 2 -
Since the liberation of Rome, new leadership, repre-
sentative of the organized political groups in liberated
Italy which have united to reestablish a free country,
has taken the reins of government. This anti-Fascist and
anti-Nazi government is leading the Italian people in
their support of our fight for freedom. It will need
help to feed its people, to clear away some of the ruins
of war, and to reestablish economic life so that the
Italian people can take care of themselves.
May the day soon come when Italy will regain her
rightful place in the family of nations.
Regraded Unclassified
125
3
MEMORANDUM FOR THE PRESIDENT
As you know, we will pay currently to the Western European
countries the dollar equivalent of the local currency which our
troops will be spending out of their pay in such countries, it
being traditional that the United States should not place the
burden of the pay of its troops on friendly countries.
In the case of Italy, however, we have not been paying the
Italians the dollars representing our troop pay. Instead, we
have been placing these dollars In & special account in the
Treasury, holding them with the thought in mind that they might
eventually be turned over for the use of the Italian people.
In view of the present situation in Italy, I suggest that
we now accord italy the same arrangement we are according the
Western European countries.
I recommend, therefore, that the dollars which we have
set aside in this special account representing troop pay be
turned over to the Italian Government and that from now on
dollars representing the pay of our troops spent in Italy
be paid currently to the Italian Government.
This step is particularly significant at this time
because of the need of Italy for foreign exchange with which
to pay for the necessary civilian supplies for its people
and to provide for the beginning of rehabilitation In liberated
Italy.
The Secretary of State and the Secretary of War concur
in this recommendation.
JED:HG:GB:ec 7/21/44
Regraded Unclassified
126
WHITE HOUSE
Press Release
I have today approved the recommendation of the Secretary
of the Treasury that the United States Government turn over to
the Italian Government the dollars corresponding to the expen-
ditures of our troops out of their pay end allowances in Italy
and that from now on dollars representing the pay of our troops
spent in Italy be paid currently to the Italian Government.*
These funds will be used for the purchase of assential
civilian supplies in this country for relief and rehabilitation
in Liberated Italy. Thus we will be according to Italy the
same arrangement as has been made with the Western European
countries.
We Americans have never regarded the Italian people as
our enemies. Our troops marched into Italy to free the Italian
people from the Fascist hoodluns who had enslaved them for
twenty-one years and from the German jailors who added the Nazi
whip to the Fascist chains in using Italy as a conquered province.
Our soldiers and sailors are being welcomed by the civilian
population wherever they go and are being assisted at every
step by Italian men and women to whom they bring the hope of
& free land again.
Italians today, on both sides of the battlefront, are
risking their lives to help destroy the Nazi power. Peaceful
mon and women and children in the Nazi-occupied areas are feel-
ing the lash of Hasi brutality of the same kind as that meted
out to the people of Poland, of Caschoslovakia, and of France.
Military operations are ravaging all of Italy as the Allied
Armies push steadily north towards Berlin. The Italian stake
in 4 victory of the United Nations is the same as the stake of
freedem-loving people all over the world.
Since the liberation of Rome, new leadership, fupresentative
of the organized political groups in liberated Italy which have
united to reestablish a free country, has taken the reins of
Memorandum of the Secretary of the Treasury attached.
Regraded Unclassified
127
- 2
government. This anti-Fascist and anti-Nasi government is
leading the Italian people in their support of our fight for
freedom. It will need help to feed its people, to clear away
some of the ruins of war, and to reestablish economic life so
that the Italian people can take care of themselves.
May the day soon come when Italy will regain her rightful
place in the family of nations.
JED:HG:GB:ec 7/21/44
Regraded Unclassified
12
CONFIDENTIAL
Regraded Unclassified
Report of the war Refuges Beard
for the Week of July 17 . July 22
CONDITIONS IN THE SATELLITE COUNTRIES
Minister Harrison has forwarded to us the text of his note
to the Swice Foreign Office, including the message on behalf
of this Government which the Foreign Office subsequently
transmitted to the Hungarian Government. The message trans-
mitted requested that the appropriate authorities in Hungary
"state their intentions with regard to the future treatment
to be accorded to Jews in ghottes end consentration camps,
particularly whether the Hungarian authorities contemplate
the imposition of diseriminatory reduction in food rations,
fireed deportations to Poland or elsewhere, or the adoption
02 other measures which, like those mentioned will be
tentemount to BRAB execution." The message consluded with
& reminder of the grave view which this Government takes
concerning the persecution of Jews and other minorities and
of our determination to ... to it that all those who share
the responsibility for such acts are dealt with in accordance
with the warning issued by the President in March.
Hungerian Anti-Semitie Measures Reportedly Modified
Board Representative NeClelland meanwhile advised us
that credible intimations have reached his to the effect that
the Hungerian Government has medified its unti-Jewish stand-
point. Certain concessions are said to have been made
already, including an indisation of the Hungarian regime's
willingmess to discuss with the International Red Cross the
enigration of children and possible measures or relief to
Jews remaining in Hungary.
This reported seftening of the Hungarian attitude was
confirmed in cables from Lisbon and Ankara.
Minister Harrison subsequently indicated that he had
been advised by the Swiss Foreign Office that authorization
has been given by the Hungariam Government for the departure
from Hungary of all Jews holding entry permits for other
countries, including Palectine. The Bvice Foreign Office
was said to have reseived this information through its
Legation at Budspest, which also reported that transit
through occupied territories was to be permitted by the
German Government.
129
- 2 -
The encouraging nature of these reports from abroad
have led us to increase our efforts to develop some program
through which there sould be made available so throatened
persons in Hungary the balance of Palestine cortificates
available, 5,000 V. 3. visiters visas, additional U. s.
immigration visas to persons entitled to non-quota or pro-
ference status and to persons to whom U. S. immigration visas
new expired were issued after July 1, 1941, along with a
comparable number of visas of the other American republics,
British dominions, and neutrals.
Swiss Propose Taking Children and Expectent Mothers
Another nessage from Harrison reported details of a
conversation held with MP. Pilet-Golax of the Swiss Foreign
Office. Although previous Swiss representations toward
obtaining permission for children to go to Switzerland from
German and German-occupied territory have thus far been
unsuecessful, MP. Pilot indicated that the Swiss are new
considering proposing to the Hungarian Government that 5,000
children and expectant mothers be permitted to go to Switser-
land. Should this prepesal be accepted, Harrison added, the
Swies would expect aid in arranging for the evacuation of
these refugees from Switzerland after the war.
with respect to the reports that depertations from
Hungary include some 400,000 persons, Mr. Pilet stated that
it is difficult to ascertain the exact figure, but that se
far 250,000 such deportations have been indicated by reports
to the Foreign Office. It was asserted that 80 percent of
the Hungarians were opposed to the arrests of jews carried
out by Hungarien authorities and the Gestape. In many
instances Hungarians are said to have been punished for
endeavoring to aid and protect Jews.
The concern of both the government and people of Switzer-
land over the fate of the Jews in Hungary was stressed by
Mr. Filet, who indicated, again in strictest confidence,
that the Swiss Government is facilitating communication
between interested groups in Switzerland and Jewish organize-
tiens in Hungary. The Swiss Minister in Budapest is under
instructions to leave the Hungarian Government in no doubt
as to the attitude of the Swice Government and Swies people
with regard to these persecutions. Mr. Pilot indicated that
a similar nessage had been eenveyed to the Hungarian Charge
d'Affaires in Bera.
Regraded Unclassified
130
- 3 -
with respect to Hungarian Regent Horthy, Mr. Pilet
indicated that while the Regent 1s said to have "washed his
hands" of all responsibility, Horthy had professed to be
opposed to the persecution of Jewn. The conclusion was
drawn by Harrison that Northy fears being named 88 one of
those responsible for these strocities.
In response to our proposal that the Owise approach the
Germans on the matter of improving the treatment of un-
assimilated civilian internees in Axis territory, Mr. Pilet
declined on the ground that such B. request would be resented
end might jeopardize present efforts of the International Red
Cross to furnish relief to the persecuted.
International Red Crose Appeal to Horthy
Harrison also indicated that the Swiss Foreign Office
had reported having transmitted a direct appeal from President
Huber of the International Red Cross to Horthy with respect to
the situation in Hungsry.
Nessages reaching us through private sources have con-
firmed the sending of e "handwritten" appeal to Horthy from
Intercross President Huber. This letter is said to have
enumerated known facts concerning the anti-Jewish persecutions
and to have offered to send a special Interoross mission to
Hungary to be present at deportations, to assist people with
medicines and food, and to exercise some control over the
ultimate fate of the deportees.
The New York Times on July 19 carried an article date-
lined Bern to the effect that, in response to President Huber's
message, the International Red Cross had received assurances
from Horthy that the deportation of Hungerian Jews had been
suspended and that Intereross might assist detained Jews and
aid in the evacuation of Jewish children. Another report
appearing in the Times on July 20 indicated that Intercross
had announced having obtained assurance from the Hungarian
Government of unrestricted transit for refugees through Axis-
controlled countries.
Harrison and HoClelland have been asked to forward to us
whatever information they can obtain with respect to these
reports.
British Newspaper Reports
Ambassador Winant has reported to us the substance of
various newspaper articles appearing in British papers
Regraded Unclassified
131
- 4
regarding the proposal the Germens are reputed to have made
recently to the effect that they would spare the lives of
the remaining Jews in Hungary in exchange for certain war
materials. All articles strongly condemned the proposal 86
blackmail and as a fantastic attempt to SOW suspicion among
the Allies.
WAR CRIMES
According to the Intergovernmental Committee representative
in Italy, records had been discovered there listing the names
of more than 15,000 individual refugees -- Yugoslavs who are
not Jews, Jews, and other persons -- who have been in Italy
at one time or another since war began, but whose present
whereabouts are unknown. Other available data were said to
give the names of refugees held at "free detention" places
and of those held in certain camps at various times. The
IGC representative suggested that notification be given Axis
authorities that this information is in the possession of
the Allies and that due punishment will be inflicted upon
those responsible for the 111 treatment or death of the
persons named.
In view of the joint agreement as to our respective fields
of action, the Intergovernmental Committee has referred this
matter to us. Information on this soore has also been sent
to the British Foreign Office E8 of possible special interest
to the War Crimes Commission.
We are asking Board Representative Ackermann, who 1a still in
Naples, to examine the records mentioned, if possible, and to
determine their usefulness either for the psychological
purposes suggested or for purposes of initiating action that
might result in the resoue or relief of persons whose names
and whereabouts may be available.
MERCY SHIP PROPOSAL
Myron Taylor has transmitted to us the substance of another
telegram sent to the IGC by its representative in Italy.
This cable described the organized deportation by the Germans
of Jews and other refugees from Italy to German concentration
camps for the ultimate purpose of their extermination.
The IGC representative suggested that the President of the
United States be approached "to intervene on behalf of these
persons in German camps and possibly for this purpose utilize
the Pope, if thought advisable, as intermediary." Under the
proposal advanced, the Axis would be asked to deliver to a
Regraded Unclassified
132
- 5 -
named port in the Nerth Atlantic all internees, including
stateless persons in particular. A mercy ship would be sent
to that port to carry on & shuttle service to some nearby
port in liberated Italy until all had been removed to safety.
Under this proposal threats would not be used; the invitation
itself would be "courteous and direct" and Germany would
merely "be informed beforehand that we hold the names of the
majority of those who were interned in Italy."
In & cable to London for the IGC, we are indicating our view
that any approach to the Germans should indicate the willing-
ness of the Allied Governments, with due regard for military
necessities, to consider measures for the reception in Allied
and neutral territory of any Jews in German-occupied territory,
including but not limited to deportees from Italy. The IGC is
being advised that this Government has, in fact, recently
indicated to the British our willingness to Join in such an
approach to the Germans. We are indicating that while we are
prepared to consider sympsthetically any plan designed to meet
the Italian problem referred to by the IGO representative, we
believe it to be more feasible for the intergovernmental
Committee first to determine the practical problems involved
and to discuss the matter with the British Government.
REPORTS DESCRIBE CONDITIONS IN GERMAN CONCENTRATION CAMPS
Through our Embassy in London we have now been furnished &
copy of the widely publicized report prepared by the
Czechoslovakian Government-in-Exile on the frightful
conditions prevailing in the German concentration camps
of Oswieozim and Birkenau. The first of these camps, it
was stated, was originally reserved for political prisoners,
and thousands of Germans, Czechoslovaks, Poles, and Russians
were kept there in "protective oustody." Professional
oriminals were subsequently added, and later, Jews from
the occupied countries.
During the period from April 1942 to April 1944 between
1,500,000 and 1,750,000 Jews were said to have been put to
death by gas or in some other way in these two camps. Half
of these victims were said to have been Polish, the others
being from Holland, Greece, France, Belgium, Germany, Yugoslavin,
Czechoslovakia, Itely, Norway, Lithuania, Austria, and other
countries. About 90 percent of the persons arriving in
Oswieczim and Birkenau were taken directly from the trains to
be put to death, it was said, while the others became inmates
of the camp, performing arduous labor in the vicinity and
serving &E human guines pige in some instances.
Regraded Unclassified
133
6
Death by gas was said to be reserved as the special
fate of Jews taken to the two camps, the gassing of Aryans
being carried out only in exceptional cases. Aryans were
said to be shot with pistols on a. special execution ground.
The deaths of still other thousands from hard work, typhus,
maloria, and other illness, and from 111 treatment were
described.
Another report, in sickening detail, concerning the
systematic extermination of Jews and other persons in the two
camps to which the Czechosolvakian report referred, was
subsequently transmitted to us by Board Representative No-
Cielland. McClelland's report was based upon the personal
experiences related by two Blovakian Jews who managed to
escape from these camps and upon the experiences independently
related by a non-Jewish politiesl internee who likewise
escaped from Devicesim. The names of a number of individuals
responsible for these persecutions were also forwarded by
NoClelland.
British Editorials Call for Retribution
Retribution for such Mazi savagery was discussed recently
in two British editorials, according to & communication from
Ambasander Winant. The News Chronicle concluded that the
only way of stopping such murders and persecutions 18 by
letting thes know that the ringleaders will not be allowed
to escape. The Daily Mail declared that terms of our "code of
retribution" should be hammered home to the Germans by all
possible means. Lists of those to be tried, it added, should
be distributed and broadcast all over Germany.
TEMPORARY HAVENS FOR REFUGIES IN THE UNITED STATES
Board Representative Ackermenn has reported having completed
the selection and processing of the refugees who are to be
given temporary havens in this country. A total of 985 refugees
were subsequently reported to have loft Italy in mid-July
aboard an Army transport, after modical inspection had been
completed at a camp near Naples. Incoulations for typhoid,
typhus, small pox, and tetanue were to be completed on ship
end at Fort Onterio. The clothing, health, and general condi-
tion of these refugees were reported to range from fair to
good. No cripples or serious ahronio cases were said to be
involved, though there may possibly be & few stretcher cases.
The Director of the Displaced Persons Sub-Commission meanwhile
advised Ackermenn that on additional 4,000 to 5,000 stateless
refugees can be expected to be found when Florence 1s liberated.
Regraded Unclassified
134
- 7 -
EVACUATIONS TO AND THROUGH PORTUGAL
James Mann has returned from Portugal and has brought with
his 5. copy of the agreement which was worked out in order to
eliminate conflict in the operations of various refuges
organizations operating in Spain and Portugal.
COOPERATION WITH THE BRITION
Ambassador Winant has advised us of the receipt by our Embassy
there of a letter from the British Foreign Office in response
to our proposal that additional transblockade supplies be
permitted certain neutral countries to meet the needs of
incoming refugees. The Foreign Office indicated that British
representatives have now approached the five neutral govern-
ments concerned and have also been directed to act in concert
with U. S. representatives in this matter.
Recort from Ankara
Board Representative Hirschmenn meanwhile advised us that
the proposed joint approach to the Turkish Government on this
score was discussed with his British colleague. Both were of
the opinion that at this time, joint action of the nature
suggested would not achieve the desired purpose and might in
feet tend to bring about the adoption of & less liberal policy
than that now being pursued by the Turks. In place of making
a joint approach, Hirschmann and the British representative
propose to take advantage of the first favorable opportunity
to emphasize the readiness of the U. B. and British Govern-
ments to assist Turkey, whenever it may become necessary, by
arranging the onward movement of refugees to other havens and
by making available food and other supplies as well as funds.
EVACUATIONS TO AND THROUGH TURKEY
In another communication from Ankara Hirschmann reported to
us his belief that the successful completion of the voyage of
the "S. S. Kazbek" indientes that the Rumanian Authorities
have undergone & change of heart in their attitude toward
the Jewish people in Rumania. Hirschmann stated that all
reports indicate that they are being more helpful in further-
ing the emigration of Jews from Rumania via Turkey to Palestine.
Hirschmann also indicated that he had been informed that
instructions were sent to Turkish border guards in May of this
year by the Turkish authorities, calling for the admission
into Turkish territory of refugees attempting to cross the
border illegally from Bulgaria. These instructions were said
to have been issued after written assurance had been given by
the British Ambaesador that Palestine immigration certificates
Regraded Unclassified
135
- B -
would be issued to those arriving in this way. It was said
that 11 or 12 refugees who presented themselves at the Turk-
ish border during May and early June were permitted to enter
Turkey, after being detained and investigated by the police.
Hirschmann vas informed by B. representative of the Jewish
Agency, however, that later in June seven additional persons
tried unsuccessfully to cross the border. Despite efforts
made in Ankara to have affirmative instructions sent to the
border authorities, these refugees are said to have been sent
back from the frontier. Hirschmann indicated that at the
present time no persons are entering Turkey illegally by this
route. The attitude of the Turkish officials in this matter
seens to be that it 10 dangerous from the point of view of
Turkish security to open the border indiscriminately because
of the difficulty involved in distinguishing between genuine
refugees and political agents. Hirschmann indicated his
intention of pressing our request that Turkish frontier
authorities permit the entry of refugees from Bulgaria.
Counselor Kelly of our Embassy there subsequently stated that
in view of the assurance given 88 to the availability of
Palestinian entrance visas for all Jewish refugees who reach
Turkey, he was requesting that the Turkish Foreign Minister
instruct Turkish consule in Bulgaria, Rumania, and Hungary to
issue without prior reference to Ankera individual or collective
Turkish transit visas to any Jewish refugees who may apply,
and also that he instruct the authorities at Turkish frontier
posts to permit Jewish refugees to enter Turkey and proceed
to Istanbul, irrespective of the means by which they arrive
at the frontier, and even though they arrive at the frontier
without Turkish visns.
"Bardaland" Claim Being Pressed
Despite the statement transmitted by Minister Johnson to
the Swedish Foreign Office with respect to our intention of
withholding action on the preliminary indemnity claim present-
ed by the owners of the "Bardaland" pending submission of &
final itemized claim, the Swedish Foreign Office has renewed
the owners' request for a preliminary payment of some $20,000.
The owners of the "Bardeland" are said to have indicated
that a full itemization cannot be made until the "Bardaland"
arrives at Gothenburg toward the end of July, It was said
that the total indemnity to be claimed was not likely to
exceed approximately $30,000.
EVACUATIONS TO AND THROUGH SPAIN
According to 8. communication from Madrid, as & result of
representations made by our Embassy there, the Spanish Govern-
ment has authorized the issuance of visas to 500 Jewish
Regraded Unclassified
136
- 9 -
children in Hungary whom Jewish organizations in Tangier
hope to transfer to temperary refuge in Spanish Morocco.
It was stated that the Spanish Legation in Budapest has
been instructed to do everything possible to facilitate the
travel of this group to Spain. It was also understood that
the Vatican has requested papal representatives in Berlin
and Budapest to use their good offices to the same end.
Proposal To Close Camo Lyautey Opposed
Through Ambassador Winant and Sir Herbert Emerson of the
IGC we were advised of a suggestion made by the IGC represents-
tive in Algiers that Gamp Lysutey, which now holds 600 persons,
be closed. In the opinion of the IGC representative, as a
result of the improving international situation no more
large contingents of refugees are to be expected. The costly
maintenance of an organization designed to care for 2,000
persons 1s therefore, he felt, not justified. The IGC
representative further asserted that the local management
of the camp had recommended closing it and transferring the
600 inmetes to existing camps in Egypt and Palestine and to
other countries willing to receive them.
The IGC replied that the question of the future of the
camp is one primarily for the U. 5. and British Governments
in consultation with French authorities. While the IGC had
no instructions to give, it stated its feeling that any
decision to close the camp now would be premature.
We are indicating to Winant our full agreement with the
IGC position. Such a suggestion 18, in fact, difficult to
understand, in view of the necessity for caring for increas-
ing numbers or refugees escaping from enemy territory and in
view of recent decisions to expand at once existing refuges
facilition in the Middle East and to open new camps in
French North Africa, Tripolitania, and at Fort Ontario in
this country.
EVACUATIONS TO AND THROUGH SWITZERLAND
Board Representative McClelland has advised us that a census
has now been completed of refugee children presently in
Switzerland for whom overseas emigration in considered
desirable after the war, including those arriving both
before end since January 1, 1944. It was stated that the
organizations to whom the children have been entrusted have
begun 2. careful selection of children based on the verious
countries of destination. McClelland indicated that within
two months, these organizations are expected to start
presenting children to our consulates for the special U. =.
immigration visas that have been authorized. it WGB
Regraded Unclassified
137
- 10 -
estimated that the total number, however, would not exceed
500. McClelland added that, unfortunately, owing to other
circumstances, the availability of these visas has encouraged
only slightly the arrival of more children from France.
In another communication from Bern we were advised that some
505 refugee children entered Switzerland from France between
January 1 and June 7. The number would have been considerably
greater, it was thought, had it not been for the upset
conditions in areas along the Franco-Swise border, especially
the disruption of all regular transportation in France.
Discussions Continue Re Cuban Acceptance of Child Refugees
Ambassador Braden has asked us to supply detailed informa-
tion 8.8 to the procedure which would be followed in making
available for the support of some 1,000 refugee children the
funds which the American Jewish Joint Distribution Committee
has agreed to supply, should the Cuban Government agree to
their entry. Braden added that, despite continuing discussions
with Cabinet officials and with the President of Cuba, he has
not yet been able to obtain a definite acceptance of the pro-
posal.
Evacuation of Norwegians to Sweden
In response to our recent request for & report as to the
total amount, in the dollar equivalent, of free currency, if
any, sent into enemy territory during the period ending June 1
under the Treasury license authorizing such expenditures, if
necessary, in accomplishing certain evacuations from Norway
to Sweden, Johnson and Olsen promptly indicated that virtually
no free exchange had been made available to Norway.
On the basis of a more detailed report subsequently filed
with Johnson and Olsen covering activities in Norway, we were
advised that of the $50,000 originally received, approximately
100,000 Swedish kronor were used to purchase 328,000 Norwegian
kroner. This Norwegian currency was said to have been
purchased locally from Norwegian refugees who had brought the
currency to Sweden, and it was stressed that there could be no
possible benefit to the enemy from these transactions. of
this Norwegien currency, approximately 50,000 kroner have been
sent back to Norway through the underground for relief purposes,
including the support of families of persons in concentration
camps.
As a result of these operations, substantial numbers of
Norwegiane have been enabled to escape to Sweden. It was
reported that during June about 850 Norwegisne made such
escapes, despite a severe tightening of border controls.
Regraded Unclassified
138
- 11 -
During July Norwegian refugees are said to be arriving in
Sweden at the rate of approximately 65 e day.
Some 10,000 youths who failed to respond to the Nazi
labor mobilization are reported to be hiding in the forests
in the vicinity of Ocle. Funds supplied by American Relief
for Norway are likewise assisting in maintaining these youths.
Other expenditures include the purchase in Sweden of food,
clothing, and shoes for severe hardship 08000 in Norway.
RECOGNITION OF LATIN AMERICAN PASSPORTS
Minister Harrison has reported that, in response to our request
that Switzerland obtain detailed information concerning the
treatment of Jews in Hungary and as to the fate of Jews holding
Latin American documentation in particular, the Swiss Foreign
Office stated that since Switzerland 10 charged only with the
protection of Uruguayan and Chilean interests in Hungery, it
is unable to obtain the detailed information requested except
as regards Jews holding documents issued in the name of these
two republics.
The Swies Legation at Budspest has indicated that thus far
Hungerian authorities appear disposed to accord exceptional
treatment to such foreign nationale under Swine protection.
It was stated that the obligation to wear the Jewish star
end to declare property had thus been dispensed with, insofar
88 these persons were concerned, and reductions in food rations
had also been svoided. In the opinion of the Swiss Legation,
all Jews able to demonstrate foreign nationality would be
spared anti-semitie action on the basis of requests from their
protecting power.
Exchange Plans Being Hade
The State Department has now advised our Embassy in Madrid
that definite indications have been received through trusted
channels that the Germen Government 10 nov disposed to cooperate
in effecting exchanges on Spanish territory of German nationals
from South America against refugees from German-controlled
territory. It 1s proposed to send the refugees involved to
Comp Lysutey. The State Department has suggested that our
representatives in Madrid investigate the possibility of
making arrangements at Medrid and Algiors, with Spanish and
French authorities and with the military, whereby special
treatment might be given refugees included in official ex-
changes whose bone fides may possibly be less open to question
than those of refugees appearing on Spanish territory as &
result of their own efforts. while several alternatives were
suggested, State indicated that it is not particularly interest-
ed in the setual devised, but is more conserned that this
Regraded Unclassified
139
- 12 -
Government's program to resoue threatened persone shall not
be imperiled by any leck of material arrangements in Spanish
territory for their reception and prompt onward transportation.
Representations Made to Brazilian Government
We have been advised by our Subassy in Brazil that
representations have been made to the Brazilian Government
urging conorete action on the part of Brazil in line with the
exchange standards resolution adopted by the Emergency Advisory
Committee for Politieal Defense at Montevideo. In these re-
presentations emphasis was placed upon the attitude expressed
last year by Dr. Aranha to the effect that it might be a good
thing for Brazil to get rid of E. large number of Germans there.
Report from in Balvador
From E1 Salvador we have been advised of the text of & note
sent by the Balvadoran Foreign Minister to the Emergency
Advisory Committee. in this note it was stated that there
are only a few Balvadorans in German territory. Outside of
Germany there were us13 to be five Salvadorans who should be
repatrinted. The Salvadoran note promised that direct negotia-
tions would be begun with respect to the repatriation of these
Calvadorans.
Cuban Action Promised
As n. result of further representations by Ambassador
Braden, the Cuban Minister of State has now agreed to supplement
Cube's original representations concerning the return of
deportees to Comp Vittol, by directing the Cuben Embessy in
Madrid 10 request that the protecting power inform the German
Government that Cuba will not permit the validity of any of
its passporte to be questioned by the Germane. It was also
indicated that the Cuban Government now agrees to consider as
exchange material all holders of documents issued in Cuba's
name, although the right is reserved to refuse admission to
such passport holders as Cubs may later prefer to exclude.
We have communicated to our Embeesy in Madrid the sub-
stance of Braden's communication, along with a request that
efforts be made to speed the Cuban representations.
Since some confusion existe as to whether the Cuban
representations should be made through Spain as Germany's
protecting power in Cuba, or through Switzerland as Cubs's
protecting power, clarification has been requested.
Halti Agrees To Act
We have been edvised by our Embassy in Halti that the
Haitian Government has likewise agreed to issue instructions
Regraded Unclassified
140
- 13 -
to its Legation at Bern to inform the German Government through
Swies authorities that Haiti recognizes the validity of all
its passports held by persons in enemy or enemy-occupied
territory until an examination of each case shall have been
made. This applies to those persons who were unable to comply
with the decree-law of February 1942, as well ss to those
persons holding documents whose validity 1s open to doubt.
While this decision has yet to be confirmed in writing and
will require the approval of the Haitian Council of Ministers,
no difficulties were anticipated.
It was emphasized that Halti's notion on this soore 18
purely 8. humanitarian measure, and that Halti likewise reserves
the right to refuse to admit any such persons subsequently hold
to be undesirable as immigrants.
NEW RELIEF PROPOSALS RECEIVED
Board Representative NeClelland has relayed so us the substance
of a memorandum submitted by the International Red Cross on
certain critionl clothing requirements of civilian prisoners
in German concentration camps. To date, Intercross has not
undertaken to send clothing to such civilian prisoners and
therefore has no information based on practical experience with
this type of relief. The possibility of such clothing dis-
tributions was to be investigated more fully by Intercross,
and a further report 1a expected.
Polish Helief
Johnson and Olsen have explored with 6. relief group in
Sweden the nature of its activities in Poland, as well as
facilities for expending the scope of its operations. At the
present time, this organization 10 said to be receiving urgent
requests from Poland for substantial additional amounts of
clothing for children, as well 8.8 for basic foodstuffs and
vitamins. We were advised that funds to meet these require-
ments in full are lacking, and that immediate use could be made
of $25,000. The Polish Legation in Stockholm hee spoken
highly of the effectiveness of this organization's activities
and has expressed the strong hope that American financial
assistance can be obtained.
COOPERATION WITH THE INTERGOVERNMENTAL COMMITTEE
The Intergovernmental Committee has now agreed to assume
certain credit obligations for previously scheduled European
reseue and relief activities. Arrangements have been made in
this connection whereby the JDC is to not 8.9 an agent of the IGG.
(Signed) J. Febre
J. V. Pehle
Executive Director
Regraded Unclassified
141
AIRGRAM
AMERICAN EMBASSY
SAN JOSE, COSTAT RICA
CONFIDENTIAL
JULY 22 . 1944
REC'Ds JULY 25, 8 -
SECSTATE
WASHINGTON
to 460 July 22 1944
Reference Embassy's Airgram A-390, June 16, 10 Memo
concerning the possibility of Costa Rica's receiving
refugee children.
The Embassy and the Costa Rican Government have
received several requests for information as to whether
or not children would be coming to Costa Rica and it
would be appreciated if an answer to the airgram under
reference could be expedited.
TRUEBLOOD
848
LDW/vw
Regraded Unclassified
142
CABLE TO AMBASSADOR WINANT, LONDON, FOR SIR HERBERT EMERSON FROM THE
DEPARTMENT AND WAR REFUGEE BOARD.
Myron Taylor has transmitted to the Department the substance of
a telegram dated July 15th sent to the Inter-Governmental Committee,
London, by Sir Clifford Heathoote-Smith.
The cable in question as understood by us describes the organized
deportation by the Germans of Jews and other refugees from Italy to
concentration camps with the ultimate purpose of their extermination.
This shooking action of the Nazie in Italy is typical of the mirderous
extermination campaign which has been carried out in all occupied
territory and which today is being executed on a large scale in Hungary.
This Government has in recent months made clear to the world,
that it is prepared, in cooperation with other sympathetic governments,
to find havens of refuge for all vistims of this persectuion who are
able to leave German occupied territory. This policy of our Government
was enunciated by President Roosevelt in his statement of March 24th
as well as in his recent message to Congress announoing the bringing
of 1,000 refugees to this country.
The situation described in the cable in question appears to be
another aspect of the general problem and, while it is quite possible
that many of the deportees from Italy have already been executed, this
Government will cooperate in any way with the British Government and
other Governments in facilitating any feasible plan of action. Heathcote-
Smith's suggestion apparently would involve an approach to the German
Government asking them to release refugees deported from Italy and to
deliver such refugees to allied authorities at a North Atlantic port
whence they would be returned to Italy or taken to temporary havens
of refuger alsewhere.
It is our view that any approach to the Germans should indicate the
willingness of the allied governments, with due regard to military
necessities, to consider measures for the reception in allied and neutral
territory of any Jews in German occupied territory, and should not be
limited to deportees from Italy. This Government has recently advised
the British Government of its willingness to join in such an approach
to the German Government. However, we are prepared to consider
sympathetically any plan designed to meet the Italian problem referred
to by Heathoote-Smith. In the circumstances it would appear most feasible
for the Inter-Governmental Committee to determine the practical problems
involved and discuss the matter with the British Government.
Regraded Unclassified
143
- 2 -
We would appreciate being informed of further developments in this
matter.
It will be appreciated if Emerson will make available to Ambassador
Winant the cable from Heathoote-Smith in order that Winant may be fully
informed.
Repeated to Myron Taylor, Vatican City.
3:20 p.m.
July 22, 1944
JBF:AA:MJMsro
7/22/44
Regraded Unclassified
144
SECRET VIA COURIER
A-237
9:00 A.M.
July 22, 1944
AMEMBASSY,
PORT-au-PRINCE
The following is from the War Refugee Board.
Please convey to the Minister for Foreign Affairs the
deep appreciation of this Government for Haiti's attitude and
contemplated action as indicated in your A-369 of July 12.
It is assumed that Haitian authorities are aware of the urgency
of the situation and will act as promptly as possible. It is
also assumed that the examination of documents issued in
Haiti's name, referred to in your A-360, means examination by
Haiti and that this point will be made clear in the instruct-
ions to the Haitian Legation at Bern.
HULL
glw
WRB:MMV:OMH
CCA
7/20/44
Regraded Unclassified
145
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, Madrid
TO:
Secretary of State, Washington
DATED:
July 22, 1944
NUMBER: 2562
SECRET
With reference to Department's message of July 17, No.
2003, five members of Fleurima family departed from Madrid for Lisbon
for embarkation on DROTTNINGHOLM this evening via rail.
Rather than as outlined in final paragraph of Embassy's
No. 2396 of July 10, all expenditures for necessary personal expenses,
rail transportation and subsistence for family from July 1 to date
will be charged to authorization contained in Department's message of
July 6, No. 1914, in view of Department's cable Number 2003 of July 17.
In line with Department's Number 1814 of June 26, promissory note
covering those advances has been executed,
BUTTERWORTH
DCR:GPW
7-25-44
Regraded Unclassified
146
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
July 22, 1944
NUMBER: 2510
SECRET
FOR McCLELLAND FROM WAR REFUGEE BOARD.
New York Times of July 19 carries article datelined Bern
to effect that Intercross has received Horthy assurances
that deportation of Hungarian Jews is suspended, that Intercross
may assist detained Jews and collaborate in the evacuation of
Jewish children. Please advise the Board promptly of the accuracy
of this report and of any pertinent information in connection
therewith. Subsequent cable will discuss points contained
your 4599 of July 18.
0
THIS IS WRB BERN CABLE NO. 89.
HULL
Regraded Unclassified
147
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMERICAN LEGATION, BERN
TO:
Secretary of State, Washington
DATED:
July 22, 1944
NUMBER:
4692
SECRET
See messages 2440 and 2438 from the Department of
the seventeenth of July.
It is made possible by the refuges status both Antoine
Brier and Hubert Clement in Switzerland for them to receive
openly and officially Swiss franc equal to $20,000 from friends
of Luxembourg and $90,000 from Wilhelmina fund. For remittance
to Brier and Clement, who seem to be recommendable and capable
disbursing agents, these funds can be transmitted confidentially
through Legation.
This nessage is from McClelland for WRB.
HARRISON
DCR:MLG
7-24-44
Regraded Unclassified
148
MAN-991
Ankara
Distribution of true
reading only by special
Dated July 22, 1944
arrangement. (SECRET-W)
Rec'd 10:50 p.m.
Secretary of State,
Washington.
1343, July 22, 2 p.m.
FOR PEHLE WRB FROM HIRSCHMANN
Ankara No. 104
FOR YOUR INFORMATION. There is now in active
operation an organized underground movement for trans-
portation of refugees across the border from
Hungarylinto Rumania. No figures regarding the
actual number who have crossed into Rumania by this
method are available for obvious reasons, but we are
reliably infomred that 600 to 700 refugees from
Hungary are now in Budapest, including Polish refugees
who had fled from Poland via Slovakia to Hungary
during the past 12 to 18 months. In addition, refugees
from Hungary estimated to number 700 to 800 are now
hiding in frontier towns, mainly Arad and Turdu, 15
to 20 miles within the Rumanian border. A small
number of the Jewish refugees arrived on their own
initiative from Koloshwar, most of the remainder
having proceeded from Dudapest with the assistance of
the orgaization above referred to.
After the arrival of these refugees in Rumania,
Baron von Killinger. German Minister to Rumania,
brought pressure to bear on the Rumanian Government
to enact a decree to the effect that anyone escaping
across the Rumanian border would be executed by the
Rumanians forthwith. This decree was spacted and
actually published in Rumania. It has also appeared
in the press in Istanbul.
KELLEY
DU
MBM
Regraded Unclassified
149
FBM.981
Ankara
Distribution of ture
reading only by special
Dated July 22, 1944
arrangement. (SECRET-W)
Rec'd 1:03 p.m.
Secretary of State,
Washington.
1343, July 22, 5 p.m.
We are informed that the Rumanian Government has
not enforced the decree but is requesting the Jewish
organisations in Rumania to arrange for the evacuation
of the refugees from Hungary at the earliest possible
moment. I have urged the branch of the organization
of the Jewish agency charged with sea transportation
of refugees from the Balkans to arrange that the refugees
from Hungary be given priority if possible.
The Rumanian Government is reported not to be
interferring at the present time with the escape of
refugees from Hungary into Rumania in the manner referred
to above. From my observations here, this escape route,
while frought with dangers, offers at the moment the
best means of evacuation of appreciable numbers of
refugees from Hungary. The requisites for the utilization
of this route are: One, carefully chosen personnel; two,
tacit acquiescence of Rumanians, and three funds for the
documentation, feeding and clothing of the refugees and
the subsidising of "agents".
The WRB will undoubtedly desire to encourage the
acceleration of this movement. While funds are apparently
now available for the enterprise in its present scope we
are urging that it be expanded without delay, in such
event additional funds may be necessary on short notice.
While we have made no commitments for funds relating
to the above, it may be desirable and necessary in due
course to do so. For this purpose, I shall be able to
draw on the 2000 sovereigns placed at my disposal in
Ankara.
KELLEY
WMB HTM
Regraded Unclassified
150
FROM:
AMERICAN EMBASSY, ANKARA
TO:
Secretary of State, Washington
DATED:
July 22, 1944
NUMBER: 1344 (Ankara No. 105)
SECRET
This message is from Hirschmann for Pehle, WRB.
Concerning the refugee movement to Istanbul from Bulgaria
by sea and rail developments of a promising nature are under way.
This is for your information.
The memorandum's contents which were prepared by me have
been transmitted through an intermediary in the confidence of the
highest officials of Bulgaria, to Balabanoff, the Minister to
Turkey from Bulgaria, who with the Bulgarian officials in Sofia
has discussed the subject. I asked in this memorandum that the
authorities of Bulgaria give authorization and facilitation without
delay to movement of refugees through or from Bulgaria to Turkey
by rail of not less than 500 individuals weekly; to give authorization
and assistance without hinderance to the movement of refugees by
ship from the ports of Bulgaria; and to issue an ordinance stating
that all persecution and repressive steps directed against Jews
and minorities will cease at once and Jews will be accorded
treatment like that of other citizens of Bulgaria. An interview
with me has been requested by Balabanoff in regard to my requests
since his return to Ankara, Plans are being made through the
International Red Cross for this conference at the earliest
possible time. Reliable information has been received by me that
the Government of Bulgaria is ready to reverse its previous
policy and facilitate the movement of the refugees within the
limitations imposed by the chaotic transportation and technical
facilities of Bulgaria.
With regard to this two Bulgarian ships in Burgas, the
PIRIN capable of carrying 400 passengers and the VITA, 350
passengers, have been trying for some time to acquire permission
to proceed to Istanbul from the Turk and Bulgarian officials.
Attempt is being made by us to effect the departure of these vessels
at once and to make plans for other ships to make similar trips.
Furthermore, we are attempting to arrange for the transportation
of an appreciable number of refugees to Turkey by railroad. Of
additional measures and progress you will be informed.
KELLY
DCR:MLG
7-25-44
Regraded Unclassified
151
DEPARTMENT
INCOMING
DIVISION OF
OF
COMMUNICATIONS
STATE
TELEGRAM
AND RECORDS
HMK-698
Canberra
This telegram must be
3 3 copies copies to
paraphrased before being
Dated July 22, 1944
communicated to anyone
other than a Government
Rec'd 4:07 a.m.
agency. (RESTRICTED)
Secretary of State,
DEPARTMENT OF STATE
Washington.
DIVISION OF
JUL 22 1944
US Urgent
COMMUNICATIONS
NIACT 85, July 22, 2 p.m.
AND RECORDS
Minister for External Affairs has just informed me
that on assurances given Department's telegram number 83,
July 20, 5 p.m., he had obtained Cabinet's assent to instruct
Australian delegate to sign final act of the United Nations
Monetary and Financial Conference. Such an instruction
he said had been sent.
As regards resolution adopting the articles of agree-
ment of the fund and the bank Evatt states that it was the
opinion of Cabinet that matter had gone as far as it should
among officials. I understood him to mean by this that be-
fore accepting resolution matter would have to be thoroughly
canvassed by Australian Cabinet.
I gather that Evatt mus some opposition even to
signing of final act because of impression created by a
broadcast attributed to Morgenthau who is said to have adopt-
ed the attitude that 44 countries participating in the con-
ference had agreed to and accepted the results of the confer-
ence.
HTM
JOHNSON
Regraded
152
DEPARTMENT
INCOMING
DIVISION OF
OF
COMMUNICATIONS
STATE
TELEGRAM
AND RECORDS
NCB-944
PLAIN
London
Dated July 22, 1944.
Rec'd 8:56 p.m.
Secretary of State,
DEPARTMENT OF STATE
Washington.
JUL 2 41944
COMMUNICATIONS & RECORDS
JMISION OF
5817, Twenty-second.
FOR SECRETARIES OF STATE AND TREASURY
The following is a review of London press comment of
July 22 on the Bratton Woods Conference.
The TIMES correspondent, writing from Washington,
reports that "it is a fair assumption that the various
delegations will submit the documents to their govern-
ments without recommEndations for adoption, but merely,
in the words of Lord Keynes as 'the most acceptable'
instrument they could frame."
HE mentions the following issues which lay behind
the conferences work: the reconciliation of national
and international aims; the conflicts between the interests
of industrial and agricultural countries and between
advanced and retarded areas and devastated lands. HE
also mentions the one "closed Economy" whose presence
prevented the question of private versus public Enterprise
from arising "though it did not discarnibly EXERT the
centripatal pull which some had Expected."
This
Regraded Unclassified
153
-2-#5817, Twenty-second from London.
This correspondent then raises a question which hE
asserts only the operation of the schemes can decide,
namely, whether the managers will bE lEft free to USE
Expert knowledge and Experience or would serve "Ambassador-
ily."
HE further reports that the submittal of the bank
and fund to Congress will have to wait till January 1945
and Eventhen approval is unlikely for several months,
and concludes "it seems inconceivable that this programme
will, at its inception, do more than to leave American
tariffs where they are with promise of reduction and of
freer trade as the levels of domestic Employment permit.
No government should do less, but Equally no government
would dare to disragard the American's ingrained fear
of imports by doing more until the future looks brighter
than it does."
The FINANCIAL NEWS headlines its report "money fund
agreed: Russians wish to cooperate" and starts by stating
that agreement followed Lord KEynes' appeal for unity
made to countries which had registered objections to their
quotas. This paper reports that only France and Russia
moved their objections to bE ratined in the minutes.
It also reports the Australian delegation's refusal to
sign the bank document and that "observers believe that
the Australians are not satisfied with the quota allotted
to them
Regraded Unclassified
154
-3-#5817, Twenty-second from London.
to them (200) and have declared that they will not sign
unless they have special instructions from their Govern-
ment."
Russia is reputed to have accepted a compromise on
its bank quota so that the Quota Committee may now complete
its recommEndations. Mention is also made of Mr.
Stephanov's long speech on Russia's desire to cooperate
with the United Nations on monetary and financial matters.
The resolutions on silver of commission o 3 are
quoted and observers are said to have suggested that a
further conference in Mexico City may bE held to discuss
the silver problem.
The modified Norwegian resolution on the liquidation
of the BIS is quoted. The legal difficulties confronting
Britain and Holland in severing relations with BIS before
the End of the war are mentioned.
The FINANCIAL TIMES Bratton -Woods correspondent
reports that the Plenary Session adopted the report of
the Fund Committee, but took a "blanket Exception" to
the report. It is stated this simply means that it is
left to the respective governments to make the final
decisions.
Regarding special reservations the article adds-
"some countries took special EXCEPTIONS, including
Britain
Regraded Unclassified
155
-4-#5817, Twenty-second from London.
Britain, whose reservation underlined her desire to
maintain London's position as the traditional world
financial centre, although the conference had decided
that the fund should bE located in the country with the
largest "-Othat is, the United States."
The reservations by Russia and France as to gold
contributions, and the latters quota, are mentioned, as
WELL as India's reservation regarding sterling balances.
It is stated that reservations of several countries in-
cluding China, Greece and Egypt, were withdrawn as result
of Lord KEYNES' plea.
The article reports that the Australian delegates.
do not SEEM to bE satisfied with their quota and may
delay signing the final documents pending special in-
structions from their government.
With reference to the World Bank, the article states
that the Russians have agreed to a compromise contribution
to the bank.
The article quotes the three resolutions accepted
by Commission (Three?) and mentions the possible
Mexican Silver Conference and the broadaning
of the functions of the Interallied Committee in London
on acts of dispossession.
The financial aditor of the MANCHESTER GUARDIAN
points out that substantial agreement has been reached
on the fund and the bank and devotes the rest of his
remarks
Regraded Unclassified
156
-5-#5817, Twenty-second from London.
remarks to the location of their handquarters, "a point
that has been much discussed in London." HE observes
that "presumably the central offices of the fund will bE
in the same place, as the two bodies have to work clostly
together. Whether the choice will fall on NEW York is
still unknown. It is observed here that NEW York has
long tried to develop a large money market and capital
market in competition with London. To a certain Extent
the Efforts have succeeded, but it cannot be seriously
said that NEW York was EVEr regarded as the worlds banking
centre or that it was at any time prepared to assume
the responsibilities which go with such E. position. Now
the distinction may bE conferred upon the American
finance capital from outside. It would not please the
bankers, because the World Bank will bE a government
affair; it would certainly add prestige to the NEW York
loan market.
Oscar Hobson, financial Editor of the NEWS CHRONICIE,
discusses the subject of Axis, looting which has been
considered by the conference. Hobson points out the
difficulties involved in restitution and states that
the Allied powers "must not shrink from applying Economic
sanctions after the war to neutral countries that refuse
to cooperate in this task of rastituting stolen property.'
The FINANCIAL NEWS for July 21 reports the appoint-
ment of the following members of a committee of the
NEW York
Regraded Unclassified
157
-6-#5817, Twenty-second from London.
NEW York State Bankers Association; Messrs George
Whitney, William C. Potter, Gordon S. Rentschler, Percy
H. Johnston, D. S. Inglehart and Charles Disfendorf.
The purpose of the committee is "to study the results
of the Bratton Woods Conference and submit a report to
bankers, commerce, industry and the general public
The article adds "it is hoped that the findings may
actually bE the answer to the question 'what plans will
American bankers agree to question. The article
reports that the Committee promises "a completely fresh
approach without regard to = 'udices that may now Exist
in banking and Elsewhere.
WINANT
HTM
Regraded Unclassified
forget
158
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, London
TO:
Secretary of State, Washington
DATED:
July 22, 1944
NUMBER:
5822
SECRET
ATTENTION OF THE SECRETARIES OF STATE AND TREASURY.
Undoubtedly you are acquainted with Lord Beaverbrook
and his approach towards world economic problems also. Not-
withstanding, I thought I might pass on to you a few remarks
on Beaverbrook's attitude toward the monetary conference,
in view of his presence at this time in Washington.
The DAILY EXPRESS, which has the largest circulation
of all British dailies, the EVENING STANDARD, and the SUNDAY
EXPRESS are controlled by Beaverbrook. Ever since the publi-
cation of the British white paper these newspapers have been
quite consistently antagonistic toward the fund, although the
character of this antagonism has not been analysized specifically.
A summarization of this antagonism might be as follows: (1) op-
position to the status accorded gold in the fund proposal and
perhaps more broadly to the limitations which the fund might
place on the pursuit of an independent monetary policy by
Britain and (2) a strong impartiality for Empire preference
and fear what the implications of the fund may be for the future
of the sterling bloc and for the commercial policy of the Empire.
Viewed
Regraded Unclassified
159
-2 -
Viewed from the economic standpoint, Beaverbrook's strong
advocacy of the elimination of government controls and full
-return to private enterprise, of home production of food by
support of home agriculture and of no return to the gold
standard, the foregoing is consistent with his reputation as
an "Empire isolationist."
In portraying the fund as a return to the gold standard
in the sense in which Beaverbrook visualises that term, it may
be that the opportunity will present itself for you to have a
talk with Beaverbrook and to persuade him of his misconception.
If you can persuade Beaverbrook that the fund will not mean
the economic fragmentation of the Empire, I am also sure that
it would be of value. May I also extend to you my congratula-
tions on the success of the conference at Bretton Woods.
WINANT
Regraded Unclassified
160
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
The American Embassy, Moscow
TO:
The Secretary of State, Washington
DATE:
July 22, 1944
NUMBER: 2705
SECRET
The following message is from Mr. Harriman to Mr.
Morgenthau.
I have been formally advised in a letter from Vyshinski
that the delegates of the U.S.S.R. were authorized to deal
with the questions at issue at the conference at Bretton Woods
as was reported in my message of July 17, number 2622. If I
could be advised of the results of the negotiations with
them it would be helpful. Please accept my congratulations
on the conference's splendid outcome. Best regards to you.
HARRIMAN
DCR:MPL
7/22/44
Regraded Unclassified
161
DEPARTMENT
INCOMING
DIVISION OF
OF
COMMUNICATIONS
STATE
TELEGRAM
AND RECORDS
BJR - 747
Chungking via Navy
This telegram must bE
paraphrased before bEing
Dated July 22, 1944
communicated to anyonE
other than A Government
Rec'd 10:49 a.m.
Agency. (SECRET 0)
DEPARTMENT OF STATE
Secretary of State,
JUL 26 1944
Washington.
DIVISION OF
COMMUNICATIONS & RECORDS
1269, July 22, 10 a.m.
SEGRETARY OF TREASURY FROM FRIEDMAN
K.K. Kwok of Central Bank has requested ME to
urge Expediting of gold shipments. Available supplies
sufficient to continue sales only until about August
15. Net sales at present about 4,000 OZ. pEr day.
Selling price is now CN 17,500 per oz. Kvok says
that one shipment (presumably usual amount of Equiva-
lent of United States dollars one million) if it
arrived before August 15, would bE sufficient to
allow continuation of sales and to assure market
of Central Bank's ability to meet demand for gold.
Kwck says that discontinuation of gold sales would
further stimulate rise in commodity prices.
I understand that H81 TE-Mou 18 raising this
matter with Trfasury.
GAUSS
EH:WMB
Regraded Unclassified
162
NOT TO BE RE-TRANSMITTED
COPY NO.
11
SECRET
OPTEL No. 238
Information received up to 10 a.m., 22nd July, 1944.
1. NAVAL
NORMANDY. 21st. Strong north-easterly winds stopped
unloading and convoy sailings from PORTSMOUTH and the THAMES. On
19th/20th about 100 German aircraft were minelaying off NORMANDY
landing area. On 20th one of H.M. Destroyers was sunk by mine or
torpedoed. A U.S. tug was sunk by fire from ALDERNEY shore batter-
ies. On 20th/21st MTB' 5 sank two trawlers and probably another
off Dutch Coast. On 21st/22nd one of H.M. Destroyers damaged an
Elbing Class Destroyer in company with three >boats off CAP D'
ANTIFER.
2. MILITARY
NORMANDY. Heavy rain for the last 24 hours has con-
siderably restricted movement. On 20th Canadian troops captured
ST. ANDRE and ST. MARTIN, south of CAEN. Strong German armoured
counter-attacks have since been repulsed.
ITALY. Polish troops have advanced to within 2 miles
of the River MISA. Italian troops have captured villages 6 miles
northwest and 8 miles southwest of JESI and U.K. patrols have reached
SASSOFERRATO. U.K. troops have advanced between one and two miles
north of AREZZO, LATERINA and MONTEVARCHI and South Africans have
gone forward about same distance north of MONTE SAN MICHELE. U.S.
troops have cleared the area between LEGHORN and PISA to within
2 miles of latter.
RUSSIA. Russians have captured OSTROV, are closing in
on BREST LITOVSK from northeast and southeast and have crossed BUG
on 40 miles front, cutting road and railway between BREST LITOVSK
and CHELM. They have advanced further in LWOW Sector and west of
TARNOPOL.
3. AIR OPERATIONS
WESTERN FRONT. 20th/21st. Tonnages: COURTRAI 1,642,
BATTROP 515, and HOMBERG 730. Preliminary interpretation photo-
graphs HOMBERG show very heavy damage throughout entire synthetic
oil plant,
21st. U.S. heavy bombers dropped total 455 tons on
aircraft works REGENSBURG, OBERPFAFFENHOFEN and NEUABING (MUNICH),
and 350 on ball bearing works SCHWEINFURT (results good to excel-
lent) and EBELSBACH; 1,309 tons were dropped on other objectives
including MUNICH and SAARBRUCKEN. German casualties 18, 2, 11.
Ours 31 bombers, 11 fighters missing. 7 Mosquitoes and 1 Beau-
fighter cooperating with Naval forces off BREST destroyed 6 German
bombers. Offensive operations of A.E.A.F. severely restricted by
weather.
21st/22nd. 84 Bomber Command aircraft despatched in-
cluding 38 Mosquitoes to BERLIN; 1 aircraft missing. 43 Beaufighters
attacked a 26-ship convoy off HELIGOLAND. Preliminary reports
state one large ship blew up, 2 others and 3 escort vessels left on
fire and many others damaged.
ITALY. 20th. Thunderbolts destroyed 2 bridges and
damaged 2 more in PADUA area.
CZECHOSLOVAKIA, 21st. U.S. heavy bombers from
Mediterranean dropped 300 tons on synthetic oil refinery BRUX near
PRAGUE.
4. GERMAN ACTIVITY
During 24 hours ending 6 s.m., 22nd, 204 flying bombs
plotted, including 18 from direction of Dutch Islands Regraded Unclassified
163
Read by Mr. Gaston and Mr. Glasser on 7/24/44.
Read by Mr. D. T. Bell on 7/25/44.
Regraded Unclassified
164
July 24, 1944
1:05 p.m.
HMJr:
Hello.
Operator:
Now, they find he has gone to lunch and will be
back about two-thirty.
HMJr:
Well, I'll talk to him then.
Operator:
All right.
3:18 p.m.
Operator:
Here you are.
HMJr:
Hello.
Ed
Brown:
Hello. Mr. Morgenthau, this is Ned Brown. I'm
sorry to say that when I got here -- that Will
Potter had gone to the hospital
HMJr:
Oh.
B:
with phlebitis Saturday night.
HMJr:
Oh.
B:
However, I had a meeting with Gene Stetson, who
is chairman of the board of the Guaranty, and
Lynn Conway, who is -- rejoices in the title of
vice president of the executive committee, but
has really got more authority, and George Whitney
of Morgan and Company and have spent all morning
and recently a couple of hours more with them. This
idea of this committee which originated with Potter
and of which Potter was chairman, was to get a group
together who were not in any way committed for or
against the plans.
HMJr:
Yes.
B:
Presumably it might include the heads of banks
and technicians that have been against the plan.
HMJr:
Yeah.
Regraded Unclassified
165
- 2 -
B:
And they told me that while they couldn't commit
themselves in advance, they wanted to make an
objective study of it and they approached it with
the idea of making a favorable recommendation if
they could, and
....
HMJr:
Well, that sounds good.
B:
which is all very much to the good.
HMJr:
Yeah.
B:
Now, I don't know what the outcome will be in case
of -- if they -- Sloan Colt, who is president of
the Bankers and George Whitney and Orsey Johnson
and Bill Potter
....
HMJr:
Yes.
B:
who is chairman, have all accepted -- on the
committee.
HMJr:
Yes.
B:
Gordon Rentschler of the City Bank is out of town.
HMJr:
Yes.
B:
And I don't know whether he'll accept or not. I
haven't been able to get in touch with him. Aldrich
has declined to serve on their committee, although
he was asked.
HMJr:
He declined to serve?
B:
Yeah. Well, you know his general attitude towards
HMJr:
Yeah.
B:
anything that comes from the Democratic Adminis-
tration, so I think it's just as well that he did.
HMJr:
Yeah, I think so, too.
B:
Now, they've put on a fellow named Iglehart from
Grace and Company
HMJr:
Yes.
Regraded Unclassified
- 3 -
166
B:
....
that they say that while he's been opposed
to the plan, that he's a man who's intellectually
honest
HMJr:
Yes.
B:
and they thought it was just -- he's very
anti-British.
HMJr:
He's what?
B:
He's anti-British.
HMJr:
Oh.
B:
But you know Grace. I mean they're virtually on
the west coast of South America.
HMJr:
Yeah.
B:
And -- but they've put him on deliberately on the
old Lincoln principle that they'd rather have a
person on the inside "pissing" out than on the
outside "pissing" in.
HMJr:
Yeah.
B:
I think it's -- I don't know what the outcome will
be but I'm sure they're going to try and make a
study and the previous position -- if they can, to
find in favor of the plan. I happen to be now --
I ran into Leon Fraser in the street -- in the
first New York.
HMJr:
Yes.
B:
Who just called back and I'm speaking from there,
but I'm
HMJr:
I see.
B:
They left me alone in a director's room. I
HMJr:
Any comments on my radio talk?
B:
No. I didn't hear any comment on that.
HMJr:
Yeah.
Regraded Unclassified
167
- 4 -
B:
But I'm sure that both George Whitney, who is
president of Morgan, and Will Potter
....
HMJr:
Yes.
B:
they both believe in international cooperation
and they both realize the -- the great seriousness
of rejecting this plan as part of the general move-
ment towards it.
HMJr:
Yeah.
B:
And I think that -- I'm sorry that -- Will sent his --
Potter sent his apologies to me but he pulled his
Archilles tendon and as the result of a masseur or
something, he's got a blood clot in his leg
....
HMJr:
Oh - oh.
B:
and phlebitis, and he's very wise to go to the
hospital
HMJr:
Yeah.
B:
and have it hung up, but he's apt to be out of
circulation for two or three weeks.
HMJr:
Yeah.
B:
In the meantime his officers from the Guaranty are
carrying on.
HMJr:
Yeah. Well, of course, this is just for your ears.
Will Potter is worth ten of Stetson.
B:
Yeah. Well, I know Potter intimately. I've known
him for thirty years
HMJr:
I don't know whether you agree
B:
to be
HMJr:
I don't know whether you agree with me or not.
B:
I do entirely.
HMJr:
Yeah.
Regraded Unclassified
168
- 5 -
B:
And Will Potter carries more weight in the New
York banking community than any other three men
put together.
HMJr:
Now, what I would appreciate -- if you would keep
in touch with me personally as we go along on
this.
B:
All right. I'll call you up from Chicago. I want
to get a few days' rest. I've been at this thing
day and night
HMJr:
Well
B:
since the first of June.
HMJr:
I know.
B:
I wanted to call you up and I told these New York
bankers as soon as -- Sloan Colt is out of town
until next -- two weeks.
HMJr:
Yeah.
B:
He's one of those who agreed to go along with the
bankers. Gordon Rentschler won't be back here for
another week.
HMJr:
Yeah.
B:
I don't know whether he'll go along or not.
Although, I rather think he will. He -- I told
him I'd come back and sit down and talk with
him if he wanted to and
B:
Well, I'm ever so much obliged. I'm sorry I
missed you on Saturday when you called.
B:
Oh, that's all right. I just wanted to come in
to pay my respects before I left and I knew you
were tied up and I just didn't want you to think
I'd run away without trying to say, "Goodbye", at
any rate.
HMJr:
What did you think of our Russian friends at the
end there?
B:
Well, I think they were damn smart. I'm rather
sorry that he did it.
Regraded Unclassified
169
- 6 -
HMJr:
(Laughs)
B:
I think it would have been easier to have cut down
their drafts on the bank if they hadn't
....
HMJr:
Yeah.
B:
Politically, I think it's all to the good.
HMJr:
Yeah.
B:
It makes the people feel that we've won a diplomatic
victory and I'm awfully glad that we accepted them
at nine hundred million. If we'd ever have put them
in at twelve hundred when they said nine hundred was
the limit, why
....
HMJr:
Yeah.
B:
they'd never --- they would have, I think,
backed out of the whole thing. I think it was a
very, very happy outcome.
HMJr:
Fine. Well, ever so much obliged for the tremendous
time and thought that you put into the thing.
B:
Well, thank you very much.
HMJr:
Ever so much obliged.
B:
You bet you.
HMJr:
And I'll be looking forward to seeing you soon.
B:
All right.
HMJr:
Thank you.
B:
Bye.
Regraded Unclassified
170
July 24, 1944
3:15 p.m.
GROUP
Present: Mr. Olrich
Mr. Pehle
Mr. O'Connell
Mr. Glasser
Mr. Gaston
Mr. Blough
Mr. D. W. Bell
Mr. C. S. Bell
Mr. Haas
Mrs. Klotz
Mr. Sullivan
H.M.JR: John, if you have nothing better to do, will
you pick me up at eight-thirty tomorrow morning?
MR. SULLIVAN: Yes, sir. I would just as soon wait
until then!
H.M.JR: You want me to send for you?
MR. SULLIVAN: No, I have a car.
H.M.JR: I would like to get the gossip from Chicago.
MR. SULLIVAN: We better make it earlier than that.
H.M.JR: Can't do it in half an hour?
MR. SULLIVAN: Yes, we can.
H.M.JR: Dan?
MR. D.W. BELL: Mr. Henry Laughlin, who is Chairman
of the United War Fund of Boston, wrote you on the thirteenth
and asked for a conference. I acknowledged it in your
absence and said that you wouldn't be back until this week,
Regraded Unclassified
171
-2-
and I thought you probably would take some time off after
that and probably couldn't see him. I asked him in case
you were not able to see him, would he discuss his problems
with Ted Gamble and me.
(Secretary holds telephone conversation with Mr.
Ned Brown)
H.M.JR: The gist of that conversation was that Brown
had been in New York. Potter has gone to the hospital with
phlebitis and he will be out of the running on this committee
to study this thing we did at Bretton Woods. He says their
attitude is that they want to go at it with the hope that
they can make a favorable report, and he seems to think
J. P. Morgan will be for it.
MR. D.W. BELL: Is Potter on that?
H.M. JR: He is head of the committee. He says he is
glad Aldrich refused to go on the committee, because they
only want people without a preconceived notion who would
study it objectively. Therefore he was glad Aldrich
refused to go on. But he said the impression up there
was that they were going to study it objectively with the
hope they could be favorable.
Brown says Potter is going to be all right. He said
he thought what the Russiens had done was dammed smart!
MR. D.W. BELL: I don't think you need see Laughlin.
He wants to try and find out whether or not the Boston War
Fund can run concurrently with the Sixth War Loan. Ted
and I will talk to him.
H.M.JR: Sure.
MR. D.W. BELL: Mr. Stettinius wrote you on the
seventeenth and wants a Treasury man designated to work
with the State Department in connection with the
Interdepartmental Editorial Board to pass upon reports
going to the United States field missions and on current
Regraded Unclassified
172
-3-
economic operations. I take it you would want either
White or somebody from White's office on that.
H.M.JR: Somebody from White's office.
MR. D.W. BELL: They meet at least twice a month
to go over the reports.
H.M.JR: Somebody like Ness?
MR. GLASSER: Or perhaps Hoffman.
MR. D.W. BELL: Mr. Glasser, the boys have written
up & memorandum for the President on the use of those
funds for Italy. You remember we discussed that before
you went away and also got up at the same time a proposed
press release to come out of the White House to take the
place of the suggested report to Congress? I think you had
better take this and read it. You might want to discuss
with us tomorrow sometime this French situation and you
might do this at the same time.
H.M. JR: I tell you what we could do. I am going to
see Mr. Hull tomorrow at eleven. I ought to be back by
eleven-thirty. Should I see you about the French before
I see Mr. Hull?
MR. D.W. BELL: Not necessarily.
H.M.JR: Why don't I put you down for eleven-thirty
and you can ask Fitz when I get back.
MR. D.W. BELL: Then, if you have time to read this
you might want to discuss that at the same time.
H.M.JR: I will. Is that about all?
MR. D.W. BELL: Mr. Glasser and I have to be at the
War Department at four 'clock.
H.M.JR: All right.
Regraded Unclassified
173
-4-
MR. GLASSER: May I raise one point in connection
with reparations? I got back to the office and found a
request from the State Department that we assign someone
to work with State and FEA on the problem of reparations,
detailed study they are making of reparations. Is there
any objection to our participating on a technical level?
H.M.JR: As a matter of fact, we were thinking of
bringing in this economist from Agriculture on that
particular thing.
MR. OLRICH: Silvermaster.
H.M.JR: Yes, we were thinking of bringing him in
to do just that. Do you have Silvermaster?
MR. OLRICH: Yes, sir.
H.M.JR: Do you like him?
MR. OLRICH: Yes, sir.
H.M.JR: Want to get rid of him?
MR. OLRICH: No, sir.
H.M.JR: This, most likely, is a very old story, one
of Harry White's, about the Oklahoma Indian who wanted to
educate his son so he could learn really good English. He
got ahold of this Oxford professor. So he said, What can
you do for my son?" "I can only do one thing", he said,
'teach him English provided you give him to me for one year
and he will just have to live with me for one year. So
the father said, "All right". At the end of one year he
came around to call on the Oxford professor. He knocked
on the door and the Oxford professor came out and said,
"How".
MR. OLRICH: Mr. Secretary, you have the idea I don't
want to release him, though.
Regraded Unclassified
174
-5-
H.M.JR: All right.
You are talking about wanting Silvermaster. The
answer is "How". No. There is a letter here, also,
which came in from Taylor of London which you fellows
ought to get together on. There is a commission of five
going to France, all Treasury people, to work on currency.
I gave it to White or somebody. Is Taylor asking for
somebody? He asked whether he couldn't have DuBois.
MR. D.W. BELL: We didn't see that.
H.M.JR: I think I gave it to you to bring up in
Washington; (speaking to Charlie Bell) it is a letter
or cable from Taylor asking that we send somebody over.
Of course while I was up there Luxford said that if any-
body had any ideas on DuBois to forget it, because while
he didn't put it like this,
he hoped he would be
free to spend most of his time selling Bretton Woods to
the country and that DuBois could step into his shoes so
he would be free to devote himself from now until the
time it goes through Congress, which I would like Luxford
to do. I mean, I would like Luxford to be in a position
where he could devote most of his time to seiling, now
we have gone through this terrific uphill pull to get it.
You are not playing poker with me, are you?
MR. O'CONNELL: No, just listening.
H.M.JR: Anyway, Dan, all of this I am throwing at
you, because I am not going to be around very much for the
next couple of weeks. Think it over, but I very much want
Luxford to be in a position where he can devote most of his
time. Pehle is overstaffed, anyway.
MR. D.W. BELL: We can't spare many more people to
go abroad.
H.M.JR: But I mean as far as DuBois is concerned.
They have to do a lot of drafting.
Regraded Unclassified
175
-6-
MR. D.W. BELL: He has been working with Harold and
me on this French thing.
H.M.JR: Continue doing that so Luxford can be free
to devote himself to merchandising what we have done at
Bretton Woods. Somebody has to do that besides White
MR. D.W. BELL: I think we are going to lose another
good man, Tom Lynch.
H.M.JR: Where is he going?
MR. D.W. BELL: He is being offered 8 position with
the Aeronautical Chamber of Commerce as their counsel.
They are building up their organizations here for post-
war work.
H.M.JR: Of course what I think we ought to do--
somebody prepared me a list of a dozen men that White
has lost to the Army and Navy. I think we ought to pick
one of those men and send him to Taylor and let him go to
France.
MR. PEHLE: Southard is one of the best.
MR. GLASSER: Southard is Chief Finance Officer for
Southern France operations, so he isn't available.
H.M.JR: But I think, Dan, if you don't mind, it is
throwing so much at you, but if you would get ahold of
this thing and talk with White and the rest of them, I
would not let this thing wait around too long, because the
English won't wait. I see they are putting an Englishman
in charge of ANG. Did you give me that list?
MR. C.S. BELL: Yes, sir.
H.M.JR: Charles Bell can dig up a list of a dozen
people that left White for the Army and Navy who would be
delighted to be sent to France on a mission like that. It
is a swell job, if you could find the letter.
Regraded Unclassified
176
-7-
MRS. KLOTZ: All right.
H.M.JR: It is on a thin sheet of paper. It came
up from here. I would look over that list and I would
pull in two or three of those fellows and have them on
hand and let them freshen up on Treasury matters and then
when these things come in, you could throw them out. It
is a darned sight better working in France than sitting at
a desk here. Herbert?
MR. GASTON: I could give you some more developments
on the FBI matter sometime when you want to listen to them.
H.M.JR: I haven't been angry in three weeks.
MR. GASTON: I have had them for sometime but I thought
I wouldn't annoy you. There is nothing very urgent about it.
H.M.JR: I was amused by that report that Cliff Mack
sent me up on this case of Schraffts, where our undercover
man saw the FBI fellow coming in and threw him out. Was
it you who sent me that?
MR. OLRICH: Yes.
H.M.JR: When the FBI man got on the scene, they threw
him out.
(Mrs. McHugh hands Secretary letter from Mr. Taylor
requesting Treasury personnel)
MR. GASTON: I don't think you have heard the rest
of that. This man 0' Rourke came in and didn't identify
himself and asked for Kenyon and went away again. Murphy
of the Intelligence Unit, to whom our man Coyle who was
in Kenyon's office reported, called up the FBI and asked
if Mr. O'Rourke was in and identified himself. Then the
FBI man asked the District Attorney how we knew that
0' Rourke was an FBI man. Coyle explained he was 8 fine
strapping young fellow, and what else could he be but an
FBI man, not being in the Army.
Regraded Unclassified
177
-8-
H.M.JR: You ought to let Cissie Patterson have a
hundred pictures of the FBI men. I didn't see her
editorial but I saw the comments in Times Magazine.
MR. SULLIVAN: She has another article today
refuting Mr. Hull's statement.
H.M.JR: If you gave them four thousand FBI men she
could fill a Sunday edition full of them. That's very
funny.
MR. GASTON: We had another case that you might
not mind hearing about.
The FBI worked on the fellow and the Revenue Agent
tried to get him. They filled the office of the tax-
payer up with three or four FBI men that scared him off.
Then they tried to get the District Attorney to give him
a warrant and they had nothing but the taxpayer's un-
supported statement that he had been asked to pay a bribe
and the District Attorney wouldn't give a warrant. In the
meantime another taxpayer had made 8 complaint to the
Intelligence Unit and the Intelligence Unit laid a trap
for the fellow and got him and got his confession. The
same man. They didn't know the FBI had worked on the case.
H.M.JR: As long as you keep it in 8 light mood it is
all right. When you need me, let me know. I never did
read the report on Secret Service.
MR. GASTON: Then there is that other political case,
the El Paso Collectorship.
H.M.JR: Well, at a dinner for General DeGaulle--
have I told you about my conversation with the Senator from
Texas?
MR. GASTON: Connally?
H.M.JR: Yes. It made pleasant conversation. I
said, "Well I hope that you are pleased that we held up
the appointment of the Collector for El Paso pending your
Regraded Unclassified
178
-9-
decision", and in a voice that you could hear from the
Carlton, certainly to the Mayflower, he said, "I want
to know who this fellow Hannegan is. Who the hell does
he think he is! What are they going to do, run the
United States Senate?" Well I said, "He happens to be
Chairman of the National Democratic Party". "Who brought
him in there is what I want to know. They tell me it was
Roosevelt". Well I said, "And so what". "Well, it is
about time that he found he is an upstart from Missouri
and can't run the United States Senate", and he went on
and DeGaulle looked around. So finally I had to and said,
"Well I don't know how you feel, Senator, but I think
Mr. Hannegan is a very fine fellow". He shakes his head,
and oh my God, it was something! That is the last I have
heard of him.
MR. GASTON: I suggested somebody rather than
we decide which State is to get that position.
MR. SULLIVAN: I had breakfast with Tom on the way out
and he never mentioned it.
H.M.JR: Believe me, he mentioned it. DeGaulle
certainly got & lesson in American politics there, if he
could understand it.
MR. GASTON: There is nothing going to happen until
Congress gets back, anyway. But that office is in bad
shape down there. We can't very well reorganize it until
we get a good collector.
H.M.JR: Mr. Olrich?
MR. OLRICH: The Army has appointed a full-time
liaison man between Treasury, Procurement and the Army
and surplus is beginning to move in our direction, sellable
surplus, and our inventory now has reached fifty million
dollars. We are selling inventories at the rate of better
than three million dollars a week.
H.M.JR: That's about the same as before.
Regraded Unclassified
179
-10-
MR. OLRICH: Yes.
H.M.JR: But you are getting more material.
MR. OLRICH: We are getting more and we are moving
it.
H.M.JR: Will you and Charles Bell want to see me
between now and Thursday noon?
MR. OLRICH: I would like to make it today or tomorrow
because I have to go to Chicago tomorrow night.
H.M.JR: Three o'clock tomorrow. Charles Bell and
Olrich.
MR. OLRICH: If there is any chance of making it in
the morning, I would like it, because I have an opportunity
to visit with Harold Stassen on his return from the
South Pacific at three o'clock tomorrow.
H.M.JR: Ten o'clock?
MR. OLRICH: Yes, sir.
H.M.JR: Anything else?
MR. OLRICH: No, sir.
H.M.JR: Any of these appointments I am making in
the next few days you can sit in on. You are invited.
MR. D.W. BELL: You think I had better sit in on
this one?
H.M.JR: Yes, because he is making some fairly important
decisions I think you ought to know about.
Herbert?
MR. GASTON: I don't have anything more.
Regraded Unclassified
180
-11-
MR. O'CONNELL: In connection with the discussion
& few moments ago on personnel. Do I understand from
what you said to Dan that your interest in the personnel
in my office has been assigned to Dan, for the moment at
least?
H.M.JR: No, Dan is Acting Secretary.
MR. O'CONNELL: I know.
H.M.JR: I am not going to be around here enough to
sit down and talk these things out.
MR. O'CONNELL: Well,I haven't heard anything in the
last three or four weeks about what was happening to personnel
in my office, except as Dan told me of your talk with him
on the phone with DuBois. I would like to be as clear as
I could as to who I was to look to to see what to do about
people who work for me.
H.M.JR: When I am here, myself. When I am not here,
Bell.
MR. O'CONNELL: When you are here, would it be all right
for me to ask that you deal with me about matters involving
my personnel?
H.M.JR: Yes, but I don't consider myself here these
few days. But I would be very glad to sit down with you
and Bell, because I just sort of feel I am a transient here.
MR. O'CONNELL: I don't think I have probably made
myself very clear, but I would like to talk to you about
the General Counsel's personnel when you are here some
day this week.
H.M.JR: I will give you three o'clock tomorrow. I
am a transient here for the next couple of days. I will
be away again for sometime, and therefore I was just doing
it this way to make things easy for myself.
MR. O'CONNELL: Surely.
H.M.JR: Cheer up, Joe.
Regraded Unclassified
181
-12-
MR. O'CONNELL: I will wait until three o'clock
tomorrow afternoon.
H.M.JR: Don't take things too seriously.
MR. O'CONNELL: I will still wait until three o'clock
tomorrow afternoon.
H.M.JR: But I would like Bell in on that.
MR. O'CONNELL: Perfectly all right with me.
H.M.JR: I couldn't work any harder than I have with
this thing coming on top of a war loan. It is about all I
could swing so I would try once a day to talk with Bell and
that is about the only person I did talk to, though I did
have to transmit a lot of messages to a lot of people
through Bell. I think that is good organization, anyway.
So don't have your feelings hurt.
MR. O'CONNELL: I am not talking about that. I will
still reserve it until three o'clock tomorrow.
H.M.JR: Anything else?
MR. O'CONNELL: These are small matters. Do you
remember a couple of weeks ago you sent 8 letter to Congressman
Dies in connection with the tax returns he had asked for?
We are still the winner, so far as I know, in that we have
never had an answer from Congressman Dies and that is about
the most desirable result we could have hoped for. It is
nearly three weeks now and at least we puzzled him, which I
think was the result we wished to reach. I sent you a
memorandum on my discussion with Mr. Markham which you may
not have had a chance to read in connection with the sale
of the APC property. I think at your convenience you might
read the memorandum. The conference wasn't entirely
satisfactory, but at least they have made known definite
deals with respect to private sales of APC property,
except 8 tentative deal on American products. General Aniline--
no deal yet and they are still exploring the question of
selling them competitively, but the cards are a little
Regraded Unclassified
182
-13-
stacked again competitive sales, I believe. I couldn't
prove that. I have given 8 copy to McConnell and there
are some avenues he may be able to explore and a.
little later we can tell you more about them. That's all.
H.M.JR: Glasser?
MR. GLASSER: I have nothing.
H.M.JR: Glasser, on the recommendation of White, I
am very glad to give you this.
(Secretary hands Mr. Glasser promotion letter)
MR. LASSER: Thank you.
H.M.JR: You have earned it.
George?
MR. HAAS: You probably noticed if you looked at those
figures, that the E Bond quota is slightly below the beam
and if it is made it will be right on the nose. Everything
else is up.
H.M.JR: I hope it isn't Durante's nose!
MR. GASTON: It looks a bit sticky.
MR. HAAS: The other thing is that you have a very big
total, but the bank financing problem when the returns are
in, is probably in excess of eight and a half billion.
H.M.JR: Indirect?
MR. HAAS: Yes. That is the switching and the bank
loans for Government securities. You are not completely
surprised at that, because we had to get a large figure in
the total.
H.M.JR: Don't say that, George!
Regraded Unclassified
183
-14-
MR. HAAS: This is all within the room.
MR. GASTON: George, it will be less than all the
columnists have announced anyway. So what difference
does it make?
MR. HAAS: I am just telling Mr. Secretary we did
a lot of figuring.
H.M.JR: I haven't read except one column and some-
body told me about that; this fellow wrote and said that
Senator Wagner sent down six suits every day to be pressed
and I sent only one every three days.
As a matter of fact, I don't think there was a
tailor up there, was there?
MRS. KLOTZ: No.
H.M.JR: I want to say in my whole experience in
Government, I never worked with a group who worked so
well together as the American Delegation. I never had
so much satisfaction in the complete team play on the
part of the American Delegation. Not once any double-
crossing or any side remarks to the press and that
goes for the Republican Congressman and Senator as well
as the Democrats. There was no interference from
Washington of any kind. The State Department played
ball a hundred percent.
I had to call the President once, because the
State Department was worried about having the Fund
located in America. The President said by all means.
Regraded Unclassified
184
-15-
And I had to call Mr. Hull once because the State
Department people were worried about what we were
doing about the BIS. Mr. Hull backed me up on
that a hundred percent.
So I only had to ask the President once and
Hull once and there was no message of any kind out
of Washington to us. I don't think I will ever have
that experience again, as long as I am in Government,
and that is the American Delegation with the other
Delegation. It was as really a fine spirit as I
have ever seen.
I have never been to & conference before, but the
spirit was wonderful and I think it is very good for
post war. Certainly we set & pattern, which is some-
thing for the rest of these conferences, and if the
peace conference would take this as 8 model--this
may sound immodest, but we worked out a way of working
with Congress which was just perfect.
A man like Congressman Wolcott told the New York
Tribune reporter in my presence, there wasn't a
single thing happened at this conference that the
American Delegation participated in that he did not
know about.
He said, "I don't care how secret, there was nothing I
didn't know about or have a part in, so it was
a very unique experience and I don't think the
rest of my life will I ever have another one like
it.
Regraded Unclassified
185
1/d
- 16 -
MR. HAAS: On war loan drives.
H.M.JR: You sounded political for a minute or two,
George.
MR. HAAS: No, this isn't political. I don't think
on the next drive you can safely commit yourself so far
in advance as to the quota or timing of it. I am just
mentioning it here now, because--
H.M.JR: Well, Bell knows my schedule. There are
only two people who know--Bell and Mrs. Klotz; if you
people want anything, you will have to talk with Bell.
MR. HAAS: We have discussed it.
H.M.JR: I am here until Thursday afternoon. If
anybody wants to see me, I am available.
MR. D. W. BELL: I don't think we can discuss that
for some time.
MR. HAAS: Unless you are liable to say something to
the press--that's the only reason I am saying it now.
MR. D. W. BELL: May Harold and I be excused?
H.M.JR: Yes. I am sorry.
(Mr. D. W. Bell and Mr. Glasser leave conference)
MR. HAAS: The only other thing I have is that while
you were away Dan sent over to the Budget Bureau - they
requested him to advise revenue estimates for this report
they are supposed to issue August 1. For the next fiscal
year it is around something in excess of forty-five billions
for tax and other receipts.
H.M.JR: Which will make a deficit of what?
MR. HAAS: I don't know, because I don't have their
revised expenditure.
H.M.JR: I'd like to know what the deficit looks like.
Regraded Unclassified
186
2/d
- 17 -
MR. HAAS: I don't think they have it all together yet.
H.M.JR: Also, I'd like to know what the forty-five
billion means, because somebody said that the thing was
going to be about fifty percent--or we'd get about fifty
percent, rather.
MR. O'CONNELL: You will. The receipts are above the
estimates.
H.M.JR: Somebody wrote an editorial--I guess it was.
in Time Magazine--to show how wrong I was in everything
that I had asked for. I had asked for fifty percent; the
wrong was that I was going to get fifty percent, but I
wasn't getting it from Congress, so therefore I was all
wrong.
MR. HAAS: These other figures aren't available.
MR. PEHLE: Things have eased up very considerably.
H.M.JR: Come closer; I can't see you or hear you.
MR. PEHLE: The situation in Hungary which was so
bad has changed very considerably in the last ten days.
Whether it will last that way, we are not sure; but we are
doing everything that can be done to keep it that way.
Why they changed, of course, you will never know; but we
were putting a lot of pressure on them and all the neutrals
were and the Vatican was. And in addition to that, the
Russian advances are obviously going to make an impression
sooner or later. But they have come around a great deal,
and the Roumanian situation is much better, too. As a
matter of fact, about ten days ago a boat came out of
Roumania with over seven hundred people on it. There
hadn't been anything out for some time. So things are
looking up very substantially.
H.M.JR: Did you see what Mark Clark did in his
statement on that broadcast from the synagogue in Rome?
MR. PEHLE: Yes, I did.
H.M.JR: Will you send that in to Mrs. Klotz? That
was a wonderful thing. It was the first broadcast from
Regraded Unclassified
187
3/d
- 18 -
Rome. It really was a wonderful thing.
MR. GASTON: Was that in the papers or was it private?
H.M.JR: I read it in this morning's Times.
MR. PEHLE: It was on the national hook-up, too.
H.M.JR: But things have let up?
MR. PEHLE: Very considerably.
H.M.JR: That is fine. You can let a couple of lawyers
go back to Joe!
MR. PEHLE: I haven't anything else.
H.M.JR: I can't make Joe smile.
I see that Mr. Ruml--and not General Rommel--has
again got a plan.
MR. GASTON: He has the Treasury's 1936 plan, I think!
MR. O'CONNELL: Just about!
MR. HAAS: Not all of it, Herbert.
MR. BLOUGH: On that post-war tax front, we are
continuing to work very amicably with Mr. Stam. I am not
promising that will remain the case forever, but it has
continued so thus far. We are starting tomorrow to have a
series of conferences with outside groups like the one
Mr. Ruml represents to talk about their post-war tax pro-
posals.
We have a good understanding with Mr. Stam that
there will be no publicity from the Government on those
meetings; what the private people will do we can't control,
but we can control pretty well what we do. It may be you
will be asked about them, but it is part of a plan that we
are going ahead with--the Twin Cities group tomorrow,
Committee for Economic Development Friday, Mr. Ruml's
group on August 2, and so forth. That will continue
Regraded Unclassified
188
4/d
- 19 -
throughout the month of August.
We are also continuing to work with the other groups
in the Executive branch, including Ben Cohen and repre-
sentatives from Budget, Federal Reserve, and Judge Vinson's
office. I think that while there is no very great tangible
progress to report to date, things are going quite well
and we will have some material for the committee probably
a week from Wednesday, when we get some figures from Budget.
On another matter, if the situation is beginning to
arise where people can be gotten out of the Army, I have
a man thirty-seven years old in the Army whom I'd like
very much to have--if the situation should open up along
that line.
H.M.JR: Mr. Bell is listening.
MR. C. S. BELL: That is Ecker-Racz that Mr. Blough
wants. The Army has spent a lot of money training him.
MR. O'CONNELL: He is in Italy, isn't he?
MR. BLOUGH: No, he is in England, and it is my
understanding that the Army would not object to his being
put on inactive service.
H.M.JR: Well, it is a little bit different from what
I was talking about--people sitting at desks here in
Washington going to France.
MR. BLOUGH: That is quite right. I don't know how
long he will be in England.
H.M.JR: It is another thing to bring a fellow from
England or France back to sit at a desk here.
MR. BLOUGH: I quite agree. If he isn't going to
become a desk-sitter, I don't want him back.
MR. C. S. BELL: That works all right with the non-
commissioned personnel; but with the commissioned personnel
it is & little demoralizing now to start pulling them out.
The war isn't over.
Regraded Unclassified
5/d
189
- 20 -
H.M.JR: Like this Lt. Commander in the Navy,
Southard, who has been assigned to us now for two years
in Navy uniform.
MR. C. S. BELL: This fellow is on the other side.
H.M.JR: I won't go along on that.
MR. BLOUGH: Well, I wanted to take it up with you.
H.M.JR: That is Lend Lease in Reverse! If I can
pull a couple of people off desk jobs here in Washington
and send them over to France, that is something else.
MR. BLOUGH: Well, if the situation changes so he is
no longer in England, I'll bring the matter up again.
H.M.JR: Okay.
Is Paul working with you?
MR. BLOUGH: He is working with us on an informal
basis. Mr. Bell felt - and I think he is right - that
Mr. Paul ought not to attend these meetings which
Mr. Stam attends, because Mr. Stam will get the idea there
has been no change in the Treasury set-up.
H.M.JR: Which Mr. Bell?
MR. BLOUGH: Mr. Daniel Bell.
But I have talked to Mr. Paul about once a week in
the last month. We are continuing to work with him.
H.M.JR: Is Mr. Sullivan kept posted?
MR. BLOUGH: Mr. Sullivan has been posted on devel-
opments - perhaps not enough.
MR. SULLIVAN: I have attended a few of the meetings.
H.M.JR: He ought to be, and so should the Commissioner
of Internal Revenue.
Regraded Unclassified
190
6/d
- 21 -
MR. BLOUGH. Yes.
H.M.JR: This isn't exactly in your line, but you
are the only economist here.
MR. HAAS: Thanks for the promotion!
H.M.JR: I think of you as a statistician.
MR. HAAS: I think I qualify at both ends.
H.M.JR: Anyway, no offense was meant.
MR. HAAS: Not at all. I'm just thanking you for
the promotion.
H.M.JR: Can you get me this book by Mrydal? (Hands
Mr. Blough clipping from PM of July 25, 1944)
MR. BLOUGH: I don't think there is anything else
from my sector. I think things are going quite well.
H.M.JR: John?
MR. SULLIVAN: The Legion wants me to give a war bond
talk at the National Convention, September 20. They had
the National Executive Committee meeting here a couple of
months ago, and I spoke there. They had the speech reprinted
and sent throughout the country. They seemed to think it
did some good.
H.M.JR: Good. I'd go.
MR. SULLIVAN: The Smaller Business Association of
New England called this morning. They are quite a crowd.
Last month they got eleven hundred people out to a dinner
in Boston to hear Senator Murray and Maury Maverick, and
they are having a hundred of their leaders in on August 23
or 24.
H.M.JR: Where is this?
MR. SULLIVAN: In Boston - to get some advice on post-
war taxes. It seemed to me with all these meetings that
Regraded Unclassified
191
7/d
- 22 -
Roy spoke about and all of this interest in this partic-
ular problem, that it might be a good time for somebody
to lay down some general principles that might clarify
the situation a little bit. I think perhaps if Roy felt
like going, that might be a better spot for him than for
me.
H.M.JR: I still would like Gaston to sort of be the
guiding spirit on where people go to speak. If you don't
mind talking with him, we'll leave it to Herbert.
MR. SULLIVAN: Certainly.
MR. GASTON: All right.
H.M.JR: Isn't that the set-up?
MR. C. S. BELL: Yes, sir.
MR. SULLIVAN: I sent you a memorandum on Vivian
Kellems and her brother. They are now up to date on
the payment of their taxes. The back years have been paid
up, and the current year in each instance is just a little
bit more than fifty percent paid.
H.M.JR: Whatever happened to that Macy case where
they wanted to pay for Ruml's campaign in the last tax
thing?
MR. SULLIVAN: I don't recall.
H.M.JR: Will you look it up? They took it off as
an expense for the financing of Ruml.
MR. SULLIVAN: I'll take a look at it.
H.M.JR: I don't want to give you any ideas, now,
Olrich!
All right, John?
MR. SULLIVAN: I'd like to reconsider your offer to
send the car out, because I have been riding down with
Herb.
Regraded Unclassified
192
8/a
- 23 -
(The Secretary arranges transportation for
Mr. Sullivan)
Charles?
MR. C. S. BELL: That' is all.
MR. 0' CONNELL: Did you read that Bob Hinckley had
been appointed Director of Contract Termination under
this legislation?
H.M.JR: Yes. Is that good?
MR. O'CONNELL: Yes. They had the Hancock-Baruch
Termination Board last Saturday. Tom Lynch and I went
over. It was sort of a last meeting and a meeting to
welcome Bob Hinckley and offer to be of any service to
him that they could be. There is a little period now when
we haven't anybody doing what the Contract Termination
Board was doing, because Hinckley's name has not been con-
firmed by the Senate, since the Senate hasn't been in
town to confirm it, and the Department of Justice has
expressed some doubt as to whether or not a recess
appointment can be made effective while Congress is in
adjournment between sessions.
In any event, Hinckley is neither fish nor fowl at
the moment, as far as having a clear legal charter. But
he is going ahead and making preparations to build up a
small organization to do the job. As far as we can tell,
I think he is a good appointment. Justice is a little
leery about him.
H.M.JR: All right. Thank you all.
Regraded Unclassified
193
July 24, 1944
4:24 p.m.
HMJr:
Hello.
Operator:
Mr. Murray is in Pittsburgh and the operator said
that Miss Daugherty has gone for the day. No one
answers in his office at all.
HMJr:
Miss Daugherty?
Operator:
That's his secretary.
HMJr:
Oh. What's the name of his General Counsel over
there?
Operator:-
The General Counsel? Wait, I'll see.
(Pause)
Operator:
That's Mr. Lee Pressman.
HMJr:
Yes.
Operator:
But he is still out of town. Do you want anyone
in his office?
HMJr:
Was there nobody in Mr. Murray's office?
Operator:
No one in Mr. Murray's office at all -- they don't
answer.
HMJr:
Was there any -- I mean, nobody in the whole C.I.O.
office?
Operator:
Well, she can give me someone in Mr. Pressman's
office, but Mr. Pressman isn't there.
HMJr:
Well, give me somebody in Mr. Pressman's office.
Operator:
All right.
(Conversation with Mr. Pressman's office was not
recorded.)
Regraded Unclassified
194
July 24, 1944
4:50 p.m.
HMJr:
Hello.
Operator:
Ready?
HMJr:
Yeah.
Operator:
Go ahead.
HMJr:
Hello.
Arthur
Sulzberger:
Hello, Henry.
HMJr:
How are you?
S:
How are you? You ought to be exhausted or are
you all refreshed from the nice northern air?
HMJr:
Well, I'm refreshed except when I read the
editorials of the New York Times about the
Conference.
S:
Yeah. They haven't seen eye to eye.
HMJr:
No, and if you don't mind my saying so, I don't
think that they're very intelligent.
S:
Well, I -- I don't know whether they are or not.
HMJr:
Well, I -- I don't know why you're calling me but
I -- I wouldn't have
....
S:
I'm calling you on a totally different matter.
HMJr:
Well, I wouldn't have called you but
....
S:
Yeah.
HMJr:
....
but if I may get this off my chest, Arthur
S:
Yeah.
HMJr:
It looks to me that even before We started, that
the editorial board of the New York Times was out
to torpedo this Conference.
S:
Well ....
Regraded Unclassified
195
- 2 -
HMJr:
And
S:
I think that's the wrong expression
HMJr:
Well, that's the way I
S:
....
to use about conferences, but we didn't
do that. (Laughs)
HMJr:
Well, I mean, it looks as though they were
just out deliberately to do it and -- uh --
now, your reporting from up there was excellent.
S:
Good.
HMJr:
Your two men up there did a swell job.
S:
Good.
HMJr:
And I think if you would take the time to talk
to them when they come back, it would give you
maybe a little bit different
S:
Uh huh.
HMJr:
....
viewpoint than whatever your editorial board
is doing.
S:
All right.
HMJr:
But
S:
I shall do so, Henry, because I, naturally, have
read the editorials but it's over my head.
HMJr:
Well
S:
And I don't know anything about it.
HMJr:
Well, if you
....
S:
I don't profess to.
HMJr:
Well, I -- I -- I I don't know your one man. I
do know Crider, but they were there and they know
what's going on. I do wish you'd send for them.
S:
I shall do 80.
Regraded Unclassified
196
- 3 -
HMJr:
And if they could -- because I've felt that the
fact that the Times was so determined against us
has been very harmful to us.
S:
Yes.
HMJr:
And this isn't anything that -- I mean, it isn't --
I mean, it's bigger than the Treasury. It's bigger
than the Democratic Party and everything else.
S:
Oh, well, it wasn't political.
HMJr:
Yes.
S:
Look, I'll tell you what I'm calling you about.
HMJr:
Yes.
S:
Chauncey Waddell is Charles Evans Hughes' son-in-law.
HMJr:
Yes.
S:
He just called me.
HMJr:
Yes.
S:
He says that he has both friends and clients among
the Hungarian Jewish group in this country.
HMJr:
Yes.
S:
And there is a problem in connection with the
rescue of some of them.
HMJr:
Yes.
S:
And he asked me if I would call you
HMJr:
Yes.
S:
to facilitate his getting in touch with you
about it. It's a decision, he says, which is
going to come up for you on Wednesday morning
and consequently there being 80 little time, I
told him I would phone you
HMJr:
Yes.
S:
and ask you if it would be all right for him
to phone you directly.
Regraded Unclassified
197
- 4 -
HMJr:
Well ....
S:
I know nothing about it except Chauncey. I do
know him.
HMJr:
Well, would you mind -- because a phone call is
80 unsatisfactory -- couldn't he either write or
telegraph me?
S:
I'll ask him to either write or telegraph.
HMJr:
Would you?
S:
Right.
HMJr:
Because I -- I don't like to do these things on
the phone.
S:
Uh huh.
HMJr:
But if he would either send me an air-mail, special
delivery letter which I'd get very promptly..
S:
Right.
HMJr:
....
or a telegram.
S:
Okay, Henry.
HMJr:
Right.
S:
And, as I say, I know nothing about it. I'm merely
perfectly certain that he's a man of good heart
and good faith.
HMJr:
But have a look at this other thing.
S:
I will.
HMJr:
Thank you.
S:
Right.
HMJr:
Bye.
Regraded Unclassified
198
July 23, 1944 - 2:00 A.M.
TO HARRIMAN
At the Monetary Conference, the Soviet Delegation Chair-
man announced last night that the Soviet Government had agreed
to increase its subscription to the International Bank for
Reconstruction and Development to $1,200,000,000 from the
$900,000,000 originally agreed upon. (In this matter the
proposal of the American Government for subscriptions to
the International Bank was agreed to.) The quota granted
to the Soviet Union under the Stabilization Fund Agreement
was thereby equalled. (Apparently the information you
received from Vyshinsky, as reported in your 2705, July 22nd,
11:00 A.M. was the basis for taking this action.)
An appropriate press statement, which is quoted in the
Department's immediately preceding telegram,was issued by
Secretary Morgenthau.
You are requested to convey the gratitude of the United
States Government to Molotov or other appropriate Soviet
official for the Soviet Government's statesmanlike decision
in this matter.
Hull
(State Dept. also sent another cable to Harriman quoting the
full text of Secretary Morgenthau's address at the closing
Plenary Session of the Monetary Conference.)
Regraded Unclassified
199
July 24, 1944
Alan:
Dear
I again want to thank you for having
come to Bretton Woods and for having been
of such great assistance to me in the
preparation of my closing address at the
final plenary session.
Upon your return from your vacation
you will find a slight token of my warm
regard for you and I hope that you will
accept it in that spirit.
Yours sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Alan Barth,
1306 30th Street, N. W.,
Washington, D. C.
Regraded Unclassified
200
JUL 24 1944
Dear Gordell:
I wish to thank you for your cooperation is permitting
Mr. John c. Vincent, Chief of your Division of Chinese Affairs,
to como to Brotten Woods to participate is the negotiations
with Dr. Kung for the settlement of our Army's financial
obligations for its expenditures is China. Mr. Vincent has
been mest helpful and constructive. As you know, he accompa-
nied Vice Precident Wallace on his recent trip to China, and
was thus in a position to give us the up to the simte back-
ground relevant for our purposes.
Sincerely yours,
(Signed) Henry
the Hemorable
the Secretary of State
Washington, D. c.
S.A. 7/17/44
Regraded Unclassified
201
THE SECRETARY OF STATE
WASHINGTON
July 26, 1944
Dear Henry:
I have your letter of July twenty-fourth telling
me of the assistance that Mr. John C. Vincent rendered
you in connection with the negotiations on our Army's
financial obligations for the expenditures in China.
It is a pleasure to me to know that Mr. Vincent was
of help to you.
Sincerely yours,
The Honorable
Henry Morgenthau, Jr.,
Secretary of the Treasury.
Regraded Unclassified
202
JUL 24 1944
Dear Fierello:
Thank you for your telegram of July 20, expressing
your interest in having the Bank for Reconstruction and
Development located in New York.
Although the Articles agreed upon at the Conference
place the Bank's principal office "in the territory of
the member holding the greatest number of shares", which
is the United States, neither the Conference nor its com-
mittees will determine the specific location within the
United States. The latter determination will be made by
the Bank's Board of Governors, after the various govern-
ments sign and put into effect the Bank agreement.
I an sure, however, that in any deliberations as to
the proper location of an institution of this type,
New York will be given serious and full consideration.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Honorable Fiorello H. LaGuardia,
The Mayor of New York.
air Mail
WLU/jm
7/22/44 2tbn
way
written m monetary
Conf. Regraded stat Unclassified
203
UNITED NATIONS MONETARY AND FINANCIAL CONFERENCE LGG
The Honorable FundH Laquesdin
Mayor
New York M.
Thank you for your telegrament
July 70, expressing your interest in having
the Bank our Reconstment And Development
located in New York.
although the articles agreed upon
Oat the Conference place The Banle's frincipal
office in the Tentory of the member holding
The greatest number of shares" which is
the United States, neither V. the Conference nov
it committees will determine the specific
location within the United States, The
latter determination will be made
by the Bank's Board of Governoro, after,
204
UNITED NATIONS MONETARY AND FINANCIAL CONFERENCE
and Kut into effect
the various governments segn the Bank
agreement. and the Buth bying
is
I am sure, havever, that in
any delibirations as to the propr
location of an institution of this type,
New York will be given senous and
full consideration.
VTY
I Seen of Treas
205
WESTERN
1201
CLASS OF SERVICE
SYMBOLS
This is a full-rate
DL-Day Laner
Telegram or Cable-
gram unless its de-
121
Letur
ferred character Irin-
UNION
LC=Deferred Cable
dicated by a suitable
symbol above or pre-
NLT-CaMe Hight Letter
coding the address.
A, N. WILLIAMS
Ship Rediogram
PRESIDENT
The filling time shown in the date line on telegrams and day letters is STANDARD TIME at point of origin. Time of receipt is STANDARD TIME at point of distination
NA67 61=PXMYR NEWYORK NY 20 144P
HONORABLE HENRY MORGENTHAU JR=
WORLD MONETARY CONFERENCE BRETTON WOODS NHAMP=
IT IS NATURAL THAT I BELIEVE NEW YORK CITY IS THE LOGICAL
LOCATION FOR THE WORLD BANK I AM SURE I NEED NOT PRESENT
ANY ARGUMENTS YOU ON THIS POINT WHAT CAN I DO TO PROVIDE
INFORMATION CONCERNING FACILITIES CONVENIENCES AND
DESIRABILITY OF NEW YORK CITY TO THE COTTNFERDNCE OR TO
THE MEMBERS OF THE COMMITTEE WHO WILL MAKE THE DICISION=
F H LAGUARDIA MEYOR.
THE COMPANY WILL APPRECIATE SUGGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE
Pogradod
206
JUL 24 1944
Dear Mr. Fulton:
Now that the success of the Fifth War Loan
Drive is assured, I want to take this opportunity
of thanking you and the entire outdoor advertising
industry for the splendid part played in the Drive
by this great merchandising medium. At the seme
time, I want to enlist further help in our plans for
the Sixth War Loan Drive.
It 18 hoped to instill in the American public
as never before an awareness of the extreme impor-
tance of continued War Bond buying by sparking the
Sixth War Loan Drive with reproductions of a $100
War Bond on all outdoor panels throughout the country.
Your cooperation in this gigentic undertaking is
earnestly requested.
It is my hope--indeed my conviction--that this
program will find an eager response among operators
and advertisers everywhere, and that the impact of
80 universal and unprecedented a display will go far
toward making the Sixth War Loan Drive one of the
most successful in the annals of War Finance.
Sincerely,
(Rigned) W. Morgenthaw. Jr.
Mr. K. H. Fulton
Director of War Activities
Outdoor Advertising Association
of America, Inc.
60 East 42nd Street
New York, New York
RWC:deb
Regraded Unclassified
207
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
CONFIDENTIAL
DATEJULY 24, 1944
TO
Secretary Morgenthau
FROM
Mr. Haas
Subject: The Business Situation,
Week ending July 22, 1944.
Summary
Stock market: Increasing signs of Axis weakness touched off a
sharp decline in stock prices last week, as investors
showed renewed signs of apprehension over reconversion
problems and possible cut-backs in war production. At
the close on Saturday industrial stock prices were 3 per-
cent lower than a week earlier. In contrast, industrial
stock prices in London last week moved steadily higher
to the best levels since January 1937.
Commodity prices: Due largely to the favorable war news,
commodity futures have shown noticeable weakness during
the past two weeks. The spot markets, however, have
moved irregularly, with the BLS index of 28 basic
commodities showing practically no change. Declines
in cash grain and cotton prices have been offset by
advances in the prices of hogs, steers, and rosin.
Industrial production: Industrial output showed a further
slight decline in June, and the FRB seasonally-adjusted
index of production declined to 235 from 237 in the pre-
vious month. Industrial production continues to be
hampered by the manpower shortage, with factory employment
in June showing a further slight decline.
Reconversion: After some delay, the WPB is proceeding
with the partial reconversion program originally out-
lined in June. Under the program a series of orders
issued at varying dates up to August 15 will serve as
a basis for a limited reconversion of industry to
civilian goods production.
Crop prospects: Crop prospects, based on July 1 conditions,
indicate a total production this year equal to the large
production of last year, although the individual crops
will vary considerably from those of 1943. Further
improvement in the record wheat crop occurred last month,
with the total crop now estimated at 1,128 million bushels,
almost 300 million larger than the 1943 crop.
Regraded Unclassified
208
- 2 -
Stock prices decline on signs of Axis weakness
Evidence of internal unrest in Germany, together with
the attempted assassination of Hitler and the downfall of
the Tojo cabinet in Japan, have served to focus the
attention of financial circles on the possibility of an
early peace. As a consequence, investors and stock
traders are showing renewed concern over the problems of
reconversion and cut-backs in war production, and earlier
strength in the stock market has given way to weakening
tendencies. After moving up to a new high since 1940
in the previous week, industrial stock prices turned
downward last week, with the Dow-Jones average showing
a net loss of nearly 5 points (over 3 percent) for the
period. Railroad and utility stock prices also declined,
and trading volume increased near the end of the week
as selling became heavier.
Industrial stock prices rise to new high in London
In contrast to the unsettlement in the New York market,
industrial stock prices in London continued to forge ahead
last week, and at the end of the period stood at the highest
level since January 1937. (See Chart 1.) Despite the fact
that industrial stock prices in London on the eve of the
invasion were at relatively high levels in relation to
New York prices, they have since shown a further gain of
5 percent as compared with a rise of only 3 percent in
New York.
Undoubtedly the dominant factor behind the London
advance has been the favorable tenor of the war news.
Specific evidence of mounting hopes for the early defeat
of Germany 18 seen in the recent rapid rise in German bond
prices in London. Thus the price of German 5's of 1924 has
more than doubled since the invasion of France began. (See
Chart 2.)
War developments depress commodity futures
While war developments have had a greater effect on
the New York stock market, commodity futures have also shown
weakness. The Dow-Jones futures index, after a noticeable
rise engendered by the Price Stabilization Extension Act in
the latter part of June and early July, has declined 2 per-
cent in the last 10 days. (See Chart 3.) December cotton
futures dropped 4 percent in that period while December
futures of wheat, oats, and rye have shown declines ranging
Regraded Unclassified
209
- 3 -
from 2 to 7 percent. In addition to the war developments,
the delay by the OPA in the issuance of revised price
ceilings for major cotton textiles has tended to depress
cotton futures.
The spot markets have moved irregularly during the
past two weeks. Moody's spot index has declined slightly,
but the BLS index of 28 basic commodities has shown
practically no change. (See Chart 4.) Declines in
cotton and grain prices were offset by advances in the
prices of hogs, steers, and rosin. While cash wheat
prices were off 3 percent in the past two weeks under
the pressure of heavy marketings from this year's record
wheat crop, the recent increase in the Government loan
rate, together with CCC open-market buying, has tended
to support the markets. Due in part to a shortage of
labor for unloading wheat, many markets have instituted
permit systems to regulate the flow of new wheat to
market. Hog marketings are declining seasonally and
prices have moved up 2.5 percent in the past two weeks.
The BLS general index of wholesale prices declined
0.2 percent in the week ended July 8, and held unchanged
in the following week. The index now stands at 103.9 per-
cent of the 1926 average, which 1s 1 percent higher than
a year ago and 1s 38.5 percent above the pre-war August
1939 average. Lower prices for apples, oranges, and
onions were largely responsible for the most recent decline
in the index.
Industrial production slightly lower in June
Industrial activity showed a further slight decline in
June, and the FRB seasonally-adjusted index of production
dropped to 235 from 237 in the previous month. This was
the fourth consecutive decline in the adjusted index, which
had reached 247 at the peak last fall. The dominant factors
in the decline in June were decreased production of steel
and nonferrous metals. The transportation equipment and
machinery industries, heavily engaged in munitions output,
both showed declines, although the decrease in the machinery
group was inconsequential. Output of minerals increased
moderately last month, but the gain was due entirely to
seasonal factors. Likewise a slight increase in nondurable
goods production was attributable to seasonal influences.
Regraded Unclassified
210
- 4
Manpower shortages hampers production
An outstanding factor in the recent decline in indus-
trial production has been the manpower shortage. The WMC
earlier this month estimated that industries essential to
the supply of the armed forces were confronted with a
shortage of 200,000 workers. The decrease in manufacturing
output in June was accompanied by a further drop of
49,000 in the number of factory workers employed. (See
Chart 5.) This decline, however, was considerably less
than the average monthly decline in the preceding 6 months.
Moreover, employment in the nondurable goods industries
actually showed a moderate increase, thus registering the
first expansion since August 1943.
Further declines occurred last month in employment in
the shipbuilding and aircraft industries. In addition to
others, the steel industry continues to be hampered by the
manpower shortage. In this connection the president of the
U. S. Steel Corporation recently estimated that the industry
needed 50,000 additional workers, and attributed a lag
in steel production almost entirely to a lack of manpower.
After reaching 100 percent of capacity in the last week
in April, steel operations showed a gradual decline to a
recent low of 94.3 percent of capacity in the Independence
Day holiday week. Steel production subsequently has shown
some improvement, however, with operations last week
scheduled at 97.2 percent of capacity. Moreover, it
should be noted that despite a lag in production near the
end of the period, steel ingot production in the first
half of 1944 set a new high record of 45,062,000 net tons,
This was 1,176,000 net tons (about 3 percent) more than in
the corresponding period of 1943.
Gain in electric power production narrows
Accentuated by cut-backs in aluminum production which
involves heavy power consumption, electric power production
thus far in 1944 has reflected the downward trend in
industrial production. While power production has run
consistently above year-earlier levels, gains have narrowed
considerably since earlier in the year. In sharp contrast
to a gain of 15.6 percent in the first week in 1944, by
the last week in June the margin over 1943 levels was cut
to 5.3 percent. This was followed in the first week in
July by the sharpest week-to-week drop in power output
since the Edison Electric Institute began compiling figures.
As a result, the gain over last year's levels dropped to
0.5 percent. A rebound in the week ended July 15 however
widened the gain to 4.6 percent. (See Chart 6.)
Regraded Unclassified
211
- 5 -
The sharp drop in power output in the first week of
this month reflected widespread shut-downs of industrial
plants as a result of the Independence Day holiday. The
severest decline occurred in the New England area, where
power consumption in some cities is reported to have
dropped 50 percent. The strongest showing was made by
the Pacific Coast area, which reported an increase of
15 percent over 1943 levels, largely as a result of
heavy power demands for aluminum production and farm
irrigation.
WPB proceeding with limited reconversion program
With the rapid pace of war developments raising the
possibility of an early collapse of the Axis, increasing
interest is certain to be centered on reconversion plans.
Although reported opposition from the armed services and
the WMC resulted in some delay in putting the program into
effect, the WPB has proceeded with the partial reconversion
program originally outlined in June. According to plans
announced earlier this month, four separate orders issued
at varying dates up to August 15 will serve in the aggregate
as a basis for the limited reconversion of industry to
civilian goods production.
One order providing for the lifting of some of the
restrictions on the use of aluminum and magnesium, and
another allowing the fabrication of models for experimental
purposes, already have been issued. Under the program these
are to be followed by another on July 29 permitting the
placing of unrated orders for machine tools and equipment.
Finally, on August 15 an order 1s to be issued allowing
manufacturers with manpower and facilities not needed in
the war program to proceed with civilian goods manufacture
upon approval of WPB field offices.
1944 crop production expected to equal 1943
Aggregate crop production in 1944 is expected to be
about the same as last year, but production of individual
crops will vary considerably from that of 1943, according
to the July 1 crop report of the Department of Agriculture.
Crop prospects improved west of the Mississippi during
June, but east of the Mississippi scanty rainfall and high
temperatures, which have continued into July, have generally
caused a decline in prospects. Recent showers, however, have
brought relief to some eastern drought areas.
Regraded Unclassified
212
- 6 -
Further improvement in the bumper wheat crop occurred
last month, and total wheat production is now forecast at
1,128 million bushels, or 93 million greater than that
indicated on June 1. The indicated wheat crop, by far the
largest on record, 18 almost 300 million bushels larger
than the 1943 crop. (See Table 1.) The first official
forecast of corn production this year indicates a very
large crop of 2,980 million bushels, although nearly 100 mil-
lion below that of last year. The 1944 crops of oats, barley,
rye, and hay are expected to show no substantial change from
those of last year.
Due largely to reduced acreages, considerably smaller
production of certain "war crops" is forecast. As compared
with 1943 the flaxseed crop may be 50 percent less and the
dry bean and sweet potato crops 8 and 9 percent smaller,
respectively. The Irish potato crop will be large, but
substantially less than last year's crop.
Fruit production this year will be of record or near-
record proportions, with a citrus fruit crop possibly equal
to or greater than the record 1943-44 crop, and aggregate
production of the major deciduous fruits 18 percent larger
than in 1943. The third largest peach crop on record 18
in prospect, while the indicated commercial apple crop
is 37 percent larger than that of last year.
WFA announces food releases for May and June
The release of more than $15 million worth of food
for civilian use from Government-owned stocks during May
and June was announced by the WFA recently. Shell eggs
were by far the most important item sold, amounting to
1,300,000 cases valued at $11,400,000, but appreciable
quantities of sugar, canned vegetables, dried fruit, and
rice were also released.
These sales by the WFA represent a continuation of
the policy of eliminating excessive surpluses and avoiding
spoilage. It was indicated that a careful check is kept
of inventories in relation to requirements of Government
war agencies, but that changes in war plans, location of
food stocks, type of package, and other factors, sometimes
warrant releasing foods to civilians. Moreover, some
stocks that have been built up as the result of price-
support programs, as in the case of eggs, are released
to civilians when the market will absorb them.
Regraded Unclassified
213
- 7 -
Established trade channels are used in releasing
food stocks, and the original packer is usually given the
first chance to buy back the product. A sales plan 1s
worked out for each lot of food released, with consideration
given to deficit areas, and to the location of the product.
The formulation of such sales policies by the WFA will
undoubtedly be important in the orderly disposal of
Government food stocks after the war.
Farm real estate values continue rise
Farm real estate values have continued to rise
markedly, with the BAE index of estimated value per acre
up 3 points to 117 (1912-14-100) in the four months ending
July 1. While this rise is considerably less than the
9 point advance registered during the preceding four
months, farm real estate values normally show less
change during the April-July period, when the number of
sales 1s usually reduced. The farm real estate index
rose less rapidly in the spring of 1943 than in the
preceding winter. Since the sharp rise in farm real
estate values got under way in 1941 the index has risen
almost 38 percent and is now at the highest level since
1928. The index, however, is still far below the peak
of 170 reached in 1920. (See Chart 7.)
Factors which have tended to moderate the danger
inherent in the rapid rise in farm land values have been
the large proportion of cash purchases and the large
down payments made on credit-financed property. In the
first quarter of this year 51 percent of the sales were
for cash, and the down payments on mortgaged property
averaged 42 percent of the value as compared with 39 per-
cent in 1943. Nevertheless, due to the rapid rise in
farm real estate prices, heavier mortgages were placed
and the debt per acre increased. Considerable speculation
in farm lands was apparent during the first quarter of this
year, with over 10 percent of the sales in 80 selected
counties throughout the country involving property held
two years or less. .
Urban real estate prices rising
Although reliable and comprehensive figures are not
available on the changes in urban real estate values,
evidence continues to accumulate that prices of urban
homes have been advancing sharply in recent years.
Commissioner Fahey of the Federal Home Loan Bank
Regraded Unclassified
214
- 8 -
Administration stated recently that in his judgment
prices of houses had risen at least 25 to 30 percent
since 1940. Numerous cases had come to his attention
of sales prices up 40 and 50 percent above reasonable
prices at the beginning of 1941.
The total amount of new loans for home purchases
by savings and loan associations rose substantially in
1943, and in the first five months of 1944 was 49 per-
cent greater than in the corresponding period of last
year. While the rise in mortgage lending for home
purchases may have been due to various causes, the
increase in prices of homes was undoubtedly an
important factor. The rise in urban home values has
been particularly noticeable in war-boom centers, where
many war workers have been forced to buy homes in order
to find living accommodations.
Regraded Unclassified
215
Table 1
Production of selected crops
(In thousands of bushels, except where otherwise noted)
Average
1943
Indicated
1933-42
July 1, 1944
Wheat
760,199
836,298
1,127,822
Corn
2,369,384
3,076,159
2,980,136
Oats
1,028,280
1,143,867
1,183,236
Barley
256,350
322,187
301,811
Rye
40,446
30,781
29,362
Flaxseed
17,180
52,008
26,541
Beans dry (100 lb. bags)
15,133
21,123
19,358
Potatoes
362,912
464,656
399,116
Sweet potatoes
67,182
72,572
66,393
Sugar beets (tons)
10,094
6,522
7,227
Apples (commercial crop)
122,378
89,050
122,268
Peaches
57,618
42,180
69,201
Pears
28,559
24,585
27,733
Source: Department of Agriculture.
Regraded Unclassified
INDUSTRIAL STOCK PRICES IN U.S. AND U.K.
August 1936=100
1942
1943
1944
PERCENT
PERCENT
Weekly (Average of Daily)
120
120
115
115
110
110
105
105
:
100
100
95
95
U.K. 56 Industrial
90
Stocks
90
85
85
80
80
75
U.S. 30 Industrial
75
Stocks (Dow-Jones)
70
70
65
65
60
60
OCT
DEG.
FEB.
APR.
JUNE
AUG.
OCT
DEC.
FEB.
APR.
JUNE
AUG.
OCT.
DEC.
1942
1943
1944
Office of the Secretary of the Treasury
FO-156-CI
Chart 1216 1 21
Dividen of Research and Statratige
Regraded Unclassified
PRICE OF GERMAN 5's 1924 AT LONDON
Thursday Quotations, January 1943 to Date
POUNDS
POUNDS
STERLING
STERLING
.
18
SEPT. 8
18
SURREMER
of
July 20
ITALY
Novement
16
GENMANS STALL
16
ALLIES IN ITALY
14
14
12
12
JULY 25
MUSSOLINI
OUSTED
June 6
INVASION
10
or
FRANCE
10
8
8
MAY 7
FALL or TUNIS
AND BIZERTE
6
JUNE 23
6
RUSSIAN
DRIVE
BEGINS
4
4
2
2
o
o
JAN.
MAR.
MAY
JULY
SEPT.
NOV.
JAN.
MAR.
MAY
JULY
SEPT.
NOV.
1943
1944
Chart 2
Office of the Secretary of the Treasury
217
Division of Research and Statistics
Regraded Unclassified
COMMODITY PRICE INDEXES IN U.S.
1943
1944
DEC.
JAN.
FEB.
MAR.
APR.
MAY
JUNE
JULY
AUG.
SEPT.
OCT.
PERCENT
PERCENT
(Moody)
Daily
(Dow-Jones)
270
104
267
103
264
102
261
101
258
100
Moody's Index
255
in U. S.
99
December 31,1931-100
252
98
249
97
246
96
Commodity Futures
243
(Dow-Jones)
95
1924-26-100
240
94
237
93
234
92
231
91
228
90
225
ID
26
4
89
4
II
-
25
I
8
6
22
29
5
12
II
IS
25
-
8
es
#2
29
6
a
20
27
3
IO
IT
24
I
8
15
22
=
5
#
ID
26
2
9
-
23
30
7
14
a
29
Chart 3
DEC.
JAN.
FEB.
MAR.
APR.
MAY
JUNE
JULY
AUG.
SEPT.
OCT.
1943
1944
Office of the Secretary of the Transity
of - - -
P-148-L-1
218
Regraded Unclassifie
WHOLESALE COMMODITY PRICES
1943
1944
PERCENT
PERCENT
WEEKLY
1926-100
106
106
105
105
104
104
889 Commodities. B.L.S.
103
103
102
102
28 Basic Commodities. B.L.S.
101
101
100
100
JUNE
AUG
OCT.
DEC.
FEB.
APR.
JUNE
AUG.
OCT
DEC
1943
1944
SELECTED BASIC COMMODITIES
Percentage Change December 6, 1941 to July 7 and July 21, 1944
PERCENT
+100
Rosin 94.4%
219
+80
Beriey 74.7%
"Flaxseed 64.6%
+60
Corn 569%
+40
Hoge 328%
Wheel 36/%
Stears 347%
Lard 200%
Coffee 216%
Butter 10.8%
+20
Cottonseed Oil are
Sugar 69%
Print Cleth 49%
Wool Topo 39%
0
Hides 0%
Tollow -4./%
-20
July 7.
July 21,
Dec.6.
1941
1944
1944
Office of the Secretary of the Treasury
P-262
- of - and States
Regraded.Unclassified
FACTORY EMPLOYMENT AND OUTPUT
1939 - 100, Unadjusted
PERCENT
PERCENT
240
240
220
220
200
200
Manufacturing Output, F.R.B.
180
180
160
160
140
140
Factory Employment, B.L.S.
120
120
100
100
80
80
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
Chart 5 22.
Office of the Secretary of the Treasury
Division of Research and Itetialics
RegradedsUnclassified
Chart 6
221
ELECTRIC POWER PRODUCTION
KW. HRS.
KW. HRS.
Billions
Billions
4.8
4.8
4.6
4.6
4.4
4.4
1944
4.2
4.2
1943
4.0
4.0
3.8
3.8
3.6
3.6
1942
3.4
3.4
3.2
3.2
3.0
3.0
JAN.
MAR.
MAY
JULY
SEPT.
NOV.
Source: Edison Electric Institute and New York Times
Office of the Secretary of the Treasury
Division of Research and Statistics
Regraded Unclassified C-544
FARM REAL ESTATE VALUES IN TWO WORLD -WARS
World War I. 1914=100; World War II. 1939=100
PERCENT
PERCENT
165
165
1920
160
160
155
155
1921
150
150
1919
145
145
140
140
1922
135
135
1944
1918
130
130
World War I
125
125
120
120
1917
1943
115
115
World War II
110
110
1916
1942
105
105
1915
1914
1941
100
100
1940
1939
Chart
95
95
J
M
M
J
S
N
J
M
M
J
S
N
J
M
M
J
$
N
J
M
M
J
S
N
J
M
M
J
S
N
J
M
M
J
S
J
M
M
J
$
N
J
M
M
J
$
N
J
M
J
S
Office of the Secretary of the Treasury
7 2
Division of Research and Statustics
C-515
Regra ded Unclassifie
223
OFFICE OF
FORVICTORY
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
WASHINGTON 25
BONDS
AND
THE
SECRETARY
STAMPS
July 24, 1944
MEMORANDUM TO THE SECRETARY
I am enclosing a memorandum from
Mr. Clifton E. Mack, Director of Procurement
Division, which compares the last Lend-Lease
budget for the fourteen months' period, begin-
ning May 1, 1943, through June 30, 1944 with
the actual requirements.
Olrich
Assistant to the Secretary
Enclosure
Regraded Unclassified
C
22
VICTORY
0
TREASURY DEPARTMENT
BUY
UNITED
P
STATES
WAR
SONDS
Y
PROCUREMENT DIVISION
STAMPS
OFFICE OF THE DIRECTOR
WASHINGTON 25
July 22, 1944
MEMORANDUM TO MR. ERNEST L. OLRICH,
ASSISTANT TO THE SECRETARY:
Our last Lend-Lease budget was on the basis of the
fourteen months' period from May 1, 1943, through June 30
1944. The total requirements for procurement through
Lend-Lease estimated by the foreign missions for budgetary
purposes was $2,424,800,000. The actual requirements
submitted were far less than the original estimates, total-
ing but $1,395,800,000 or 57.6 percent.
The attached chart shows the budget estimates for the
United Kingdom, Russia, China, and all other countries on
the basis of one-fourteenth of the total for each month
against which monthly purchases are shown.
The actual purchases against requisitions submitted
by the foreign countries under the Lend-Lease program for
purchase through the Procurement Division were in the pro-
portions of the original budget estimates as summarized
below:
United Kingdom
48.5%
Soviet Government
79.4%
China
24.4%
All other countries49.8%
A large part of the reduction from the original require
ments is due to the much smaller steel programs which has
represented a large dollar volume; and also, close screening
by FEA and WPB has helped to reduce the amount.
(s) Clifton E. Mack
Attachment: Comparison of Purchases
Clifton E. Mack
and Budget Estimates. Director of Procurement
Regraded Unclassified
225
PROCUREMENT DIVISION - LEND LEASE ACTIVITY
COMPARISON OF PURCHASES AND BUDGET ESTIMATES
(MILLIONS or DOLLARS)
SECRET
TOTAL
UNITED KINGDOM
RUSSIA
CHINA.
All OTHERS
Budget
Budget
Budget
Budget
Budget
Estimate
Purchases
Per Cent
Estimate
Purchases
Per Cent
Estimate
Purchases
Per Cent
Rationte
Purchases
Per Cent
Estimate
Purchases
Per Cent
(14 Mo.)
(14 Mo.)
(14 No.)
(14 Yes)
(14 Mo.)
8
I
%
I
,
<
I
I
%
,
1
%
$
1
&
May
173.2
134.4
77.6
97.6
60.7
69.3
54.7
65.1
119.0
6,3
1.5 CR.
23.8
CR.
24.6
10.1
41.0
June
173.2
169,2
97.7
87.6
59.9
68.3
54.7
112.8
206.2
6.3
-3
4.7
24.6
3.8 CR.
15.4 CB,
Sub Total
346.2
303.6
97.6
175.2
120.6
68,8
109.4
177.9
162.6
12.6
1,2
CR.
9.6
CR.
49.2
6.3
12.8
July
173.2
121.4
70.0
87.6
55.8
63.8
54-7
60,1
109.8
6.3
1,8
CR.
28.5
CR.
24.6
7.3
29.6
August
173.2
111,9
64.6
87.6
27.5
32.5
54.7
73.0
133.4
6.3
1,8
CR.
28.5
CR.
24.6
13.2
sptember
48.1
87.6
53.6
173.2
27.8
26.8
31.7
54.7
8.7
15.9
6.3
6.4
101.6
24.6
6.2
25.2
October
173.2
100.2
57.8
87.6
58,6
66.8
54-7
24.1
44.0
6.3
is
4.7
24.6
17.2
69.9
November
173.2
53.3
30.8
87.6
20.8
23.8
54.7
23.7
43.3
6.3
-5
7.9
24.6
8,3
December
173.2
62.1
35.8
87.6
23.9
27.1
54.7
26,6
48.6
33.7
6.3
-1
1.6
24.6
11.5
46.7
January
173.2
134.1
77.4
87.6
60.3
68,8
54.7
53.5
97.8
6.3
-1
1.6
24.6
20.2
82.1
February
173.2
79.3
45.8
87.6
43.9
50.1
54.7
24.2
44.2
6.3
,2
3.1
24.6
11.0
44.7
March
173.2
98.7
56.9
87.6
47.7
54.4
54.7
34.9
63.8
6.3
.4
6.3
24.6
15.7
58.9
87.6
63.8
April
173.2
102.1
39.2
44.7
54.7
33.7
61.6
6.3
16.4
260.3
24.6
12.8
52.0
May
173.2
93.3
53.9
87.6
39.6
45.2
54.7
30.2
55.4
6.3
2.1
33.3
24.6
21.4
June
173.2
87.7
50.6
87.6
29.8
86.9
34.0
54.7
37.5
68.5
6.3
.2 CR.
3.1
CR.
24.6
20.6
83.7
Sub Total
2078.4
1092.2
52.5
1051.2
473.9
45.1
656.4
430.2
65.5
75.6
22.7
30.0
295.2
165.4
56.0
Great Total
2424.8
1395.8
57.6
1226.4
594.5
48.5
765.8
608.1
79.4
88,2
21.5
24.4
344.4
171.7
49.8
July 1944
Regraded Unclassified
226
The New York Times.
JAIL 2 4 1944
CLARK HAILS PROMISE
OF JEWISH BROADCAST
Lieut. Gen. Mark W. Clark, in a
message marking the first Jewish
broadcast from territory liberated
by the United Nations, yesterday
termed the broadcast "the promise
of what the United Nations will
bring to a. liberated world."
His message was read yesterday
over Station WEAF and the NBC
network on the special broadcast
from the Synagogue of Rome.
Chief Rabbi Israe] Zolli of Rome,
who conducted the service, de-
scribed the Allied soldiers who
had freed Rome as "the expression
of the ideal of liberty and justice
for which European Jews have
suffered," Capt. Aaron Paperman,
Jewish chaplain attached to the
Fifth Army, also spoke.
General Clark, in his message,
read by Captain Paperman, said:
"This is a proud day for the
Fifth Army, for the Jewish people
and for the free world. For us who
are fighting this bitter struggle, to-
day's services represent the fruit
of what we are fighting for, the
promise of what the United Na-
tions will bring to a liberated
world.
"Under the Fascist and Naz|
reign of terror, the Jews in Italy
were humbled and beaten, driven
into hiding, forbidden to worship
according to their beliefs and tra-
ditions. Rome little more than a
month ago was a city under the
heel of a ruthless foreign master
and enemy of liberty.
"Today-liberated by the Fifth
Army-Rome is a free city and
her people are free to worship as
they whoose. Freedom of religion,
perhaps the greatest of the free-
doms, has heen restored to the
Eternal City. The world has cause
to be thankful."
227
CABLE TO AMBASSADOR MURPHY, ALGIERS, AND FOR ACKERMANN, BARI
We would appreciate clarification of information received
in Cable Number BX14273 of July 18 from CG Allied Force Hq.,
Advance Command Post, Caserta, Italy. The cable accounts
for 544 family members and 255 unattached persons. We desire
to know the status of the remaining 186 persons comprising
the group. Are they orphans? Also how many males and females
over 45 are in total group?
THIS IS WRB CABLE TO ALGIERS NO.
38
12:10 p.m.
July 24, 1944
Alaughlin:JWP:1hh 7/24/44
Regraded Unclassified
228
FROM
ALGINES
UNRESTRICTED
Date: July 24, 1944
Rec'd: July 31, 1 pm
Secretary of State,
Washington.
A-324, July 24, 2:30 p.m.
It has new been assertained through the
office of 6-2 (0.1) Section, Allied Feree
Headquarters that Type Levy DELPORTO and
Pierre Lavy DELPONTO. subject of the Depart-
ment's telegram relayed to this Mission by
Madrid, are new in the French Armed Forees
and that their addresses are as fellows:
Yves Levy Delperte.
2°D.B. (Artillerie).
S.P. $4.102
Pierro Levy Delperte,
2°D.B. - 501° Chare,
S.P. 84.102
CHAPIN
Copy to American Embassy. Madrid
File No. 310
SJD/mh
Regraded Unclassified
229
GABLE TO AMBASSADOR MURPHY, ALGIERS, AND FOR ACKERMANN, BARI
Please deliver the following message to Mr. B. Ralph Stauber
from Dillen Myer, War Relocation Authority:
"Have Gruber arrange for preparation brief factual
biographies of about 15 selected refugees. This in-
"formation, mimeographed if possible, should be ready
when boat docks. Also arrange for persons selected to
be available at time of landing for possible press
interviews. Line up necessary interpreters. Repre-
sentatives from WRA Washington office will be on hand
to arrange press contacts.
THIS IS WRB CABLE TO ALGIERS NO.
37
12:10 p.m.
July 24, 1944
ALaughlin:mm 7/22/44
Regraded Unclassified
230
CABLE TO AMBASSADOR WINANT. LONDON, FROM WAR REFUGEE BOARD.
Please deliver the following nessage to Sir Herbert
Imersont
QUOTE Refer to your message of July 20. War Refugee
Board is delighted with promptness and nature of IGO's
decision. In both its direct and indirect results, the
operation will make a significant contribution to the
alleviation of distress and to the saving of lives. We
are particularly appreciative of the generosity shown
in scope and flexibility of the plan. UNQUOTE.
5:00 p.m.
July 24, 1944
A.Abrabmson:ces 7/24/44
Regraded Unclassified
231
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Embassy, London
DATED:
July 24, 1944
NUMBER:
5791
CONFIDENTIAL
FROM THE WAR REFUGEE BOARD FOR SIR HERBERT EMERSON
Myron Taylor has transmitted to the Department the substance
of a telegram dated July 15th sent to the Inter-Governmental
Committee, London, by Sir Clifford Heathoote-Smith.
The cable in question as understood by us describes the
organized deportation by the Germans of Jews and other refugees
from Italy to concentration camps with the ultimate purpose of
their extermination. This shooking action of the Nazis in
Italy is typical of the murderous extermination campaign which
has been carried out in all occupied territory and which today
vis being executed on a large scale in Hungary.
This Government has in recent months made clear to the world,
that it is prepared, in cooperation with other sympathetic
governments, to find havens of refuge for all victims of this
persecution who are able to leave German occupied territory.
This policy of our Government was enunciated by President
Roosevelt in his statement of March 24th as well as in his recent
message to Congress announcing the bringing of 1,000 refugees
to this country.
The situation described in the cable in question appears to
be another aspect of the general problem and, while it is quite
possible that many of the deportees from Italy have already been
executed, this Government will cooperate in any way with the
British Government and other governments in facilitating any
feasible plan of action. Heathcote-Smith's suggestion apparently
would involve an approach to the German Government asking them
to release refugees deported from Italy and to deliver such
refugees to allied authorities at a North Atlantic port whence
they would be returned to Italy or taken to temporary havens
of refuge elsewhere.
It is our view that any approach to the Germans should indi-
cate the villingness of the allied governments, with due regard
to military necessities, to consider measures for the reception
in allied and neutral territory of any Jews in German occupied
territory, and should not be limited to deportees from Italy.
This Government has recently advised the British Government of
its willingness to join in such an approach to the German Govern-
ment. However, we are prepared to consider sympathetically any
plan designed
Regraded Unclassified
232
#6791, To London, July 24, 1944
plan designed to meet the Italian problem referred to by Heathcote-
Smith. In the circumstances it would appear most feasible for
the Inter-Governmental Committee to determine the practical
problems involved and discuss the matter with the British Govern-
ment.
We would appreciate being informed of further developments
in this matter.
It will be appreciated if Emerson will make available to
Ambassador Winant the cable from Heathoote-Smith in order that
Winant may be fully informed.
Repeated to Myron Taylor, Vatican City as Department's No. 16.
HULL
Miss
Regraded Unclassified
233
AIRGRAM
FROM
Managua
SECFET
Dated July 24, 1944.
Rec'd July 29, 8 a.m.
Secretary of S tate,
Washington
A-303, July 25, 10:30 a.m.
Department's airgram no. &-233, July 7, 11:20 a.m.,
and Embassy's airgram A-298, July 21, 10:30 a.m.
The Tropical Radio Telegraph Company has informed the Nicaraguan
Foreign Office that its telegram to the Swiss Foreign Office dated
April 22, 1944, was delivered in Bern on April 23, 1944.
It would appear that the Swiss Foreign Office was in error when it
informed Minister Harrison that no request had been received from
Nicaragua to safeguard from enemy persecution persons bearing
Nicaraguan passports.
In any event, it is presumed that the Swiss Foreign Office has now
received the additional request contained in the Nicaraguan Foreign Office
telegram of July 19.
STEWART
802.1
HDF/gp
Regraded Unclassified
234
AIR MAIL
EMBASSY OF THE
No. 764
UNITED STATES OF AMERICA
Lisbon, July 24, 1944
RESTRICTED
Subject: Treatment of Jews and Anti-Naxis in Dutch and
Polish Prison Camps
The Henorable
The Secretary of State
Washington
Sir:
I have the honor to transmit hemewith a memorandum for the
War Refugee Board covering statements given here by four American
citizens recently evacuated from German camps regarding treatment of
anti-Masis and Jews in German prison camps in Holland Poland. It is
assumed that the information will be of interest to the War Refugee
Board, and if the Department perceives no objection, it is requested that
copies of the memorandum be transmitted to the Board.
Respectfully yours,
For the Ambassador:
/s/ Edward S. Crocker
Edward S. Crocker,
Counselor of Embassy
Enclosure:
Memorandum for War Refugee Board.
RCD:ew
Regraded Unclassified
Exclosure to despatch No. 764, dated July 24, 1944, from the Embasay
235
at Lisbon.
EMPASSY OF THE
UNITED STATES OF AMERICA
MEMORANDUM
TO:
John W. Feble, Ementive Director, Mar Refuges Beard
FROM: a. c. Dexter, Attache
Subjects Report of Treatment of Anti-Masi and Jewish
Refugees in Camps in Holland and Poland.
Anong the American citizens who are presently being evacuated
through Lisbon to the United States are four women who have seen with
their on eyes the treatment of oprements of the Must regime and Jess in
Holland and Poland. It and advisable to obtain imadiately a state-
ment of for the benefit of the Board as it was thought
that by the time they reached the United States they wight have ser-
gotten some of the details. They were therefore interviewed and the
fellowing is a number α their statements.
Honover, before recording their statements, this Embassy would
suggest that they be interviewed when they arrive in the United States
and that, if 10 is at all possible, their statements be made - of
in order to inform the American people of just exactly the type of
cruelty - are - fighting.
The first to be interviewed was Mrs. Ida Johnson, United States
passpert No. 109, issued in Rotterdam, where American address is
6468 East 120th Street, New York City, care of Marrist Hill. I -
Mrs. Johnson and her two young daughters, Marilyn and Jasqualine, to-
gether. Mrs. Johnson is the wife of & colored planist who - evacuated
in March. For - fifteen years she and her children have been living
in Holland.
Before the American entry into the mr, the Johnson family -
not melested but in December, 1941, Mr. Johnson was taken to 8 prisen
easp and has not been seen by his wife since. He is - in America.
Mrs. Johnson and the girls were not interfered with until the number of
1942. Then the Germans invisted that they would take the older girl,
the - over 16, to Germany. Mrs. Johnson, who to a very aggressive
and
intelligent colored wash, put up a vigorous fight, saying that
she would not allow her older daughter to be separated from her and her
younger daughter. Due to the intervention of a Dutch official, where
daughter - a schoolmate of the younger Johnson girl, Mrs. Johnson's
pleases fimally accepted and on September 30, 1942, the mother and the
two daughters were sent to the consentration camp at Amerofert, mer
Streeht. is American citizens they wase not treated too badly but
me. Jehnson, who - in the - from the 30th of September to the
10th & Nomeber, reports that to the no casp there mere several
thereand of Butch Jame, also a considerable number of Dateh Christians,
the mare treated very badly indeed. She and her daughters - members
Regraded Unclassified
236
+
- of extreme brutality. Men were used as laborers and were
Regraded Unclassified
kished with heavy boots by the German guards if they did not walk fast
enough. the and her daughters our - old man, apparently 60 years of
age, who was knosked down and then deliberately kicked to death. They
also - a - hit in the face with a brick until his face - badly
erushed. Fifteen - were shot while trying to escape. The food given
in the camps to both the Jewish and the enti-Nasi Dutch was so in-
adequate that most of the prisoners appeared starved. Their skin turned
yellow. Mrs. Johnson and the other American prisoners were given
sourchat better food and the anti-Masi prisoners, Datch and Jews used
to fight over the garbage that case from their section of the cump.
Following their confinement in Amerafort, the Johnsons were
taken to the prison at Oberhausen. They were kept at Oberhausen with
42 people in - very small room. Thenee they were transported to
Lisberau, a prison for American and British, where they had no com-
plaint to make at all. There were no refugees or anti-Hasis in this
prison.
Mrs. Johnson reported that before going to Amerefort their
house in the Hague was mear a Jewish Synagogue and night after night
she salf the Dutch Masic beating up the Jews. If Christians intervened,
as many them did, they were also badly maltreated.
The evacuee interviewed - Fanny Flinder, American passport
No. 593,535, issued at Washington the fifteenth of December, 1938. The
address of Miss Flinder, who is Jewish, is 1561 Longfellow Avenue, The
Bronx, How York.
Miss Flinder went to Peland in 1938 to visit her mother who -
living in the city of Radays. She was taken seriously ill in May, 1939
and was unable to leave before the mer broke out.
She herself was badly maltreated and beaten and imprisousd in
Poland. She was put in a prison cell with 94 women, all Jowish, These
- wase given 20 simites emercise each day and made to "run like
horeas." The guards stood mar then w they ran and beat them with
heavy /ships if they did not run fast enough. When the women case in
from exercising, many of then were covered with blood. She herealf
was badly beaton more than me. She claim the prisons were full of
filth and lice and day after day they heard the stunds of the beating
by the Gestape. Nany of the - as well as the men died from the
treatment they received is the prisons and many others committed suicide.
She wes then taken to a prison in Berlin, Alexanderplate, which
had been previously a orininal prison, and in - small cell 39 women
were confined, all political prisoners or Jess. If the guards happened
to feel like it, they would take out the prisoners to special colls
which more covered with broken glass and either make the prisoners
dance ea the broken glass or rell around an it. If they survived this
ordeal, they would then - back to the ordinary cell, streeming with
blood. the herself - teld that she would be hanged but this - only
a threat. After - weeks in the prison at Alemanderplate, she me
237
transported to Mobenan, M an American, where abo also claim the
treatment was satisfactory.
Miss Flinter had been living with her mother and stepfather and
coveral younger half-brothers and sisters in Radayn. She W separated
from then when she we sent to prison and has not seen w heard of
them since. She ww informed that they were sent to a shette in another
city and abo hopes that they died. Otherwise, they would still be
living in terture.
She claims that young Jowish girls were raped and then tortured
by the Gestape. She says that she herself has men bedies of young
girls thrown into streets after this experience. They were treated
so badly they were streaming with blood and many of them were viciously
mutilated. She also claims that the first question that was asked when
the Gestape entered a Jewish have was "Have you any young women here?",
and these women were used to satisfy the passions of the Gestapo guards
before they were killed or taken to prison. She tells the story of a
cousin of her mother to when this sort of thing happened and tells of
the searching of her stepfather's house for her young half-sister.
Both Mrs. Johnson and Miss Flinder seened to se to be obviously
telling the truth, although it is difficult to understand how any
individuals could be as erual as they reported the Gestape and the
German guards to have been. Miss Flinder reported that the Polish
Christians were very friendly to the Jews and did everything they could
for them although any Christian aiding a Jew subjected himself to the
- penalties as the Jess received.
Meither Miss Flinder - Mrs. Johnson could give names of their
termers although they said the leaders were always efficials and non
of the Gestapo. In the case of Mrs. Johnson, many of the tertuers were
Dutch Masis although Mrs. Johnson claims that the great majority of the
Dutch people were hestile to the Mast regine.
The important thing in regard to these stories is that they are first-
hand evidence of people who actually saw with their om eyes what was
happening in parts of occupied Europe. It seens very much worth thile
that when these individuals servive in the United States, they be seen and
their stories be taken down in detail. Mrs. Johnson's Stories are par-
tisularly valuable as abs is obviously not Jevish. All four women are
apparently very badly affected by the experiences which they have had.
The INSURED strain which they have undergone has left its marks on them.
Robert C. Dexter
Lisbon, July 24, 1944
Regraded Unclassified
238
CABLE TO NORWEB, LISBON, FROM WAR REFUGEE BOARD.
Please deliver the following message to Robert Pilpel, c/o American
Embassy, from M. A. Leavitt, Joint Distribution Committee:
QUOTE We cabled Saly Mayer through Bern Legation: innerquote For
three months period, July 1 to September 30, you are authorized to
arrange local borrowing for relief purposes as follows: Rumania
$300,000, Hungary $300,000, France 3300,000, Northern Italy $30,000,
total for three months $930,000. STOP Please arrange to keep
separate accounts of transactions undertaken under these authori-
zations which represent total authorizations for these countries
and supersede previous authorizations given you. STOP Transactions
already entered into in July should be included in the overall total.
STOP From time to time we suggest you advise us through Bern
Legation amounts for which transactions consummated and countries
concerned. STOP Please note these authorizations relate exclusively
to local borrowing against eventual repayment by us in sterling or
dollars and we would appreciate being kept advised extent sterling
and dollar obligations made. STOP In addition we have available
for time grant for local borrowing in Hungary sum of $20,000. STOP
If transaction made for this special sum please keep separate account
this item. STOP Assume International Red Cross will continue their
cooperation in arranging details of local borrowing. STOP Please
advise us by Sepatember 1 whether you believe foregoing rate of
authorizations should be continued for last quarter of year, or
whether they should be increased or decreased, if possible giving us
some supporting data for your recommendation. STOP Copy this cable
being repeated to Joint Distribution Committee, Lisbon, END INNERQUOTE.
For your confidential information we cabled Herbert Emerson that in
view heavy demands on us for rescue requirements we requested consider-
ation by Intergovernmental Committee to assume our borrowing obligations
for last six months this year as follows: Rumania $40,000 monthly,
Hungary $25,000, France $100,000, Northern Italy $10,000, total for
six months $1,050,000. STOP We also suggested view of conditions
Rumania Hungary, this authorization be substantially increased. STOP
In reply Intergovernmental Committee generously approved authorizations
given in our cable Saly Mayer, STOP Important you do not (repeat not)
disclose to Saly Mayer these authorizations are for account Intergovern-
mental Committee. STOP Urgent however that you stress necessity Saly
keep separate accounting and documentation, copies of which we hope Saly
can send through pouch to us. STOP Advise Saly that as heretofore we
assume same measure of aid will be given to all persons regardless of
religion who suffer as result of religious or political discrimination.
STOP No (repeat no) publicity whatever should be issued regarding
these increased authorizations. UNQUOTE
5:00 p.m.
July 24, 1944
Regraded Unclassified
239
LC - 102
Lisbon
Distribution of
true reading by
Dated July 24, 1944
special arrangement
(SECRET W)
Rec'd 10:48 a.m.
Secretary of State,
Washington.
2273, July 24, 1 P.E.
I believe and Dexter concurs any approach along
the lines suggested Department's 2057 WRB 52 July 21
wight endanger lives of hostages and is in other ways
unwise. This is especially true in view of recent
developments in Hungary which may solve the problem
without risks delivery your message involves. WRB
110. Embassy is therefore not (repeat not) delivering
Whitman's message nor is Dexter conferring with
individuals mentioned in 2057. They are not in Lisbon
but in small town of Curia 100 miles north.
NORWEB
WSB RR
Regraded Unclassified
240
LL-153
Lisbon
Distribution of
true reading only by
Dated July 24, 1944
special arrangement.
(SECRET w)
Red'd 3 p.m.
Secretary of State,
Washington.
2275, July 24, 3 p.m.
THIS WRB 111.
Portuguese police increasingly active in apprehending
and returning Spanish Republican refugees. REDEPTELS
1819 and 1820, June 24 and 2007, July 17. Urge that
Mexican Minister be advised by his Foreign Office to
grant visas promptly on arrival; also to intervene
with Portuguese for exit permits after visas secured.
Otherwise situation may be catastrophic.
NORWEB
RB
MRM
Regraded Unclassified
241
NOO-265
PLAIN
Lisbon
Dated July 24. 1944
Mos'd 8:02 p.m.
Secretary of State,
Vashington.
2284, July 26. 7 p.m.
FROM B DOBKIN TO JAMES MAIN VEB 112.
Returned yesterday from Spain where all parties
reached complete agreement. Committee here held first
meeting yesterday cordial spirit. Spenish authorities
on British Ambasendor's request gave favorable reply
regarding 1800 transit vieas. Intend proceed next
week short visit Palestine aftervards to United States.
Kindly intervene United States Consulate Cairo for air
passage priority from Cairo to United States. Begards.
NORWEB
NSV
Regraded Unclassified
242
0
NR - 518
Madrid
Distribution of true
reading only by special
Dated July 24, 1944
arrangement. (SECRET w)
Bec'd 5:52 p.m. 25th.
Secretary of State,
Washington.
2567, July 24, 5 p.m.
The LONDON DAILY TELEGRAPH of July 19 contained a British
United Press report from Bern asserting that assurances have been given
by Horthy to the International Red Cross that no more Jews would be
deported from Hungary to Poland and that Jewish children would be
permitted to evacuate to countries willing to receive them.
I brought this report, though unconfirmed, to the attention
of the undersecretary of the Foreign Office and took advantage of
this opportunity to reenforce the Embassy's previous requests that
the Spanish Government do everything in its power to facilitate
exodus of such persons to temporary haven of Spanish territory pending
their evacuation to further destinations to be arranged by American
and British Governments. Embassy's 2479, of July 15.
Embassy is also supporting British Embassy's request for
Spanish vesas for fifteen hundred Jews in Hungary and Germany to
whom Palestine entry permits have been or will be issued.
BUTTERWORTH
BB:WSB
Regraded Unclassified
243
CABLE TO HARRISON, BERN, FOR MCCLELLAND FROM WAR REFUGEE BOARD.
Please deliver following message to Saly Mayer from M.A.
Leavitt, Joint Distribution Committee:
QUOTE For three months period, July 1 to September 30, you are
authorized to arrange local borrowing for relief purposes as
follows: Rumania $300,000, Hungary $300,000, France $300,000,
Northern Italy $30,000, total for three months $930,000. STOP
Please arrange to keep separate accounts of transactions undertaken
under these authorizations which represent total authorizations
for these countries and supersede prèvious authorizations given
you. STOP Transactions already entered into in July should be
included in the overall total. STOP From time to time vö suggest
you advise us through Bern Legation amounts for which transactions
consummated and countries concerned. STOP Blease note these
authorizations relate exclusively to local borrowing against
eventual repayment by us in sterling or dollars and we would
appreciate being kept advised extent sterling and dollar obli-
gations made. STOP In addition we have available for time grant
for local borrowing in Hungary sum of $20,000. STOP If trans-
action made for this special sum please keep separate account this
item, STOP Assume International Red Cross will continue their
cooperation in arranging details of local borrowing. STOP Please
advise us by September 1 whether you believe foregoing rate of
authorizations should be continued for last quarter of year, or
whether they should be increased or decreased, if possible giving
us some supporting data for your recommendation, STOP Copy this
cable being repeated to Joint Distribution Committee, Lisbon, UNQUOTE
THIS IS WRB CABLE TO BERN.
NO.
90
5:00 p.m.
July 24, 1944
Regraded Unclassified
PARAPHRASE OF TELEGRAM SENT
244
FROM:
Secretary of State, Washington
TO:
AMLEGATION, Bern
DATED:
June 24, 1944, midnight
NUMBER:
2161
SECRET
Via air mail the Legation is being sent by the Department
a copy and translation of the May 19, 1944 memorandum from Guatemala
Foreign Office under cover of the despatch 1144, May 23, 1944 from
the Embassy at Guatemala.
Below is the text of the translation of the memorandum
in paraphrase.
Due note has been taken by the Secretariat for Foreign
Affairs of the Republic of Guatemala of the Honorable US Embassy's courteous
memorandum, dated yesterday, concerning the orders which the Department
of State issued for the immediate protection of all individuals who
have documentation as nationals of the US, or who claim such nationality,
pending investigations results to be conducted in the case of each
individual.
The understanding is that each protection is extended
to such persons who find their lives endangered in enemy-occupied
territory.
The honorable Embassy is courteeusly requested by the
Government of Guatemala to lend its valuable intervention in
transmitting to the Swiss Government a like declaration on behalf of
the Government of Guatemala, in the sense that to all individuals
who find themselves in enemy-occupied territory and who own Guatemalan
papers or claim the right to Guatemalen nationality there be granted
the immunities, privileges, the rights, and the most complete protection
enjoyed by Guatemalans of duly proved nationality.
Prompted by lofty humanitarian sentiments the Guatemalan
Governments asks this protection for claimed Guatemalans, but reserves
the right of investigation of each particular case and the right of
rejection at a later time of individuals whose nationality cannot be
proved conclusively.
No economic help of any kind is involved nor is the right
of the interested individuals to be admitted to the national territory
of Guatemala, until such time as their nationality shall have been
duly proved involved in the protection which is herein requested in
favor of such individuals.
To the Honorable Embassy of the United States the
Secreteriat for Foreign Affairs expresses its appreciation of the
cooperation of the former in the execution of this negotiation.
Will you advise the Foreign Office of the gist of
the above message.
DCR:EMS
8-5-44
HULL
Regraded Unclassified
245
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Bern
TO:
Secretary of State, Washington
DATE:
July 24, 1944
NUMBER:
4728
CONFIDENTIAL
Reference is made herewith to the Department's June 24
telegram No. 2149.
The report contained in Swiss Foreign Office note dated
July 20 concerning Drancy which was visited by representative
of Swiss Consulate Paris unofficially, is transmitted in my
cable No. 4730 dated today. According to the Foreign Office,
Swiss Legation in Berlin has been instructed to ascertain
whether American Jews are detained in Drancy as report does
not mention the nationality of internee.
Foregoing message is for attention American interests -
France.
HARRISON
Regraded Unclassified
246
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMLEGATION, Bern
TO:
Secretary of State, Washington
DATED:
July 24, 1944
NUMBER:
4729
SECRET
This message if from McClelland for WRB and concerns
Department's 2377, July 11.
Although Swiss entry visas were secured over two
years ago and on June 2, 1944 were renewed Gideon Richter and
his wife have not yet arrived in Switzerland. The report is that
their boy is in Ankara now.
It may be that the German plane angle is a confusion
resulting from the arrival in Zurich on the twenty-fifth of June
from Stuttgart in a Swiss airplane of ten members of the families
of Chorin and Weiss; Dr. Margaretha, wife and two children, Otto
Henrich: Borbelye, wife and three children. False Swiss visas
were possessed by these people who, as part of a ransom plan
involving 54 members of these families, has been sent there by the
Gestapo. At approximately the same date about 38 of these were
deported to Lisbon in two German planes. It is reported from a
reliable source that a portion of the price was a 25 year lease
to the German Goering Werke of the Weiss industries especially
metallurgical, and that in addition several million Swiss france
were paid although there is no confirmation of this last. In Vienna
there remained as hostages Hans Muetner, Baron Alfons Weiss, George
S. Kornfeld, wife and children.
From a reliable source it is stated that the Jewish
Director of akcwseeauvs, IU, one Wilhelm Bielitz, organized the
departure of these persons and is now trying to come here himself.
Should he arrive in Switzerland I make an attempt to see him.
In the meantime I suggest that Bielitz be contacted by the neutral
attache which Department's 2276 mentioned.
The case of Chorin and Weiss is the most outstanding
example of the current ransoming in Hungary of rich Jewish persons.
It is reputed that the prices are over 100,000 Swiss francs per
individual. Recently in Switzerland one or two intermediaries
have turned up to negotiate such cases. The only individual
which Department's 1946, June 6 and 2142, June 23 mentioned who
after investigation of all those named turned out to have any
useful channels through Kurt Grimm contacted one of these inter-
mediaries on the thirteenth of July who departed for Vienna that
evening to be in Budapest approximately the twenty-third of July.
Around August 3 he should return to Switzerland with practical data.
Regraded Unclassified
247
- 2 -
It appears that according to indications which ICRC
received on the eighteenth of July from the Hungarian Legation in
Bern and earlier from a special ICRC delegate who around July 6
took President Huber's letter to Horthy, the Hungarian Cabinet
met the thirteenth of July and agreed seemingly in spite of storm
of protests and public indignation in Allied and neutral nations
(not to mention Allied military successes and effect of
bombardments Budapest) to consider permitting: the Jews remaining
in Hungary to be given relief from ICRC; and supervision of emigration
of children and adults to Palestine and of children up to ten
years of age other places. According to the same source
after the Minister of Sweden's interview with Horthy on the fifth
of July all deportations have ceased from Hungary.
HARRISON
DCR:EMS
7-29-44
Regraded Unclassified
248
MAE-304
PLAIN
Born
Dated July 24, 1944
Rec'd 9:33 p.m.
Secretary of State,
Washington.
4730. Twenty-fourth
Internees well quartered have many hot and cold
showers. Well heated last winter. Food appears abundant
and good clothing and tailor shape available. Due
faverable sanitary conditions health internees generally
excellent. Ill receive free treatment modern dentist
office with two chairs open each day treatment free.
Notwithstanding favorable conditions internees live
under constant threat deportation which influences
morale.
HARRISON
HTM
Regraded Unclassified
249
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Bern
TO:
Secretary of State, Washington
DATE:
July 24, 1944
NUMBER: 4748
SECRET
McClellan sends the following for War Refugee Board.
Reference is made herewith to the Department's July 1
telegram No. 2241.
Given below is a preliminary answer to the cable under
reference covering the period ending June 1, 1944.
A. The following amounts of free currency (dollar
equivalents in pound/figures) has been sent into: Poland
3,000, Slovakia 105,000, Italy 9,400, Hungary 135,000 and Rumania
17,000, by the Joint Distribution Committee license W-2106.
B. None by Jewish Labor Committee license W-2126.
C. None by American Committee for Christian Refugees
license W-2150.
D. None by Jewish Congress license Y-2115.
HARRISON
LCH: ERR
7/25/44
Regraded Unclassified
250
JUL 24 1944
TO
Mr. Warren
FROM
Mr. Pehle
Reference is made to Cable No. 1075, June 15, 1944,
from Ankara to the Department of State. The War Refugee Board
herewith supports the recommendation of Ambassador Steinhardt
and urges that the Department of State request the British to
instruct U.K.C.C., Istanbul, as suggested by the J.D.C. Repre-
sentative in Turkey.
5:00 p.m.
July 24, 1944
FHodel:ms 7/24/44
Regraded Unclassified
251
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Consul, Istanbul
DATED:
July 24, 1944
NUMBER:
385
CONFIDENTIAL
Please deliver following message to Dr. Joseph Schwarts
from M. A. Leavitt, American Jewish Joint Distribution Committee:
QUOTE Due difficulties in working out lira clearance
we applied for license remit 3,000,000 lira which hopeful
will be issued near future. Meamwhile please instruct
Central Bank cable us total amount advanced also number of
persons to whom advances made.
UNQUOTE
HULL
Regraded Unclassified
252
MAE=272
Ankara
This tolegram must be
paraphrased before being
communicated to anyone
Dated July 24, 1944
other than a Government
agency. (RESTRICTED)
Rec'd 8.59 Pollo
Secretary of State
Washingtons
1352, July 24, 1944, 2 p.m.
FOR WRB RROM BARLAS FOR LEON DUBOMITZKI WORLD JEWISH
CONGRESS NEW YORK:
In reply to your telegram received July 11. The
number of Jews deported from Bulgaria was 14,000. De-
portation took place a year ago. The number of Jews
remained is 15,000 families 1.0. 45,000 persons who
are dispersed in various towns and villages, the
greatest centers being Plovdiv 8,000 persons, Rousse
5,000 Shoumen 3,500, Pleven 4,000, Dustendil,
Dupnitsa, Pazardjik Vidin 3,000 each. The number of
Jews who immigrated to Palestine during January, June
1944 was January 32, February 55, March 131, April
17, May 46, June 127, total 408. All received transit
visas on basis Jewsih Agency certificates. The crossing
of the land border without visas is practically 1m-
possible, Albert Tomano left for Palestine 3 months ago.
KELLEY
DU
MRM
Regraded Unclassified
253
MAE-221
Ankara
This telegram must be
paraphrased before being
Dated July 24, 1944
communicated to anyone
other than a Government
Rec'd 5:49 p.m.
agency. (RESTRICTED)
Secretary of State,
Washington.
1353, July 24, 3 p.m.
FOR WRB
FOLLOWING FROM JOSEPH SCHWARTZ FOR LEAVITT JOINT
DISTRIBUTION COMMITTEE NEW YORK CITY.
Have examined carefully all figures and accounts
in connection with our Palestine relief grant and I
am convinced this must be continued through this critical
period. Blum and Filderman urge this which makes it of
utmost importance. Suggest you remit June and July
grants. We are following developments in the situation
very closely. After careful consideration of the entire
situation must ask you to disregard our previous cable
suggesting discontinuance and accept above recommenda-
tions.
KELLEY
RB
MRM
Regraded Unclassified
254
FBM-255
Ankara
This telegram must be
peraphrased before being
Dated July 24, 1944
communicated to anyone
other than a Government
Rec'd 8:29 p.m.
Agency. (RESTRICTED)
Secretary of State,
Washington.
1354, July 24, 4:00 p.m.
FOR WRB
Following from Joseph Schwartz for Leavitt,
Joint Distribution Committee, New York City:
In connection with food shipments through the
International Red Cross, I suggest that you withdraw
credit in favor of Reuben Resnik at Turkiyeis Bankasi
and open instead credit at Holantse Bankuni Istanbul
for Gilbert Simond, International Red Cross delegate,
Turkey. Please confirm.
KELLEY
EEC JJM
Regraded Unclassified
255
KEM-220
Ankara
This telegram must be
paraphrased before being
Dated July 24, 1944
communicated to anyone
other than a Government
Rec'd 5:52 p.m.
agency. (RESTRICTED)
Secretary of State,
Washington.
1355, July 24, 5 p.m.
FOR WAR REFUGEE BOARD.
Following from Joseph Schwartz for Leavitt Joint Distribution
Committee, New York City:
In order to permit us to pay future land transportation for refugees
to the Syrian border and maintenance of refugees in Istanbul and en
route and for other purposes in conjunction with the resous program,
please ask the Chase Bank, New York City, to establish a revocable credit
of $100,000 at Holantse Bankuni Istanbul and ask Chase Bank to cable
Istanbul "We credit your account $100,000 hold disposal Reuben B.
Resnik payable in installments as desired". This should be revolving
fund maintained at $100,000 until you hear otherwise from us.
KELLEY
WMB WFS
Regraded Unclassified
256
MR - 654
Ankara
This telegram must be
paraphrased before being
Dated July 24, 1944
communicated to anyone
other than & Government
Rec'd 11:22 Pollo 25th
Agency. (RESTRICTED)
Secretary of State,
Washington.
1356, July 24, 6 Pollo
FOR WAR REFUGEE BOARD FROM JOSEPH SCHWARTZ FOR
LEAVITT JOINT DISTRIBUTION COMMITTEE NEW YORK CITY
I received & letter from Josef Blum Budapest dated
June 18 in which he advises concerning the dituation
in Hungary. A pproximately 400,000 (400,000) Jews had
been deported as of that date and further transports
were in preparation. Many of those able to work have
been sent to Waldsee near Ludwigshafen from which place
thousands of postcards have been received. Upper
Hungary, sub-Carpathian, Transylvania and Southern
Hungary are already Judenrein. Jews are not permitted
to live in towns of less than 10,000 (10,000) popula-
tion and in cities over that number they are confined
to ghettos from which they are sent to concentration
points for deportation. Thus far the Jews of Budapest
had not yet been subjected to deportation.
A concentration camp has been established for
those unfit for labor to which the first 50,000
consisting of children, women sick and old people are
being sent to be kept there until they can be sent
to or through Spain. For the care of these 30,000
they ask for $5,000 ($5,000) as a one time grant
to be deposited with Saly Mayer at the disposal of
Philip von Freudiger, a member of the Central Jewish
Committee, other members of which are Dr. Ressee
Kastner Julius Link, Joel Brand and Josef Blum. In
addition, they request a monthly budget of $360,000
for this purpose. I would ask you to undertake all
possible stops in order to make available at least
the $500,000 which they request for all emergency
operations and requirements. They have great hopes
that some might still be saved via Spain where they
estimate 5,000 to 6,000 might be sent weekly. They
suggest further that, if Spain cannot accommodate
the approximately 30,000 to 50,000 who might be able
to leave within a reasonable time refuge should be
found for them in North Africa, They look upon
Spain as the only possible avenue of escape since the
Germans
Regraded Unclassified
257
#1356, July 24, 6 p.m., from Ankara.
Germans refused to consider the possibility of
sending people via Turkey.
Messages received from Switzerland today as
well as information from other sources including
the Papal Muncio in Istanbul indicate that Palestine
certificate holders may be permitted to leave, also
that children up to 10 years of age may be permitted
to depart under the auspices of the International Red
Cross if a haven is found for them. Further that
the people in concentration camps may receive food
and supplies from the outside provided these are
sent through the International Red Cross. There is
also an indication from several sources that a. number
of Hungarian Jews, the figure varying from 1,200 to
1,700, have either already left or are prepared to
leave Hungary en route to Spain.
In connection with all these matters I am
leaving for Lisbon at once.
EELLEY
RR:WSB
Regraded Unclassified
258
COPY NO.
NOT TO BE RETRANSMITTED
SECRET
O.T.P.
OPTEL NO. 239
Information received up to 10 A.M. 23rd July, 1944.
1.
NAVAL
Normandy. Yesterday bad weather continued to delay
sailing of convoys and unloading. Last night a British
Destroyer, a British Frigate and Motor Torpedo Boats damaged
three R-boats between Fecamp and Cap D' Antifer. The Destroyer
was hit by a shell from shore.
2.
MILITARY
Normandy. Small U.S. local advance north of Periers.
Strong German attack in Esquay area British front 21st/22nd
recaptured village.
Italy. Little change along entire front, U.S. troops
are endeavouring to clear Germans from area south of Arno.
Russia. Street fighting in Pskov and considerable
Russian gains South West of Ostrov. Russians have reached
Panevezys North East of Kovno and further South have captured
Kholm. In Tarnopol area they are within 30 miles North East
of Stanislavov.
3.
AIR OPERATIONS
Western Front. 22nd. Lancasters dropped about 135
tons on three flying bomb launching sites; one attack well
concentrated other two unobserved. Off Dutch Coast Beaufighters
-
one missing, sank an armed trawler and left another on fire.
Italy, 21st. Escorted heavy bombers dropped 60 tons
Mestre reilway centre with good coverage. Objectives
behind the battle area were attacked by 320 Medium Bombers and
Fighters. Enemy casualties 12:4:6, ours three missing.
Czechoslovakia, 21st. Brux. Now reported 712 tons
dropped; 11 heavy Bombers missing,
4.
HOME SECURITY
German activity. During 24 hours ending 6 A.M.
23rd 158 Flying Bombs plotted.
Regraded Unclassified
259
NOT TO BE RE-TRANSMITTED
COPY NO.
11
SECRET
OPTEL No. 240
Information received up to 10 a.m., 24th July, 1944.
1. NAVAL
One of H.M. Destroyers struck a mine this morning off
NORMANDY. On 17th/18th Allied coastal forces met an enemy convoy
off YUGOSLAVIA and sank an E-boat and an I-boat and damaged two
lighters. On 20th/21st Allied patrol craft attacked two F-lighters
in Gulf of Genoa sinking one and setting fire to the other.
2. MILITARY
NORMANDY. Southeast of CAEN 2nd Army troops have captured
MALTOT and eliminated salient north of the village. Canadians
cleared ETAVAUX area and surrounding woods. On Eastern flank we
have occupied EMIEVILLE and made small advance. In U.S. Sector
severe fighting reported in area SEVES 21 miles north of PERIERS,
otherwise no change.
ITALY. CITTA DI CASTELLO captured in sharp action and 90
Germans killed SAN GIOVANNI and TAVERNELLE also taken, and our leading
troops now about 6 miles and 8 miles north of MONTEVARCHI and POGGI-
BONSI respectively. U.S. troops have cleared area between LEGHORN
and PISA and along ARNO from mouth to 25 miles inland. They have
captured MINIATO.
RUSSIA. Russians have captured PSKOV and have cut rail-
way REZEKNE-DVINSK, They report street fighting in LUBLIN and west
of RAWA RUSKA they have reached the river SAN. Germans surrounded
BRODY area now eliminated, 30,000 killed and 15,000 captured in-
cluding two Major Generals, one killed, one captured.
3. AIR OPERATIONS
WESTERN FRONT. 23rd. U.S. heavy bombers (1 missing)
bombed four airfields in FRANCE - 473 tons, through cloud. Lan-
casters and Mosquitoes bombed two launching sites DIEPPE area - 203
tons, also through clouds. Bombers (3 missing) and fighter bombers
of A.E.A.F. dropped 448 tons on railway, etc., northern FRANCE, most
with unobserved results. 156 fighters (5 missing) on offensive
reconnaissance battle area destroyed over 100 railway wagons.
23rd/24th. 1,161 aircraft despatched - KIEL 629 (4 missing
DONGES oil storage depot near ST. NAZAIRE - 119; two launching sites
DIEPPE area - 116 (1 missing); BERLIN 27 diversionary sweeps; bomber
support and other operations - 270 (1 missing). KIEL was attacked
through cloud but bombing is considered to have been concentrated
around the aiming point. At DONGES and in DIEPPE area weather was
clear and good concentrations reported.
BALKANS. 22nd. Escorted U.S. heavy bombers dropped
1,008 tons on PLOESTI oil refineries. Enemy casualties 5, 1, 0.
Ours - 26 bombers, 1 fighter missing. 118 fighters attacked air-
fields northeast of BUCHAREST and flew on to RUSSIA.
ITALY. 22nd. 456 light and fighter bombers (1 missing)
attacked communications, etc., in Northern ITALY. Several bridges
in the SAVONA and BERGAMO areas destroyed or damaged.
ALBANIA. 23rd. Liberators dropped 105 tons on BERAT
011 Refinery.
4. GERMAN ACTIVITY
During 24 hours ending 6 a.m., 24th, 93 flying bombs
plotted.
Regraded Unclassified