The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
- 12 -
H.M.Jr:
I see .
Chamberlain:
And we got word from our Hin1ster there
through the State Department that these
beans were taken over by the British. Now,
the French f1nanc1al attache is ver y anxious .
They have been pressing us v ery hard to get
that 4oo ,ooo. Now , ~1e are somewhat nuzzled
in view of this 1nformRtion we get from the from our Minister.
H.M.Jr:
Why not send for Pinsent And ask h1m about 1t?
Cochran :
\l'e already have the 1nformat1on from the
British on this. They confirm t hRt they
will t ake them over themselves.
Bell:
It is A little bit confueing though, because
the firs t dienetch , as I recall it, said
thAt the y had made a r~~gemen ts f o r taking
it over and t he last disoatch we had said
th~t the British offered- to take them over
but anparently the French had used some
influence on the Chileans involved and they
wouldn't let the Briti sh have them. I think
it is a little confueing.
Chamberlain:
\'/hilt I suspect, l•ir. Secretary , is a deal
here. The French wanted t o take them o ver
at the last nrice, but the French Minister
wants the money . Meybe s omebody is going
to get a little co~ission out of it .
H. M.Jr:
I eee .
Chamberlain:
I d)n 1 t know. I t l ooks as t hough t h e
ChileAn contractors were being told t hAt
the mo ne y could come from here.
H.M.Jr:
Can I stall a little b it on t hnt one ?
Chamberlain:
,/e are stalling on that . . I just mentioned
it.
Then another noint in connection with t h is
is t hl>.t we had ,.,0 rd rro:n the British Embassy
that the French were tnauiring of the meat
oacking establishments in Euro?e as to how
186
- 13 much mel't was available and at 1.,hat orice
for future contrPcts . ;/e thought it m'ght
be well t o have some of our off lcers k~eo
an ey~ on the situation of the French buying.
H.M.Jr :
And for
Chamberlain :
To 2ee whether - i n the first olace t o g ive
us informa tion in case we ge t reoue~ts and
to .,.,.,tch wh11 t they are doing, b~cause it
l ooks as t hough t hey - we can ' t und~rstand
whPt they a re doing. It l ooks as 1f they
thought thet the blockade 1~ould be up and
thPt they would be eble to shi~ goods fr cm
South Amer 1ca to France and they 1~anted to
ge t contracts in a dvPnce .
H. M.Jr :
Do~s
Chamberlain:
ThPt clears t hat p11 rt of the do c ket . On thRt,
we may - we want to ge t your gene ral imo res st on
and I 1dll go ahead "'i th t he French on t hese
la~t two ouest i ons .
H. M.Jr:
I wl'nt to t h i nk thAt over.
Chamberlain:
The amount is very small .
Bell :
You wanted t hP t on the ltst, didn 't you?
H. M.J r :
Yes, I want it all on the list .
Whi t e:
I stuck the . }0 , 000 and ~ 50 , 000 figure s ,
hoping to g et mo re inform~tion. It would
be a 11tt1e bit difficult t o decide unt il
we know s oecifically whe t they want it for ,
because the way it 1s s tated, they can use
it for almo st any ouroo ee they wa nt .
H. M. J r :
Well , out tt on the list.
Chamberlain:
The other di ff i c ulty comes uo - is one t he
Fr ench wanted something over ~400 , 000 to
oay the interest dae on the Swiss loan in
Swi ss france --
Cochran:
The French have bo rrowed this money ~~~-annual
orivAte S1.riss banke in 1939 and the
w~t
ouroose?
thPt clear your do cke t?
14 service wRs due August let and they had
the money on deoos1t here in do llars and
they ;:anted t o oay the Swiss Nat i onP..l B nk
"
for dist ribut ion $ 400 , 000 .
H. M.Jr:
In Switzerland?
Cochran:
Whi te:
or course , they could oay 1.n S11les France.
It 1.e a franc debt Pnd they certo1.nly must
hPve Swiss francs.
Cochran:
And the Sw1.ae !Unister has b een ln already
some days ago honi ng tha t we could ra.cHitete
such a payment to help Sw1.tz.erland out.
That ie, they eay they a re ent1.rely surrounded
by these --
H. M.Jr:
I 1·rould be 1.ncli ned to go along
I would out 1t on the list.
White:
Here the debt is in Sw1ee francs.
\-11. th
thl't one.
I understPnd .
White:
They want to ~ny it in dollars, under the
aeeumotion t hey hPve no Swiss !rPncs
a ve.ilable . That 1e a dubi ous assumotion
to me. They e re just using Every poss ible
excuse they can sa t hey should t o reduce
the amount of funds which are under control
here.
H.M. Jr:
But if the Swiss Ministe r eeys it ls all
right --
Chamberlain:
he hRB been anxl.ous t o have 1t.
it is v ery imoortant.
He reels
R. M. Jr:
I would be eympPthetic to that.
Coch!'!ln:
And ~e has n roteeted to the State Deorr tment
against our turni~g it do1m.
1!,1-' , Jr:
I me11n --
Chamberls1.n:
I am not uneymoqthetic to 1.t.
I t hlnk that
188
- 15 the only - you have got to re~ember that
111
1f we go - lllflke this steo
probebly
have to ~ake other steps.' we w
they hPven 1 t got many other obligations.
H. M. Jr:
~/ell ,
Cha!Jber lai n:
I don't thtnk so.
White:
Is the 6ssu~ry ti o n that they will default
if t t is money isn't available? I question it .
Cochran:
I think if t hey have the reserves in dollare ,
they ought to be able to use them to keeo
·
from having a national default .
White:
\lhy? If you assume t hey are going to default,
and I qay that is an aseumot i on, that must be
rather strange, because they rnuqt have Swiss
france --
H. M.Jr:
Granted, but this being Switzerland , I ac
symoathetic. I would out it down anyway .
I c11n tt>.ke it uo with the Pr esident . I am
definitely symoathetic on thl't one.
Bell :
Th"t 1s the trouble w1 th this whole Frer.ch
situation. We haven ' t got definite informat i on,
but they did pile uo tremendous reserves i n
this count r y and t hey have got oracti call y
all of thetr reserves i n do l lar s and we are
cutting them off wher. you etoo these payc ent s .
H.M.J r:
I know. I am eymoath et i c , parti culR r ly with
t he Swiss Minister ~eking .
Cochran:
They are tryi ng to bo l d on t o t heir cur r ency
a nd they made the arr angement with t he
Gove r nment while they a r e st il l f r ee i n
Viche . They are afraid the Ger mane may take
over ev e rything and r uin their curr e ncy .
H. M.J r:
I am running a little behi nd . I f you c ou ld
have this memorandum re~>d y for me a t t e n
tomorrow morning and after our 9:30 meet i~g,
I will go over it wi th you; and i f it ian t
in eatisf!lctory shape, I wi l l give you a chance
to adJus t it again. Is thJ!t crowding you
too much?
189
_,
- 16 ~~berla1n:
H• •. •Jr :
Oh no, indeed.
I hAve
llr.JC!:. ,
.r . Monet o~ts1de.
~hank
you ver y
BRITISH EMBASSY,
WASHINCTON, D. C.
Pers onal and ._
33
September 4, 1940 .
Dear J..r. Secretary,
I enclose herein for your
personal and secret info r mation copies
of the lotest reports r eceived from
London on the military situation.
Be 11 eve me ,
Dear J:r . Secretary,
V r,.
~1
ncerely yours ,
The Honours ble
Henry t.or-enthau , Jr .,
United Stotes Treasur y,
\.oshington ,
D. C.
•
Bia KajeatJ' a Cruher
eacort1ag an
outwar~ bou~
Jaater~•J
torpedoed
0
f1j1" wblle
oo 0907, waa
•••nlas la north waat
Sba 1a r aturolaa wltb GaatroJ••
aacort.
au
ary
oacar oln~
two GaatrOJare dasagaG,
T, • laatrCJOl' "IYanhoa0 be' to be aboodODed
an<J
11.1Uk;
.. rv1vora
''
ware landed .
11.1:..
daatro,-r •expreaa• 11 approachlna barbour lo
t ow under aacort and baa GO caaualtl•••
u.u.
orulaer "Galatea• ••• all&htlJ
damaged b7 aloe
a~loaloa,
when antarln& an eaat
coaa t barbour.
Yeaterday, one elna- aweepar waa loat
bJ mlna, and a ub..rlo• "Tuna• rtPorta abe aank
a o- 'oat.
2,
!loyal ASr .Foroe.
Durin
the olgbt of Auauat Slat/ a·taab.r
192
boav7 booabera, but ttroa ..re atartod at
Barl1a
1•• wor~a,
aDd tiroo a,;! ox looiooa
ceuaod at tw ell targato ohowhero 1D OtrUDJ•
Pour alrorott ottaoktd Pero·e•aloe taotol'T
at Spaodau without obeorvad reaulte, and
two .ore etarted a tiro ot Dorlin airport.
Tweot7•two oero.troaoo wen _._et the
e lt~r n~t 1••
tor •to otteakode
Yoeterda7, all of
roturnod aatolJ,
b~t
o~
at ro,.tt
lack ot cloud cover
obliged tbl aajorltJ to obebloe tbol• taoko.
HowoYer two aorodroaoa 1a Bollalld wore boabod.
x... t aiaht ea a!Joeratt wore nat ••'
w1to tbe tollowlaa objeetlvoat•
Sh1pp1na at J;adoo olld at porte ot
northern f ranca)
011 targeta, alualDUII .,rko ar.d aa
olootrlo power otatloa 1D Otr=aD7J
Tho Boaoh -.gooto taotor7 at Stuttgart)
Ao aircraft taotor7 at La1pa1aJ aDd
Aero• eng1De wcrka at Muaioh.
,8
alao
\lwa;r targets and aorodro••• wore
1ocl~dad .
uoo beav7 boaber ia aiaein&J
report• awai t ed.
ltallo
Six heu7
property at Lolda, one paraon killed aod
f i f t y- teo
l arge
~o~n d a';
~oo~la nd
end laatb
t 1rea were a leo oau eed 1o CWI. erlaPd ant
D1 nb1tolah1ra.
Y11terda y da;rl1gbt
l'li~a
..,.. aplo
dir ec t ed apinat Ia n and 'rbuu
tuarJ
ara&J t bt .. 1n objeotlwaa balna aare4l'o•aa,
For mation of over 100 croaaad tba ooaat
DoY er atout 11 a •• • , waa 1ot erctpt ed b;r our
flghttr a and dlaper aad a ttar belt e o bour•e
f 1gbt1ng,
Three ai .tl ar e ttaeke t ook pleoe
in t he etterooon.
and caaual Uae
Conelda rabl e
Tbeea wer e alao 1ntaroa pted
cau aa~
da ~ga
to a 01117 elroratt .
to bouaa propert:r et
Or a Ya eand , eome 1ndua tr1al da .. a• ot 'rilbur;r
and \ n
u,.
'l'"~"' u
.a tuer:r er aa , caaueltiu are
reported 7 killed evd ' ll wou nded.
Dtopo t
• • a a t tacked 1n
Ouerd 1 a
t ha et tar noon where
' were l<1l le~ alliS 111 1roju.rad.
Lut ni ght, an ..:r aethit;r 1111 oo a
194
pet
lD lOUth 1111 Wll blt, ODe Ohhl'D Wll deem,
aad t •~te ll'l b\•.l'a1q.
'lblre w11 edlllUo•l
ladaetrlll ltemes- ot 1111 t.pol'te cea t. tbll
11'11.
of
A 11.11'1 fll'l Wll
Ol~lld
ln the OIOtl'l
rhtol.
'·
o.. trozld . ===~·
17
•
•
'
u
10
1!7Hhbl
plloh tate) .
D·
~1pp1p3 Caagalt1••t
Yonegll a ah1p ( l, '100 too•) torpe4eed
11'11:! eualo: b7 U- boat Ausu•t 211114 wut of Ieelellll .
Oae t wldhb 1b1p ( 2 , 400 ton•l 1n outu.1'4 boullll
oon•o;r, tQrpodoed Augu•t 28th wutera l rJIPOeobl
All pauengore and crew o f t>uteb 1h1P
Volendam were 1aved wltb tbl exce ptioa of the
pur1er .
o.
On AUgult ~lit ~7 . .diu bo•t:•n
lltll'D t.lb;JI•
a tteolu
195
_. eefel7, 111 QUo et
d.reratt ..,
·~
tlabt . . . .poeltlOIIo
!!1ltl!.•
.,.
tt1e p•1od lOtll • 29th till tl'l&...
ea ble t •~
up et
~oett oo
11 DOW
111 t
a 1 o~ aro•JJlrO , •o4 t~ polt
UIIOCC:U~lll4 •
eoleet114 leat
ojtl'o
I
~11 t1CII t e
Dill
Se;~ t•bll' •• tbl tornoet U• ot
4ehDOo ot tbe co10IIf•
at
e4vellf wltbdrewa to •
t. brl tad• p1111p rnallll
196
'roleSl'U II. .Pttobe4 fl'll• Loolloo
earl7 lo tbo IIOI'DlDS of S-teAOI' 4th.
111 tba ooune of op ..aUoae earrlMI oat
bJ our blen7 fol'O. . . . . beUl. .blP oDII no
aoU-alrouU uwl..n wl tll Oil lpnt t~
t
DlrbOUl'•
011 &\lillot ~Ua L • ou~rlM •ceot~alot•
•40 0 PJ'OII,IIillll otteoll OD 0 V-bMto
Url
After
torpelloH o 4eto•tloo • • ~aea•• oDd
oU. • • toUJI4•
Yootortor oo.. olroraft ottocked v-toote
ott tho otot oooot ot sootlallll ond oortberD
noltn4, but o1tbllut dolblo roo111t1, ood •
llrltlttl oh1p tlr.,
to cS1., ..
197
targata war. bollbed b:r
~rart,
!lrea
·~~~
MDall
DUIIbera of
111'-
• arted at ooe other, reeolte
were UDOb.. r'ted ,
->111 I)' COIIIIIID1Cit10D. . t
llunlob ware blt bJ ener.l bombe, and 1 nu.ber
ot bomb• buret in target ar••• ot noeob
lllagnoto Wozoka elliS en llu.inu• teotor:r•
Other
objeotl••• •••r a aide area Wire euoceeefull:r
located ebd et t aoked b7 alngh druatt.
lt117o
the •orelli ead Plat taotori11 ... re eaob
bombed b:r two etrcreftl ooe
bo~r
unable to
looate terget ottaot aa rail • r bridge o•er
rl'fer, whlcb wee belle'fed bit.
taet ntnht
de~etcb.S
n h elr
ea
bo11bera 1D Ill nre
to the tollowlog objaot1•••1
o~ut
e11"
h••rlnger
ald, SO hM"J'I
oll Ur&ote 1c Oer a117 ar.d llollaDCI, 2:1 hti'IJ
l!ld
d 1WD1
ODIIIJ
IUb.-al'lDII aDd ahlpptlli
1D
f rench aDd l!alsleD porte, 17 hen:r a nd •dilllll
arme~ant tac torlee ln Oer.. n:r, l& biiYJI re1l••:r
and waterwer teraeta, guD ••pleoemeata oppoal ta
1:0'111' , !I hiiVJ aDd
ed1UIIo
One heav:r aod oDe udlu• bollber blve not
bien reported baoko
8 bc••:r bOmber• ware 11nt to attac~ ~
198
l'lll'ther
dun;;a reporte4J Jlrhtol, 6 kill.O ll
wounde4 J eoaa d uaga to reth&J track.
8wa •••• numeroua firee cauaed io bue1neee
lla tlonal
Oil l!ef1Derha Lt4. bna o load don
end • c1eterna .re ot lll buro1D&) IHI ldlll.relt)'
c1aterne ere etfeota4.
Yeetercla7 6 malo reida t ook pleoe
d••r1n,s t he d•:J 111 t he eut Jent end 'lbeMe
1
tuar7 orea a.
lppros1.. ttl 7 850 aircraft
were ~~~lo1ed • eeoh re1d conaiet1D& of 1~/110
a iroreft.
~ 11 were 1nteroepted b7 our tiahtera
and caeuelt1ee
ere 1nfl1oted.
a ttecl<td• bll t ellere etill 11nioeabl..
c onelderable da:.. ge to propert)' wu caua.. at
aocblater e nd Cbath.. b7 t be firat ra1d , but
oeaualt1ea ware a11&ht. 01117 a ~11.. aDI 1a
exploe1n end 1DOe!IIS11U'7 took pl8ce 1D the
IU.dlwusa, ; J11u1de ao.s on• • lll'&e ....
of
ec·•~h
uet £n&l8od,
~ otal
d . . tl'o7ed
u,
'r l'Obebl7 deetro78d b7
oa• dl'onU
II t osb•••• 13 Ughtere.
~•&•d
1•
b7
our
t !llll~re ,
eil'Ol'8ft
1 tle;btva.
To tel P' ~abl7 dutrDJed 18, daused 311.
Cl'1t1ah eas~alt1ea ware 20 t~e;hterw (10 pllete
k11le d or mu1osl .
~hir 1n• caeuelt1•••
11.
ru•1ng tbl period of the au... rr a
o.utrAl a ~ on• Bl'1t1ah enlpl ot • total of
111,
,o
toae ara
1 D yal'iO II
81'1&1,
but ooo•
11'1
Jlt re~ or\ed ••
200
• . OHhfta
*'•
w.nue " ..... w 111 u&J~~~:a tat• ...,... 10 a..
1 u ...., .. ~
ptttiMU'T fJI IU .uiJic . . . . . .1Al ti~Uoa to• \U aeeoutt ef ......, _
....,_, flltltlall r ..tu .. .Uv u4ve La lnMe4 tv.rUerb•. federiq
,_.... I ...., .... We ft\Jeot to Oeaftl a.rce -utt b \Jilt IJ!Nl6l l1yidtn
., ..,. ,.,..._.., et hate . Ill'. ~r..u Muet '- a ~-• ....., ., otJ~Mn
tUN ...,.., Jlttl\lT )e . - . a-... .t - * pl'l.tltrce•·
,._!eaa ~relp
'-'IN rtpleUoae 'J)Hislbl\ ltah ~t eftloert a'Wea4 ht. eperaU. . La
,.....,. . . . . . ~ tUliP ................. tlaen II1Cin .....,,...,. .. .,...t
J"IRN 11 1Mb ettlc«-e to u cept tor 4ep..l\ La tlltu lllle.rl... '-U - "
&lll&r ..._, . _ 11r f'JUMe, )et.Jl Mlrteaa ._. tuetp, r"w.. La u.e u..aa
..... .-1 aet .....,... th - · pdftltpl U IV tfllee&'l, ~n, lriiMt
,...... • et tM l'tMa._. t.Mt ~ ~loah a'"-& t1el -.ala•t .,..w
,.l 1Uape 'kl-. u\114... h t v On•a.1 flltl-1 la •U81'1 nA u Uh •
•n• "-
1"'
.,.., ..,_.... tlaal17 te a l't...t I..U•t llnel.U. a ahua..,....u... t• . .
u 1_.., et - .t IV tl:pta.atle tftlov• fJI tll.e fi'Mst-. replatleaa. JraMt
~ u JHt-.\le tMt w ctw • CIMft1 u .............. IV ettleel'a an.t ,
'-' MUte. LaU.u.al ...., . . ~ . - t h a• tlwlr anN.
EIG!n'Em PI;m 5T1U:m!
m:;; YOBX
September 4, 194o.
M7 dear Mr. Cochran:
The Bank of the Hanhattan Comp8JlY, New York, has under date
ot Augu1t 30th filed an application , No. BMV 546, tor the tree operation
ot the account of my brother- in-law , Mr. E. C.
~~this, a French citizen
nov in the United States under quota immigration visa No.
reaiding at the Ritz-Carlton Hotel, New
Yor~
1207550
and
City.
)lr. ~!athh ia, aa you may know, one of the toremoet manutac-
turera of automobilea in i'rNlce and plans to ellga8e 1n this country 1n
the bueineae of the manufecture of automobilee and airplane eneines.
He now baa on deposit with the l!aDlt of the Manhattan the aum
of $8,000, recently transferred to the bank b1 a Port;.~geae bank at the
tLne that
~
brother-in-law vas in PortUoPBl to be aura that the mon111
voul.d not fall into German banda, as did hia factory in Strasbo\lrg.
~e
azpecta to be able to put more money in the account aa soon aa
various queations in regard to hie affaire in the United States are
settled.
JJq anhtance which you msy lend in regard to the favorable
reception
of the Bank of the ~~ttan •s application by the Treaaury will
be greatly appreciated.
:Believe me, my dear ~:r. Cochran,
Youra sincerely ,
IWJRIC:C:
~:r. H. ~erle Cochran,
Treasury Department,
Washington, D. C.
(Signed)
COPY
:son:a
~~urico
Poyer
BDS
202
PLAIY
. ..,.
ILlNILA VIA N. R.
Dated September 4, 1940
Rec'd 4:05a. m.
Not to be diaaemin~ted
without consulting Commerce.
Secretar,y of State,
faahiJI&ton.
Fourth.
J'OR COOAERCll:.
Wonthly General Reaume (Section One).
Buaineaa conditions unaatiafactor,y during July.
Intensification of
European war and increaeed tension in Far East caused ceneral weakness and
uncertainty and further de~resaed prices of maJor Philivoine ~roducta.
'"'I
~
I~rt s buaineaa extremely dull being affected by hea~ atocka poor cona~tion
and general uncertainty.
Practically all buyera adonted hand-to-
mouth buying rolicy and will consider purchasing only for immediate requirementa.
Retnil business extremely dull even for this aeaaon of year.
avoarent that extremely low
~ices
of
Phili~~ine
~ita
commodities substantially
raduced general purchasing power t hereby markedly curtail
conaurn~tion
in
practically all linea.
Export volume showed very considerably decline from
also tubatantially below corresponding month last year.
~revioua
month and
Analysis of available
erport figurea for July ahow substantial declines from previous month in
coconut oil copra cake and meal desiccated coconut centrifugal sugar and
cigara and geint in Abaca leaf tobacco lumber and copra.
Generally believad
erport vol~ ver; well maintained this yeer despite extremely adverae cooditiont .
Steintorf
HICKOK
203
llacD
PLAIN
Ws.nUa Tia N. R.
Dated September 4, 1940
Rec 'd 7:52 a.m.
Secretary of State ,
Washington.
Fourth.
FOR COI.!l.!ERCE.
llonthly, general resume (SECTION TWO) .
HoweTer, analysis available figures first seven months this year
fails to support this contention. This shows declines in shipments of
sugar, copra cake and meal, tobacco and logs and lumber and increases in
coconut oil, cigars and mineral ores.
Im~ort
Tolume quite large during
July due possibly to belated arrivals various shipments ordered early this
year.
Available figures show gain over June in arrivals
auto~obiles
truck
tires, canned fish a nd canned milk with declines in building materials,
wheat flour and fruita and vegetables.
Probable aggregate volume con-
siderably above June and also larger than Jul;r last year.
Government finance showed very satisfactory increase in Internal
Revenue collections during July compared same month last year.
Total
collections Eureau Customs and Internal Revenue first seven months this
year show drop considerably less than one percent compared sapely .
This
very aatisfactory showing i n Tiew unfavorable conditions obtaining during
preaent year,
Foreign exchange mar~et ~ractically atationary during July
with substantial demand for Unite d States dollar and inadequate supply exnort
cover.
Condition necessitated heavy purchases of dol lar drafts from
Inaular Treasurer.
Ste i ntorf.
HICKOX
DB!
. ....
204
MacD
PLAIN
Manila Tia N. R.
Dated September 4, 1940
Rec 1 d 7:55a.m.
Secretary of State,
Waehint;ton.
fourth.
FOR COloii.!ERCE.
lolontbJ.¥ , general resume (SECT I Oil THREE).
Banking situation featured by decline in loans discounta and overdrafts collections banks found !t necessary to substantially curtail
credits.
Securities market continued very inactive but basic conditione
slightly better end marke t showed signs of recovery toward close of month.
Subatantial increases in investments both corporations and partnerships
during July thus reversing trend of two preceding months.
Slight iaproTe-
ment in shipping conditions during July there being more tonnage available
and no further heavy increases in freight rates .
showed usual aeaaonal recession.
Railway transportations
Real estate sales remarkably active
during July but there was fairly substantial drop in new construction permite.
Demand for building materials anpear to have declines somewhat.
Ex-
port •U&ar market very inactive thro~~&hout July with prices falling to
new alltime low although market showed so~e evidence of improTement toward
cloae of month.
aherply.
Domeatic consumntion suear very weak with nrices falling
Steintorf
HICKOK
205
PLAIN
llanila via ll. R.
Dated Se~te•ber 4, 1940
Rec ' d 7:42 a.m.
Secretary of State,
Waehin&ton.
:rourth.
FOR C<l!U:.f<CE .
Monthly, general resume (SECTION FOUR).
Coconut ~roducta market continued extremely depressed.
Prices of
copra coconut oil and copra cake and meel declined very materially while
t here were heavy declines in exports of coconut oil and cake and meal
although copra shiJ:menta slightly ebove June low.
Abaca ID8rket etatiat ical
position renewed activity in London market and fairly substantial purchases
by
United States.
grades.
Prices moved Uf'll&rd graduelly ~ticularly for lower
Rice market sooewhat improved during July with alight advance in
pricsa of domeatic rico thus adjusting disparity between rice and nalay
quotationa .
Tobacco market showed considerable
im~rovement
in
shi~e~te
both leaf tobacco and cigars while preliminary report• indicate this year' s
domeatic crop considerably larger than for
~revioua
year.
Domestic demand
for lumber and timber showed further season reduction during July but export demand quite active .
Gold production during July reached new high
for ~reaont year although falling
October nineteen thirty-nine.
1
ooewbAt below high ~int attained in
Steintorf
HICKOX
208
llacD
PLAIN
llanila vta ll. R.
Dated Septeober 4 , 1940
Rec 1 d 9:20 a.m.
Secretary of State ,
\fasb1Dgton.
J'ourtb.
J'OR COO!ERCE.
Uonthly , gener al resume (SECTION FIVE , LAST) .
Cotton textiles market eT.tremely depr essed during July with domeatic
consumption falling to lowest level in many years and with import business
al&ost cocpletely stagnant.
Sales of automotive vehicles during July quite
aubatantial despite very unfavorable conditions.
However continued heav,y
iaports raiaed dealers stocks to new high for recent years.
purcbaainc newer as reeult extremely low prices
Reduced
Phili~nines ~roducta
advereely affected sales wheat flour, canned milk and canned fiah during
July but market for fresh fruita and vegetables exceptionally active .
Power
production during July reached new record htgh of one four eeven eight two
thousand IWH pin eix 'DOrcent over June and seventeen '!JIIrcent larger than
in July last year.
Cumulative tot al first aeven months nineteen forty
&howe increase eleven nercent.
Net radio registrations during July reached
new alltime biwh indicating this one line of buaineas not affect ed bf prevailing depreasion with total for month one nine eix three.
total firet seven aontba &howe gain sixty-one percent.
HICKOI
CSll
bJ
Cumulative
(End) Steintor f
G-2/2657-220
207
RESTRICTED
No. 185
SITUATION REPORT
M.I.D,, W.D.
September 4, 1940.
12:00 l~.
This m~1itary situation report is issued by the Military
Intelligence Div1sion, General Staff , I n view of the occasional
inclusion of political information and of opinion it is classified
as Restricted.
I,
Wester n Theater of War.
1,
No ground operations ,
2.
Air Force Operations.
During daylight on the 3rd the Germans operated in
force against airdromes in southeastern England and against strong
British fighter defense, While British airdromes near the southeast coast are reported as being maintained, it is evident that the
German attacks are being met farther inland than was the case a week
ago, During the night of September 3-4 raids ~1ere made on British
ports and on factories .
During the same night the R,A,F. operated over GermallY
as usual , There was an air r aid alert in Berlin and considerable
activity in the Magdeburg area.
Air fighting is in progress toda;r over England.
II.
ac tivi ty,
Mediterranean and African Theaters of War.
No ground operations wer e reported and apparently air
widespread, was minor.
~1hile
RESTRICTED
208
TREASURY DEPARTMENT
DATE
September 4, 194o
Secretary Mor&enthau
TO
No. of Shares $ Proceeds of Uominal Value ~ Proceeds of
Sold
Shares Sold of :3onda Sold Bondo Sold
August
26
27
28
29
30
31
25
2,303
500
525
2, 800
2, 100
58, 158
11, 713
86,872
...2h5.ll
21 , 000
56, 000
53 , 000
177 , 000
67 , 000
14, 050
35,65:>
35,173
107 ,112
42, 638
~ . 950
215, 559
. 376,000
238 , 623
1, 424 , 452
49 , 248 , 467
3. 230 , 000
2, 778 ,14o
3 , 606 , 000
3 , 016,763
¥ea from
ebi'Ual')' 22 to
.!uguet
24
ro'r.AL FEBRUAl!Y
22 TO AUGUST 31
1
1, 430 , 4o2
49 , 464, 026
Mr. Pinsent roported that sales of non- vested aecuritiee for the week ending August 24 totaled !;i1, 000 , 000 •
•
:.:J
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
ro
SecretarT Worgenthau
pftOM
llr • Cochran
September 4, 194o
- Ca-N F-1 DE N-+1~
The reporting banka 1 tranaactiona in registered sterling were a 8 follows:
Sold to commercial concerns
•45,000
Purchased from commercial concerns
-oThe Jederal Reserve Bank reported that it sold • 25,000 in registered
aterling to the New York agonc7 of the Bank of Taiwan and ' 5,000 to the J.merican
E:zpreaa Company.
lor the first time &ince last October, the open market rate for sterling
rose aboye the official selling price of 4. 0}-1/2 for registered sterling.
Jollowia& an opening rate of 4. 0}-1/2 bid, transactions in open market sterling
were effected bet11'8en New York banks at 4.0}-}/4, and later at 4.o4. The amounts
iovolnd in these traneactions were reported to be very 11!:1&11. The final quotation
waa 4.0}-1/2. The question baa been raised, and 1a now under consideration b7 the
" Britiab authorities, as to 'tllhether registered pounda ma7 be emploTSd against
com:itmants in open market sterling. Transactions of the reporting banka in
opeo IIILrkBt sterling li'Bre aa follows:
Sold to commercial concerns
~8, 000
Purchased from commercial concerns ' 50,000
The other currencies closed as followe :
Swiaa franc
.2279
Swed1Bh krona
.2}85
Canadian dollAr 12-1/~ discount
Lira
.0505
Reich~~JW"k:
.4oo0
Cuban peao
Mexican peso
Holid&T
.1996 bid, • 2016 offered
We purchased $52, 100, ooo in gold from the earmarked account of Hie Britannic
~Jeat7 1 s Go•ernment.
The Jederal Reserve Bank of New York reported that the Bankdof ~dab:S'
lhiPPing appro:d.JIIatel;y $5Q,OOO,OOO in gold from Ca.DBda to the Fe era , o
l&rmarlr:ed for account of Hie Britannic MajeatT ' e Government .
"
..
UNCLASSIFIED
J.F. ~.
--
....
per
M.. R 20 'U
<lite
- 2 -
The report of August 28, received from the Federal R
Bank
g1Ting foreign e:c:han&e positions of banks and bankers ineiaetrvedi t i of New York
a r ct, revealed
s
that the t o t a 1 poeition of a 11 countries was short the equivalent of $12 44 000
•
• 3 iti•
The net cha""" in th
e pos ons
-..-•
a.re as follows:
an increase of $530,000 in the short position,
Countr:;
England•
Europe
CaDI\ cia
latin America
Japan
Other Ash
All others
Total
Short Position
AUi:Uat 21
Short Position
A~st 28
$ 1,641,000
5. 7~, 000
2 , 000 (Loll&)
286,000
3,44o, ooo
967, 000
5,000 (Lon&)
$11,814, 000
Increaae in
Short Position
$ 2.399. 000
5. 330,000
178,000 (Long)
313, 000
3. 531,000
949,000
$12,344,000
$758,000
399,000 (Decrease)
66,000 (Decrease in
Lon& Poai tion)
27 , 000
91, 000
18, 000 (Decrease)
5, 000 (Decrease in
Long Position)
$530. 000
The report from the Federal Reserve :Bank of New York liati~~g deposita for t he
account of Asia as r eported by the New York agenci es of Japaneee banks onA~st 28,
ahoeed thet such deposits totaled $50 ,175, 000 , a decrease of $3,750,000 since the
last report ae of A118UBt 21, Included in this total were $28,869,000 in deposita
with the YokohaJDa Specie Bank, New York, made by ita branches in China, showing
little change from August 21, and $13, 525,000 in deposita made by Japanese banks
in Japan and lilanchuria, off $3 , 187,000. Loans made to Japanese banke by Yokohema 1 s
New York agency totaled $16,188,000, an increase of $1,333, 000 over the overdraft
of August 21,
The equivalent of the Eombay gold price wae $34. 24, up 10¢.
was priced at the equivalent of 45.07¢, up 1/16;.
Silver in Eombay
In London, the prices fixed for spot and forward silver were both l/16d lower
at 23-7/16d and 23-l/4d respectively. The dollar equivalents were 42. 56¢ and
42.22¢.
Randy and Barman's settlement price for foreign silver was uncha.~~ged at 34-3/4¢.
The Treai!Ul'y ' a purchase price for foreign silver was also unchanged at 35¢.
fe 11a.de three purchases of silver totali~~g 325, 000 ounces under the Silver
Purchase Act . Of this amount, 200, 000 ounces represented a sale from inventory,
and the rema.inill& 12 , 000 ~ncea consisted of new production from foreign countries,
5
• ' " , , , _ , "llToey.
~-:/P/}-
•combinad poaition in registered and open market sterling.
211
(Handed by l:r. stopford of the British :!:mbauy to Hr Cochran
in the Treawury at 12:30 noon, September 4 , l94o . ) ·
"Cred1ona-1e l:adrid has aeked Chaae Bank whether
they can discount their 3 months acceptance draVll by
Miachein ClermoDg- Ferrand. The underlying oper ation
covera purchase b;r Mischein ClermoDg-Ferrand Spain
of rubber from Indo-China for Spanish consumption .
The ahipment might in any case not be allo\led by ua
but we would not like to aee such facilities placed at
the dhp oaal either of Madri d or Mieehei n France and
hope they will not be forthcoming .
lTational City Bank have advised New York that on
June lOth Folfuss Meig of Hulhouse aak:ed Brown Harriman
to pay 324,800 dollars and Chase BaDk to pay 209,500
dollara both to the lTational City BaDk. It sppeara
that funds were not received.
As advice vae only by
letter 8UCh inatructions would probably have arrived
after June 17th on which date the account waa pr e~
bly elre&dy blocked.
On August 23rd Guaranty Trust credited Banque de
Parill et deu Pay a Baa GelleVE. 1 s account w1 th $l6o, 000
received from Morgan, New York, by order of Lombard
Odier through Geneva. I do not know how Banque de
Paria Swias branches are being trEated but I hope their
account s are blocked and that they will not have free
dispoaal of thia or eny other e~s credited. "
R. J, S.
Sept . 4th, 194o .
COPY
212
(Handed by Mr. Stopford of the :Sritiah ibbaaq to Y.r Cochran
in the Treaaury at 12:30 noon, September 4, 194o.) ·
Vit h reference to my memoranduc of 28th
August regarding the Banque Francaise et Italienne,
I am informed that the information BU'pl)lied to me
was inaccurate and that the correct story is ae follows:
"General 1-!anager of :Sanoue Francaiae et Italienne
pour l'Amerique du Sud Paris 1e recommendi~~g :s. c. I .
Milan to use all ponible means to secure unblocld~~g
of holdings of :S . C. I. France and Banoue J'rancaise
et Italienne Paris end other branches in COI>J)anies called
Olandeee Ozoto and Citrica :Sel ga. Total of one and
a half million dollars is involved. In attempting
to secure unblocking of these securities he ia concerned primarily to prevent their realization for purpose of r epaying American credits and war debt. and
financing relief shi~ent.
This ie our first information that such n proposition haa been attributed
to .American authorities.
Plaaee confirm i f thie 1e
eo and endeavour to frustrate deblocking by :S. C. I."
R. J . S.
Sept. 4th, 1940.
COPY
l ap
213
•:-o~"I:;:"~ 3~ J.:.ter:.- or. ~.t 27th r.q-uatet t!:e ?.:ational :at7 3ci: of :ev Tori: to conr
onr.ira!t ~ about SO ,OOO b'llldera &:ld ~t7
:r-ut of !:ew Tor.;: to coTer onr.i!'a!t o! about 9'),000
¢ldera.
;eth crlanda :r~ Corporation Asaterdaa on
27th re<f-Uated C!:aae 3a:lk of !few TorL to rea1t eqJ.inltt~ o! debit balence of llC,OOO ¢Liera
iD free Mn !ra:.ca ;o t!:eir erK!t viti:: Credit
Msae, ::~:±. :!ley aq that ttia 1a at th.e req::.eat of t !:.e ?:c-eig::. Zxcl:a:lge Cor.trol ~ - 1
~st
-· ... 'S.
Sept. l;tt,
194o.
213
(Handed by l:r. Stopford of the British :&bbaaq to l:r
in the Treasury at 12:30 noon. September 4, 194<>.) ·
•T;fE!l'l'sCHE Bank Amsterdam on Auguat 27th requested the National City :Bank of llcv York to cover
overdraft of about 80,000 guilders and Guaranty
Trust of New York to cover overdraft of about 90 ,000
guilder a.
Netherlands Trading Corporation Amsterdam on
August 27th requested Chase Bank of New York to remit equivalent of debit balance of 110,000 guilders
in free Swiss franca to their credit with Credit
SUisse, Zurich. They say that this is at the request of the Foreign Exchange Control Board. "
R. J. S.
Sept . 4th, 194o.
COPY
Cochran
214
(Handed by Mr. Stop:tord of the :Britiah &tbany to l·:Z.
in the Treasury at 12:30 noon, September 4, l94o.) ·
11
Selden, American E:K;preae, New York, on
August 27th advised :Boyce, American Eltpreae at
Marseilles that subject to obtaining TreaiiUl')'
license he understood that they could bu:r from
:Berlin :trance payable in Paris.
He aaked to what
extent these would be acceptable to cover operat1D8 losses.
I:t such a license were granted on the
pretext of a loss, it would set up on a dangeroua
precedent."
R. J. S.
Sept. 4th,
194o.
COPY
Cochran
215
•:r.
(l!e.Dded by
Stoptord ot the :British :&:mbaesy to Jl.r. Cochran 1:c the
'l'r eaW17' at 12 : 30 noon, September 4, l94o.)
"On AU&Uet 20th the Reich1bank instructed
the Chn1e ~. New York , to honour eix dol lar
oheck1, each for an odd
e~~ount
bllt totalling exact -
17 $200 , 000 to the order of Han• Hei nrich Von
Holleutter.
I e
trying to find out who thh is
bllt tran1111t information to :rou. meanvhile 1:c caae
;rou can trace him."
a.
Sept. 4th, 19110 .
COPT
J.
s.
218
JIJUT I Sll l'XBA.SST,
VJ.S!UCTO:Z:, D. C.
)lr . Merle Cocbr• ,
t1. S. !reat'UJ'7 I»part.nt,
llalh1Jic..ion ,
D. C.
YU.b \he
co~~pl1Mnh
o! Mr. ll. J.
~ioptor4 .
217
c
0
p
y
~rom
certain source but sender'• naae
ooitted, New York advise Goldickont
~ank
that their
balance at close of business on August 24th waa 4, 5QO , OOO,"
(Initialed)
~ri tillh Embneay,
Waahington, D. c.
S~t.
4, l94o.
R, J, S,
c
0 p
218
y
1
Tive i nstructions vere sent o~ ~et 29th
from Berlin to Nev York 1. To Chase Bank to PI'~ $300, 000 t o SVies Ballk
A&ency for the account of Mu Bank Corporation,
Zurich.
2, To Chase Bank to pay $100,000 to the Union
Bank of Switzerland, Zurich, for the account of
same.
'1 , From Goldiscount Bank to Bank of Manhattan
to p~ $4oo,ooo to Guaranty- Trust fo r the account
of Svenska Handelsbenken, Stockholm,
4. Fro111 the same to the same to pq $200 , 000
to Chase :Bank for the account of .t.nsk:ilda Bank,
Stockholm.
5. Chase Bank we.s on .&u&uet 28th instructed by
Berlin to p ay tvo :D:!.llion dollars to State Bank of
U, S, S. R, a
(Initieled) R. J ,
British Emba eay,
Washington , D, C.
September 4th, 194o.
s.
213
TREASURY DEPARTMENT
DAT&
,_
~ RI CTtv=
1<r. Cochran
Sept ..ber 4, l94Q
C0 !~ F16tH TI AF
17 hhphona thh foreoon I ~olce 'With Kr. Po4aata, the repreaentathe
'"' Yorlt of the :Bani!: of Itair.
lllll&eT of
1n
Ra told ae that l<r. MasuchelU wae tonaerlr a
the Cradt to Ital1Al1o and had tn recant 7ear1 bean vrl tine f1114J1Cial aDd
te011aaie article a for the Italian paper, Il Sola.
.:r. Po4..ta promieed to aeDd ae
l1ll 4ocallltatton 'With r&IJ)ect to the prau report attributed to Knnuchellt ...tuch
hi aicbt be able to obtain fro:e the Credito Ita11aDo acuq in lev York.
Iac14eta1lr, Poda1ta told me that P.ui&Chio, llho had ba.u repr ..entatin in
ierla ot the !&Ak of ltal1 hl
ut17
~
tl&e, and vho had lett Parh prior to Ital7 1 1
to the war, ha1 now been able to roturn to Parte.
fi;ITIIIDtetin
baa bon returned to !ruuall.
~.
Ltkawhe a llaD.ic of Ital7
latter h Kr. Santo
~to.
ar.u...-r
...........
................
.....
bt.RI7 ,.,_..._.
tt 111191-t
•
....u lppheia\e .....,~ ...,.,..,... 11r ..n.__
..a .WUF P"•• n,elt
attrlliUei te IWa.. .....a..
~art• . .IIUMlll tt the llttet tat at • ...-s..
. . r~ U.t
•.u .. Aacut 17 '-'. . .
Uroa &de ...... wWll ntaa h tU ~ ....._, Ia •
.... et "'...J'J'••
221
222
WALL STREET JOURNAL
1
T
SEP 41940
==
DATE
A Kind Word For Gcmt=Cables from Rome indicate that
gold as money has received a striking
and unexpected endorsement abroad
in recent weeks. An Italian economist, Mario Mazzuchelli, describes a
meeting held on August 17 attended
by financial representatives of Ger-
Septe:nber 4, 194<>
FIDEN+fKL
ornill&.
! mentioned having
omcuutcated with various
JanWll'y 12, 194o, a.nd
--=,....,==,.,..··
-n:-pp~1
IV
nua
:Vt
Funk's remark that gold would play
no role as a basis for future European
currencies that set in motion here re·
cently a new train of disquieting spec·
ulations on the future of gold.
It is possible that in this country
we may have been inclined to reac
more into Dr. Funk's remarks than
was intended, for he did concede that
gold might be useful after the war fo1
settling international balances. Na·
turally, countries that have no gold,
or that have .very little gold, must find
other means of settlement. In an~
event, it is the contention of Mario
Mazzuchelli that Dr. Funk was mis·
represented, that he did not proscribe
gold but merely relegated it to a secondary plane.
Fears for the future of gold exist
, largely in the overactive imaginations
of individuals too ready to assume
that the world is facing a complete
break with the past in all matters, especially economics. For these Mr.
Mazzuchelli has a palliative, and it is
ironic that it should come from fascist
soil. His assertion that in an economy
there can be evolution, but not revolution, or enduring revolution, is fitting
to the occasion. It will enable some of
us. to sleep better.
it and proceeds of their
'ldth the Federal Reserve
r merly.
ceived a cablegram from the
ceive money for the
er than to transfer it to
the German conclusion
unds being attached in
da being frozen in the
222
TREASURY DEPARTMENT
INTE~
Secret ary Morgentbau
TO
Kr. Cochran
n"'"''"""' ,.,..., ••0c ICATION
U~CLft.::]EO
J.f.~. ~
DATE
Septe=ber
4,
194o
dlte
STrtiCTLY e-ONFIDENf+Al
I talked bJ telephone rlth Mr. Knoke at 11: 00 this morni~:~&.
r mentioned havi~:~&
learned throU&h outaide aources that the Reiche bank had co:lCUilicated w1 th various
Jrv York Cit)' \lanka countermanding their COlllliiWlicat1on of Janual7 12, 194o , and
f i111tructin& tha not to pay money received for their cr edit
collectiona a:rq l onger tor credit in the
:a.
and proceeds of their
I. S. account v1 th the Federal Reeerve
l!W:, iev York, but !or credit to their ow account as fonerly.
Kr. Inoke contimed that the J'ederal had lii:ewiae received a cablegru ! ron the
!eichtbuk under which the laderal 1s requaated nov to r eceln money for the
ichtbanlt and to hold it in the l!eichebanlt account, rather than to tranafer it t o
s.
l!lt:S. I,
account.
Thit, Knoil:e thought, r esulted ! ron the German conclusion
lhal there n a 1e11 rialt of embarraa•cnt thro\l&h their funda being attached in
\heir
01t11
a. I, s.
account with the federal, than through auch fund. a bei ng fro can in the
account vith the Federal.
/~r
HSM
PLAI'l
London
DatEd SEptEmber 4 1 1940
REc 1 d 2 : 01 p . m.
SEcrEtary of StatE ,
Was;lj ngtol" .
3007 1 SEptEmbEr 4 .
FOR r::'REASURY.
1.
A Br itish
TrEas-~y
ordEr anr.ouncEd today adds
3EcuritiEs ExprEssEd in thE currEnciEs of Portugal,
Panar1a , ::r.wfound1and and thE Philip:tJ).nE:J to t"lE li :;t of
"controllEd sEcuritiEs" subjEct to rEgistration and
acq'.lisition by thE TrEasur y originally H:JtEd in S , R . &
1939 Ho . 966 .
A London GazEttE noticE adds thE
o.
sa>:~E
currmciEs to ~hosE which must bE surrEndErEd but d.:lEtEs
tho:JE of FrancE , BElgi 1.llll, Holl and a:1d No~·way froll' tilE
list as originally issuEd on SEptEmbEr 3, 1939.
(3EE
dEspatch No , 3364 datEd S EptEmbEr 1 5 , 1939, EnclosurE lio . 4)
2,
ThE full ExchEqU Er accounts for thE fiVE WEE!<S
Ending August 31 sho\7 that thE dEficit of !:.245. 8 !:!illion
for thE pEr iod (rEprEsEnting a wEEkly avEragE of 1>49 . 2
avEraGE
:-:illion as comparEd r1ith a \7EEkly/of 1>45 . 4 :Jillion in
thE four WEEks mdEd July 27) 1vas financEd as foll0\75 :
7
:b86 , 2 million from savings (or a 'iiEEkly avErag E of :;1 . 3
million
~~CP.AN/#iDUU/ .
TO:
Secretary !Jorgenthau
.FROW: ldr• Gaston
)
1
Last week I was ove
of the Bureau of the Budg
.
e
Gu~serve bill , tl~
has gone to the Exec~J.ve
.from the Bud~et .
I
I
(
with Admiral '.vaesche bef
to 1
ore a conunittee
P ead th\1 merits of a ~ast
esche has been infomed that the bill
ffices wi~a favorable re
::-::ctf
Ca!lmen a J.on
We now have a so-c
d Coast G d Reserve, organized under
the te:nn:J of the bill pas d by Cong s last year . This is not
actually a reserve in the ense in w · ch the tenu 1s used by the
Anzy- and N~v;r but is in r . · ty an a · ·
, wlich exists for pur- "-.. J
poses of gJ.VJ.ng safety tr
· " to y tsmen and occasional assist- '
~
ance b~ ~ese yachtsmen,
o a:e me"'. rs of the so-c:lll.l'"l. reserve, ~ "
in polJ.CJ..ng regattas and
e like .
· .,.. . · . ch.lnges the llal:!e ~ ...,
of the exist in~reserve to Coast Guard Awciliary and cre.:1tes within ~
i t an actual reserve of physically fit and qualified men who cay
be called into the active service of the Govenuuent as reserve
officers by the Secretary of the Treasury in ti.'lle of peace and b
the Secreta11' of the Navy in time of war.
The new bill ha
active support of Admiral Stark and in fact i t was
consultation with high officers of the Navy De_partment .e:.'El1jierienc8ftth
j;.he }resent Coast Guara
s-erve, 1'1ffi.Cllis extremely popular, has
1.ed to the conclu ion at we can enroll in th~ct)kli.l reserve a
great JD81'lY physic
fit and well educated y
men mo operate
sail and motor boats and who may be trained in ace tim so as to
furnish a supply of well qualified officers to un rtake harbor
and coastal patrol in time of war and thus free regular Coast Guard
·
·
&&l'tioe~ -'l'he poict s I xo.uld...empbJwza....a;--(1) ~ enroll many well qualified young men 'IIIlo would not normally be enrolled either by the Army or the NaVY; (2) . , . _ actually
train them in peace time to take up very essential war time duties ·
'i!
It is 11\Y belief that we ought not to neglect this opportunity
to increase our effective naval strength for war time purposes and
also to have available a body of men Tllo can be called into active
duty in any great peace time emergency.
J
r,
- 2 It. should be elllphuued that. this ia enti.rel,y suppl~tary
to t.he Navy ' s pro ram and has tho hearty en~orecent or the high
ta:cMd or the J.avy.
1
Bot.h Adnirals Stark and 1'1aesclle believe that 1 t wCT.lld be
ext.recel,y helpful 1! you got an oppcrtunity to mention the matter
to the Pt-osident .
227
i)
11
Septeaber 4, 1940.
TOI
:ntala
La:it week I YU oTer rlth Aaairal Waesehe before a ca..ittee
or the Bureau of the &dget to plead the 11erita of an- Coast
0\lard ~earn bill. low lraeache has bMn infoi'Md that the bill
hall cone to the J:uc:utbe Officee with a faTorable rec~dation
trca the lkldget.
II
J
1h now hne a eo-callad Caut Oaalrd ReaerTe, ar~;anised mder
the teru of the bill pe.ssed b7 Cqrees l&et J'M.l"• Tbie 1e not
ectual.l;r a I'Qlll'ft 1n the s«UUe 1n which the tera 1e ued b7 the
~.niT ad IU7 bat 1e 1n rMlity an amdli.ary, eich e:xUte tor purpoaea of girlnc aatety trainin3 to )'achtacl and occ:a:siaDal assistance b7 these ,.ach~. who are -.ben of the ~ed reeerTe,
!be n• bill c.'wno;ea the nae
1n policin& recattas and ~e like.
ot the ~ reaene to Coast O'lard Alrdl1ar7 md createe 111th1n
i t an ac:tll&1 reeern ot p!Q'ai~ tit and qual1t1ed un wbo uq
be called into the ac:tift aerTice of the OoY~t as rea.ne
otticen b7 the Secret&r7 ol the 1'reasur.T 1n tiM or peace .ad b7
'!be n• blll baa the
the kcret&r7 of the RU7 1n ti:le of nr.
act.tre eupport of Adadrel Stark md 1n tact it wu dl'PD 1n consultation 111th ~h otfi.cera ot the 1&"'7 Depart.Mnt. lzperimoe 111th
the preset Coast OIUI"d ReeerTe, which 1e ~ po})lllar. haa
led to the conclusion that w c111 enroll 1n the ac:tllal re..rTe a
cre&t IIICl7 p~icallJ' fit llld Wll educatad 7CIUO& MD CO operate
aaU and 110tor boat& and who U7 be trained 1n peace tille so u to
lllmieh a eu~ of wll qual1!1ed omoere to 'llllder't.aD harbor
and couta1 patrol 1n tiM of nr 111d thue tree recular Coast Guard
otticen tor war tU. MrT1ce. !he points I wo'Dld elllphalliee aret
(1) We em enrollUD1' well qualified ~ aen 'llbo would not nor-..U, be IIU"Olled either 'b7 the~ or the laTJJ (2) w can actual~
train tbaa 1n peace tiM to take up nr7 e-t1al war U. dutiea.
J
It 1e rq belief that n oacbt not to neclect thie opportllllit7
to 1ncreaae our etfeotiTe naTal etrecth tor war tine purpoeu and
&leo to han anilable a boq ot un 'llbo can be called into aotin
dllt7 1n CIT &rMt paace t,__ •G'&&DCJ•
I
•
228
l
I '
I
Jo~ ~lltaiftla 5t.arlt an4 t:...e. ball..-. u.n 1\ woaltl lie
eu-~ helpruJ. 1! :JVU tot liD OJiiPCr'tqliQ \o UIIU• ~ ut\u
• Uil
•t..
223
l'ranklin D• Rooaevel t Librlll'J
DFCl BSIFIED
DOD DIR. 52oo.9 (9/27/61lMp~ 4, 191,0.
1 . The inton»Uoo cron\&1no4 1Ja noem ~quot ancl
oabl.,r... u on.c C«3N4ict.oZOT u.1 ~ u to ~-·
IA \bo cii'W!Ut.allc. . , t.bi11 u una'IOid&bl.o. ..biJ.o definit-e c:ODGluaioao CMDOt bo ~. certain trcda are opparent. 1
a . n.~ about A~ 24 \hen "WoN el'lanps
iA Gei'IUD air t.acr'".J.oo. Seton that. 4at.e Oer.aan a1.r at.tac:iul •ro
~at. eml.v.aiftl;r aau dqu,tlt. operat.1oclo. Abollt. \bat. t.1M ext.cliw nicbt. at.t.acko •ro nrn nar-...s. tboeo operaU.O. cooor
litt.o4 of -t.raUn, tl'Ca 40 \e 100 pl.IMo oe Milia ot t.~ nratAflic t.araet.o, 111\.b haru~ raicle of rr. 3 to :xl p1anto
• fl'CICI tov to t.c other tar,.to. .t.ct.ual at.taako "WoN ct.UnNoi
• aincJ.e plazloo or ....U pao;~a that apparent.l;r proooodoecl to t.be
tarp\ aroa 'b7 ct1ftl',.t. rout.ot. Such t.actioo n.ul.t.ocl 1Ja a l.arp
J)AJ'\ ot inelllld ao tar s»rth u l!allche8t.Ol' boJ.na INbjoot.ocl to air
1D41aat10D.I \bat.
Nieto ODOO or t.wloe - r m,bt.. 'lben are about. A\&PA 24 tJio au of \ho uao clqllitlt. raid fonutiono 11as
. . . IICI&l.JAr, bllt thio 1a DOt. oert.a1D. n 1o apparent t.bat. t.bo
DOJ'thom l.ild.t ot tho _ . of cla7li#lt at.Uclc• 1'lm.l pa~ .tro..a
tbo ucWt7 of Pl;raNth aloni a l.lDI .... ao .Uoo 110rtb•n of
Londaao .lbo\l\ t.he :d.d4lo ot AU,UA t.bo M«10 .214 DOt inalucio Loudon.
b . At pnaent t.horo it a leOMIIina in tho opread
bet.- Qoran and Brit.illh airGJ't.tt loouo. It. 1o boJJ.ovod \hat
\ho t1abt•r• loft. 011 the t110 licloo ..... about aqwal, to tlbiell lilA
bo adllltd a oonlidlorable nlMibv ot Qenlllll ~r1 .
c . \'bore are 1Ddioat.ionl tba\ ooct.inuad o - at\aolro Cll\ airdroMO han 4r1.,. the l1na ot fid!MI' ott.ac:U back
tr. t.he uol.nit.r ot tho c~IIDMl. \o a liDO 30 or 40 .U.Oo lDland.
d
Ut.Ml' t.ba on Qanaan taotioo or tile
I
;j 1
...or
~o to sportant Drlt.ilb 't.arp\o an4 inAreuacl oi'fil11111 ....W.tioo.
tiabt.ar cS.tan• • or
bo\111 bU n.ul.t.oclin inoreued
• • It 11 ~ \o ...... \11&\ ~· t.o lco7
fMt.oriel an4 the looo ot reo\ to •rkMD hal 1owro4 IU!itiou
proG&otion. HonYor, thio 11 not t.rue ot alrUaft., i t t.bo ot.e~
OONRIDBNTIA .-
230
t • On
t.ha ae:qe about. 100 !riUib bo.»wa b&ft
t.be ConUMDt each llllbt. tee. . Mft b-.
t "fil!eo.. b 1ncoaolu1.,., lM. 1\ 1e pro~ t.llat a - - .
ot lcq eat.ablllllment. baft bee d&a;.4 b7 tbeea n.l~ Mil &ba\
producUon 1n cert.ain a.-.aa baa baeD lowNCt *- \o tau,.
ocouicme4 ~ loae ot Nn.
U~ t&l'pt.a
-u.
I • LoaJee of -.Jot' ~ lft\in:a t.o be a,preel&b\e
cr1t1o:U.. :.t. lout ant deatNJV b&a Mtll -.mlc &114
tnr .....,.. du.ri&la \be pan lD M;v• •~ -....l\lo1 \o -u.r
~~am walMila. ~h:bul:.rirw &t.t&.oka unaJ.lT t...W.t b Ill••• or
~~ a1r atacka t"'"b&llt.J.T rc.W.t 1n d&:llce ot ctUteren\
cWer'MI •ltl:.O"Gt ~ •
but not
~
I
OD
r-t
•
o.n-1
~.t.mn
IHNMrr ot
St.at.e ~ ·
8U'Ct.u7 at
U
fNUIIIPf
franklin D. Roo.evelt LibrarJ
~::!i ~=r ot tu DECLASSIFIED
~~
DOD Dltt. s2oo. 9 (9/27/fla~
Date- I - "} Si&n&tiU't•
?D
~..-4, -~i
..
-€0NFIDENTfAb
.~
I
231
GONFlDE~nlAb
,
l.
OVIan a1r attaclal on a n4wlecl 8CI&le han beeD
d1reote4 agalnat 2bala kt\W7 &4 Eut. hot..
It. 1a . .u.w
q
that about 150 aircratt operatecl onr lll&lan4 dlll'ina the n1cbt
I
ot
s.ptnber 2 -
~ 3·
3 alii about. 6oO dw1Da the dqll&:ht. boura ot
a.rc.n a1rcratt cuual.t.iea • - ~
co~ l.oat.,
ll ~l.T loat. and lO dal:acecl. Br1t1ab lo...a _.. lJ airpl.anN
2.
lD hie apeech
,..terdq
lllr'•
.An\boro' Ide, Secntllr7
ot state tor II", ...S. the toll.owiqr point.l nth reapeot to the
.&nl;rl
a.
"',....
l•
..
ID
ct
\
~ ..
b.
J
\
")
\)
lbudanM
b7
~.
I
\
that BlUer hu
h1a decllareclint.lntioDI ot nbdui!ll Br1ta1n
t:l
I
'fbare 11 DO nid_,.,.
1M Ara1 requ1rU botll
t.n.1.n1na l!ld
equi~
and 1l1.l.l not be oont.entecl nth ll'O' at.aDdar4
aoept the
JliPit tor eitblr. the blat. taot.a
J::aWt be tacec11 the AnttT am !fir UU.t.iGaal
n!Dberl ot ..,..q '!I'NpCID n tll 11h1ch it. 11 uwad.
Until these ,...pon. an &Tailable the final
"fictol7 111U not be
liOn,
It i .e tm jrtq that
mat atr1ka the t1nal. blow,
.Above aU it r.-
qui.res Dlcbanisod equi~ mld the oloH
tactical S1lppOrt ot av1t.t1on 11hich 1a ind1.8pena1ble to •uce••• 1n liiOdern nrtan,
~
w.
I
Diflrlbutiona
Oeneral S:.tson
SeoretarT ot 1far
state~t
Secr.tary ot 'lreuur7 ...,-----:
.A. .t . 8earetary ot 1:lr
Chief o.£ Star!
War Pl.&DB Di"fieiGil
O!tioeo!Janl.Intelll&.uce
rranklin D. Roo•evelt Libr&rJ
DtClAt:~~FIED
DOD 0111. o2oo.9 (9/2716•>·
Date- I - ~- ?0
Silll&hre~ ~~ . ~
.....~ •• ~toa
I
tJ
233
••
GROUP 1IEETING
Present :
1:r.
Foley
Mr . Gaston
Mr . Bell
I.:r . Young
1:r. Graves
Ur . Cochran
L:r . Thomnson
1:r. Chamber lain
Mr . Haas
September 4, 1940
9:30 a .m.
1.:r • \'/hit e
lJr . Schwarz
llrs Klotz
H.1f, Jr :
•
)
Harry, we are trying to collect all this stuff
on that memorandum which Has commented on yester:ay by those famous comedians, Pearson and
Allen, and on that tax thinr , that amortization,
and if you remember, the President put Lauch
Currie on that . Sullivan is collectinz the
whole thins for me . I nave just never kno,·m
Lauch's side of it . If you r.oul~ care to v~ite
a memorandum telling me just hon he got in on
it and what he did, because we are trying to
pick it up , I don 1 t know whether I will ever
use it, but I want the information,
I will try to get all the information I can.
You say it is referred to in Pearson and Allen?
I
L :V
H.M. Jr :
Yesterday' s column .
White:
You remember the subject matters?
H.lJ. Jr:
Yes .
Foley:
I remember it, Harry.
H.1l. Jr :
Sullivan is getting it ~11 tog~ther form~ because he said he had qulte a dlfference wlth --
Foley:
',;e prepared the stuff and show~d it to Harry
and Lauch Currie thou~ht that l t v10uld be a
- 2 -
good idea to wri te letters to the Army and
~he Navy and gi ve them all the back"'round
~n so far as our treatment of amortization
1s concerned, and I think Har ry cleared the
letters and then you gave the~ to Jake Vi ner
and Jake had some questions about them and
we never ~id anythi ng about i t . It just
stopped r1ght there .
!I . ~ .
Jr :
That i s r i ght .
~·ihi te :
\','ell , \7e wi ll nri te the whol e thing up .
H.l.:. Jr :
Sullivan is nritin~ it up, but if rre could
get Lauch Currie to feed his in to Sullivan
and you (Foley) the same , but I have given
Sullivan everythin~ I have got so far on my
diary. It is just a case of some body else because the t hing - how Pearson and Al l en
sot the date of the memorand~, I don ' t know,
but they have the date, November, the date
r;e gave the memorandum to t he Presi dent .
So~ebody must have given i t t o them .
Thompson :
I woul d l ike to stay a half mi nute .
H. M. Jr :
I think I can. I won ' t be rushed. I will
give you a minute , but I won ' t be rushed.
14y resolution s till hol ds over from yesterday.
Dan, are you going to be ready today?
Bell :
I will be ready in part .
H .~. Jr:
~.
Bell :
Really? I got a memorandum ~nst ni eht t hat .
isn • t very compl ete , but I vall have so:neth1ng
on it .
H.ll. Jr :
}.J> . Knudsen says he has got a memorandUI:l he
Knudsen al ready knew that you had been in
to llr . Bi6gers .
233
- 3 v~ote ~ month ago on three different ways of
~1nanc1ng . T~e a look at that and see if it
~s correct, w1ll you (banding clippin~s to
Mr . Foley}?
a
j
Bell :
I will have some figures :probabl y tooorrow
If you are not going to f1nance this month;
you had probabl y better announce i t .
H.ll. Jr :
I wouldn ' t want t o do that without talkino- to
the President and I have got a tentative Yunoheon
date with him.
Bell:
That is tomorrovfi
H. t:. Jr :
Tomorrow. I wouldn ' t r;ant to say anything to
the :press . I nant to go over it \7i th the
Pres1dent .
Bell:
\':e
H.M. Jr :
Okay. ffuat else?
Bell :
That is all.
H.M. Jr :
Harold? \,'ha. t do you do, Har ol d, v;ho decides
what kind of a picture there shoul d be over
a bar and that sort of thing nowadays, on
alcohol tax?
Graves :
I think that is
Fole~r :
There are good pictures out .• est in all the
bars that I was in .
H.?.'. Jr :
Nobody has ever tol d me . \;bo runs that shorr?
Graves :
It is consolidated with the Alcohol Tax Unit
and ver~r largely decentralized . to the fiel d.
It is handled by the regular f1eld set-up of
the Alcohol Tax Unit .
Tiill have so:uething for you before you go
over there on what we could do .
1~ . ~ullivan ' s
department .
I
t
- 4 -
H.lf. Jr :
Did you ever take a look at it?
Graves :
No , I haven 1 t .
H.LJr :
Just take a day and take a look at it and see
what it looks like .
Harry, you l ook di sturbed and uorried.
Vlhi te :
That is just a specious - -
H.lf. Jr :
Incidentally, I ~on 't l ike to force anything
on anybody, but 1f anybody r;ants this Nevr
Republic article on Willkie, it is there on
my desk , It is very interesting.
Gaston:
Thanks.
one .
\';bite :
I learned yesterday that the inter-Lmerican
bank proposal is bein6 hel d up by the President v:i th all the necessary docUJ:lents, supportinG data, et cetera, ar;aiting the passage of
the Export-Import Bank additional sums . I
presume it is in the expectation that if the
Bank is brought before Congress first, it mi~ht
jeopardize the allocation of the sums to the
Export- Import Bank, so the thought now is, as
I understand it, to submit that as soon as the
other is disposed of .
I read it, anu I would like to have
0/i th respect to the di scussi on on Chilean
matt ers I think i t would be appropriate if
the head of that coordinat ing committee were
called in because he seems to be reaching
into every aspect of it . Is that all right
with you?
1
H.l!. Jr :
Are you afraid to use the name "Rockefeller"?
I am for a fevr months .
Foley :
Now is the time to use it , F.arry.
- 5 ',';'hi te:
H.l'. Jr :
I, see . You ought to know, I woulC. like
ao9ut ten minute~ . There are a couple of
th~ngs I ~;ould hke to take up \7i th you
th1s oormng .
Tel~ H~Kay. Inc~ dentally, I was amazed,
I d1dn ~ kn9w - 1t was bef?re my time - that
J!.a.ckenz1e K1ng r;as the adVlser to John D.
Rockefeller, Jr . on that Colorado Fuel and
Iron strike and went through the whole thing
with him and coached him on his testimony
and everythine else . I never knev; that .
He saw him through that •·,hole business . He
told a very amusing story , There was some
labor leader that had been attacking him and
the suggestion was made that they meet and
this nan said no, he would be glad to meet
Rockefeller when i t was over, not until it
was over . This labor leader knew ~ckenzie
King and he sat dovm and had a dri nk ,n. th
hir.t and r.hen they got through he said, "You
knovr, Rockefeller, if you r.ould get drunk.
there is no telling hon far you woul d go 1n
this country. That is about all that you
need. You are a real guy. " He said there
nould be no stopping him.
\'/hite :
I think his son is going farther, probably .
Fol ey :
A couple of hi s boys are all ri£ht .
nill make the grade ,
H.L:. Jr :
IJackenzie King \7as the perso~..whtho ir,trod~ced
this \'/Oman who was kno\'m as ~o.o er som thing, this labor
Gaston :
_:other Jones?
H.U. Jr :
~other Jones , yes .
They
H~ has a ~ho~e ~roup of
very interesting stol'leS about his experiences
nith Rockefell er .
Are you all right?
I~cidentally, there is a special dispatch
out ?f the London and .:e\7 York Tines today
deny~nG t~t the Iran Oil Com~any had sold
any basol~ne to Japan . That 1s prett uick
work on this fellow ' s part . He had tkt
\Jhi te :
~·las
H.LJr :
I am sure on the telephone he got it over .
'.,hite :
That corunittee had called in for - in an
advisory capacit;y-, several bankers and exchru;_:e men f:~ ;le\7 ~ork to r;i ve then their
adv1ce on La~1n Amer~can affairs .
HX. Jr :
All right .
\'Jhi te :
And Ravinsky was amons them.
H.1f..Tr :
Well, after while - I nean, all the experts
\'lill be in olashin:;ton .
\','hi te :
You nean all the experts Tiill be in Hew York.
!!." . Jr :
Iro, I nean they call down so many people.
White :
Oh, I see .
H . ~ . Jr :
George , I rmnt you in at that 10 :30 meetin~
today, and you are in on that, Phil •
Young :
.ih.at is that about?
l! .'.I. Jr:
Allison en.,.ines; this 1aea I want them to keep
on the C- type engine . ~udsen called fo: ne
at 8:00 this mornin~ . he agrees . That ls
r.r.a t I had those men cOlJe ~p to Ottar:a ~or,
you see . They have sot th1s C- type eng1ne
rollin- no\7 and I r:ant the Znslish to ~tay
on that until they prove the other ~n~~ne
and not \':ai t another six oonths unhl they
prove the next engine , and Knudsen says I am
1
it a result of that?
239
- 7 -
right and he thinks they ought to place an
order for another ~housand, which will see
t hen throu~h the w1nter nicel y. There is
only ten !D.ll es an hour difference between
the C and the F, but it is an entirely di f ferent construction.
Haas :
In connecti on with that , Mr . Secretarr, the
report~ ~hat we &et . from the Commission,
the Br1t1sh Comm1ss1on, on t heir business
are more d~tailed than the one you see on
the who~e 1~dustry. For exampl e, we show
the del1ver1es to date on all types of engines
and all types of pl anes - go down the l i ne and
take any parti?ular company and any type of
pl ane, all opt1ons are - -
H . ~ . Jr :
George , br i ng in everything on Allison and then
they will have to increase their orders to
Curtiss-l,right for the same amount. Have all
t hat in your lap .
Haas :
They have been calling up fuead' s section, l ooking
for fi gures . They got some fi ~es which are
Vlrong and they attri buted them to the Treasury .
I think I straightened them out . I couldn' t
say where they got the figures, but they said
they cane f r om the Treasury.
II.M. Jr :
\.hat figures?
Haas :
Saying the British order amounted t o 6100
engines .
H,lf, Jr :
The figures which they gave me last ni g~t and
I took home and read, I gave Knudsen this
morning He is bringing them back . They are
t he only set I had. 4200 engines they have
on order . Is that right?
Haas :
Fort •- two or three, that . is r~ ght . There is
anot~er thing in connectlon mth these reports.
240
- 8 -
The ,.~ight Compa~y wrote in and said that
the A1r Corps wh1ch previously had required
rep?rts four times a month had now changed
the1r reports to the first and the fifteenth
and they wondered if this timing would suit
your purpose as v;ell , '.'1bat they are thinking
about is cutting out the weekly and putting
it out hvo times a month.
H.ll. Jr :
All those Air Corps people will be here today.
You eight ask them, No, I want it weekly.
Haas :
I would think so .
H.M. Jr :
But have Allison and Curtiss-\.ri£ht here, will
you plea se?
Haas:
I nill have it.
desk •
H.r . Jr :
.And you might have also the Republic and Vultee .
That is all .
Your report is out on
~c ' s
I read your (Youn~ ' s ) report last night . I
think Sumner \'1 elles was most un~ enerous in
what he did to you and I thought you handled
yourself very well .
Young :
Did you read the letter from the 1linister?
H.M. Jr:
I have done everything.
Professor Chamberl ain?
Chamber ' n :
I.e were going to see you at 3:00 o' clock this
afternoon, llr . Secretary.
H.l.:. Jr:
That is right .
Ch8l:lber ' n:
And take up our matters .
H. 1l. Jr:
I think the information that co~e~ ou~ from
your sec t 1·on through Schwarz ' offlce
It · 1S· all
t
right. I see it all the time .
15 JUS
241
- 9 -
a credit to the Treasury l"lhich I think is
the way it should be .
'
Chick?
~
Schwarz :
I have nothing.
H.ll.Jr :
1
I don t like to be personal, but why do you
wear a vest? I look around the room here
and --
Schwarz :
Just ha[pened to . It was cool out in the
country this morning .
H.l!. Jr :
I just looked around. and I wondered if you
were getting a little high- hat with us . Have
you got a gold chain across it?
Schwarz:
Ho .
~.bite :
He is the Public Rel ations man. He has got
to be careful .
Schwarz :
I just happened to be cool this morning.
H.1I. Jr:
I think this fellow, Bob Horton, will be
Schvmrz :
There are a lot of complaints around tol"m
from all sides .
H.ll. Jr:
Phil?
Fol ey:
He isn ' t on our side .
11.1f. Jr :
Bob Horton?
Foley:
Yes .
H.1'.Jr :
~
lookin~;
for a new job soon·.
'·•ben you say "our sl·ae "' do you )meanI this
that
(pointing to Roosevelt's button? s
what you mean?
242
- 10 Fol ey :
Right .
H . ~ . Jr:
heally?
Gaston :
Lor1ell picked him.
H.1f.Jr :
You mean this side?
Foley:
Yes .
Haas:
lie used your airplane figures to give to the
President .
H.ll. Jr :
It 17as terribly funny yesterday rrhen Lothian
was here . I said, ".•ouldn 1 t you like to t alee
a look at this i." illkie button? It is very
amusing . " He said, "Oh, no ! You know r;hat
happened to the Ambassador who came out for
Roosevelt . " I said, "Oh, I didn ' t Mnt you
to wear it, I just wanted you to l ook at it."
Be r:as afraid '1\e r;ere going to burn hiD: up .
You mean to say that Bob Hor ton is a Republican?
Foley :
That is what I have heard .
H.U. Jr:
.rell, as Herbert Gaston said, Lo1·;ell 1!ellett
plucked him.
Gaston :
He is an old friend of Josephine Roche ' s, from
Denver and 'Rocky llountain" Lew' s, generally
suppos~d to be a strong liberal 11hen he v1as
with the Scripps-Hovrard people .
H. !J. Jr :
){aybe he chang;ed over when 7/illkie did.
/}aston :
~.hen
H . J~ . Jr :
Day before yesterday, according to the i<ew
Republic . ~. that is :~itten ?l everly, that
stuff . It is very amus1ng read1ng .
was that?
243
- 11 -
Phil, what have you got?
Youn;;:
Do JOU want to brine- out the question of the
six Consolidated bo~bers this mornin~?
H.t[. Jr :
Yes . Phil, on the si x Consolidated bombers
would that be the ones the President promis~d
them or do they want f ive besides?
Young :
I uidn' t know he had promised him f ive .
H.M.Jr :
This is very much in the room here . Lothian
is very much di sturbed because as part of this
deal he ~.as promised 22 motored torpedo boats,
5 lon~ d1stance bombers, 5 f l yi ng boats, and
250, 000 rifles, and he had his troubles with
Churchill in getting tlis whol e thing through
and he says, How nobody tells me hol'. to do
this, " so he said to me, "How should I do it?"
So I said, '~·/ell - - " He kept a skin~ me whether
I 11ouldn' t do it and I sai d, "Uo, 1 1 m not goinr;
to ask the President, 'Mr . President, have you
forgotten a promise or so:::~ething'; '" I said,
"The thing for you to do is when you see him
ask hi m r:ha t about it and the chances are he
will refer it to me, " but I said, "Take it
up with him. " I think you ha~ better call .
Purvis before 10 :00 and ask h1m - I can do 1t.
It will only take me a second , Ask him whether
the six and t he five are - but t hi s is ver y
much in the room, but I am not <>oing ~o the"
President and say, "Vihat about these 1tems?
I mean I haven ' t been her e for two we eks .
I thought we had the 250, 000 r i f l es .
Young :
l1ell, we talked about it on t he tel ephone,
don ' t you Jrno\7 whil e you were away and
Mr . Stimson had told me that ttose would be
released al ong with the powQer . That was my
understanding t here .
H.~. Jr :
·.ell, I thi nk \7e wil~ l ~t Lothian go ~o b~ t .
He seemed a l i ttle d1ff1dent about do1ng 1t.
244
- 12 .
th
He says he is goin~ to
e PreSldent tomorrow and let h" <> k see
will ask thaL ;bm ats lthe President . I
e se?
~• " a
Young:
That is all .
H . ~ . Jr :
\,e can ask --
Young :
Are you calling Purvis?
H . ~J. Jr :
Yes, I will do that right now.
1~erle?
Cochran :
You sarr we had the nen Canadian accounts
stra~ghtened up while you v.ere awaJ, transferrln~ the Government accounts to the
Federu?
H.:!.:. Jr :
I refuse to answer . If I answer, you rtill
know whether I read those reports or not .
Cochran:
I forget -.·;hether I put them in or not .
B.::. Jr :
l".bat else?
Cochran :
That is all .
You have to be born a diplomat to do that .
You can ' t acquire it .
H.M. Jr :
On the Canadian accounts , another good story.
1:orris Wilson, vtho is Chairman of the Royal
Bank of Canada, wanted to get a fert dollars
so when he crune do1m he coul d have some money,
so he goes to Governor To..-.ers Yiho used to
work for him and says, "Now, of course , if it
is embarrassing, I don ' t want to embarrass
you but can I have some dollars when I go
do;·.~ to the United States?" Tortcrs said, "Yes ,
i t 11ill be embarrassing. You have got to
as< London . " And he had to get London to
245
- 13 issue the dollars for him to caoe down here
nhen he cO!les dorm , They are vel'y strict up
there .
Anythir else?
Cochran :
Ho .
.;hlte :
\1
turned down Gol~cn~oeiser ' s request to
~
s .e tlonej to a sister or a cousin, dicin ' t
wg. ~ think n ~rP just as careful about abiding
by our principles .
11,
CE>
('!'clephone conversa,ion mth
l.:r.
Purvis folloo.s:)
24o
September 4, 1540
9: 55 a . m.
H.H . Jr:
Hello.
Ooerator:
1-'.r. Purvis.
H. lLJr:
Hello.
Ar thur
Purvis:
Hello .
H. M.Jr:
Hello, Arthur.
P:
Yee, sir.
H.lLJr:
At 1 0 :}0 ~hen I have theee Army oeople in
this request for six coneolicated bombers '
is t ha t part of the five and five .
P:
No . This. is somet~r.g quite i ndependent.
The five and five we don ' t want to disturb
.a t all. Tnis is sim"Oly a oriori ty against our part
to ~eeo communi cations going and has no
relation whatsoever to any requests for either
the flag boats or the flying fortresses.
H.k.Jr:
This is something extra.
P:
It's really a oriority of-- si mply f or the
help of -- that it will give to communications
between North America and • . ...
H.H .Jr :
I know what it 1 s for because Caotain Balfour
told me but I didn ' t know whether it wae the
eam e or not.
P:
-lo , no t a bit .
H.l •. Jr:
4ell , I ' ll start it at 10 : 30 this morning.
P:
Gooo . i:ow in the meantime the Ambassador is
doi :.g as you said, he is s1moly going to have
a talk with the gertleman acrose ~he way and
he will then tel~ him what he understood of
the situation/~G~geet if possible could it be
worked out through you .
H. H.Jr:
That's all right .
Good mor nir.g.
247
- 2 -
P:
So -- with the necessar y h elp.
H•• . • J r:
All ri ght .
P:
io h;~; :hat wi l l start on that basis. t~ow
a rey here, at least I told Faire to
come with ?hil unless he knew the nictur~
fully, that we ' d leave it with him.but tr. 8 t
h~ ~~at be --: it..must be somebody who ha~ it
nger-ena. 11hen would you . . ...
a
H. !L Jr:
(Laughs).
They should be in Philip Younb's office from
10:30 on .
P:
All ri ght.
H. K .Jr :
I'll arrange tha t then.
Now I had a pr eliminary talk with Knudsen
he agrees with me that you peoole should
continue with the C engines.
a~d
P:
H.~
.)
.ell Fairey, I think - - I talked with Fairey
about t ha t and I think at the oitch t het can
be got out of Fairey this mor ning if you wanted
it.
.Jr:
.. ell , he should be r eady because this i e< what
I said to Knud sen, euoposing they should want
So he sa id, oh, they ought to
another 500 .
take at least 1000 . And then I ga ve him the
memorandum that you gav e me eo he could read
it about the 400 odd engines at the end, you
see .
P:
Ye s , exactly .
H .. . Jr :
And 150 extra Hawks, so I' m going to take tha t
all uo this morning so somebody should be there
ao that if they say yes, you can have them,
that your oeople could say, yes, we'll buy them.
P:
Yee. \iell, now I t hink Fairey is in that
oos1 t ion because I told him he had to be in
a oo s1tion t o handle whatever came out of the
meeting along the linee of any further
discussion .
H. H. J r :
'1/ell, would you wan t to sit in yourself?
P:
I would lik e to in one way
1
Well , I tel you. something here t _h at I really
bu t I've al s o got
- 3 am anxi ous to ge t orr if I ca n.
a li ttle late.
H. L .Jr:
If I were
•ell , it's no t ne cessar y and I don't ~no~· ho ~
n
long it Will run .
R
.)
R
P:
·•ell' if I can get down I w111.
you . . . . .
H. B.Jr:
It' s not necessary if you 'll just have Fairey
so t hat he can say ye s or no .
P:
I' ll teleohone through to Fa i rey i mmediately
no w.
H. lLJr:
You see . I ~ean , because if they say fine
ve agree they should continue on the C englne
t hey can have 1, 000 , I' d li ke you r oeoole to '
b e in a oo siti on -- of course that l, oro is
in ?lnce of the F engine.
P:
Yes .
H. !1 . J r :
Ana Knudsen tells me that .... .
P:
I know they wan ted the F if t hey could be t
it because of t he hi gher power and the
value that would have. But on the other hand
if it ' s going to ease uo the oroduction situation
I suo?ose that ' s the ooint about it, is it?
H.lLJr:
Of course, t here ' s ten mil es an hour difference .
P:
I s that all?
H. !LJr:
That ' s all and it' s an entirely different
cons tructi on . I mean , on e as I understand it
i s a di rect drive and the other i P a gear dri ve.
P:
An d the result is t ha t it loosens up the
produc ti on p icture, is t ha t it?
H.l!.Jr :
';/ell, you know that these C engi nes w1ll roll
ou t to you eve ry day .
P:
Exactly , whereas the o ther is still
H. J~. J r:
~I ell , it '!light b e another 3 months before it ' e
If
no t, . .culd
249
- 4 -
P:
"!' . ~· .Jr:
Nell, the great thing ae we said before is
to get airplanes into the air.
hell, if you can get another 1,000 alrnlanes
by mid-winter • .. . ..
P:
(Laughs) . There isn ' t any ouestion what the
decision is .
H. l'.. Jr:
Ano your ?eople , Balfour and all or them eay,
that the C engine - - Curtiss P-40 -- i s better
is faster than the Hurricane and they ' re etlll
making Hurricanes.
P:
That ' e very interesti ng , isn ' t it?
H.h . Jr:
Yee. He says it ' s not as fast as the Snittlre
but it'e better than the Hurricane and they ' re
still rnakinb Hurricanes , eo he said, well , of
course we'd take them.
?:
Yes, that that looks like an open and shut
case.
H•.' . Jr:
I
P:
All right, than~ you very much.
touch ··i th Fairey hmedia tely .
!-! . < . Jr:
Thank you .
think so .
I ' ll get in
250
- 14 -
)
Young :
·.:ant me to hold the British in my office
until they are sent for ?
H.1:. Jr:
'lhat ls right . I don ' t know what is the
matter \7i th these peopl e. Hone of theu
seem to get the details or lmow what it
is all about . So!llebody somewhere along
the line ought to lmow. You see, the thing
is , this C engine now i s approved, It has
passed its 150- hour tes t . They are roll ing
out every day now . They are really coming
and why take a chance on something that is
of different construction? It is a gear
drive instead of direct drive . It is ten
miles an hour faster, but it is a different
thing and they may fool around r.i th it fr om
three to six months . It isn' t ilorth it ,
Gaston :
Ho .
II . ~ . Jr :
Ed?
Foley:
Hothing.
H.!.:. Jr :
1,1hat about those cli ppings?
Fol ey:
\!ell
H.M. Jr :
\,ell, you haven ' t had a chance ,
Fol ey:
y
I have
I know this fell ow• I have had
ae~hance t o. check him with my peopl e. Do you
want memos on them or \'/ant me to tell you
what I think?
H.M. Jr :
Foley:
)
Tell me v;hat you thi nk.
. b'll would permit using
In so far as th 1 s 1
as collateral , t hat
United States co~~r~c~s Jones sent over here
is the . prop~ sal d ~ef~~ I l eft, our peopl e
some tl.IDe a.,otan thine nith Dan ' s peopl e
had r:orked ou some
"
- 15 t~at nas satisfactory and I thi
. .
bubly our bill that h b
nk 1t ls proJudiciary Committ
as een vresented to the
1
up l'roduction bec!~;eaf~ !iif ~~tw~l} ileed
~~v~~~ ~~~v?rnmt~nt contract to get fin~ci~;
. m
e same way he can if he is
manufacturlng for private consumpti on .
Bell:
There i~ an ol d revised statute that pr ohi bi ts
the ass1enment . of claims against the Government and that 1s a modifi cation of that ol d
statute to permit assignments .
H.LJr :
If it is good, l et ' s get behind it .
Foley:
It is good .
Bell:
Jones wanted somethi nz and y,e thou~ht v1e
shouldn ' t let dor:n the bars entirely. I think
it is pretty nell protected .
H.!.:. Jr :
And the other thing --
Foley:
The other thing, I v;oul d rather see the RFC
orm the property because then it gives the
Government a chance to acquire those pl ants
if they v;ant to at the exuiration of the
lease, but if it is muni clpally- Olmed pr operty- which i s l eased by- the RFC , the principle is exactly the same .
H.!.:. Jr :
\/hen I left, you didn ' t know whether y-ou coul d
give them a tax rul ing on it or not .
Fol ey:
That v:as all strai ghtened out and the t hing
Tient ahead. It v;as cl eared v:ednesday, the
v;eek followi ng your departure .
H.ll. Jr :
You had better come to that l uncheon today,
too . I am having Bell, Youn" ~nd you. and
-.ar and ~:avy and Jones . Dell lS worklng up
a memorandum on the various methods of
)
)
252
- 16 financing . He tal ked to your peopl e yesterday.
You had better talk to him about it.
Gaston :
Yest~rd~y, Colonel han7ell had another meeting
of h1s 1nterdepartmental advisory committee .
A. man from Leon Henderson ' s sect ion of the
Pric~ S~abilization Section, Defense Advisory
~ol'imusslon, pre~ented the idea that i f v1e get
1~to full capac1ty production of steel, there
vnll be a shortage of scrap . You have probabl y
seen that befor e.
H.M. Jr :
They uere here yesterday.
Gaston :
They recommended a c~pl ete embargo on scrap,
11hich is an interesting contrast t o the position previousl y taken by this Committee. They
are now licensing all kinds of scraps and shipments, even number one mel tin~ scrap, and this
expert advises a compl ete embargo on al l kinds
of scrap •
H . :~. Jr :
.. ell norr --
~Jhite :
;.ho did you say advi sed it?
H . ~ . Jr :
Get that to ;iarr y, because Harry sat in yesterday vmcn Stettini us and Batt 1'tere here, on scrap
iron. The:; \'1ere here to see me yesteraay.
Gaston :
Yes .
H.1!. Jr :
At the request of the President , t~at was . I
am talking to the President a~out l~ Thursday,
so 17hat happened at your meetln~, \'all you
feed it to Harry so he can put lt together
for me?
Did you say the Committee made that recommendation?
I said that Bishop, representing Leon Henderson,
VJhi te :
Gaston :
j
- 17 made a report to the Coomittee and recommended
that there be complete embargo on all kinds
of scrap .
H.~. Jr:
i·.e have Leon's report .
an;rthin~?
)
Did your Co:::mittee do
Gast on :
This Committee did nothing . lla.X\7ell didn't
la;;r it before t he Colllllli. ttee for acti on. He
did present a tentative draft for an order
which Vloul d include all kinds of scrap instead of simpl y number one melting scrap in
the controls, but no action VIas taken on it .
H.M. Jr:
Phil - is that all?
Gaston:
lhat isn 't all I have to report, no .
H.L:. Jr:
Oh,
Gaston:
Surely.
~o
ahead .
Can you hol d yours for a minute?
Just to uake sure that you (Young~ are not
liabl e to a l av<suit, that suggeshon that
A. A. 3erle made yester day about your Com7
mittee on the S\7edes , you had bet~er subm.lt
it to the General Counsel before 1t soes out,
becaus e you mi~ht have a suit on your hands .
Youn,::
Yes .
H.H. Jr:
\1i ll you do that?
Youn;; :
Yes .
nted another order r;hich r:as a:pproved
'll..
gul ations uh1ch
t f
.,ey prese
ffhich r<as an amen~en o_ n~enethods for makin"'
\/ould include ~chln:r} a makin~ tetraethyl o
aviation ~asolme ana or as 11 eh as those
lead ~·<itlun the control~t v;ould also include
mater1als th~mselvfte s. d plants for aircraft
plants for alrcra an
eneines .
Gaston :
)
254
- 18 Last \leek I noticed in our reports on caroooes
to ~apa~ some ~o-c~lled aviat1on ~asoline~ I
t?ok that up >nth 1.a::mell right away and gave
bin - I looked up the license nucbers on it
They Ylere licensed shippers . lie reported b~ck
t? me late~ tl:a ~ while they v1ere called aviation sasollne, 1 t was only because they had to
be hcensed, but he said actually they were
10\;- test motor r;asolines . It seems that this
order that aviation gasoline shall not be
shipped out of this hemisphere doesn ' t cover
the r;hole ground of the control order coverine the control order proclamation covers crude
oil from r1hich gasoline can be extracted, and
he saii!. that this PresiC.ent ' s order, of v:hich
\";e have never seen a copy, is lini ted strictly
to aviation Gasoline and that these mater:als
he licensed r.ere ttaterials outsiC.e of the
Presicent ' s embargo order but r:ithin the control limits . In other r;ords, they nere relatively loTI- test ~::a.solines v.hich r.~uld come
under the petroleum products control . It is
apparently some directive by the President to
1:S.Xf, ell . They have never submi tt~d it to the
Cotoi.ttee as far as I know . He JUSt gave me
that info~tion about it over the phone .
0
)
.:bite:
I think we have i t, I am not sure . I will
find out . I don ' t !mow how we got it .
Gaston :
All that I know is what is in the papers .
H•..!. Jr :
You know that this Enslishman here has . been
sent here to see me about control of o1l of
the Tiorld?
Gaston :
I only knoYi what you mentioned several \7ee~s
aeo, that you talked to Lothian on the sUbJect .
H.'r . Jr :
·:,ell , he is here now.
Gaston:
That doesn ' t for the present affect any of
255
- 19 our poiicies in regard to ship movements, I
suppose?
H.ll. Jr :
No .
Gaston :
I am holding a Latvian ship . Tl7o agents - the
Amtorg man claims he has the riLht to control
the movements of the ship and the old agent
claims he has the right, so I thought as l ong
as there was a dispute, I would just l et her
stay \'There she is .
H.K. Jr :
Is that all?
Gaston:
That is all.
258
September 4, 194o
10:30 a.m.
P£ BRITISH PURCHASING PROGRAM
Present:
l~ajor Lyon
Mr. Langmead
Major Doolittle
l~r. Irvine
Generel Arnold
~lr. Patterson
Mr. Haas
Mr. Eu::k ley
Mr. Young
Dr. Mead
Mr. Knudsen
Hr. Kre.ue
Mr. Fairey
Mr. Ballantyne
Mr. Spalding
H.M.Jr:
Outside of being as brief sa possible, in
the talks that I have hAd with the English
Purchasing Mission, I have been watching
this Allison engine thing very closely and
I can 1 t take - and Allison seems to be
rollin g along now on the C engine. I don't know
an awful lot about the F engine exceot when
I talked to !~r. Evans he said thAt General
Motors had not yet given their aporoval.
Knudsen:
That is right.
tyue.
H.M.Jr:
He said be had not yet given it and since
the next month ~r eo are critical to them,
I made the suggestion to them of the oossibility
of c ontinuing on the C engine until General
Motors and the Army were entirely satisfied
with the succeqe of the P, and with that in
mind, I asked for an opportunity to meet
with you gentleoen.
The C engine is an approved
257
- 2 Arnold :
Accord1 n!!; to our information, Mr. Secretary,
that I received from our reoresentative out
at the o lant, the F engine is still some
distance away and with that background we
decided and the Secretary of War aporoved
this morning that we would not count on
any F engines for the Curtiss contract at
all in the 540 contract. •le would shift to
all C engines in the 54o olanes and the
Secretary agreed to that and we have made
thAt decision and all the peoole have been
notified so far as that 540 pursuit planes
are concerned, we have made that decieion.
H.M.Jr:
You will have to help me out. According to
this memo r endum here, the English had of the
C engines on order - it looks like they had
Sl4, of which they oroceeded to deliver 2S.
Knudsen:
Thet is not entirely correct, Mr. Secretary.
The British have the understanding with
Allison that they can deliver all the C
engines they want until we are reedy to
switch.
H. M. Jr:
Allison, General Motors, bought enough
material for two thousand engines, of which
1 700 ~·ere for the English and 300 for the
A~~y. They also told me that sometime within
the next week or two they 1..-ere going to make
more C's and they would have to know whether
to buy this material, but the decision would
have to be made within a week or ten days.
Does that sound right?
Knudsen:
•hat is right.
H. M.Jr:
So if you gentlemen approve and thoug~t at
wise for the English to continue on t e '
then they ought to nhotif bo~~era6o~o;~~:.
that they want anot er
'
then it Is all set,
I f they do tl:wt nowb
materi;l for the
he will have to go uy
olus whatever
United States Army engi~es~rotect the English.
he thinks is necessary o
5
Knudsen:
258
- 3 H.Jo!.Jr:
They are down the hall and they are read
to come in any minute after you peoole will
~ell me what you are willing to have them
o. ~'lould it make any d1 fference to you 1f
they continue on the C rather than the F?
Arnold:
No, air , it wouldn't make any.
or fact, it would helo us out.
right, Jimmy?
As a matter
Isn't that
Doolittl e : There is only one thought there, and that
is that the longer C1 s are made, the less
pressure there is to oerfect the F.
Knudsen:
I don 't think you need to worry about that.
You are not going to have a repetition or the
C oerformance with the F engine.
H.M.Jr:
That takes care of that. ~ell, now, let me
ask this question. If the English- it was
Mr. Knudsen 's offhand suggestion this morningif they are going to do it, they ought to
say they Will take another thousand. That
is what you said this morning. What does
that do t o Curtiss- Wright? Does that make
any d~fference t o them, as far as the frame
1s concerned? Do they have to order another
thousand of the P~O's?
Arnold:
Yes, sir, they would have to order some more
me.terial and it would take them some time to
get the material in, but they could get the
material in by the time the engines were
comoleted so there wouldn 1 t be any trouble
with that. It would just fit in.
H.M.Jr:
But they would have to give Curtiss an
additi onal order for additional P40's?
Arnold:
That is right.
H.M.Jr:
Is that additional to you oeoole?
Arnold:
Yes, str .
Knudsen:
It 1s only a aueetion of nutting the C or F
in the P40's, isn't it?
259
- 4Arnold:
1'/e haven 1 t talked t c
yet until we
go uo there. We ar~ gu~tiss
0
ng up there on
Mondsy . lie don,
is. They ma ha!eknow what their capacity
increased their caoacity
to take that:
Knuds en:
Mead:
t
The English hav
We got about 4 e30~o dmiodr~tengines on order.
n we, Doctor?
•
'
Yes.
Knudsen:
Forty-three hundred altogether or the
H.M.Jr:
This figure which they gave me last night
says up until August, 4,144 Allisons.
Mead:
l'lell, the British, on order, Hr. Morgenthau,
is 3, 490. Then they have options for 2,625
at the too of the sheet, you will see.
H.l~.Jr:
That is right.
Mead:
Now, I think the danger only lies in this,
thAt if you don't have any more airolanes
coming out or Curtiss than they can now
produce, and they can swap from one type
to the other, that is all right, but 1f
you add a thousand airplanes on top or
what they have got, you may sink the shi?•
I say may because as you say, I don't know
just how much we can stretch them; but if
the British are simply willing to exchange
F engines for C engines in comparable
airplanes, that would be fine. There would
be little or no question about that.
H.l~.Jr:
Well , what they told me was this, that they
consider the P-40 as between the Hurricane
and the Spitfire, and that they are still
making Hurricanes and they are still doing
a good job so they will be delighted to get
as many mo~e Curtiss P4<>'s as they can get.
Arnold:
c
and F.
You are right.
But it depends on the productive caoacity
ot their plant, and I don't know what it 1s.
- 5 Kraus:
Knudsen:
You can't stretch it ve
There are 8 couole of horr Much, General.
is some recession in eMoles in which there
a cou~le of holes that mi~~e~t. There Are
That is the best information Ie~illed out.
ve on the
olant . You may g t
e some different info~stion.
The British have a plane for every engine
they have on order, haven't they?
Arnold:
:o, sir. I am not sure that that is true of
llison, but we knOll 1t is not true of othe
rs.
Do you know, Irvine?
Irvine:
No .
Arnold:
Do you know, Al, whether they have a plane
tor every Allison on order?
Lyon:
Yes, sir.
Arnold:
They do have?
Lyon:
It I may exolaln, the D differs in certain
parts - that is, the P4oD differs in detail
from the P4o. Taklng first our order for
additional 324 P4o's in lieu or the D's,
wlll be satisfactory due to the fact that
we have tentative orders under discussion
on the 14,000 program, which wlll allow us
to use those parts for the 14,000 plane
orogram. Now, with resoect to the British
H.M.Jr:
Excuse me.
program?
Lyon:
It is our program.
H.M.Jr:
It is your orogram?
l~ead:
It is our part of the 33,000.
Lyon:
Now at the time we standardized on the
P40D wlth the British Purchasing Commission.
The Curtiss Comoany went ahead and ordered
oarts for the p4oD for production, which we
must determine froM the Britlsh F when they
chopped off thelr p4o. Now, that point oan
The 14,000 program is the English
261
- 6 -
only be determined from Mr. Baker, as
General Arnold pointed out .
H. M. Jr:
W.o is Mr. Baker'
Arnold:
He is their representative.
H.M.Jr :
\t'ell, the head fellows are down the hall,
Fairey and a couple or others. we will
bring them in.
Lyon:
So in e !feet it remains to be determi ned
in confe rence with the Curtiss Company
h0\1 many more airplanes should be ordered
by the British, which, plus the 324 airol anes
that we are going to add, they can handle
to !ill out the flat soots which were oointed
out by Captain Kraus. That is the whole
n roblem.
Kraus:
There are a couple or dips in their production.
Knudsen:
You switched from P4oD to P40 because or· the
material to be used?
Lyon:
There was no material lo st , sir, tor the
reason that we have under negotiation now
additi onal orders over and above the 524
engines, in which we will use all parts.
H. M.Jr:
In this memorandum they say they would like
to olace an order tor 150 additional Hawk
SlA's, which they say is a spot there. Make
a note or that. They would like to ~lace an
order ror an addi tional 150 Hawk SlA s, !or
which capacity is available .
Knudsen:
That is on too or the 14,000.
Mead:
I would like to explain that one.
H.M.Jr:
I don't know - -
Mead:
I talked
to the Curtiss Comoany this morning.
d that was because they
And the reaso~ they 0not having made the
were arraid tne Army,
ight not have any
decision as yet, that they m
262
- 7work ror the olane shop.
H.M.Jr:
Oh.
Mead:
So that I think it 1s important that
General Arnold have a chance to check and
in this instance I believe he 1s correct,
that he has got ships on order ror F so ir
he simoly shirts rrom F to C tyPe or airplane,
he won't be putting an additional load on the
plant; but ir the British order an additional
150 on top or their existin~ orders is what
I am concerned with. I don t know what that
does to Wright.
H.M.Jr:
You (Arnold) will be up there Monday?
Arnold:
Mr. Knudsen and I are going up there on
Monday morning.
H.!.!.Jr:
When can you let us know?
Arnold:
Monday night.
H.M •.Jr:
\fken will you be coming back to Washington?
Arnold:
We expect to be back on Tuesday night or
Wednesday morning.
H.M.Jr:
All right.
Knudsen:
We can call up.
H.M.Jr:
Then the other thing that they say, theybhope
the Administration w~ll all~~l~~~~~s ~~er:by
placed ror a thousan imoredericit 'oid you
•
disposing or the preV OUS
look into that?
That is 472 we are short now and nutting them
down on the back end.
Knudsen:
H.M.Jr:
h tostated and have as
Ph1.l, you have this P o oeople want here and
many copies made as the · ? Will that also
give them copies, will you
be decided on Monday?
- g -
Knudsen :
The 472 engines are part of the present
order. We just take them from one place
and put them in the other place.
Arnold:
lYe could dec ide that before , because they
have got the Allison production here and
we know ou r requirements even with this new
load, so we could decide whether the British
could get that right now.
Knudsen:
llhf\t is the monthly schedule?
Arnold:
The monthl y schedule of production is that
they start out with 200 for September and
300 for October and November, 350 in December,
January, February, March, and 4oo in Aoril.
Out of that, the maximuo produc tion of the
Army is - requirement of the Army i s 75 a
mon t h, even with this new load, 90 that
leavee to the B~ittsh 150 f or the - September,
250 ln October,- no, 225 in October, 225 in
Novembe r, 275 in December, end 275 from then
on.
H. M.Jr:
Don't you think it would be better to give
them t he f ull answer at one time?
Arnold:
I think we can do it.
H.M.Jr:
Give them the whole thing at one time.
Knudsen:
ThAt i9 105 more planes.
H.M.Jr:
A hundred Rnd fifty more olanes , and the~kl
t hAt sho rt age of 472 enginest~~eyt:~: !~oth~~
about at go a month and can
Iytake it that
thousand C instead of the F.
they have a t housand F on order.
Knudsen:
Yes , sure.
H.M.Jr:
And will there be the frames t o f1t the engines.
I t hink that ls un to Baker to tell us.
Arnold:
H.M.Jr:
i ln a minute. Before
\vell , tre will have hl~e ~wo other things that
they come in, there a
263
264
- 9 I would llke to bring up. This is sort or
confidential. One thing is extra confid ti 1
It is all confidential. In th1a deal one~hea '
destroyers, there wae supposed to have been
five long-distance bombers and five longdistance flying bo ate. Since I am back I
haven't seen the President and I don't know
just - the British Ambassador asked me about
it last night and I told him to take it up
with the President and if the President wanted
to make the request or the Army and Navy, he
would. But there is thRt thing hanging fire.
Then the other thing, which has nothing to do
with this, the thing that I would like to
bring to your attention now - maybe it has
already been brought to you - the Undersecretary
for Air when he was over here, was very anxious
to get six Consolidated flying planes now at ·
the end of your order. In other words, he
wants to use for transporting pilots via
Botwood these planes. He wants six to carry
pilots acrose.
Knudsen:
All this means we are simply rearranging the
orders for planes. Are we going to put a load
on top of the 14,ooo olanee?
H. M• .Jr:
They are not trying to inch in on the 14,000,
no, ju st to rearrange with them. They are
not trying to inch in on it.
Knudsen:
You know any planes that we are t alking about
doesn't ~hange the totals. It simply rearranges the deliveries.
Arnold:
lie can 1 t change t hat Unti l we change the
fac1li ties .
Knudsen:
t I Just wanted to make that
That is right, bu
.
ly a rearrangement
clear, that this is mere
of the facilities.
he wants for transferring
But these six planes says this is very , very
oilote. Beaverbrook
important to them.
Patterson: What kind of planes are those, tranaoorte?
H. M. Jr :
265
'J(.)
- 10 H. M.Jr:
They WRnt a land plane
Kraus:
They a r e B24 's.
H. M.Jr:
I think they have them on rd
Caota1n Kraus ? They want ~om:r~1 :~~e:~! they,
and - they will let you have some or their
later on and they frankly are going to usee
them to carry oilots acrose.
Patterson: From Canada?
H. M.Jr:
From Canada .
Arnold:
I sn ' t there some way to our chase some of
these Stratoliners that run the comme r cial
line for that carrying business?
H.M.Jr:
Yes .
Arnold:
And let us keeo our bombers. Because frankly,
right now I am· a fr aid of the criticism that
is go ing t o come to the Air Coros for not
having a lrplaneP . We have been deferring and
deferring f or one reason or another, and I am
sort of fearful of what is going to happen
if we defer much longer.
H.M.Jr:
These six have nothing to do with the destroyer
thing .
Arnold:
I appreciPte that.
H.M.Jr:
But there may be a reGUeet for those five, but
the elx - your sugges tion is to get some or the
Stratollners?
Arnold:
I don ' t see why they can't defer the delivery
of the Stratoliners to Pan-American. They are
cooing through now.
H.M.Jr:
Who would they take that up with?
Arnold:
And they would hold more people .
286
- 11 -
H.M.Jr:
Kraus:
Who would they take that up with?
~larren Tripp, I guess .
Arnold:
Warren Triop and the Boeing peoole.
Patterson: Would it be Civil Aeronautics?
Knudsen:
Noi,hthhat will have to be found out by contact
w t t e plane manufacturers .
H.M.Jr:
Anybody here want to volunteer?
Knudsen:
\'le will volunteer to find out how many
Stratoliners are ready for delivery and
when.
Kraus:
think ;.·e found there was some ooposition
from the commercial operator deferring,
esoecially with respect to three of those
planes, since he will regard them as competitors with their own line.
H.M.Jr:
You mean to go to Engl!U'Ii?
Kraus:
Yes. Three of them are for carrying pilots
and the other three apparently are to take
up and continue the British Tram Atlantic
Air Service through the winter when ice seta
in at Botwood. They 11snt to use land planes
end I therefore suspect that Mr . Trioo of
Pan-American would be reluctant to defer his
choice equioment in order to let hie competitor run a winter line acrose the Atlantic.
ll'hoever aoproaches him will have to realize
t~t would be a very natural reaction for a
man who is in a commercial operation.
H.M.Jr:
They will give Tri?P a contract to carry
these fellows acrose . They will give him a
contract ~t so much a head, if you want to
do it thst way.
hat is a much more
JuAt for carrying, I think t
reasonable ~1ay to do it, if it will work.
Arnold :
I
267
- 12 R.M.Jr:
Arnold:
"
You mean to give Tr11lp a contract?
Yes, give him a contract.
R. M.Jr:
They can do that.
now.
Kraus:
You can see that
up hie airolanell
service in order
competition with
R.M.Jr:
Find out if he will take a contract at
a head to take them across .
Mead :
Do you know hot., me.ny men?
R. M.Jr:
No, but we can find out .
Arnold:
You can carry more in the Stratoliners than
than you can carry in the B24 1 e.
Mead:
I eueoect there was a little thought given
to that one too, that they will be useful
as bombers if and when.
H.~l.Jr:
\fe ll, are you go ing to work on that?
Mead:
Sure, I will.
H.M.Jr:
Should I have the English come in and you can
ask them some questions, is that all right?
Hell, it coste them enough
Tripp wouldn't want to 1ve
just ready to be put ing
to establish a line in
himself.
80
much
Patterson: Yes , elr. Could we flnieh with the Allison
engine now?
H.M.Jr:
Do you want t o bring up something?
Patterson: No
I am just grasping the Allison figures
no~ and this talk about the Curtiss planes, I
em just not up on it.
Knudsen:
It ia perfectly eviden~~~a~~~~hg:~ :ep~~~: a
deal with the British
have olenes on
for every engine. ~ mu~~ switch rrom the D
order t hat he will k v~ eral Arnold used to
to the p4o , just 11 e en
268
- 13 with the American planes , If he can do that ,
then ,.,e w1ll have no trouble at all.
Patterson: Is there any dam-up notr With the Bri.t 1sh planes?
Arnold:
Yes, there is.
H.M.Jr:
The situation as .of Friday, August 30, was that
they had 72 P~O planes and they got - still have
14 ~ 36's. As I understood from Mr. Evans, the
d~al he has on f or the Army i s that they complete
delivery of 200 engines to use t oday or t omorrow
and that from then on , on the hundred spares ,
you P< gree to take one soare a day end t he rest
can go to the English. Is that correct?
Arnold:
ie have got an agreement arranged now whereby
the English have 150 engines during the month
of September and 250 during the month or
October and that will give us barely enough
to get our frames out.
H.¥..Jr :
Eut does thn; check with trhat Evans told me?
Doolittle: For September, yes, sir, it does.
Patterson: As I understand it, that is a concession on
our part of 24.
Arnold:
That wouldn't check exactly because - it will
for September and October.
No
\ve will be short of the two engines over
and above which l~r . Evans stated. How many
more was that , Jim?
twenty that they
Dool1 ttle: That fifty ~~s made up 0 ft into
Army air frames
still are required ~oto~re required to go to
at duffalo, eight t
for reolacements, and
the fields i mmediate Y from then on through
tlo•enty-two e.t one a ~ay lie wanted eight before
the rest of t he mont •
a day Thet makes
t.'e start ed taking them 0 ~~ of september, and
up the fifty for the monwe gave t o Mr. EvanA
is exactly the schedule
FiftY oomes out
'\nd l~r . Evans gave t o you.
Lyon:
!
- 14 exactly right for September.
Arnold:
How abou t fifty for
aa Evane ' figures?
oc t ob er, is thst the same
Dool1 t tle: I don't believe :·lr. E
for October.
vans gave you figures
Arnold:
Then thRt will give the British 150 engines
for September.
H.M.Jr:
How many i a tru> t a day?
Dool1 ttle: They plan to put out eight a day for the next
25 days .
H.M.Jr:
He said seven 8 day, five going - that Curtiss
could mAke five P40 1 s a day and would take two
out of reserve, out from a reserve, which would
give them 7 ~ lanes and 7 engines a day. ThRt
ia l~hPt he told me 8S of Friday. Does thH
check? And t he eight h engine would go to the
Anny?
Dool1ttle: CurtiPI' no1-1 wo uld like to make about eight a
day, five new ones for the British and make up
tr~ee of the ones that are partly fabricated
and get the ext r a engine on the ninth one
for the Army.
H.M.Jr:
It depends on how many Allison can turn out
a day.
Knudsen:
The Army gets one and the Briti sh get the rest.
H.M.Jr:
Tha t is for September?
Doolittle: That would start about next week, because we
have go t to get - we bPve got to make uo the
240 we a r e short and start g spares out.
R.ILJr:
~ that officially when
Will somebody tell the ~
they come in?
Doolittle: Yes, air.
Arnold:
~;ajor Doo little will do that·
269
270
- 15 H.M. Jr:
Now, a re we ready for them?
Arnold:
here is one other thin
a ctual production. It gioo~ 8 want to get thi e
are demanding from Alli
to me as if we
they actually can prod.u~~\~0 ~~ engines than
order for a thousand
li
ey give that
capacity by June '4l.if !ew~i;ee~~~~~o~h~r
more o rders, and a thousand extra
i
Y
will do that.
eng nee
Knudsen:
Say thflt again.
Arnold:
By June, 1941, if we give Allison any more
orders, we will exceed the Allison capacity
and Allison will have to have more rac111tiee.
Knudsen:
Well, I think --
Arnold:
Will those facilities be in operation by June?
Doolittle: They anticipate 600 engines by June.
Arnold:
'./e need right now 623 in July and 655 in
Augu st, plus eoares, eo our present requirement e exceed their capacity --
H. M.Jr:
Why not leave it this way, that by Monday
ni ght o r Tuesday the Army 1-11ll be ready to
te l l t he English, 11 You can have so many more
C engines in substitution for the F engine.•
Is tM t right?
Arnold:
Yea.
H. M. J r:
Dep ending upon how many additional P40's
Curtiss can turn out.
Arnold:
l/e will find out about the P4o 'e on Monday.
H. M.Jr :
And the thing to ask them is, whatever you
say they can have , will they say they can
take them; and if they are prepared to s~y
yes, we will l et them have them . Is tha
all right?
Knudsen:
That is all right.
271
- 16 Doolittle: There 1s one oo1nt fi
thAt is that Allison ~~~k~r. Secretary, and
200 e ngines in September
, they Will put out
so we cPn 1 t s ay deflnit i .ie need 50 or them
w1ll g et 150 . They -w1l~ Y that the British '
from whRt Allison outs 0 ~et the difference
require to keep our alro~ and the 50 we
ane!l in the air.
H.M.Jr:
Tell them whatever the fact
would you go down and get ths sEre. Buckley,
e nglieh?
Knudsen:
So we don 1 t split 1 t all on onp side,
H.M.Jr:
DoPa tha t sound all right?
Mead:
ThAt sounds all right.
H.M.Jr:
';lhile we are wa1 ting, jus t another th1ng.
«e get our statistics weekly end the airolane
engine comoanies now say that the Army has
asked for a semi-monthly report. We wruld
rather c ontinue to get them weekly. W111
you talk to George on that?
happy?
(Hr. Fairey Rnd
conference.)
H.M.Jr:
Arnold:
Fairey:
l~r .
Is everybody
Ballantyne entered the
l~r. Fairey, we have gone over t his situation
on the Allison engine and these gentlemen
would like to ask you some questions about
your orders and about Curtiss.
We were talking over this auestion of
deliveries Rnd it looks now as if Allison
will be able to deliver so-proximately 200
C engines during the month of September. The
Army reauirements will be 50, and we would
leave the balance ava ilable for you. That th
would be about 150 C engines during the mon
or September. If Allison reMhes thei; ou
estimate or 200 engines, the~ wouy~~ ~u~/miss
150. Ir they miss 1t a couo e,
your 150.
can we absorb them?
And you want to know
272
- 17 -
Fairey:
No , 1t is a aue~tion or ~
aorne't.here near mee ting Y ether that cor.~ee
our requirements,
Yes , 1t does. I won 't t
figure ~ . Th '>t would be ~gt i my mel!lory for the
am not sure how many air fr n Seotember. I
accumul , ted at Curtiee-Wrig~~~s they have
H.M.Jr:
!'hey have got 72.
Fairey:
·•e shan It want any for those. We will want
that nu~ber for Curtiss- Wright and this month
none for Lockheed or North American 80 the~
mP.ets 1t easily. But how does it g~ on after
that?
Arnold:
We have decided we a re going to keep on with
t he P40 airplane until we complete a contract
tor 500, so we are awi tching over some 300
airolane e from the P4oD to the P4o, which
mean~ from the F engine to the C, eo that
increases our requi rements for the C engine.
The F engine we can 1 t figure how we are go 1ng
to get any of those until later 1n the tall,
and ,.-e need the air frames for unite coming in
this B'Oring, eo the way this would work out
for t he bal ance o r the year, our requirements
would be 50 ror Seo tember, 50 ror October, 75
tor e ~ ch month thereafter until next March and
your - there would b e available tor you according
to All1eon estimated oroduction 150 in Se:>tember,
250 in October, 225 in November, 275 in December,
275 tn January, February, and March, and about
Fairey:
You a r e a bit ahead or me , but 1t looks so rer 275 was which month?
Arnold:
We started i n 275 in December.
Fairey;
Yes .
Arnold:
'w'hen it gt>ts to 300 is in April.
Arnold:
300
Fairey:
Arnold:
Yea . That is all right exceo t we w:~tt~~~~
Hawk glA 1 e ourselvee i r we could he
because we don't know
I don 't know about t hat.
- 18 right thi s minut e whP.t th
ot t h e Curtis s - Wright is e ~reductive caoaci ty
Fairey:
are go in g uo on Monday a~d r. Knudsen and I
ane>;er fo r you sometime T wde expect to have an
ues ay or \'fednesdB¥.
Those d eliveries will cover
ensui ng time, subject to theu~ n~cely for the
want more Hawks.
ac thst we would
H.M.Jr:
Well, are you prepared to say that i
find uo to a thousand additional Cur~i;~e:4g~
I mean it that is within the oosaib1liti
'
with the C engine, that you will take th:~?
Fairey:
Yes.
H.M.Jr:
So they kn o ~t 1f they go u:p there they can
speak for you?
Fairey:
Yes.
Mead:
That is no t e.n addition, that 1s juet an
exchan g ~ o! airplanes that had F engines
t o a irp lanes that have C engines, or are these
add itio nal quantities?
Fairey :
Within what u eriod?
Arnold:
\ie don 't k now yet, until we find out what Curtiss
cPn do.
Fairey:
Of co ur s e , my ans,~er deoends on how soon we can
6 et them, bu t I '~111 take them certainly and
with C engines if we can get them.
Arnold:
\ihen ts your outside limit on delivery of those
thousand ? \ih11 t would be your last deltvt>ry date?
We would like t o have this .
Fairey:
This i s the 81A's.
H.M.Jr:
Is that the same as the Curtiss P40?
Irvine :
Yes, sir.
Fairey :
and the g7A
1 th ~hep40F or
The 81A i s the one you calk
c eng ine·
is the P40D a nd the 87A ta es
273
274
- 19 Arnold:
F only.
Fairey:
So by taking C engines we are
the 81A , or the ordi nar y P4o. giving ourselves
Knudsen:
You S\ii tch .
Fairey:
That was what I wasn 't ou1te sure about .
the 87A tAke the c engine?
Arnold:
No , we ce.n 1 t ew1 tch. 1fe a re running on our
contract :t'or 500 a irplanes w1 th the c engine
which is the Sl tyue, because we see we can '
ge t delivery f or those so much qu icker than
\VB can the other, and our next order is going
to be for your 87 or our P~OD type, which 1e
the F air olane. The parte are now i n proces s
of being made at the olant and we are going to
ho'ld over the cart s.
Fairey:
\vas this addition of the extra ones because our
total orders :t'or t he Hawk type, un:t'ul:t'illed eo
far, is 1,243? That 1s of all types, including
560 o:t' the 87A ' s .
Knudsen:
How many?
on order?
Fairey:
Th11t is the totlll complete aircra:t't.
Arnold:
Then you have go t the re about 560 o:t' engines
t hat you are going to require.
Fairey:
Yes.
Arnold:
You won ' t get delive ries on those , as :t'~r as/
can see no'~ be:t'ore some time - you won t gel
'·
t i the winter or ear Y
the engines unt 11 1a e nb t right Jimmy?
in the ep ring. Is t hat a ou
'
Wi ll
Is t hn t the total airolanee you have
Doolittle: Yes , s ir.
FHrey:
1·/e were reckoning to
nine in March.
Arnold:
Do you think you can
No, sir.
tart those, one in February,
B
meet that, Jimmy?
275
- 20 -
Arnold:
That is the reason why we hav
ch~nged our
orders from the P40D to the
we
didn 1 t think ~1e could get dellve' r iecauee
ee.
Fairey:
\le hElve an elastic contract by whtch we take
either the C or F motor.
P4o
Doolittle: That would wor k.
Fairey:
The Allison Company inform us and we come to
an agreement so many months ahead of which
engine we will have. You see, we have an
elaatic running contract. We place an order,
what we call a material release, for so many
eng1nP.s wh\.ch doesn 1 t fix the type. Two months
after that we give the order which does give
the type. Our contract is interchangeable.
Knudsen:
I am wonderi ng about the air frames you have
ordered.
Fairey:
The air frames we have ordered so far are only
560 of the tyoe, the S7A 1 s, which must have the
F motor.
Knudsen;
1
But you can defer that and take more P40 s?
Fairey:
We could. \ie are reluctant to. lie like them
because they are a bit better, but the temptation
if we could get more aircraft before 1s very
great .
H.loi.Jr:
That is the whole po int.
Patterson: That is what caused us 1 to chanf~a~u~r~~~~~lon
and take more of the C stln i~~ o.n engine still
rather than to eXPerlmen w
in the course of development .
ld leave us, if we
Fairey:
In round figures, that wou ot of course, we
if 1te took 1,000
took 4 , 000 total Cis - ex~ere'
0
would rather use the C mo with onlY just 250
C1 s, and it ~~uld leave us
odd S7A ' s .
No1t, what should we gain?
27o
- 21 Arnold:
we can 't tell that, Tha
think it might be a good t i~s one reason why I
further decision on that
~a to wa1t for a
and I talk to the Cu r t1ssun
Co n after Mr. Knudsen
mpany,
Fairey:
You ~mnt to know 1f we are willi
C 1 e and lees or the F, 8 on the ng t o take mo re
fact we will get more machines strength or the
earlier?
It is for your benefi t.
Knudsen:
Fairey:
Yes. l'lelt, the answer is , in principle, yes,
but I don t want to lose altogether the F • s or
t he g7A ' s that are t o come later on.
Arnold:
There is one other item that enters into that.
If you want to 1 put i n a thousand additional
g1A 1 e - •.o1e don t know when the productive
can!lcity will enable you to get deliverie s .
'llhat is your fins.l dat e on it?
Fairey:
I could tell you that if I knew the month by
month nroduction I would get . Can you - could.
it be a thousand put in month by month --
Arnold:
•ve will give you that when 1-1e get up to Buffalo.
Fairey :
Because my acceptance of an sddi tional thousand
is de!)endent on h01-1 soon I can ge t them.
Knudsen:
You are Sl"li tching the thousand from one kind
to the other.
Fair ey:
Yes. You don 't mean I am getting an additional
thousand machines?
Knudsen:
No .
Fairey:
Quite right.
P
b imoressed, that you
atters on: It is a point now to e Curtiss oeople to take
should oreoare with the
Sl instead o! the g7,
ber but we have only
Fairey :
Yes, for an additional num
'
w haVe roughly
of the S7A ' e, only 560 on order.
e
1
9
630 - about 700 glA •
- 22 -
patterson: It is conceivable that ·
tyl) e surplus. It is thyou Will have some c
you will have an arran : question or whether
peo nle f o r a frame to ~i ~e~~ With the Curtiss
ose.
Arnold:
I think what we ought to d
fro:n Curtiss Just what hiao 1a to find out
is and then arrange the homax~m~m production
we use the whole capacity.' ;~~ ~lee eo that
ought t o do .
s what we
H.J.I.Jr:
Ri ght.
Fairey:
I understand hie caoaci ty is around 170 a
month for this type, isn ' t it?
Arnold:
Well, we don t know . I have heard so many
figures I don 1 t know which one or them i s
eo.
H. !o!. Jr:
But I mean, this seems to me the - i t stands
to r eaeon that 1f the Ar:ny has made the
decision they are going to continue on the
Curtiss P4o with the C engine 1n order to
get the addt tional deliveries extended to
some 500 additional frames - isn't that it?
Arnold:
That is right.
H.M. Jr:
And you hop e to get them several months
earlter.
Arnold:
We will get them several montha earlier .
H. M•.Jr :
No1t, a fter you have taken care of yourselves,
if you co,lld do the same for the English, I
should think the English should jump at 1t .
Fair ey:
Certainly we would jump at 1t.
Arnold:
The only thing required is that they are
now,
manufacturing certain 4 D Parts toforbe you
some
g7 part a, and the!'e would h~v!hen we aw1 tched
sort of an agreement~g t~ would also switch
back fr om 4o to the
yo lar oarts as the F
so a s t o use up their regu
engines become available.
Day and night.
1
°
277
278
- 23 Fairey:
Arnold:
In fAct , you are auggeati
to this extent, both coopng we should cooperate
get maximum deliveries an~rate on the gu to
over to the g7A , and the me t hen both go together
is that we have to llai t a b~ing ot this to us
F engines. Then we both
itt longer tor our
ew ch over.
The Bame ae we have,
Fairey:
lie both have to wait longer, but meanwhile
get more of the SlA'e.
we
Mead :
You are waiting because you can't get the
engines, eo you are get ting something,
H.M.Jr:
11ouldn t it be better tor Mr. Knudsen 1t
Hr. F,.irey or somebody was on t he ground Monday
in Buffalo to give you yea or no right there?
Fairey:
I will come there.
Arnold:
Aonday afternoon?
Fairey:
At Curtiee-Wright 1 a .
Arnold:
lie are going to the Reoubl1c plant t1ret on
Honday and then to Buffalo, eo we wtll be in
there Monday afternoon.
Fairey:
I hAven 1 t been there for years, but I will find
it all right.
Arnold:
Ri~ht
H.H. Jr:
If you would be there, ~!r. Fairey, you could
give them yea or no right on the ground.
Fairey:
I certainly will. Then we will be able to
tie these things down .
H.!'.,Jr:
1
It looks like a good deal , doe an t 1 t?
Knudsen:
In other worde, a thousand C engines and 500
for you, 8 total or 500.
Arnold:
Yea .
1
in the main office ot the factory.
278
RE BRITISH Ptm.CIU..SI ,G PROGR.H;
Present:
H.U. Jr :
ll
September 4 1940
2:40 p.m. '
L:r .
Younct:r . Bell0
1lr. Foley
Urs Klotz
!:~ t B
h elflirsttplace, I want to compliment
on he ray you
t
t
I thout;ht you d~d a granrjob:ed hat thinr;.
= • e
Bell:
\~e
H.l:. Jr:
\.ell , you had lots of company, ·..asn ' t i t
Theo~ore Roosevelt who c!llle back after expl?rln~. the upper region of the Amazon and
sa1d, ~,as anybody here ever been there?"
They sa1d, "No , " and he said "".fell now I am
goinr; to tell ~·ou about it. n' Isn ' t' that the
story?
were talking about a subject I knew so
little about.
./ell an¥,;·:ay, Jones stayed behind and he said
to ne , 'The last suggestion you made is the
best suggestion that has been mde yet ." I
appreciate why he thinks it is the best suggestion, because it takes the heat off him.
Right?
Foley:
Oh, yes, sure . That is what I said coming up
in the eleva tor, that you got what you were
after at the luncheon.
H.1',Jr :
I got what I was after, but I didn ' t v1ant to
bull the thintr on him too fast because they
mir;ht think that was why I had the luncheon.
Foley:
',/e \"/ere rehearsing it .
H.1J. Jr :
Very good. \ie will let you go bactk ~ohtthe
.
· d"n" you came s ralg
ranch aGa1n, pro~l 1 9
that come home
hone. These hom1ng plgeons .
on the other side of the trlangle ••.•
·,.ell an;raay, J esse
thinks it is sr:ell. !'rori;
280
- 2 -
,.
p
;.;r • a tterson is co tomorro1·: and I rantiillng back here at ll·OO
to him, and ~r;i~ i;o~ot~ree _ here to l i sten
I~ you (Youn"') will b hnung ln at 4:0\J o' clock
illll tell h~ what ha e ere at that time and I .
Jot;e::; is getting intopl~ne~, ~n the meantime
thlnr; . There is one
. e onhnent al 1:otor '
said embarrasses him polnt he made which he
thine that he has hadvery much. He said everytwo-thirds and the Arm~o f~r, the English r.ant
,/e are so predominantl ~n Y l'iant one third.
makes it very difficul { for ~~e English, it
liberal in his credit te~~ l m to ?e ~oo .
l:as :eversed, it would be m;chH~e~~~~ l f I lt
telllng you this side of the story. '
am
Young :
'i'hat is not true in the Continental case .
H.:S. Jr :
Isn' t it? I thought they ...-anted 3500 and we
only wanted a thousand.
Younr; :
~:ell, it is a production rate of 20 to 10 20
H.Jl. Jr :
I
··-
for th~ Englis~ and 10 for the Army, but the
A'!'ffiy mll certlfy that they need capacity for
20 , so that makes it diff erent.
Anyway, when Purvis comes i n I am going t o tell
hin to v:ait 24 hours and see what happens , because I don 't t hink 1~. Jones i s quite as smart
as he thinks he is . I v1ant you fellows t o lmow
I am not so dumb as I seem. I am ~erfectly
willina- to let ],{!> . Jones say this lS swell and
let th~ A'!'ID.Y do it, and once the Army has done
it, ne Hill sit back and say, "If . the A,rmy can
do this for the Government, certa1nly Lr . Jones
can do it throu~;h the Treasury. " I mean to
set the precedent that the Army goes ahead
and builds a Government plant and then let
them subcontract to the English, it make~ Jo~es '
position very much l ess tenable . Ao I rlyht.
I just r:ant to let you JmoVI that you aren t
putting anything over on me .
- 3 -
Foley:
It is _rau?h more difficult to do it this way
than 1~ 1s on the_ Jones side. On that side
there 1s n? quest1on but this way there is
some questlon, because the Government oVills
the plant but as long as it is being leased
to a private contractor and the Government
doesn ' t need full capacity, there is no
reason why the private contractor in the
Government- ovmed plant may not use the excess
capacity that the Government doesn' t need
for some third party or some other Government .
It is perfectl y all right.
H,J.:. Jr:
\"fell, of course Jones can sleep on this thing
and maybe he uill wake up to the fact that
once \'1e ge t this precedent set, we nill go
back at him. But I feel a little bit better .
HoTI about you? Do you feel a little bit
bet:er?
Youn~:
Very ouch.
H.L:. Jr:
Are you sure?
Young:
Yes, sir .
H.L' . Jr:
Don ' t say yes unless you mean it.
Young:
I have no doubts about saying yes, sir .
H. Y. Jr:
\vba t do you think?
Foley:
I think he did a good job .
H.1!,Jr:
\lha t do you think?
Bell :
H.ll. Jr:
d
could be done .
I think it is as goo as
. .. Stimson kno\·1 the~· ~d
And I loved lettlngif ' General \7i thout asklng
Tiritten the Compttr~ha~rover nicely? I only
us. Didn 't I g~
said it three tDnes .
- 4 -
Young:
And ringin~ the bell every t·l.IIle,
Foley:
Th~ thinr; that bothered me 11as what we l7ere
~01~!; to say that r1e couldn 't go alonrr with,
d1dn ' t understand that , Vlhat could0 ; 1e have
t ol d them before they r1ent to the Comptroller
General that we can't do now?
1
H . 1~.
Jr:
according to Sullivan - Sullivan read
this thin!; and then called me back and said
the vray t he thing r;as \TI'itten that you couldn' t
use it Tiithout getting legislation, As I
understand it, they eot this opinion and then
told them it \7as all right , they could use
this formul a as is . That is the 11ay I got it
froD Sullivan .
Bell :
I think he must have meant the reimbursement .
Foley :
I don ' t see the relationship between the reimbursenent and the tax problem.
Bell:
There isn ' t .
H.1!, Jr :
Bell :
Foley:
•
~.ell ,
H.l!,Jr :
I smply said ·~:.hen Sullivan comes down, he
"11
1 . i. t " You ask John when he comes
~~vm ~~ t a~~ me~nt or rlha t I think he meant '
I have some question vlhe:e . ~~elng~~e t~~n~~;ct
thority t o put t~~\prr~~
t think they had
and Patterson sal
e 1 ·ust putting it in.
the autho r ity, they y,e re J
ller General, as I
Tlw t is what the Camp t ro
l d do They came
.
a
.
t
aid
they
under stan 1 , s.
d I cou
told cox• he couldn't
to Cox on t he thmg an
General 1"ii th them
go ove r to the Comptroller I didn' t believe
and they ,,ent over' be~~us~o have anythin;; to
in it and didn' t ,-,.an~ ~ 0
do ui th it , c.nd he dldn t £ '
. toni ght and ask him
Talk to John about 1 t · understood him·
a b ou t 1. t • I ma"J have mls
283
- 5B1;1t I feel very pleased,
b1 t helps ,
I think a little
Foley :
Sure . Jones felt a littl .
than last time rre talked ~ 0bhl~llllbetter
today
.
H.JJ. Jr:
\,~n,,,he has had a"little vacation .
Klotz:
Aren't you catty?
H.JJ. Jr:
I am just .. ashin~;tonian , that 1 s all.
hls
.r•.r .
Secretary complex with him.
He has
e?t .this idea . If that is true , \"/hat
1s the d1fference betVIeen l ettinc- them have
tanks out of Chrysler and lettin~ them have
guns out of ·;:atervliet?
o
~ just
Foley:
'..no operates '.'.atervliet arsenal?
H.:l. Jr:
Amy.
Foley:
Youn;; :
That is the differ ence . You can' t do that here .
That is using your orm facilities to ai d a
belli.,.erent .
I just found out about this Springfield rifle
~lant the other day from one of the people
1n Ordnance over there. They have got a
complete Sprin£field rif le plant .th~t can
build a thousand rifles a day, sl thng out
there in grease .
H.11. Jr:
In where?
Young :
In r;rease , g- r - e- a- s- e.
H.:.:. Jr:
Bell:
I \'ras goinr: to say, if anybody is goinf; out
to :t.:acedonia -at . ' t ready to produce a thousand
lSn
It ,mUld take a year •
But th
rifles a day now.
'
- 6 -
Young:
H.H. Jr:
But that is Government m-med and operated.
Young:
Yes .
H . !~ . Jr:
So we are out of luck there.
Young:
Hot necessarily. If you can persuade them
to build nore Springfields and release more
Enfields . •••
n.:.;, Jr:
But you can't take a Government plant, G?vernment ovmed, and release guns to the Engllsh,
is that ri t;ht?
Foley :
H.M. Jr :
Bell :
Foley:
H,\'. Jr:
Youn'"':
(
That i s the naxit:.um r 0 d .
when they closed dow~ ~Cll~hn they reached
plant i s there i dl • u
e complete
I asked him this n~~nr!~dhto operate. So
sene Drinciple \7 uldn ' e er or not the
said, • "".Jell, J.iar~hall ~oi~ply ~o that. He
because of t he difficulty i~e Jn~erday that
and his perturbation about legtte. lng Garands
~field. s' they thou;;ht
lng go of the
...
they would start l'!18.nufactuung some moPe Springfields , H
t~ere is a question as to whethe~ or ~~~v~~·
w1ll take all the capacity of that plant .
That is aiding a belligerent with your own
f acilities.
"Button, button, who ' s got the button? "
How about l easing a corner of the building?
That miGht be all right .
hi
11 settled?
Have you .;ot the Snedish t nr; a
,.. had lon" talk on it this
No, not yet . 1•e
. a
: over from State,
morning . Hugh C~~sh~~hen 1 taE<ed to
\tho was ther~ las U.:g
in charge of the
Berl e about 1t. ~e 15 ,.1 talked it all the
Scandinavian sectlon. ' e
- 7way through and Cox ~~a
~ection . After oin' s als? th~re from Ed' s
~t mi -;ht be bett~r if ~h:r 1 \ / t seemed that
ahead, rather than if 11 man acturer \7ent
the Sv;edish !Ji.nister whiwhn~ a:ad and told
the authority to do,' as Icun~e ven' ~ '"Ot
go ahead a:td cancel his contr=~~tand l t , to
vle.lk up to him and say we cancel!a th: can' t
tracts , because he still has the stuff,con-
H.:.I. Jr:
Young:
You want the manufacturer to do it?
Even thou9:h he can' t get it out of the country.
l!0\'1 --
<~hat is that gane you play where everybody
holds hands and they have a bean baa and you
run around and find who has got it?"'
Young:
This is perfectly simple . You just light a
bonfire unde r the uanufacturer instead of
under the Swedes . He goes to the Swedes and
asks theu to cancel the contract and they
will probably say no , because they have got
to keep their noses clean. \'.hereupon, he
tells them he will cancel it anyVIay and he
will c-i ve them their money back next w-eek
and then all the Swedes can do is sue for
damaa es . The Canadians will guarantee the
man~acturer damages if it is a reasonable
delivery date .
H.JJ. Jr:
\1hat is the next moYe?
Youn~:
. t'
for a call f rom cUIII!lins now.
.
I am \Jal 1ng
He was checkin;; back vn th Berle .
H.1I. Jr:
Everybody happy?
Thank you.
RE BRITISH PURCHASIHG PROGRAM
September 4 1940
4:15 p.m. '
Present:
l.:Z. . Purvis
H .~. Jr:
I don ' t know who gave yo ,
.
tion, but I have been s~d~?ur t ~de i nfor:naEngl and .
Ylng 1des. Dover,
Purvis :
Y?u would go r ight to the base of this t h '
S1x, seven and ei ght , is it?
l ng.
H.M. Jr :
This is six, seven and eight and this is th
nu:nber of feet . It is 19 and t hen it goes e
dorm to 18 . You see, the crest is on the
fifth .
Purvis:
That is today or t omorrow.
H.:.!.Jr:
That is tomorrow. I wanted to point out that
tne crest wi l l pass on the fifth and then it
goes steadily dovm and it will COile back up
aeain, but it doesn 1 t COile Up as high again,
you see , on the 18th. The all time high is
on the f ifth , p .::a. , so it woul d be a ni ght
landing .
Purvis :
H.L:. Jr :
Purvis:
..:r .
Ballantyne
hlr . Young
So it nas really the t hird, fourth and fifth?
Anil. i t comes up to a hie;h agai n, but it onl y
reaches 18 . 5.
And i n the meantime, the weat her gets worse .
H.ll. Jr :
Yes
I have the weathe r maps . It g~~s f'fth
ter; ibly nor se . But the hi gh is on e l
•
Purvis :
That is fine . Of cour se, I V/ouldn ' t know that
you had the dop e.
H.~i. Jr :
Purvis :
I have nothi ng t o do today.
t for the AdministraI keep ha~i~g more rets~~c5 fin >er t o the point
1
tion ' s ab1l1ty to pu
287
- 2 of thing s . I
for
a sail o~f
" c~n
understand
havlng 1t
o around
Uartha
' s yo
lneyard or somethin
But I \"Jas Joust cu
g.
in eye
- l es of 10 days
rlous~ You no to1ce it goes
but not as hicrh Th h~ lt comes back up
night .
o '
e lgh point is tomor~ow
0
H•.!!. Jr :
0
0
Purvis :
I think I am ri c:ooht in
you get the particulariayyhl~ghthat
once
1g waters
. a month
H,l.~ . Jr:
But it doesn't come as hi h
take it home and look at Yt?agaln, \'/ant to
Purvis :
I uould like to .
H . ~ . Jr:
All right .
Purvis:
I will send a cable to Hitler .
H.M. Jr :
You bad better wait until the 6th
not know it.
'
Purvis:
It may be tomorrow morning.
H.M.Jr:
'.. e had a very interesting luncheon.
Purvis :
Good .
And I will be frank , as usual. I mean, t he
first thing v1as, we spent the first time around
trying to get them to agree that there shoul d
be sort of a clearing committee where they
would all have one kind of contract . They
couldn ' t see that . It would slow thin~s up
and so forth and so on . But we did get them
to agree that before they to l d the manufacturer
and gave their interpretation of the tax lalV,
they y;ould ask us first , because they woul:l be
1;iving the wrong information. Then I got
around to your business of how could you place
orders here without putting up any money in
H.M. Jr :
0
0
He mir;ht
advance and I asked Ur st ·
son, could you have th; ~son anll. ~:r. Pattertanks of one shift
bpro. uct of Chrysler
using that as a11 e~:l e flve. tanks a day,
could you do others th e, and lf you coul d
c,omr:U t themselves but ~ ~~~, way • . They wocldn' t
I::r • Patterson said at fir t ~i Shmson and
no reason v1hy you couldn, ~ duih they saw
you see , A Government a an
l earned this,
Government ormed and ope~s~n~l, say '.Vatervliet,
that product, but their o~f~~d~~u c~n ~ t ~ve
that_ Ch~ysler, .who has be~n given g~~~~:e~~
monel, lS a pnvate contractor that if h
wants to , after bavin:; made th~ aareement ewith
the Government, sell part of this~product from
the f~ctory, they see no leaal objection and
that 1s th~ position llr . Foley holds .
'
0
l.:r . Patterson is coming back at 11:00 o' clock
tomorrow morning to see me about it . :!r . Stim~on - I explained to him why I wanted to do
1t, the full significance of it . He said, "Of
C?urse, . I am in ,~omplete accord with the princlples 1nvolved. He would give you the maximum use of your money. ~uch to my amazement,
Jones repeated everything I said . He said,
"Do I understand what you said?" repeating word
for word. Whereupon, Jones said, ''..ell, tnis
is the best suggestion that has been made yet . "
]
Uo'l1, of course it is obvious v1hy Jones likes it ,
because he thinks it is goin~ to Get the heat
off him. Nevertheless, he s~ys he likes it
and it is the best suggestion that has been
made yet and he is keenly interested.
Now, I don't r:ant to !'aise your hopes . You
have been around i.ashington lon:; enough to
know , see .
Purvis :
H.M. Jr:
Q}.ti te .
I am
sim~ly
reporting, I think fairly accurately,
Phil, what happened.
"'
289
- 4 Young :
Yes , sir .
B.Lf. Jr :
Jones ~lso ~rorused me ~t my request that he
Y1ould L"X:ed1ately look mto this Continental
situation . The thing that bothers Jones both
on the Continental and on Chrysler, is that
the predominance of the orders in each case
are for you. You see , if it was reversed and
the Ar'Ifly took two - thirds and you took one-third,
it woul d be better . You have heard him say
thllt .
Purvis :
Yes , I have .
R.I.:. Jr :
I co.n' t explain it, but that is the 11ay he
feels .
Purvis :
I a:;ree .
H... Jr :
There is definitely no basis for . it ex~el\t:t
that is the v.ay he feels and he 1s enh t e
r
feel that Vlay • Jones was in a much better hllllo
today' \:asn ' t he?
Youn;; :
Yes, sir .
H.JL. Jr :
Didn't you feel that way?
Young:
Oh, very definitel y.
•
I don' t knovl whe. t has
So much for that . l.ov:, d01·no- this have I in
been hanpening . By myb s0 hats ~n machine
any way" slov:e~ up the? ras
guns or a nythln'"'" else.
H.U. Jr :
Oh, no .
Purvis :
l
Young:
. . . ting for some thin~.., ouite
The !!Ulchine gun lS \lal
different .
see the picture,
th·n~ as I
That
The machine bun ~~~ tool pro~ram.
is part of the mac
290
- 5 is what you ge t back to .
r
Purvis :
That is tile point .
Youn"' :
The machine tool program 1.
itself .
s somethin~ all by
R . l~ . Jr :
·.,ell, let ' s wait until ll ·OO , 1
and see what hapnens on th.e tho. c ockb tomorrow
1 n~ ,
· f th \
D
•
ecause
1
e ;ar ep~rtment Vfould say tomorrow that
yo~ can have . flve tanks a day from Chrysler
I would cons1der that a major step forward '
v10uldn ' t you?
'
Pur vis:
Oh, I think. that is right, but now there i s
on~y one tn1ng that would wor ry me . It is
t:1s :
e v;ant, if possible I take it to
avoid any situation 11hereby' the number ' of
an~' ~i ven neapon that is produced is l i.mi ted
by the --
H..'. Jr :
They rroul d then have to go ahead, you see, and
nake another arrangement - a similar arrangement in another factory on an eight - hour day
and then Jones kept saying, "The thin;; I like
about it is this eight- hour day idea, that the
AMlly makes the arrangement for eight hours
and the Cn<"lish can take the other 16 hour s
u
II
if they want to .
Purvis :
It s i ves them a r eserve capacity in a very
sensible form .
R.t:. Jr :
'Ihere no:t ' t be a bottleneck and rre will have
just as much production.
Purvis :
Ri,.ht
The onl" - on quantity, on theteight. •
· "· t d esn' t measure up o v;ar
hour day bas1s , 1 °
th r end Then 1·;e
needs looked ~t from ~~~1 t~10n!l ,7ay ' of taking
have cot to flnd e.n a
b'l t .
You can e. l r.a;,rs go to Jones . But let ' s see .
H.l'. Jr :
291
.: 6 -
Purvis:
You can take all th t
a is possible th'1s way,
Do you see any hope of e.da ti ~
.
to t'le airplane situati onl nc, that ldea
n.• , Jr:
!ez ,, I~ saiC.
to t!len, for instance, no\'1 - did
ne:--r a r:port about the meetin th'
ln:;? :las Fauey told you?
g ls morn-
?OU
Purvis :
H.1', Jr:
Faire~·
told me , yes .
I. talked here
- , YOU
know - I talked - what?
F1n~ll~·, someboa.y said to Fairey - Fairey kept
say1ng - -
Purvis:
Oh, then ne haven ' t heard a report .
H.t:. Jr:
Finally, somebody said to Fairey, ".• ell, you
are Pot do ing us a favor, you kno11, .. e are
trying to arrange this f or you. "
Purvis:
But you don 't --
H.!.:, Jr :
Right'?
Young:
Yes .
H.l:. Jr:
He sort of sat back as though som~body >;ere
t ryin(" to put something over on him.
Purvis :
I shoul d have come.
H.1~. Jr:
You should have .
Purvis:
I r;as just between two fires .
.
h'
"You know, we
Finally some body sa1d ~ 0 flll,
"
'
d
ethln"
or
you.
are tryin(l' to o som
<>
Youn<" :
Knudsen and llead.
H.r . Jr :
d f bubbling over a
d
Yes • I mean, ins t ea ~ I do be is so reserve
little bit like you an
'
- 7and afraid they are utt.
on him. The Army an~ N lng sol:lething over
They have seen the ligh~V'J ~e together .
tha. t this is smart and t-'
ey ~ve agreed
first . J.nd then th
·?1 are golng to do it
both did the thin"' emayys~ d.vJell nov:, if they
. reaseo•the oe \/e could get c t'
lr .lght to lnc
combi d
d . ur lssboth.
ne pro uchon for
Purvis:
You know I --
Ballantyne : I thii_lk,. sir, if you will permit me, \'lhen he
VIas s~ thng here, he r;as slow in getting _
erasp1ng the point, and I know, I am pretty
~urc , the phras~ th~t gave that im~ression ,
He leaned back 1n his chair and sa1d "Now
uha t are \.e ge tting out of this?" I' think' he
had it in his oind, but he was tryinr to see
just i.ha t this would oean to us, he was slor.,
H.1.:, Jr:
':.b.y can 't a man do his multiplication and
add: tion before he comes in this room? He
didn't even !mo.-; hov1 many Curtiss P-40' s they
had on order .
Ballantyne : No , I lmoH that is true .
H . 1~ . Jr:
And he had to a.o his addition there and every-
holly sat around v1hile he naited to add up how
many planes . You uere here .
Eallantync : Yes, that is quite right , sir . I was very
disturbed particularly r:hen you had to. t~ll
hi.n how ~ny empty airframes \'le had, whic
you did at one pl ace .
d that he come posted with
I particularly aske.
I k ow where I am now.
Purvis :
all of the informatlon.
n
h
, brain is slow,
I don ' t 1..-norr whethe~ t e
~ very cold
l! .~ . Jr:
0
but there are certaln typ ittle Scotch or a .
En·~lisbnen and v:e need a 1 d little enthuslasm
little Irish around here an a
:n
293
- 8 an<l a little l aughter and not . t
heavy l oc;-er.
qu1 e so much
Purvis:
By the t ime he had di<'ested it he had b
·
d a1. thoush
<>
•
ecome
qu1· t e conVln?e.,
I must
admit ,,hen
he, VIa~ r.escrl bll;tg ~t to ~e , he couldn' t see
anyth1n ~ . v;rong m 1 t, wh1ch shoul d have given
me the b p . That should have given me the
tip, but I didn' t realize what had happened.
H.1£. Jr:
His r1hol e attitude v;as , "'.lell is somebod"
puttin~ "Ome t hi ng over on me?'1 Don 't letJ
hir.: co on up t o "'uffalo alone . It is going
to be settled in Buffal o J.:onday afternoon.
Let !."orris '.iilson go with him. It is important
enou.-h . It may oean five or six hundred planes,
thre~ to six months sooner, and which is very
important .
Purvis:
Yes .
H.t.:. Jr:
But I mean - cor r ect me, please, if I am wrong.
Ballantyne : No s ir, I quite agree with you,
H.ll . Jr:
Pl ease correct me .
Ballantyne : Oh no • I wa s very bothered . Sitting in a corner over h er e - .
efully after I
I bad tal ked to ~lm veri[ car !low the desiderPurvis :
tal ked to you t hls mornm~. ott~n in the air
atum i s , can more planes .~tt which he agreed.
dur inr; t he early months, \ll
d sayinr , •~;lell ,
But h7 ha~ every~odi[ ar~:t for the Englisfr•
this lS fme ,. thl~ lS r~ etting somevihere .
this i s one tlme ,,e. a angenthusiast .
Nor;, l~orri s \:ilson lS
He ci ves out, yes .
2S4
- 9 -
•
H.!.!. Jr :
He bubbl es over and f
him be in Buffaio becauor hetha~en •s sake' l et
. and b e1ng
.
.
1n
so terrificse11 ls thing
. . of corung
v;ent all through it with\· Y ~usp1c1ous - I
see , I expl ained t o the A llll :~ay and you
The;t saw it and they grab:~ Vf t ~ \;ant~d.
take it . The Army i s takin ~ ' ihey Vllll
woul d have taken it if I ha~~ ~ · They nev~r
first fo r you .
suggested 1 t
Pur vis :
No , qui te .
H.l'. Jr :
They arc doing just what I suggested for you.
Purvis :
I ime~ately c?ngratul ated him on having more
pl anes 1~ the au • . It seemed so sensi bl e, when
I heard 1t, but I d1dn' t r ealize there woul d
be any reac t ion of this kind.
H.LJr :
I don 1 t '\.ant it t o go back.
Purvis :
Oh no, but i t i s just your point of viev;,
H . ~i . Jr :
But you have all these people si t ting around
here --
Purvi s :
And you v;ant a warmth, I qui te agree .
H.r . J r :
't)h thi s is fine this i s gr eat and my peopl e
wi h be s o happy: 11 and so forth and so on.
Purvis :
Yes , a litt l e --
H.l', Jr :
Purvis :
i ttle line . You don ' t mind my beinthg r:anksm,
Al
.
ll b
ding en usla
because you \'llll r ea Y e nee
this time .
The whol e thing gets pushed -Of course ;-re do.
Ylotz:
A little
H.t . Jr :
11
oomph
11
•
295
- 10 No·;, , what else - oh
t
transports , I coul~ ,otn hese six Consolidated
Purvis:
Whi
. Sp
. ere d t o me was thatanswer
th it
. • '"'·
.. ua t they
p1c1ous that the Im eri 1 ?Y i•ere very susfreedom to go into ~omp:t· ~~rway~ really v1 ant
ways and I don 't know wha~ lthon 1'11 th ou: aire answer 1s .
Talking with Fairey after that I th· nk
feel~ very definitely that it ;hould \e he
poss~ble fo r us to meet any fears that PanAmert~can hthastand perhaps make practical sugthem • Othe-.
hE;CS 1ons
.
'a would suit
.
nllse,
e::e 1 s a v.ar necess1 ty which brings up soi:lethJ.ng y;here i'le must take a broad line .
l!ow, he. is a\\'are of the possibility and I v;as
\oarned l.n advance that apparently there has
been a . e;ood deal . of jockeyinr for places for
a cons1cterable tu:e between Pan-American and
Il:tperial Airoays . !lor., in anything that ne
do here , would you try, if it comes back to
you, to guide it, on the assumption, at least,
that we shall be able to get a broad outlook
taken in taking cere of anything of that kind
and then let me try it on that line . I believe
it can be done .
H.M. Jr:
You lmow the suggestion I made , The sug~estion
I made is that if Pan-American have these planes
ready to go I don ' t think it will cost you any
more noney to make a contract with them, per head,
to ferry these people across .
Purvis:
1.ould there be anything to prevent - that is one
way . That is quite a thought.
H.!J. Jr :
Don ' t overlook that .
Purvis:
of the LnGlish?
Still unaer the flag
ll •..!". Jr :
No, no, no , no .
2S4
- 9 H.l.I. Jr:
He. ..,bubbles
over l, and for h
. Buff
eaven 1 s sake 1 t
h. .u:. '-;)e ln
.
a o because this th. ~ ' e .
ln and be1nr; so terrifically
~n~ of coru.nr:
\,crt all throu"'h it "lit h hl'm ssuspdlClOUS - I
T
1 · o
'
un ay and "'OU
sec , • ex:;> a1ned t o the Army Ylhat I
J
The;r sar; l t and they grabbed it "'lhr.-ant?dl l•
icl: · t
mh A
·
'
ey Ill
. . ledl.h. "te,_ rm;r l~ takinr; it . They never
H?U
ave a ... en l. t lf I hadn • t su<"c-est d . t
fJ.rst for you .
oo
e 1
Purvis:
I:o , quite .
H.l'.Jr:
They arc doing just what I suggested for you.
Purvis:
I i:::ID.e~ately c?nr;ratulated him on having more
11lanc:: m the au . It seemed so sensible when
1 heard it, but I didn ' t r ealize there wo~ld
be any reaction of this kind .
li,J.:.Jr:
I don ' t r:ant it to go back .
Purvis:
Oh no, but it is just your point of view.
H.ui, Jr:
But you have all these people sitting around
here --
Purvis :
And you ..-:ant a ••armth, I quite agree .
H.l'. Jr:
'tlh t his is fine, this is great and my people
v:ill be so happy' n and so forth and so on .
Purvis:
Yes , a little -.
d , t · d my beina- frank,
A l i tile line ~ You l~n b m:;_~eding enthusiasm
because you Yll.ll rea Y e
this time .
The r.hole thing gets pushed -Of course \·:e do .
Ylotz:
A little
H.!.:. Jr:
Right .
Purvis :
H.l'. Jr :
11
oomph
11
•
295
- 10 Ho·.• , what else _ oh 0
transports , I caul~, t n these ~ix Consolidated
w~i~pered to tle was tha~n~her ~t . ·~·.nat they
p~c~ous that the 1m erial ?Y .,ere very susfreedom to ~ 0 into ~ompet·~~rway~ reallywant
ways and I don ' t know Vlha ~ lthon m th ou~ aire answer 1s ,
Purvis :
Talkin~
with Fairey after that I th'1
very definitely that it ;hould ~ ~e
poss~ble for us to meet any fears that PanAmer~can has and perhaps make practical su _
~"CSh?ns that v1ould suit them. Otherrri se g
he~e ~s a war necessity which brings up s~I:Le
thlnS \;here Tie must take a broad line .
feel~
Ilow, he. is aware of the possibility and I was
y;arned 1n advance that apparently there has
been a t:(OOd deal of jockeyinG for places for
a consioerable tine between Pan-American and
Inperial Airways . lio~o, in anything that ue
do here, \'!auld you try, if it coi;~e s back to
you, to guide it, on the assumption, at least,
that we shall be able to get a broad outlook
taken in tcldn;; cz.re of anything of that kind
and then let me try it on that line , I believe
it can be done .
H.M. Jr :
You know the suggestion I made . The suggesti on
I made is that if Pan-American have these planes
ready to go I don ' t think it will cost you any
more noney t o make a cont ract with them, per head,
to ferry these people across .
Purvis:
'.. ould there be anything to prevent - that is one
r.ay. That is quite a thought .
H.!!:. Jr:
Don ' t overlook that .
Purvis:
Still um:.er the flag of the LI!Glish?
H.l.I. Jr :
No, no, no, no .
2ss
- ll Purvis :
Under ~ . S. fla~?
fi ,::. J,.:
..'h~' no . If they are go in .. to r
thlng - l t came out that the
un t~us
use theze this \'linter for thy are go1~g to
tlm t ~'OU are talkin3 about • e very t hmro
Purvis:
Oh, to Ireland?
H .1~ · Jr:
Iilidon ' t know, I couldn ' t get 1° t Thlo 5 mn~
ot
~y are go1ng t o 1_1se them, If they are going
doom to ~ortugal, 1 t would be much easier for
you to plck up these people in Portugal. Supposm~ they sa1d - they asked how many you
v:anted? l:ead seemed to know all about it .
How nany do you v;ant? Now, if you could make
a contract on a rrholesale basis to transport
a hundred or a thousand men, 50 a neek, or
who. tever ~'OU r;an t , r:herever they are goine to
r;o - I don ' t knon, I am just thro11in& that out .
0
0
0
0
•
0
Purvis :
I ho.ve an idea \'le would be gettin;; those nen
dovm into territory Tihere they mi:;ht be captured but I:la"' I ask another thing, just as
a nur~ shot o~t of the dark? Do you think
there is any chance of establishirlb aU. S.
line to Irell:ond, a neutral coJ:J.pany, a steamship line, or other line?
H.1!. Jr:
'.•hy not?
Purvis :
t
It v1ould have to .be,
It is a neutra 1 cdoun ryb.bl y Conc-ressional action.
on thP- other han , pro a
b
H.l.I. Jr:
The President Vlouldn ' t do that.
Purvis :
Hot even to a neutral country?
H.l~ . Jr :
llo, he wo uldn
Purvis :
Then Pan-American
It just oc?urred to oled be simply perfect.
could run 1 t • It r:ou
't
•
He doesn ' t want that --
297
- 12 H.1i. Jr :
I have heo.rd hm on t hat t
Purvis :
oo often
?'.y. onl ? thou.;ht was O.USVIeri ~
•
obJeCtlon . But YJe can
..no ~an-Anerican 's
VJay •
. ansl,er lt some other
R.l.f. Jr :
Didn ' t ]ead s ay he
Purvis :
Yes .
Youn~ :
In that connect ion I h
h
cover~n,. that v
' . ave ~re a scheme
in by a~gentlem!~Yr:hn~\o~~~~er.!~a~ro~ght
nerly n1 th Pan-Ameri can, whom ~!cReyn~id or- t
over to see me .
s sen
~7ould
carry the ball on that?
iiell , turn it over t o J.:r . Purvis.
Young:
I have ;iven Fai r ey a copy of it ten days a-o
11asn ' t 1t?
o,
Ballantyne : Tho.t ron never turned up in our office .
Younr; :
He didn' t?
H .~.' . Jr :
.• ell an;p;;ay, that cives you a report and I am
a little bi t :nor e cheerful about the possibilities . They may t urn me dovm, but at least
I said I v1oul d have a yes or no for you withi n
211 hours . ..e couldn ' t do it any quicker t han
that.
Oh no
In fact I \7oul dn ' t \';ant it spoiled
•
' kl Y•
by ' C~Ovincit one , mi nute too qu1c
Purvi s :
Are you r;oinr; to be here tomorrow?
Purvis :
! had intended to , but I
wo~d reall~0 ~ery
11·ke to "'0
up and or&anlze
my
~ wor
P k•
o
·
t b1m
much
of production men under ·: eHf, l gedO\m tomorrow
in"' in I:e¥. Yor k, and I Wl 11 Y
or'"'any time .
298
- 13 H .~ . Jr:
Do it on the phone ,
Purvis :
I an so anxious to et "
.
so I can slou,...h o"f!;soMmJ forgthru;lzation ri"'ht
~
~
...e o
lS stuff . "'
H.11. Jr:
I can call you on the ho
.
you Hhat Patterson ha/tone tom;:;ht and tell
say.
Purvis :
And I can came down if it is at all necessary.
h.;.t. Jr:
J..nd you will have l:orris \.ilson at Buffalo?
Purvis:
I will .
:r .~~ . Jr:
Ann for heaven' s sake, let them have their
fi::;ures there .
Youn-:
·..nat about this stanuardization com.ittee 11hich
i.:r .
Stimson wrote about ancl wnich is getting
·.. aro.sr all the tin.e on aircraft, ,·,hich is
just the opening gun?
Purvis:
Eo.ker v;as there last week, r;as he not, talking
abont that? They hacl their first - -
H.H. Jr :
The r referred to Baker . They seemed to v:ant
hir.t tod'\y . 'J.'hey kept talking about him.
Purvis:
He is a technical head on the side .
H.1:. Jr :
\Jill he
Purvis :
I l'loull think he would be going.
H.'.:. Jr :
I \iould load that fairly heavy so that they
can make the decisions up there, you see .
Purvis:
Young:
'"'0
to Buffalo, also?
But is there anythin~ there t'Jat we are
slow on?
.
this letter caoe
Yes , I think so, because
t,hro~;;h from Secretary uti:nson and I <·av
1~ . ~allant~~ a copy in which he ask~d e
~hat the Brlhsh appoint two people who
. v~ the power to act, to take the res onsiblllty for standardizing, and he obvio~sl
expected an ansrrer .
y
Purvis :
Oh, there is no ansner to that?
Ballantyne: When you wer·e away, Phil, Major Smith from
the General Staff phoned Mrli. Jones and I
called back to him and said could vre vrork
out the two names dorm here this week and
Fairey has got that in hand. I expected
him to bring the names dO\m today .
Purvis:
I will follow that.
Youn:;:
I think sonething ought to be done about it .
Purvis:
I didn 't ~ow it . I suppose that
to the Air section. ·,ell no1. , on
week, the other thing that _we a~e
do is to get over, as I sa1d, Sli'
Leighton, and he will ?e here and
brin~ it right into th1s program.
H.':. Jr:
Right . And then 1~ . Stim~on said - I am
just repeatin~ what he sa1d, but - that
Lothian should come to see him about these
odds and ends, rrhich was a part of the contract.
Purvis:
Ah ha !
H.'f. Jr:
l
1 :;)
shoul d go
the next
tryin- to
11alter.
that w1ll
But I say he still should talk t? the Pr~~i
dent and I am repeating ,·rhat Stlmson sal •
' ldn ' t d anY harm to do both, but
It wou
. o t. ll L thian to cone and see
Sti.=lson sud to e ho
·a that 11as his
hio about it because e ~alll
- think if
I st1 say 1
respons1' b'l't
1 ~ y, Ibut, uld
want to talk to the
I nere Loth1an, r.o
300
- 15 President about it .
Purvis:
Exactly.
Young:
~ . Stimson told me on the telephone while
you were away that he hadn ' t seen anything
of the British and wanted them to come
around and see him and visit with him and
I explained that in the usual way - and he
said, "Oh, I knou all this business of going
through 1~ . ~orgenthau and so on, but that
r;as before you had a Secretary of .. ar . 11
Purvis :
I take it it is all right for ne to go to
him. I htwen 1 t done it , but I think under
those circumstances, I r.ould like to go
along on that .
H.!l. Jr :
He is a funny fellow. I suppose one has to
re~ember that he uas once Secretary of
State .
Purvis:
Yes .
H.:'. Jr :
You can ' t lose that foreign office taint .
Purvis:
That is true .
Klotz:
Definitely. I think once you have got it
you alvmys have it .
!!.M. Jr :
Once a Secretary of State, always a Secret ary
of State .
In that case, I think I had better--
I
t
Purvis :
H.U:. Jr:
I think you had better put on your cutal-.ay
\"/hen you go over there .
Purvis:
Yes, indeed. That will help .
·t day now •
, .ell , I think we rrill cal1 l a
H.l!. Jr:
Purvis:
lf.ay I mention one other thine? I think
you must have heard it?
H.::. Jr:
'.',bo did you say had the "oomph"?
Purvis:
\,ell, you remember that Hhen you sold us all
that very valuable equipment we had what
yo~ might ca~l a larg? prepo~dcrance of
Po1nt 30 cal1bre mach1ne ~s and rifles ,
·.,·e also - you t7ere able t~ secure for us
130 million out of stock of ammunition and
58 million 30- calibre amnunition to shoot
in them over tne remainder of the year .
\1e got the eight million, August was the
next ten million and until those factories
cone in, those things aren' t very useful
compared ni th what they should be .
H.:I.Jr:
I tell you, ,,hen you put ?n your cuta\'~ay .
and hit-h collar , you nentlon that to t:r . Shmson b~cause I have mentioned it to him so.
oft~n I ac afraid to nention it to him aga1n,
beins a very timid person.
All ri;;ht .
Jut I have mentioned it to him aGain and
again.
All right .
I can' t --
.
th p ident and the PresiI mentioned 1t to . e resb t · t " That was
dent said, "Tell Shmson a ou 1 •
Friday a week ago •
.t
lly Vias something that was,
Becau~ehlt s~yea coupled with the deal .
you m1;;
,
ld like to kind of concenI tolC. him. . I ~70 U .
thing and if I could
trate on thls flnanclng
do that --
- 17 Purvis:
Of course , that is of major importance and
also \7hr t_ see~s to_me t? be so terribly important, 1t t1es r1bht 1nto the inte-rntion
of the b··o :progr~s into one pro ram: in so
far as pozs1ble , 1n uhich your idea is perfect .
H.J'.Jr :
Another example is this thinr with Cur tiss.. ri:;ht . I mean, here you ar~ and the United
States Army, b?th sayin:; to Allison, "'::e bot h
Hant more Curhss P- 40 ' s and we bo th want
Allison C type," and you move together r.ith
the idea that by both doing it we cc.n increase
the production above five planes a day, nhi ch
is all they sa; they can do no\v of P-40 . :tboe·rer .. oes up there ought to h&ve the idea,
ho• ~y more planes can you make above the
five, you see .
Purvis:
Yes, exactly.
H.} . Jr:
If yon both move tor;ether, or else_ if ;·.e bot h
r!love to"'ether - I don ' t kno1. whom .1. represent
if He b~th move to-ether, he raay give you ten
a da .. and the·· said here this oornin:; th,t on
thisJF engine" that any - ~hat did th~y?saJ,
for six months , is that what they sa1d.
Youn::;:
Yes, it 1,ould be earl y spring.
Purvis:
After all, it is perfectly ridicul ous . ie
should go just as far ~~t·h·;eu~a~nyonf!~hchnd
just 0 s far as 11e can 111 o
1n.r-.
J
H .~
. Jr:
That is the whole thing .
'nd don ' t ~'or-et to tell tl.em that l".nuddCsen
•
b
t
another thousan
is norkin::; to £C you hat ou have on order
engines ave~ and ~b~~e ~u~"'c;tion is, another
nor:. That lS ':1ha
lSr a~~ above what you
c enr-1nes ave
.
,
·~
t .~·.•O ,s ~nd
.
'.' t? "'hat
is wuat He :;nl"'
•
have . 1~~ I r1gh · 1
Ju
Ballantyne: Yes .
H . ~ . Jr:
That is Vlh&t he said .
Purvis:
Fine .
H.:.:. Jr:
~nd I talked with Ev~ns today, of General
J.•otors, and they ar;a1n ran into some more
trouble . I got hirr. to describe to me over
the telephone the difference between the
F ~nd the C, ~nd b~fore they get that F
co1ng , there ls go1ng to be sone time el apse .
I am all for that . They have licked the C.
Let ' s stay r:ith it until v;e knori definitely
they have licked the F.
Let ce ask you another thins which occurred
to me . Thi s factory on Long Island, nhat
is it , Republic, \7hO r.anted those 40- odd
plt.nes?
For the S;;eC.ish.
Thnt is risht .
If they can turn out planes, is there any
capacity there thet you can pick up?
I think it has been done, but I don' t know.
I think - or if it isn ' t , it is purely because of an engine difficulty.
\~ 11,
i sn ' t it --
I can check on that .
\.ell, do it right nor/ . You can look over
shoulder.
I di d ~et clearan?e for you on the St . Louis
Aircraft Corporat1on.
my
~
Purvis :
That r;ill be one a day ,
Young:
~ure .
H.l', Jr :
How, you ~ee , they have no orders after that ,
You see, lt runs out and here is the P- 35
eight on order, that is all .
'
Purvis:
But then the Army takes up the equival ent .
H.J.:. Jr:
B';lt r.'ha t I am getting at, couldn ' t you maybe
g1ve theQ an order to continue throu-h the
sprine on the P- 35, give them ordersufor the
three months?
Purvis:
Yes .
H.::. Jr:
If there is an engine to go with it .
Purvis :
That will be the point .
I:.t.:. Jr:
This point here, you see, for January, February,
J.:arch, is blank .
Purvis :
Yes , I get you.
I just wondered. I don 't know if the pl ane is
any good, but couldn ' t you extend that for,
say three months?
Purvis :
Oh, yes , if there are any blanks
H.ll. Jr:
And here is a blank, you see, the 2-P-A pursuit for Sweden. I don ' t know r.ha~ the 2-P-A
is . They both stop in December .
Purvis :
One doesn ' t carry on at all .
li,l:. Jr :
Do you want to take a look at Consolidated?
Purvis:
If I could, yes , sir .
H.::. Jr :
t:ere is Curtiss-\'.right , ;,hich is the one?
Purvis :
It is. the PBY- 5 .
ours 1s --
•
That is 220.
ifou then,
H.:.:, Jr:
·:hat is the nUJ:J.ber of yours? Here is the
I1avy bomber, 28 --
Pllrvis :
This is it . Isn ' t it funny it is under another
dedt;nation? lfuy I just take t hose initials
dorm so I can check them? \1118.t is the 28?
H.J:.Jr :
You have got 149 on order .
Purvis:
..hich won 't be enough. The other is the 5-f.1!E .
That r10uldn ' t be near enough. It can ' t be
right, because I know \'le have a very substantial
order .
H•. :. Jr:
'! hat 'l"ill be 30 heavy bo:nbers .
Purvis:
I think that is the one . ','le are not quite up
to the 220 . Uy point is to ge t it up to the
220 .
H.:I. Jr :
And Phil, make a note of this , Holland has on
order 36 Uo . 28- 5-1!N Havy bombers •
Yount: :
They have got a bunch of planes on order.
H.U. Jr :
I Jmon.
Yount;:
H.:'. Jr:
They are tryinE; to place orders for about 500
more .
.
a one . All rirrht?
They have de 11vere
-
Purvis :
Yes .
H.H. Jr:
Can I give you anything else?
,
might I leave nith
If I stay arouna fort 1ongllttle thin"' which
yo~ just to glance a ' a
o
.Jil
Purvis:
r;as sent to ne
•
H.1'. Jr:
I \,aul d like to look at it.
Purvis:
And then I will :;et it back from you next
·.;eek.
H . l~ . Jr :
Yes .
Purvis:
It will shoTI you exactly ho\7 I stand. Thank
you very much.
H . J.~ . Jr:
·.. eL.. , I will phone you tonorroTI,
Purvis:
irank you very much. I am han~ing on this
one , because I think it is tied ri&ht in
t1i th the big program,
This goes to the house .
307
Seotember 4, 1S4o
2 : 32 o.m.
H. 1..Jr:
Hello .
Mr. Evans:
Hello.
H.I..Jr:
l'.r. Evans , this is l~orgenthau .
E:
Yes .
H.IL Jr:
l', r . Knudeen told me that it 1 s going to be
oui te dif ficult for you to come tomorrow and
we had a meeting here this morning with '
everybody concerned and I got wha t I wan t ed
in the way of information.
E:
Oh, good.
H. ! .Jr:
And kr . Knudsen and General Arnold and Mr. Fair ey
of the English Purchasing ~iasion a r e all going
to go t o Buffalo J~oncay and depending unon how
many extra P-40's they can make will denend
U'Oon how many more C ene;inea.
E:
I see .
H.I'.. Jr :
But I don ' t t hink I ' m telling any tales out or
school when I tell you that the Army deci ded
t oday that they ' re going to order mor e C
engines .
E:
Tha t they are going to order more C engines .
H. B.Jr:
Yeah and, I take it, poatpo~~~d~1very on the
F 1 s you 5 ee and the English will do the1 same
up t o the amount - - up to 1, 0.)0 mor e C a depending uoon how many the Army will 0. K. and
depending unon how many frames they can get
from Curti ss .
E:
The rate at which they can get f r ames .
H. I 1 .Jr:
,'/hat 1 s that?
E:
little on the rete a t which
because it ' s a matter or
It will depend a
t hey can g et frames
ti ~e against rate .
- 2 -
H.l .Jr:
E:
·. :en , that's ri ght, I
the English wan t is meanth'eayfter all wha t
that
can get 100
? 1 anes say in three months With C engines
as again~t oossibly having to wait fo r the
F. They re go ing to take as many as they can .
Uh-huh.
H.H . Jr:
So know7ng how busy you are, that bo ils down
an hour s conversation , and eo I don 't want to
ask you to come to 'o'lash1ngton.
E:
'dell , t hat' e fine , l~r . Secretary.
H.H. J r :
Let me ask you just this -- I mean, isn't
that good news for you, because that takes
the pressure off you on t he F.
E:
Nell , except that - - it
on deliver y of F'e off,
~By .
On the other sid e
?roduc tion of C' s going
them in Lockheed, see"
H.. ~.Jr:
Oh.
E:
So in on e 1~ay it 1 e added ? res sure because
they ' ll want more C's -- (lauchs; - - on,the
other hand '"e can poss ibly build more C e
in Februar y and J.larch tha n we would be abl e to
E' s and F' s .
H. l1 .Jr:
I
E:
~/e ll
H. l .Jr :
'tlell , you haven ' t okayed the F yet .
does take the preesure
it ' s good news in that
we're keepi ng a full
based on the use of
see .
.. . •.
!1: :
H. I' . Jr:
E:
l
\ I
th
rincipal difference
Do I understand-- is · et~e F has the gear s --between the F and C t~t gear t o the oropeller,
the oower flows throug a
is tha t it?
l'r Secretary,
5
.~ell , it does in bot~ c~ e~h~
;eduction gear is
but in the c11se of dt·r the case of the F 1t'e
an internal gear an
n
an external gear.
H.•.. Jr:
E:
Oh, I see.
Then the next difference is thet the extensory
drive in the c ie taken orr the front end -the same end that the oropeller oower is
taken off - - which means that the total oower
of the engine flows through the reduction
gear .
H.lCJr:
I see.
E:
And in the caee of these altitude engines
the amount of power required for the supe r charger and other accessory drives is a very
considerable po rtion of the total oower.
H. l'' .Jr :
·.~ha t
E:
The power for the super-charger and accessories
reaches as high as 160 horse ~ower. And now
when you go to the F, that power for the
accessory drives ie taken off the opposite
end of the crank and does not have to flow
through t he reduction gear.
H.lLJr:
Oh.
E:
And t ha t ' s the thing that permits the F and
E to be rated higher than the C.
ormo~1 te
I see , because they take it off/ends, is that
it. I mean, the extra power for the ... ..
H.M . Jr:
E:
H . l~.
power?
I
didn 1 t ge t that.
Yeah, the super-charger.
Jr:
. .... is taken from the opposite end from the
propeller. Is that it?
E:
That's right .
H. M.Jr:
I ge t you .
E:
That ' s right . That ' s the simol e differ ence
t hat oerm1ts a higher rating of theE and F
than of the C.
H. I .Jr:
'.~' ell, anyway , they 1 re all going to go to
Buffalo Monday and then I imagi~e you 1 lli~~a r
from them di r ect and if you don t mind,
keep this to yourself until you do hear from
them.
3:0
- 4 -
II
E:
Right-o.
H.B . Jr :
But you have been so cooperative with me
that I wanted to let you know Just what
hapoened.
E:
"~• ell,
H.M.Jr:
And as I understood it, you're laid out for
2 , 000 C' s anyway, aren't you?
E:
For 2 , 000 C' s and we ' re orepared to add
month to month further quantities.
H.I1•• Jr:
And how much -- well, aren't you ~radually
aporoaching that time that if you were going
to have to make more C' e you'd have to make
up your mind.
E:
About the 15th of this month we'll decide.
'1/e '11 actually be against the February
oroduction .
H.!·! .Jr:
Well, then if they make uo their mind by
they're talking about making uo their mind
next Tuesday • . . . .
E:
That's time enough.
H.l~ . Jr:
That just is time enough, isn't it?
E:
Yeah.
H.l1.Jr:
Well , that ' s oerfect isn ' t it?
thank you very much.
E:
Yeah, that ' s about O. K.
H.H.Jr:
How ' re you coming otherwise?
E:
Well, we've had a bad couple of days. ~ie ran
our test stands right through Labor Day -worked 24 hours Labor Day -- but even eo we ' ve
had a lot of bad penalty runs and we're not
ge tting many engines off, but I hope it ' ll be
better by tomorrow.
H.l' . Jr:
0 . K.
E:
~.,
-"ll right .
. Jr:
E:
Then I'll see you eome Ot her ti me.
Ye~ .
Tr~nk you very much for cal l i ng ,
l!r. Se cre~ar;r .
:u .. Jr:
Good - bye .
E:
(;ood- b;re .