The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Rough Estimates of
Treasury Working :Balance
for 4 months ending November JOth
without any new cash financing '
August J l ••• •••• ••• • •••• • •• •• • •. . .• . • •.• . ••..•.• . • • ••
September JO ••••••••• , •• , • • • • . •• • • •••• •. .••••• •• •••• ,
October Jl ••• • . ••• • •• •• ••• • •••• •••• ••• • •• • .•••.•• • •••
November JO • ••••••••.•• , •••• •• •••• . .. . ....•• ••. .. . •.•
$ 1,644M
1,500
1,000
700
Contemplated financi ng operati ons within
period ending December Jlet
and probable dates of each operation
Refunding of Dec. 15 note maturity (Sept.
R. F, C. Ca&h of fering
(Oct.
(Nov.
"
U. S. H, A. "
F. F . 14. C. "
(Nov.
Treasury
(Dec.
Possible refunding in December of
IUu-ch 15th mat uri ties:
15th)
15th)
lat)
15th)
15th)
:Sonde to be called ••••••..•.• $ 545
Notes ma turing • •••••••• • • • .• • _2II
:Beginning in January deficit will run at an
aTerage of about $6ooW a month.
September 6, 194o
$
737lol
500
200
100
1 ,000
1,222
rente~ber 1~ ,
1934
note in eYcrAnrc for ~turing
notes • . . • . • . . . . . . . . • .
2 ytar 1-1/2
(In ::~illions)
v 511;
4 )'car :.- 1/2.' note h cxcha.n~c for Fourth
.•..••.... . . ..
!.ibcrt.ra
l?-12 ycur 3-1/4' boni in exchanfc for
. •...........• . •
Libcrt;ra
Scpte::~ber 1~,
596
~curt~
1236
.cn-23 ;c..r :-3/4,b bon
3
fo::- ca.sh
20-23 year 2-J/4, bcn'o in ,.:hanee for
~tu::-ine
. . . . . •
note3
512
4€2
12-14 :rear 2-1/2,; bonds i n exchan(e for
mt11rin~
notes
5 :rear 1-1/S.' notoa for
ccsh
5 :rear 1-l/8% notes in exchance for
v.c.t·Jrine; notes
•
•..•..
l;
,
c 0 p y
BRITISH 00AsSY,
WASHIHGTON, D.c.
With the compliments of
Mr. R, J. Stopford.
Merle Cochran , Eeq.,
United St ates Treauury Dept. ,
Washington, D.c.
199
c 0 p
y
I am informed from London that the
Liverpool office of the Exportadora Peruana S.A.,
finding themselves unabl e to make remittances in
payment of debts due in Denmark, endeavoured to
procure a license to return to Lima the dollers
originally remitted from there for that purpose,
London have information vhich shows thd the
Peruvian company's intention was to remit the
dollers ao received direct to Denmark.
(Initieled) R. J .
!ritish Embassy,
\'lashint;ton, D. C.
Sept. 6th, l94o.
dm
s.
-€QIIPIBE!!i'E :r;,
G- 2/2657- 235
H. I.D . , ,.I. D.
Tentative Lessons
Bulletin No . 41
September 6, 1940
TENTATIVE LESSONS FP.Ofl THE RECENT
ACTIVE CAMPAIGN IN EUROPE
This document is being given an approved distribution
and no additional copies are available in the Lilitery Intelligence Division. Its reproduction in vrhole or in part
is subject to the provisions of l etter TAG , November 15,
1939 , AG 350. 05 (11- 1- 39) M- B-1.!, "Dissemination of r.tilitery
Information by the Mil itary Intelligence Division and Qy
Recipients of U, I.D. Information" .
The information contained in this series of bulletins
will be restricted to items from official sources which are
reasonably confirmed. The lessons necessarily are tentative
and are in no sense :na. t'tre stuilies .
FURTHER
01' BASIC TI1AI11Ii'IG H! THE
BRITISH ARMY
NOT~
SOURCES
sources ,
The information in this bulletin is from official American
Reports uere made early i n July, 1940.
CONTENTS
I.
EYEUITNESS REPORT ON HIGHLIGHTS OF ERITISH BASIC
TrtAU! ING PI:OGP.A!l.
II .
GEN:'lfiAL NOTE
m!
ll'FANTRY TRAilliNG OF TIARTI!.IE
CONSCRIPTS .
III .
DOUBLING TEE TER.'liTORIAL ARilY •
f'? '
W ,
- 1-
f r anklin D. Rooaevelt LibrarJ
201
C·r · ~ oJifl["
ll.
5200 . 9 (9/ 27/ 58)
96li¥IDEulntt--
PROGa!it. EYE\1ITNESS REPORT
m; HIGHLIGHTS
OF BRITISH BASIC TRAIN!l1G
An official ~merican military observer in Great Britain
cable~ the follow~ng information concerning the existing basic
It will
trainl.ng program l.n that country as of September 3 1940
be not~d that this program concentrates on prepari;g men ' to
fight l.n the shortest possible time . Recruit training centers
are an essential el ement of this program,
. According ~o the cable: "British training centers are
pr oducJ.ng fully traJ.ned and har<2ened replacements in 16 weeks men imm7diately capable of hard field service . * " * * * In
c~nnectJ.on with inCI.uction of National Guard , the following prinCl.ples m1wt apply if satisfactory combat results ar3 to be obtained
in ndnimum of time .
A. "Apply a rigid physical standard rejecting officers
and men not one hundred percent physically fit .
D. "Refuse induction married men and men holding important
positi ons in key industries ,
C. 11Zstablish trainin!; centers for all r.rms for handling
recruits neccss c.ry for r a ising t:atione.l G1mr d to r equired strength.
"Bri tish C:riven by desperate necessity are uorking at
high pressur e to turn out competent t rainee'. f ichti ng men and are
getti ng results which I 11oulc' not believe possi ble if I had not seen
them, Cooks , l:itchens and barre.clcs police and f a tigue details come
from civilians or Service Corps, :'..n nhich l'tomen a1·e largely used
to relea se men, 52 to 54 hours per wee': ar e put in on actual
training including a minimum o: four hours per weel: of night
operations . Nothing -weather, air raids , or holidays other than
Sunday - is allowed to interfere with treining , These peopl e
arc lll.lkinc a fighting army and there is no monlcey business about
it . "
II .
GENEI1AL NOTE ON INFA: 1TRY 1'RAI!1IJIG OF \/Al\'rDtE CONSCRIPTS.
1'he following information \Vas obta inec~ t hrough conversation
with two high British Army officials, both of who<'~ have recently
been attached to t raininc division of the lil.r Office.
,.
Tho off icers were e.slcod this question: "In view of recent
operations in Belzium and F;:ance, Clo you now consi~er it nece~s~ry
or desirable to change the requirement of 16 11eeks basic traJ.nl.ng
at trc.ining cente1·s for recruits in inf11ntr:r and no.chine gtUl units?"
~
- 2-
• rnnklin D.
3EGL
900 l
~.r:.
,.. .g (9/27/58)
203
As a mat~r of fact, thi s methoC: o< increasing the British
Army resulted ent~rely from a political C:ecision, made nithout advice f:om the general staff . Even the c.nnouncer::ent was r.lB.de without
the pno: _kn~r1ledgc of the Chief of Staff and Director General of
the Terr~tor~al Army, However, it was so ordered and the armv did
·~
'
the best it could,
In a recent conversation, responsible officers of the
trainins division of the 11ar Office, saic. it had been a tragic
The results were :
~istake .
A. _A_delay of months in the final training of t he 13
original civ~s ~ons, They had to provide for their duplicates
themselves for immec'iate active service ,
Pl'eparil13
before
D. After the duplicate ~ivis ions were finally cut loose
from t heir parent divisions, they, in turn, were unable to get
dm1n t o serious training for an unnecessarily lon~ time . There
we1·e insufficient numbers of their mm junior officers and ll , C, 0! s
trainee t o t he extent that they could train others ,
C, Neither original nor duplic~.te divisions hacl more
thAn half enou~h equipment for training; that which nas available
had been divid.x~. bettreen t!:leo ,
D. The L'lEm of t he C:u'>licata c:ivisions had received so
little basic inc~ividuel t rainbtg nhile nith their parent divisions
tha t the7 hacl to be started all over ,
E . Original c1ivisions 11ere hanc'iceppcd in their progress
almost equally vtith duplicate c'ivisions ,
The Britizh officers stated th~t a going organization should
not bo expecte<l to organize and train a ne11 organization, especially
in time of emergency, It will badly c1elay and handicap the trainine
of both .
It is a waste of time they added, to bring to~other men
without prior basic training, ine;:perienc;:ed N. C, O. ~s, ~d young,
newly appointed junior officers for tact1cal trainl.nS ~n newly
orr;anizer' unito . A combination of these three grcups ~s fatal
to succeosful training, and a combination of any tno of them is
almos'c as bac\ ,
Tactical organi~ation anC: training shoulC: n~t be attenpted
until f \tll basic traininc he.s ooen given unc'er exper~enced off~cers
anc'. li . C. O. • s, nert J. , C, O. •s have been c'evoloped, and Junior off~cers
have been tostod anc'. weeded out,
204
G-2/2657- 235
I.!.I.D., 17.D.
Tentative Le~sons
Bulletin No . 42
September 6, 1940.
TENTATIVE LESSOiiS FRO;.! THE Rr..CE!!T
ACTIVE CAMPAI3N IN EUROP~
UOTI CE
This doc~~ent is beir.~ given an appr oved distribut<on,
and no additional copies are availabl e in the ~~litary Intelli,;ence Division . Its reproduction in whole or in part
is subject to the pro•.·is:.ons of letter TAG, ll~venber 15,
1939, AG 350. 05 (11-1-39) !.ID!A, "Dissemination of L!ilitary
Information by the llilitary Intelligence Divisjon and b:•
Recipients of U. I. D. Information" .
The information contained in this ser ies of bulletins
will be restricted to itc:ns from official sources v:hich are
reasonably confirncd. 'i'r.e :!.es::ons nccessa.:-ily are tentative and arc in no sense rature studies .
SOIJRC:S
Information in this bulletin is based upon reports of
official Ar.lerican oLservers after a deMonstration by a battalion
of the Infantry School Regiment et Doberi tz tn January, 1940.
The regiment is used for the instruction ?f :.nfantry o!ficers ,
and the observers believed the demonstr at1on to be rel1able and
authentic .
CONTZNTS
I.
NARr.ATION
II.
DISCUSSION
III .
COJICLUSIONS
A sketch is attached.
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I
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,...
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.....
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n:O:lin D. Roosevelt Librar
1
.uk.
205
1 r
I.
l'A..'UlATIO!I
See sketch herewith .
An ene~ had established a defensive position around the
hill marked "E" on the sketch . The 2d Battalion of the Infantry
School Regiment, mal:in:; the princi!)al effort of the regiment was
given the mission of capturing the hill. T!1e 5th and 6th Co~nies
attacked abreast with the ?th Company in reserve. (Presence of reserve company was simulated,) The 6th Company, on the left, was
ordered to make the principal effort for the battalion . The 8th
Company, the battalion heavy weapons company, was in general support.
The operation was conducted in two phases . T:1e first phase
consisted of a fire demonstration >lith t:1e infantr~· supporting weapons
onl)! using service amnunition; the second phe.se was the infantry
attack, l'tith the supporting weapons firing practice ar.ununition. For
the first phase, tile observers were stationed at point 11X11 on the at,...
tached sketch; and for the second phase the party moved over to point
"Y" in order to observe the attack better . There were about four
inches of soft snow on the ground and the temperature was approximately 5° below zero Centigrade. The darl: colors of the uniforms and
the equipr.1ent mo.de it possiJle to observe details quite r:ell .
The German solcers lc.y ;>atiently in the snow in their initial oosi tions before anc:: dcrine the first phase of the demonstration.
Uany of them 1.ore no cloves to protect their hands . They l'lere exposed
to the weather 1·tith but little movereent for r.torc than an hour . This
apparently had no effect on their perfornance later .
The follo1·ting table i ndicates the fire power used to support
the battalion for the attack :
ORGANIZATION
Light Art 1y . Div . Art •;r.
150mm. How.
1 Plat . from
AMOUNT
TARGET
ASSIGNED
None (Presence
Objective
Proper
Direct Support
Knoll at
"F"
Gen 'l Support.
Under Control
Reg •t •l.
Com 1 d 1r .
entrenchr.tents along
Line: 111rll"
Direct Support.
AVAILABLE
SiJ~ula ted)
2 Guns
Reg •t •l. Heavy
Weapons Co .
?5mm. How.
2 Plats . f r om 4 Guns
Reg 1 t 1 l. Heavy
l.'eapons Co.
11 n D· .Roogsvel t LibrarJ
206
:GUI
~;.oo . ~
ORGAIIIZATIOE
(continued)
81.4mm.
Trench
Mortars-
t.uoum.·
AViUf:ABLE
1 Plat . of 3
Sections from
Bn . Heavy
Weapons Co .
6 :.Iortars
7.9mm . Heavy 3 Plats. f r om 12 Guns
Machine Gun Bn . Heavy
Weapons Co .
TARGET
ASSIGIIED
CO!lTROL
Zntrench1>1ents along
Line : "I-K"
Direct Su~port
Enemy ' s
For..,ard
Position.
Direct Support
? . 9mm. Li ght 4 in Each
!lachine Guns Ri fle Plat.
16 Guns used.
8 :Jore Availabl e in Res .
Plat. of Assault Co•s.
As assigned Plat.
Com •d •r.
by Plat.
Com•d•r.
50 nun. Light 1 in Each
Rifle Plat .
llortars
6 L!ortars
As Assigned Plat .
by Plat . and Com'd'r .
Co . Coc •d •rs.
Ap:>roxir:late positions of cannon are indicated on sketch. The
81. 4r.an. mortars were located in '-ooc!s in vicinity of letter "B" and on
reverse slope o:: hill "A" . The 12 heavy [;ach ine guns llere in position
on t he rear part o:: t he ::lat to:> of the '1ill at "A" for direct fire and
in the ,.,oods near "D" for indirect fire . T'te lit;ht r.1achine guns were
all'rays ,·:ell f ornard on the firint line . Only the 16 in the four a ssault
platoons wer~ used. The l izht r.tortars were uith each platoon .
In the tact.ical situation that v1as presented, the battalion
had advanced to the hill at "A", and had paused briefly. The second
phase of the demonstrati on illustrated the continuation of the attack
in order to capture the objective after a reorganization had been
completed .
The two assault co!:!panies were or ganized with two platoons
forward and abreast llith the thi rd platoon in reserve.
The actions of the 6th Company·vall be described i n detail .
The operations a!' the 5th Company were identical.
At a colored smoke signal, all weapons opened f~re a~
assigned objectives . This fire was continued for about f1ve nu.nutes
when elements of tvro and four men each in the left (6th) company
Franklin D. Rooaevel t LibrarJ
~ [I
-3-
r.,.,)
Uu .. Lih1. 5200 . 9 (9/27/61)
r rantlin D. Roosevelt LibrarJ
£t :~l!"ni,.IP)
or
'
r~ . 9
20?
(9/ 27/58)
advanced by rushes in the same ~nner as taught in our ovm service .
The four light machine guns in each assault platoon were advanced
consecutively after the new firing line had been established and were
all·:ays placed ,·:ell forward. The advance 1·:as quite rapid. Some men
and at least one of the four light machine guns in each platoon were
in motion at all ti~es . The firing line advanced to rdthin fifty
meters of the first objective, where the light machine guns held their
position and smothered the objective with fire. The riflemen advanced
by short rushes in twos to vdthin about 25 yards of the objective. At
a given command and signal, the light nachine guns ceased fire, the
riflemen quickly arose and threw hand grenades onto t:1e objective, fell
flat on the ground until the hand grenades exploded, and then charged
the objective on the run with fixed bayonets. After a supposedly quick
capture, t he r iflemen, without any delay, formed a ner1 ~iring line , the
light machine guns came forward and the attack was resumed to capture
the next intermediate objective .
The r ecall was sounded when the 6th Conpany arrived at the
second line of objectives , along the line "G-!! 11 on the sketch .
Unoires •·1earil".g r:hite arnbands roved behind the firinz line
and inflicted penalties agai.''lst the attac!:in: force . !len were caused
to f all out of the operation as casualties. The penalties 11ere not
severe .
1~e operations of ooth assault ~latoons of the 6th C?mpany
nere identical in na ture . The Jd platoon in reserve follo1'1ed l.n
rushes at a distance of about 120 neters behind the assaul~ platoons .
The attack of the conpany was !l'.ade across flat, open terral.n .
The positions of the commanders of the assaul~ pla~oons were
ear of the firing line i n each case . Thel.r mal.n co~cern
ten yards ·
keep pushing the.light
seemed
uni cat e with the comas possible . The leader of t he 1 eserve p .
plat oon about ten yards where h~~~!~ :::l.;ra~~:ed usually about 80
.
pany conunander. The company co
meters behind the advanced elements .
rna~~;~~ng~~: f~n;~~~ta~fq~~~kly
to~~ ~o
t t the attack wer e given by smoke . The ap~r.
f a rectangular one- gallon pal.nt
.
Sl.gnals to s ar
atus was a smoke-pot about t;e sl.zei~ shot a column of easily recogcan . It was detonated b:( a ~~z7~to the air about 40 meters . This
it drifted away. Lavender,
d
nized colored smoke vertl.call. ~
column retained its color and e darg~ :~ ,.1as used to start the attack
green, and llhite colors. v:ere us~i;e o~ethe supportinc vreapons just
and white r1as used to ll.ft the
befor e the final assault .
~
- 4-
lrnnklin D. Roosevelt Librar
1
G..:G' "
Jlfl
,
208
The 6th Cor.tpany had advanced about 250 meters almost halfway to the objective, before the 5th Conpany started to' advance . The
5th. Cor.~pan:r se~med to mov~ much quicker than the 6th Conpany and both
arr~ved at the~r second l~ne of intermediate objectives at about the
same time. The personnel of the 5th Company were uniformly distributed
over their front and took no special advantage of the cover afforded by
the woods on the right flank of their zone of action.
The fire of the supporting weapons ,.,as spread over all the
objectives as they were assigned . l'lhen signals to lift fire wer e
given, the fire was shifted from the object being assaulted to the
next intermediate objective so that as the riflemen approached nearer
to their final objective, they had rnore and more of the combined fire
power of all of the supporting weapons . The shift in targets after
the signals were given was only a matter of seconds.
It was noticed that the light mortars assigned to the platoons (three in each rifle company, one to each platoon) stayed back
ea::-liest fire positions. It was explained that they
the
in one of
normall:r advance with their ?latoons and go into position directly
behind it but because the terrain was open and visibility was so
good, the~ remained behind in order to keep a continuous flow of
projectiles on the first objective.
Betueen phases, obser;ers n~rc civcn an O!Jportunit;r to
view at close ranee an e:X:1ibit of infanti:' ·.:ea.pons used ~ the deIt r.-as !JBI'ticularl~· noticeable that no anhtank
r.~onstration .
Yleapons v:~rc displa:;cd or used. (llote: The antitank cotnpany of
tv·elve J? nrn . ~;uns is under regimental control. cr-2)
II .
DISCUSSION
The purpose of the demonstration was to show the fire
power which is normally available and organically ass~gn~d ~0 .
support an infantry battalion in t he attack when the at a 1 ~on l.S
making the principal effort for the regiment .
The demonstration conducted as it was by trained tro~ps ,
was well done . The perforr.tance 'l"las especially no~eworthy initve~ew
t was qu
of the unpleasant weather condl.·t·l.O ns • The situatl.on
normal and standard r.~ethods were emplo:•ed throughou •
s in organization ,·:ere verified
l
.
the three platoons in each cor.>Some l..lllport~t c lange
. tead of only three, and the
during the demonstratl.on. ~ch of
pany now has four light machl.ne guns l.ns
•ra.nklin D. Rooaevelt LibrarJ
-5-
n Cl •. ~..o
D D DJh. 52oo.9 (9/27;sa>
Rooeevel t LibrarJ
rt:o
(. 5200 . 9 (9/ 27/68}
S@JW~!!TIAI, .
.
compan:r commander no l onger has t\"O h
under his control . The battalion ·h ea;r Mach~ne guns organically
7
eavy · eapons com!'Blly has three
platoons of four heaV'J machine
guns each instead of only two as
The
previously
t
purpose of these changes wa t
•
s o ge . ~re fire
power farther to the front and to 0 ·
It .. ~c~.wea))Ons of s~r.ular characteristics under one control
the lessons learned in the Pol'sh~Cs e ~eved that this is one of
~
ampa~gn .
.
The absence of a ll antit k .
nay indicate that antit nk- h ld aP weapons ~n the demonstration
s ou er vreapons are non bein~; used in
a
h . fl
~~~-p~~is~ c~npany. T~ese antitank neapons in the lo~:er units in
Ar~ are sa~d to have had tremendous effect again"t
German me cham. zed vehicles .
~
The outstandina feature of the demonstration was the
tremendous amount of fire po11er available to the l ovrer unit comz:nanders: In cases where the advance is so rapid that the support~ng artJ.ll~ry h~s. not had sufficient time to get into a new position
and :stabl~sh l1~son, or vmere it is necessary f or the artillery to
be d1verted to purely artillery ~issions, there is still sufficient
supporting fire available to the regimental and lo¥:er unit com.-:lailders
to accomplish their missions under normal conditions .
l';eapons of different character::.stics are so designed and
assigned as to cover effectively all the objectives ldth simultaneous fire, to give to each com.'!lander sorneth::.ng with which he can
influence the action after his unit has been co~tted, and still
not to detract from the mobilit;' of the units as a whole. Every
commander fron the regiment to the platoon usuall:r has both flat
and curved trajectory y;eapons under his control.
One of the nost difficult problems in the attack is that
of providing the very close coordination required bet,·:een the
infantry-artillery teams in the smaller units. It was observed that,
to a l arge extent, the necessit~· for this coordimtion in the German
Arm;: has been eliminated . The artillery fire 11as concentrated on the
finnl objective and the fire of the infantry supporting weapons provided the close su;:>port to assist the infantry in its advance.
These sunT)()rting 1·reapons were f 5.ring on objectives when the advanced
elenents · ~f the infantry rrere only 50 r.1eters distant . This nould
not be possible with light artiller; fire • . The distances i~volved
in this demonstration \ie::-e very short and nsual com;nunicat1on was
used quite effectively.
Incidentally it was noted that the fire of all ~he
supportinz weapons ,7as' quite accurate. .\djust:nent was ach1eved
209
afte- very fe11 rounds had Leen fired in each case . r:1e unbroken
Sltrf~ce of tho:! snm·.- indicated that the voea;>ons 11ere not adjusted
!)rior to t:,e demonstr ation .
One basic difference fror.t our tllct:.cs 1.as mted in the
action3 of the squad in the attack . The nain concern of the German
:.rrrr:r infantry squad in this de;:)()nstration 1 '1s to get the light
mach5.ne guns forrrard, to get the fire power advance~ . Tirls hel d
true until the s!:ir::U.shers r eac!1ed the assault ;>osition . In other
words , th~ advance 1:as executed by sman tea'1s , groups of r iflemen
buil t aro•mc! 1nachine guns . In our ser vice, ri th our "len eq•lipped
vd t:1 the Garand rifle, the fire pol'ler {;Oes forward individuall y a.'1d
autonaticall~· , and the necessit;• of the rifleman ' s being bound to a
fire po1.er weapon is elininated. non observation, it is believed
that that iz a distinct asset in our favor .
The gr~at i~~rtance o~ traininc ar.munition for su;>portir.;; 1·ea;•on:: 11~s c!enonstrated in th~s attacY. . Ti<e projectiles,
il.clud'nc !-.and :ren.:.de::, !1ad reduced cha!-ces, but the effect 1:as
quite reali::tlc ard t"Jc baJ~.:.st.:.c c>a.:actcrictics 1-:crc not chanced .
:'here '.l"s ver• little <lHfcrencc in t!'le sounc' or a;>pearance of the
e:"Olosic-n of +..he sc:-vlcc and rr:~ctice ammnition. It is quite eas:t
to' ur.dcrst;::.nd vm:· t!".e 'Jle::r.er::.e'1ce1 Gernan soldier ~ocs so 11ell
"men he is first cx,osed to ene~· ~ire; to all pr~c .ical r~~ses ,
he !'las alrecot!;• been t•n·lcr fire . ':':te results ~:hich are denved fron
the usc of ...ractic~ C.."'ll1"nition are beEeve~ •.o out.T.-eich the diso.dvantaee~ of'less sa''et:· in tr::.incn- an" 1T..Ll probablr. serve ac~lll_lllY
to save more livt:ls on tl.e bat\.le:ie:d. 'i'.•e ::.ncrease l.ll the in~tl.al
fightin.; efficie:1cr of t.h'! s?ldier .:.s ar;n.rent .
III.
cor:cwsror:s
A. Practice ru:munit ion s:1ould be 'Jsed in o:u3.
c.
arny •
Special snpportine wearons should be avail~bl~ ~o
all infantry unit co=ndcrs, dOl'm to and ~nc 'I ine the ::>latoon .
Our sy:;te:t o-7 u.ti fontly distriblltinc the fir~ ~w~r
lol -est lnfo.'ltr:· ele:'tent s e and J.:ovc.:~er t :! :'l the nethod
an d.' sc,tssed herein .
tcr th-m the
Cer::~an
P'ra."'kl n u. nO • ~ lt Libr&l'J
DECLAS
ED
DOD ns · ·r a '
£:!!£!BE' I~ D +.,~ I -
-7-
0
'::7;t-a>
"t-? 0
~
Sicnature• ~
-~ ...~·
212
<r-2/2657- 231
L!. I.D., W.D.
Special Bulletin llo . 14.
Sapte~ber
6, 1940
CAPTURED GERl!Ail REGULATIONS Ol1 RECOGIIITION
Al'ID CO!AMUNICATIOII DZTr,m; GROUJ/D AliD Am
This document is being given an approved distribution,
and no additional copies are availabl e in the J.:ilitar·r In
telligence Di vision. Its reproduction in whole or in part
is subject to the provi.sions of letter TAG, Ilovenber 15,
1939, AG 350. 05 (ll-l-J9) IJ-.!3-ll, "Dissemination of L!ilita.ry
Inforr.~ation b~- the l:iEtary Intellicence Division and by
Rcci:>ients of l~. I . D. Infornation11 •
SOUilCE
The Ger:;Jan docur.ents re:orinted here l'l!re captured by Allied
troops in !.Ia!', 1940. It is belieYec! that t!~e:r regulated the matter
of mutual rccoenition si<;nals bet;-reen g:-ound and air for the entire
Gernan ArniY·
CONTEJ:TS
I.
II.
III.
REGULATIO;I FOR T!rt IDilllTIFICATIOI; Sr::RVICE
BI:T•.'EEN TROOP UniTS OF THE ARMY AIO FLYlliG
FORl.l/,TIONS OF THE A:::R ARIJ.
REGULATIOiiS FOR THE SIG!/AL C0!1!Uli!C/.TION
EI:TI.::m; TKOOF m:I TS oF TilE ARI.r..:
AliD FLY!!;G FOr.!iATIO!lS OF TliE Am ARJI.
sr::nvicz
LII:A.lllliG OF LU!IDIOUS SIGNALS .
Frnnklin D. Rooaevel t L ibrarJ
DECL "<I''"!~D
DOD Din. 52oo.s
1
Date-
1-~-
(9/27/58)
?o
Sipw.ture- ~ . ..,.,.,...;~
S»I!C5'1 ~~Is ~
-1-
Franklin D. RooaeTelt Libr•-
l"'r "'I
'"''r.IJ
-,
213
I.
~T:f·T~Oll5
FOR T!iL: ID::::HTIFICATio;: SEnVICE n::r.,m:u '!':lOOP
UI.I . ... O, Tl!I: t~'UIY AliD FLYTIIG FO::uti.TIWS OF TI!E Arrt A.~.
The Commander-in-Chief of the ~
General Staff of ~ / Training Detachment (Ia) 1 •
Ho. 450/403
Headquarters German ~' March 8, 1940.
The prerequisite for close and successful cooperation between
troop units of the ar~ and flying formations of the air arm is
quick and unimpeachable recognition between these units and formations . Superiority of the Ger~n air arm over that of the ene~
makes it possible for the ~ to ident~fy itself as German by
clear~' vis~ble identification signals from the ground. It can do
this in combat, in the position of readiness and on the march .
The follotling directi·1es for the identification service come
into force i.nnediately. They are to be made comnon property of
troops t·tithout delay. Provisions in conflict with these directives are abroeated .
A.
General
1. Cooperation is to be thorough!~· set d01m and regul~ted in
advance ~or each ccse by the proper cornmandinc authorities "of the
These eor.oanding aut:torities are, noreover, resarrt;• and air a..>-n.
ponsible for l:eepin!; each other constantly inforncd as to land and
air nove:tents t:hich take place in the sar.te field of operations.
2 . Con~ders of all grades are responsible for scrupulous
observance of the provisions in each situation. Violations and
neclicence are inimical to full success, and they endanger friendly
troops.
B.
~
1. ~vastika flags are for all t roops in eac~ situation the
main sign of identification. DependinG upon reqU1renents, th~y
are to be laid out on the ;;round, y.-aved, or spread out on vehicles.
0n arnored cars they should be fastened so as to be clearly visible
to airr.ten .
1.
2.
The Ger,.tan ra is the equivalent of the Ar.te:i7an <r-2.
Underlines are the saoe as those in the or~g~l German orders.
r!l'ranltl
..· in D.
214
2. Swastika nags 1:ill be disola,red con:;tantl·· in the zone
of identification and in such r.JaMer tilat irien<ily troop uni~
are ~de kno1m Without !ail, precludinz a~ confusion from the
air ,
The zone of identification shall be determined, provided
higher comoands of the ar~ groups do not adopt a uniform standard,
by army comnands acting with competent commanding autllorities of the
air arm. It enbraces that part of the friendly re~ion of combat and
movement rrithin which there is question as to whether the air arm
Will be employed against ground targets . The reRrWard limit of this
zone will be a selected and pr escribed line which is easily and unequivocally determinable for air and ground troops, such as a river
course , railway, or road . The forward limit lies at th<! ene!J\Y.
The more difficult it is for the air arm to recognize
movenents on the ground, the deeper in general will be the zone of
identification . \",hether the zo:te can be prescribed for a fairl:•
lOll!:; pericxl of tiMe or whether it ;nust be reeulaterl anew at short
intervals depends upon the rapidity 1·rith which the ground situation
develo;Js.
0
J. •renpora:-il·· the troop 'mit
zone of identification as fo:!J o· ts:
a.
t~akes
itself known outside the
Upon rec:ue$t by sibr.al of the air1:1en.
b . Of its
as friendly.
0\"ffi
accord, as soon as the airmen are recognized
c . At the order of a commander, from conran:• commander up,
l.n order to j)revent being fired upon by friendly airmen.
4. Yellow panels and white rectangles!. on the stern armor of
all armored vehicles are additional marks of identification. _The
yellow panels are to be employed when swastika flags are lack~ng.
5. At night, all troop units on the march and in the posit~on
of readiness identify themselves as friendly at the request o~ a~r
~ provided the position makes this possibl7 vrithout inc~nng .
danger, by nashing 1·rith '"hite light . These ~nte:mittent s~gns w~ll
be eiven with all available li~ht sourc:s, includJ.ng pocket lanps,
blinking lamps, and ll.ghts of motor vehJ.cles .
1.
\'ihen brouP,ht into use in snow, the Ylhite rectangle is replaced
a darlc rectangle on the •mitened stern armor.
~J
]
215
6. The order for displa)-ing and 1.-ithdrawi.ng visual signals is
given in each case by the co:1petent co•tnander, from company cormnander
up.
C.
Air Arn
.1 •. De~er~nation of th7 mark of nationality is the surest means
of dl.shngul.Shl.llg between fnendly and hostile airplanes . Knowledge
of German airplane models facilitates the identification. Good training and constant alertness of air scouts are prerequisite for quick
and unimpeachable identification of friendly airplanes .
In higher altitudes, recoenition of airp~ane models and
nationality .narks is facilita ted by friendly airplanes . In case the
air situation permits, these J>lanes fly in sliehtly zigzag fashion
and slov:ly turn around the longitudinal axis, or "wobble" ,
2 . The Very pistol signal is an c.dditional mark of identification
for singlCl airplanes and flying fomations . It is fired off generally
by night, and by da~r only r;hen necessary. This luminous signal is prescribed for a deterninate length of time ,
J . The distinguishing formation (Kennungsfo~tion) facilitates
identification of aircraft units . Prescribed for a determinate length
of tine, it may appear in the following forr.JS: (a) line; (b) column;
(c) echelon left; (d) echelon ri~ht .
The hostile pursuit ma;o; nake it inpossible to adopt the
distinguishing fornation . Thus, in the proximity of the front, a
for::-. ation which is not flying in this manner can not be regarded
forthwith as hostile .
i
F:rwh l' ~ n. Rooaeval t LibrarJ
_o
i.i1lt. 5200.9
Data-
(9/2?/f:JB)
l - ~ - 70
Sipl&t'llll~ ~·..;,o+>-~1>
e6Ili
b.L.&.ii~t
-4-
· 520~
II.
PJ::GUL.4.7IOHS FOR TIC SIG!'U. CO'"M
- · .ucATIOH s:::nvrcr: Bzrt:.mr
'ro
FL:'TI'G
1 •-Y Aim
1 '
~ ATID:!S OF TJIZ Am AllJJ.
·
.~
m:rTs oF •rtr
.n..
TROOP
The Co~~der- in-Chief of the Army
Army General Staff / TrainiP.,'; Detachment (Ia)
No . ?50/40
g
A.~
mit The signal communication service (yerstandigungsdienst) trans. s messages, reports, and requests between ground troops and
a1rplanes or flying formations . In this connection v~sual signal
a.:e the means of communication employed by the army; while luminou:
s1gnals and dropped ~essages are employed by the air arm.
B.
l.
!l!:I!I:i.
Visual signals of the argy are :
Snail panels, white or red;
0
T • panels, rrhi te, yellou, or red; l.
'""""ge
\/hi te tracer bullets;
L'1provised r.>eans of all sorts .
2.
Visual s::.r;nals are ennlo7ed as follows :
a . To Uake !Jiorm the t;ost For ward Line Attained, for the
Combat Air neconnaissance . The following means are used :
(l) Small panels : These are appropriatel~· l aid out
in groups of three or four (close together, side by side, and
par allel to the front) when t heir meaning is nv:e hold the line".
In or der to obviate errors , they l:ill be dis!Jlayed only by rifle
companies of the front (line?)--not by battalion and higher
echel ons .
(2) White Lwninons Signal s : The signals are fired
into the earth, especially into shell holes, before t he front line .
Since they easily discl ose forward friendly troops to the enemy
1.
Large white panels are to be replaced in the future , as delivery
permits , by large yellow panels .
li:r
[;
n D. Rooeevelt Lib
Qlt
rn
ra:,
217
[
.
and make it more difficult to iv
are to be er.tployed only nhen t~e e a:~rnen the exact l ocation, they
marJ. 1ng of the front line by other
sienals is not possible .
(3) Improvised Ueans: When (l) d (~)
"' cannot be used
an
th~ most f?rward units can make thelr
identity knorm to deep-flying '
fnendl~· aumen by Ytavin.,b handkerchiefs,
maps, heL~ets , and the like .
b.
To Designate Combat Posts:
Combat posts are made l:nm·m by r.teans f
ac:ordance vnth Section 6, H. Dv. 425 (A~ Signalo panels, in
Tables) . For
th1S purpose the large panels are to be 1;id out
in such l!'.anner
that t he signs are re adable to·•:<>rd the front.
c.
To Designate Combat Hessages:
Combat messages are designated by Jtteans of lar e nanels
.
1n accordance with Sect~on 6 (Panels), the H. Dv. 425 (~ignal
Tables). Panels ~re l a1d out in addition t o the identification signs
of the corresponding headquarters .
Furthercore , visual signals may be emoloyed by troops
·
through laying out small ;:>anels as follows :
(1) The front line uses such sicnals for the purpose
.
of des1gnating the direction in v:hich hostile nests of resistance
is requestec against these nezts . The sign is a
sup;>ert
lie, when
large "T" . 1.
The large vertical line or beam of the "T" is laid
pointing tovtards the hostile nest of resistance . The small horizontal
line or beam is laid on that end of t he vertical line lmich is turned
toward the target.
(2) Headquarters use visunl signal3 for the purpose of
designatinG the arproxinate di.rection in which hostile artillery
positions lie v·hen the combattinr; of such artill~r:• is requested.
The sil'n is a "T" vn th C:ouble horizontal line ( T ) . It is laid out
in acc~rdance \'nth the preceding paragraph.
J . Displaying of Visual Signals is either preserib~d by agreement ,·,i.th the air ar.rt for a definite time requested by aumen, or
carried out independently ~ troop units . The order for displaying
1.
To eliminate confusion, the sign<>! "Fuel needed", which is
similar, ,·nll be laid out with the large vellow panels.
PrnnUt n D. Rooeevelt Libri1'J
lM!T~'W G EG'"'
-&-
2Sl(IED
DOD DJB. 6.aoo_._@ (sfa7t6a>:
218
and withdrawing visual sigP~ls is given in each case by t he competent
commander, from company co~nder up.
C.
1.
Air Arm
The Air.nan rs ;&eans of Corllr.'lunication to the Ground Are:
a. White tracer bullets, which mean, "Ground troops are
requested to make themselves knovm by visual signals ."
b . Green tracer bullets , which mean, "Observer ,·tishes to
drop (a message?) . Lay out the message-dropping cross, or make
knmm by any other signs where t he dropping can be effected."
c . Red dropped sr~oke signals or red tracer bullets , which
mean, ".\ttentionl Hostile antitank def enses , antitank guns, artillery
or barriers al1ead. "
d.
"Attention!
Blue or violet dropped smoke signal;!, !·which mean,
Hostile tanks . "
Franklin D. Rooaevel t Librar7
DEClAS~irl£0
DOO Di·. o2oo.9
Date- 1-~-
(9/27/68)
?o
Signature~ ~~ '·--.:~::,{b:J
-·..-44~1)
1.
oke signals have been made ready,
Until blue and violet drop;?E!d sm t· ularly those for tanl: recon
the reconnaissance squadrons , ~~ ~cthem from hand smoke-signals
.
•
n~issance, are advised to inprov~se
formed in ~undles .
~
WQEL
- 7-
Frllllkl in 0. Rooaevel t LibrarJ
SSif!EO
[)P~'
[
ilth. 5200 . 9
III.
(9/27/ 61)
219
ce
!WlB!lii'fikl:--
l.!EANING OF Un.IINOUS SIGNALS .
Secret.
Not to be let fall into enemy hands .
To 22d Division,
Sy order No . 150/40 J . K.
Serial
Color
No.
Warning
Signal
L!eaning
1
white
Lwninous signal
Here we are
2
,.1hite
Parachute tracer bullet
Here we are
3
white
Star-cluster cartridge
(\!arning signal for
!los. 1 t. 2)
4
red
Single star
signal cartridge
Ene~
5
red
Star-cluster
(Warning signal f or
l!o . 4)
6
red
Hand smoke signal
!lot E!!Ssable for
armored cars; barrier
for tanks
7
red
(obliterated)
8
green
Single star
·signal cartridge
We attack; disElace
artiller:£ fire
forward
9
green
Star-cluster
(Warning signal for
tlo. 8)
10
green
Hand smolce sir;nal
Passable for tanks
white
r ed
pale
r ose
- 3-
attacking
rrantlin
o.
Roo ..Tel t Librlll'J
l} q~r
\MIPfO
I
!)
0
Serial
Color
No.
220
5200 . 9 (9/27/58) C9iiF'I3B!14'It.:r.-
Warning
Signal
Ueaning
ll
violet
Smoke cluster cartridge or
smoke chain cartridge
12
violet
Hand smoke signal
13
violet
Parachute smoke cartridge
(\"larning signal for
No. 11)
14
blue
Smoke cluster cartridge
or smoke chain cartridge
Tank warning
15
blue
Hand smol:e signal
16
blue
Parachute
17
18
Tank Vlarning
cartridge
(Warning signal for
No. 14)
white
Tracer bullets fired from
airplane
Ground trooQs reguested t o make
thecselves knovm bl
visual signals
white
Answer at the gr ound:
FirinC of tracer bullets,
laying out of panels, or
displaying of swastika
flags at level of company
C-'mbat posts.
green
Tracer bullets fired from
airpl ane
SJ~oke
.
~
-9-
Observer wants to
drOQ a message; DisQlar mess~e-drOQQing
cross or make known
bl other means wher e
drOQQing can be .
effected
221
Serial
llo .
Color
19
red
20
red
21
--
Warning
Signal
!leaning
Tracer bullets fired or
smoke signals dropped
from airplanes
Twice in Dropped smoke signals
quick
succession
---
---
Attention! Hostile
antitank defense,
antitank ~s ,
artiller:z:, barriers
Attention! Hostile
cars
~ed
Airplane identification signal,
specially announced
from t~e to time
~
Fr
cvel t Librar7
[L ~
Dl.IU L
I
5200. 9 (9/27/5&}
Date- ) -~ - ? 0
IU.-turl•
j
~-~'
TREASURY DEPARTMENT
UNITED STATES COAST GUARD
HEADQUARTERS
WASHINGTON
6 September, 1940.
From: Spagent, Shanghai, China.
To
The Secretary of the Treasury.
Message from Professor Buck.
Gen. Chiang Kai- shek and l.!adame Chiang Kai- shek deeply
appreciate your warm greetings and extend their heartfelt greetings
in return.
-
~
G-2/2657-220
223
No . 187
SITUATION REPORT
l!.I.D., Vl.D.
September 6, 1940 .
12:00 l!.
This.~l~tary situation report is issued by the Military
.
In vievr of the occasional
Intelh.gence 0J.V1SJ.on, Gener al Staff .
inclusion of political information and of opinion it is classified
as Restricted.
----- -- ---- -·- ·------ - -- ----·
I.
V/estern Theat er of War.
1.
No ground oper ations .
2.
Air Force Operations .
Heavy air fighting occurred during large- scale German
daylight attacks on the 5th. Gennan ground objectives were primarily
Gennan night bombir1g was also on a large scale, centering
airdromes ,
in the London ar ea, where a seven- hour alert occurred . Damage is admitted to railroad stations, riverside industrial plants and sevrer s .
Br itish night bombing hit the Berlin area, ot her targets
in Ge=y and airdromes in Belgium and France .
Very heavy air fighting is in progress over England today.
II .
!!editerranean and African Theaters of Vlar.
No ground oper ations reported . The R. A. F. bombed the Turin
ar ea on the night of September 5- 6. Italian day air attac~s were . de~
Malta (twice) and in limited strength agaJ.nst shl.ppl.ng
against
livered
in the l.!editerranean and Red Seas .
~ ~
..:;
..
'
224
T I .r
I
Par&pbrue o! Cod41 Cablecr&~a leceiftd at the
.,.ar Depi.J't.Mnt lla 47 a ,a , , Sept, 6, 1940
London, FU.c!Ua~, Sept, 6, 1940
The !ollo~ 1ntormat1on of aca;r aotbit1.. 1a tor the
24 houra ancU.nt at 7 a ,a , tocla7a The principal air attaoke wre
1n the area London-L1nrpoo1-Kanc:haatar--W.dlan~aat lent ,
J.
total o! about 650 IMIQ' airpl.anaa part1o1pata4, O.I'MD airoratt
lo1111
were 37 conl1JWIC1, 22 probable, uc117 ~.
loat 23 pl.anea,
-
rr- whiob
12 pUota
Wl"'
aaft4,
The Brl.t1ab
The Dunlop plant
1n L1Terpoo1 waa c1a:upd to au:h an extent that ita p~ct1on w1ll.
be redllc.cl b7 about 50 par oact for -
week,
In the x-dO!l 1114
l ent arau the .a1n 11M of a raU~ 1 cU tanka, anc1 one a1rc1roaa
wre d.acap4J anclin addition there wre con.:idilrable
p a, ater anc1 billrn;r facillt1ae ,
~·to
Air raicla rellllltacl 1n the 1.D.jurr
of t1111 111llta17 peraonnal., ud the daath of 35 and 1njurr to 282
c1T111ana .
SllbMrinea nn1t 91 000 tona o! ab1ppiq,
There 1a DO edclenca that an 1nTa.:ioD 1• 1mineht,
A DR qatea of air raicla alal'lu 1a be1nt dnal.oped to
reduce tbe loae of timl o! amploJH• 1n !actoriea,
L!ll
I AI
225
TREASURY DEPARTMENT
WASHINGTON
3ept~ber f ,
1 40 .
I .nve nade a brief ex~inntion of tho ~rocress
nade by the .lcohol Tax Unit in absorbin the functions
of the Feder... l r.lcuhol ,,rlainistr~tio, , a. reouested by
you on Jeptomber 4.
Tho 1ork related to the 1. suance or pernits to distillers , rectifiers , 1dna~~ers , 1holesalers and ~porters ,
has l:een decentralized to the field >1hcre it is bein~
handled by the District Juuervisors of the .ucohol Tax
Unit . This includes all investigations , and al l hearinss
rd to ermit uroceedines .
tith ~
The issuance 01' "certificates of label approval " is
bein do~e at .ashincton headquarters , as is a certain
voll.oe uf lecel , nclninistrative , and nupen•isory wor:~ .
Toe ~~~~ber or ~ployees on the pay roll of the Feder al
Alcohol .d;;Uniotration at t!le tine or the transr~r or i ts
functions to the ;.lcohol Tax Unit (July 1 , 1940 ) was 157 .
?,
L
be nu:·:ber r t ined for the work al,ove described was
hich number 31 have been sent to field offices
56 re.uain in \'ashington .
or the 70 surplu~ a~ployees , all but 20 have been
ine being, in vucant positions
placed , at least for
in tho ..lco!Jol l'sx Unit , the Office of the Genersl C?u.'lsel ,
or el se there in Lhc 1ru u of Internal .•evonue . It J.S
ee t1:cnty hcve secured c:nployunderstoo(!. t~1 t co:no
ment in otb r acencies .
The o vings in unnronriotions
I boliove that
~n
ituation ·
by the chnnge
current fisccl year
~~!Acted
nount to bout i75·,ooo durin
total or 15 , 000 ov ila 1~ .
out of
'111
n irely suti:::foctory.
GROGP : ::::TI:iG
~ ..r .
Sente~be!' 5
10! 30 n .'l, '
1~40
P!'esent :
·aston
n
Cochl'an
·:r. "!'aves
.:r. Fole:·
!.:r . llz.as
1:r. 'I'horr.pson
!.r . YotL'1S
~ ::r • ell
:r. Schvml'z
J.:r . ',;bite
1'
. .r . ChPnbe!'lain
i.J>s notz
rr.: . Jr:
Th~ l'~aso~ I sol't of upset my schPdule
th1s 'lOrn1n: was that I had this - 5/7ths
of the efense Council he!'e this n:ominr
~nd the line that I took r;as that I thou::;ht
1t \ms ve!'y unfo!'tunate that the·r >.ent un
on the Hill ana filed a connlaint, difference
of o;:>i:'!ion, to ;:hat the '.lreasul';, ;·.n doinr,
~nd t1at if they couldn ' t cone to a~ arl'e~
:"lent ~-~i th ou!' people O!' this or anj· other
thin::;, that t:te;· ol' -U to co:ne ::~a. see ne
::ncl if the:· ~.ncl I couldn' t corr:e to an a ~ree
:"lent, 1 e could :o to see the President; and
~o1• t~te i\ ture , t:-.c.t 1.as the 1;a;· I r:ould
li':e to do it, a11' that I r:ould take second
place to nobod:,· in .. ashin:ton as to r:l.J
interest and desire to have this countr:r
ready to defend itself .
.
. ell then they r·ot into a lon.:; discussion
o hf'tlter or not the p!'ovisions wl-.ich r:e
·;;<'re ·us~!in::; at the end of the f~ve - r~r
nerioa the '}overnnent has the n·ht to tell
the t'\n~ufacturer exactly ; ..tnt e shoul. or
ell, he;'
should not do ,,it'l his bu.:.::.· ·
!'e~l· in~
~ave ~e their sloe of the ztol'y a
the difficult:· they a!'e up at;ainst e..'1 • lso
th£' difficulty of J,Titin • a contnc ~ Iaten
it is prescl'ibed by laY/ as to 17hat .l. t shoulC.
- 2 or s~onltl '1ol co::lt::t.:.n , - ot thi:; ici.ee. ,.. JL
of the ? : ~ ·1:J.le -_ ·.-:a" t'· lrJar:::
· ·' ·
o. bout · ~·
licten~~: .
'
I _m:J.clc th:..c su.:;;;estior. to ther..: I S"i · , 'T
\all al:e ::. st'~"cstion to vou ,eo•rle · ' "' ~ 0 u
r:iE a~rce i!1 t~e Council and ~et l. th~ .,. J
.
...
'·' •J
nnd ." av;;· t o a.:;~ee ~na.t
fro toa.cy
on every
c?ntr::1ct thc.t _1s _s~ry..ed , t'.at nll the finanClal ":;rred.s 1n t .H con tract c:1o:tlcl be r..ade
publ~ c, I P.i~l ·.. irlr'.rm- ouP intc:·c:;t .!.n ~; ir.
po.Pt cular p.1ase .
At fiPst the~- ·.ePen 1 t ,.,~rticu22-•l,i .•tePedcd
and I :;' i.!, '::or lon'·, - ·e::1tle..er , I think
t'1is is ·:ep~-, very L.~ criant or 'he ::~anu
facturer ' ecause ill the last r:.r ,:;ot. spent
five !'e~rs r_ant.facturi n;_; anl then ;,·ou ::;rent
the next f i ve ~·ears t!",:rin:; to defend it'bcfope conLittees , and if ;,·ou publish this thir::;
I :1::ve suff i cient con!'iiience in the [Peat
Jl.!lel'lcan public t~t .:f :·ou si[D a contract
r.~.:.ch i:n 1 t in t:.e interest of the Governr:cnt ,
Cor:::'e::s 1·:ill r ecti£';,• it; ::'Jld !'urther::ore, ·.::
.:. t .:.~n 1 t rir::~t , ~-ou can sc.y to Con"'r ess or
;;our co::?.:;:>eti tors ;;ho wal:e troubl e for ~ou
five ;,·ca:-s leteP, ,. ell, it ~.as in the record
l!.~cl if :,.ou v;anted sa tir,fZ4ctio!!, ·,·.rn~~ didn 't
70U c::··ln.in it "t t:1e ti:ne?
There ;;as no thine
;ccret·about it . 1 " lend I said, "If the f il>st
contract that had been si ;;ned r. i th !to bert had
bee:.·~ 'e nublic , thei'C nouldn 1 t have been
30 r.!illion' dolhrs -.-.-o~·th cf contncts, 'ecr.u e
the rttbliC :.OUlCJ1 1 t sta:1d for it , II
rter about 10 or 10 ninutes , Don ::elson sa.:.· ,
·"T:.i:; · s t;ooG. ; ::: en [or thi~; ~' Jl.~d the:· e:ld,
·' .. ell (1 0 :·ou ·;;art '~ e SI'CCL1Cahons Of ~-:~
"''"S'7 fr ·:1c r seicl "::o , ::: ·;:ant full sr.ec'"'l"'-··
.
. ' '
l
-:-.
't
C" +i Ol"~ of hm-- r:luch ...:!:r··:;ler 1::2 :es or c.oeen
~k~, ho~r he is ::nanced, ver;;;thin,: thnt' •s
228
- 3 to ~o w~th mo:Jey, ;ust the r,a·· s::::c r.ta;~es
a~ ~s~uln~ _ house ~lve the full details of
tM~r •rof~ ts , U..'lder7r:i ters ancl :;o forth
and so on.
..e left 1 t on tr.r.. t basis . -.d
\ ::.~ :=-re:;ePt. ::ave l re='ortec .it about ri;::ht?
Foley:
Yes .
: .: . Jr :
1.1)-~ the ~".or: I thirJ· of ~ t - I nean, I . cc.n 1 t
::1" here c.no I ~~ r.ot ~o1n~ to be nut 1n the
position - I mean, ;rou r;ri tc it .:.nto the le.w
every 1~ st detail. ::: wean, they h.?.ve rot
'
tl·r··e for:rrubs nor. and I think one is ~ocl:
e~red .
T •;;oul · love to ~ve th~ :;i 'Il one a:1.d
put .:.+ .:.n the rn:.blic press . They \";oulC. never
sit:n another one , 3u'!; --ou and I ancl ...,eonle ~·e do:1 1 t bo-:-, '-' e Fre::ident ef the li~ited
St:J.tes doecn 1 t know, t:1e l:ind of contracts
that arc be in:, s.:.&necl, but rL!Ike thew publish
every one of thew and if there is one - Ed
wen ti oned a col:l:pe.ny this ;;.ornin[". Can I mention that company?
?olcy :
Yes .
E.I.:.Jr :
If the :::asb-..an Kodak Co::1;:-any gets a 70 rullion
dollar ccntract and ::r. Folson ;,a:; do\',n :!ere,
trea::u1•cr of the co:apany, and the l:lnerican
r.ublic doesn 1 t like it a. l ;:r. Folso~ is still
;..cttin~ his salary and still TreastU'er, the;r
Viill clanp QO\'ffi and say, ";.'e \'iOn 1 t stand for
it . " J:r . Folsom either has to :o hone or
r
~ir"n .
T think ~ull publicity on the c?ntracts is so
l':''1Ch 1ore inporto.nt than this ll t~le clause ,
a.. : th.:.nk the;,r are goi nt; to do 1 t .
hat do
you t!'!inJ: of it?
Gas to.
h
J
:t looh sr:ell to .r:.e, if :rou can eet en01!£h
details of t'tose contracts out so they \7111
be understood .
- 4 H. l .Jr:
inance, everythin~ that has to i:o 171 th
Profits, cost~per tmit , everJthin~ •
...vei•;,rth.nr cxce~t the e.ctu:l specificaticn
of be. article . Isn ' t thd '1'1hrt I ha '!
Full
~inPnce ~
Fole~' :
~h::.t is ri~ht . Leon's su:;:estion r:a::; thrt
JUst. that should be inser ec1 in the ln11 and
I tlunl: 1:e .way have to do thc.t in orcler to
set . the bill throur;h, because ~·ou just can't
st!'lh t!J.ose three p11re.£rP.nhs out and leave a
·
hole in the bill .
t.:·. Jr:
If we nant - if Leon nants to get it in the
contract , let bin ~o u~ on the ~i ll . You
Tiere in on this J·estcri:.a;r, lla.rry. l!ou doe::
it sotmd to you?
·.ihite :
On tYIO c; r otmcis, I think it excellent . In
t!l.e first pl ace , political philosophers have
held that one of the several pillars of aemocrac:· is pnblici ty, so in that ;:;eneral cirection
on such an important matter I thi~ that is
an excell ent thin~ to do and it is certeinly
the best neans of .:;efense of an;r procedure .
I think it is a _:ood r:ay out, provided it
could. be pl aced in the law.
I think it l/ould be very excellent if the
infornation that shoPld be nade public could
be included in the lebislation ~nd I t hink
the public ;-:ould reco:..:nize i t as an excellent
step foruard .
H . ~· . Jr :
I ar;ree l'iitn ;ou, '-ut I felt thet I have. ~ot
them up to the po int y;here they are <·etbnc
k:nd of restless . :!: r:ant the.'l t~ :;o back
anll neet w.on~st thensehes and c:te?" ~:a.
decide on that thenselves , but I th1r~;
~..bite :
::: cio think, :~! th :·ou, tl.at they he.~ no~c to
their case tha.'l ::: lwei thoucht at fl.l'st , a
little ~ore to their case .
230
- 5 Foley:
There is no.coubt about that , In so far as
n~,bcr one 1s concerned, ~ . Secretary __
F. .:·. Jr :
But I didn ' t let Johnny Sullivan dol':n
one
bit in their pre:;ence, did I?
Foley:
iio .
H . ~~ . Jr:
::ot. or.e
~chr.rt'.rz
bit . I agree with you , Earrv but
tryn.::; not to l et s lllivan dovm , it s~i!.denly
struck m~, and I t?ink that the thir-- tbey
arc.or=u~nv about 1s so ur.important as
a~a1nz~ complete - and the President has a
press conference t:tis afternoon . I ao r-oing
o
to ~ive it to him.
:
He h.as it this nornin: •
.. ell, he can still do it, but I thin;{ it is
bi enoubh that the President hinGelf should
co:->e out am"t say, "One t"~-,in::; I \7ant in this
bill is full public it;~" md t't~t is the ansl':cr
to the Ro~ert tilir.~ .
'•1li te :
If he could tie that un , too, l.i th a Gtt~+ement
on denocracy bein~ bui1 t on :mblicit;;, it r:ould
be a e;ooi!. thin;::. I l':oul"' lih to ::e.:r - -
!!.:... Jr :
!:~r:>:',
v:oulcl :·ou ~ive me a reference on that?
Is that fro:ra the Ol d or tl-te :rev: 'i'estament?
I think I had better put it bad· to Arirtotlc .
You woulc be less likel y to l ook it up .
H. r . Jr :
You tti.;::ht sa:r I lias rusty on ny Greek .
;,bite :
I l:ould li]:e to sa:r that I think Johnny did
a sr.cll ;o? \:i th Henderson ;resteri!.a;r at .
luncheon"in the li~ht of 17ll.at had been r;o.:.nc
on ")ri or to that and ::: tl:link that the;· '"Ot
toc~t:,er . ..e h.c.ndlei!. himself vei'J ;.ell,
I thou::;ht .
- 6 Foley :
I think Joh."l has done very l':ell. Senator
!3yrd tol< :::e lc.st ni:.;ll.t that John mauc a
ver:· excellent iimression on the Coori ttee
and he sa~C. seve:al Senators co~plitJCnted
John to ~ on h1s oaP.ner of nresentation .
He said like so rtany -.-.i tnes se~ that appear
before the Co=.ittee , John did not tr~- to
evade :·;hen he ;;ot a direct question, ever..
thourrh the answer oi-:ht not have been in
line ~1i th the argument he was r.w.kin::; at
the tllle .
: . •:·. Jr :
ell, I franl:ly really hated to meet tl.is
cror;d this mornin;;, but I thinlr it cane out
All ri:ht , anu I think as a resul t of this
:neetin:; that from now on, all contr ac ts
uni!er - \'That do you call this thinr; 1.e
finance , :.atio::1al -,efense? I mean the
special :aoney, ;.hat is t3at?
3ell :
::a tior.r.l Defense funds?
h.:.. Jr :
YEs . 'ihe r:.onies that
tr- os e called?
Bell :
::atio.nal Defense notes .
J:.;·. Jr :
Uut tre funds , uhat are they called?
Bell :
Just call i t special fund .
ll.!'. Jr :
But on ;;'our sheet you S<lOI.ed 1:1e the other
~-ou
ear::Jark, 1;hat are
day --
Bell :
h.
' . Jr :
National Defense expenditures .
All contracts nade under
, 1 ouldn • t that be it?
:·atio:lal De:'ense :'unds .
sa~r
:;ational Defense funds .
Bell :
Yes , }u::t
. •:·. Jr :
r'ationr.l ;;e.i'ense
fun.'~ ,
that ;,ould be the
thin~;.
232
- 7 -
Full .rmblicl· tJ·· o~.. a 11 hc J.~n~ncial
,..
Do:1 ' t :·ou 1 i ':e th· t , rL,ick?
a::pect~ .
SchHarz :
V_er;,· r uch so • . ':'ha~ certeinl;,· ;:ill create
t ,lc l' ·cnrd . :..c!-_ 1 11l nPevent di.fficultice
la '.:er or .
•
~
·: .''. Jr :
Then let them ;~itc their contracts .
e
cnr ' t - I told then I am not ·oin- to ~it
'1eJ•e ~ I tell then ho·.~ to 1.ri te t •.c.:.r contruc1 :: . Let the~ .. rite their contrac~s ,
but
,..., 1 he:· arc ·.. r it ten or .!'in.:. shed, r:c
l;:no·.1 11 .e .;;..cr Chrysler gets bo ilollars or
Sch·.:ar:; :
,;,n t:•ose co::1nanies are sensitive enorh
to IJUblic o;:>ii!.:.on '.hat the:·
an:· tricky contracts .
. •. . Jr :
;·;0:1 1 t
dare rn•ite
Sure .
I hope.
•: . J,.. :
• oley :
·.e
re .
.. ~n. : said
h
l~'~rt>y,
.hil.e :
~l • •.
•
Jr :
bat did Aristotle say?
bat'.
tno or three ti~es this 'llorninr:;,
a '\,1 I ....as quo tin[; I don ' t. h,o\7 11ho --
Pt>obe~ lJ
Aristotle •
I Jud nore co:Ui.;.ence in t:1e opinion of the
crcnt 'll!lerican !JUblic than I had in an;:r lnr/
that Con~rcss pas::cd a:; to ho':O' a raan shonld
condnct h.:.s bu::;.:.ness .
I think tho.t is u v.:H·;,· sou."lcl ste.te."lent .
·r ._· • .Jr :
I don ' t 'cno;7 dlP.t the q•IOt t'on 'z ,
th · nk :·ou d -ht loo~: .:. t U? •
'1t.!;
I
233
- 8 h.:.te :
L ... Jr :
I t'link you could take that bacl• to Aris totle .
!t ::ll.;ht be :.:r~ . ::or:;enthau .
I feel kind of pleased . For some U!L:norm
rea:;on , !obert Jackson writes tle that he
;:ants the income tax of • .r , lans J , Ti pp
of Detroit, ..:ichir;an . ..ho do those ro t~?
Thonpso'1 :
'i'hey come to Jae .
H.·_:. Jr :
I have :mother !le>..or:mdum - ~-es , all r i ,..J.t ,
Tlell .
~ell :
AL:. ri 'lt, thank ~-ou very nuch .
!i. • Jr :
'.11 the arrange::1e:1ts aade?
.Jell :
All the arran2;enents are :::ade . Ar.yood!' else
- ":lt to pla:· ::;olf today? Th.:.s is a ~::ood
~ft~
"'J .
uoes it have to be :;olf?
H•. :. Jr :
:o, it could be tennis, as lonb as it is an
out(..,.oor s'Oort . Do you r.ant to l eave the roon
and ::;o bac:~ , Harry?
\.hl te :
I think I can nanar;e while I au in here ,
H.!J. Jr :
All ri;:ht .
Thoupson :
I have nothins.
!!, •• Jr :
Daniel? Do you knov; v:ha t .II'S . Bliss is cominr;
to see "le about this nornin~?
Bell :
I haven ' t the sli::;htest idea ,
Do you :mort?
o.here are you?
234
- DCiu.."''ber ' n :
Iz .:rs . Bliss comin;; to see you (Bell)?
'....e .
1 erM.ps : can '"'!less . ~he reprccents this
fund _of ~:rs • . ·or;;;a.::J. ' s to send for French
charlt;, a.nd snc has been riding the .cd
Cross pretty hard and ridin~ ne . l told
her ;·.·e couldn ' t unt il it hu~ been detcrr.lined e.s to what policy 11e 11ere r-oin,.. to
adopt \;ith respect to t;encral cho rity
funds m France; r:e coul:ln ' t <>ive her e.n·•
"
preferred treatment.
!:.; . Jr:
In
Chnr.1ber ' n :
She sa::s non ir. VXUIJi ed,
,.J.ovc do•:n to unoccu~ied .
•
stor:•.
:: • ..• Jr :
.e have done the
haven ' t ;·;e?
Chanber ' n :
\1e nave done the ;\Jacrican hospital in Per is;
that t7as a special case .
·:.' ·. Jr :
An~
occu~ied
France?
.'~erican
·tt s:1e r.ants to
That is ::rs . Bliss '
Hospi te.l i n Paris ,
·:rtw.t about that orr:;an:.zation feedinr;
children?
Che.nber ' n :
·.. e have allo;.ed two grants for or,..aniza tions
feedin: children .
H• .• • Jr :
In occupied territory?
Chanber ' n :
In unoccupied. .e haven ~ t "i':'en c..::J.~-t~:nr;
exceot the JJ:erican Hos,1tai 1n occup1ed
France •
H.':. Jr :
Chn:nber ' n :
.hat does ~:rs . ::organ ' s co:x-..ittee do?
It is -
tile~·
do v.or I:, I ao t old - I don ' t kno1-,
235
- 10 b1;1t _::rs . Bliss tells oe they do ···ork _
'"lt'··
.. " th. e :;o ld"lers . The·· do ;aedical
1·some
~man. th
..or •
...,
:
e re f u::;ees and "SO!!',e ...little feedinnot nuch. ?hey !laven ' t -ot much feedin· ~'
The;:,-..h~ve ;:etten. about ;7s,ooo, :::rs . Bli~s'
star., lS, that tJ.ley r.1lllt to send over .
H.:· . Jr :
'.. ill you be in the nei,.hborhood in the
next hour?
~
Chamber ' n:
I nill be here , yes .
n::. Jr :
I a;::reed ·;lith :::rs . ::or"'enthau on that ouest ion t 1:at no Ane~ican ~it~zen should go on
a belll-erent sh1u . I th1nk the President
is absolutely ri:ht .
Cha:-1ber'n:
I think if this is a:?!Jroved, it will nean
·.. e 01 ::;ht to "do!Jt a policy in favor of aid
to l.L'lOCCU'Oied . ranee , ana so far ·.re hnven It
;:at that t~ou::;h . I lli,derstood that that
;,as a :n.atter that - a matter of noliq, 1:as
the eJ!OUnt of noney 17e i70Uld sen0. to OCCUpied
Fr~nce , and i'e, follo1:inr; the President ' s
thou :h ts , r eneober so~1e time ar.;o we simply
sat on those questions .
!:. ·. Jr:
I i'eel this nay: I have ;:;ot so :~uch to ta!:e
u at l1.1nch today. I have ;::ot your meoorandun
and a lot of other oeuoranda, and if I ~et
!lalfna-r throurh those - and I nant another
c.w.nce" to tal~ to you about this thinG .
Chanber ' n :
I will be very clad to talk to J"OU about it
at any time .
H.':. Jr :
I nill just stall :'rs . Bliss , that is all.
Chamber 1 n :
I think it would be the rlisest thin.; to do ·
Coch~an :
J::r . Carter tele~honed yesterday on that c~se .
236
- ll I pa::; sed t:1e ::le.":lore.ndt..:: o...
e i ~ 0 ' •.
to leave :::'ranee ver-r ::hortl··
t!1'
.
'
"
.
'
•
. ·-: t. e .
Cnr t ~r 1s tne ':'rea surer o t ,ir Co.•.
~ th1n they uould be cat::rieL r.it~ 1 ,en
enouch to cet her out .
T
,
Cha.mb er ' r, :
'.:'here r;oulcln ' t ' e any troubh , ·r . Seer t~ry,
about t'1at . I told :.rs . Bliss , i feel , '.fat
•~e HO'.!l d follor1 our usual custo:n nnt1 lr• ftrr
hc.ve all the mone~- neccssar~· to ··et the:c
A~crican citizens out of !~ancc ~' to support
L':lcricc.n ci •izens i:l France , In fact, r:e
ap~roved a ~rant of ~5 , 000 for ~::;s .or~an
as an :Ll:lericnr citizen to - s.. c is so:1e1 here
i:~ unoccunied :'ra:1ce .
:!::t order to ner::U. t
her tc - for livin- exnenses und to-take care
o1 ~ ooe of :.cr peo:!_)le . •
E.:•, Jr :
E t:1at is ..hat it i5 ~oinr; to 1{;, : an coir.,:
to call up c.nd ;;ou can be ),ere . -t 1.ill !:l:lke
it that r.ucll ec.sier .
(':'o Lieu';;ena::tt 'ci(a;,·) Call up "rs : Eliss £ln~
sc.~· i:: site cocinc dorm to sel' e rn co:tnectlon
1 i th ::iss Ann ~.or-an ' s •~ork , bf'cc.use if she
is, : 1 c.nt Pro.fe:;sor Chn.:~' rrlain prc:;cr.t r1hen
sl.e coner .
I snoke to Jesse Jones about his fir·~cin~ and
he said he r;ould l et ne lc;o·.. to <.I.a.~· .
Bell :
1 e tal':ed to oe l ast 11i::;ht .
H.:.•Jr :
Did he?
Dell :
Yes; ~n he doesn 't ;,:;.nt to do c.:l;th:n,~ ~i;ht
ar:c.·•. ! e has t;ot quite a pr?_,raF.. on, bu Ide
· ' t l:no·,; VIh en tll C-one··
• "'Oln"' out an
uoe~n
- '"'J 1 u 1
"' ·
,l'
... ld l ' ' t ':l:.tt ' t of~" as O:l"' as ne co
'
h
.e · ot
u:~. ~ ~ tt . :,"' "2 ci~lion dollpn
of course . 1ne. are .,e ···.., ;:
,
in to :c.:· !'or tlle sale o~ r:;.ilro~
o s, so
thc.t .. el:·s the::! out to so:::e ext nt .
237
- 12 H.LJr :
~~ou~d you r;ork on this and have it for me
. .one.~!· or Tuesday, the thou-ht of lettin
poss1bl y half of our bills ra~ off •nd tfen
na~·be sell in~ five or seven hundred-l!lillion
dollarz ~orth of rebul~r bonds at this time?
Bell:
ReQllar bonC.s?
H.!". Jr:
ReGular Treasury bonds .
Bell :
ior cash?
H . l~. Jr :
Yes ; just play ;-;ith th?t i dea .
Bell:
Yes . You don ' t have to l et your bills run off,
necessarily. You can divert thern into national
defense bills and then they will be retired in
taxes .
H.LJr :
But I ; ant to raise - I have got too much noney
on hand, but if I l et h~lf of the bills run
off, then I can go out and ~ybe sell another
bond is~ue . Just pl ay with it .
Bell :
An equivalent
H.J:. Jr:
Supnosinr: r;e let 650 million bills
sell a bond issue.
Bell :
'£hat coul d be done , of course .
l:!:. J:. Jr:
Give ne one more chance to sell another bunch
of bonds .
Bell:
I hate to see the bills run off, because they
are so cheap nowadays . There i s still a place
in the r.arke t . 'l'he ban.~er s accept the:t.
J:.::.Jr:
'.,ill you?
Pell:
Yes, I \lill pl ay dth it .
~ount?
t·a~
off and
I have two bank
238
- 13 s~ tuations r.hich I r.uuld like to discuss
111 th
you next r: eek sometime one in lli.chlran
and the other in Cal ifornia :
b
H.J:.Jr :
Did they ever clean up the Syracuse situation
\'Thic!-1 ~·;as so bad?
Foley :
Yes , one in rtica , too .
H.LJr:
Utica?
Bell :
I didn 1 t lmor; r:hether you nan ted to take some
of theze fir;ures to the ·..'hite J:ouse t oday. 'That
shows the approximate balances at the end of
the nonth and the cont~p lated financinf ir
the next four ~onths .
Ii.::. Jr :
Yes, I do , very MUch .
Bell :
Anc these are the financin:;s ue have done in
electionz :·cars, in Septe::ber. I thou::;ht na;rbe
you \ioulC! like that . There have been lar~e
ar.ounts heretofore . That shO\'IS the ;:a tional
Defense expenditure .
~~ci:ay :
The ansv.er is yes •
H .~
, Jr :
Anythin~
else?
.• ell then, Professor Chamberl ai n, if you v10ul d
be here nhen she comes at ll:45 •
..hat is this?
Bell :
That statement shows the National Defense cxp~ndi tures by months, be;:;innin~,; in Jul y and
cradually increasing.
H.;·, Jr :
I can take that - -
Bell :
'l'he President hasn 1 t seen the la~t fi[;Ut'es ,
but he did see the earlier ones ln Algu~t • .
It shov;s that in July it increased 24 !llll hon
239
- 14 ovrr June, and in iu~st 22 ru' ll '
J l· b t th
o
•
1on over
u :[~ u
ey have· "'Ot
to go up much
~a, lul:· Lhan that to :;et the five bill7~~e
ao_ ars .
1
H.LJr:
An~rthin~
Bell :
That is all .
H.J:. Jr :
HarolC.'?
else?
Harry?
rrofessor Char1berlain?
Chc.nber ' n :
The onl:,· point - I have a little met~orandum
r:hicll I \,ould like you to take up r.i th the
Presii:ent, the question of whether we are to
all or. the oelsi:m - tae i:a tional City Bank
to buJ Belsian francs , either in Spain or
in ::erlin. You said ;ou 1.anted to take the
question of bu~ring --
H.l . Jr :
Did you take it up --
Chanber ' n :
•• • •v;i th the President .
l .. L'.Jr :
!!o, I r:on ' t bother him 11i th that .
take it up \7i th your Co!IDlli tiee?
Chamber ' n:
.• e took it up in tne Committee . The ma~ority
of the Colil!'littee is ae;ainst bus•inc Belg1an
francs in ,erlin from the Reichsbank . I
think the na j ori t;{ think . that it. 1;oul<! ~e
niser to buy then in Spalll than 1n qerl~n ,
althour:h it is quite po~sibl; t 1 ~t Lhe oe.nk
of Spain nill ~et them rron .erl1n.
H.L". Jr :
\I ell, the
Did you
propo~al yesterda:· nas to let then
bu;,· them in Spa1n.
240
- 15 C~ber ' n :
'!'he proposc.l yestercla~- \';as to let the::! bu.-·
the::~. in Spain .
'\'ihite :
,\:, ::.:;:ainst buyin::; in Berlin thou-h "O:Je of
us felt that the~· shouldn ' t ' bu·· thCJ:l.,in any
place .
•
Char.tber ' n :
I think the Comnittee was about evenly divided
as to \/hether they should buy them at all .
H.l:'. Jr :
t:eE, the vray I feel is this if the·· can
buy them in Spain, I v:ould l ~t them ~o it .
It is a tou::;h situation. Here is an Ameri ca~ bc.nk that o·.;es ~800 , 000 to a nillion
dollars , doesn ' t it?
Chanber ' n :
.~bout
r: ." . Jr:
And ii' •.:e could helr them clean that si tua tio:1
up for the:nselves and clean up tlle Eanl: and
":Ct cut - -
Chn.'"lbcr ' n :
Yes, that is Tihzt they r.llllt to do .
!:.1". Jr :
•.•• - thir./. v.c ou-ht to do it, because I nec.n
•.11 , the other side o the story i s \'le
c.on ' t r.nnt the }ermans to co.. :e out 1·ri th a
:.tate.:ter.t sa~·in that an Junerican branch bank
\70n ' t ncct its obli~atior.s .
Char.tbcr ' n :
I think it would be better - -
l' • , . Jr :
It isn ' t ideal, but if - they cleaned u~ the
market f,CrC , '.:.'he;:r ;ot .;25, 000 \';orth, dldn It
they?
Chanber ' n :
Thd is all.
H.I.:. Jr :
Let ' s see nhat they can buy in Spain .
Cht.t!bcr ' n :
I \:ill tell tllcm then thnt \,e \i~ll is?ue _a
.
th e:.1 to buy bcl"a
s 1n Spa1n 1f
.., e f"r
~·
~
1 1ccn
t he;r cc..n -et tr en.
that .
'~tcr
241
- 16 110 C.id the;• bu~· the!!' f r o!"?
I think it ~ust - I asked about that d I
.:as told tl:ey neren ' t sure thnt t"e•·a~ ' , t
.a.ue ~..... 0 f,
t b
'
... ;; .Ulcn
...
·-·"
- ers /e '
ut I pre::Uile it uould
co::ll.l throu:;h the 2ank of Spain.
h.' '. Jr :
Let 1 s see r:ha t they can do .
Chru:tber ' n :
I r:ill call them up at once and tell them to
·o aheud .
Cochran :
: thinl· they 1·:oulC. ~ove to co through the
:::xchr.n-e people there .
i: .!:. Jr :
I think it woulc be intercstinr .
'"'
1.~ t hap~ ens .
Let ' :; see
r . 1rce~ s
~ ·oov. t:an;
e; • .;o.rrass.:..,
sai.:. they coul d 1.ork it throu:h
of their brxr.ches if it 1.ere
o us to let them have the dir ect
s.nnlicaLon . ':.he;;· could go to thei r "r;;entine
branch or :n ..l:e Orient. These bel en:: undoubt '1;,- r re conin., froa the Rcichsbank in the
en , but 1.e says that if it i ~ enb~rras,sin;; 11
~.o ur ~nd sets a precede.,t, ~lve . tae:;; tne
"'0
::.:. n throu.;h a br!l.!lch and theJ rall ;;or!: outsite of the l:nitcd States thr ou:;:h a brunch .
IJ •• Jr :
Let them
;;ell :
I
\,'OUla
I think
bnnl: tl.
Bell :
: , .:.•
tr~·
it throuch Spai n.
let Lhe:n do it .
G" •
I~ '
e is -:oin~ to close U.:? hi s
· sn ' t he?
.:.~ ~ liqui~ation .
:: alrcad;· proceeded very far in liquida-
Clrunber ' n :
tion .
242
- 17 L
, Jr :
Lll richt, let ' z try it anrl ~ee nhnt h
Cha:.1ber ' n :
All ri~~t, I r:ill cdl hb up .
:. . ;:. Jr :
~cor~e?
ap:rens .
Haas :
You ,·;anted to be remnded about ti.e freauenc"
of t'tese airplane -•
"
ii.l:. Jr :
Oh ;res , ~eor;;e :.:ead said - he heard :nc sa"int;
so;~ctltin- about it . r:e r:as asl:in- for it"
on the first and t;le fifteenth . "'e thou 'ht
ever,; ree: r:as too often, so I said 11 .ell
I don ' t care , but:: ru. one of th se ' S2--:reef~
fellor:s an : r;ould like to r-et it 2G tines
a year, not 24 times . 11 I ;:oulc ·o alon,. 0.:1
!.he. t ":>~~is . ..:0.a t do :·ou think? u
"'
l{aas :
\ hy not leave the calen.:ar ..-:eek there instead
of the ~irst ~nd the fifteenth?
l ... ·. Jr :
! uouldn ' t ""O don- \-:ith them on that .
ever~' tno r:eeks . ~
Haas :
I think that is better, so your date ic Sdurdt..~' each tme .
:r.::.Jr :
That is ri-llt, every tHo weeks , but he ·,!anted
to do it the first and the fifteenth an~ I
said no , so 'le :;aid Don .::elson of Sc~rs 0 .oebuc:c
rrould approve of it because the"· do 1 t on
13 pcriocl:; of four T/ee::s each.
I said
Haas :
Yes .
H.''•.Jr :
I thi:-:1: that is often enouch .
I!~·.:; :
~11
· -ht T tl.inl· 'hen we l'iill :l.ll be to•. t'l'l · ;. t~lk.~d t~ ·::ajo; Lvon after the
""e .1er • •nd he see;rred- to ;·;an•t t 0 {;C t to"ether
mee~in
u
'
th'! if ;ou ;-;an ted it e•rcr:· \leek, tllej' would
t
243
- l9 -
tr:· to tbe t~eir::, tentatively, he told !!le,
at the :::me tme tna t your report ~"ias tined .
ii. ·. Jr :
Joes t~t :il.jor L~·on mmt it
Hans :
Their i<i.ea nas the first oncl the fifteenth .
H.:·. Jr :
1:eau :;ays he r:ould be deli ~hted to nake it
on a 1:eekl;r basis .
:ver:· other 1:ee!:?
J. •. ·. Jr :
Every other v:ee:: .
liP.as :
F'ne •
•1 •• • .Jr :
\ he!1 are
::eas :
I h:-.vc r;ot the:J all no .. but '/ultee .
n•
• Jr :
j'OU
Okay?
c;oin:; to have iJ.Y labor fi1:lll'es?
I see .
••aas :
i.n.. that nill probably come in this nornin::; •
Joun: :
Did your British table Give
this nornin.:;?
" •-· . Jr :
:.hat I an surnPised at is l'lhat they !wve
o: their orders o': additional planes .
1he;r have just ext ended the business . You see,
practically all of the business they have placed
ir fro:: Or:to':Jer ' 41 on .
Youn::; :
I haven I t cone over it :·ct .
JOU
what you \"ranted
Yes .
~o~e
'i "he, have TJlaced i t - the ·~nzlisJ· , fOU see,
confi entiC.ll;r, have placed ?rde:'s for 38'10
pl~nes additional, but the f1rst of these
delive:'ies be&ins : n October ' 41, ana ~~s
throu~h until :.arc}, ' 42.
ave .;rou -ot a cop;
of this?
- 19 Youn ... :
Yes .
J;; . Jr:
•-b~n ~-ou C? Ul.J to duffalo , you can - it surp!'lsez. ::1e ~n a ·~a-:;, but thn t is the 01a.,. the·•
nre do1n::; 1 t . Are you all right?
•
•
Youn:; :
Yes .
ll:'. Jr:
Should I raise hell at Cabinet about the planes
for Sweden?
Younr; :
I t;.ink you Birht .,.ive 13erle a rinr: before
ih£t .
v
0
1: , , .Jl' :
-
Lll ri.:;ht, ;ou sta; behind and I vlill do it
no·.. •
::erle?
Cochran :
Arthur Loveday, nho is the head of the ~inancial
Con11i ttee o.c' the Lea:;ue, is in tovm and he is
conins in at 11 :30 . I think it would be nice
if you could receive hin sonet~e .
!.ext ;<eek I nill be r,lad to . Isn' t be the
boss of our friend who used to be at Hun:;ary?
l'.e ·,.;orke!l for Loveday, didn ' t he?
Cochran :
T.1nt ic ri::;ht .
n:.:. Jr :
·.;ba tever happened to \'lha t ' s- his- name?
Cha::tber ' n:
Salters?
H . ~: . Jl' :
f!o , he v1as the financial adviser to liun_;ary.
Gha::tber ' n :
Cochran:
Is he an P~erican? He die~ ~o~e tine aco .
the j'oun::;er nan? I th1ru: ;1e is in
Switzerland.
v'h ,
:~oyal
T;,rler .
245
- 20 I h~l?ed him :;et out of S\·:eden .. asn ' t he
coun?- to the ~nited States on ' ur~ent busl·
ness.
~
Coclu~an :
I have heard nothin~ of him.
' ..: . Jr :
Royal T~rler , and he works for
Cochran :
':"1nt is
F. .:. Jr :
I I:ould like to see him next neek.
ri~ht .
:.nj·thins else?
Cochran:
r:o ' sir .
You I:anted to be reuinded about Forrestnl ' s
call :;esterda:· afternoon .
:: . ~: . Jr :
Foley :
:en, it is all ri:.:;ht with ne .
!!.::. Jr :
'i'ius is the question. Forrestal r;ants Cox
for six or seven ·;;ee!:s to help hiJ:l on contracts . Didn ' t so~ebody expound the theory
tha '; ···e shouli hel p then clo the r:ork , provided the men stay i n the Treasur;!?
Gaston :
·.,e did thAt in the case of a Gus tcos man
on ::a ,,·;ell ' s control outfit . ..e persuaded
him he coul d do it in the Treasury 11i thout
1:1ovinr over there .
H•. ' . Jr :
I
~e
•• , 1
J
..,.;
. Jr :
Folej·:
personnll~
is a GOOd
1ate to let Cox .:;o .
1
~an .
Is Cox a~xious to :.:;o?
::o , but he \ioulc, be :;hd t? help him. li~
ua:J.ts to do r~hatever - he 1s a good sold1er •
246
- 21 H.' . Jr :
!sn ' t he do in;; important work here?
Foley :
Yes .
11 . :~ . Jr :
I think ;·;e had better keep him here
you let Forrestal kno·•;?
•
Foley :
Yes .
h. ', Jr :
Simply tell him that - I nill put it this
\.a:' • If he ··:ants part of b.is tine - I cue~s
·,:e hncl. better not .
Bell :
1. ~11 , 't~ is hel:_1ing hi:n,
h1~ a l1ttle . He roes over
Fole;,·:
i ell, I don ' t thbk he has been helnin"'
Bell :
:a.
Forrestal .
ge has been
ill
:Ie is belpin"'
there .
v
•
~el?in~
I•
u
Patterson more than
!.•orPesto.l .
Foley:
~~e Secretar; told Jud;;e Patterson he could
call on him in con..>lection rli th the Vultee
deal any time he wanted to and he has been
\;orkin,: a little bit r:ith Patterson and he
has bt'en doin.:; sone ~~o rk on Nati onal Defense,
on other thb"'s , but I don ' t think he has
really r10rhd"'for Forrestal at all since
Forrestal has been dorm .
H.:·. Jr : .
Let ' s put it t~tis way. If Forresta~ has a
particulo.r contract that he r;ants hw to
heln hi:!:l on he can helo on that end nhen
that is thr~u,.h, Tie shoul d take it u:- each
tine, tL'ltil
see hon it \,orks out . !lor:
v.oul · that be?
'•
\.e
Foley :
r:ell, I don ' ~ th~:lk that is wfs-t ~orre~tal
\iants . ::: th1nk 1f Forre~tal 1ad. , ot h:m
nO\':, at the end of the fl ve or s1X \/eeJ,s
247
- 22 -
.
he. r:?uld take hb over pel'l:l:l.nen tl·
th1nr.: ~7c ;;auld ever -et .JU.m
. b acK, . "!·
.
J~ ·
Foley :
: don ' t
~o~~n ' t ~e~t th~t, u~less it is unfair to
.o , I don ' t thi~{ it is unfair to 'nl· b
de •\' t th " '· th
ln..:,
ey coul d do any more::Iforecau.
hi..IJe
0 'I vi' .here tna:t i.e o.re do in·· for hi h ,.
fc.l' a~ ~nl
d
>'
1'1 e_e, so
h u w~ cry en resronsibllity are concerned
.'; •.r.ve :;ot (). ve::-:· cood l e.:;c.l divisio:t and
•
lJ. lC \;an ted to i.:eln, -::c could do tl·e· ·or'·
e.ll ri :1t.
•
· · "
T
. '. J
Forre~to.~ s<~id, "!f you don ' t let me have the
rr.an,
rr...D o'" consider the.t "VOU are not
coon~r~ t'. -.-. I :•··ill j':st underst:1.:1d. " I
\ Ot:lr cU 'I' .l "l QOl':n . - knou that he 01oul:l
s by t;1ere, a:.•.: ! t:.ink lC is a ""Cod TJ.'ln r nd
I \IOUld liJ:e to ~:ee:;:> hil. :.!'~·th:n"' else?
I.o .
Uas o~ :
Anothe::o arriv:-.1 i'ro:1 Sr.:tzerle.:tt1 iz Leon
.... tcinit:;, the secreto.r.. of lite Opilt"l u. visor:J
oar:l of t'1e Lei) ~ue . ..e helped to ret hi::!
out of th re .
e says th~t ':wi ~zerlnnd i s
gr·etty thot•ou,:IU.y under dom.:.nction of the
..rer;nnns . The/ took about half of the entire
"'a:;olinc stock of Switr:erlan-1 r.nd they took
the entire /.rmy stock and cut the civilian
stack •. a;r dor:n ver:• sho.rpl • •
I looked U"!:l that so- called aviation ~:asoline
thr.t l:ent out undet• :resterda::' s report and
I find, ns :n the other co.se , it n1s motor
rasoline of sbulified octA~e c •ntent ~~d
: th:nk 1 e ,::11· have to r~vise our reportin"'
for:t to shan the three different for:1s of
•usolinc tho. t the State Depr :•tment Control
z· co i::e::;, the aviation !lzoline a.~d the
248
- 23 other s~soline that falls r:ithin the control and ·asoline r::.ich does not fall ~•ithin
t'H' control. The State Denarbaent - l'r1ce
OV(;l' there i!J. the :xport C~ntrol JepartJnent
mmted our help to r.mke that clear to the
nns;:>'"per !llen tkt this so- called aviation
asol~~e that is ~oin: out is not aviation
;asoline . :J:e thou::;ht that you mir;ht respond
to a question at a press conference on behalf of the State Department . I think v:e
had better not handle it i n that v1ay .
n.:·. Jr :
J!o .
Gaston :
That is all .
;{,' ' , Jr :
Harr r that thin· ·,7hlch you sent !lle l ast ni:;ht
on oli, I no...'1 t to conplben t you on it .
~.bite :
~.e
H . ~· . Jr :
.ell, I am just raisin: it . I an takin~ tnis
,,ith ue to t~1e ?resident at 1 :00 o' cloci{,
\.hlte :
·.. e have ;ot a :evised col'~' r:hic!l is
im;:>roved. It 1s ready .
H.:·. Jr :
How (' re ~·ou r;oin;; to :;et i t into m;;r hands?
.•bite :
It is read·· now. It is in the office . ~
nill l>~et it for yoa as soon as you want 1t.
H: :. Jr :
•..hen ·rou co out, and :•hile I a:;1 ta lkin~ rri th
Bcrle: r;ould ~·ou :;et lt so I can have it?
Ohy'?
have already ch.an::ed it nou.
Yes, all rirht .
Oka;r.
sor~e
GllOL'P ?IEBTL:G
Present :
0
~J
,:r .
haas
::r • 'fho::1pson
::r. Graves
~"r . Fole., ..
!:r • . lbi t~
1:r. Cochran
:.:r • Chamberlain
;:r .
1.:r .
YounC"
SchHarz
:'iss Chauncey
H.l'.Jr :
I just thousht you r:oul d be interested some
o~ you yho have been with ::1e si nce the\ec:-inmn;:;, 1n a l et t er I got from Har ry Hopki ns .
(Th~ ~ecretary r ead a personal note f r om
Earr~ Hop~ ins, ~xpressin& hi s re~ret in
lcav1n~ tne Cab1net, and thankinr the Secre-
tar~· for :us previous note resar~ing sane.)
of you i.ho have been \"lith :::,e since the
realize the thi ngs we r:ent throu·h
and the thin::::s the;· said anC. so forth r..n•i ~o
on .
so~e
be~inni:r.:
I ~ot very littl e done o: the thin~s t hat I
tooY over to see the fresicent , but there
are some thincs that are quite imnortant thFt
harpenec • The !'resident announced to Cabinet it is his idea - that 'rom now on, all contracts for the Government vlill be zi ven publicit· . "e is ,..oin"' to anr.ounce it as an
!.dninlstrati on poli~;;r.
Gaston :
Sv·ell ,
H.?:.Jr :
So I think that is fine . He ne¥er menti oned
the Defense Council. he r:as ver~· pleased
Hi t!t what hap:'ened this mornirg.
On :;teel scrap , the;,· recol:lllended t~t v1e put
on an embar;;o, but nobod;,· seeos to
KnOf•
ho\7
- 2 -
to do it and still let Great Britai ha
n ve it,
so Ed, do ~rou r.ant to &et busy?
Gaston :
You ~an do it ri~ht unuer the terns of the
co::tal; issue licenses .
Fol ey :
Issue licenses .
H.1 . Jr :
I appoi nted a conunittee of 7.b.ite and Fol ey and
Gaston to ~ive me the ans\.er .
1
If you (Thompson) 1'ri l1 get a copy of that oil
report that lib.i te had today anc set it out
I
toni ~ht , copies to go to State, .ar, ;.avy and
Interior, anu mark ever:,· ,at;e confidential.
Incidentally, Harry, this is also very confi dential. Hull sa;;rs that if the Japanese
don ' t tire do;-.n, he \,ants to put an e::bar:;o
on siD: fran Japan and put on an economic
bo:•cott ar..C. a loan of b.enty or tnenty-five
.Jillion dollars to China .
·..bite :
If the:· don ' t ;:>ipe dmm?
ll . ~' . Jr :
Yes .
·.,ni te :
That is - are ''OU sure you have ;;ot that
strai~ht? That is terri f i c . It i~ a really
effective measure . An embar,~o on 1mports
ncre from Japan --
H.!-. Jr:
I run sober; are you?
Chrur.ber ' n :
I don ' t kno'.. what he !lea~s b;)' pip in"' dorm, but
if ~e lets ne interpret 1t . . ..
k That woul d be
He does prett; effective wor •
very effective .
this is very coni"iaential.
Then of course - all
H.l'. Jr :
- 3 -
l;r . '. ull said, t~e:>e . ··•ere a lot of people
~ess1n~ arounu 1n 011 . ~he President said
th~t I had been handline all of thiz stuff
for the last six or seven nonths and it
shouli: all clear fro::1 L.e in the future .
II
I
Gaston:
Fro::--. r:ho:...
H . ~.• Jr:
Anythin the t has to do ni th oil, the President said it shoul d clear throu:h me .
Fole;y :
You or the Presic:tent?
H.li. Jr :
Gaston:
That is ~ery interesting .
·.1hlte :
Ho\'i does thut --
:J.aston:
I.e \lill consider the r:.ifferent ;:rades of casol'.ne .
~I . !~ . Jr :
Hl ri "fJt, Lat is as of today.
1hite :
He 'l':asn ' t spec.l,in,.. of ::J.incrds, was he?
!-i,l', Jr :
l.hile I r:as thP.re --
·.,hite :
I think I ou ht to stand i!1 a corner .
~c!mo.rz :
I c1o, too .
I!." . Jr :
h do , 0 u -et that way?
Lis:cn, :ussolini , 0 ".._ ~il on the list?
Do ou ·;:snt to put cascor
h from his bed
"
· hile I r:a.s,. t~ere at 1f~ ~p the Presirlent
~lv• JUtc'l 1n1st.er ca ~ t . n 250 planes
-:aJi, • tha,t . so: .c •ody ha a .e
a•· n.. from. lL- •
1
Youn::; :
:o, not that
~ny .
- 1 ;: ,!'. Jr :
Youns :
ft
I h::.~ n cs.ll fro::t State on th~ t tl''
and - ·ave thera ~n the details . _s a ernoon
J:::. Jr :
l:nd
~h.t> l re~idcnt also said to check l:i th the
~n::;h ~.1, . do the~- vmnt ::_:~lanes to go into the
~ast
_ndles •
.o··:, if nnJbodr Las anj•thin"' terribl·• bnortant ~'H~ su~ sets . at 6 :21. I didn ' t r,et ~er;" fa r -
J~St '-':ve ~h1s to Pr ofessor Cha.:nberlain and he
1.1ll Gl ve 1 t back to nc .~onda.y . He ·:roul dn 1 t
read ~he second page and I £Ot no hel p f r om
the ~Ht..te !)e~art!Jlent , If :J'OU ri ve that back
lo ":C on :on-...ay, that I:18.J .el p you a l ittle bit .
}aston:
You t:!l.J" be S..l!'<•r :.se-1 to read in the '>a.uers t or.:.orroVI th::.t "0~.1 have forbidden a ccrhl n ves~el ,
. _ c ..o··sela:1.d, of Pana;;;anian re :istr~·, to enter
·._ . S. '·~ te~s "or taree ~::ontl,s . !f tha. t is all
r· ·'-t · th ·ou, 1.e arc oin'" to forbid it . It
is because she ,;a '.e a vo;la&~ f r o:1 the Dutch
East !ndies to Livernool and vrith the J.ner~ c~n
fla•· naintcd on '•oth- sides . UnC.er the l arr she is a Pana::tnnian - mu.er the l (n;, JOU ar e
e:tpo... ercd to excl ude her f r oc1 U. S. 11aters f or
th1•ee months and you are doi n:; it .
;,n ri
..._t.s'ton :
H•.'. Jr :
·'.t .
Gayle D.as 11ri tten a fair l y l on: art~cle, ~ !~r~t
r'r~ • ._ , ' 1' ch 'lc as'ced :-!:C to read be.o~e S•• o... n"
t t be bo t'lCred
'
'
•
" '
•
..
u
•
to •·o" , - don • t suppose ;·ou vran o
,,ith it right noll.
'nl· s ~uch to read (inI,ot toni ·nt , I a.:t takinr, t
dic~tinG l~rcc vol~De} .
253
- 5You, (Foley ) tell Sullivan f
t al c to me toni -ht
i !le uants to
see, he can cal l m~ he can call me up - let ' z
Standard :'iwe .
up bebteen 7 :30 and 8 :00
Foley:
J{,l', Jr:
Yes .
Cochran :
r:othi ng .
Schwarz :
i"othins .
H.' ' , Jr :
Philip'?
Young :
·ave . ~s . r~otz "r . Hinckley ' s me11orandum
on plashc planes , ·.,hich you can take with
yo •
J:. ~ . Jr :
I
Youn_, :
.,.... o .
E>tas :
I
i.bi tc :
L C. Lee is un•'ertaki nr; other ncr;otiations
\7ith the Procure:aent Division. :ID.rol d ir~ves
ha•1 his 1an co::1e dorm to see r.1e about it . It
nny be that it will p'rove to have no thin.; to .
do \,itlt China . Are you interested if it
doe:m ' t, in checkin::; the arrane;ements, or does
your interest extend only as he operates in
China?
II •. ' . Jr :
· ,ell , talk it over \'ii th .fir chi e Lochhead.
'..bite :
hav~
:!othi:l::;.
I &~ ~oinv that , but he is operatln~ in South
Anerice .
li. ' . Jl' :
You do ;:hat you think is best, J:arr;;r.
254
- 6 .•bite:
All ri,;ht .
H• .• Jr :
De,ar~e>t
conteu?l~t · n~
·,hite :
~he
!I." . Jr:
LoUt1er, 'larry. ..b.:· ~o • ou r;o into such a
hu~'1e<' voice on the .:.tate Departuent?
1
./hite :
'.ftcP l"hnt you told us this afternoon I am
\xi co
"ln; co e here if the;,· --
il .::. Jr :
The President turned dor.n u synthetic rubber
::::>h:nt in the inited States today, doesn't
1·;~nt it, o. refinery on tin, but approved
buyin...; tin concentrates f r o:1 BoliVla •
•~ite:
On the Costa 1ican --
E,'',Jr :
l!othin:; Has said today.
..hite :
Jon"s sciC. that ;;·ou \!ere inclined to be favorable to the extension of seven r.l l lion, but
furt er details will be forthcomint; .
'1,'
. Jr :
Stute
is
__
~oin · to treat them \'iith reverence .
1;e iz crazy.
fell01 . •
J.ll I did VJas lunch with the
\,u::;n ' t the .m t t er
h. ' , Jl' :
I!ever Llentioned it . Jones didn ' t even know
r;ho Dr , Anderson wa~ , ,_;ha. t country he c~:.as
I
fro::t or r·h:i' he \7 as l!Wl ted ~or lunch .
there . te as!ced ne . Tht;t ~s a~ muchr~!a
•
1m orr . "'lleJ ·;;ant seven :ul llon ... or a
i';'hi te :
'J.'l.d is ri -ht .
H. ·. Jr :
- 11hen he
h e.n Jo ~cs
" f e11 0\1' h' e
' t be !:averable 11
I co.n
t the
a
.
r.al'<ed in the room an ne
255
- 7d.:.dn ' t even know what countr•J• he
C!''le froo
or l7:~o !l.e rlas •
··,!lite :
H? 1w.:• not have :':!lovm v;hen he ce..'le in but
d1d he ~:now i·:hen he 11ent out?
n::. Jr:
'
I told hi:::l.
Professor Chamberl ain?
Cwber ' n:
: othin · O'l this . On this, I assume thet first
?ne is f?r the fu..'l.ds, expenses in this country,
1s all r1:ht , and the second one is doubtful
as to expe'l.ses in the he:n.isrhere .
~.
That is
. Jr:
ri ~ht .
Chamber ' n:
!.nd on the >'lorld outside the heni sphere, it is
no .
H:.:. Jr:
That is
bit?
Che.nber ' n :
Oh, :·es , The second one I thou_:ht I 11oul d
ta::e up ••i th you and see if I can eet a
definite rerort on it, because the french
e.re t;oin,- to be on our necks .
lf .'' . Jr :
'.. ould that help a littl e bit?
Chuber ' n :
Yes , that helps a little . I am really dis appointed because I think --
H." . Jr :
1- e d.:.dn ' t ~i ve it ti:ne and
help
Cllar.lber ' n :
H. ' , Jr:
'l
ri~ht .
bit~
Does that help you a little
:.:r.
Hull didn ' t
'.. ell , I rJll a little surprised. at tha~ • . n~rle
told ~1e he had taken it up thls nornm., 171 th
everyone .
1:r.
'!ull wouldn ' t hel p a bit .
- 8 Chan'Jer ' n :
\. ouldn' t bel_:> on that?
n:~ . Jr :
.'ot a bit .
Chai.lber ' n :
·
.. ould it be proper for ne to take it up
a::;a1:1
\'lith nerle'?
H. 1.:. Jr :
Yes . \e acted as though he never had heard
of it .
Chamber ' n:
I don ' t tmderstand that . Berle inmlied to me
t\at the Secretary approved it . ·
H.! .• Jr :
He said they approved t :1is heraisohP.re, but I
:nean I -ot no help fron him v:hatsoever .
Cila.11b er ' n:
I will take it up r;ith Berle at once, then,
and see if I can see hi m toworron.
H.li. Jr:
Harold?
Yon ( Thom:nson) tell Dan Bell I never got to
tal:: :'inancing \7ith the President at all . Re
can rest easy.
I hope you all have a nice week- end .
Chan"!)er'n:
.aw. t
Youn,.. :
I
".J
Ii.l;, Jr :
is the rna tter' cot a tick?
•.o there is souethins else I just \,~n~ed t~ .
t ell :JOU . I have got a little ~ore ln.: orma ~on
on the Balfour British Pan- kner1can shlp . I
about . t
. · obod"• knew
b
.
is a secret deal n h1cn n
\reor-c ::ead told ne a little b1 t more \?u
1 .
i ~ n~en I convinced hi m it wo~lld ~c.lve · s o\m
• + ff his ;!llnd
•
"
•
conscience if he sot 1 o
d h~ve tine r;rite ::.e
.1 t
ana .~t t; hs!Ldll,
If :toll knoil abou t
a little letter and sen 1 up
r:e\1 York toni-ht .
257
- 9 -
I ..
·....;
Young :
ell, it is just a question of the nll!:lber 0 r
pl c.nes \7~icb. they are ,;etting, ;1hich is three ,
H.:.:. Jr :
·.:ell , it ;·,ill keep . !ia.ve a r;ood t i me in
Buffalo . Give n:' re.:;ards to all the Polac1{s
up there and make sure the;,' vote r i;:ht .
IIEWOIWlDUII JOR 'l'RE PRII!IIDD!:
au-an
ot Oll IUuaUoa la Japaa, o.ruar
Geraaa- Ooatrolled !errl~rz
aaa
!he eeUaa tee glTIIl below 1nol•4• eoat14enUal oa.. obtained tro• BrUhh foTel'ftunt o1l nper'• aa4 froa Aael'loaa
oll uperh ( ltan4&1"4. 011 aa4 ft41wa\er A..oelaW). fbe
trea nrJ 11Uaa\e1 are t.he nnU ot 1a4epea41nt oalo•laUoae
llaeecl oa naaroaa 1our1oa of lafo,...,loa aTalla~ ~ tale
!l'e&IUJ'f,
l!lltua t1on ln Japa a
Ooncl1u1oa: fhe !1'1&1111'7 eaUaatu tha' Japaa hae ntt1oieDI oli, ilt.ho'llt 1aporb, tor dgbt to ten .,ntha ( a t the
preaont r a to of coaeuapt1on). !hl1 ooaolua1oa eo••• to lie
1n aullatan,1al a creoaeat wltb the op1n1on of v. a. aDd IPltleh
oll osporh . fte In Ulh, howenr, tool tha' t.ho •took• ot
llptor p1"04110h a re •tfloloa' tor onlJ 11:1: aoatba, wllllo
tho etoroa of ,_ol o1la are a41qt~ato tor a •oh loapr per1o4.
r
l.
Preooat ltolkl
!!.! f!Jlll',.
!Piaourruu. . to
~
)0 alllloa barrel•
20- 25 alllloa
'barrell (not 1nolll41ng Japan•••
l aTJ etoo'll:e on
wh1oh th•T bad no
eoUaatu)
JPl thh !!!!.!.:,.
I!J!II'b
)2 alllloa barrel•
( 1nolu41DI l aTJ •~ok•
ot 10 a1111oa barrelt )
FILE COPY
259
- 2 2 ' Jap... ae Pro4ucUoa
( Annual, 1nclu41ng {~ria t roa 8akhal1a)
trea!J!!'l eaUaate
~~nperb
tnanq uUade
~
(lo 1D4ependeat
lafoi'II&Uon)
2' allllon barrela
~-
o1l experh
!!!!.!:. experta
lrl Ulh
23.5
allllon barrela
Japanue Olarreat Coaft11PUOD (Aanal)
IN&Arl utiaa'-
!:!:.. !!! upena
lrl,l&a
35
3~ a1ll1oa
34
a11l1on barrela
~
exp•r'•
alllloa barrela
barrela
IUaaUoa 1Jl Chra&Jll
lrlUah de'-1114 uU•'-• oa Gel'lld aheb an " ' Jet
all n•ailable to •• b1lt thea ooacl1laloa oa ~ Oeraaa ell
altaaUoa 1a that bJ A,prll, 191!-1, the lel'W&Il oll eUuUoa wlll
M er1Uca1. abe wlll 1»1 t.Ma U.n ...a ap aYailal»le reae"..
1.114 her c•rrent wppl1ea wlll be n'bataBUallJ 1..1 tlaall her
aee4a. ~· oonolullon ...~. ao ~trloua 1JIIl&11'MDt ot Ml'
proclaoUoa fao1l1 t1u or eovoe of 111PP11 wt anUolpatll a
nbdaaUal rlae both 1n O.l'll&ll producuoa and liiPOrte tro•
JIIIMala. IJAJ t ..tneuoa of ,toob or plaa' faellUlee bJ
the 11'1 Ulh .ur woroe wlll 110n the date torward· treaeurJ
taU . .tee place the crl Ucal date two aontla later, 1.1., June,
19~1. ftlaae ed1Mttl u.7 err u •ell ae uo 110ath• elther
W&J, owla& to the anoer,alntJ of the rate of ooaaaap,loa•
•
260
- 3 l.
trea!U'J . .u.'-
25
~ !!! l!p!Ph
JO aillloa barrele
.tllloa barrele
2.
Present Stooke
(aa of laao l, l~)
8~oka aogull'e4
bz
Gei'IIU,JJ-oe lua4e4 Aftu
b'tfier thaD.
~ a1ll1on barrela
3·
'
"&Hard ~ eaUaate
arUhh eeUaa'-
3 to
~Uah ~ l!p!l'h
lot 1,, ,.011._.
ll allllon barrel•
Ssoolta !CKI!lre4 1a h'aaee
Both lr1 Uah an4 !Sall4ard 011 oft1e1ale bel11Yt Prenlh
lrU1eh ttUMtl Geraaat ob\&1814 11 . . t.baD 2 a1ll1on ban'lle 1n fruee.
ttf>okl WIPI lerpl.J dll\roJid.
~.
ltoolta 1a Ua1J
trea!!J7 I I U • ' -
!!:_!:. !!,!
10 llllllon barrela
Jo 11Uate
5·
lrlUtb ~ e!p!l'tl
I!J!!I'SI
1& a1ll1oa barrelt
(AI of hat)
nppl1e4
'fo\&1 atockl now an1lable '<I
0e!'!!lll and I\all
Anraa• of aTa1lable e•U•t•• -
'·
rro• ltuaania
• u.s.s.a.
•
•
Petrolia• producUon
8JatheUO Pro41ao Uoa
orotal
Stooke now a Ta 1lable
FILE COPY
~5 alllloa )arrelt
261
---
1·
th1a la a ••17 rough eatiaate, balld oa an 1Dcreaae ill
e.raan eoaeuapUon ( oTe:r' noraal peaoet1• neetll), no iftC:r'eue
1Jl Italian requirements (because of curtailed ehillan 1118),
aa4 a 4eoreaae la conquered terr'1toriee 1 con.aaptioa to oDe~1'4 or aoraal.
(!he 'freaeurr &D4 the lriUah apoee ~t
ooaqaered terrltorlea wlll be reetrloted to abo1lt oae-third
their nor-aal oll coa~aptlon.)
j
BDI&WLU:esh
9/6/40
Fl IE .JQPY
262
Septe&ber 6, 1940,
S'l'HCT!.Y
CONl'IDL~'!lAL
_, dear Mr. Secretary1
By direction or Secretary Morgenthau, I in-
close for your confidential information copy or a
ae=orandum addressed by the Secretary today to
the President on the subject of •summary or Oil
S1tuet1on 1n J epan , Oer!IMy and Oer:um-controlled
'
Territory. •
Very truly yours,
($ GNED'
• N. T' IO"'PSOI'
Adm1n1•tret1Te A..iatant
to the Secretary
The Iionorable
The Secretory of the Interior.
WNT : nms
263
S.pt.e.r 6, 1940
STRICTLY COtiFlD!liT:W.
KJ
d.ar Kr. Seoret a171
Br direction of Secret a17 Morgentb&u,
I
inclole tor rour confidential intonaation cow ot
a aa.orandua addreeeed b7 the 8ecratar,r todaf to
the Preaident on the subject ot
•au..ar,
o! Oil
IUuatiOII in Japan, Ger.un7 and Gen1Ul-Controlle4
Territorro.
Ve17 t rul7 7oun,
Adainietrat ive 1e•1•tan\
to th• Seorn&r,r.
The Honorable
The Secretar.r ot the laYT•
liNT: nme/ dm
264
September 6, 1940,
STRICTLY COJIFIDJl\TUL
Jq dear lllr, Secretary:
r
By di rection ot Secretary Morgenthau, I incloee tor your confidential inrormati on cov.r of a
..aorendua addreee84
by the Secretary today to
the Pr. .ident on 1he eubject of • SUI!IUry of 011
Sit~t1on in 7a,an , Ger:any and Ger:an-Controlled
Terri tory" •
Very trul.y youre,
Ad -1n18tret1Ta Aeeiatant
to the Secretary,
'l'he Honorable
The Secretary ot St ate,
r~
WNT:nma
Jr.
~ r~)
S.ptlaber 6, 1940
STRICTLY CONI"IDUrllL
11.1 dear Mr. Secreta171
B.r direction of Secretary
Wor«en~hau, I
inclon tor 7our conti<tent.i.al 1nionaa.t1on cow
or
a meaorandwa addreaeed b7 t.lte Secretary toc!ay to
tbe Preetdeot on tbe .ubJect ot 1 Sulm&T7 ot Oil
Situation 1n Japan, O.ra&n7 and Genu.n-Controlled
The Ronoreble
The aecreta1'7 of ler.
WNT: nma/dm
TREASU RY DEPA RTMENT
IN TER-OFFICE COM MUNICATION
DATE
TO
Secretar~efthau
FROM
Mr. Ha~ ·
SUbJect:
September 6, 194o
Developments in the High-grade security Markets
~tcwsmm · I
J.F.S. m •o,. l I
---- ~
SUl.fMARY
(1)
(2)
Prices or United States Goverrunent securities declined
on balance during the first half of August; but since
August 17, have more t han recovered these losses
(Chart I). The average yield of long-term Treasury
bonds decreased 3 basi s1 points to 2.20 percent between
August 1 and yester~y s close (Chart II).
The market f or Treasury bonds ha s recovered about threefourth s of the losses which it suffered between April 3,
the date or t he recovery high before the invasion of
Norway, and June 10, the date of the subsequent low
(£hart III). Treasury notes have recovered only about
~ perc ent of t heir losses since April 3 (Chart IV).
The cost of bor r owing money on a 20-25 year bond would
be no higher today than on June 5, 1939 , the date of
the all-time high of Goverrunent bonds; for a 10-12 year
bond it would be about 1/S or 1 percent higher; and
for ~ 5-year note, about 1/~ or 1 percent higher.
(3) High-grade corporate bonds have moved within a narrow
ra e since August 1, but show a small net gain for
tha, eriod (Chart II). Municipals are now at a new
all-time high (Chart V). T~ vo~em~!tn~~ ~~~u~~~~r,
issues during Aug14st was em
ings moved slowly.
ls have gained on balance
British 2-l/2 per cent ~)so Canadian and Australian
sharply sinoe the middle of
sines Augus t 1 (Chart
dollar bonds have risen
August (Chart VII ).
1
(~)
If
I
267
Secretary Morgenthau _ 2
I.
United States Government
Securities
Prices ot United States Go
on balance in the first halt orv~nment securities declined
August 17 to levels somewhat higher~~ but have rallied einoe
n those obtaining on
August l (Chart I). Price chan
classes, in the following table~ee are shown, by maturity
Average price change
August 1 - 17
August 1g September 5
(Decimals are thirty-seconds)
Notes
l to 3 years
3 to 5 years
.OJ
.01
+
.o6
+
.12
+
.2g
~
5 to 15 years to call
15 years and over to call
.14
.21
+ 1.06
The average yield or long-term Treasury bonds was 2.20 percent at yesterday's close (Chart II). This comparee with 2.23
percent on August 1 and with a high tor August or 2.2g percent.
Trading in Government securities during August was relatively
light, but the Treasury notes maturing in December were in !air
demand tor their rights value. The Federal Reserve Open Market
Account since the end or July has disposed on net balanoe or
about $14 millions or Government securities , the greater part
ot Yh1ch amount consisted of the December notes .
II.
Long-term Perepective or the
Government SecuritY Market
The market tor Treasury bonds has now recovered on the
average about three-fourths or the lose (measured in terms or
secretary l·iorgenthau - 3
268
'
yields) WhiCh it SUffered between its high f
3 and its low on June 10 (Chart III)
Th or the year on Apru
somewhat Blllaller percentagewise in the mi~ecovery has been
than it has been in either the short or lo em~~g~ of Jnaturitiee
notes, on the other hand, have recovered o~y abo~tt~gs· Treasury
the average or the losses suffered between April and pJerce nt on
(Chart IV).
une 1 0
3
Although price movements or Treasury securities over short
periods of time are often more important and always easier to
interpret than ohanges in Yields, the latter become more important and easier or interpretation as the period under consideration becomes longer. Price comparisons covering periods or a
year or longer lose almost all significance, while yield oomparisons over suoh periods are often very illuminating , as they
indicate the fluctuations in the cost or borrowing new money.
This is illustrated in the table below, which shove the coupob
rates at vhioh Treasury securities of selected maturities pro ili!1could bave been issued at the dates or various turning
points in the Government bond market during the past fifteen
months. These dates are June 5, 1939, the all-time high of
Treasury bonds; September 25, 1939, the low following the outbreak or war; April 3 194-o, the high point in the subsequent
recovery; June 10, 194o, the most recent low point; and September 4 , 194-o.
5-Year
Note
10-12 Year
Bond
20-25 Year
Bond
(Percent)
June 5, 1939
September 25, 1939
April 3, 194o
June 10, 194o
September 4, 194o
3/4
1-3/g
3/4
1-1/41
1-3/42-3/41-3/4
2-1/S
1-7/g
2-3/S
2-7/g
2- 3/S
2-5/S
2-3/S
Secretary Morgenthau -
4
269
The relative degrees or recov
classes are well illustrated by th!ri ~~ different maturity
that a 20-25 yea r bond could Probably\ e. It Will be seen
r e issued now at the
s81!le coupon rate as at the beginnin
year bond would probably require a ~0 ~ o!Pf/11, While a 10-12
and a 5-year note, a coupon 1/4 Percen~ highg Percent higher,
er than in A.Pru .
The coupons which WOuld have been neoe
higher than those Which would have bee:eary in April are no
in June 1939. (The prices or the outs required at the high
nearly corresponding to each or the tw;ab~i~g securities most
t~ siue!d in the
table were slightly higher in June
1939 th~ n Pril 194o,
but not by a sufficient margin to change
which it would have been necessary to place oncoup~n rates
new securities.)
III .
Other Domestic Hlgh:grade securities
High- grade corporate bond prices have moved w1 thin a
narrow range since August 1, but show a net rise ror the period
as a whole. Our averag e yield or such bonds, moving inversely
to prices, decreased from 2.82 percent to 2. 76 percent at the
close yesterday (Chart II).
Munioipal bonds gained ground during August. The Dow- Jones
average yield or twenty 20-year bonds, published weekly, was 2. 51
percent on Saturday August 31 - - a new all- time low yield, and
This comparee with a yield or 2. 54 percent
high price (Chart
on August 1.
vL
Ne)r corporate and municipal bond offerings in the New York
market aggregated lese than $100 millions for the month or
August, according to \'l'a ll Street Journal tabulations. This 1s
the smallest monthly total this year, except for May and June.
Somewhat more than half of the total was accounted for by three
corporate offering s, while a ~30 m1ll1on·s issue by New York City
oonsti tuted the major portion or the month 1 a municipal offerings.
I nvestors have shown only slight interest in last month ' s
The three largest offerings, one municipal and
nev Offering s
two corporate • are reported to have moved slowly. This aghppe~rs
es
to have been partly because they were not or the very
grlld.e , and partly because t hey were rather fully price •
r
3/4 percent,
illions
to
30 2-percent
rrom or
The New York City offering ott "630i 111ld
1
rdi • to the Wall
- to 30- year serial bond s prioed 0 Y e
was made on August 7, bu\ac~ouns~d at the end of
95 Percent,
~·treet
Journal nearly $6 millions rema ne
'
the month.
secretary Morgentbau - 5
270
The two large corporate ieeuee con i t d
$
or 4 percent , 25-year firet mortgage bo~d: ~t ~~ ~2 millions
8
Clinohtield and Ohio Railway, offered at 102-l/ toa~;~:a~bo
3. g4 percent , and $25 millions of 3 percent 1 2v
'!db
ut
• 5- at
,ear98 eto entures
o.#' the Cel aneee Corporation or America, o!!ered
yield
about 3.17 percent. Both moved slowly from the hands of yndicate dealers.
s
IV.
Foreign Government Securities
British Government internal securities have gained almost
continuously sinoe the first of Auguet. Console closed yesterday. September 5, at 74, to yield 3.3g percent, as compared with
72- 3/4, equivalent to a yield of 3. 46 percent at the beginning
of August (Chart VI ) . The British 3-1/2 percent war loan, vi th
no fixed maturity, but callable in 1952, was quoted above par
during the greater part of August, and closed yesterday at 101-1/2,
to yield }.44 percent.
Canadian and Australian dollar bonds have gained sharply
ainoe the middle of August (Chart VII). Italian dollar bonds
have moved very little during this period, and German dollar
bonds have declined slightly.
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278
ATP
Dated September 6, 1940
Rec ' d 9:10a. m.
7th.
SECRETARY OF STATE,
WASHINGTON
879 Sixth.
From Commercial Attache.
Weekly financial.
Shallghe.i open market
foreign exchange rates continued decline toward end of August and early
this week to lowest level since ~ fifth due to speculative and merchant
demand, however rates slightly recovered past two ~s due reported
improvement in French Indochina situation as maqy over-bought speculators
liquidating t heir positions.
Interbank spot selling this morning around
five five sixteenths cents and three one half pence (cross parity United
States dollars three point six four two five) having a high during week
of five thirteen thirty seconds and three nineteen thirty seconds and a
low of five three th irty seconds and three seven sixteenths, September
delivery same as spot, October delivery one thirty second cent and one
sixty fourth penny lower.
Chinese financial circles believe that owing
to possible further liquidation of large over-bought positions (estimated
over United States dollars four million) rates near fUture
~
be firmer ,
but ow1 118 to continuous import demands higher rates not eroected of long
duration mrticularly because of recurrent rumors of pending establishment
of new central bank qy Nanking regime.
Other quotation• t his morning;
gold bars around yuan six two hundred having a high duriiJ8 week of six
four three five .
(END SECTION ONE)
BUTRICK
27S
ATP
PLAIN
SHANGHAI VIA N. R.
D&ted SepteMber?, 1940
Rec ' d 9:15 a.m.
Secretary of St&te ,
Washington
879 , Seventh (SECTION TWO)
and low of five nine nine eight naught.
~ Japan notes declining due
smaller demand and increasing supplies yen one around Chinese yuan one
point five six having a record high during week of yen one for Chinese
yuan one point eight two , military scrip higher yen one for Chi nese yuan
one POint three five , wei wah cash discount three point four percent
indicating abundance of cash, Central Bank gol~ unit rates yuan two point
seven naught seven or United States dollars nall&ht point six six, Shanghai
customs for duty
~ment
purPOses gold unit for hua hsing yuan two point
seven ninP four or Chinese yuan four point eight nine naught because hue
hsin~
yuan commands today a premium of seventy five percent over Chinese
yuan , Tientcin exchange rates lower in sympathy with Shanghai rates five
cents and three nine thirty seconds pence (cross parity of United States
dollars three point six six) having a l ow of four seven eighths cents and
three seven thirty seconds pence , Tientsin Shanghai remittance charge six
point five ~rcent , Tientsin Federal P.eeerve Bank yuan nine two poi nt six
f ive for Chinese yuan one hundred.
Yester~ ' s
closing quotations :
Chinese Government bond nrices now reach i ng highest since beginning of
year average five six noint two five, Shanghai general stocks higher
avere&e two seven eight noint two naught , Shanghai rubber shares weaker
dollars exchange rates
avere&e two nine o!le 'POint six six , Hong Kong
t hirty one thirty aecon.U
twenty two seven sixteenths cents and four t een
280
- 2 -
pence (cross parity United States dollars three noint five nine seven
five) .
Ministry Finance Chungking denied press reports stating Chinese
Government banks note issues now over yuan six billion.
Ministry states
note issues outstanding end June this year sligbtq leas than yuan four
billion.
llinistry Finance Nanking regi.J:le announced ita banking policy
as follo"s , (firstlj-) provincial banks to be devoted to economic reconstruction and not to operate for profit , (secondq) more county and
municipal banks to be created, (thirdly) establishment of more banks
devoted to industrial and agricultural developments to be encouraged
and further
establisb~ent
of pri vate commercial bgnka will be discouraged
owing to eriatence of overwhelming number of commercial banks at present .
Inform Commerce. (END MESSAGE)
IIJTRICK
CSB
.
COPY
281
PIAIIi
TOIYO VU. SHANGHAI & N.R.
Undated
Rec'd September 6,
19~
3:30 p.m.
Secretary- of State,
ftl.shington.
Attache Commerce .
"12, September 3.
MaJor developments past week atfecting
financial economic conditions were:
Premier 1 s statement twenty-ninth defining purpose and
urgency- of new political structure; departure economic ahlion
to Netherlanda East Indies headed b;r IUnister Commerce Xoba;yaahi;
announcement more rigid price control for yen bloc trade; definite
indications extension atricter government control over numeroua
industries and tunctiona of trading organization• and 1nd1vi4ual
busineas concerns.
Last named injected considerable uncertainty
and appreheneion buainess circles as reflected in unuwal
weakness Tokyo stock market Wbere is.ue Tok;ro exchange new
dropped from yen one two six point thirty- one twenty eighth to
record low one sero nine point fifty one September third.
Effective September second Ministry Commerce ordinance
.ubatantially tightened control trade within y-en bloc by
banning all individual transactions in import and e:xport
oo1111110d1t1ea
282
- 2coaoditiea and plAciD& w.ch traneacttona Ullder control ot
Jedaration :&aat .t.aiatic E:~;portera laportera .t.uoc1at1on, &lao
pricea will be fixed b;y IS&IIIe l'ederation and extra profit
realized will be tunded on a pool account qate11,
Senral
projecta reported tor more atringent control raw ailk
illdnatr;y includin& one plan 111bject dlk egga and cocoona
to atrict control but onl;y reg iatration qatem tor raw ailk,
Another waa deciaion reached b;y group large reelera to
reatrict Mrltet 111ppllea raw ailk.
Another plan annouoced
b;y Silk Bureau Williatr;y Agriculture enviaagea mrked incraaae
production cocoona tor •uutacture wool 111batitutea.
:rillall;y
announcement OoYernment proclaaation entorciac be£illllinc
October tirat compulaor;y aU:in& ailk on baah
-.n.wa thirt;y
percent b;y wei£bt and ailli.ua twent;y percent with ataple
tiber, ra;ron, wool and cotton both in apin.niJI& and -YiDC
llbich aaaaure eati•ted inoraaae annnal conauaption ailk b;y
about one hUildred thoua&nd 'balea.
Gonrn~~ent
Trade reporta inoreeae
ailk purchadnc operationa han cauaed hea't7
accumulation atocll: and baa untaYorabl;y influenced price, aa
remedial meaaure Oon l"lliHnt reportedl;y decided ban Indnatrial
Bank Japan malta apeoul adYallOe ;yen thirt;y aillion to I~~perW
Silk Corporation for purchnae raiainc liait raw ailll: purcbaaea
operaUona.
Winiater .t.criculture r eportedl;y plana increaainc
COYernaant rice boldine• to about one two fiYII aillion buabela
order aeet 1noraaeed coniiWIJ)tion deMilda.
atWater anDOUDOed
pr..e.D.t
283
- 3present haneet conditione indicate norml crop.
Government new
system for control collection distribution rice goes into effect
September 10.
Domei reports rayon yarn e:.porta July represent
drop fifty per cent compjune result market decline aales to Indi&.
R&yon Association and Ra;yon E:.porters Aaaoei&tion have reportedly
decided reduce monthly production e:.port ra;yon yarn and miacell&neoua
\
rayon goode to twenty thouaand cases in September and October, also
fixed minimum quotations on e:.port rayon yarn at yen aevent;y per
case.
Some improvement anticipated in cotton goode e:.port for
September October based on prolongation European war and seasonal
increase in demand abroad, e:zperta anticipate September shipments
rill approximate one aeven zero million square yarda.
Joreit;n
trade August empire preliainary read thousand yen e:.porta three
one seven six nine three declines nine percent compjuly six
point seven percent comaamper, imports two
ei~t
six two nine
four, gaina seven and thirty seven one half percent reepectivel;y.
Unofficial reports indicate rise b;y two point three percent in
liTiiJ& coste during July compjune, zero point eight percent
increase in wagea and one percent drop in wholeaale prices.
However, official figures still unavailable.
Pres• reports
indicate production ammonium sulphate during 193~10 fertiliser
:veer
totalled nine nine thousand tone, decline fifty thousand
tone from acheduled output and fift;y aix thousand tona comaamper.
Decreaae attributed to shortage electric power during laat
qa&rter
1939. Winhtr;y Finance announced govel'lllllent '• incoae
dllrint;
- 4chlriut; 1939-lio fieea.l
)'ear
yen four point ninety aenn billion
e3PBnd1turea yen four point forty nine billion,
Two major
increases occurred in provisional profits tu and income tu.
linance Winhtry also announced national aaviDgs firat thrse
montha current fiscal year reached yen three point three
billion interpreted indicative yen twelve billion goal may be
attained.
Tokyo metropolitan police announced ga1 oline
rations September followa:
I'
hire cars forty fin gallons, ta%1. 8
sixty one, large trucks one zero one, medium ailed eight;v seven,
small trucks fifty four, prhate cera seven. Preu reporh
\
llini atry Commerce decided e:z;pend ;yen three point nine llillion
l
I
in nba1d1ea to alumiDWII IIIUIUfacturers at rate ;yen one five
zero par metric ton over fixed qnota order encourage production,
foreign e:mhan&e rates unchanged,
lla.nk note circulation J.ugoat
thirty first ;yen three five one eight million, increase two two
one 111llion over previoua week:.
Wone;v rates somewhat atroDt;Br
with indication that market will reJnain tight throut;hout
September due anticipated demand for about yen five two aix
million between September first and twent;y fourth.
Industrial
ahara pricea August thirty firot average eighty five point
eight aeven index eighty eighty point zero seven, week average
eighty five point
1 ixty
two index eighty aeven point eightftwo.
(END) Signed Williama."
INFOIUI COIOO.lRCE
GBEf
OSB
c 0 p y
285
23 WALL STREET
NEW YORK
September 6, 1940.
Dear Werle:
I have Just been over to the Federal Reserve talking
to Mr. Knoke regarding our
fr~nc
license problem.
As you know, Morgan & Cie. did not file an apnlication
to remit
fr~cs
to Paris for our own needs aa our situation in
franca ia perfectly liquid at present.
However, one of our aub-
stantial franc aaaeta on which we are counting is some franc
credits we have granted to French subsidiaries of American
tions and formally guaranteed by the latter.
corpo~
The total of these
credits at t he end of July amounted to over Fee. 115,000, 000. Un-
'
fortunately, owing to the interruption in the mails from Paris,
we have been unable to obtain more recent figures, but
~
imnression
is that these loans hcve been decreased through collections in
France during the
~st
month.
Woat of these loans are already past due and therefore
we have the legal right to call them and to re~uest the American
guarantors - all industrial companies - to remit us the francs in
re~ent.
It would then be up the American companies to file ap-
plication for nermission to meet their obligations to us. We are
reluctant to take such a drastic step as we hope and expect that
in the coming months t he French subsidiaries will be able to ~
om their own resources, and
of these credits fr
force tbe American comneniea to
we naturally would not lilre to
oft the major
~t
23 WALL STREET
286
- 2 -
buy more france thiUI they me..v eventual}¥ need.
I am outlining this situation to you to inquire whether
the licensing authorities could give Uor gan & Cie.
ao~e
aaaurence
that, if it should devalon that it was necessary for ua to call
on one of core of the American guarantor companies to remit ua
franca, (owin~ to the fact thet it had become clear that their
French subsidiaries had exhausted all their own r eeoureea) a license
would be granted to the American
com~
to remit the france to ua.
Aa you know , Henry AlrX8Jlder and I are l)lannil!f; to come
to Washington next
Tues~
to diseuse aome other of our nroblems
with you and Profeuor Chamberlain and I ho):lll that in the meantime
you J:I8Y have the opportunity of aub111itt1J14:: the above conaiderationa
to your colleagues.
I truat that they will recognire that the
attitude we have adonted in connection with these guaranteed credita
is baaed on our deaire to nrotect , ae far as noasible, the American
industrial comnaniea who are the guarantors.
Sincere}¥ youra,
(s} Bernards. Carter
Uerle Cochran, Eao .,
United States Trenaury Department ,
Washington, D. C.
c 0 p y
bJ
DEPARTMENT OF STATE
W ASHING TO N
In reply refer to
EA 840.51 Frozen
September 6, 1940
Credi ts/534
The Secretary of State presents his compliments to
the Honorable the Secretary of the Treasur y and encloses
a copy of despatch no . 3330 dated July 27 , 1940 from the
American Consulate General, Shanghai , China, regarding
a request for the release of certain French funds held
in the United States.
II
Enclosure :
From Shanghai,
July 27 , 1940 .
289
-2-
A representative of the National City Bank of New
York in Shangh a i has informed this office that his bank
has transmitted to its head office in New York the requests of several French firms and individuals for the
release of their "frozen" accounts but that to date no
French funds have been released,
This Consula te General is uninformed in regard to
procedure for presenting to the Treasury Department
applications for licenses to \fl. thdraw 11 frozen 11 assets in
the United Sta tes . It is therefore respectfully requested that it be informed whether the foregoing information is adequate for a consideration of the present
case or whether some other form of application should be
submitted by Hr. Theuriere.
~he
Respectfully your s ,
RICHARD P. BUTRICK
American Consul
290
JI
GRAY
(Paris)
Vichy
DatEd SEptEmbEr 6, 194 0
~Ec 1 d
~f
SEcrEtarv
11 : 50 a . m., 7th
S tatE
~ !a :::}'_J_ "lgton
512 , S Ep tEmbEr 6, 9 p . :.1 •
:·c.E
~- -E
TREASURY FRO}' ;·ATT:!E''I S:
Pl ~ e.s E co!!llT!unicatE thE fcllovn ng to H.
:r a t:.o~al Ci ty Bank ,
pot:r : E ':o
with o:'::' Er
·-~ E!'CE
~o
from PEarcE .
"Ba:1quE ilationalE
acquirE businEs s cf l'ati onal City Bank
A.~Erican
on thEir board
by Exc J.·cd i"1g bu1lding a.'1d bank !JrErrisEs .
~1adE
"a r;; cash baJ o.~<:E 1n stcck .
CO!~vE r sa t :!. :ms
ShEpErd,
Et 1 1 IndustriE h avE a"lproachEd u s
(F r anc E ) a:1d n ErsonnEl with
bE
c.
Aft~r
PaymEnt to
m'?::Erous
r:ith Gc:ruun author ltiEs FrEnch and
A."lcric ar: o:'f ::.ciuls and frlE;,ds havE arrivEd at firm
Yllll b E
r:; r~ a tly
rEstrictEd 2f :-.c t complEtEly arrEstEd
for :!.n( E f:.~·n tE p;;riod :9rovidEC: GEr".Jan Econo:'!!ic systEm
prEVBllS .::=opE.
BEliEVE WE n:ust dEC l dE i mmEdiatEly
u pon onE of t wo following ccursEs; (first) dis posal or
liqu1da t 1on
JI-2 ~'l5 12, 3~~ te:mbe:r 6, 9 p . ~ ; fro~ (Par~s) V~chy
liq•.1 ida t!.:::n of bus1.ne: ss or ( se:ccnd) i>TLnEdia te: drastic
re:trc ·1c:.:·.e:'1t of pr e: s e:nt organizat~on and Exne:nse:s and
re:t a~n
u al l
s t aff or age:nt sole:ly for purpos e: re:pre:-
se:nt::-.t 01·, t ot nke: advanta~e: of future: possibilit iEs
sl,ould t' e:•r c.ris e: ,
:Se:l i e:ve: bu1ld1ng :nust be: cons1de:re:d
se: pr.r=tte:ly ".ntl consEquEntly \'IE ere: c:mtlnuing conve:r s r.t
n::: c.m1 1nve:stigc.tlons pre:vi·.msly indicatEd .
As
nnr t v a·r.~o·~ 1nit1c.te: e: c.rly conve:rs".tlons re:con~e:nd
;;ot•r
1.
Edi~.te: .:able: re:action i:1 :;>r1nc1ple: through
HATTHEV/S
CSB
....,..
o
292
RDS
GRAY
BE:U.IN
~Bt<d SEptErehEr E, 19 40
"'Ec ' d 7 : 05 p , !:',
SEcrEtary of StatE,
\.ashingto:1 .
3916, S<ptEmbEr 6 , 1 p . m.
·~ 3668,
August 21 , noon .
f'O::l ':'REASl'RY •. ~OM .tilTH ..\ND FOR DC:i AP.l -
•s
E?OR;•.A nor .
'L"lE
stEady Expansi on of ~Eichs ·e.n..c crEe!t an1 notE
circ~la tion
.. hich ~.s.s intErru...-tEd
.J'f
a sli;mt rEc<:•sion
in July (sEE C::mba:>~y ' s :io . 2990 , .'\ ~rust. 5, 5 ,. • ~.. )
was rEsur.:Ed d:.:rin: «ugust .
:hE total
or
investmEnts
(hold1.n;:;s o::' SEcuriti Es, commErcia: ana ':'rEasury bills
anC:: loa"ls
millio!'l
r;ar~c8
July 31 an1
of
collatEral) stoo" at a
O"l
as
:!.~233
~~:i sc EllanEous
com~ar;:d ~tith
nr•1
high o! 13396
13163 million
millior: :narl:s on JunE
~9 .
y,:r.r.{.~
en
ThE holdin;.;s
assEts \"hic!1 incloc E dirEct cash ad-
vancEs to t!1E REiCL stood at 1851 million ~arks a: comparEd\ ith Hol4 million rr.ar':s on J~ly :!1 and 1953 r.1111cn
n:arl~s on JunE 29 .
As usual thE c:pans !on in invEstr.mts
,.. as :nainl:; ce.us EC by an incrEasE
_:1
thE holciings of
cor.=.Ercial anC:: 'Ir Eas=J bil~s ·-bic!'. at ;..'lE md o!' August
::toed at 12891 million x::arks
a:;
cccparcd ·d th 12613
n:ill1on
2S4
DEPARTMENT OF STATE
WASHINGTON
In reply refer to
EA
September 6, 1940
The Secretary of State presents his compliments to
the Honorable the Secretary of the Treasury and encloses
a copy of a translation of a note, no. 56, dated
September 4, 1940, from the Ecuadoran Embassy at liaehington,
regarding the application of Senora Leticia de Cordovez
I \
for the release of certain funds held in the United States .
Enclosure:
From Ecuadoran Embassy,
September 4 , 1940.
''
295
TRANSLATION
Embassy ot Ecuador
Washington
The Ambassador ot Ecuador baa the honor to present
,.
his compliment s to hie Excellency the Secretary ot state
l
and, in contirmation ot the request made to Mr. Robert F.
Woodward ot t he Division ot the American Republica, states
that he would a ppreciate it the Department would take up
with the Treasury Department the possibilitJ of facilitating
the consideration ot the a pplication which the lational
City Bank ot New York presented to the Treasury Department
on August 8, 1940, under application no. 7263, through
the Federal Reserve Bank, with a view to the remittance
b7 the National City Bank ot the amount of S2,500 to
Seftora Letic ia de Cordovez, at present in Toulouse, Prance.
September 4, 1940
No. 56
RA:RFW:SJN
9/5/ 40
-
Treasury Department 296
Division of Monetary Research
Date Sept_, ).G1__
To:
HE:ADQUARTERS
--;,.,_._.....,.......,
... 19 40.
Secretary Morgenthau
From:
FrOill: Spagent, Sha
To
The Secretar
Message fr011
Appended is the tel egram
which ~iss Chauncey had in h~ r
files. I presume this is the
one you r efe~/to .
The follcnrin
. war
materials recieved
ar;
1000 planes, 200 t
.eters,
1,200,000 rifles,
t of them
being at the front
,ext,
month, 120 air ad'l
100 more planes by
MR. WHITE
Branch 2058 - Room 210
year,
se
forty per cent of Russia 1 s production going to Germany and
sixty per cent to Olina..
Chinese military forces: army, 2,400,000 equipped fighting
soldiers, 1,000,000 n611' recruits one third trained as replacements,
750,000 guerrillas, 1,200 fighting air force 0000 land air force.
Japanese forces: thirty three corps in China, seven corps in !lanchuria,
ro,ooo
sol~ers
to the corps, three other Japanese required
for each sold ier. Chiang Kai-shek has appointed two field marshals,
one for north China and one for south China, with mobile headquarters.
Chungking is serving as a political, econonic, and educational
capiteJ., with offices partially dispersed outside the city.
1
I _)
297
Fran: Spagent, Shanghai, China.
To : 'lhe Secretary of the Treasury.
S!.,..
Message from Professor Buck.
The following information was supplied by Chang Chung. War
materials recieved from Russia since the beginning of the war;
1000 planes, 200 tanks, 1400 fUld guns of S7 to 155 millimeters,
1,200,000 rifles, 140 military advisers now in service, most of them
being at the front, forty more military advisers arriving next
month, 120 air advisers, 260 volunteer airmen changed each year,
100 more planes by the end of the
year, delivery slow because
forty per cent of Russia's production going to German;y and
sixty per cent to Cllina.
.. ,
Chinese military forces: army, 2,400, 000 equi!lfed fighting
as replacements,
soldiers 1 000 000 new recruits one third trained
.
750, 000 guerrillas, 1,200 fighting air force 0000 land air force.
Japanese forces: thirty three corps in China, seven carps in Llandruria, 30,000 soldiers to the corps, three other Japanese required
for each sold ier. Chiang Kai-shek has appointed two field marshels,
one for north Qlina and one for south China, with mobile headquarters.
"lie and edUcational
Chungking is serving as a political, econo
'
capiteJ., with offices partially dispersed outside the city.
UNCtAtsl.71ED
TREASURY DEPARTMENT
] . J .-. ~
~
INTER OFFICE COMMUNICATION
DATE
To
Secretar7 Worgentbau
PROM
lolr, Cochran
298
doC.
September 6, 194o
Toda7 1 s transactions in registered sterling b7 the eix reporting banks were
as followe:
J
I
Sold to commercial concerns
Purchased from commercial concerns
ioll6, ooo
io 15, 000
Of the reported salsa, io80,000 consisted of sterling sold by the Irving Trust
Compan7 to cover imports of tin,
The Federal Reserve Bank of New York sold io4, ooo in registered sterling to
one of the reporting banks, Its transactions with non-reporting banks consisted
of a sale of io5,000 and a purchase of io2,000,
In the open market, aterline remained at 4,0}-1/2 unti l the close , when a
small trade of 4.04 was effected, Transactions of the reporting banks i n open
~ market sterling were as follows:
Sold to commercial concerns
Purchased from commercial concerns
f
io 62, 000
io 24, 000
The Swise franc had a weak tone this morning, possibly due to the reported
accusation by the German press that Switzerland was not conducting a strict pol1c7
of neutralit7. From an opening rate of . 2279, that currenc7 receded to a noontime
quotation of , 2268, It then developed a firmer tendency, and the closing rate was
, 2274. Trading in Swiss franca was reported to have been very light,
The Cuban peso, which improved considerabl7 during the past week, weakened
today to lQ-15/16% discount , Yest erday ' s quotation wae lo-1/4~.
The other currencies closed as follows!
Canadian dollar
Swedish krona
Lira
Reichamark:
t.!exican peso
12-1/ 8'/. diecount
. 2336
. 0505
. 4ooo
. 1996 bid, .2016 offered
There were no gold transactions consumated by ua toda;r,
I J
f~
,j
A tbre&-montha loan of $50,000 to the Central Reserve :Bank of El SalTador
wae mde by the Federal Reserve :Bank of New York today, Aa collateral, the
Federal set aside gold valued at $53,430 from the Salvadorean :Bank' 8 earmarked
account . It will be recalled that the Federal made a similar loan to El Salvador
on August 31.
In our report of September 3. mention ns made of a gold shiptlent of $2, 649 ,000
from Curacao, conaigned to the Federal Reserve :Bank by and for account of the :Bank
of Curacao . This gold arrived in New York yesterday and was earmarked for account
of the :Bank of Curacao, the Federal havin& opened a new gold account in the name
of that bank.
The Federal Reserve Bank of New York reported that it bad received cabl e
advice from the Bank of England that a shipment of $8,323,000 in gold would
shortly arrive at the Federal Reserve :Bank of San Francisco for account of Hia
Britannic Uajeaty•s Government, to be sold to the u.s. Mint there . Although the
cable stated that weight lists covering this shipment would be received from the
Bank of Canada, it 1a possible that the gold originally Cllllle frOID Australia,
since shipments of so large an amount are not ordinarily sent from Canada to
San Francisco,
The Federal Reserve Bank of New York also reported that the followiJl& gold
shipments were being consigned to it:
$5,812,000 from Portugal, representing two shipments by the Bank of Portugal, to
be earmarked for its account ,
E~~&land, shipped by the Bank of Eneland, to be earmarked for
account of His Britannic Majesty's Government,
530,000 from England, shiPPed by the Bank of England, to be earmarked for
account of the National :Bank of the Ki~~&dom of Y114toelavia.
522,000 from England, shipped by the :Bank of England, to be earmarked for
- - ---account of the Swiss National :Bank.
$8,959 ,000 Total
2, 095,000 from
,
I
It was reported that the Bombay bullion me.rkets were closed today, and no
quotations ware received from that center,
In London, the prices fixed for spot and forward silver were again unchanged
at 23- 7/16d and 23- 1/44 respectively, The dollar equivalents were 42. 5~ and
42.221.
Handy and Harman's settlement price for foreign silver was unchanged at 34-3/4;.
The Treaeury' s purchase price for foreign silver was also unchall&9d at 35¢.
we made one purchase of silver amountine to 55,000 ounces under the Silver
Purchase Act. This represented a sale from inventory by one of the refining
companies,
300
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
To
Secreta17 Morgenthau
P'IIIOM
~:r .
September
6,
194o
Cochran
Mr. !-lcXeon of the Fecieral Reserve Ba.nl:: of New York gave us the follow1118
infor:nation regarding the transfers listed below from Gerill&n and I talian accounts
maintained \ii th the Chase National Benk.
~
Date
September 3
.Amount Deb i ted
$250,000
Gel'l!l&ll ll<lld Diecoun t '!lank
Paid To
Centra! Ra~ver 3ank and
Trust C~. for acc~~t of
the Banco de la Nation
Argentina, Buenos Aires .
~
0
~
,
Account Debited
Amount Debited
September 3
$120,000
September 3
53,000
Account Debited
~
Be'l!c of P.o'!IA, Roce
Central Hsno'1er Benk and
T:-ust c.,, for e.ecount of
Bank of I ti\J ;r, Geneva.
Cred.ito Italiano ,
Rome
Hunearian Co~ercia1
Bank, Budapest
301
1-
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
TO
Secretar,r
,RON
!~.
V~rgenthau
Cochran
Mr. McKeon of the Federal Reserve Bank of Ne>t York ga-re ua the following
information regarding tranePctions in the account of the State Bank of the U.s.s.R.
maintained with theo Chase Uational llank.
]
Principal chanee@ in the
account during the period lwguat
1ncl:1sivo, were as follows:
29 to September 4,
I
~
Augu.st
Amount Credited
29
$l , o6o , ooo
4oo,ooo
August 30
S8!)tember
~-
National City Bank,
ll. Y. by order of
Jordbrukarbanken,
Stockholm
First of Boston Corp .,
by order of
Reichebank
300, 000
Continental Illinois
Nati onal Be.nk and
Trust Company,
Chicago , by order of
Reichsbank
282 ,000
Skandinaviska Ba.nka,
Stockholm
Pai d To
$1, 700, 000
Comcercial Letter
of Credit Account
German Gold Discount Ballk
325 , 000
Irving Trust Company
300,000
Finlands BP.Dk
90, 000
.Amount Debited
First National Bank,
Chicago by order of
Reichsbank
300,000
2,000,000
4
Received From
1,150, 000
345,000
Narodni Benka,
Pr~e
~~
.Amtorg T!"ading Co.
Commercial Letter
of Credit Account
Seotember 6 1940
l2:4o ? .m. '
Adoloh
Berle :
Henry.
H.l .Jr :
Ho~1
B:
H. lLJr:
B:
a re you?
Nell, I ' m sorry not to have been at the
other end of the wire -- too many oeople.
•,·/ell, I under stand.
and the planes?
Where are we on Sweden
Well, we 're at i t.
The situation is that
the licensee, of course , have been revoked
and the S\~edish Government is hanging on t o
the planes.
H.lt..Jr:
Yeah .
B:
They say they 're dickering for orice but I
imagine the real reason when you come down
to it is t~at they're orobably influenced a
good deal by Berlin now -- scared to death
of making any record and I accordingl y have
done two things which , I trust, meet wi th
your approval.
H. !. .Jr:
I'm sure .
B:
In the first place we're tackling it wi th
the Swedish to see what the beet deal we can
make for immediate release is. I' m not t oo
optimistic about that because i f they're
really being influenced from overseas why
of course they ' ll just delay and delay and
delay. Second, I went up to the Senate where
the reouisition bill is r esting and talked
to Senator Sheooard. They have not necee~arily
as a result of that re?orted that bill out
today. Of course , if that bets through-quick ryassage --then we don ' t need t o bother
with indefinite nebotiations we just take
them.
H•.•. Jr:
Good. Does tnat mean that Canada would still
get them?
- 2 8:
H.I'I.Jr:
~;ell , we ' d te.ke them but what we did next
is a matter of our own eood discretion -oresumably they would get to Canada .
Good .
8:
Those are the two things . !low one other
thing, I may ~/ant to t ak e you up on an offer
you made in our previ ous conversation.
If the Swedes balk , we may ask you to ask
the Secretary of 'tlar if he ' ll fish out
some kind of a document and say we want
those olanes .
H.H.Jr:
Well , that can always be done.
8:
Of course, fishing them out of the Secretary
of l~a r might be almost ss troublesorne as
fishing them out of the Swedes.
H. ILJr:
No , no.
8:
Not auite as bad.
H.J.J.Jr:
No, he ' s not a Swede.
8:
Oh I don ' t mean on account of the Secretary,
I ~ean on account of the ·.iar Departmen t red
ta?e , but I daresay we could get t hr ough
that somehow .
H.ILJr:
./ell, I woul dn ' t ask them to do it unless
I knew tnat Canada was going to get it.
B:
That 1 s right.
H.H.Jr:
1
s Mr Stimson remi nded me
k~ow there is a Secretary
No , we ve got , a
I said yee , thank
the other day/ ycuh 8 )
'
•
Laug
of War now.
God.
B·
need
as itto comes
Tne t comes in handy · "~ 're going
him I think based on th: ~ ew!neral all out
in today which indlcat~e v e~y well beginning .
attack on England may
H. l' .Jr:
Oh, really.
I
- 3 8:
~ell, I mean that the heavy - - thla heavy
wave of planing would pr obably be the or elude
·
to that kind of thing.
H. ' .Jr:
I
9:
So I supooae the battle ie on .
H. I'.Jr:
~ell , it ' s been on for some time .
8:
Yeah but just beginr.ing to get to the h l gh
-:>oint now.
H. .1.Jr:
0 . K.
a:
All right.
H..1. Jr:
Good-bye.
see .
Good- bye.
305
BRITISH EMBASSY,
WASHINCTON, D. C.
Peraopal and 2
~ 1940.
b iLa
Dear Mr. Secretary,
I enclose herein for your
personal and secret information a
copy of the latest report received
from London on the military situation.
Believe me,
Dear Mr. Secretary,
Very sincerely yours,
The Honourable
Henry
M org~ thau,Jr . ,
United States Treasury,
Wa shington, D. c .
lo
llaval.
llnenth Cenadtan 1roop CoMOJ b.. arrlYed
eefelJ at •
Cn
rltllb popt ,
wopte~ber
2 d
a trltleb eub..rloe eank
• lerge
Dhcar.
On
•outtlad bJ her German prlte crew on elghtlng
•,
~rltleh e marine.
The •••• eubmerlne
reecued t ho •aeter, hle wife end 2~ ot the
•
crew of e ·rltleh ehlp (61 2 JO tonol, oow preeu.ed
eunk llet Aprll.
Sunderlend
tlJin~
the reet of the :Norw-slan crnJ 2 •re t ullderlendt I
are now proceeding to reeouo 2 boat load• of the
Oer an price crew.
Between reptemher
! ou r et he •
vleible
0 11
r ~su lt ,
~rd
end September 6th
1."- ceu hn•
one ln t ho
been
11111
e wlthcut
edlterreneen end 3
ln home wetere.
on September 2nd for t he flret tlme Oer can
dhe bomben were
e~lo7ed
esalnet llb lo!ajtlt,.. •
ehlpe iD the Me41torranoan, and lD
be"""
.t.q~~et l!ld
and
Septtt~ber ji!ncS
e
eM.,.
alroratt/
307
aircutt ware abot dow11 diU'ia
a capt tor on a
1
anal operaUcnaJ
ore
o:pl Air -or ca.
2.
Misht operatiooe
apt ..bor
rd/ 4tb.
Ioo tndlary attaeka oo toraat areae in Herta
11ouotatne and io Barllo area hna b.. o •er7
eucoeeetul.
All aircraft report etartlo
1~11 one OlUNd 2 uplodone .
ttrea,
Reeoo·.ebeanoe
oC !?lack 'Oraat ebowd throe tire buroin&•
Low clouda aod iateoee darkoaae
atloa and obeer•atlon
wrre ca aod 011
arlin
ower
worke, and a lart;e flaab reaultld froa
011
an ar 1111nt tactorJJ
all tbeea
111
111
attack
8arl1Do
~1te ware obaar•od on ra11 17 t art;eta, and
turet1 aod tlrea •••n in tha
oil plant.
A
• deturg •7Dthatio
bleat turoaca, 1 toctor7 end 1
bcav7 ant1- a1rcratt tatterr ware alao hlt, and
.. thtactorr re orte llava been reoahad ot attaoka· \
on
1~
aeroCJro,.u.
tllllll
1·oua tlr • ware oauaad and
hlte obtained on Oatenll harbour, tnoludln
dLraot hit on canal dock &•t••·
1
i luehlas barbour
and tars•• tn the
l•et n1
~t
tollowln&
lCS
e~ber•
w ra eent out to tbl
~~~~··~lvee .
enl' atatloa e t
uu • laat at
e.rUo1
llaadet~ura
•..t stattS-,
011 oleterae at Cberboar;r aDd
- 2 -
. .hi...
...........e/
308
Aerollr o••• la
•ortw • :Jrenee
llllll.lldllll
Cllllrt&'ae,
ke1l war
ood e r • r4• an4
eft b41YJ
to~•• •
went to
~~···ta·
One hln7 boal.er r eported loet of f
tbl Dutch co .. t a nd craw of one • U aa boaber
were kUled on r eturn tbr owab • er.. ho
s.
Oer.a .Ur Fo rce,
.l4d1 tloall repor h ot • n•7 boa 1D& ••
the alsht of Sept . . ber
nu.bora of
l~o •ad1a .I'J
~d/4th
o•~•
ata t e tbat lerao
we re clrop,ed 1a
eat aDd
Yeaterda7 IDISJ . .de 8 bii YJ ettec:klo
tlret at
ebo~t
t bl
9 • •• • cona1eted ot about 160
o1rc:ratt, taw ln over eoutb coaa t , wa e lnteroe ptlcl
r
b7 our :tl ·htere • II! l: rolcea up into gr oupe.
c11 altlee e•r•
l~
s
h•••r
aae ar
end oae e quedron dee t rored
enamr olroreft wltbo t euete1olng • c:aeueltJ,
aerod.ro. .e were attacked bu t no aer1oua da" • &•
•• oaueed.
Daaas• waa done to
~roper tr
Ca nterb\li'J , but eaaoal the were all£ht .
1n
I a . . rl7
afternoon, a aeocnd fol'llltlOD of ebout 2 u0 01m 1
in
~ la
tbe 1bl ••
atu•rr .
Tbla a ael n 111 later•
capted, a:lll b n7 loa• •• 011.1 11d to tbl
f.Oaba were dropped 1o tbl
.: ec~w -r
• ~ •ar•
areaJ neltber
fbe Vlekel'l•
t.Ar•UO.C aeroplane wlll'ka at
ey rld;!l were IIU
bJ 6 or G bl&ll eaplodu boabeJ ooad4.1 Nllla
4 ..., . • • eeuel4, oad pNduoUoa wl1 1 be ewloueb
ottM•ed·
CeauelU•• reported are
-a -
-.o/
309
laO WO UIIded.
h
'IMN he l'alh 1111 ene111 olrcrdt
•er• 4.t1oltel7 "-'••7•d•
4Leot D18bt
olrorott, ext
e.,_,-
o4 o• r • wtdo oreo, but
fte Jll'iaolpell;, 12lzutDd
e t•JIU'7•
Mtblq, •etal7 b7
olllet t e •"-e •
l'lll tol ~--1 • • L1urpoo1 •r••·
bat
uro under coottoo1 tidaro da71l tat.
Other tb. .
eleollh•• lo <loc)Q wue qlllok17 •Un<J11hbDd.
OtbU' boaobe drop, od 1D London oreo, toe lud 11\.
eet•1aeter, oeue1q little daaco o Dd ' "
coe·olt1oe.
A eueto1Ded o tteek to tbe
or.. couoo~ oxtonetwo do
•£•
to pr
Ltwer~ol
ert71 colaoltl••
et pruont reported 1ocludo 1& killed .
••r• 1terto<1 at eo oil r efiner,. but 41d
lro1
~~
re•cb
I.
tho oil chhro one! ere unc!or control.
r
n1 ht our U 'ltfl'l ehot down 2 fne1117 boDberl.
During tho
'·
toet roze4. P roblb lo.~maflocl•
7 our Hsh ter 1
dur1n B tbo C!e7
omber11
1 htere
117 ou r ! 1 hUrl
durin ~; tho nigbt ••
a>ll ~r•
'l'ohlo
rt ~1h:
lll
a
:IV
1S
'
18
2
0
1
M
10
21
17 !1&btorl ( 11 pllo te 11!e)
a.
boulld
ODD YOJ WDe D UD ... d
ott ... t ooa•t ,.. . t ....y, oDd lt olllp•
-.-
bJ
•1 ton
(b)
1
250)
7
l.J' J'Uterc!a:r
( "• 0
CODVOJ'1
1'0 IJUDlro
rtlin . . ..
to
e eg
•r1
an•
J'i'D 7 and lo
1n oortb •tatern •
ache a.
•
n
catte k <!
rail
J•
t1
311
....
BRITISH EMBASSY,
WASHINCTON, O.C.
September 6th, 1940
'ill 1
nd Personal
Dear Mr. Secretary,
I enclose here in for your
personal and secret information a
copy of the latest report received f r om
London on the military situati on.
Believe me,
Dear Mr. Secretary ,
Very sincerel y yours,
•
The Honourable
Henry Morgenthau, Jr.,
United States Treasury,
washington, D.
c.
312
Tolol;l'U tieapatclle4 tro
Loncloll
late on tblt nonin!f ot tleptc::cber 4th.
:z.
l»nl Air J'ON!o
OUr
31'4 1n
Dl&bt
(.k:.belr 2d •
llcxabeN OJI
at eDNa loa
~
tllalr t"'PW _ .
O'beeM'IltiOD
uoverol. llll'p ruoa wcl'e at 1'\(;0
bO oboal"Y04o
owr a WiOe erea in \he Blaclt
eo!lth or
root, aapeciall;r
on.
c1en
tho:J£bt to o:mtain U-boaw a::d - boats , .... loo tad
r&~~uJ.w UDO'baol"fte.
and bo::bod,
at oU tnrgDb in Oen:18:1Y,
.rtroa ware a\cl.rted
lllltl llll
oxploatw
ta:oto17 an4 Doacb taoto17 wre el.ao b<le:ib84 , but
onl7 ono Mohine obaoMOtl burow 1n tbe target
Ill' ...
in la airCl"llf't llloo at.tiiClte<l raUu117
etrcraf't edll1tbnlll to 7 oterdc.7'•
J)ovor.
l'<lport GiG
.co
n~ t
rotUJT.
i'bo
ower ataUon cno a
1'111llfll7 junct10D at Oenoo were cccn ctto= d b7
no uro.-dt,
~
tiNa
lMI1g emwaa
sa_.,.,...,
atrol"fltt lallt184 1a t.b8 eea oe rot111'1l, lnlt
ONWO nl'O llll'fCdo
Laat nll;?lt 90 "biiaabora rtrtJN ecnt o~
Olojeo\1-na •
Nl._tftD
aa toll-a-