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1<15
GROUP J.lEETiliG
Present:
~~~"':~:: 12, 1940
l.!r . Sullivan
!Jr. Graves
J!r . llaas
J.:r. Chmberlain
llr . YOWI6
l.!r, Foley
lo:r . Tbccpson
J.:r . Sclmilrt
llr . Bell
l.!r, \'1bite
l!r . Gaston
l!rs Klotz
J
I
H,l.[,Jr:
1\"oll, I think tho Prsss treated ua prott)'
well this morning,
Schwarz :
I think, all told, that wo got along all
right.
H.II.Jr:
Pat '"'" Cluch fairer than I thought he would
be .
Schr.arz:
Hs stuck pretty closely to the facta .
H.t.Jr:
I thought it was all right.
qui to pleased.
Gaston:
I thought it ns a very accurate story in
tho Post. I heard Danaher on tho radio last
ni:;ht takin~ Fulton Lewis ' place and in tho
course of h1s broadcast he &ave a general
review of wha.t was soinc: on in Cont;resa ..
Ho quoted textuall;r two sentences fro::>
Johnny's stat.,ent and the;r were accurate
quotations, so he had seen a tra.nacript or
seen tho state::ent itself.
ll.II. Jr:
Ia that right? \loll, I think we got oft all
right . I e:> satisfied. It """ tou1:h going
for a while, wasn' t it, Johnny?
Sullivan:
You should have been a r ound some other times
durinG tho summer .
I
•J
In !act, I u
- 2 .. ell, I have been in other tax bills.
Yea, I know .
·~enate Finance Co=oi ttee, uni.Clpressed by
the Treasury Department objechons, is seekin<;
early enacb::l.ent of ita verdon of the excess
profits tax bill . ' (Reading pr ess notice)
Well, we wi l l see now what the next move ia .
I have got clearl;r on record the fact that
the Treasury is o~hlsed to the bill in ita
nk that is all r.e can
~~~sent fom. I.
No question about that .
It is on the record all right.
llo question about that .
Harry Durning told ne yesterday that the re
see::ed to be preparations to toke the New
AI:>sterda!!l, the Holland- American linei out of
New Yor k. If he is correct, they wi 1 be
askin;; in a day or two for per:nlsslon to
start, the 3ritish, o£ course, a.nd I don't
kn0\1 a.ey reason nh:r ne shoul d interpose &nJ"
objections to the departure of the liew Ameterda!!l.
None that I know of.
Anythinc else?
I don • t know ot .,.thin: else except that
I tolked to Patterson yesterday about tho their effort to dispossess us fra:J. our
7-inthrop radio station and I thihk •• can
get dela7 lon:; enough so that •• can ge t
a now station. Otherwi se, it will cause a
lot of difficulty.
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H.l.!. Jr:
Ed?
Foley:
I have nothing.
H.J!. Jr:
Let' a see, Leon Henderson phoned 11.e this
morni"l: and I have sent a copy of the letter
on scra'O steel to JOU and to Gaston and to
f•hi te and he is working out So:lethinJ;. He
soe.."IS to be carrying the ball on it. I will
let ;you read it .
Foley:
You have got the letter?
H.l!.Jr :
They have all gone .
Fole;y:
They wanted another one tor
that written, too.
H.!.l. Jr :
That is the one.
Gaston:
Did you want to add an7 lUIJles to that list
of the people who are cettin• that weekly
report on scrap steel and pe'troleu::1 products?
H.JJ. Jr :
llo, but I wouU like to see the list .
Gaston :
I sent it in yesterday afternoon.
is on.
Le~
and I had
\ihat else?
Interior
Chaunce;y was in this morning.
H.ll. Jr :
I didn • t get it.
Fol ey:
Forreatal has indicated he would like to
have those aviation fi~res that you gave
to SOJ:Ie Of the other people.
H.l:. Jr :
He ia on that list, isn't he, George?
Haas :
lfo .
Foley:
He would like to
it to ;you.
~et
on it .
He ma7 mention
- 4 -
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B.l!. Jr:
All ri&ht, j>l!t him on this week. You sort
of han ins1de infoM:lltion there, don' t you?
Fole7:
.. ell, I didn' t get this that way.
H.JI. Jr:
I wonder if he will take it after office
hours.
Foley:
llo, he asked Cox about it .
l!.l!. Jr :
Geor~:o
Bell:
The Assistant Secretar7 &•ts the::, doesn' t he?
Fole;;:
l:nox gets the:o. I don ' t think the Undorsoorotary gets thO!l,
Haas :
Knox gets the.
in ~.ar?
Boll :
Uo cots thOll.
Haas:
Patterson gets
,,ar .
H.ll. Jr:
'J
ia the comptroller on that .
\?hat olao?
\.hero is Patterson, is he
the::~,
and tho Secretary of
Put Forrestal on.
\.hat or o you going to do t oda;r, Johnny?
Sullivan:
H.l!. Jr :
I m ~oing to try to catch up on tho things
that 1 have been mioaing here for a while.
I would like to see you a ainute after this
meeting .
Chick?
Schwarz :
I have nothing.
H.!!.Jr :
Did they bother you much last night?
Schna.rz:
Oh, about seven or eight calls .
149
- 5 H.'.!. Jr:
Schwarz:
You nill have to --
H.U. Jr:
;x~~ti~:Ya!s:f~n~ll
10:1 talking before an
Schwarz:
That is right .
H.l!. Jr:
And as tar as I am concernedi newspaper
stories - I have got no caop aint. .
!
Schr.arz:
The stories are adequt.te and no
H.J!. Jr:
t;o .
ca::~plaints?
Schr.arz :
Yes, sir, that is the picture .
H.l!. Jr :
!Qo ,
Young:
The Swedes are taking their fi r st Vultee
out for a test !light today.
H.I(.Jr :
That is a great job.
Young?
Cbal:lberlain: I talked to Serle testerda7 about those - tho
~e~~~e~efh:t t~~ u~~!ioS:t!: ¥~~~a:naea
funds hero. };o said it mi:tht han been taken
up with tho President and lie hadn • t decided
yet and the State Deparblent was hol ding back
because they wanted to see the nen French
!!inister and sort of size him up, so we are
s t ill hung up on that .
r
H.l:, Jr :
That is all r ight.
Chamber lain : loell, yes, that is all right as far as I can
see . I will have to take - hol d the hand of
the !'rench financial people, but I can do
that all right .
150
- G-
u.u. Jr:
.Anythint else?
Chamberlain :
1/othi~
H.l!, Jr :
Geor~e?
else .
Haas :
I have nothin& t hio cornillj;.
l'lhlte :
If you would care t o i ndica to a ochedule
that :you woul d like to follon on thia
Chilean thing, we have got - cone as far
I think, as we probably can without talki ng
to the Chileona cora or less officially,
and we can have so::>othing for you, if you
would like, !.:cnda;r or Tueoday, for you to
go ovar ttl. th the 'treasury staff before :you
call the in.
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H.l!.J r :
Can 1 t you s;i ve me sane thinb to read over
the week- end?
'Oihlte:
Yea, I can do that.
H.!:. Jr:
At least, I can take it with me .
to :
~hi
It 11ill be ready, and then it you want to
have a meetin& on J.:onda;r --
H.l:. Jr :
I will t17 to read it .
l.hlt o:
All r i ght.
H.l!. Jr:
..hat else?
lhlte :
That ia all .
H.J.:. Jr :
Thio is very I:1Uch in the roo:n. I just talked
to wo . Sti=on and he still ia verf nuch
interested in the Far Eaot. Have go t a
nemora.nduc on t hat Chineae-Ruosian- U. S. Steel ?
''hlte :
You ho.ve a brief one .
one .
I can gi ve you a second
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H.!!. Jr:
Could rou, the t I could oend over to l.!r.
Stimson?
\.bite :
I think 7ou mi:;ht send the other one over,
but I will gi ve Jou two and you can talco
your choice .
H.Y. Jr :
Right. He io peckin• Ui&)' at it . He ears
Hornbeck and he are !ike this ( croseing
fingers) now. They are both together .
l"ihite :
Hornbeck seas to be very strong 1rhen he
is outside the State Deparbnent, on the
Fnr East . His blood kind of turns to
wa tor r.hen he gets back home.
H.l!.Jr :
\,bat else now besides Chile?
~lhlte :
That is all . V,e are working on Brazil, and
tho)' hove talked about Cube, but i t will
cone to )'OU thr oUGh a con:nunication .
H.II. Jr:
The Acerican Az:lbassador to Cuba is in to\'Cll .
H.Y.Jr:
He io oo i.Jnprsseed thet he is tryi ng hie
best to get oe to see a !ello11 b7 the name
o! Heineoan, nho is the head o! this Belgian
Salina . I refueed resterda:y point- blsnlc to
see him. He SlY'S he is one or the moa t conotructi ve figures in finance in the worl d.
Is he?
'l
Chaoberlain: \·o'ell1 he is a ver:y cl ever fellow. lie hove
all neard o! bin for a long time .
H.JJ.Jr :
I said I didn 't know anrthing about him,
whether he was or wasn' t, but this was the
second time , and nouldn ' t I see him, and I
refused to see him.
152
t.
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Chamberlain: He T7l'ote you a letter, J.:r, Secr etary, that
we had, and that ca tter is being examined
11i th a great deal of care and ::r, Upham ie
going ovei" it thia week- end, and JOU are
~oing over it, too, aren' t you, J.:r, ubite?
\:e don ' t feel like going eh ead on the Sofina
situation without very t;rea t care.
Fole1:
~ t_~: ~d~f'(i~~=~b~U: ~~o:~dl~h~~.t~~:~
here ,
H,l!, Jr:
The Sotina?
Foley :
Sure they did.
retainer .
H.ll.Jr :
If Eddie had to £:7 an excess pr ofits tax
5'
...
Fole1:
on all the tees
rich •
Eddie wouldn • t take the
e turned donn, we would be
ua
Donald Duncan, Jim' e xartner, went
to
see Eddi e and asked E die if he noul go
up and take a retainer and Eddie said, "You
don ' t ha.ve to hire ce to see the Treasury.
All you have to do is go in and see the:n. •
Du:tcan Clll!le down and saw you. That
just before )'OU went on your northern hew
=•
'l
York vacation.
H• ..!. Jr :
I didn' t knon, with thie fellow in tor.n,
hotr llllCh pressure - ,;!,at is tile Al:lerican
Al:lbassador ' a nlll!le? J.:esserlllllith lived for
ten years in Brussels . lie lllllst have been
Consul-General there and that is l'lhere --
Bell :
Heinet1an ia an Acerice.n.
!I.!J. Jr :
Is he still?
Bell:
I guess he ia.
ir:c.ens e cotlpanJ.
Hie hol ding c001pany is an
153
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H.U. Jr:
l!essersmi th got to know him during the ten
;years he was same dipl omatic officer in &
Consulllr office in Bruueh .
White:
You will notice the h&lf billion dollar addition to the ::.port- Import ll&nk r:ent through
the Sen&te .
H.l!. Jr :
Yea, the;r went out and laft us WILitint; for
15 rJ.nutes while the;y voted on it.
Sullivan:
The;y came back, thou;;h.
H.l!,Jr:
The next tiae these fellows th&t write these
at&teoents - r.e will let tho :;o UJ? &nd
defend the:>, the &uthora . t.e &re JUst the
&ctor s . The;y jua t pulled the strings on us .
Sullivan :
Oh, no. As a matter of fact , I think ws
would have had a ver;y tour. time if we
h&dn' t had tha t thing wor ed over .
H.U.Jr:
Do ;you think so?
Sullivan :
Sure; I think it 1110 infini tel;y better than
the lTll)' I ori~;in&ll)' had it drafted.
H.U. Jr :
I wouldn' t ar(.'Ue with you on that .
Harold?
Dan?
I
:.;, ,J
Bell:
..e had a meeting of the c=ittee ;you apl!ointed
;reaterda7 corning on the South .ll::eric&:l .reaaur7
Conference and we rec<llll:lond to ;you that the
Treasury be represented by a delegation headed
by lo!r. Gaston and Dr . \ohite, probabl y.
H.ll.Jr:
I reluct&ntly accept th&t .
\ohite:
By a uajori ty vote.
154
- 10 Fo1e)':
Two to one.
\ib.ite :
llo, it
Boll:
At !irst it r.as, and then I mde it unani-
TI&S
really Do.nny' o ideo .
nous .
H.ll.Jr :
'."/ill you ask - I b.avo got t ime tb.is afternoon.
Bell :
\",ould you want to diocuoo the bank situation?
H.ll.Jr :
Sure .
Bell:
It will take about 10 or 15 minutes .
H.ll. Jr :
5uro .
OkAy.
Johnny, do you "ant to o ee me?
Sullive.n :
•,
Just a minute .
September 12, 1940
11:00 •••.
liE POREICl!< ruNDS
Preunt:
CO~T'AOL
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
c
I
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Chamberlain
Oaaton
Fole7
White
Bell
Cochran
Bernstein
Pehle
Che..al'berlaln:
there 1a nothing new except that JOU
expreaee4 the opinion that JOU ta•o red
Bvi t urland and thought they abould 'be
paid and we would lite to get
K.M.Jr:
Juet de e cri'be it to me agAin.
Cba.al'berlain:
there were two - application• for two
requee te on t he French, to take dolla.r
tunde to pay the intereet on two Sv1ea
loana, totel 8JIOunting to about - 'between
1800, 000 and *900,000. The loans were,
accord1 ng to our report a , not payable no oot1on to paJ in dollare. AlJ)hand
aaye the7 have auch an option and will
gl•e ue a memorandum, 'but I aa aul te
confident there VAl no euch option. The
polnt 11 tM.t they hAven ' t got the menne
ln FrAnce vl th which to 'buy theee • to
'b\1.7 Swiae trance. \le preeee:d thea on
the polnt of their bav1ng taken over a
quanti t7 of French exctvlnge fro• thelr
oeoole. He aaid ther Mdn 1 t taken over
ae auch or 1t •• we bad euol)Oaed and h
going to give ue a a e::orandum on tbftt
And thl\t 1n fact the7 h.e.dn 't &nJthlng
left. I told hill thl\t we d1dn 1 t want to
grant the appllcatlon it lt vnan't nece~aary
15S
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"''r'f
because ve thought 1t vat
desirable
for the French t o ute vbAteTer exchange
they .bad in Prance to paJ out on all of
theae obl1gat1on1. He tald they - rou
know , I t hought if lt would ta.ll into
German b.ttnde I IDlght well aake that point.
He tald he vaa "Oerteotlr aware ot t hl\t and
be would l i te to pa7 out these tunda , but
they dldn ' t have t beiD.
H. M. J r:
Who u.ya t ha t ?
Cbamberl&ln:
.Uphand.
And 1t would be Ye r y 4 1 ff1cul t
tor thea to flnd any way of payi ng theae
tundt. You know the eltuatlon t roa the
Svlea point of Ylew 11 thAt the Svlte
Mlnlater vae ln etrongly urging t hAt lt
be paid and another Sw1ee .. Somary
0
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Cochr an:
No, 1 t va• the Ml nleter h1•aelf.
Chamberlain:
Mlnlater himself urged atron gly l t be
pai d. He • an.ta to get the money to euttaln
tbte currency.
H.k. Jr:
It 11 a queetlon ......
ChA.a"Oerla1n:
I t 11 a quett1on of how web r ou want to
help the Sviee.
H.l!.Jr:
And the State Depart•ent expreeeed tbeaeel~•• •
d1d t hey?
Chambe r lai n :
No , I don 't think t h ey have .
l! . M. Jr:
Have ther'i
Cochran :
No, air.
H. k . Jr:
Vall , tbAt ie tunn7.
Cochran :
Well, I mean the:r expreeaed it - t he
went t o Mr. Be r le to protest againet
deoielon and Berle eent a me!lorandum
Dan Bell saying they would l ook int o
You eaw that, d14n 1 t you, Dan'?
K1n1eter
our
to
1t.
157
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- 3 Bell:
Yea.
H.K. Jr:
H&e Berle expreeaed An on1n1on'l
Bell:
In the • emorandul."', ae I recall lt
H.Y..Jr:
Ie he tor lt or agelnet 1tt
Cochran:
He doe en 1 t eay.
H.K.Jr:
~,·
G)
Yell, I vouldn 1 t do M7th1ng un'Ul Berle
eaya vhether the State Depa-rtment 11 tor
or age.lnet lt.
.. 1
Chamberlain:
Well, we can take 1t up w1 th him. How
would you teel'l It he dleapprovea 1 t,
I euppoae --
H.K.Jr:
It he dleapproved lt, I would b e d1a1nol1ne4
to do lt.
Chamberlain:
And lf he approves lt
H.K.Jr:
I would be 1ncl1ned to do 1 t unleee theee
fellows have got aome rea eon here. Tbe7
have a eked to 11 t ln.
Bernetetn:
Well, the course tb&t I bad ln 11lnd, u I
underttood the thing when lt cane betore
the Coru1 ttee, le that 1t ln•olved using
American funde to pa7 obllgatlona which a
blocked countey had tn Europe and not dollar
obl1gat1one, but foreign currency obl1gat1ona.
The tew caeee where the problem hAe oome up
or ae the general polloy had ln the paet
been oone1dered 1n the Co11111 ttee, we were
alvaye reluctant to grant thl\t tJPe ot
applicAtion beceuee lt Yery obvlouely aeant
a tremendous leak ln tbe whole torelgn tunda
control. I think I recall at one tlae the
Rou!DMlan Mlnleter c&me ln to see Herbert
Gaeton and the7 wondered lf theJ could uu1
Danleh aes ets or BoandlnaYlen eeeete to J>a1
tor obllgatlone due Roumanle and alao new
obl1gt~tlone lnourred.
We hs.ve alwaye been
Berneteln?
.
I
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- 4 agaln1 t that typ e of a a1tuat1on. The onlr
oaee vhere we have llated the burer vaa on
old obl18&1i1ona in South Aaerlca and Latin
berlca.
I
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H. M.Jr:
Nov, before rou go anr t\arther, aren't ther
going to u s e - aren 1 t the French going to
uee part of their own blocked money bereT
Cheaberlaln:
Yea.
Berneteln:
It 11 • problem of udng - whether JOU w1ll
tree the blocked dollere •
H.K. Jr:
Tbl-t iln' t what
lnttanoe.
Bell:
He ueed the teN •American f\lnda• to refer
H. M. Jr:
But
Oba.aberlaln:
Around IS 50, 000.
Vhlte:
Ae a beginning.
Cochrlln:
Yell, the tU!Mlce 1• due twice a year.
roler:
It you do the.t, that 11 a precedent tor
JOU
eald in tbe tit-at
to blocked Aa erloan dollare.
But 1t 11 tunde
JOU dldn 1 t aa7 tb..t.
wbloh the French have here vhlch are now
tror.en. I t le a queetlon of our nov unfreez.lng them to the extent of $800,000
or $900 ,000.
e 1a1lar traneaot1on1 1n other countr1ee.
H, M, Jr :
Ho\f uny other• are there?
roley:
!'here 1• no telli ng, Mr. Secretary, vb.ere
lt vlll lead to.
Cochran:
Ob., there 11 on that •• tar ae Pr111nce 11
c onc erned, becauee they b&Ye only --
Foler:
But you 11aU 1t to
H.M.Jr:
Let Merle t1nhh.
bon~e.
159
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Cochran:
Netherland& nov, eo Switzerland 11 the
only country l e tt and or theae two big
loane, the eervlce 11 about tS50 ,000,
that le a million 700 tboueand tor the
rear, and then t here are aome notee out
aleo, "Out I •ean it wouldn't J'Wl into
big tlgure e for France lf ve 41ipproYe4
thlo.
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H . ~. Jr:
Thle le the other elde, whSoh eYldently
nobod7 - maJ'be they haYe coneldered 1t.
By 1ay1ng no , ve are encouraging them
tole7:
Mr. 8eoretarr, they a l"e not P&7&ble 1n
Aaerloan c!Dllar1. It t hey were payable,
lt the 11Ult1ple currency pa,..ent clauee
wa1 .berlcan dollara, I would agree v1th
you, but they are not.
H.M.Jr:
Tb.la aoney oYer here 11 French aoney,
and t h• y vant to uee 1t to pay their
obllgatlone and we ear, "No, you can't
do 1 t. • The next tlme 1 t oo11ea t o ua,
11
\liell , you wouldn't let ue pay Switzerland,
wh1 ebould ve pay you t •
O..ltion:
~o;!~e~~uo~r:. :~o: :~~n:u;~~...:::-::~1~
gatlon. 'lhle 11 a OoYernaent oblls:atlon,
1an 1 t ltt
o; ,
't'l
It doe en 1 t mean 1 t 11 wide open ae tar
•• France h concerned, because abe bae
onl7 borrowed on three aarket e , tbet 18,
the Merlcan market, and ve are letting
thea uae their dollar depoelte here now
to pa7 tb'e aervlce on lo ane tloate4 in
thi e country, of oouree. Then thfo onl.J
otb.er two oountrlee ln which abe Me borrowed
ln recent yeare h&Ye been Svi.t~erls.nd and
the Netherland•, and there h no chance
ot our approving &DJ service into the
to detault.
1
Cochran:
Yea.
H.~.Jr:
To 8w1ea OoYernment or 8w1ta Natlonale'l
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Cochran:
Sw1ea Natlonsla.
roley:
Tbeae bond a may baTe been picked up by t he
Genu.na and they lllAJ h8.'f'e been routed back
into 8v1 tt.erland.
Gaaton:
Are their tenu ln 8v1ae trance or P'renoh
trenca 'r
roler:
Both.
Chamberlain:
No , Swiea !ranee.
J
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Oaat on:
They olalm theae bonde tbe.Y want to pay are
bonda wblch are preeented by Sviae Natlonala,
I
Cootlran:
'tb.e7 haYen 't been widely d1etr1buted. Tbe
laauea were taken by a tev blg 'be.nkt and
tbe7 ha'f't been 41atr1buted to Juat a rev
Gaaton :
or couree , we don 1 t know who holds theae
'oonda.
Cochran:
The Ml nhter atatea t hey are all held by
Swlae and aa tar aa Gerune gett ing the•,
Germa.n7 baan •t permitted lnYeatmenta ln
torelgn aeourlt lea or thla type 1n recent
yeara. You couldn't get ltODIJ out or
Gersany tor thAt ourpoee.
H,M,Jr:
By the M1n1eter, J'OU mean Dr. Bruggmann?
Ie he the Sviu M1n1eter1
Cochran:
Yee.
t,
,.J
1o tho t r1ghU
bank: a.
l
!lernateln:
Vouldn 1 t 1 t be poee1ble - -
Ohalllberla1n:
It tbe,y d1<1n 1 t bllYe the money lltl1ch to
buy 1 t - t be,y 110uld be unlikely to bu7
Frenob eecur1t1ee.
Bernatetn:
Suppollng tbe ee aeour1t1ee vere aleo
tloat1ng around 1n Belg1ua and. 1n Holland
and were p1oked up 'oy the invader 1n thoee
161
Q•
- 7 -
I
areae prov iding t or J>aY••nt el ther ln
rlorlnA o r Sw1u trance. \t'M t would at op
theca troe aend1ng thou eeour1t1ea 4own
to Bwltr.erla.nd, turning the:~. oYer to Svlle
Nat1onflla, and aaklng the Swlea NaUoMle
to preeent t h.u.t We bAYt eat up the vbole
ayetee~ ot u:ourlty control tor the
purpoee or praYentlng thAt Und or thing
haopenlng. Securl tlee tMt are l aported here
are under our llcena1ng control , eeourlt111
can ' t be eold here 1t the;y are located
abroad , and aeourltlee can't 'be deslt with
here lt the:r hAve a etamp lnd1oat1ng th17
have been ln one ot the lnYaded areaa.
TMt whole thing la gotten around by eendlng
the •oney abroad and allowing all tho ..
atolen eecur1t1ee to be pre~ented.
••1'7
J
1
'
Chamberlain:
'!'bAt la perfectly true, and then aArbe eo•e
Vbl.te:
The argucent which eounde v ery epeoioua to
eay thlt t the;r need thil aoner to export the
&viet trano, tbe7 baYe got eore tore1gn
exchange 1n gold thAn lnJ ot the other
oountrlea hATe Md th17 do not need tb.11
&.IIOunt. 'fbat 1 1 A.
will coae ln. \'e don 1 t know. 'fb.e queetlon,
I think, 110lel7, 11 one of bow far you want
to help the Sv1.ee and accept thie poelibility
that aay happen.
B, the queeUon ae to whether we are forcing
the• t o default reete on the aeeua~pt1on the7
baYe no Swhe franc reeourcea. ThAt 111 a
Yery doubtful (\ueet1on ln •1 mind. The)'
muat ba.Ye other eouroea, partloul arl)' Swill
tranc reeourcea, beoauee the7 can deal with
Sv1 tzerlsnd.
'J
Coohrtn:
'%'here 11 Yery 11 ttle tra4.1n.g golng on oow.
'le know the7 did obooae the dollar and the
ourrenor to put their reeeM'el 1n.
Whtta:
There .uet be anr nwaber ot Frencbaien baYing
Sw1ee trance in Switzerland.
Sell:
Don 1 t )'Ou think . , , ; or the reeervea of
France are 1n th\e country'
162
- 8 Wb1te:
Yee.
Coonran:
Xoet ot the reeeroreef
Cbaaberlain:
The art~"Ut~ent agalnat i t h that - the Gersu.ne
undoubtedlJ are gettlng all the exchange they
can in France troa the French. It we go
ahead wUb thia, 1t would give thea a f"urtber
mesne ot turning the ecrev.
On the othe r hand, I queetion verr .uoll
whether the f"renoh have any •ery large
0
~·::~o ~u~~~~~- oxr~~ft b!~i!~e t~~,
Vhlte:
Switzerla nd wa.e one ot the 1101t oo a:110n plaoee
tor the Frenohzlen to put their -aner.
H.M.Jr:
Juet a eecond. !be reeling eeema to
a little high on thle.
Chamberlain:
It doeen 1 t 1n m7 · CAll.
H.M.Jr:
Would thie 'be teae1blef I am Just thinking
out loud. Sul)poaing we '""· •All right. we
are gotng to let you uae thta and we will
releaee thla INCh IIOD8J, 'b.lt we want JOU to
traneter that -ane7 in New York to the
Svtea - • Credit Sutue, JOU eee, here, and
then ukee the oheoke payable from there to
the bondholder• and eo tortb. Would thAt
Nn
help any?
\'J
Cochrs.n:
It wouldn 1 t go through the Credit Su1ne.
It goee to the Federal Reserve Bank and the
p&yt~ent
i e lllllde t h ere on tbe booka to the
account ot the Swiee Natio nal Bank, vhloh
tn turn bae to l)&J in one oa ae to the B. I. S.
a dollar account in New York, becauae the
B. I. s. 11 the pAJing agent 1n Switzerland
tor tb.la loan. Then theJ baYe to work an
exchAnge trtU"':e&ctlon and pay Sw1ee tranc e
to the holdera.
H.M.Jr:
Well, I mean, 11 there anr way ot aoaehow
or other being fairly aure before ve etart
tMt th11 money v1ll tlov into Sv1turland
and not 1nto Frftnce?
163
o-
- 9 -
I
.....
Cochran:
Oh yee , 'becauee the tre..neter le de tlnitel:r
to the Nati onal Bank o f Switzerland, you
eee, and their account vlth the Federal.
role7:
You don't knov it 1an 1 t going right back
into Oeraanr, becaun theee bonde aa,7 baYe
been picked up by the Germane s.nd eent oYer
to SV1tr.erland to be p reeented ln Svltr.erland
tor P&1atent.
H. M. Jr:
41
~~!n;~:r~!~ ~~r:o~!t ~~~. ;~:~~~" f~u ~:~
vh&t American etocke they a r e plcltlng up •
Boll:
There le nothing to preTent 1 t . It goee
dlreotlJ to GeraMJ lnetead or going through
eoae other oountr:r.
Bernateln:
Tbte 11 going juat a little raet tor me.
On the quee tlon of American eecurl t lee,
whJ.oh were round abroad, eeourltlea vtu.ob
vere regletered 1n Dutch name a, 1t doe en 1 t
u..ke any difference who p icked them up,
95" or the Dutch eecur1 tiee were eo reg1etered
that no pa7mente are being •&de other than into
blocked accounte in the Dutch name.
H. N.Jr:
But i t a German o1t1ten toda7 W&nte to go 1nto
the New York Stock Exob,nge and bu.7 an A.u:rican
~
;::u~~!~.iha~to~:·~~:~.;1~~ ~~~!~,:r
that, go back to Ger::aanJ . He can do an7th1ng.
He can eend money ordere or ..nyth1ng elee.
t 'l
Cb&raberlA.in:
H.M.Jr:
TMt ie one or the dttticultiee.
We talk al110et ae i t we were at war v1th
Gel'Q&D7,
Cochran:
I
ll
~r
In thie caee, Mr. Seoretarr, the loan vee
tloated onlr in the two oountrtee, Netberlande
and Switterland, and the &IIOunt vbioh th11
are aeklng nov 11 e•en leee ttv.n we cAlculate
the eeMlce ougtlt to be on the portion vb.lob
wee tloated in 9w1 tterland, and Germane hAven 't
had any 111oney they can put 1nto bonde ot thla
type. The German exohMge control would not
164
- lO -
perm1t purchAses or eeouri tiee ot tb.l.t
aort since l 9J3.
White:
I t 1t our underet&nd1ng thAt the French
Oovern•ent cannot obtain 1800,000 - -
H.H.Jr:
Nobod7 ta1d tbat .
Coohren:
No, they could take Prenob trance and lN7
Swill trance w1th the• , but the Swhe do
not want that and elnce - -
j
I
o,
Vh1te :
They don ' t want Swiae trance?
H. M.Jr:
The7 bAYe Swhs t rano1.
Boll:
rrenob trance .
Vhite:
Yee , but ther OM bur the Sw1ee trance
rrom eomebody elle vbo wa.nte the trance.
'ther are dolng buelneee. The7 hATe got
Swlea tre.noe l n Svttzerla.nd --
Coohran:
Ther haYe ol'llled 1n tbe l r torel gn exohAnge.
It they had tha t many they wouldn 1 t be
=~~~~ t;~: ~ide b:; t~hAs!1~:.~1=:~7 t!!'t
blg now at e.ll.
deal.
~
Vbite:
) 'l
It 11 cut down a good
I ebould think the approorl ate wa7 tor the
French to handle thelr tunde here ie ~
reduce 1 t by every exouae they ha'f'e and
tble le a good excute.
Gatton:
I think that 18 the alr.e ot l t , Harry.
H.H. Jr:
lo'Mt 1at
Galton:
That an7 chAnce the7 get to utilize their
tunde l n the United Statee, the:r want to
do lt.
H. M.Jr:
Gatton:
The Frenoh, rather th&n to u tl llze t undt
that are over the r e and I th1.nk that 1e
165
- ll the eltua tlon here, but I don't thln.k tbat
la c on cluel ve argument aga1net pe r a1t tlng
theta to do lt. The queatlon 1 a whether we
would rather have the tunde blocked ln the
French Gove r nment accounta ln thla country
or ln the bAnda of Swl aa Nat1onale, to whom
they properly belong.
H.M.Jr:
Are you oppoaed t o thl e traneactlon, Her bert?
Gaeton:
No, I would be inclined t o do lt. But I
recognize t he t a ct thRt the rreneh vlll uae
H.K.Jr:
1 know vhAt Harry l a talking abo ut, but I
I TIJ7 0t)'OOrt u.n1 ty --
.
think ln thh ca.ae lt 11 going a little bit
too t ar , th6 11!1 all .
you (Boll) ot•nd.
fell:
I don't k nov where
Well , I don t think ve have enough 1nfol"'U.t1on
1
on the traneaotlon aa t o where the fun4e
could oo11e troa , 'but the preaau re here 1e
co•lng from the Sw1aa, aa I underaun d tt,
e.nd not the French.
)
Cochran:
Bell:
No, U 11 coalng troa 'oot h •14ea.
I would be 1ncl1ne4 to certalnl7 grant lt.
can attord t o ear no.
I don 1 t think rou
H,M,Jr:
But nobody M.a nut t h la up t o the Stat•
De'J)ftrtmentt
Co chran:
\'ell , the other day
1'1
JOU
1n41oated that
JOU
;:r:o!~uf~·~~ 0~r!!1:=t~ou Iv~:n ~~~~~Jng
we were tree to do lt.
Vh1 te :
I t hink the Secretary ea14 tha t he wa e
1nol1ned to be •r•oa thetlo. ThAt 1e Q.llte
tro• B&Jlng be waa ln
t a1'o r ot 1t.
a d1ttere nt thlng
H.K.Jr:
' I etlll think thAt where we consult them
on lee e i mport ant tbln ge , thAt we ought
to get a detlnlte yee or no trom thea .
166
- 12 -
0
I
Chamberlain:
W'e can do that, Mr. Secretary. We eupl)Oeed
you were taking thAt to the P:ree1dent.
H.M.Jr:
I aa not going to bother hla. Suppoe1ng
,.-ou get it up and the State Depe:r t eent, not
Berle aa a.n individual - but lt the State
Depar taent wlll gt.ve ae an app:ro•al in
v:r1t1"8, I vlll go along; and it elx CIOntba
troll now when t h l e thing coaea through the world u.,.- be an entl rel7 41tterent
place, but I think ve have got to g1Ye a
country like Swltr.erland a l i ttle bit ot a
break and we are g i •lng thea a little bit
or a breAk.
Boll:
Wb7 don't ,-ou tell thea thle 1an 1 t the
Vb.1 te:
It t hll pa,.-.ent 1 1 ude and it it 11 clear
in our own alnde that thle doea not constitute
a precedent --
"} Bell:
H.~ . Jr:
1
t 'l
precedent tor the payaent or the next
aix aontha.
I vould eay that JOur n ext eix aaonthe' pt.yment
will hAve to be decided upon by the taote
presented then.
I will taie Bell '
1
euggeetlon tbat ve tell
The next
tb. . thAt thie ie tor once only.
we vlll take it up on lte aerlte again.
U••
VhHe :
Or any other cAee.
H. K. Jr:
Or any other oaee ot llmlls:r character.
Oaaton:
You have got to remember that the Swill
~~e0 ~~~~: ~~~~e g:;·h&;:•~!~~·~pd&re
gaaollne and toed .
roloJ:
'they are Ju e t like Sweden, an4 thl¢ le wb.J
I aa not 10 110ved b7 the &'Opeal tbe Swill
a&ke beo&\lll 1t . ., not be in tbe1 r own
lntereete.
H. K.Jr:
No, but 1 t le awfully bard to eay to the
8wiaa, •Nov, you are a oonde~~ned nation
167
- l} -
and we wipe you ott tHe llate. •
Chamberlain:
Yee.
Cochran:
I Mc1 thie letter ju11t reeur4a.J which I
•ent1oned trom the preeldent of the Sw1ee
National Bank lllJ'lng that tber bad not been
under ooerolon at anr tl•e.
H.X. Jr:
Chaaberlaln:
Vell, I think 1t 11 eettled ae tar ae I •
concerned.
The other matter, Mr. 8eorete.ry, I lCiuld l ike
to take up w1 th you again, 11 the queet1on or
theee reel ttancee eent oYer to france, brought
up 1n a letter tbat rou got tro111 a pereon
who wanted to eend IIODt)' to an old lad7 in
France.
H.M.Jr:
Chamberlain:
ba••
8oaebody wet
taaU1ar with 1t.
eent 1t to rou.
I aa not
I have taken thet up, and we have a number
ot euoh other caeee.
I wouldn't reeoCL"Dend
that the appl1cat1 one be 11&de generally.
Juet wanted to call rour attention to the
tact thAt we can h&Ye aoney aent to France
on blocked dollare, ae the dollar1 can be
blocked here , 10 tbr.t the doll.a.r1 won't
actually pe •• out.
H. M.Jr:
Into occupied Fre.nce?
Chamberlain :
Well, unoccupied , certainly, and 10 far ae
vt know, occupied.
I
H. M. Jr:
That ie another new one tor ••·
Cba.aberlaln:
How long that will l e et we don't know.
H.M. Jr:
But thor will block
Cbaaberla1n:
Ve will block thea here .
H. M.Jr:
Do the aame vay we did wlth the Nat i onal CltJ.
Chamberlain:
Same way we dld w1 th the other• .
H
here.
168
- l4 H.K.Jr:
Have you bad tble up wlth your Co11mlttee'l
Cb&llberlaln:
We had lt up v1th the Coulttee. The
Coamlttee la apllt on lt a.n4 eoae parte
ot the Co11111ttee f&Yor eend.lng lt
not.
None
and part
ot ue, I think - I aa not tully
convlnced. on 1t, but I aa 1ncl1ned to think
that we alght sllow theee pa)'llent e to go
to France during thle confuted per1od
when there 11 no - when the dollars can 1 t
get out or the country.
Now, I took lt up with Davia th1e •orn1ng
at the Red Croaa. He tella me tor whate•er
!t"~~!~!tt!nh~n t~~~:.~·o~!e t:~~!,
though - thh 1e nothing t o par too auch
attention to - he th1nke ve ought to allow
theae 1nd l•idual paJIIente .
~ie
1
The State Depsr tment bae e:xpreued the
opinion tha. t ve should allow theee pa)111ente
provided ve can be eure that the 11one.r vill
reaoh the pereon in France and provi ded ve
o• n be aure there 11 ,_ re•l neoea e1 ty. So
fsr , our 1ntormat1on la that 110ney - we oan
be qu l te eure that the -aney will reaob the
person to vbo11 1t 1e aent.
•
I
H. Ji!.Jr:
Well, ot course - where we are doing thle
thing tor Norway, we don't know whether the
.,ney gete there. 'ie a re Juet doing tbe
$50 per fAtally per .-onth.
Chamberlain:
'~:hat
Bell:
\lhat a re you propoetng, Proteuor, thllt :you
Chube rlatn:
To unoccupied France. I don ' t think ve ehould
do lt, certalnlr, to other oountrlee.
Boll :
Juet unoccupied France?
11 a ll we would poeelbly recoa:Lmend ,
850 tor an 1nd1v1dual or tamlly.
extend the present eyetea ot t50 a .ontll
where ther have had 1 t oYer a 7ear to people
vho vant to begln eend1ng now'l
169
I·
- 15 -
I
Obi..ID'oerlaln:
The orlnolpal d1tt1oulty 11 whether ve
abould a end lt at all. The utn point
I would llke to get tor our people 11
a d e elelon on lt eo we can
yee or no.
H.K.Jr:
HaTe you Mny appl1oat1onet
Chuberlaln:
We s.re boldlng ao•ethlng oYer a tbouaand.
I don 1 t know bow u..n;y b&Ye coae in, So~~e
or thoee will be taken care or.
••.r
H.M.Jr:
That the aone7 v1ll be blocked tn thla
country?
Ctwtberl&ln:
It can 1 t be blocked in th.h
pree ent.
Bell:
oountrr at
GerJD&n7 11 beginning to tighten up a little
1101'0.
0
Cballberlaln:
ThAt mar end tomorrow and it the and oomea
tomorrow, I would be agalnet lt.
H.M.Jr:
How do you feel, Dan?
Boll:
Well, I think I am in t••or ot lt.
thought that the ti.lle we granted the other approYed the other ache•e or re•lttancee
at !50 a 110nth t.o thole people who bad
been rece1T1.ng lt oYer a ~erlod or a year,
we were dleorlalnatlng agaln1t the other
group who hadn't been reoe1T1ng lt but who
bad trlend• here who wanted to re•it &nd
we wouldn't permit that. I thlnk there
ought t o be aomethlng worked out to take
care ot tho ee p eo-ole. 1'he7 are in Juat ••
dlre need aa the one• who hA'f'e been rece1'f'1ng
1 t over a period ot aontb.a.
i'
Gee t on:
There 1a the c a 1e of the woiiAll wbo1e U:erlcan
hueband eatablleb.ed a truat ln Amerlca. Her
10n wee tn the French Ar.y and 11 nov a
prieone r and she Me no lnc ome. She wnte
to reAll tt on the truet eatabllahed b7 her
Amerlo an husband, now dead. TMt 1e Juet &I
a ppetllng a a where they hsve been gettlng
170
•
(·
• 16 -
I
re::alttanoee . I tblnt. rou ought to take 1t
caae by caee and decide 1 t by the merlte
of the l)&rticular caae.
c.>chron:
But the real eaergeno7 ca1e1 fall 1n t b.&t
category rethflr than the regular realttancee,
and I tblnlt we ought to get a little aore
generoua than we haYe been and where we
have caaee like thla which hae ao•e r:~e rlt,
I think we oould go through and take out a
lot &nd reduce the 'olg n\LID.ber of eome 5 , 000
ap-pllce.tlona that we are behind.
B.K.Jr:
How, Juet val t a mlnu te. Oolng b&ck to thll whAt I call the Norwegian ruling, how IIMJ
caeee were not taken care of where we ruled
for a year or aore1
Cbuberlaln:
We couldn 1t tell exaotl;r.
We roughl7 gueeeed
1 t mlgbt be 25~ or tbe oaoeo.
Why len ' t young Pehle here when they b&Ye
theee conferences?
I
CbUberlaln:
We oould ge t hlm here.
J. k.Jr:
How IIAnJ 414 lt leaYe1
Cbuberlaln:
The hlgbeot vao 25~ tbat wuld be taken
eere or.
BtU:
Under the preY1oue rullngt
H. M.Jr:
I thought ve vere go ing to tllke care at
moet ot thea.
Cbuberlal.n:
No, I don't think eo.
B.K.Jr:
Let'• Ju • t lesYe tMt to one elde a a1nute
and bov about th1e thlngt I forget wbether
lt 11 a 7ear or vhether 1t 11 Juet - bow
do JOU reel on thle French thingt
Boll:
You meM thh l.Aet proooal t1on of eendl.n.g
the reml t tanoee 1
( '"
Yee .
171
- 17 Bell:
I think we ought to do eome thlng.
ln f avor or doing eomethlng.
I u
B.M.Jr:
Hl.rry?
Vhltl!
'rhere 1a an avtul lot or preeeure and 1t
11 111 little hard t o 4e tend our poe1t1on.
Again, l t we were - could d.o lt with the
underatandlng l n the group that lt appllee
onl7 f or the .-oaent and doeen 1 t oone tltu te
preoe4ent, llttle by little the thing 11
being b r oken at variou s poin te and unti l
we tlnd out, which I t hink vill be &Yallable
•
Boll:
wlthln a couple or veelte , exactly how much
l a being paid out in Yarloue aaount a vbloh
we cannot tell yet, I think we ought to
be aa nlggerdl7 aa we can, but I do teel
th&t ov1 ng t o the preeeure that there 1a
on theee epectacular oaeee, that we ou.gb.t
to be a l ittle t:ore tlexlble ln per:~tttlng
the caeee to go out for the tlse being
wlthou't en7 refe r ence t o how long we will
cont tnue .
I ' m ln taYor ot generoue treatsent. I mean,
ve have thle big aocueul~t Uon ot oaaea, not
onlr the•• but others that are held up b7
t he whole aaob1nerr, and I thlnk. aoa t ot
the coa~ lfllnta are co•lng ln on th1e t )'J)e
ot eaae and I think 1 t 11 talr to go ahead
and olesr the:~ .
H.K.Jr:
Bernie?
Bernetetn:
The lndlYlduR l oasea a l wara a.ppea.l to our
hura.an1tar l l\n lnstlncta, and I thlnk ve tend
to tocua on the lnd l v14ul\l oa.ee vlthout
g1Ylng 1 t all the value neoeeearr to 'be
g 1Ten to the whole problell. One potnt thAt
oomee laoedl atelr ln mind 11, lt rou are
going to allow Amerloana to aend tunde to
their relat1Yea or trlenda in unoocup1ed
France ae long a a the dollare are Just
blocked, bov can rou deny the rrench
Oo•ernment i te rlght to uee 1 te blocked
dollars ln order to help oeople in tts own
unoocun ied area? The deo i el.on that ve mi ght
•
T
172
t·'
- la-
I
to tUe UJ be tt hAreh one, b\lt u.r
be dictAted by other cone1derat1o ne. I
aeaume that vae whAt wae 1n alnd 1n the
Pree\dent aA)'1ng to alt tight on all the
caaea except for theee exenrot1ona thAt
e'f'erybody ude.
have~
Now, the exeClpt1ona, •• I unde retan4 1t - H.W.Jr:
Don't be eo lega.l1at1o, Bernie.
abort. I haYe got th1.a. I
rrom each J)ereon.
"""t
Cut 1t
to bear
( Mr. Pehle entered the conference.)
Benute1n:
H.l!.Jr:
'l'be except1ona tbRt we bA•e aade, we bave
taken care of all Atler1oane and we b&.,.e
taken care or people oo111ng to thla oountrr,
even though the7 are not Mer 1cane , and we
are taking osre ot thoae who ha•e been
taken care or 1n the paat. 'l'be t'orelgner e,
vboae a1 tuAtlon 1a or1 tlc&l 'b7 'Ylrt'JI ot
the 1nvaa1on, are a problea that ha•e to
be conaldered ae a part of the whole aapeot
ot our rela tions to Europe rather than
in teras ot neceaaitJ.
I etill don • t know whore JOU are at.
I don't think we ought to grant theae
apol1oo t1ona.
H.M.Jr :
Fole7:
H.X. Jr:
Folo7:
H. W.Jr:
'l'Mt 11 vhst I wanted to hear.
I am in taYor ot atriot control, Mr. Secret&r J ,
and I think tbl\t theae exoept1on .. thAt we
are making attect the whole oolioy ot blockina:
theae tunch.
You are no t unblocking thea.
Well, you Are allowing dollar• to get into
France.
No, JOU are not. The7 are blooklng thia, 70U
aee.
!
173
~ --·
- 19 -
I
W'b.1te:
I
t
1
These particular oatee Are a type 1n vh1oh
the pay11ente - they wlll be troz.en here.
That may not laet very long, but tbl\t la
the particulAr kind ot cate we are. exulnlng.
So•ebo41 la going to give the• trance Md
take blocked dollar•. It la 80mevhere 1n
'between.
H.K.Jr:
It we were going to releaae a •Ull on dolla r e
worth or blocked money and let lt go , I
wouldn 't e.ak anybody'e adTloe , I vould ea:r
no, but AI I underetand lt, whl\t we are
do in g 11 , the Bank or France 11 orovldlng
the tu.nde.
ChA•"Oerlaln:
The doll~tre tMot are blocked here, France
paya there.
K.~ .Jr:
They are tlndlng the _,017 there and there
C~uunberlaln :
No new dollars go to France.
la no new •oney !lowe into France, le tharet
H.H.Jr:
Do you atlll reel the ea.,?
to preee you.
Fole1:
I don't want
~yba
1 don't know enough abou t thh dtu&Uon
to expreea an opinion, Kr. S.oret arr.
H.M.Jr:
Did rou ei t in on the
Pole1:
No.
;lation~l
City thtng'
H.M.Jr:
Herbert?
Galton:
I think where the tunde can remain blocked
in tble country, we ought to exa11i ne thoee
cseea snd deAl with the .oet aopealing one a,
ve ought to grant t hoee 1a01t appealing onee
ot ind1Yidu&l bArdehipe eo long •• t he tuode
reuin 1n thle coun tr7.
••1 anything?
H.M,Jr:
Pehle, do JOU want to
Pehle:
I tUe 1 t the issue 70u are dlaouaeing 11
the tranBm1 ttBl ot tunde to unoccupied France.
- ~~~--==
~. . . . . . . . . .L-__~
~
J-
,
................ ...........
~
174
- 20 -
I
Chamberlain:
I think the same rule holde 1n oooup l&d ,
doe an 1 t 1 t? The queetlon l e , doee the
a rea where trance OM be made available
aga1net blocked dol l ars, 10 th8t the
dol lAr a d on' t le &Ye the oounti"J' --
Pehle:
Th~ee
H.M.Jr:
I ndividual caeee, $50 A 110nth, $10 tor
are lndlvldual caaee.
each child.
I
T"
tl
D I
Pehle:
Well , we are already dolna t hAt nov.
oourae, we are up t o
t 50
Ot
a mo nth and 110.
Chamberla in :
Not tor all oal!lea.
Pehle:
Wel l , tor the caaea ln vhlcb they haYe
Gaston :
Yea .
Bell:
Tbllt 1o r1ght .
H.H.Jr:
been eend lng ln the paet. Ia the p roooaal
to widen tNtt out a U.ttle blt and 1nolu41ng
csaea where the7 ha'f'en 1 t been a ending ln
the put but atrlctlr on a e ltu a tlon where
it would blocked dollare only!
say thAt again, beoauae I didn 't und era t a nd
1t.
•1
~ ~
l!
Peble:
AI I undere tand the opreeent e1 tuat1on, we
haTe a general llce nee O\lt under vhlch,
whether the dollare are blocked or free,
payment ur be made to non-Amer1csne l n the
area \lJ) to $50 a month and $10 for each
ob1ld, and not 1n exoeee of $100 for the
tu117, 'but there a r e reetr1ct1one. the
reetr 1ot1one being thAt the papent e auet
b&Ye been made oYer a pe riod ln the paat
and we do haTe a hareS al tuat1on where the7
uy not have made an1 par•enta but there 1t
an e. . r genoy a1tuat1on now. In other warda,
ther bA" en 1 t been sen ding tWJ.da in t:he paet
bu t right nov they have to aend tunde 'beo&\lle
athe r eourcea of income haYe been out oft o r
beosuee a person 11 deet ltute or the7 are
111 o r something like tha t . I take lt it 11
175
..
Q
,I
- 21 -
...;I
that cl.aaa of caeee and onlJ in caaea
vbere the dolla.ra would be blocked.
...
""'·
,I
H.M.Jr:
That 1e r1gl>t.
Peble:
I would be in tavor of tbat on an 1nd1T1dual
case baela, in other word.a, not to 1aeue any
general - -
H.M.Jr:
Ind1Y1dual caee bAeie.
Oaeton:
Yee.
H.M.Jr:
An7one want to aay anything -aret
role7:
Vell --
H.M.Jr:
It rou are not eure , you don't baTe to enreae
7oureelt. OUJ. I feel tbat way. It would
onlJ be tor rranoe, vouldn 1 t 1tt
'
r 'l
Cb.aCiberla1n:
Only tor France.
Bell:
You reallJ hAYtn 1 t hlld auoh of a proble111
in Belglua and Holland yet, hA•e you7
Ohamberlain:
The Belgian problea, I think - ...
Pehle:
Conditione haTe been eo contuee4 we haven't
had eo aany.
Cbaal>era1n:
I V&a told the other day that a Belgian bad
come oYer here to try to get help troa the
Red Croae to tU.e csra ot the broad a1tuat1on
in Belg1U2. Kr. Pehle v1ll 1117 we hA't'l b&d
•ery few requeata from Belg1ua, and I wouldl\ 1 '
try
recouend aend1ng aoner
Belg1wa •'
preeent.
'o
'o
H.M.Jr:
You would notf
Cha.•berlain:
Because tba t wuld go atra1ght to the
Re1chabMk.
H. M. Jr:
I think, juetto parapbraee whAt Pehl.e aa14
on u, each caee on 1ta own merite, where
176
-
22 -
II
the money will be blocked until turther
notloe , I vould be v1ll1ng to aee that
th1o $50 a month and 110 a month tor eaoh
additional child be continued.
Cbul>erlA1n:
I don 1 t think 1 t v1ll laet •ery long,
Mr. Secretary.
H. M.Jr:
'rbat 1o all r1gbt.
Chuberlaln:
The polnt tMt la lapreeelng me 11 thAt 1 t
would help out an extremely dlttlcult
eltul!ltlon 1n France during thla period
ot trane1 tlon.
H. M.Jr:
Vell, until turther notice - do rou vant
to eaee up the thing where - Juet rule
that ther ba.Ye t o baYe eent the mone7
tor a year?
Cblulberla1n:
I think, Mr. Secretarr, that we had better
not change that rule unleea Mr. Pehle hae
Pelllo:
It we are no t changing that rule, I don't
·,.J
II
acme objections.
'r' J
I
~~
qulte understand what we are doing. Ve
euet be changing that rule. Ve are alread 7
allowing tunde to be aent o•er, and tbe
onlr thlng ve are dolng now 11 aarlng we
are eaalng up on the rule tbst theJ •uat
ba•e aent them 1n the paat.
Chaml>erla1n:
Only tor France.
Pehle;
Yea.
Chaml>erla1n:
I thlnt. v e ebouldn 1 t change the rule , but
altaplJ let lt be ln 1nd1Y1dUAl caaea,
leaue 1netruct1ona to J Our • en.
Pehle:
Oh, ve v111 take care ot lt .
H.N.Jr:
'!'he "001n t I am ralalng , oute1de o f France.
Let 1 e take Norwe.J, tor 1natance. I ha• e
been aend1ng money to eomebody there tor
atx •onthe. You say I OM only eend lt
tor a yeAr. Or, I Juat heard of a. tr1en4
177
...
e-
- 2} -
I
,(,
•I
I
Q)
that t want to eend aome money to.
Vhlte:
Ie that going to be blocked dollara'l
H.K.Jr:
No , free .
Bell:
In other vorde, 1ou are ra111ng the queetlon
&II
Juat railing lt.
•so
11•1 tat1on outalde of
•• to whether the
the French area ehould be broadened 1
H.M. Jr:
I u Juet ralalng 1t aa long aa ve are here
nov .
Bell:
Do you think lt la working all right , John'l
Peble:
\'ell, lt doean 1 t take CAre of all the CAitl.
H.M.Jr:
Vell, what proportion doee lt take c -. re ott
Pehle :
The rule thAt
H, K,Jr:
Not rranoe.
Pthle:
Will take care of a otrtaln n umber of the
oaeee . It la lltpOaelble to tell Juat bow
can7 thAt wlll take care of, but there
vtll be caeea falling ouu1de that area.
H.M.Jr:
Su-opoelng rou do thlt: euppoel ng the group
dovnetalrt aakea a little atudy, hov Mn7
oaeee are there pending outalde ot France
who are held ug becauee the Oeraan part ,
tbe tact th&t you hllve to bane been eend.lng
tor a year, l e the etwabllng bl ock.
h
jL~
I
)'OU
Juet agreed to - -
Chamberlain :
We w1ll do that •
H. Y.. Jr:
.A.nd haYe them eend the aoney tor how longt
Chamberlain:
81x aontha.
Pehle:
Mr. Secretary, our apol1cl'lt1on• that we baYe
been bold1ng wlll not ebow th&. t 1ntorMt1on.
In other words, tte -peraon comes ln and
eaye, 1 I want to eend 1200 to 111' niece who
need• some money. • He doe en' t say whether
he bae been sending 1t 1n the past or not .
178
...
i.
- 24 -
I
,(.
H.X.Jr :
How do you make the rule?
Pehl~:
\it hl've a gener&l 11cenae thllt operatee
qu1 te •part trom the 1nd1 vidual 11ceneee .
H. l!.Jr:
How 4o r ou :.Ue thAt rule work?
Peble:
87 the general llcene e . You aee. under
the general llcenua 1t goee through tbe
banka autocaattc ally a nd t b.e7 tlle r eporte .
They don't c ome to ue on a epeo1t1c baale.
Wh1 te:
But you vould have a n a c oo W\t ot all thoee
vho a ren ' t eat1at1ed by that generAl n.ale.1
You vould have that number , eo you vouldn t
I
4
know ....
-,
I
tl
Ill
..., ~
Peble:
We b.aYe all the caeea t hat "' are boldlng
that .. e•ed to ue not to t-.11 within lt,
a l thougb lt ho't entlrelt clear.
Vhlte:
We can vrlte back t o tbon tellova and
Peble:
Ot oouree, th8t w111 tend t o at l r up th11
Cbuberle1n:
You cou l d go back through your caaea and
aee bow raanr would ta ll ou~e1de t h 1e area.
t think that 1e one tblng the Sec retart
vanted to know, outa1de the French. area.
Pehle;
Yea .
Chamberlain:
the.t we could tell very eaa1ly and r ou
could probe.bl7 - you •1ght be able to make
ao~aeth1ng of a gueu a e to how a.any were
r eally emergency oaaee .
H.l!.Jr:
Vell, t a11 jUBt ra1e1ng the point. t ;aea.n
eo•ebody e&ld here t hAt v hAt t c&ll t he
Norveg1an ruling onl7 Ukea care ot 25~
ot the caaee .
Pehle:
Th&t 1 1 Tery !)Oaelbly true .
H.l!.Jr:
t would juat U te t o kn ow aom:e k i nd of a
ttnd out.
l eeue
ft
little b 1t.
c--
179
""I
- 25 -
I
report ot the p eople who are writing 1n
and c o:c:pla.1n1ng about 1 t, I aean, bow
many categor1ee do they tall into why
we can't take care ot
Pehle:
t
~
thee~.
Yell, there ie a eubetsn t h l category o r
cases where they have not - I think we
have enough --
H.~.Jr:
MAke a little etudy ot lt.
Peble:
Yee.
H.M.Jr:
Now wb&t e l ee have :you gott
Ct>uborla1n:
I haven ' t anr'th1ng elee to bring 1n except
to e&J that ve hAve taken care ot the I think the French - we b&.,.e worked out
probe.blJ - eucceede4 in getting them to
g1•e up e oae ot their req,ueete and we Dave
taken care or theca 80 tar •• their dipl omatic and Coneular expenditures ln tble
country are oonoerned. the others we are
holding, and I am trying to get hold ot
Berle today. He told me , you know, that
he wae going to take 1 t up again and the
aatter - thst aatter vill come up through
the State Dep~ te1ent b7 melf'ne or the French
Mbaeeador Ylr)' 110on.
.:)
I
H. M.Jr:
Does tha t olefl! r your docket tor tod8.7 ae
tar ae I aa ooncemed t
Ch&aberlaln:
That pretty well oleare the docket, I think.
H.K.Jr:
I won 1 t aek tor an7thtng elee.
tJ
160
Sept.ber 12, 1940
)11D P.M..
At a -~ in the! office of the SecretarJ'
attMlded. by tlbder Secret.&r7 Ball, eo.ptroller of the
~
I
~!
\
~
Del.aDo md Deputr ec.pt.roller tlptla, i t
wu
decided. that. a decUion in the •t.t.er of the appll~
Ucn of the Stocldard-Dotm intereet. to ..-tabllah tM
)11cbipn National Bank at. I.l.mina, 1U.cb1pn, rlt.h
branche• at GraDd Rap14a;, Bat.tl.e
C~,
KarMall, Port
Huron and Saginew eboul4 be postponed tor the pruent..
It w1ll be cONiidered later at tM convenience
Seeret.U7•
or the
,.
lSl
I
M!li:JlWIIJDit
To the
5ecre't.ar7
SiJC: national be.nk.a in Michi.pD. an owned
b7
the ..... intereate:
1. Lanaiq: lfaUooal Bank
2 . Firat llat.iooal Blzlk
) • Pint l&tiOD&l. 8&.D.k
4. Firat latiCGal ElllDk
s. n.rat Natioaal Tntst
.00 S.'riD&a 8aDk
6.
Saainaw Jlatioaal Bank
Loruoioc,
111-
0rand. Raptda,
111ch1cu
BatU. er..t, IU.c:M.caa
Manh&ll , tichS.pD
Port Haraa., lllchipl:l
Sq.1A&w, lll1ch1gu
The ownen ban applied.
tor
~don
to COD-
eolidah thea into one in.etiiution, with bMd otfic. 1n
LanaiAc ud branc:Ma ill t.be otber ti.,.. cUiea .
Atton>q Gen..-.1 1a.U... oal t.bo . ........,. ........U
ot llichisu rule that
i5UCh a at.ate-wide branch
s,'8tea in alich.J4a.n i ll lepl..
n.
B&nka in Kichi&an th1nka otherwiae -
it. rlolat. .
bank:ln.&
state SUperinteM.ent ot
u. a plrit or llich1cu
&Del cC"taiAl.T that
law.
ThU ottice baa coacl.ud..cl tbat t.htl appllcat.ioa.
abou.ld be a ppr"Cn'ed, except tor oa.e circuutaDce, I.Dd that
is
that the •tter now baa a political upeot. 1
182
- 2 -
people cl.Ai.a that approval wou.ld.
MM.
that the Rooe....eu
Adainbtratiaa ne toetu:l.De the •b1&• 1ntere.ta, pro.oti.D& aocopoliee, M4 belpin&: to de.tro)r tu
c~tT
1netit.utlcxul.
t.boae 1lbo cl&1a t.bat the st.&te ot
etat....!de branch
-u
Seaator Ycdcberc .ba.a joiDed
be.Dk1Dc
Mi~
does Dot wut
ud that we abou.ld not
•to.rce•
it ca t.he state .
We do not dab to atlr up a falH polit1cal
ia~Nt~
1n Michi&an and the count.rT to the po. .ible d.etriM:nt ot
(l)
\
:r-d.1.ate attizw&tln aetlca.
(2)
PoatponeM:Dt ot a bciaioo UDtU alter the electico.
(3)
Postpan...at ot a d.olaion until atter U.. llicldc:u.
Legbl-.ture bu bad u opportun1t7 to rerl"
ita lep.alatiaD ca. t.tlb wbject.
r
ID. t.b1a
evct there ahoul4 be 1.-.dJ&t. public umouao..ant to thla ett.ct.
PraatOD Dellmo
TREAS U RY DEPARTMENT
'
INTE R• O F FICE C OMM U NICATIO N
S.0H\.ar7 Mor &uth.A.
Kr. Cocb.ra
!be d.z r•rtl.Dc "Dulce exeouh4 tht follovlq
trnuMOtlo•la ncht.red.
thr liDCI
Solcl tO CO. . .roial CODCII"'II I
Porchated. fro. co.erol.&l coaoarat
Moat of t.be Nlta wen to cfWer
!he 7e4eral
aoD--repor tl.D&
1.."'" '
1~rh
i:6J ,()()()
L
9.000
of rubber u.4 U a .
!.uk toll £55.000 1D. U&hier.d.. ahrlinc to \Yo
bulk~ .
Ia the ope~~. .arbt, aterll.q: r--..1D.td at "·OFl/2 .U llq.
of the reportl.DC \&aka 1D opea .arbt ahrlirac n n aa tollont
Sold. to e~rc1&1 ooccer::u
.PuroU.ed. fro• ooa.ercial conoene
(
ll2 ,000
1!}2 .000
!be CuN.o p . .o , which hN ~OVD a vNk hD4tr.CT of lat e,
to l<>-'J(l6f, lhc:ount, aa apioat ll-9(16f,
•••••l'4a7·
!ru.taeUou
1~0Yec1
tod.q
!be other currucl. . Cllo•e4 &I follOVII
II
J
h i .. fraao
CaDM.l&D. 4ollar
hedlsb t:rou
Li ra
llaichaurt
Medcaa pe10
We p!U'Ch.a.lecl $51..998.000 la 1014 fro. the ean.rb4 aecoa\ of 1111
Jrit&D.Aic M&J11t711 Oo. .rnaeDt.
l
fl." \ ....
bother thr~uath ' • lONl ot $50 ,ooo to the Central :latent ~ of
n Sal.Tad.or vat ..ta b7 the 7td.eral lltttrn B.u: of lw York to4a,r. Aa collateral,
ibt J•b ral att aside «<ld Yalut4 at $56.941 fro• th Sa!Yadoreu \aak 't earaarC.4.
-.ecOWI.t. Slllce Au,cut Jl., a total of $250.000 , rqr..aatbc :fbt allotHoh of
$50.000 Ndl., baa hec loue4 to 11 lal.Tador, aecurM b7 $2111,257 1a pl4.
184
- 2 -
co ~ -,- 'AL
!be :r..t.ral ...." ' ~ of Iew York nponet to a.e t.he fol lGwhl.c
lbl;.ah of cold. froe Canadal
II
fi50,000.000 .tl1ppt4 b7 the Jaak of c.a.Aa to \be lt4enl :&.Hrn J.u.k, to
be ~ked. for accO\UI.t of Hie hlt&AD.tc MaJ•at7 1 e Ocrnrua.t.
1, 151,000 mtw-t b7 \he KoJ&l kDk of Cau4a for accom:at of the v..t;,alaeter J.Q:, LU. , Loa4oD, to \be Jukan f'ru.t C~,
Iw Tort[, for .ale to the 0. S• .A.eaq Office ..
i5l.i51.000row
!be Si&h ».pa.rt• ent forwar4e4 h u a ce.bh etailq that the lat1ou.l
CU.7 J.aak. HoD& Ionc. eht:ppt4 $131,000 lD pl4 fro• Heme Eocc t o \be Uerlc.u
f'rwlt Co~. S...O Jlnnohco, tor .al e to the t1. a. Mbt there.
!be Boabq pU price a4•u.ce4 the ~ui'f'll.hDt of 141 to $)16.25 , vhih
dlnr la ~._,. , . , u.~ at the ~uinlu\ of 1W.87~·
1a LoD40Jl, 90\ eUnr vu UD.chaqe4 at 2}-7/164.. !he forvaN. price • •
tiD4 1/164 lovu at 2}-J/14. the dbllar e>qui'tal. .h .,."' ~.561 u4 '-2:.~
HspK.Unl.7.
1mChaac" at
!be lfr..,tUZ7 1 t p1.rebaee price for forelp. eUTer vae abo UllOb.Mc-'
1uq u4 Karua 1 e ..tueaent price for forelp eUnr wae
~J/kl.
-
at~.
Ve .-de four :purcbae.. of dlnr tot.liDC 200.000 ounc.. UDder the
lt.lnr Purcbaee Aot, all of which wa1 .D.I'If' Jlro4uoUon fro• f onlp OO'IUlirltl,
for forwa.rd. 4al.in.J7 ..
t· J
II l,oo
· ~J
AI
185
Jo, 384.
Subject:
Unsucceaaful Sftorh to labarco luroptan
7unda 1n Peru.
!be Honorable
!he S.cr.t.,. of State,
INhiQ&ton.
"
Si r:
II
and Horn.r t hat
tun~
of those countri. . aow oa haDd in hru. be eab&rCOII4..
0
IUhel.ai D& , adclHutd a not.e to t he bAnke r s of Liaa,
all furu:t.a ow~cl
, J
presU~~abl;r
llf 1odh1.duala ud coepani. . of Ute lfetherlazld.a,
tbr QU&h
It
1JU
upla1ned clear~ in \he note that the JIIU'POit waa to p-eaarn L'lh wo~riJ'
for the legHWta owners , t.Dd t o . . - it s..po.. ibl• for
IHnt to obtain poue.. ion
~•
~·
Oeru.c cOTua-
tbe~or.
banker• referred the ~u..t t o llr. Ullo• (forwer W1nht er for
7ore1cD .Ufaira) -.bo .ct-4 •• lepl repr. .eat&Uft 1n the cue.
l.!t.er
atud;rbc t.iJ.t ltp.l .,.'l)eeh thorouQll.)t, M rtca.»n94 t:'l&t \."at bub Wora
the inqulr.r to \he eNact that there 1a DO lepl or -polltleal cause for
. tt hhol dinc f\Uldl fro~ the lepl ttroprietors thereof.
It h
un~ratood t.hat
tba banks replied tnat they would aab &'l'&ilabla all depollta to the le&H-
186
- 2 -
It wu et&Ud that the
Ge~
V:inhter :r•roteatlld. to the Klnh t f7 tor
7oHi&D Affaire ac&lDit the .c.Uon of tbe Cbarce 4 1.Ufal.na.
tor
ro"t.co Affa ire
The 1Unhtry
&eknowleq.d recel11t of tbt Gera.D llinhhr'• D.ote Wt
hru, a4dr.... a a eo.amleaUoD to tM '!fbhtry for J'orei&D .Lff&lr. in
of Nor.,.clan naUoaals in order to prohibit their rtoonl by Oenan later..ta .
!he !.!inhtry 1n thls case ~lmowle4ce4 recdpt of the DOte , 1Afo~4 the
loi"W'tcl&n JUD.hter that the toW aaount of 1ueh ~ 1n :hru wu
ext~]J
..U, and 41:! not t~ a Uflnite l!OdUOD •• to -.be~er the ~ eoa13.,
'!'heae are the oDI~ eM.. that ha,.. coat to the attenUon of the W1Dht rr
for Forei&A Affaire.
Both of theza were l n the iatereata of the naUoaals
of these teo cwntrl.. azul not 1D fa•or of 0.~.
rl
R. HIGJ'7' llonreb.
?U
"'''•
tru. Cl)lW of
the el&M'4 ori&l-
A
nal
(1) • ••.
187
G-2/2657-Z35
M.I.D., V.D.
Tntathe L.uone
hlht1n ao. ,.,
~~teabn 1~. 1940
'!J'3U1'17Z L1~SSONS FllOH !HI Rt.C:tn
J.C''UVI QAKP,UGI II J1JROPI
n4
M
Tb1t 41c;uant 11 belnc (lYQO en approved 4\ttribut.)op,
od4Hignal sgpitl art ue1hblt in th!!. Military ln-
ttllieence Dhhloq.
Itt ropro4uet1on 1n vbole or in
par~
i:3;~b~e~~~o~{~t~~:~;)o;:~~. 1 :;,~::.~~~t~::·:~·~1~~iarr
ln!oraat1on by the lUlit.x'7 Intell1ce11ee D1.-h1on and br
Rtclphntl of K.I .D. lrl!onaat1on 1 •
'l'he inferqt.lcn coDtaln.d. 1D tbh aerl. . of bullet1n1
will be restricted. to U.eae froa otticlal source• vblch art
reasonably eon!lrmeJ.. ~be lenon1 neceuarll)r are tentatht
and are in no senae =..t.ure stut'.lea .
..
'!'Mil liRITISH JNJ'ANTRI ':RAll!ttG c;ENl'ER
'I'bh bullet in 11 baaed upon notn taken by u official
Aaerlcan obeerver on the oecaelon of a Yhlt to a 'Brlt11b lntantry
train!~ center 1D June, 1940. ihe notta vere later checkM vHh
the pneral etatt o!f1cer la cb.tr&• of tra1::~.ia&, :Brlthh Var Oftlca .
i'rl
1,
GDZJW..
II.
VAR O:?PICE LE'l"'ER
III.
'l'RAlNUG PROGRAMS.
A.
:B.
C.
IV.
C')l
POS"f-MOBILIZA!IO:; 'l'E.Al.H!NG.
Infantry Trainlnc Syllabu•·
Progn_m of Speclallr.ed. Trdaln&; for Drlverl
nnd Carrier Perlol\nel.
Pro~P of Speelalhod. 'l'ra1.n1!1f!: for SlDlallen.
O:BSliRV.A:riOltS OJ TW!IIJ:G.
188
I.
G~!!n.AL.
The Infantry tra1n1nc center Ylt lted was that ot t~
Ox!ordthire and Bucki~ehire Licht Inr..ntry , In Jle&ce , When
it. was tho depot of thi s reg i~eAnt., H trdo.od recruH replac•=-nt•
tor t he two Rocnla r Ar.:t battalions of the n~i11.ent and bad a c.pacltf or 350 •en, 1nclud1Dl) tho Mn-co:aiubned bstructon.
Since the d.echret1on of var 1tl Septubu 1939, boudnc for an
edditional 1,600 :.en hat been erected, u4 t.Mre are raow .pprodca~el:;" 2,000 eon COI:llltantl7 to traln1Jl&.
.•I
Bofore t.tw war, all rocrul':.e cue froa the c~Un of
OxfordaMn and lluclcinchamshire, but under present war coDd.U.lcnt ,
they come from seven counties be\veen lhcti~cthire a.nd t.M tiellb
border. Fro• thh area ap'roxiiDI.td;r 350 newl:y ct.l.led conacrlpU
r et:o rt on the ri!teont.h of each 2onth. &ach new uoup !orca a recruit coapAn,y and coea tbrough tha tirtt. el&bt veoka 1 tralntnc ••
1 uolt. . There are tvo of the .. recruit CO!lJI&nies, each o! v!uch
absorbs a new rroup neT7 other DOD.th,
!hai traiDi:l£ cadre ~or each co.-paq cooshta ot three
o!fieen and ab.rut !Uteen u:-reanta. 'lb.e&a o!t1een an4 DODco-hdoued o!!\cen are t~ic"~d can, ettbe.r held baeir: fro• their
re~ar bettallona or ca lled to aetha l!,:u.t:· fro• the r oii!J.ler eJ'III:Y
Duri:~.c the !t:-1t ei~ht w. . kl , all men recoin identical
bade infantry trainin~. but oech h cuetullr observed e.nd rated
a• to hie qual1!1c11t1ona or adsytab1lH7 '!or becominc a ai&W-an,
a sotor driTer, ftr carrier feraonr.al. I! be 11 e.olo:ted !or traiDi~ as the drhn o! u
intaraal co•'buation et:..t:lne veh:clo, be recehes eisht. vee"'• ' "'urtbe:- trel!liD.fS. ~bh addttior.al period 11
d.eYoted. &&ir.ly to preet!.e&l wou in d..r:Yi::a,: ~t..n4 11111Dte~ee o!
Yehielea.
I! selected !or special trai.o.in« •• a a iOtAlle r or ••
carrier perso.1nel , he receives 12 veeln 1 a4dit1oaal epecialht
training.
Mea vho aath'!actorily co:zplete the !irst eitht ueke '
bade train itt..::; but !J:.l .ng1 e..tecud tor 11Pecial1ct trahl.inc are
che"l a e eco44 eitM veeke' traini~ •• rine:w11 ud I~antrr -arta.r pereo11nal. ':'hie eecoad period le u~ed., ic ~nerel, !or coothluat1o11 or the tra111iDC ~:hen in the !lrst ei~t wake, vtth
additional tlae at~d o.,baate on eerteln subjects .
h. el-.ould be ur.d.entcod tb#tt e nlr U:.o t1rd elcht wake
are spent in the r ecruit or intake CC!:IJ)aft¥ • All 8d.dit1eDAl training h ginn in companies or dotechmente orcanhed !or thl.t purpoee.
QOllllPIJ§'UI.
-2-
189
Si.;nallera trained at In!at~try training ccntera are
destined for ""lee with rifle co=panlea and battallou oaly ,
and not vi th dcn-.1 Or£an1tat1ona o ! d.hhiona or higher echelons , !•en to be u ..d. in the latter unit. a.ro trai ned by, and
become membera o!, the Royal Corp a of Si«J~&h. Sif116llera
trained a t Infa:u.r:.· t r aining centers do not nccive radio inatruction .
Upon eoncludon or 16 veab 1 aa\h!actor;r tralniQC
fro:~~ trainla,c centers to one of tM
•• rifle:Den , tralneea
follov1n& voupa:
,o
A, lQftntry Orctniutipn.J. 'ihen reph.ce::~eot~ an
needed, every effo rt 1t Dade to furnhh them f r olll the aU~e ter r1t or1el a rea to whi ch the orgarthe.tion belongo.
B.
Ho l dlyc Battalio"'lt ,
the .. bat.t&llona CODih\ of
•aryin& nubers of war atreii,ftb co~l ... accor.;\1Dti: to the
houaln& di:OI'Clty of the ca.::~pa or ueaa (billets) to which they
ere aad01ec!. . ';My &r e oot or«elliud or cbued as tactictl
units and do not !or:a "Carts of bricadel c r dhislon• . Howver,
tbe;r do reeaiYa tralnin& annro'flriftta to b!'-.ntry be.ttdions and
brieades . Vhln first inati"tut~d, boldine battalio ns vera intended t o be reurvoir• of trained aen fo r rr.)lacementa to
editing di vision•. Under pr esent eircWIItences, with invasion
ot Ensland thr ..tened , t hei r oen «O to depleted or ganhations
r eturned fro• France end t o ho':le dotenu uni t n .
II.
VAA OYPI C& IZ:'TER OU POS':'-HOlJILIZ.IalO!i TRAI:mm.
Quoted below 1a a recent Var Ottica latter on tM wbJect of poat-aobilhat.ion traint:aa: at lnfantr1 traifti.a« canters.
Reference ahould ba ude to Pa ract"A1'lh III, tnia bulletin, which
pre.enta a tnininc syllabus . The lett e r follo ws :
11'rhe otti cor com=.anding the infantry depot in peace
11 ctwrged with the dut j" o!' preparhc a detoiled syllabus tor
post- .:liObili&atloo training. On mobilhation, 1t thh officer
11 not in co:a1111nd hi:lult, he rill be u•oons1bl o to the lieutenant-colonel eou.anc!111£: the I ntontey' tnininc center tor the
org&.olh:atioa and •uperviaion of all t ra1nlllf'.
•<ZM d~ot co::D&:lder should, in ~ace, r:aintaia close
t ouch with the atfilleted ':(erritor ial A:r=:/ u.a.ita in order t bat
ha Coay" aueu the cepabillt iea of titO instructional staff ha
will ro:eivo fre• tlwua, and ho should u..e thia information to
COUrtDEN':'IAL
-3-
19J
t.he hat ad.vantaee. Thla perso!Ulel 1s due to Join hill at Z
(I~) .f. 7 d.a;"a .
l!' Uae MM111ta-tbat 11, 1.f the 1ncreMnt. h
not for;ed at onee-thh ~erri\orlal AnJ:t personnel abould 'W
put thro1J&b refreaber cour•ea to fh thea for ins tructint; 1n
the IU'bjech for which they have been designated .
personnel
I
J
11 Ant1-{'aa and 'DAUhe a1r detenae tra1D1ng of all
nt the cont.en wi ll receive 1=:~~ed1ete at ..
ar r ivi:~&
tent1on.
'With r egard t o tho t.rt11'11n.& of r eaervhtt, priority should be given to the followlnc wbJecte :
A. • Prov111on of lnttructore in drhlng and tu.lr:r
uaance . If these t!re not available , arr angecent s mus t be
ll&da \Q train inatructort eBber locally or on coZ~aAd and
arett courses.
:B. •?ninlnt; of drhert of internal co:=ibuation an1111• wet.iclea and carrier per ao.lnel .
C.
•Cadre eouraeG to proTide instruct ors i n the 3re:'l
D, 11 lna truct1on o! ell ruorTiltl in the :Bren £'W1
and antitar.lc rifle .
"Personnel of the center should be d.ealgnated to tak:o
1hort counea at t!le v(U'ious vla,s of the S::l.t.ll J.rr.:.a School ,
includinc the an't.i~a• wine.
1Two IIIQtoreyc:lilts wat ba 1.urned. out zonthl7: ona
of these will be trained in tt':.e llr.n&l ~btoon, and one in tbe
Infantry eo~. 'fhe1 will count epinst the e:uthorhed
s treftl!ths of these units.
1 '!b.e t r ainiac conter 08¥ be r equired to hold to a
'i'bese o r neera are co~~niasloned froll .-arious sources . Arr~~ents
IIIUit. be .ado to utilize the~ aecord1n, to their capabilities ,
to prepare the= for cour11es •uch •• llsnal , etc ., end to cho
them technical in1truction in drivlns and maint enance , otc.,
ao r equired. M
aax111U:! of 12 officers o••r wtt.oriud stren,rtll.
I It.
TRA.H WG PROORA;(S.
~.
InCrntrv ~re1n1n« Sxll..&mJ..
Tbil syllabus h u . .d u
a cu!de only .
It 1a baaed
191
upon a worktna:; veek of 44 periodt, each 45 minute. lo~.
avaHeblo periode e.ro utilized.
All : RiCle=eo t:.
: ~aio- = 3 1 !:Ortar
I
:
J
1
Subject
.,.,
: Pengnnol
•jtbic:lu
Carrier
ftugppd
Strnelleu
: Pe r iode :Perio4• :'l'otal: Pe rioo.t :':'otol:Per1o4e :ll'otal :Period•: Total
:Dur in& :Dw-tnc : f'or : Du.rl:l& : for :Durlnc : !or :Duri n< : for
: bt 8 :u 8 Sine~ 24 8 : Dr1-:Re:::~&in-:Carri1-Re.ain-: Sit: Week• : V"eeke : mea ; Weekt : .-en : 1n.g 12 : er
: 1:11 1a ; nal:
:
:
:
: Week• : ParroDt' Veekt : l en
: ne
Drill
eo
20
:eo
20
:eo
eo
35
75
35
75
35
: ?5
75
10
75
65
10
: 75
65
10
10
: 10
10
90
60
40
: 90
60
10
10
: 20
10
: 30
30
:130
30
60
Rttle
65
~ Jqonet
10
Lt1ht. :.tachine
Gun
60
40
.lnt.ltaok Rifle
10
10
a•
:Drh'ere or 1M
:tarnal Co:abua+
: tion l.ftc:loe :
.Ul
20
Kortar
:
GreB&de
Vl tu.~~l
Train1fl8,:
Jud&tnc Dis- :
tnnco, Vee of :
Ground, Et c .
O.o
Marchtnc
Interior Eeono.a:cy-:
5
:so
: 30
30
12
'""
:20
':'acUce, Includ-:
he Dtcgtng & :
Vir inc
:ro
:tO
9:)
15
35
20
: 120
30
: 60
: 100
: 50
15
: 15
: 20
: 20
:20
35
60
,
t "'1 0
l
Infantry Training Syllabu• (Continued)
:Driven o! ln+
: Ritleoen & :tern&! Coabas,.
All
.
Carrier
:Uon lnct.ne :
:'I'raln- : 3• Mortar
: Penonnel : St.plleu
: VeHelet
: Pe::-sonnel
: ees
:Period.a :Pf'riods :!'otal:P.t riol":t:To t al :Perioda:'l'otal:Perioda : 'l'ot•l
:Durin& =Du.rt.ac : for ~Du:t.ac: : !or :Durin& : !or :Durt.ac : for
8 :24 8 :Rt.ne: 2d 8 : Dr~-: R.-t.n-: Car-:ReM;t.a-: St.c.Vee kl :V. .Jte : .oen: Weeks :nu :ir~C 12~rier :111.1 12: aal: \'eeka : Per-: Veeka : len
:
•
·
,
:lat.
~bJect
: •on-:
: nol :
60
Sptet.alt. zed
Traint.q ..
'60
: 19
10
Speclalhed
!ra.inln& in
DrlTt.ac &
19
: 29
: 210
=210
: 10
11
: 21
264
=264
30
=30
30
:30
:sao
528
' 880
Ma.t.ntenance
0
_j Spoohlhod
Training for
Carrier Pe rtonne!
~clalhed
frainin& b
St.pal.UD«
ltq
Jt.:~ adln&
10
_ _TO=r"'JJ.'--'-'::_3:;,52'-- : 352
: 10
: ?04
39
: 3B2
30
:'104
: 528
11
Spec:ialhed tra ini nc; w1ll t.nclul!e 4 11:-n trained at 3 aortu pe rtoll:'lel; 1 11an
tra ined aa r angotakcr ; 107 a<.n furt.hor train~d 1n tacHes or otho)r tubjactt
• t dt.scr()tion of unit co._nciers.
It will 'bl! no!. ed that. in tia !'or...toin&: •Jll•bu•, 210
peri ods •r• allotted to driTcts tor trainiag ill drhi~ and •intennnce ; 264 pf'rlodt to carrier penonntl ~or •rec1al1z ed tratninc;
nnd 400 periods t o tignollcrt for tro t r.1f14:; dCt£-llitlt!J • ~he brcakdovA ol" the . . lu.I'P tU!II 1n r iodt lt t • follov11 :
193
PrB.ct1ct.l Drh\nc lnstl"lreHo_;),
Prtct1cel 1'\tioUDl'DCe
Lec~uru and t't.eoretica.l lustruc!.lon
210
Cprrier PonoMtl
J
Pr!l.ctical Dr1v1n~ Instruction (Wheel Vuhlclu)
Prect i cc.l l>rlvlna: Ins truction {Treclc Vehlcl n}
Practical ~tai!'lte!\Anee (Wheel Yehicl . .)
Preettcnl l!.,!intenlnee ('rr nck: Vehlelee)
Lecture s and Th~reUcal Instruction
Prono;n of S"lee\dhgd Treh1M
C.
Su_bjf!Ct
luuer
27
55
27
~
ror
Signr.lltrt,
:;!d : 34 4th : 5t h : 6th :7th 8 th 9th :10th:llt.h : l 2tht To tnl
:l11t
:lleek Veek : lfoe•· W'oek : \ieok:'~eek:Week \Jee.c Weelt:Vee k:\leek:Veek: Perl-
~
!.cop
50
' 6
: 5
s-.pbore
(Se•phore :
Drill cot - :
-
''
5
5
1"
'
2
2
'
5
3
3"
'
'
'
'
3
5
3
'
'
'
5
5
'
'
'
5
7
• •
'
'
'
5
5
5
'
'
'
'
3
3
3
' 11
'1
'
....
30
:
ed by
Asterisks) :
.il@OO
~X:e)'
Lamp
!uner
: S
: 2
s-,hore
~
Norse Code
: 3
Procecli.ur•
: 6
Stcnallin& : 2
Lamp (Short :
bnge) .
2
2
'
'
;
2
'
1
6
' -1
5
'
'
1
'
3
' 2
' 2
' 2
5
10
10
10
3
25
2
-7-
t
'
..,
ht
~s
3d. 14t h : 5th :6th :7th :8th :9th :10th:llth:12th:'ro tal
2d
~ttk:Week:VeUzVeek:Veelc:Veek:Veek:Yealt:Veek:Weeii::Veek:Veek:P.r1-
So.abject
(Coot.
BeHoeraph
Telephone
3
:
-
4
:
-
: 2
: l
a·
:
-
-
: 3
: 8
(J.surhk
hdlcaus
PraeUcal
, .. u 1.ft
.l
D.Mk.V.
'i'elephone)
llectricit)'
(Rqlaectel.
•
:
Si~lere
l.aovled,;e)
1
Pbant &
LiM Teeter
(~tter lioted:
bf J.sterbk):
~ ';::!on•
~
: 3
: 2•
Gal•a.nooeter
:
lhld Ca'blea
(la.tptr:r)
Jola.UD.C
:
: 2
: 3
-
3
:
2
: l
: 3
t~
•
:
: 2
: 6
: 2
Ord.eru..
J,
•
: 6
: 2
Phonocru•
hchanc•
Operat.tnc
: 2
:
lulllrphone'fo Include
Pract1cd
Infantry !att e lion Co=lNA!cat1one
-
• :
2
Rc7al ArtillerJ Coaa.:.nicaUooe
Cavalry Com-
:
:
-
- ., •
: 2
: l
: l
: l
: l
II'IJ,.ll\cat1one
l'l!JCTICAL
Bello Ali&n-
: 3
Inc
ull ;
~
QQ!J'I
m::rrt,u.
-a..
: 3
PW!lC.IL
(Co••·>
I
l
: 3
Pair Work
(fl-1 S!g>
aall and
Lloe ~elec-:
...pb:)
Line Station:
Vort Scheme :
EJ:chance
Oper ating
Jolnt llli;
Ca'bh Lq-
IDe
5
:
<
: 6
•
: 2
::..
: 4
:
-
: 3
:
1
: 2
:
(n••
•
-
:
:
•
: 1
3
•
'
130
: 2
:
: 2
:
: 10
•
:
-
: 11
M&loteoance:
ad Pc..uH.
I'ID4!,..l
SP.1D Pili.IODS : 1
_)
..J
: 1
: 1
: 1
: 1
HS'rS
('l'ut.s on
l'hld liork
loted by
1
:-
5
: 5
5
: 5
: 5
: 5
:
..
: 40
.Utar ittl
:12
: 12
:10
:U
: 24
:34
:34
: 400
nuL nsts
;'
tOtAL PZRIODS ::!3
IV.
: 33
:33
::!3
:33
:33
:33
:33
:34
:34
OBSERVJr:riONS 0 11 TRAINING.
In ph)•lical train:!~ the c:-eate•t. e:::rpb.o.ah h placed on
the d.e.,.lopoent ot ~1lit.7 a.od quicot tbiDklq . All exerch. . u4
~· uDed are !or that l')U.""J)J. . . vblle endurance is deyeloped b7
infantry clrilh a.ld. roai taarchel under tull pack .
Fac1llt1es !or ter,;n Jltac•iee are lt.U.ad to a 30-yt.rd.
range fo r the aervlca rifle and .ann ,un, lnd a 50-!oot, . 22 cdiber
indoor ranae. r-trl\ !iring h don• on the s:DCll bora ranee, when
f iring :poaitlODI, trlfger a queezl , proper ll£bt1D.g, etc. , are streued.
19G
ranee until
Men do not fire the ..nice rifle on t he 3C>--)'ard .
rancare co:ll14ere d quall!"hd o n the e-.11 'bore
J
t~
tb~
When the ..n grad\l.&te t o the unlet rifle r~,
the; tull uumltion
tire a !aw rounds eney lev !!a¥•, rather than
to t1rlac. Dw-tnc
allowance durlnc eonucut! n dqe daToUd. oD17
1
to 200 ro®d.e wit h bh
the 16 weexs traintnc, each man !1ree 150
on the !1r1cc Una at
serrlee rifle. Usually onl:r cne HC\.lon h
b:y hie eecUoo leMer
An¥ one t lae, and each ::aan h coached both
ehot who hae 110 other
and b)' a IIJ>8Cially !)icked. aer,eant, on expert
tbtl sere-ant pea oTtlr
dut1e1. Attar a aaD has fired fha ro~l ,
u4 \I» 4ate of
DAM~
hh
hh tarctt vHh hia; it 11 u.rked. with
hie preTloue hrpt
tiri:a,g, Tho noxt time be COlllel up to tire,
vltb a rlev
ur~&rlt
the
Yith
it
over
..
E;O
be
i t broU«bt out , and
in poor Roh.
t o correct1na : errors which have pnrtous~ retulted.
4rhera and
Shorhi$ of standard eq_uip:aent for traint.nc
carrhra and. \vo
carrier pereoMel 11 acute. Onl!" two Bran CUJI;
Aa tubtl. itutet, 14 co:mercia l :panaDariD)' trucks vere available .
and vera beicc used
cer Tehielee b&:.d bee:~. l)urehated , second-ban d,
creauet 4ravba ell::
tor tulnin& 4rbera. ~ lnatru.cto r ..14 the
ha.n lfllUO-M• h
to the u . . o! these •ehiel.. waa that they all
e:zc:r,:,t paa..nger
vehicle,
~
ato..ndard
no
par chancin& , vherua
h aeara, ha
c.art , had thh . Ken trrint'Cl to 4r1n vlt'l a:-DCro-.aacbangft. o•er.
the1
when
pare
ttral.oht
crashed
and
etr1Tlpad
said,
tlon 1n
Ken "ho hAve :lOt reeched a na~ of 1qual1f1ca
train!~ are
All subJects a t the en.i ot t J.e !1ret e1cht veekt
belnc
of
inatf!le.d
tu'bjeett,
all
in
turned back to start over •cain
in "bleb tba7 are
'?Ut tn e:paeial clattet devotel. to U:.e tubJeett
and of the full 16
tb.e
at.
qual1tie4
not
haa
can
a
Ir
1
.
daticient
aaeond el9lt weka
veeks, he goaa back to the be,ginnlng of the
coiipt:Q" o! 350 111-n
trainlnc. 'l'urnbe.eks tl'o:a each !'1ret-per 1ot
7.
ban a•eraged 12; f'roa each eecond"'Pe rlod. co~,
cuter
Bo tactical traillln.;: 1a c!n"3 at t ba tralnl=c
order. further
bo:yond. tb.at o! a COIIJ)ADY of In!antcy tn extended
one
orpnhatl
the
to
or
trainlnc h loft to tho holding battalion
h placed on the
to vhlch ~~en are l ater attlc:J.ed. All upb.ct1t
can alBrltleh
tbt
Thst
trainlnc.
l
tndirldua
&t"eatas t pottlble
that tbe;r ban a.a!l¥
ford to do thlt 1t, o! courtt, due to the !tLCt
or&&:lh:at lont C&:1
_,re un t r ained or in tra lnln&: than e.zhtitt.c
and. ~ip:MDt to
er::s•
the
ban
t
t:U.t
ont
ort;uhat1
Such
abtorb.
in!a.ntey battalions.
&be t actical tralnina: to u.nltl lareer than
~and !ac•4 vitb
Vit.a. all Brltlah troopa out of P'raace and vlth
• can boa utK ••
tM thraat ot Can an inntlo.:l. , boldla,: battalion
!or auJ:1
beach patrols, anti-para chute troop s , and pertoDAal
..-. I
other ho. . defante
JNl'l)O'''·
[I
I
-lo-
6
197
,,
OQITlf!t!l.lJr
atand&l'd of 1.D41vld\la l t.ra1Diz1« 11 • •ry
abo~t
ht.ch. Onl7
'l'he
teYen :H:n. out or 350 !aU to r ..cb u atur 16 weet.
boll
Rar:u!u J.nct ..rputt oa
4ut,'w1t.b
t.hh 11 &. tribute to the 15
tbe lnt nr ud ha•e
II'Ch coap~. Mo s t of thut mt>n went throuch
the.a. or ool1 r ...
atoce
ntc:e
..
eethe
OD
d7
coat1nuou
been tither
tbl prototn. . or
centl7 reUn4. !tA7 cont\4er Ultasehu at
h the . . r~ut • ,
the ••n the:y are trat nine, t.nd nery trda~•
an:;,.
new
the
in
tl•e
r~reaenta
personal
cood,
The barnck:a art co;Afortab le, the Mn 11 .,.Z7
tnlu4 .c)l41ert
aM the dnelopme nt or the Mn fro21 recruits to
..a, ud aelfh edcltnt in their pb,"ictut, ••nne.. , alertn
a cain of 1 to l~
confidenc e . h 11 ta1d t nat. the ..'\ ntnc.e
\Debes hl cheat •uure:an t aM 14
16 wetlr:t .
po~t
in wtpt. 4ur1n.t the
te,arate
Then are toJDe 60 nr&-ea.Dts on clut)'. TM7 han
a wash bet1D wUb Mt
barrackl viil: ro.,.t for two, keh ro011 bat
bulh-lD locken ,
and cold vater, two f'ull-dze d btdt , tvo larp
\able chdrs. 'tbe
a lart• \able .,.ith read1nc la=p, t.t~.-:1 tt.to coafor
" 1"7
their ovn bar and. recr.aU~D :o~. vblcb h
..rpanta
n ch\Da , clan ,
well !urnhhed. ; \helr ovn ..... v1tb !lrst-cla
coM 1D \o
Tbe!'
cook.
cood.
eztreaely
an.
and
11Den,
aUYer, and
!.eat d.epM , aD4 tlw7
41Dner polhhed, prene4, acd. uoo. .d to tbll
are an impreuh e lot o! aold.iUA.
ha••
the school
hcep\ !'or the col•J:m or three• tnlDlcc 1D
co~, &D4 lD both
of the aoldier, ln \he sec~lon, platoon, &04
on that
our
like
~ch
so
11
forut1on1
orC:.or
clroae and u.tenc!.od
, and aup •b1t vill not be described . 'fat~ a-.rhen , prec111oD
on. are, boWYeT , vortb;J
talced 1ft e•ery fo:-a of drill acd lnau-uc\!
to orders 11 a
of ewl.ation ln Bny army. O}a.ick:liiG o! r eapoa11
by MD vbo ~
at.roacl1 atn. .ed point , Cbanl;lllt' of tM ('\lard
do.a.e
vo'lld
,t\lst nnhhed the rlrat elcbt web' trrlniac
credit to :zuch older soldiers .
ba••
4r11l . It
On.e nn· lntereaHD S platoon v . . ob. .n-.4 at
fro• chll ur.
vas co11p0aed of secoad. Ueut.oa•n .ts nevlr &")'tointed
stellar to our
vtth oo prior •tllt.ar7 tralnlot: 'teyond aoooeth\ac
u, a wll lalovrr.
R,O,'!'.C. A.:!onc these !DIID wre two Oxford lnstructo the l&rl of
and
b&rrhUr •••eral mem}ers of the lar:.ded £(1Ctrr,
rotular 16 veeks'
~ldnchr~sh1u. 'l'b.e7 ~r,. bel.ac put tl..rot.(b thecourses.
cour .. , vltb ex-t.ra vo=-11: 1n t.be f?r• of of!'lceu'
pr~ t lcal
Drhen an4 carrier personn.el a:e trained ln
of ro..ta; 1D pre.o4rh1f1C throu,c.h bea.,y tra.ftlc end on all ttpel
ud
relr..allt,
aA4
town
:.or:l
are
vhlcb
tlcal aalnunan ce on ••hlclll
and by •tud.f C't
lo thf'Or!f by lectures tlluatra.te d v1th clra~o1n,c•
•
-11-
16
193
ttrlw•d or ..cuonal1u4 •nc-hl.et, e.beuh, .... alactrlcal u4
lutrlcat.~D&
aytU:st.
TraiDl~
ln 11cna.JUac h alllon. eoUral7 pracUeal.
Great npbuh h placo4 on knavle4ct of t.bl Nor" cod.• aA4 ita
t.ra.aulnlon ud r K~U.oa l:.7 MOf MMI aulbble . SxcPl\ tor
clau iD<~t.nteUoo,
alVIt,Jt vork h. "'lain, wt:lch .rt cb&Dc'e4
•n
hCb
4Q.
Anq
h-.• prevt.oull)' beu publhba4 1rl 'l'Dt'A.ttn U:S!i:)IS ltn.LI":liSI
'l'he tollowln& ln!o~Uoa on t.ralolQ.C la t.ha blt.hb
n.!.l!o..
n•.Y
10
UCOtCY.EJ])JS'IO!JS OP I. BJUTISH
OrJ'lCER tJ,;.gD 01 :::xn:RIEI':J IJ
!!B ~l.U CJ.iQ>AlGI
--.rt.a
ud
oo t.l:lll .nlu
of lrlt.lt•
4a!e~t.t
aqu.tpaaat. lo nu4.an.
Gua:-al DOt. . u.4
r.co ...A4at.loat,
so:a A.SP:CTS Oi" "'RAiliNG Ill
'!!G "lRI'rtB A..'IA"r
A.dnntuet of t.rah.lac
ceaur •tbo4 o•tr
tra1nl"' l a \.acUc4ll
unlu.
•~ul\7
tor
D04lf'71A& MU>Odl,
alt.!w,.. DOt p1laclpl.. ,
of tr&iDlA&•
r
37
l!IFO:UUL *l'PIS OJ O."<ll.Sl%.'%101
A.ltl ":'RA!Pllm 01 !RITtsil COliSCRIP!' lORCIS
BeDaJ'ks oD tralalac of
tbli •llU.la (ullM up
Jul7 and Stpt•'Mr,
•o4 h.Ur a)sorbed. b7 tM . .r-.lar
h
1~9.
..._).
F.JRTliER J<r.':ES OX JA.SlC !JU.liIJG Ul T!G 1'!\l':'IS.'I 1RlJ
~aUoas for tM
U.S. Jatloaal Oua.r4.
be led. 01111 Jrlt hb • ._..
pu1eoc:•. J.c\Gal
ronlt• of too4 k11c
tralclD._. lot•• oa
"u'bl1~ !t. terr1tor1al
"'"'·
-12-
06
Jl
(Poria)
VlC.l:f
UO.ttJ 3cptrr:f cr 12 , 1':40
Rce 1 !1 7 : 23
p .~ .
Sccrctar:; of 3tatc ,
·.lash!ngton .
549 ,
Scp~tmtcr
12 , 0 p . m.
(SEC'!'I.O!I ONE)
FOR TEE TREAS~J:f.i F3C:~ r.ATTH£1VS ,
FC::t ;..oa£t: GUAR..UiTY '7 r:ST Cct::'.UIY Fn: t .\ HE'M'.
"L"'l or<&tr to carry
)Ut
cable 7310 our ... ntcntio::.
proviC:.r ncccsacn cas..
assets
5'.\Ch 8.!'1
w1ahts txprtssr>! 1n your
is as rapidly as we cE.n
lNug..'l liquidation o!' ctui.ck
French Go·.rc:rnmtnt boncia to request oany
of our ordlnar:· in.:iividual and commcrc!4 'tpositors
to withdraw fr:.nc crcGit
~alancu
31v1no the a.s ou;-
111otivc s:.:::ply our dcs irt to !'O:::Jtrict our businua un<!tr
_;~ro:bcnt clrcw~t.l.."\Cts .
'oo;-rowlns custo:ntrs
\7£
f'ith respect to ca:~Dr::rcl.ll
feel we must of course continue
to ~cc cpt their tr.:nc deposits 1JUsmucil c.s part ot thuc
dq,osits \'\"oulo;... nolT.l!:.lly or co1·.l•
rc:::ucc 1ndc!ltc'-ntss to us .
cvn'!tu:-~ly 'Jc uuJ to
.It r.ill proc ££.1 to 11quidc.tt
:.s r.:1p!dly ,..:. conditions ;cr::ut o~l1g-t1on::! tc us ot
~urcly Frcnc!1. eanpc.nl.tS ::ut ":Yould bt gl.:..!. to h:'Vt ::·ou
:ldvisc us if you tu:l
·.1£
~houlti press or even request
subs1C:.io::..:-U:.; of .~.o~!rico.n c<nJ!'.nira to retire or r~:d.uec
lndcbtcdncss th::.t is cu:.:·~.ntc::C:. 'b:r ourvcyor comp.:.ni.ta.
E:IB
AS
GRAY
(rario)
Vichy
DatEd Sr:phcbtr 13, l9.a
Rrc 1 c! 10:53 p,,.,
of State,
S~:crctary
Washington.
549, S<pt<obc:r 12, 6 p. m. (SECTIOU 1110) ,
11~::
hav.: in !:lind particularly our hravil:at borronr tbc-
Girond~:
wbo·oc account and financing it 1a our idr:a to
oontinu~:
r:ntly..
hancUing as at prce.:nt unhea you fn:l dithrPlcaet: cable us ~h£tklcr this ~nual programme
is in accord •1 th your o;rn idca.a .
nat!!rally
proc~:cd
aa prudently
&a
'l'lb.il~:
we will
poaaiblc in requntt.Dc
ckpoai t wi thdrawa:a you Will raalisc that tt::i e eay n"crth~:l.:se
prcoipi tate tm1nv1 ted wi thd.rawals prior 1:0 our
readiness to mn:t them easily and also that our
progra:tmt: might n:aul t in the
die~iniabing
~naal
or oancr:ll&tion
ot our r t: diocount fac111 the which :dgbt product: e \ ro\Datanc~:s und~:r
which we wo-.Jld hava- to c&ll on you for
dollars to rx.-t our f ranc ~:ngagcea:ntl unless w could
readily obtain liquidation through l:l!rrtoan guarantors
of 1ndEfttcdncce to us of t heir subo1diarh:G.
We fl:ol
th&t
2~1
.I.S-2.- No . 549, S•Pt. 12, 6 p.m. (SEOTIO!l '1'110) , fr. Vichy.
that with regard to the two loan · coounte of Columbia
Filice B.A. 1nae:~uch as there 1& nr• poae1b111ty of rcper~ent by French cOI:!l.pany you should 1-=d.iatcly call on
parent company as guaro.ntor to Pay ott on Octobe-r firat
franca Z:SOO,OOO maturing on that dah and alae france
9,600,COO whi ch is carried by U'ruguayana subject to rcpay:t:nt uno.cr ten d.aye notice.
Sugg£ et your replying thie
cable thl'OUfh Wa.:ahington•.
F.."'T your 1niOlt!:&ti on the fort.g01nt; is :...n reply to
0•
a
t~::lcgram
received by !hrrctt toda.y inatn;.f"ting him to
rcG.ucc franc: dcpoai t s ru:d !reno atflE"tB of
t~c
Gu:.J.·anty
Trust Compar.:,• at Vlchy , Pari9 and I.e Ho.vrc •es rapidly
ae possible'"
Tlu: •G1rondc 1 nfc1"'rcd 1.o is Frcncb eub-
e i.d1a:ry of t!lt.
~xaa
Oil Cor:pany.
(END OJ IIESS.I.OE).
20S
202
U. Bocora.ble the Secr•\&rf of the fr•.u-7. a:l4 t l"&Malt
1
hnntth a cop)' of dll.patcb 110. }219
tr~
U..
.Merle&~~.
:Eii'b&l&7 "' Berlin, 4ate4 .l'QI\11\ 22, 19110, r epr41111 the
Hq'QAII\ td the PeruY"iaD Lep.UoD b h r ll.11. tor the
(;
.
r elMII or 1V.P4.a held tor \he accoUDt of PeruvlaD ottlciale 'b7 the ....._rioaa. !.xpreu
~.
U.t.erdaa, wit.h
t.he .Perlcan !apr111 Co=pe.q, Sew York, J'n York .
J'roll Berl111.,
=· }219,
.._.. 22. l9llo,
wttb eaclol\lre ..
16
203
.UR li.UL
llo . 3219
!u.bJtct:
Request of' the Pe~l.an LepUoD. 1n BerUD tor
the Rel ease of JUD48 Held. tor the J.ccOWI.t of
Pel"U.Y1.a.n Oftlei&la b7 the .t..rican I,JFeu
A.aterclaa: , rith the .._ricaa !Jr;PI'tu
paD¥, liew York C1t7.
JIIIJQ',
eo..
ea.-
!be looorable
ftle SecretarJ' of State,
·ah~on. D. C.
Sir I
I ban the honor to eoclo.. a oop7 ot a MDoran&m
dated. .i.uga.et 3), 191(), reoe1....4 fro• the hJ'\lYiaD WptioD
ill Jerl1D. nquestia,g the relMet of the
of $21, 84s. lf.3
paid b7 the Peruvian Couulate Ckllual a\ KNiburl: and b7
ho Ptru:YiaD Consular officers U.re to \he heriean
l~nn c~ a t A.aaterclaa, lfethuluclt, and 1hlcb .m
h bld. for the &e:cOWLt of the forep1q c~ br tha
•=
AMrlc:&D bpreaa
C~
at lew Tort: CU.7•
.A.a the Dep&rt...a.t will oote, ihh . - tlbleh • • pa14
1D b7 t.he Penrria.n d.~dtort to tbe 'but at baterdaa t-.a
l>Hc. blocb4 ill ..ccor4a.nee w1tl1 the proYhiona ot the Pr...
dUnt 1 1 Eaeuth'e ON.er of April 10, 19lcl (aa . .ended b7
the beeutl.e Orter of KA7 10, 19~), &D4 the RecuJ.atioDa
hW~~4 therw.Diler relatiAC to certain tr&auct.ioDa in
forelcn •xchaDce. tranetera of credits , et cettra, l t 1nol1Df: the lletherlanda , Datiooal.s tbe:reot , or pusona 4omic1le4
tbereb. i'b.e Departllent h r . .pecttull7 re~stecl to tr&D....
ait the reque•t ot the Peruvla.D Let;atlon to the !re&.ury
DtpaJ"tllant in order that a license ~ be hsued, it' peraiuible under the Ref:l,llaUona, 'llhlcb will allow the .A:DeriCNt
J::rp:reu CODJliL!L7 at lfew York C1t7 to releaaa the aua 1n qnasUoll to the .A.merica.a ~reu Collpatl.7 at J.llaterdaa 10 that
\he Pe!'\IYi&n depositors •7 ..a use of their dollar acCO'IUlh •
....
06
20~
- 2 -
r. .pect1'Ul.l.7 nqueste4 to Won. U!.• . . . .,
of th• action taken 1n thh •tter.
!be Depe.rtaent h
Retpectfull.7 7WJ't,
.... nu:
Cbazp 4 1A.ffa1ns • · 1.
:EAclo~Ure:
Copy or aeaorand:ua fi'08 tb PeruTiaa. Lecation.
151.6
c.r.au
e•
06
205
~
.
!he P•ru•iaa Oon.W..te Gc.ral. 1A Baabo.rc
las thll tollowtDc &ccOtLDt iJl USA.
~lla.ra
ill the
,.,.,....., Couulato Ocoral 1ll ~~aa-..., USl
Couul C•- i., do Pes
6}}. 11&
19, 55)1. 5()
fic...Contul J'ed.erico G. Wap
!oial USl
-.ere a blocld.DC cre41 h
1:D Bollan4, the Ptnrrla.n
Lep.Uon 1D Berlin woul4 deep}S apprec1aU UT .tep
tb AM.rlc&e Ecb&••T 1D GereaD¥ woul4 care to tab
to.-rda the releaae..nt of the .ocounh ator.-sHnUone4..
c0
p
t
OS
.... , ,
...,.
-r -
H . • •. Jr:
. ~ .:_t,
.. ~... -
,.~ ,_
~
-
+,
, !'/-
:!':..!J:.~
~··7
·: _ _.:.;_
-
206
"fOl .
Hello.
Jamee
r orreetel :
Good raor "!l nb , Henry.
H. •·.Jr:
Goe;d :.:>r n1r.s . Look., I had at m7 hou ae laat
night t:athan Straue a nd he wee tellln& me
tome or hls trouble•. N~ w he' e got &00
•Ullon which ne can '!)Ut into houalng tor
you - to::sorrow - and I t old hla to lve
you a rlr.g.
F:
flne .
H. l~.Jr:
!tow he 10.71 he can nave thete tnlnga
t1 n1the4 ln about tour or tour and a halt
•onthe and. he hAt tne choice of 4'l l r:& llu.ll
clearance or thle and I tol d nla tor huven
IDX.81 dO t h l l .
F:
H. I~ .J r:
Yeah .
And he can eta rt to11o rrow, the ;>la ne are
ttnd evf'lrytnlng and I' m juet calllns
~r"""
you 10 lt he calla you , you 'll knew 'lfha t
1 tl about but tore;et t!tat I called you .
~.
j
I
F:
You bet .
H . ~. • Jr;
But tnle lt to:u t h1ng I !lgur~ tl\et you
t•llowa rrally want owtr t hert , 1tn 1 t lt?
F:
I crrtelnly tnlM lt le .
H.M.Jr:
•ell , he ' t got ~11')0 c llllon t!'lJI!:t he can out
lnto houtet t"Jr .,or:.tmen ln con ntct1on vlth
trle l\avy YArdt to~y.
F:
Yeah .
H. f: . Jr:
ii,. 1 I &:>t full AUtho rl ty.
F:
0. X. I c tl' rt'-lnly want to t ltl!t to
T:-.a nk 701.1.
.J
J
Tnank you ver y much , H,.nry.
H. ~ .J r ;
h.l•.
207
Geote:~ber
9:21
H.
,,
' • J
•
.Jr :
12 , 1940
& • .!:!.
Hello.
Sul%burg~ r .
oo..,rat~r:
Mr .
Arthur
Sul %burger:
Good mo r ning , Henry.
H. H .Jr:
Hello, Arthur. I wae aorry I couldn ' t talk
y~a ter4ay but I wae on the Hill on the tax
b il l all afte r noon .
S:
Y~s
H. t: . Jr:
Tha t' • right .
S:
Henry, llaten, 1 1 11 tel l you why I called
ag•in yelterday tor the second
7 0u. I
time a young un that I think you ehould
H. ll.Jr:
Ri ght .
S:
His name ie. :;uaaO.u.a - N-u- a-e-b-a-1.1- m.
He vaa a Rabbi i n Berlin up to August lat o f
I near4 rcu vere hllvin& a bad t1;:ae,
I :aenn, a troubleeoae
....
tla~e.
••t
tnla year.
H . ~..
Jr:
S:
He ' a a lll8n about J2, he 'd Jutt fi niahed hia
r abbinical atudiea and &Otten a Berlin po et
i n 1932 when Hitler came i n and he ' e been
ther~ in that Job aa one o f the leading Jeve
the re ever eince.
H. H. Jr:
Yea .
S:
He ' 1 a :ao1t attractive looking tellov and
taught hi.caelt E..'1gllth v~lcn h e a":>eaka
::-emarkably well and I thought h11 etory vae
aut flclen t ly dra»t1c and acme ot the thlnga
that he hAd to IRY ot what the Geatapo hAd
told h1m aa t o the ultima te ":>lana f or the
J eva theN!, i t you we re t o hea r it and if
you ' re •• much la?r eeted, to oa •• h l • on to
h i gner U">a.
20S
,,-· 1
- 2 H.' .Jr :
I
S:
.lhat ' . that?
ae~ .
.iell, r.ov h.,v can I
~~e
hl11 Arthur?
H. l: .Jr:
How can I a rrange to aee hlM?
S·
irl'ell , I tol" him that I would ':)8)' hll
e xpeneea down . He would very mueh like to
come down aa quickl y ae he can . He h.aa a
~oet - that' 1 the way he got here - he go t
one or thoae exeaj)t viaaa - I ' ve rorc;ot wM t
you call tneca .. wr.ich Stephen Wtee s ot to r
h l a and he' 1 got a po et
Ot.lah.:~.aa
:.1
I
0
and he ' 1
•"•1
::~lannlng
out 1r.
to go there .
And
I told hla tba t I would pay hll ex?enaee to
'.iaahlngton and afte r )'Ou vere t hr ough wl th
hla I t old Arthur to take ••.. . ..•.
H. Y. J r:
HellO.
Ot~~ra tor :
Gcera t'Jr.
H.l<.Jr :
I wAe cut o rr .
Oper At or:
H.
''.Jr:
S:
H.I!.Jr:
Oh ,
I '~
Hdlo.
aorry .
I ' ll ge t hlm righ t back.
Hello.
Rella, Hen ry. I vaa Juet eaylng he could
coae down any t1me you went hla to, the
eooner the better.
Vell, I can eee h111 at 9 o 'cloc.A t omo r row
~r~orn1ng.
S:
Right. r:ow, Henry, ano t her thlna. It you
wanted. to, he 1 e the kind that you could very
eae Uy have a t lunch or eu?oer. He 1 1 r ully
an extremely attractiv e young Qn. All I' a
trying to tell you 11 th1&, l t you and Ell ie
wanted to have h11Z! that way , you ' d be perreotly
taeo1nated, bu t I think th1 1, that you ' d want
a llttle mo re t1rr.e tnan an ornce appolntlr.e n t .
H. M.Jr:
<V'ell , Elino r len 't he r e . Do you t.h1nk I ' d
'better nave n1a come t o the countr y?
$:
•ell , he C'lUld
~o
that, 7e1.
209
i·
- J -
1
II
H.l' . Jr:
'.lell .. .. .
S:
,.ell , lltten, on t ne other hand 1! you are
interested ar.d wanted t o ?au h1a on, that
would a:ake 1 t mor~ dlttlcul t , wouldn't 1 t?
H.M.Jr:
l:o , b~eause I voul~. ' t be able to '?at" h1a
on right a way anyway, I •ean , l.t would take
S:
Yet. ·idl, lt he and hie wlte could drive I could out a car at their diapoaal and get
t~veral
day&.
thea up to see you ln t he e fternoon o r
tome t hlng l ike that .
II
0
~
H. :-!. J r:
.• ttl, I vee Jutt thlr.k1ng . I don't know
vhat Eli no r'• olane are, tnat ' a the trouble .
S:
One t h ing I can gu~~:ran tee 1 1 that you will
not be bored and tha t he la •ery charcalr.g
an4 attractive and anybody voul~ like to
•eet h.lm.
H. lLJr:
Well , my tr ouble 11 I don ' t Know wtw.t El1nor 1 a
olant ere, you 1ee , Saturday and. Sund.ay, and
cH., you want hlm to set somebol.1y else here ln
Jaehlng-:.on bes1.c1et me?
S:
#iell, yet. I t hou.;ht ttult while he wae down
t here t r.a t - I ti\IJue;ht that a un l llte <iellea
tor exa:role woul~ be very lr:terested ln seel og h l tt an\.1 I a111&.eG Arthur Kroelt to a rrange
that.
H. M. Jr:
Uh-huh.
S:
I t'lee .
H.!-!.Jr:
I tell you , Arthur, lt aounde 11111 bu t I
thlnk 1t 1 d be eatler tor •e to tee hl:a here
totaorrow "l!.?rnlng ""d then ooulbly I eould
arrar.ge to tee r.lr::~ asaln 1! necettary.
~~
~ I I '..J
~
I ~on • t th1.nk Aell ee 1 1 here.
S:
Rl ght .
H. M.Jr:
But I could ere nl111 detln l tely a t the
Treasury at 9 tomorrow mo r n ing .
- 4 S;
H.M.Jr:
S:
9 o ' clock tomorrow.
I ' ll, have h l m there .
...
And t hen i t 1 4vn 't h&ve tl me enough I' ll
arrflnge 1 t , but l ao;)reclate your calling
He M1 tole! ce thll - Ju• t to b l v e l.t to
you qu i ckly - t hat t he Oeeteoo tol d thea
ver y def1n1 tel )' that l n a Europe l n whlcb
Hl tler l a vletorloul t ha t t;.t mlll l on J ewt ,
who arto now l n C:urope, are t o be mov e4 to
Madegascar.
' I .)
~
Well , th.et' e very 1ntereet1.ng.
H. :LJr:
I t ee .
S:
So a t
H. M. Jr:
0. Jt •• Arthur.
S:
Rlght , Henry.
H . 1~ .Jr:
Thank you .
9
.;, ' c lock. t oaorrov' =orr.lng - hll
r:a2e 1P 1:ueebawa - i\ -u- 1 - e- b - a- u-:a.
211
'
Se-o t e•'ber 12, 194o
. . ...
~ :25
H. H.Jr:
Hel l o .
Henry t...
St1=eon:
Yes, Hello.
H. M. Jr:
9:
L.,. .
j
'"'ell , I don ' t rttiUll'o er nov what i t wee I
called you about . There are a lot of thlr.ga
u: i~tr~?·~~l~:.P~:~=~=n~~,.~~
~::;. ·~~e
[
rega r d to other thlnga .
:J
(.J
Thla 11 Henry talklng. Y~u called ae
yeeterdey ar:d I wa1 uo on the Hill on the
tax 0111 .
.....
l"d
H. h . Jr :
:Jell , I' m her e all day - I ' rt here t omo r row
l t you want me .
5:
'iell , the trouble ian ' t vi th 7ou, the trouble
H. H.Jr:
ir. ell , I ' m here.
5:
I had a l ong talk vi th Hor nbeck yee ter dlly
about the Far Ee.etern thing .
H. M. Jr:
Good . I ' • lending you e ~te~orandu..'D by h.ftnd
thl s mor n ing on the a t eel ecrap vh lch I
gave to the President y es terday . Hello?
5:
Yea.
H. H.Jr:
"'"d
5:
You think the:r ' tl out an embargo on it.
H. J.I.Jr:
I 1 111 hopeful nov thAt - they • re telk1.ng
abo ut ..... .
$:
~J
11 wl tl"l my memory .
t h ink we're ge ttlng aoaevhe re on t Mt.
Yee , I ' ve beer. vatchlng that. I celled up
Ms xwell the o t t er day to t1.r.d out the
eltullltlon in v hlch 1.t vaa and they told
1.t waa held up ln the State De:>ertmen t , and
t ~er:. I Dfked at:out lt ln the State Deoartmen t
a nd they aa ld t hat Hr. Hull th.ou.ght t hey
ouc;nt to ta~e tliDe •bou t 1 t .
=•
212
- 2 -
'I
H.I~ . Jr:
.. ell, what they're auggeetlng ~olng now 11
tort ot h.avlng a - dlvldlr.g the country up
and aay lng tr.at J a-p3n cen eet }0,000 t;,na
a month , but or.ly trom the P111clt1o coast,
an<! then g1 vtng t:ngla,.d and Cenada a a much
It& the;t want.
S:
lee.
H.V..Jr:
And Leon :iendereon, c?nt1dent1.11lly, le
e.eelng Hull on that today at the Prelldent ' •
tug6el'tlon and Hender1on la carrying the
bal l and he't quite ho:;,etul .
c
-._/
S:
Yea, well, now one tltuatlo:t t o remeaber in
reea rd to the Jap.aneae, on thla, your Far
Eastern lU1V1Bert~ in the ltull')8 or Ho r nbeck
end myaelt a re in accorf! that you don't
melee Rnythlng by a-poeeaeaaent.
H.Y . Jr:
That'• ri ght.
S:
Nel ther or ua thll'\k. th.a t the Jaoaneae are
likely to make a audden dash at the
Netherlandt. T!le:t think that that would
ex::>ooe them - they • re very much ;.ur.zled nov
by the arrange.:nent vi tn art taln be tween u1 .
H.M.Jr:
'tfho 111
S:
Js osn. They don•t knov what lt leac1e to1
and th~ tunny 11 ttle gueuer1 - they re
not very aenelble 1ome tt=e• - they• re very
caut1ou1 but they don •t knov how r a r we've
gone . Indo-Chl:ta le'!:al to 'be 1telled tor
a 11 ttle while. They have not broken the
morale ot China yet but they are trying they eventually undoubtedly ted tMt they
=uat :1ove do..,n toward• the l~ttherlanda 1.n
order tO set oll , Out they +3on ' t dDre do 1t
wl th a tleet dash t h.tt will lea v e their
er.tlre tlank O?en to u1, They'd ?ret tr to
c:o 1 t by going through. the frtneh Indlea
and woritlng down the pe nlnaull'l wnert their
a rmy would be sol1.d on ground .
P..l:.Jr:
1 ae e .
;. .l1
[!
5:
But t h e t h l ngt t hA t Ho rnbeek and I talked
ove r were f lrlt , a fri endl y pow - wo w
wl th Ruada.
!L~!.Jr:
lea .
S:
Tne cleavage be t ween Jaxn and Ruaa l a h
ao dee~ that l t can ' t be - they ' ll nev er
patch 1 t u-o a a a ':)tr unen t t hi ng and Rua l1.a
11 a ver y uutul
check on t hat and ve ought
to be doi ng whatever v e can t o keet> on
real!ona bly good term I wl t h Ruula.
_lL
.,.
H. l· .J:r:
II
'lell , you know I wan t ed t o t alk t o Ruetl a
1 couple or montha ae;o. 'u ll , t he
Prealden t euthorlz.ed • • t o on a 3-eorner
deal ; we buy aoaethlng from Ruet l a and
Ruttla ' d take t he aoney and g tv e munl tl ona
to China and 'Jellea ea t on 1 t and ttu.:J';)ed
1 t.
\
-'
S:
'.tell , Wellea do e tn ' t know a da!Zin t h ing
abou t t he Far Ee.tt.
H. I-L J r:
~!'ell , I ' m Juat telling you tlult I had t hla
i dee a cou"Ole of monthe ego and Well e•
k1l le~
)ue t
,-,
~ ll
:"1
_)
1t.
Wae he awer?
S:
Jell , where vae Hull?
H. t:.Jr:
~o ,
S:
Well , ;tou r emember in the talk t ha t .,e Md
wi t h t he Preeiden t all t ogether whe r e Wel l ea
an" I were , that I didn 1 t helltate t o
oo-ooae hie view• tor I dor:. 1 t bel1eve l n
the:n.
H. ! •• Jr:
Yeah.
S:
Yea, we:l that 1 a one thint;.
thing 11 hd.., to China •
H . ~. . Jr:
.iell, ;:>oor ol d P. V. Soong 1 1 her e and
we can 1 t do a damn t hing t or hi s .
S:
·11e can • t do 1 t wl th arm a , how a bout money?
no , he wae her e .
•ell , rou and
bo t h .
But the 1reat
- 4 H.! . . Jr:
"ell , we cAr. ' t do 1 t on money but we could
c3o l t ~n thh thing which wsa t ht Prea1.4ent ' l
own su~est1on - a }-corner desl . We buy
manganese , .. ,. , r rom Ru sala - t hey have
tone and t oza that they • ve ot rered ue tor
tale ..... .
S:
· ell , WllJ' ln the hell don ' t we do itt
H. M. Jr:
..... and then have er. understanding vl th
them that t hey tac.e the Qoney t he t we &1 ve
~J
I
them tor mangontu end uu lt to helo t he
Chlneee . !low tha t's e ~ractlce.l thl n&
and 1t 1 a t he Pre e lden t' ~ own sugbut1on.
S:
A' ell, nov, I 4on • t thlnlt - the Ste te
De?arben t now 11 trying t::~ ~ke u' a 11 ttle
with Ger:~~.any- vltn Ruatla eo vhat ' l - h la-nllm e
telle me - Hor nbec.i<. .
R. ::.Jr:
Yeah, but they • ....
S:
I' d try lt aga in.
H. I!.Jr:
You oean 1! you were me .
S:
Yet .
H.! .Jr:
I think I'll ment1on it t o Mr. Hull.
S:
Yea, do 1t, I mean , I aee no r eaeonor course , Hu:!.l 11 al-.-ays very tound bu t
he's pr~ t ty alov.
P. . !' . Jr :
I know.
S:
And between u a we ' ve got to help hiED move
a 11 ttl e b~cauu the tning - at pr eaen t
Janan 1 a not goir.g to make any dra1tio move
vhile the ba ttle At;Alnat Gr~l'lt Br1ta1n 11
uncerta in.
H. !LJ!";
That ' & righ t .
S:
ftr:d wnlle I h.o.,e thllt the even t usl ity ot
tl'ut t will be aueceutul tor Grut S rlte1n,
yet you cnn ' t bttre;~tln on it end lf it lhoul d
go the o the r way , J apan would talc.e " very
d i fferent Et tt1tude.
215
9:
I t n1rJt w• ou.;h t
""f
caan
'i . M.Jr:
~~lrt.
to
~o
1a ln • "JOI1 t1 '" vhert
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to Jtt')a n nov &!"14 ", 1 t
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h•art .
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t,
f'r- betar ':lft .
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DECLA11~1FI£D
HOD Ulit ooco.o <•!•'~&•>
.
.)
~~rWI15f5lfTk\L
_,.
BRIT IS H [ MUSSY,
WAIH IIIICTOJC , D . C .
September 12th, 1940
PERSQIAL
e j
AIID
9
Dear Mr. Secretary,
""~ I
(
I enclose herein ror your
personal and secret intorma tion a copy
ot the latest report received t'rOCJ
London on the mil! tary ei tuation .
Believe me ,
Dear Wr. Secrehry,
Very etncerely yours ,
The Honou rable
Henry Alorgenthau, Jr.,
United S tates Treasury ,
Weahington, ;). c .
1
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226
GROUP l!EZTlliG
Present:
u
l
:y
I
11
..
I
........:j
Bell
Gaston
Sullivan
Chanberlain
Ur. Young
llr. Cochran
Ur . Graves
J.!r , ThOIJjlSOn
llr. Schwarz
l!r, Fol q
l.:rs Klotz
!lr.
lJr.
l.!r.
llr.
H.?J. Jr:
I prefer the Sullivan- Folo;y-1!or genthau butto n.
Fole;y:
That is a good button.
H.!.f. Jr:
This?
Fole;r:
Yes .
Gaston:
That is, ;you can tell i t is a Roosevelt button.
It isn' t an;ythlng like the llillkie button.
It is rather coed lookinc.
H.!!. Jr :
Third ten is three stars?
Gaston :
Yes .
H.li. Jr :
I don't like it.
go on the Hill?
Sullivan:
!lot until 12:00 o' clock.
Have JOU (Sullivan) sot to
H.!.!. Jr :
Then you can rest here with c.e .
Sullivan:
Sure.
H.JJ, Jr :
~.er e
you looki ng for Bob Kintner?
No .
He is looking for
110 .
227
- 2 -
Q
~
<J
Sullivan:
He is in cy rooll! and be said be
were lookint; for him.
H.JJ. Jr:
Oh, is he in your roott?
Sullivan:
Yes .
/';J
you
S .!.!. Jr:
Is be goine to Ttait there until be sees cte?
Sullivan:
I don ' t know.
H.I.!. Jr:
I could see him for a ctinute right after this
meeting if he ia still ther e .
Sullivan:
All righ t .
H.JJ, Jr:
i1bat is he going to do, wai t until you coll!e
back?
Sullivan:
He COll!e in to
r.anted to oee
llrs . Klotz he
wanted to oae
H.ll.Jr:
Let' s see how lon,; t his meeting goes. I ' ve
got this Frenchman co:J.ing in at 10 :00, ian' t
it? Isn ' t that appoinbent at 10 :00?
Cochran :
Yes, sir .
1':1
"'
ll
tho~~&ht
lon~
aee me and then he sa id he
you, or he nanted me to tell
was in there, in case you
him.
H.l!.Jr :
How
Cochran:
!lot very long.
Sullivan:
I ••ill hold on to him unt il you ge t t hrough
with t ha t meeting.
will that take?
H.JJ, Jr:
Is this just a "hello" meeting?
Cochran:
I hope tbet ia all .
off anything else.
I think we can keep him
228
- 3 -
H.II. Jr:
Let ' s do this tO!llorrow.
Thompson:
I have no thing.
Bell:
I have a letter about the Social Security.
ll,l.!_Jr:
I hear we spent it, according to last night 's
editorial.
..•I
Bell:
Voe spent it?
r
H.!!. Jr :
Yes, Scripps- Howard just found out we spent
it. >lhat else have you got?
Bell :
l!r , Schna rz unt me a letter addressed to you
f rom the editor of a little cagazine called
"Bond Account• and he wants a statecent fra.
you as to how you are going to finance the
defense progru. I think ei t:Oer llr. Sch\TarE
or I eight answer it and say we can't make
any statOJ:lenta.
H.li. Jr :
Any money in it?
~I ;
I
Bell:
It doesn't aay anything about any money.
ll,!l, Jr:
ill right.
Schnarz:
An advance tip is all they want,
H.II. Jr :
I see .
Bell:
I t looks as it it is go in& to be a nioe afternoon, so I might play golf.
H.!.!.Jt•:
Around 4 :00. Uow many people around here will
you take 1'li th you?
Bell :
I have got a threeso::1e in the Treasury, I
have ~;ot an open end if anybody wants to
volunteer.
229
"' 1
- 4 -
H.l!. Jr:
All right; okay.
Harold?
Harry?
l
lihi to :
You asked for a copy of a memorandum with
r ecard to China that you might want to give
to Secretary Knox, I think you said. Thie
is what you gave to the President . I don' t
knolT whether you want to send that. I took
soae excerpts that referred to the particular
problem ana cade the ""'"'orandu:.. to you.
B.U.Jr:
Oh, yes.
son.
.l
JlJ
I
Sti::!son ia tho can, Secretary Stim-
lihi te:
I thought it
H.II.Jr:
\'. ell, thank you.
iihi te:
You will deci de which of the two memos you
want, or ia that the one?
H.li.Jr:
This is it.
Tihite:
As a catter of paaainjl interest, the British
Tl&a
Knox.
are havi.nj; so::ewhat t ne s&I:le di!!icultl.ea
about expanding their armament plants that
have been present in the discussiona here .
There i s a r eluctance on the l'art of the
manu.f'acturera to increase thur plants, eTen
thou•h they have more orders than they can
takeo ca re of, because they are afraid that
thq nill be left with excess capacity after
the war is ovor, and there is an increasing
de:lai!d that the Government take over the
plants in London. I thou: ht perhaps you
would be inter ested i n that.
230
a-I
I
- 5 l!aaa:
\
You know we are gettin& weekl:r reports
!rem the Br itish Purob.ising Coczoieeion and
now that the other induetr:r reports are
eTory other week, I wondered if you wanted
to see in the - in the odd week, take &
look at the British report.
H.li. Jr :
\'1bat do you think? \'/hat doee that show?
~,
l!aaa:
It shows more on the British pict ure than
tile s eneral industr:r report. For e:w:.ple,
you take the type o! plane, lt will show
how ti&Dy bombers, how m&fl1 pursuit planes,
how man:r trainer planes hava been dslivared
l
to dAte , and how l:WlY a re on order , and ao
on.
ol ~
H.l>:. Jr:
Yes, I never get that.
l!aaa :
There i s a new one just in now. lloul d you
like to have me sena it in?
ll.!.!.Jr:
It you please.
l!aaa:
Fine.
HJ.!. Jr:
Anything else?
llaaa:
That is all.
H.II. Jr :
Philip, :rou look as thoueJ> you didn' t see
the report either . Did you see it?
l!aaa :
He gets it. r,hether he l ooks at it or not,
I don't know.
Youn;;:
I get it.
H.l!.Jr:
Oka:r. I would hate to cross- examine you on
it . It is like the stut! that Cochran sends
to tle . EYer:r once in a "hile I give you an
anner.
"\
.,
r!
I
Young :
On this 10:30 meetill£ this 1:1orning, I 1muld
like to see you about three minutes before
it.
H.!.!. Jr :
All right .
\
l
Young:
llo, that is all .
H.J.!. Jr:
~~rr~~ want to eet here two minutes ahead of
,I
Acythin~
else?
Young :
That is all right, too.
H.li. Jr:
All right .
Sclmarz :
Otto Tolischus, who was Berlin 1:1an for the
!I.,. York Times and Pulit.er prize winner,
came in torm last night. He called this
morning and said !Jr . Salzberger had asked
him to come in and s ss you and he would
like to see you today, it possible .
H.J.!.Jr:
Impossible .
or Tuesday.
Chick?
~
I would like to see him L:onda;r
Schnarz :
don't know uhether he la go in~ to be here .
U.!.!.Jr:
can ' t do it today. An;rthing else?
Schwarz :
That i s all.
Cochran:
Professor Chamberlain asked ce to cention
a telephone call we had frc:a the National
City Bank this corning at half past eight .
They haven' t gone ahead wi tb that Spanish
proposi tlon of getting belgas in Spain so
far, because half of the amount was offered
i n currency delivered a t l!adrid, which •un•t
what they desired, so they got in touch
with Snitzerland, and they find there that
- 7 the Swiss banking corporation can give them
up to one million bel ges, but the:r have to
make a quick acceptance and -H.I.!. Jr:
'i'hi s goes to Brussels?
Cochran:
This is for the Brussels and Antwerp agencies.
H.l.!.Jr :
',~'hy
Cochran:
It is just a question of where to get thm.
not?
H. U. Jr:
I don ' t care.
Cochran:
Yea, sir.
H.li.Jr:
That 8.Clend:nant of Senate~ Brown' s on future
taxation on Government, 70u know, Tt are in
favor of that .
~ ~
Let her go .
Sullivan :
He didn • t sa;r a word about it at the C....U ttee.
Bell:
Are we i::l fnor of it, unless thor take in
local administration?
H.l.!. Jr:
No.
Sullivan:
\;bat we are in favor of is the pe.ragraph 70u
had in 70ur st&tment before the Senate
Finance Co=ittee in the Revenue Act of 1940.
It has to be unanimous.
H.JJ. Jr :
Are we in favor of that?
Bell :
Yes . But I thou~ht BrO'IIll' s mencl:nent - I
just read a COIID!l&nt on it in the paper - onl7
covered Federal.
Sullivan:
That is richt.
H.II. Jr:
I 8.Cl glad I brou.; ht it up.
ia the old plUilbfng?
>.bat else? How
- 8 Sullivan:
So-ell.
H.li. Jr:
Di d you sweat?
Sullivan:
not yet .
H.ll.Jr:
I ai:l around, i f anything happens. I go to
Cabinet at 2:00 . lf :;ou know anything before that, give oe a little buzz before
2:00 •
•
Sullivan:
All right , air.
H.JJ. Jr:
According to the papers, they are not going
to - they a r e going to tinioh the Bath bill
this oorning before they take the taxu up.
Sullivan:
Senator Harrison ae..,. to think there io a
chance of a vo t e on this today or tomorrow
and he i s talking about having tho Conference
COIJ!:Li ttee meet on Sunday. I don' t think
that they are going to vote on this thing
until l!onday or Tuesday, but if they are
go~ into conference that quickly - are you
leanng ri!;ht after Cabinet?
H.JJ. Jr:
lly telephone works .
Sullivan:
It will be used.
H.ll. Jr:
I ""' sure it will.
Sullivan:
r;o, sir .
Anything else?
H.JJ. Jr:
Ed?
Fole;r:
The British /Jllbassador signed that letter on
the i!olla-Uerlin engines, and here io one tor
the Secretary of State and here is formal
refer ence to Sti=on. •..e han already eent
a copy over to General Arnol d and Judge
Patterson and I think they have gone ahead.
2.A
•
O
- 9 -
H.!!.Jr :
Should I read Lothian 1 o l etter?
Fole7:
Yes, air •. They kept tho orl glnd in Stote,
but here u a copy. They don ' t say a.nythillj;
about the two rtillion, because t hor lean
i t to us to fix the uollllt .
H.ll. Jr :
Thel needn' t know that I haTe set up two
~h~~? · Are copies o! all this in '":1
Foley:
Yes, sir, and I lll:l returning these papers.
Hero is a little - I don't knou llhetl:er you
want to do this this ny or not, but t his
letter Feidler sent to mo.
H.JC.Jr:
I sent it personally.
Fol ey:
I thourht you coul d see Norman and Iierman
could look it over and if he ian' t a screwball, mybe they could usc him in the Exchange Control pl ace.
H.l!.Jr :
Isn' t Feidler the fellow that --
Foley:
He doesn' t llork for me . This fellow waa
over in the Procure::~ent Dh ision and t hey
let him out when the emergency fllllds T:ere
exhD.ust ed.
H.ll. Jr :
Before that goes, give it t o Gr aves . You
(Graves) know about Feidler, don' t you?
Graves:
I know about him, but I don' t know hill.
B.ll. Jr:
Juet read this thillb and see if it should
go .
Isn 1 t there another Feidler?
Fol ey:
Yen be is DC/ man, Bernie Feidler , but he
is ~o relation to this fellow. This is a
- 10 !err peculiar letter he wrote to you and
1t is obvious he is lookint; for a job, I
guess he hes been out of work since he
left Procur ement, He gives Clift on J.!ack
as one of his referencea , I thought you
couldn ' t understand w~ he l'll'ote you tha
letter or >ihat he had 1n mind, that is
why you sent it to me,
H.I!. Jr:
I thou&~>t he was your pal, Feidler ,
thing else?
All¥-
Herbert?
Gaston:
I don't imagine you will haTe an opportunity
to see Captain J.:eals1 the Captain of the
Cooanche, today, " ho nas been up in Gr eenland.
H.U, Jr:
If he i s around Uonday, I 'IIOuld.
Gaston:
I will find out whether he is going to be
around 1:onday.
l"oe have been asked to have a Coaat Guard
airplane particirte in thia dedication
on Gravelly Poin Tueaday, It will take
off fra> Bolling Field and go over and
alight there . They are going to have a
bi g A.rr:llf and llavy air sh010 which they
haven't yet announced. I presume you will
s;et an invitation to rrticipate, but I
l..l:l&gine you don't uan
to ride in a Coast
Guard airplane ovar to the new field.
R.!.!.Jr:
lfo . ';,h at else?
Gaston:
\'le are sendi nt; out t oday t he no tices to
the steamer, the Panamanian Ste&Illlhip Jlorthland, about which I spoke to you a "eek ago,
to keep out of American porta for three
nont hs , They have been aelayed becauae of
- ll the necessity of getting an opinion of
llhether r.e could exclude the:n from the
Pan&J:Ia Canol Zone, and we t ind that we
can't . The ship is still in New York.
l
H.J.!. Jr:
Profeuor Chacberlain?
Chamber ' n:
I have nothing more than what lo!r. Cochran
told you, except one point, l!r. Secretary,
that the - in res~ect to the narcotics Control of Narcotlcs Board in Geneva, they
want to move thm over here, and the Vice
Chairman of the Board, a Tery old friend
of c.ine, has taken the ~:~atter up 11itb the
Secretary of State and you may bear !rca
thm.
tl
" 0
"
~
"'l ~
H.!.!. Jr:
Recentl;r'l
Gaston:
You heard fran Breckinridge Long. I doubt
that he re'Dresenta a real opinion over there.
I think he i s l'irong about H.
Cbaoher ' n :
J.:r . Gaston and I 110uld like to have a talk
with you before you anll'lfer hit>.
Gaston:
'•i'ell, 1ou will get sace formal cOllllUllication,
I imagine, l ater.
H.l!.Jr :
Then you ttto cen can write the ansller and I
will sign it .
I heard from thm.
Cbamber' n:
I would rather see you.
B.l!.Jr:
All ri~t . In other words, you don't want
me to a:o anything until I talk to you?
Cbamber' n:
That is what I wanted.
H.J.r. Jr:
All right, fair enouf:h. Thank you all.
w.x.o., w.o.
Sept811bel"
SI~ATION
No . 193
REPORT
12•00 u.
13, 1940.
This military situation report ia Uaued by the Wlltuy
In view or the occasional
Intelligence Division, General Starr .
ineluaion or political information nnd or opinion i t 11 cla.ssitiel!
as~.
I.
Western Theater o! Y1ar .
£!'OUfld operaUons.
1.
~
2.
Air Force Opera.tions.
Du.rin.B da.yli{:ht on the 12th the Gennans operated wideq
over EntJ.and, us1n1 tor the .oat part sinele planes . Considerable
Ourint the night t.hel.r
~ "U &:bitted in southern England .
planes, operatlns atncly or in amal.l !oroat.ion.s, attacked man7 points
in England , with more activity in the provincial areas and less over
London than on previous nights ,
Britiah night operations were carried on u usual over
German-held territory. Berlin wa.s not bombed .
Today the Germans apparently are executing succeutul.
daylight raids over London .
U.
llediterranean and Atrican 'r.leaters o! War.
1.
Ground Operations .
There are ler\8th7 news reports froc. Italy that an otrensive &&"ainst Egypt is about to begin . There is no o fficial conti.rm&there are SCIIM indications that. .an Italian concentrabut
t.h15
or
tion
tion is tuildin& up on the U'b)'o.n- Egypt1an frontier.
2. A.ir activity by both belligerents was on a larger scale
ale>n.£ the llediterranean Cout . I:Lsewhere attack5 were sporadic .
III .
Hbcellaneous.
Russia has rearrirmed her stake in the Balkans by deme.ndi~
participation irl the control of navigation on the Danube .
·rwmcw
T R EASURY DEPA RTMENT
INTER OFFICE COMMUNICATION
Tbe DeputJMm:t baa bad under co:oaideraUou the quoaUcc w._tber the
Dep6r't:Mat ahoul.d underto.ke u 1nnatt.oet1cc to ascertain it tbu. 1a duapi.D&
1n the UD.i'tec! Sta tes or Miuleu petroleu~~, ao a a to juatif'J the t.poc1U on ot
the apeoial duapi.Dg duti.a proyided tor la the AnUdaplJI& Aot , 1921.
Tba tact a 1.D tba Departaeat ' • po. .eadoa at praaent are that tbe
D1atr1bu1dora De Petrohoa llexioa.noa , a Mexican cca.cern , ia}IOri& crude patrolea
ODited S t ates oou1gae4 t o lta<' G.n4 bu it ret1Ded aad aold <m ita
the
into
acco\Ult. by an Aaerican ooacero , Za.atern Stat" Petroleum Co., I no . , under coutrect w1 tb t.be Ku:lcu ccmcem . The refi.Ded product a u. lol4 a t the pre't"&il~
price 1D the llrM wber. the product. are aold u ahCN%1. 1D PlaU ' I Oil,gru... The
Wexioan cODcam ret&.in8 tUb to t he petrole• w:~~tll it 1& aold .
It la rq op1D1oa that an iDnattaaUoa at tb.b tiM would not be -.rrantec!. The Anti4tap1D.e; Ao't , 1921, could poa1ibl.7" aPl'!l7 in the !natant attuaUon only tr the price at 1fh1oh the ret1De4 prod.uct a &H aold 18 leaa thaD the
rorelgn u.rkat value 1n Mexico ot the oruda petroleum rrca which the refined
proc!ucta are derhed. It 1& aTen doubttul. that , ~.mder t he peculiar word1118 or
tbe J.nUd\tapba, Act , 1921, that atatute would be applloe.ble UDder auch circua4
t::t
which ue beiaa; aold a t tbe prenlliDS VN price , are balD&: aold at a price
below the tordp u.rkat nlue or the crude patrole\0 ~ which t be refined
product.& are derived.
:~::i&A!:!, -:;~er£:nt%a!~!
!:e...!!;t:kw:;
•:r.i~:~~ct1,
tJpcm the bash or the tol"88o1ng, 1t na decided on Augu.at 20 , 1940,
that an 1Dnlt1get10D would not. be warranted .
It h \Dlderstood that oU intereeu l:an ccapl.a.1ned. to Seoret.&!T &ll
tbat expropr1a.t&4 Kerlca.n oll 1a beiDg aold b tba United Stat. . a.t d~
pricea. I RM;est t hat Saor.tary Hull retar the oaaplai.4&D.ta to the~ TreUUrJ'
Deparba~t , 1D order t bat. tho DepartJMnt aa.r a acartaiD i t t be oc:.plA.inani& are
in poaeea.ton or f a cta mk:D.OW"D. to the Trea•ury.
240
I'Ll Ill
Rolli:
~ll&:
Yla 1 . 1 .
Dated S.ttot. .ber 13, 1940
he'd 12:05
P.•·
348, Septeaber 13 , 10 • · •·
,j
j
Hone lOti& 1939 i •porh ot raw to-.cco froa 11aih4
Stat. . . .,. o,..r
th~•
•1111oD
po~
nlu.d at about
laporta nlu• about one hUDd.n4 \boUNn4 d.ollan.
CSB
c
0
p
r
Pac•• 24:1-2&0 lllnin&
due let faul\7
llach1ae.
a~ber1QC
251
TREASURY DEPARTMENT
I NTER OFFICE COMMUNICAT ION
DAn September
lJ, 1940
Mr. White
'tlC)tll
Mr. l&lll&l'Ck
lbject1 O..elopw.ent.a 1n the Chineae llilit.ary Sit\l&tlon (Ace~ J.iap)
1.
Since the last week in J.urust. the Qdneae cu-trrillaa in North China
baTt been carrying out otrenain act ions to ditrupt U:e planned Jap&neae
tell ottenahe against the St.h Route Arrry. The.. attackl which are atill
continuing have been fairly tueeeas!ul in teaporar1!1 'Wl'ec:king t.r&napor t&-
Ucn facilities around Pekinv.
2.
J.a ahown m the up, bat.tlea hav4r taken place in t.he hNrt ot t.he
UNa in l>orth China . the p rr1U.aa 1n me pl.&ce
in r eacU.DJ the coast and cuttin& U'le railra.d nmn1n.a nartb
Jap~~~..e-occupied
aU~C.eeed.td
!rca Tientai.o to hnchuria.
I
) . !'he -.in signi!ieance or these att.aek.a 1.a .... dftOOatration or the
continuous bleedir:.c the Chinese are 1nflictin1 on t.he Japanese l ines
:!t:;~~!i;nh~c~~·~~~-th~tJ:;~~~~:-,:~·~~=-::ct::.nt
which has r etarded Japan in carrying out its desir e o! ptherin1 in t.ht
r ich pluaa of ~ F're-l'lch Indo- China and the Indiet.
4• '!be aq\lind.ngs ot Japan in att.ptin& to wrinl• out !rca ita Brer
bbt:tt and tbe Tar Baby dtut.ion 1n Cbina e.n be b.,t a~zed bJ r.calliq: that the present Cabinet. 1a the third w1 Ul1n a yn.r wbich bu bec1
u a Min policy the e:ndin of tM China Incident.. Also, it. M;r be pointed.
out. that J&pl.l'ese conaenat.he papua are now eallinl lor a rapprocb..ent
with au..ia - this in a country whose a•QQC.i purpose in goin g into O'li.na
wu to co.bat eo-runiea and. t.o prep&re ! or • f t l ' aaainat tho Soriet. Union .
253
RDS
GRAY
(PARIS)
VIC.'IY
Det::d September 13, 1940
Rcc 1d 8 : 15 p . m.
Secretary of State,
t.ashln(.ton.
557, September 13 , noon .
F'OR TH'
T~EASURY
FROI4 .:.JA. T'rHE' ~s .
1oday 1 s JOURNAL OFFICIC:L publishes the ttxt or a
convention signed on August
2~
bctwctn f'inancc JUnls tcr
!!outh1111 rr and Governor Fou .. n1Er whcrtby the ;:.ank of
France agrcu t o make provisional advancu to the Govtrn c:cnt in the a.t'IOUnt of 50, 000, 000 , 000
defraying the J:Sl!'\Unanc t costs
oecupatton (pl uac au !!1'9'
or
tclcr,ro.r:~
franc~!!
to bt used in
the :icrman artQY of
431, August 25, 7 p . m. ) .
The Bank is to bE rdmburst"i w1 th non-lntcrtst bearing
thrE£ month Trcasury bills co.nd 13 authoriZEd to
per mlllt pEr annum for the
t x~
~tuor~t
3
cnaca ental ltd in this
operation.
1hc Ba.nk of France has after oonsldtre.blt htdtancy
~nd
unctrtilinty dEcidEd not to movE to Lyon., but to main -
ta1n ln ChatEl
Ou~·on
tor the pr£atnt such u:rvlcEs as art
1:A'M'i£t.s
2!14
()RAY
Boghdnd
Datr .... E:EptEmbl'r 13 , 1940
:Pzc• d9 : 03a. m. , 14th
Secretary of State ,
Wash i.ngton.
83, Septe mber 13, 10 a . m.
llairn Transpor t Company, a British organi;r,ation,
he.a o.n account with HLnr y Sohl'ocd.:r Bnnktng Corporation ,
New York , approximatLly $20 , 000 which has bun frozen
by Treasury Dl'pa.rtmEnt.
Tt.t:sc fund s r~:quir~:d tor purchase
..lr..ttl£r:il' an cqui:pa;cnt essential tor maintE:nancs: trons-~eErt
service •1 th IrnQ. and PalestinE .
l Eaerd.
KNA.BE!iS:!Ut
no
I rEcoc::~~: nd 1 t be rE-
Plcas~t re ply by t elegraph .
STCOR~
S'i'OCIO!Olll
319.
Your 670 . June
I
:n ,
Treasury adv1st3
2 p . m.
11ctn~c
I
has been iss ued.
HULL
(FL)
840. 51 Frozen Ct•cdits/558
EA:GL : EHS
j
256
PLlill
SUKQKl.I Tia • . a .
llrah4 S~t•ber 13, 1~
Rec ' 4 lltl5 • • ,..
Secret...rT of State,
Vaehila.c1-on.
913. lJth.
We.x!7 hD.Mcl&l.
Sba.:l.&ba1 opa. -.rbt fonlp uchaDc• raUt all&btl.J'
dtolbM laai nek ad du. ww:ertaba. dtuaUon ill. huch
In4och1u, but eha41ed. paet two da;re dUAl
~eculaUou
uneaeineu tovar4 their onr'boucbt podtion. on preu
r eports of po ..lble earl7
InterbaDk
~t
~l'IWl
lll..adOA of
Inclu4.
..uiDc thie •ontac arotllld fin nUt
thir'tT . .coa4t ccte &D4 three t.htrt7 three tixt7 fourlht
pcce (erose parltJ of Ozdte4 Stat.. dollan t.hrtle poi.at
tilt
J:Um.&bt the lowr tb.u
welt
aco clue
to aar1al.
aoUY1Utt cn-er .bcJ.ud.) b.adq hlcb duriq week ot fin
tblrtea thi-rtr e.codt pd. three thirt7 three dxt7
tourthe and lov of tin '"'D thirt7 aeconde and three
tenn dxteentba, Sept•btr ddiYtrT uae ••
~t ,
Octo-
ber dellTeq oat ih1rt7 ..oon4 cent and one tixt7 tou.rtht
ptDJll' lower.
Chbt .. fiD&Doial circlet atat•at onr--
bou,p.t podUora at preaut 110re t.b.u thdhd Stat.. dollan
for
257
- 2for all.lloD, r eport ••rcb.u.t:
aport
4--.M. alackallll
ut upect hi&ber rat .. to pNft.U 1A ....nt of actual
l)eru.n
iDYa aioa.
Othu quota UODa thh •oniDCI
colt
bar• &rOW14 7U&D aU one the DfoU.&bi b.aYiDc bip 4\ll'iDC
ve* of al.s: three two D&U,&tlt aD4 low of dx
QAC~lt
ei&ht zancht, kAk Japu. noha MW U cUr ,.. ou for
Chllleae 7WUl one pol..D.t
,
~~
u ....
d.x.
(Ill) s:IC!IOI OU)
SHAllGRAl Yia 11. Ko
Doto4 Sop...... l), 19'10
Aec 14. 12122 p.a.
913,
j
'
••
!hirhaih (SECflOI !'110)
o~
7UNl one pobt tort7 a veek a,oo. llilital'7 .ori:P
Up bieber 41H cOYer tor larcer bporie tro. ,..., 'bloc
lov
4~
to alnm4ance c.ash.
~
ov.etoae cold. UllU tor
ee-.u. nJne tour or 7UU tour pobt eicbt eb tvo •• bua beiDa
J"'M.• Cntral Bank rate pld =it equinleDt J'UM. two poUt
'"'c. =-u.cht '"c. or UDitM
Statee 4ollare naQ&flt poiat d.s
al..J:, !iuhi.D. uchan«e rahe etNd.T tin cente and three
•h•• tbirt7 e.aonde pe1101 repreunUDC croll pa.rit7 UD1te4.
State• 4ollue three poi.D.t the JdDe. !1enh1D Shu.&ba1
r-.tttac• cba.rce nn pobt tin :pucct, Sb.an&ha1 f1•ttt.a
realttaDoe cb&rce MPer 4u h11 frei•t .,....., tr•
~
..I')~
to !ic.h!Jl tmder II.W J'ort.h Cb.1aa tnde coll.troh
259
- 2 -
Sbuc;ha1 realtter JI'O' I J'U&D oMJ
~··
uucbt •h aavdlt flnh1D
to ~Cdft J'. lt. B. J'U&II ODe t.boua&D4, !liDhia .l.L io
7'U&II cU. oM tor Cbl.-•• 7\I&U oDt bwa4n4.
quotation. ,... ,er~s
Other clod.oc
Sb&Qcbal cnnal 1\oeb sli4bt}¥
bJ.cber an rap two d ,Pt ol.a• polot. 1ewa OM, Sba.Dcbal
nbber aba.ree lOtfer &"rap two •l&tlt fOW' po1Dt thrM
, ... D, ( 'Elm SEC'ri Oil ftO)
!U'I'IICI
CS11
Rec ' d 12:10 :P••·
913. (SECTIOII !l!HEE)
ChiDe. . d.o•tUe bond..l ro. . to n. . hi&h -.r}T
•~ ~t 1937 with
•••k
a.erac- for cooaol14at1on loft.Da
at fha •lcbt pol.nt oDII ~· du.e "PNfneaea b.r baDb
and 1D4hldu.als to bQoy bonda wtllc.h eonU.nue 1*¥ d:r:
~r
cent annual
cent on
~ltet
l ate~st
on par Talue or oyer t e n Jlllr
Talu.e ..,_cau. . buell\. .1 receulon a t
SbaQcbal r.tul.Uoc 1D low Nt\lJ'Dt fro. other local
anr~
of the d:r: poiDt aenn two ctu.. profit
t.ali::1Ac
by speculators , Konc Ionc exch&oc- rates fourteen tblr t,'
one thlrt)' aecoW ponce and twenty two nina a ilr:teentha
cenh "P"..Dtinc von pu-lt;y of United States 4olla.ra
aDd ln4uatr1•• tint b&l1' of rear 4ebtora are expected
I
tJ t
to •et oblicationa due without 41tfieu1U ea deaplte
Uw sac 1n acooo•lc acthi U ..
cow 'ON•aleDt
in Sha.• .al .
2&1
- 2 O..i.ttc to abortap of curnaq 1Q Cb\U~Ck1D& occu1oDII4
ltf en.cuUoD of
ba.nQ aftd budce .. fir=s fro• cit)'
to
countr'J clhhlch, Klnhtry :Fla&Qce on. Septeabu g
laatructecl re•tntnc bulks lD c1t7 to peraU U podtors
to wlthV . caah 1D unltaluct a.ounh,
~
a.ount
prfl'lCMJ.I}¥ pezwltted to ~ wlthd.nwD Jler &<:count per 41q
belliC yuan one thou..&Dd. oftl¥.
Jap&Deae pn11 repor h
North Cbl a& CODIOl idaUd t a:z collecUODI durlD& last rear
•
nearl;r dx U•• re"Uauea collected b 1936, last 7Nr
tour alllloo of wblcb :r R
two four aWloa hoa
eocapa.red )"U&Il tea poln.t elcbt ailllon colle cted.
~.
u
iD 1936.
Incre&~ed
DOte
:a )"\&U.
collection• clue for t he ao.t p r t to relathel;t
h•~ ou.ht~
1n llaaebur1& ... reported V WaDchuriall
central beAk •CNDted to KMchuri•D 711AA dx el#lt t•o poht
threo polDt a.:l.ae a1ll1on at end J&DUal')" tbh 7eu, 60tt luu.e
!
upeeted to l.tiCre&. . t o nia. hundred allll011 b:r encl thh 7..,r
clue to requln•nh for f l D&DelQC cropt .
III!'UCl
CSll
c
0
bJ
p
y
IDforw CoCDerce .
TREASURY DEPARTMENT
INTER 0~11: CO MMUNIC ATION
lf'o4a:r 1 a trNlaecUoD.s 1n r ec latered aterU~ b:r the ah: reporUac 'b&D.ke nre
as follo•a r
l
I
Sold. t o c .... rc1al concerns
Purchased fro• c~rc1&1 concerns
aterl1Q5 eol d h belzl.c uea4. to
co.od.1t1es.
~.
!he h4eral B.esern Bank eold
CO't'Sr'
lolOl,OOO
• 22,000
tbe 111port.at1on ot a 41nrs1tled list t4
itl.6,500 to a non-reporUac baak.
Opea -.rbt sterl1zl6: &pin r . .aiDed at '4.0J-l/2 thr~out the da7.
!'raneacUons of the reportlDC banks hl open -.rkat aterUDC were as fo1lo•a:
Sold to coaerc1&1 coDCtrna
Purchased fro• coamero"*l concerns
055.000
'11, 000
'l"be Canadian dollar 1a still und.er pre..ure. aDd toda7 the dhcO'Wlt tor tb&i
curreDC7 w14en.ed to 1~ at the close, as .,a1D.at 114-1/l..~ ;rester4&;r. !he current
ft&lr::D.eaa h apparentl7 me to offeria.sa . b:r ~riC&D lll~e colll*Die• a.nd ot her
larp laaUtuUoaa, of ~41-.n 4oll&ra receind fr011 the s.ptnltar 1 r~Uon ol
a Doainlon of Can&cla bond. h.u. !ba ottartnca ba•a oot been Yl.r'J' la.r~. Wt ori.Qc
t.o t.ha enr... th1uesa t4 the -.rket , the7 ba. . bad an appre<l.abla affect. QP011 the
rata.
!'he CUban paso, 11bo. . d.oWD-.rd ..,• ..,.Dt • • cheeked teaterda7, eXJMriiDCM
aao\ber ~ron•nt. tod&7. lt 110nd fr o. a discount of 10-9/16f,. to 11>-3/lftf..
Tba otbar c:urrenci. . cloaed as tollowas
'
l,
Sri .. franc
Swedish k:roaa
Lira
B.elcht:ark
llexican pe.o
I
I J
~ "':J I
. 2Zf&-1/2
.~s6
.0505
. llooO
.1996 bU, . 2016 ottore4
We putcbaeed $1 ,97'4,000 in pl4 froa tha u.r-.rkltd acccnmt of \be lt.U: ot
lo!n:ioo .
- 2 !be .rederal baer.e li&Dlc of 'Uew York report ed io u
of r old :troa Por tu,;al:
the followt mc ilblJaenh
$), 020 , 000 ah1ppe4 b7 t~ :Bank of Portu,p.l to tbe 7edAral Be..n e Ba.zUr: of ••• Yor k ,
t o be e&J'IIarked for account of tb.t lank of Port upl .
61, 000 COD.alCDt4. to the »a.mdacturen 'f'n.1t C~, lew York for a.ecouat of
Lea flls Dre:pf'Qa.
Swlh.erl&D4, tor -.a t o the u . s. A.t•7 Otflce
a t Hew York,
•at•,
$}, 081 , 000 'fot.al.
!he Boaba¥ cold price • • equhalent to SJ4. 1J, otr 121.
tM equl•aleat or 44.su.
-.1n unchaDte-4 e.t
J
I
ott
Sllur ta. BOll~ • •
lj~~~;:l;c~ ~~~~~=1::~:~!~! 1!::; ~=~t~f4~~ !~!;:c~::~7.
lla.l:l43 aDd s.ar.n 1 a ..ule.eat price for f ontp ,u,.er • • \UIICbe..tl,p4 at
}'4-J/'41.
}51.
!be ~wry' s pvebaae price for fonlen ailnr • • abo UDC:b&D.ce4 at
'11 -.te four pvzcb.aaea of ailnr totaliDC )00,000 OUDCi a UD&lv U.. Sib er
Pu.rcbaae .Let, or tb.h &IIO'IUit, 200, 000 ounces npruented .-lea 1'roa bnDtorr b7
one of the re1'1n1nc coJIP&Die e. u d the r..-.1n1DC 100, 000 OUDell conshU4 of aew
pro4ucUon trol:l forei p cOUDt rll a , for forward del1nry.
----ee-N F-1 D ~l Ab
U. I . D••li. D.
Tent..tin ~uou
B.llletin Ho. 4S
Septecber 13. 1~
TEl:lTATIVE U:SSOUS F'ROU THE RECEllT
ACTNE cAIJPXIGN bl tofiOK:
'I
I
:-.;~;~~;.~~;:~;::!;,Ya~i;.~;;~;;~;- "l
tetlieee Dh!afo:i: ·~tti ·;.·prod'Uo"tiOli"'liiWJi'O'le or
part
1a auJict to tlie prorldona or htt.r rAG. HoTS~ber 15.
1~9, AG 350· 05 {11· 1- 39) JI-B-W, •DU ae:aination of Uilitary
D\t'on:~&tion by the Mi11t..ry t:ntollir;enee Dirlaion and by
Recipients cf 1!. 1. 0. Intoration ...
infc~tion
The
contained in this •eries or b\llletl.na
will bo r estriotod to iteua from official sources 'mich ar e
reasonably conti med . The lonons necess arily are tontati""
and 1n no :umse Ll.D.turo atudioe •
_....
-
TRA L"DTG AT 1'HITISB JtA.Cl!D"E GUlf
------~ --SOUP.CES
Tho i.nfon:~&tion cont..in.ed in tills bulletin Q8J::1e f"r•
official American aourc oa l&to in .rune t.Dd. ou1y in JUly, 1~.
It is based upon a rlait to a •ohi.ne pm tr&ini.n& contor aM
oontoronoos at the British 'i~&r Office .
COIITIDI!"S
I.
II•
Ill•
GEl:~.
TP.ADIDIG PP.OG"Wfl •
A.
r~ohino Gun Training Center Syllabua
B.
Speoialhod rrd.nin&
O!lS&RVAt!Oi.tS C&' TP.ADID:G.
J
265
British naohine vm t re.inin,s oentera t ratn not only caohino
~era , but &lao tho c:otor drivor e , ra:~.ge takers and sicn,allore
l:"ho ser-ve with •chino r;un organir.&tiona .
The tr&ini.ng cadres con.sitt of Re£Ula.r Antl;y ottioera held
back frao t'wil" ort;a.'li:t.tion.a or recalled fl"ca r ecent retir.aent,
&nc! aO)eoially C>ualified territorial and. Reserve otfioen . Nonccu:d.uioned oZ'ticera are dt:\er aotive reculara or ex- re&Ul•r•
recently Ntired to the Re:sor "Va .
Trainin,; aohedules are be.aed on a worldnc neek of laL. porioda ,
j
I
each per iod bein& three-qua.rtors of an hour .
At the end of t he f i nt ei~ l':eeb • tra.~ , identio&l for
all reoruita , ~ selected aa driv.ra , ~· takers, and dpllen
are sent to . .p&n.te tr&i.ninc unita c.t the center . The total tiao
of train.inf; h 16 weeka for all ..an except signaller• , who omplete
20 weeb .
•
n.
Dl tl).e British J.rr.:;y, ran, takers dotenaine ran.p•
with the u11e of thn 8()..c:n. carr & Stroud Inf'antry
ran&- finder . ~·
~o. -~-~.i¥'~.;;~·
Ao ~J..!l~~ ~.I..~.iJt.i~~n:.o.r_ ~i'.l.l~~- ·
~rr.~
- 2-
2S6
fol"iT- i
"pei!.:l"tor
od1
Siglal-
D.ar-
~
lera
I
:
=::I
;:..t···- --J
I
1~5
72 2<17
15
15
20
20
5
155
20
15
5
5
20
8
I
20
10
20
70
6o
10
20
10
20
210
1
120 120
~0
~0
··-~-- . .1~ ....12.
22
~0
~0
-~21-- ]_~-- -~'-"- l~
~~~~~
-
~ -
400
400
~0
~0
. . .~o __!L
_525
880 :
267
E.~!~~_;A;!:
B.
~)!!.•}.•.1.1_•.•.•.!'!.1~.
1.
.Df:.i.~_r_s__of. .~t.•.'f'!"!'.l••c.0!1.~.l_o.t.i.O!J_.f!!~. Y.•.~.o._l~.·
It Tdll be noted. that a lum.p SU!II of 210 periodl i a
allotted. in the foreroi..J:lc ayll&bua to drivers for drhin1 and -.i.ntenanc~
Tho bre&kd!1f1l 1a u follcnra 1
Practical D:-i"f'i.n,g Jnatruction - - - - Practical l.laintena.nco - .... - .. ........
Leoturea and. Theoretical Instruction Total - .. - - -
-
- 50 per1oda
.. 55 perioda
- 105 periods
"Pir1"06
-
m
2 . .R~e- .-:~_e.r.~.
The sum of 120 period• allotted 1n the ayllabua for
instruction in rant• talci.Dg ia broken down into tive atacoa . Each atase
OO"nrs & £h'811 nucaber Of d:t.ya and includes hours allotted. for both
lessona: and tiel4 exercises.
The l a st halt hour of ...ch day' a work la doYOted t o
wor kin« out the d&yt a: results , reviaion of all preTioua work, and s hort
talka on iaportant aubjeota •
Tho sta.r;es are as !'ollO"Ira 1
Hours .
Introductory Lecture
General description - pacld.n£ and ~
pao~ (t.auon 1)
Care nnd clet.Jl.int {Lesson 2)
Sottin.:; up inatruz::.ent and focusin&
(tenon })
settin;, ooinoidonoe adjusting scale
(Lenon 6 )
Jja]d.n~ coinoi den.oe {Lesson 4 )
!Talvin& adjustnont (Lesson 5)
Takin& ranpa
b.
2
2
i
2
1
7
~!!.c.~- .s!":!.~.•.•tA..~.t.•s.~ .~Y!_.l
Adjuat:Dent aooordi.nz to da.y' a roaulta
(Leason 7)
l)t.kin& rt.nGO carda {Leason 11)
Tald.n& r~ea in :ro.in and ahim:IDer
(Louon 1')
Taking raneea
~~~-~.!!
- 4-
1
6
1
22
268
£<!.TP.~rr.~
.~r.tt..s.t.•.~.~...{A.~.U:.'!.'rrf!!...~l.'.•).
1
(Louon 12)
..
~!
aa d1tt1oult obJ-et.
~.llnold~
6
llolc1n,; """<• o&...s. (Louon 11)
C&lo\llat1on or ow.drtmoy (lAuca 10) 2
fl\ld.n&
re.nc••
6
!.'>.·.~ .s.~~J . ("!',o,u,t, ···~ .D!P..·l
0
Co1no14ocoe
&d~tm.t
.. !b47IID r'UI.C•
(Louon 7)
Col.t:.clden.co a.djult:Dmt - Jb.t1A,lty
(t.ou0118)
Pr'&otidn,s adjuatzl.ent of ~
batM.C:W~:Dtt (Leuon 7)
Arm.ual tett pn.ol:1oo
P'r'&ota o adjutt:aeot OD lcnOWD
(teaaoo 7)
PTaotbo a4iwt:noat OD DOcm and at.u
(IAuan &
Praotho urc:.nt on lath
n.DC••
(t.euon 9
A.Etl.t;;:~Gt hor
..
.,
4
ran;••
?.1.t:'~.~.~.._(".."fl"'.}.E.!."..l!"ZO..-l
u::e or
I
2
1
1
B
t.tt
Teat ot lath
ra.kin.t
4
6
cowr and lAM 1tlCIIM
(L<uon 15)
T&ki.n£ ~·· to ao~ objoota
(Louan 11~)
~old dut1et (Louon 1.6)
T&ldnt ran,rot
2
'
lll
15
Teat ot ol-nt&ry tra1J:11.nc (<hariA&
hour. of t&k:1ll.; J"'M&OI in thh
period)
Total
J:!lr
, . E_l!?.-.1.1_•!!.•
Tho bre&l:doun or tho l\a'
IUIII
allomt:bt or LOO ~r1oclt
lde.atioal with
lJ\ t~o tyllabua tor ap"Mlalhod tra1n1.nc; or d~llen h
t'lat ahOUJ. 1:: f't.rauap.'l tn . c ., 'i'o!ltatln ~aaoa.. Ja&lletlA uo. LL.
E.'!Z~~
- 5-
269
E.Q!'!!E?!_II±
III . £._~-~~~~~~:~. ,C»>__rRj~~!~:E_.
A.
~c~~.!!.·
Very thorouth indirldual train1.DG in tho neohanica of tho
r;un , ole~, dbaucmbl1Jt& &nd n.aa-.blin(j, and ole&rlnc of atoppa~es
ma chen , but not onous,h firing. Firin& practice 1a roatrioted to a
30-oya.rd ra.n~e . rt b expected that llhon oon join ne.ohino t;\Ul oromlz.ations t.f'tor l eaving centers ., they Trill Move had tull ra.n;o practice
and ocab&t tirin& probltml; w:u:l.or pre. .nt oo."lditions it is oxtreD~ly
doubtf\&1 Wether they do. The inprouion uu created that tactical
train.i.l\':;: was 'baaed too &oh on the u . . or caohine suns 1n doton.dve ,
statio, or trench type •rtare, and nat enoush an orfon.dvo •ploy.:wmt
1n a war
or
t:~ovecent.
Very few =ilitary vehlol u wore available and. nea r ly all
traWns 1'l'aa on c~roial vehi cles , puroh&aed aooond- hand. . This r:YAy
tor
be ••tid'actory ao tar as drirl.J:l: is concerned , but it ia not
the atuey of mintexwlco, one.ooines, oh&uia, lubricatinL !\ld am 1&DJ.t:10D
ayat.:w . There are oonaidora'ble ditfo~•• in these on o<D~Jeroial md
'ood
military nhiolea .
c.
~~.T_a.k_e!.,.• •
Very thorou&h 1r.str.,~;et1on ttal r;iven, and trainees aeeood
I
~
proficient.
o.
~E.!!!·
trainee• teemed to be o1peoially intere1tod 1n dpalliJll•
Frotioiency in )lone oode Md ability to ton4 and reeeiw it by any
a.re etreued. A!'ter the fir:st class i.netl"\\.otion, a ll
a:vailable
means
prt.otioe is done between pairs of menJ these pairs a.re che.nt;ed. each day .
U•e of the uorse coclo by l&l:lp ond buzzerphone is t;i ven more importance
than by other J:WJ&na . Ho radio tr&i."''ins b t iwn. l!Otoroyole despa:tch
rider• ' tr&in.in« 1s: considered. l\4hly icportant .
Uote 1
or inforcation on British trainin& published
previously in this aeries 1a to bo round at the end of
Tentative Lenona Bulletin no. I.Jo~.
A ai.ClJIIILTY'
COliFIDE2:TIAL
- 6-
CO:l!'I.DE:Hl'UL
G-2/2657-235
H.I . D. , V,D,
'l'entat h'a L..tona
:&.UletiD Jo. 46
September 13, 1940
'i'CTA'l'IVE LESSONS rROK mJ REC:W't
.lCTIYE C»?AIGH Uf ZIJROPI!
fhit 49ljUM)t i t btln« «iym m approvf4 dhtrUruUop,
apd go adcUUoQAl s9Wu I f ' ovaUtl!lt lp the H111taq In-
I
~
Sfllinnse phhiop.
lh reproduction 1.11 whole or in pert
la llllbJect to the proYialon• of leU.er '!AG, Boveeber 15,
1939, AG 350.C6 (11-1-39) ~B-M, 1 D1uem1nat1on of M111tar,y
In!oncat1on by the Military Intellicence Divhion and bf
Rocipifi.Jlta ot M. I . D. I nformation• .
The information c:onta.1ne4 in tbla eeriee of bllllet.lna
rill be reatrictK to Uce !roa official sou.rcea 'Wbicb are
reasoe.abl;r con1'1rm4. !he te..ons Dtce..arll¥ a:re tentathe and are in ::10 unse :at'..U't etu41...
l NFANTlU IN THE llLI'l'ZUIF.O
'l'be !ollO'd.ftC article - • pu.bl1ahed on Au£U,st 2, 1940, iD
HUUoryochenblatt, Berlin, a h1P,l7 rtputable aiUtar:r .._dna.
The euential idea contained in the art1ch - na:::aely, the tu.pruac.r
ot Infantry in battle - bas been con!tn:~ed. by all authorltath'e intor=ation at the dil}>otal or the KUitacy Intelligence Divltion.
DIE INlANmli I ii BLU'ZXRIID
b)' Lhutenant-Colonel i&hD
•'l'he catchvord.t blihkriec &ftd n.,.. tactict, >Ciic.h ou.r
en•iu laTe adopttd aad. ~ich .-e, too, have qu.ickl7 accepted, tee:a
to bavt thea riu to a wholly tal . . con.ceptloc in the Dindt or 1!.8D7
people . It 1a time to anal7ze these terot in order that the Taluable
experience gained in previous wart mq not bt lo st , that ve mq be
cuided. b)' nev ex,erience &alned in the pret«~.t war , and tbat the
Yictories von b)' & 1ncen1ou.s co=and and well trained troOJI• u:t not
be minh:d&ad. tb.rouc,h the belief in a airacle.
• Vb.en all the national political tore. . available are conceatr aud in tbe b.a.Me of .n insenious co~Z~&Dd capable of ct~Mcia.c
cmmm:::t'I'IAL
l.
271
CO!:l1'IDENri.U,
itt decisions Jnd &lad to &U\UIIt r uponl1b111ty , and whc tbue
!oren are tully utllhed, even a etronc en~ ar.~~,Y cannot prev.nt
it from w1nn1nc Tlct.orhe. 'l'bil 11 not a new phenomenon 1D. the
hhtory of tha vorld, and there are Deft)' tXM~ples of it. x ... erthllleta, exapl81 of mllU.a.ry and ?()lltlcal tuccenu like Uloee of
the pruent va.r have been ra:re. They are 'baaed u,on no tecret, but
rather upoa the union of a atrotlC nation u.nd.er a tir«le will 1D co•
battlnc: deeocratic, dhunHed and decadent natlone.
•Ou.r ene:aiet ban appli~ wch catchvord.a at blUslalec;
and nev tactic. t.o these vietoriu &nd ha•e thereby tried to l.pl7,
m order to conceal their O'lllll m1Utf\l'y falluru, that we were ullac
'rhe aol dler, howe•er , ant not allov hh clear
ao~ne te<:ret force,
vision of dlr.t h neceual')' in a war and of the cawsea of auccen
o r failure to be d.lmmad. He do. . not t1&bt vith catchvorth; be ten
to it that troope are vell trained, that all an::e cooperate, and that
all are tully \l.t1lhed in c01:1bat.. .A t e et abauld be made on a larcer
seale in order to ' " vbetber •e are e.plo71.o& uer eu and mn
thereby vroucht ineo:aprebenti ble lllracle•. or tllbetber we baYe . .r ...
lT been on the rl&ht tTack and M•e WD our a~eeeues like honOTable
s oldiers.
1 In stud31ng this ~etUon we can take at a bath the
following p:-inciplee !roc the tactice of the coabined a.n~e. Then
principles are Jlrobnbly defined at the obJects of training 1n the
military reculationa of N.l countTlee:
1. ·~e obJect of a ll armt 1t to allo• tbe Infantry t o
reach the en~ ~1le atill 1n poue. .ion of su.ft1cient !1r1ac: Ed
attacking pover to brine about a final decision.
•Great icport&Dee h attached to the In!antl7 in our
Anrq with f\lll knovled«e of the principle on which thll coo4 old
Ge rcan military ideal h baud; namel,y, that the courac:e and. afticiency of the individual s oldier is the daclshe faetor, r4f6ardl en of the tochnlquo oo:9loyed. The Infantry conatitut. . t he uln
arm , and. h eupport ed by all the other arma , -.bleb trr to tee to it,
as far as pouible, that the I n!antry h able to enca&e 1n close
coobat a&alntt the ene:Q' with ita streacth i.,aired a• little as
pouible. U our &Tiatora and te~kl baTe mcceeded dur inc the
present war tn ut1lhia& this tactical priaciple to ~ch cood a4v8:1tac;e 1n ~ plac" the the Infantry baa otter:: encouctered. c
alrea.d.,y crushed foe, this merel7 pront that our troops of all &nil
have been proper17 trained and not that the i:1portaz:.ce of t.he lnfantry1a aiuiou h&a diainhhed.
• The bulle of the In!antr7 w1t rely upon t he cooperation
of the Artillery; the varl.cu.a OflCACellletl.tS in Poland and tbe dechhe
2.
272
COlU'IDr::!t'UA!!
attack • Ul)On the Veygand Line • and t.he Na«1not Line have demonetre.td
thia f act, They have al ae pr ond that the enQY'I laet r eai1tance
must be broken, ae hi t herto , b)' t he Infantry, and t hat in the laet
hund r ed meter1 ot a cbarce t he Infantry -..e t accocplhh t hla uault
unaided &."ld eolel7 by terce ot it. own veapona. 'l'b.e Infantey, nlri cg upon ih ow power, va.a conac:iou.e o! ita str eQ&'tb Just •• U: wa
durin« the Vorld War, ald. 1t von a Yicto:y b7 e=pl OriQC nev ttrat-ctc
methode . In contormty vlth ita •1. .1oa, 1t. bor e the aa1D buden or
tbe et ru.&&le and prcwed to be ~eeo of the Battlefield.
2. 'A. beaten ene~ h releatleu ly pura~.ed, and each .IUJl
gives every ounce of e tren&th that he hu in acco=:plit.bi n& thh JNr :poae.
'j
'The attack:in& troop• keep at the beatm ene:D¥ 1 1 heele;
no \oll&rineaa, however extre:~e, can cau1e the to ~,.., up the purmit. l:Urtac the purmit, the tanks, niatora, and !aat trOCJ»I 4.Yelop the taeticftl. wcce. . into a ttratea-ic one. llnertheleu, the
I nfantry aho conUnuee to t&t:e part 1D the pu.rmit., ancl i t w.at aehat ahown once acre, It
co:pllah creat feats, as the preaertt
preuea f orvard ulentleasl ,- eel 1a not afraid to lo. . t011p0raril7
the previau.aly clo. . tupport of ih ne1&hbort in order to pr8'Yan t
the o ne~:~¥ !roa m.Ncint; a nev s t and. 'l'hh neeuaitatet bolcl. ancl. 4 ...
chive action on t he !)art of t he aubord1nate com:t~Bndeu, \lobo can utually
count onl ;r upon their o~ r et"!)ec t he unit a And IIJU.tt W88t t he combat
without rel y1nc on the asahtance of their ne lghbort . It h perhas1n juat t.bh k1ncl. of co~:~bat that wt have tbown ourael"f'et ttrongeat
durinc the pre• en t Y&r .
"*"
•.&. contlcl.eratlon o~ the principle• Jutt detcrihed will ahov
v er y plainly that troops had baeD adequ.ateQ' prepared and t rained fo r
coobat. In ac:cord.ance vlththc lli u iont euiped. th•, all &rat ba•e
suP!)orted the ln!a::~tr;r eo tu.lly that ln many cues the ideal of enabllns the Infantry to r each the enemr vHh ita tt r encth still uni•
paired va a almoa t completely att-.lned . Only thl. a 11 1t poetible to
expl ain the N.mott incredibly t=-11 louee at compe.red wU.h thote
occurring durin& the World War. Nenrtheleu, 1t should be stAted
that the endurance e.nd tenacity shown by tbt Infantry durin&: the
World !Jar, a ncl. -cai n i n the prueat war , vae the deei eiYe fac tor Wen
i t vas oppo"d by m e(!Ually t e!l&Cioue ene~Q". 'l'herefon, vbea i nitial
au::cene• were avtfUy developed by tM eo~ into etrateclc
auccetses, ther e occurred th:o~ ec:plo~t of all arat a purtuit of
the eD.~ u-.ralleled in tbe bhtorr of tt. vor ld, and the comm.e.nders
of even the '=alleat unltt vere clad to au\I.Qe responti~ilitf. h
vas thie fact that vat nev to our toe1. 'l'be¥ call i t bU tskriec: and.
talk ot our tecrets. To ua th1t q.J.ick tucceu vas due to our train-
• 'l'he Weycand Line 1s the line of tbe So=• and the Alene. ~.
3.
273
COllf!D!:NTU1
he, but 1t enulot eau.u ue to 0'9'e:-look "'• beeic i.aport.azl.ce or t;ent-ral prlnclpl. . in combat.1ac a tenacious a%14 obst inate toe. '!'be
treat ew:ceeue o'btel ned b7 all &rme sroup t.be~uebee about t.he vict ory o r the 11\fa.ntq, vhich, •• t he principal an, overcame the en_,.
man to m&n, and tbue triumphed over hie t echnique. •
.
,
..
274
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DECLASSIFIED
ilOO Olft. ••••·• <•l•'t">
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IB EiC 1i At
277
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~:
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........ . C@rle
!~::--.
r ..e
Yo.an
F're~l.JF~N~;~tti!'Ae~:~;~:) Ju!~·~.~ c~!~! ~4:~~Y·
J;.:s-: C' .led :~ up bet'c:-e h~ . ot. l:,.re on tl':.e C(-Jeatlon
t old hl.D -c t """Oney for t:O.eo lr. so~.r::1 A..,torlcn.,
I ~;;- be ..-ror -- t M: t ;e D"''"lArt ent 414 r.::;~: ,.ll:'lt to
" lve t .•el3 •J 'One:~ t'or 3-:Jut!\ A ~rl::o• .
r..,.,_ :
I t:urv. 1t 111 ot!':~~llle.
!~r . B,..r~,. :
tc~~!".r-a . . .
,.e -ould rhk lt " or on,. nont"l,
H:: ,Jr :
':'h~~tn
I t htnk
I ,.., 1"11-.:e-1 u· •
J:r. 'q~rl~: %t ';·.~ Cot;bln,.:, .'\~ ..-e U:'l~er•too4.
lt, had t~l\ta 1t o·•er 11.r.1. h'\d "•et~e-1 tl".11.-: --; .~y • .,\lld
!v~ 1: tot · e;, :t'~r ·~.f'! ::or:h A'\~rlr ..n eatftbl1ah."="#1'1ts, 't.u:
n ot)..lnt !'"or
~
~·Jtl!.~e .
e:~*llh;-,.;n~~~itt~\;.6,
:oCJ~Ji~etT~~~t ·~=P.·~~~~di,:t
did not h'lvt- '"no·r~ l'!!'"orlt\-
over • t
'D:.rf' Abo:.1t So'Jtj. A t'-rlca ;
tlon, L•Jt r.a ff'lr 11! Euro~ ..1\1 conl"'erned, no , but l.e
•11.r. teJ ~or,. lr:t'c:o "'l/\tlon . . ...
··,... 81-rl,.:
·ye :""t"dt:.e yo·1 are
""le rll'.: 1-: .
E;a.=l ln~ 11l 1 1""' .)'0•1 C ft 1 t ,. ... ln t~"'.t :.lot AO Clr&~f' d~t.:a Pnou; h 0"1 - :.n.t ~~c!l rtll'-'"' le 4o1n~.
1nd, ~ ,.n :1cu ... o
~:
:-a.·. : ec
1 '1:1!1 4.
11~ •
ba~'t,
t~l11ng
t
f! ... 1'1
,.
ee eo hat , I
c~~;n ' t
278
H:: .Jr :
]
lf' you don ' ~ "Dl~11.1 , t ~ll Hull, a r.j, -:!":e
aeeor.o. we ·et ..ord on t!:.At .,., w1 ll rel,.,.ae 1:.
s .,..edent
I
l:r. !!erl t' :
T:1s a tate
or
af!R1.rs, na fAr AB we
are concerned, llcenaea hAve been decl ined •...
H!.. Jr:
Declined or cancelledt
I:to. B~rle : CancelleC.
So t t.e Swede a have t he
a tuff onU can 1 t uae lt, but t hn t d.oea no t meAn we get
lt.
W'e have told t:1e11 to t ake it 110 wl tt. the ~nutncturer .
The:.r l-.!lve BJ.t,l t.,o ~.1"ve : !'lrat , t~o;.· -rould release 1t
only on a at rA l t·h:
defense ;
and. t~~nt
atl'.te:~rnt
1
••
1~
r.e needeJ. lt to!' our !:C.tlonal
sec ond , tMt t;.el woul d have : o be 1:)._'\ld tor 1 t
b 1ll la hl h.
The:r 'W"Ult the ·::.rice of the
plenea plus t.1e .,rice of t:1e purc:n.n.e1ng coa~.;~ h s lon plu1
liquidated daoo.f·ea for tracln • t he 3wed1sh Ar:lY IU"ound
this tyoe of ola.ne ln at~"'d o f so.,. ot~~er type or pl a ne -.:tr..Gunta to an o:rer to ~u.y t!"te Yln,:odOCl ot S1teden.
":"h-1rd,
t!.e C!"l.!r:aao.n : n town haa o'Qened ao::e r.e••otlr. tlO!"'S ~o a~e
1! he ca n ~·et t;-.oae 'OlA!"'ea a nd I ft.."'l not B'lr">r11'1ed 1! the
S"edee tr:r to use t:v11t aa a delA;,'ln"' opertlt1on.
Cn the
bt a1s ot t!'vlt ,..e tock t!'.e etl~t noaltlon t h111t we w.,nt6d
to tlnd out whA.t t~ry rr ..,lly "flnted n.,d would t r ; t o 'bel\t
lt do-r.n to r ensor.able ttt"1'.a .
B•Jt I also uetd 'JO".;r n..,oe
in V'1!.n ttn1 our Deo.o..rtt:~r.t & n.-.~.,. 1:1 va1 !"1 to .·et the Senate
to clear out th~ Requidtlon 8111 , -:~.lch I u n_.e ... "'tand they
Mve donf' .
:o~~l! House tJt;a naaaed 1t, t~e 3~r.ate h.'\e oaaaed
lt with all ·~t at!end-:ent .
I .,reau"1e lt ...111 1'"'0 th....o ~.wh
cor;f("r er.ce nnd "11 1 be out .
And t o rel1e•te t h~ nreeaure
•we talk about 1 t, 11 b~t 1'1 an<J t ~v·r te·r dl';y-. ,.oe onn d la o'Jea
lt 1: ter .
:Cou ...111 or;Ur.bl;: f lnd r,:,...,t lt "111 relieve
t.l;;;a Ere:1.tly.
t~.e
_,1
279
- 3-
K.: . Jr:
You ~,.~ lt ,... juat t'll:e th~r.t
~:
Yes.
Beea•ar: he «':oea not h.•w., t o
ex--1111 t\l ;.!a ...Qv~r!"'~nt , ,..hlch t.na t o ex.,l•1 n to
1:0 t: •• e.t, so~·:.~:J'
9erlln • 1
and •~ "tt . .
J
I
:.1•.
41d this to ~t:~.
Jnn.. ~n o!:h•r .,-orda ,
b,. ""'!"Y ?oll t e and ll at en
8• ·1to:
I thln'• you onn go sll ...htly tu.rttf!r
and &8./ ~:.~; o:1n 1 t !:r.OOrt the nb. nea . We a~..'lll be hi\'I)J)y
to t. V" ~~-;:wit rel\aordl.tle t'1n11r:elnl ~tdJuse;"'.ent "nd
t:.~n le ... 1m tul.,.. ,
~:
He will All:> t.rl:'ij U!) t~.r.. '~Jtat1on of
ot IA!r wu.r !teme.
H~ Md a talk ·-it!. p .. •tf'r,on on
and hft ..roreo Pctter$Or. down an.1 ~.e c~ l led .., ui) on
:...e te ler.>l'.o!'l.e ·~ wept on my sboul 6.er to let :.l a 1'.-... ve tt.e
ot••cr .,-..a:t1t1o:~a l nl\I'!Uch aa we M"fl keeptnr- the J)l'U'.ea and
Pntteraon CM~ aee no reason why Ule;;, ahoulrl not ·~o 011t ot
t he ... ountry l t l t kept h l m q;J.le: , nh1ch I 3UJ)">OI~ 11 rela tively ren.soMOle , except 1t £Ofla Rt...alna: the •holo policy
on "ll1ch th.i' thll"£ waa baaed.
t ..eae
t~. t.
I Qn1e c,ut a su:oary 1 111t of t.\f" oth.-r a:uff they
r.t.ve , outside o! !)l•r.ea , Otocauae I t. ~r.k thAt ' s oln• to
le t .•e aeconJ. ..•.
Aroun 1
:.'!' .
!~'>r'll" :
H,.. ,
Youn~ :
ro:---
: ••e n.m'b~r of pl4nea 11 conat"er3blf" .
The lasteat
~:
Thf"y -re
:: • '!'..,.1!'1""' :
T:1E'
nu~ber
~o~
ot Renubl l c!'l ou t ia
oth·r ....
1/•J: tee -.a tnken on i t a teat
Yo';l ....... vr hlP'h@'r !1tn~ree?
4'1r~t
r11
t .;._ ·- ia,y .
we 1
• R• r·l" :
I d1"' .
6? I t"".ln:-:: "",.. our t11!"'..tl"f' Ar.d.
.~ .. , 1-'":e <.')- .50 'loll tee ' a Just rr.,.ey !or
:11 .t, ..ut Aa"x...tn t~.n.t CCI.t·a out rlrrht I P'ftthE'r
tes~
thE'l
·1.11
~~
oln"' Along .
2oo
'!': .. ~,.~ will be co:J.:-
!-t. ,J :
3~ ... 11 ~ h
J
~:~lor,f"' too l n the
It ' a t~e i\e1;lu""l1oe , . ne,.d .
ve t1= 1r,'i
I '!'OUld love to t lk Chlr.a ,
H.. Jr :
I
• i
Well , ~:z . 1e cretAry, I ve: ~lN to trou~le
;:1"~ tf':- :
• O!l a.bo~ua11on 'or our lleenaea tor cert~tln war a.. .1..: trr! t nd ·ou re t~.ft hr do! tl ~ Cor.nlt!:et' .
t~rlel.
~:
!·C ..•• :
!lo..
~:
Se,... !)llrdon.
::o, I r
not :te
h~.'ld .
Sut lt' e under t."'-e Trefl!aur,
Depnrt::~rnt
8r.JTrl .. .
K. • •J.
Cc.-...1·
~:r .
: We l-.A'-11 or.tt out or t .ree ;:eo"oers on t:Oe
':. re Are t!'lree aecbers or. the Co lttee .
Y
:tr.E' ,
'l':of' ,.,r :y hn1 a .~nber Ar.d t:,l'l l iavy
r nd Colonel t:.'lX"ftll AlGo altf. .. tt:.
!-.!'I.e a s:t
so we are only one Ci'.lt or three .
: see.
co: 1•tee.
1 ':.,.r:
• t
cJr; ... ttr
o:~ 1.""
tter.~ ,
But .• r . Yc..un .. ls t .e p~e1d.1ng
I t.hou. ht ~»7be 1: waa "'ell I
e~-e
._t__
~
· -
l .
1tu
r:
1- n- . - -
:!o:.a uan I d!.d all t!".e t alk1"'6 ·
Yes .
1:.1y I brlet!y rev!e,..
tt~e: w·
ole
281
: . ..?ve e;\ l n1ntd 1t -=::> . ;r . 5u.oru r
. . lnt t r :
• ---y;;;-;-.r./ .·w e ,., r et tro:1 h1.::a, 1.:. • S•rl"·
. .
Yee.
..,. rl~ :
1'ell , l t' ;rc..a o f ttr bac': to o•.u- ....:.t.l ft
~:
~er~n se l~ rn.: , of co·t:•r.e l i k e E"\l ll!nd ::.nd all t~...
coun tl'!f"'a "' 10 !"elled on : ..t" 1.~ 1e c.t ::n:ton e tc.r col .,~'>ct l ve ~e c .lrl t;t , "e 11"''::Pn~ed t ? defend !'-:>r :\ ceort, l n
ex';er.: ar.t1 not Q 11 t tl' l'.e r:uc!. ns ojJ:r S"!'...'\ll~r nd ·:-t~r-1
':'!~en r11en t:~e H:.:ler ~hreat ca:-.o '.lp
e-r.re· t Flnlan 1•
"'eVe :t ~0 81"'!1 U"i) , b:J;t or c~n::-ae , ll~e t ~e o:her~ , toe.
.)
I
:nte
At1..\
t 'lf'n
llf"": t
'!
il n .., l .~ w "~ c~.e
... !•el:>e.1 Fi n l And
!:ot i-.."1 !'
~,.rlfllll.
:.4C •• DON t.~:\ !-..al!' ot our "' r
o!' e .,.r,.::.tne, tu t alto~et~;e:- ; eo12 =..oc!l no:N~ t tl\•., 1-.al t,
:-.:.r- !natr_"'lcf!, ~ et!'lnn.e J OU'!"e,. lv~• co~l• '; flly ot antl '.fh.- n tt:.,. ":"'...'""f!l\t
tan''c. unr, ~ c:l:.n• ;-:a , tu:'C'J.nl:lon.
""ro '>f'r:jO,n;, ca coa t acute we hnd , na n ::l.'\ttf"r c~ ! Ae t ,
T::.t'tt 1 a all .
e!.tnf!! Jn ru:-t1t1 on3 tor a !'t11l' rJ.nu::u .
Pl11.r.ea ft l llo •
Cee. uaC" ~ · .. 1 cer.t f'ver;tt . .l n to Finl fl!'lr'i .
.le £'"t1~ t-herJ COl~e t :,~n 20'~ Ot" t :,e t P" 'l'll."nes "~ hl\d ,
'ife ·erP l nd to t!o 1 t; , ot eo•.1re,. ,
...SO .llil , nn1 so on.
TM t 1 s ._.,...:" ,..e
tlu~ t .~. "'"' t .. d to trj tc !'! 11 th"' "'f\1")1 .
dele t!c.n .~:oe ln J tn•J"U'"~ 1r.d ~e:.~r-.. . 'r';.ey
&er.t o t
f'~ .ere r .. !" t.wc. ..X..l-:J\8 and : oft)' ·ot ever y ~83 1blf'l h flll'D
:r... : ..e ?rea!c!.e~: ar.d :le!Wl!"' t.e·.ta a.~ e::tc oura. eunt :o
11!'! !..l a
•
':'o
J .. 1n q J1'::e " la.r·e orlrr or ol no .
A we
te' in c1! , w<: lUt : .. A"': or•ler :c'!" t' • !\ep~blic, "'f.'.1~t.
.., :. ca c!.tl t~.o et o 1r !~~J.ir•.~"'r::s , an4 a~ter
.A~!:.:
e al Q .. ~ ·:- e ... '! o~ 't~e '/ultees, wut .. ~t ":'ft.l t .:>r
..
O! t~· RepuU!lcG , we hn.ve r'ceived 6:!
:.'\!tor' <:S.e-11·•""r .
yl nee wut Qr' a :. .tlll nu.:lt.er , ll t :. ,.t~.,.::- , of ~GO , ..,,.1ch
till
'i\.· l't> re 11111 no" 22,
uc·..
!s :. ot so
1~
!
rc:~e
1ber
.~!·d.~' ;~~ ~~~o. ~~~·~~-;~~dl/~~~hl~~~~~d ~~;,i!~:~se ,
~"I"
!ater 4c!1ver.: .
cc.
~ th t~.e P·-es1Jen! soctJ:o t!c e
!.. .
-ly bl"t"''.J'~
s~e tl-~ rre~1de'!.: ly
1t 1n all
m~c!: to
Hf" ~• -re '!'y
.... 1~:le orJ.e!":3 Wd n :~.e ~el.-l"""'t;1on whe 't"'N' .
no!"r;, Rbo 1.. our ~1 t'J1T.!r:m , .1!.11 no~ ::--.1:Ut t here ~• riJ c.'\
I
.
·•t. ..·s.·
Gi'O ar.d : .,.. ed to
he ">I'I"BO:" lly 1-
enccu:-ared. us eo
-.o
282
- 6c~~o~~~nc:e &t.v'.Jt t"l~ Plfl.nea MJ h e d1d not g h e any p~:al ae
at all , but, ae I told JO'J. , nr . Yo'J.M , b~ f ore , he a n l d
thnt. he •oul1 do hla beat to t r.:r to P'f> t t he 11cenao t o r
~.e 22 ~lar:.ea flOYWf')' .
T:v"; h't.a not been detln~ ta ly
det'!lned , so f or tLe pb.ne• ,... don ' t 1na1 at .
W
e un<\e r et&nd tl".e 'lO"ltlon tilAt bot h you and Er>:l:\n~ ,. r e ln au ch
need of t;ol"t."lee, a l •e t .."'ve accented t hA.t dech l on but
!or t~e c::-.er •~r r.ater!.el ! t":.ln't lt la r~llll1 h1~rde r .
I c1 t'.t uy t~'lt t~l!r• ll."'e ao-:e ol ftne oart a , a nto-. a •pl1eatlo: ser:: ln .. ..
p:r! ~r
. 'r. Y.J·Jn :
:o-:ur;:--
S"~"'e p..r~a !or t~e s1"".1ua a'-.J.ppell
:o1·!:!~!e~=~ ~f i:.:!l!:;: ~~:~iei0 ~:.~~~ ~:o::;:•r.
9-Jt
·
!tec.1 •~..lc;, art not ~sed ln the Unl ';ed 3tft':e !l, ~>nly l n
Euro;..e: ~ • . "!, ill1tol1 ar.d A~:wnlt lon .
'i'he on l y ll et~trae
'
j
t.i.~: reA!ly raa not revoked wa a t or ao~e ta1111on round a o r
L'l.':~!'l1t1on tor tl:one ~ t a t ola .
F-ort~.,. f.ll atola ";ha:=aelve e
l'e w~re re!"uaed .
Th1.t a('t~a lllo.)lcn.l :;o oe w:ten y ou eay
t:. t we c:tn et ti".e a 1 nm1t1on because thtt. t callb~r 1 1 not
•ue(!.
I t ' a t:r.t an e cal1t.er a1 t!-.e pl etola.
I :--.. .,,.. ex~la l r.eJ. all :.J.e ln several memorAnda llnd.
le";t.eo:-e to :..!'" . 3.J.::mtr Wellta , w!.tc .. l t~.t r.': 1-..ave ~en eent
"" . Yc~ .
cortr t..,
~:
. .1 ~' \ .. t~r :
Yea •
An~
l cQZ:Ie to )"O'J becAuse : !"..ave eee n
to~ , 'c;ecttuae I :..tlve t.een t old - w!".er", b•Jt 1r. a
l"lcea , they 1 r:~!)rtae De
lll bellev1~ t.:o~~t '""' are un~cr Ge:· .·L:l do:::~ 1 nt.t1on , w:,tc h
1a no': tr-.le .
'fe have 1 fll I
7 , :"'~listed every ~~~nd
ot :he Ger-ana dJ:1n <;}.,. UOl"• e:·i "r. wnr.
'ifl'-.en they
wanted to aend troops t!u·ou. h Sweden .-a r etuaed ttt tre men1.oua rlsk And !or ar-ver.11 d."'.YI lt loo~:ed like tt.n.t "e
were oln.- to be 1r~ ·uuted .
Aa n mtter or !'net , they
aeu e~
I dor. ' <;
::rt
t •.e
.i1.rv )eople
"!lOW
none t~~ I ,:~t t~~o~a:eo~l :~tt~:. t~~l ~~~:; ~.•~r~~~n~;::
n:~: oni:; t::.e : cr•egllln bol'"fler :,u'; t~.e eft.s":ern.
We hl\ve
283
- ?-
alto ,:; .er llhot Jown !."!3 Cerll&n Pl&."1u , 5 ln one~..., ,
w••1.c .. I t t.l.nk 1a a 5):-etty •llod acco·J:~t ~~r a nei.ltr:\1.
3 ~ ~e are a'b•ol~~ely dec1"-e4 tc. ."'!e:' ....
3o 1! ~ ...... op!nlc.n stoulti Mve a:-:y be-IU'!r.c on
t ..e 1ttc1alon t~ rl"!'use us • .•e llunfl~ , I &.~ t:-y1~ cy
_eat t:; r' ;;aovc t;,..t;t op1:-:1on wt.1c~-: 11 r.-.t Juat1t1e~ . I
d:n ' ~ 1 ~w;.,.. 1t lt exleta ln t'-,,. .eraor.• w~o C.ecl<'.e , b'Jt
I cen i> U P ~tn.:r other exnlAM :ion ..!1y we could not tfl t
«t leas t Mrt Ot ';~I ?rnr r:v. terlel. ~ I t 8"1 :a IXCf'ed ..
1:-.. lj lwrd. wi".en we &re ao Mdly ln need to!' 1t:, I t!-11\t .
I!' we 'VlVt weApons t? de!e:td ou,. .. l•t•a, we C"ln rea\at
~erun
\ j
prras-Jre
ore .
7 ~t 1• evlder.~ .
A'I I 1.:\7, I would !J.e g l:td 1! ... '"'.e ll?'Cl1 .. :lena f or
lieenee r~r t:"'.e reat or t!'le wft:r c:1terlrl •~u.!d t.f' reoor.e!:lPre~ .
:.r. Youn told lle at ';~.e la'St =~et1:"'- t~"lt t.e
•o:.~.lJ. not !:1e me n.ny !:o1')4!' for ~tn:y of :;..eee, whlch I thlr.k
ls v~ry u:u-eno?n&b le 1! you r,.l\ll;r loo".t 1nto o;'lo ;at t ~:- .
I ..,on' :. b~~.,.r you , •:r. 3eerf!tl\r: , t.ut I l.nve eoolee ot
nll or lt l"~rft , b\lt you hnve
l t nlres ~:f nrobttbly .
,,.,t,
I
.,
Then r:.n.y I "!" .. !. ~n anoth~f" thing.
T:i.ere 1" on•
llcenl!le !'0'" "'".-e r:llt"lU!'"C::Jre Of - - ! ~O:l 1 '; l!lf'l~ t;O h"-¥1
1 t "''! ~h M -- I sen~ 1n a new apt>l1c•tlon !Dr : .e aan·.o~
fllctur~ c" ~t'-' t-ln ml11') ftlr;;.liL"'tf' ~'l'l(;tn• ln s~~en the
ot"'•r dAJ •
·~=ber
·::-. y~ , n .. : '!:.at -.rn8 tor t!:., fl-.."'l•ft 75 A , 11.1 l r,. -- C.u-tu.: .
~:
~~ :
How
a~u!)ld
I don ' t hAve a co-oy wl th
I t'.. ve your request A'ld I
!~!"!'ftrJ.ed
1t
~ 1"'1 ..~•r:
.h c. rel!aon t?r t .•e :-e!' ..:.aal e!' all
t . .11 11 y .u- OWJ"' neeJ.s and a !lcenae :~ -ar.u!' ct'iol.N' !n
.e-a r'lO't de -:-!vr you o! one a:.ru;le Cfi.C~lne, eo
lt co •ld not be !'or ::u: ~-essor. .
3':"'t~('C
,~ .
Jr:
Llae r1es t<J "lA.nU!'1C":I.L'"e !.n 3wedenf
t.~ !
284
-S-
.:11 1-. t ,.'!"':
~·ou
_ :lU
ar.J
In
r ..
1-C ,.; :
3wed~r .
'>ro!uctT
~:
Pl:1nea.
~:
!!.."!.nur c:ur1:-
~:
1
llc~nse :!"or tt.e c ;rt1a1
n.s t s t~.e one ~he French Md.
~I:.;_; ~ar::ri/t:!:~~r~t!n:: ~=~: ~!;~!~l~~~ !~~
1. ~o ~ay .
1'-"-'teo 1..
::1.,1f'l!:f'r: Here it is.
I be-r: your ~~(ln .
•u e~ot1;r.t1o""'i1iil'Vi0een conl!uet•d by th~ 9'!"'ed1eh Air Force Co~
rllB"' ion nl t •" t:n1 <:ed A1rcrn!t Cornor'l':ion ot East Hartfor(!, Conn. , loo!:!.r.C" to~rde a contr"'et tor t~e tfl.lf" or
e.nn•l ~aet•Jr1PL.- r1 ..hts c~ t!'.f" ~w!n-'faeo Air'!')l,oane ei\C' lne ln
S'tfed,... .
3-; c. letttr :!A"'c:J. July 1:>, 1?40, tl".e ::nlted
;.~rcr ..: CorT>Omtlor: ! .. ":"'o:-~d the 3~d!s~ Air F~rce C'>~
~SB1on "'ha"' ..,.._,..,.. .... rv' bee~ 1n1'0""'l0" t:-..'lt. <:!-.e ··• '3. ~ve :-r.
.....er: na O~!ed· •c a;~ co~n7 l'!e;"'C!!. .. •ar.t or cloe!.n,. MY
cor.t:-ae:a tor t~e .. =r"l n e:\le c:~ Mnu!."l.c":ur!nc rlr:'~t:~ o:!"
a!rcr !"t enp:!nee .,~.~c., :~.{0: ~· .. u!'-te • ':""!~ .
':":,,. nerc.:1 ttone
tJ:- • ... e a.: lf' c! tl':.l!i muu:r c: •Jrl nc :-1-··.te ;,~ ..!",. ':'•ln(l'n.-tr• 1n S"Ye!~n h'i·te , ~~:.er ~..,r,. , been bro:~en o r:r . •
~Ct:'l of
I
~o::.
.....e
:~
:o;._,_t
h t !l
H'J ~ut
ro:-
been C!ecllntod -- t:""t llcenee.
On t he
1r. t:-.ls not,. to the 9tnte De l')artcH~nt I
or that.
reeone11er::~.:.!.::.n
~:
:.!. •
::: •.:. :
..
•••~
·re
t .:·.~
:
:-e:.e~r t~l
... uo
:·-..r: req'..leat
!11 ~ 1': !.t ;J~r here an,. I ac
:rc:s _,OJ. !'lt>lt- 'uan''·
t~. ':;
~ad
.:1 ! <;-.r : i'l~'\n· you .
I don• .. ~no• it All the
renewe4~t1ons t.t·ve co .e ln.
2o5
~:
Ap,l1Cllt1ons !or exoort 11ceneu1
yo'.1 L "~~~/~: or~~.'~d !~r CQ"le1l~ra: lon .
!t'Jt, an yway,
~:Yes .
l:1,11P1ter: Well, I ".opP you can do aonet~n,. beCRuse 1~y d1acournr.lntt when .,.e hnve ::l.tlde such An
J
r
effort and }~~~ ~eo~le -- tor lnat'lnoe, pistole.
To ~e t
a special tttJe t::.at !'lt our needa at a lot of emenee to
lncreGtl ~rodiJ~tlon I the nncheater Oo;:pany to lncreae e
pro\!'.1ct1c:- ':1~ pls':ol e , s.nl ale~., !'or the ~!:Un1t1cn , o.nd
tt..en we tre eu~enly cut ott an d can' t ce t anyth1ne . '!ll'e
are badl7 ln need o! 1:.
u; J; :
All rlr::t.t , 31r.
~:
I
~:
:"Jn "''l
~:
:~
J.:
I r!ll
Yee.
t~e
all
thee~
T!\.""ik:,-ou.
":":iJLr&:< :JOU v,.'!":J INch !'or
~:
ps.pera bR.clt.
I t.nve oopl ee ot all or thoae,
':'i~!f.o:
you
!'O!"
com.l~
rf!ee1vlng
o"k- oOo
• lr.
e.
286
The .,"wecUah k l n l ster presents hi e cacpl i.men ta to the
Honou rab l e the Secretary of ,:,t ate und , w1 th r efe rence t o pr evious
verbal repreeen totiontJ i n the ot at.e Depart.c.ent , bae the honour to
re1ueat the kind aos istance ot the Secretary in tbe t ollowrrin,g
matter :
1\e&oti&tl on e bave been condu cted bt t he Swed ish Al r Fo r c e
Cotn::l19elon fU'Id the Unl ted Alrorttft Corporation ot Eaat Hartfo rd .
Conn . , look1118 towards a c on tract t or the sale ot manufacturing
r i 3hta
or the 'I'Wl n - Waap a i rplane
eu~lne
in Sweden.
By a lette r
dated 1uly 19 , 1940, the United Al r crett Cor por ation i nformed the
.:)wedisb Ai r Force Co=:nission tb!.t they bed b e en i nformed. tMt the
U.
Q t
s.
Govern:Dent was OpiJO&ed to the compa.Q.1 ' & DftdOt l at i..D& o r
closing any contructs for the foreign s ale or uanu racturl n.::s, r lghte
or a i rcraft eug1noa whi ch they manufactured .
ror the sale
in
~eden
or
The ne&ot1a t1ons
the manufactur1no ric1hta or the Twi n- Wasp eng i ne
b!llve , therefore , been broken ott.
The tyz.e or en31ne 1n question ia
lready r!l.l rl.y old and or
a power that probably' •·111 not s u ffi ce tor u se in aodern W. ll tary
a irpl anes or the Un ited St ates .
rl~bts
Furthe rmore , i t the wanuractur iDS
shou ld be granted , i t wi l l be a long t1 r1e befor e t he firs t
e113ines coulc! be completed i n Sweden.
The
gran t! ~
or t.be m.anu-
tscturing rlchu does , conse i.\lently , not involv e &n¥ releas e or
mill tery secreta .
The .:,Wedlah Oovernoent baa
~. ~
~laced
large contracts wi t.h
l:lwedlsh airJllane manufacturers , all or wh i ch contrsota are based
on the use or 8Jl61nes to be purchased in the u.;:,.A. Contracts
1
fOr t .'l888 80S 1088 b&V8 been p laCed 1 but the f18C888'lry 8 :1pOrt
l i censes have recently been :-evoked .
287
-2The grantina ot manutacturlnc; ri<)hta tor the Twln-Waap engine
would be a great help in overoOd!.ing the dltf1cult1ea whloh the
Swedish Government are now taoin& through t he revocation of all
the export llceneee tor airplanes and engines .
Acting upon lnatructlona tro:a hie
O.overJU~ent ,
the Swedish
.Un1ster beg a leaTe to aak the Secretary ot bta te to be good
enough to approttoh the proper branch ot the Ameri can Go't'ernment
ln order th.at the necessary
authorl ~e.tl on
uy be given to the
Unl ted Al roroft Corporation to enable the to make a contract
with the ....wedlah Air Force Co!.lllll:lalon for the sale of the aumuracturl~
rlghtl ln ...ueation .
Waahl l\f!tOD, D. C.
•
1
Au,gult 26 , 1940 •
288
EXCERPT:
Negotiations l:rl ve been conducted by the &'wed l ab Air·
Foree Commiaalon and the United Alroratt Corporat ion of
East Hartford, Conn ., looking towards a c ontract tor the
sale or manutaoturl ng rights or the Twin-Wasp airplane
engine in Sweden .
J
By a letter dated Jul.y 19 , l9l.O , the
United Aircraft Corporation i nformed the Swedleb Air Force
I
Com:aission that they bad been l nto~d that the u .
s.
CoT-
ernment waa oppoae4 to the company neso\l&ting o r cloalz:r.g
a ny cont.racta to r the torei&n sale of ma.nuracturlng r16bts of
(I
aircraft en&lnee which they aanutaotured .
tor the sal e ot the manufa cturing rlohte
The ne&ot1ati on e
or
th e 'l"Wln-Wa ap
engine in Sweden have , therefor e , been broken or r .
TREA SURY DEPARTMENT
INTER OFFlCE COMMUNICATION
DATI: Sepltll'o.r 1 ) 1 1940
Secret &J7 Morgentbau
~M
! . H. Fol.,. , 1r.
The queeUc:c bu ariaeo whether the follori.J:I& proYi.o, wblch
appears under "lllUtarr Posta• 1D 1'Ule III, Millt&ry Approprl aUoc
Act , 1941 (Public, No. 781 , 76th CODgH88) 1 r~uirea tbat t bltd t ... t o
r/
l
be p&14 to ooctrectore .anutactur1JI.s A:nfr Urplano
Ub.ited
ccmtraC'\ exoluehe or the
0
et~~1ttee
tor 1.be
Statu .q uoeed aix per c•twa of ibe eaU-tltd coat or tblt
toe ~
"Prort4e4 f'ur1ber, That 1:he tiud tee to btl
pe.J.d tbi oootre.ctor a.a a result or U7 euoh public
worka ooa:tre.ct horea.tter nterM into abal.l not
exceed 6 per oent\111 or the ..ti-ted coat or tbe
contre.ot , excluain ot the toe , •• 4oterwined b:t tM
Secretuy of war
0.
It 1e aubai\tltd tt:at t he uenr to that questicm 4opea48 OD
tba propertJ' or tM tlnHed state. prior to capl.oUoc &nd ecoopt.uoo
bJ the Oonrm:tant.
exceed f:l/,.
It the contract doeo 10 proT1h , tbel tee
~ 1!1~
I t, on t be othor band, tba airpl.a.uo enalnes , under tbe twu
or tbe ccmtreot , r-.in at tbe riek or the ooctre.otor 1111d do not bee~
the prOperty or tU Q:~.Ued Stet.N UD\.U ecoept.ed b:r tbe ~nMDt , 'C:J.
tee~ excHd ~.
a
-·::j
'
TREASURY DEPARTMENT
299
INTER-QFFICE COMM UNICATION
Septeabn 13, 1940
DAn
Secret.ll.r7 MOl'Je.Dt.bau
f'ROM
E. H. Polq , Jr.
Iou uked t.bJ.e 110nd.ng tor a report oa U. requiaiUoa b111
(H. !t. 10339) now pending in eong..Oa1 .
The bill baa passed the House and 11 now on the Senate calendar
where it M.7 be oalled up tor con.sideraUon b7 t.be l&ajoritJ t..eeder
)
•beooTe r tbl: S..te dlapona
or
the utters now before it.
The bill prortdea t.bat tbe Preddent, wbm. be datenai.DoN 1 t
to be in the interett or naUonal defense, ..:r requisitioa an:r aillt&.r7
or naval
equi~nt,
auniUOM, -.cb1nel'7, tools , .aterlala, or auppliea
uecessar;r tor the aanutacture, aervtci ag , or operation
or
auc:b eq,u1p-
•nt or aun1Uons, processed tor export purposes , lf' ibe .xport.&Uoa.
or aucb
equi~Dt.
or almiUOilS baa bHD cSeDJ.ed .
Such arUWa -or be
used b7 the Onited States or MT be 1old wbto IUCb aale ia lD the
public intereat .
'fbe
ae&ei.IJ"e
obYioualy would be Mlptul in connection with the
Vultee airplane trt.asaction.
La..rr7
Bel"D&.l'd will tAlk to SeD&t.or Bartle,' a bout the
&Dd. do wbateTer he can to expedite
I u
Attach:Dent
...Uu.N
ita .arl.7 eoa.sideraUOD.
attaching a cow ot the bill ill 1 U present ton.
r. I ·. f~
1
300
Calendar No. 2209
..s...... H• R• 10339
7&ru CONGH ESS
[Report No. 2097]
IN THE SENATE OF Till: UN JTt; D STATES
i\1.:0tT<rr 23 (lefllslativt day, Al"<lllf'T 0) 1 1940
R~d twi(e and referrtd to the Committee on Military Affaira:
Sr:r•Tuuulllll (lf1!i!'latino day, At~W""'G), 1940
Rfoport.d b;r Mr. Hr.t..t., with amendmenu
( I~
1M put pn.rM 18 kllk)
AN ACT
To authorize the President to rcqui-.ition certain articles and
materials for the use of the Unil ed States, and for other
purposes.
Be it macttd by the Senate anti llOUM of T/.,.._tativu of the ll>titcd
State~
of America in C'on,qrtM a.wrnbltd,.
That whenever the President dcterrnint's thnt it is ncces.'<rt ry
in the interest of national dcJcnso to reqnisition and take
0\'Cr for rhe usc or operation by the l!'nited States or in its
interest any military or nacal equiJ)ment or mnnitioos, or
component parts thereof, or machinery, tools. or Dllllerials
or supplies neoessnry £or the mnnn£Arture.
~n·i('ing,
or oper-
ation therro£, ordered, manllfoclurcd, pr«llrNI, or t}().'fM'ssrd
10 for ezt:;ort p11rpoM&1 thr nporfRtion uf whi('h hl'lll bet_.n dcnitd
301
2
in accordance witb the provisions of section 6 of the Act
approved July 2, 1940 (Public, Numbered 703, Seventy-
sixth Congress), be is hereby uutborizcd and empowered to
re<t~it ion tmd take over for the snid usc or operation by the
Unit~d Stt1tes, or in its interest, any of the foregoing articles
or materiftls, and to sell or othtrwi.u di!pos.e of ar1y 8Uch.
articles or moteri.ols, or any portion thereof, whenever he
shall determine such action W be ·in the 7Jublic interest. Any
money• receiu<d by the Unital Stot., as the proce<ds of ony
10 lUCia MJle or other dispo.rition of any IUch articlu or mau-.
ll
ri<W or any portion thereof 8hall be depruitd to the crtdit
12 of that appropriotion out of which was paUl the cost to
13 the Government of the property tltu• sold or di>pos<d of, and
14. the ~ame &hall immediately become available for the purpo.su
15 namtd in the original appropriation.
16
SEC. 2. Wbene,·er the President shall requisition and
.17 take over any article or material pursuant to the provisions
18 of this Act, the owner thereof sball be paid as compensation
19 Ulerefor such swn as the President shall dctennioe to be fair
20 and just. If any such owner i.s unwilling to accept, as full
21 and complete
oompen...~tion
for such article or 0Uiteria1, the
22 sum so determined by the President., such owner shall be
23 paid 50 per centum of the sum so dctcm1ined by the Prcsi~
24 dent nnd shnll be enti tled Lo sue the United Stales for such
25 additional sum as, when added to the sum already receh•ed
l
0 (
301
by such owner, such owner may consider rair and just com-
pensation for such article or material, in the manner provided by sections 41 (20) and 250, title 28, of the Code
of Laws of tbe United States of America: Provided, That
reoovcry shall be confined to tbe fair market value of sucb
article or materift.l, without any allowance for prospective
...,
•
profits, pUJlitive or other damages.
Sro. 3. The authority granted in this Act shall tcnninatc
June 30, 1942, unless the Congress sba.U otherwise provide.
Passed the House of Representati,•es August 22, 1940.
Attest:
SOUTII TRIMBLE,
Clerk.
·- ---~
..~---~~-A---------------L-~~
p
•
~~EN
-1-j
Q
Calndar No. ZZtl
H. R. 10339
[ Report No. 2097]
AN ACT
To authoriu the P reaidCO:nt to requisition Ctr•
tain articltt and materials for the use of the
United StaleS, and for other purpo88.
AtJGtln 23 (~llll.ltl"e day, A\JIOUf1'G), liHO
RMd twiM aDd ~M'ed to lbe OommlttN Orl liiiiUI'l'
AtraiN
krnN10 i (~ tl« My, Awv.,- 6), tQ.tO
Reporte~Jwlt ba~u
I
l
301
Sep t e~ber
1},
19~0
10 : 00 a . ra .
I
Hello.
Hr. Knudsen .
H.!· .Jr:
Hello.
Wm. s.
Knudsen:
Tnl 11 1.a Bill.
H. M. Jr :
How a r e you?
K:
Sa)' . you :tnow the publ1 c b ill r~o . 7«51' it
a 15 blll i on b ill - 15 bi l l i on approprletlon?
I
I'
r! '
II
~ ~. 0
li
~ ~~
s,w•
CD
H . ~! . Jr:
Operator:
1.,
r1
Thlt 11 Henr y .
I.
H. lL Jr:
Yeah.
X:
Vell , on the a ecor.d "O&ge o r thalt bill are
aectlont~ deal i ng wi th mili t a r y poete and i t
tpeclt le d that a tl:~~:ed t ee pa i d on J)u'bll c
H. !<! .Jr :
Yeah .
X:
~ell , eome ctulp trlea to t ell me t hat an
alrnlane 1 1 a public work and or courae rroe~
rea~lng the bill there doe en 1 t uec to be
any aenee ln that at all - 1 t a ertly deal I
wltb eonatructi\ln contracts and cantone.
H.: .. Jr:
Yuh.
X:
tlov 11 the r e any way I could bo r ro w t hle
legal light or you r a , Mr. Foley , to look
thiJ t one over?
H . fi . Jr:
Sure.
worke cont ractl ehould no t exce ed 6...
4iould you aak him tot
X:
H.~
.Jr:
I ' 11 aek h la to and ttlve ,.ou ar. anawer
wl thin tne hour .
X:
Thanit you very mu ch.
H. H . Jr:
How ' • t hat?
&:
fM.-k 701.1 very cuch.
11 . ~ .Jr:
1111 , I t!"...1nt 701.1 ~u • tVtll !?b U;l t~tr•
vltll Curun.
&:
:H.l:.Jr:
I:
Ct., .7f't.
H. W.Jr:
&:
Wdl , t aot
t~t
Lr..llt.• t~.e plentt.
aot .,,., they e r t
NC~ tt.~ru••
a?t~rt
l:ov ,
and 1
eoze
r.abtr or
t:.• actu.al
t.t.)r t ar.4 ltt • 1 Otal vl U1
•htt trt vorrtln(
tolO. lou.~ to &•t
t~u t
•• lt c»tt al'lnt; .
f . M'.Jr:
•
...
~
r:
~:to~! ~;~~·;;.~~~ ~=~~:!\!! ~:.. :~~::.4°~1
•r• 6 '31f\i' to uk.t toat arrar16 •tntt to t r 1
to Gt t 10111 aort aan. .. ractured, ttt. BJt
U vr 4tal w1 t n t~ttt t!,:) r ta 0 u •• t :-. 17
cos t alono a r. d trt t o 41•~•• or t !lts ln
con te renct , l t!'llftX t:-.. t't th• ben "•7·
H.II.Jr:
ru
&:
I ct;.tl 1n•" to tr.t frttla.tr.l 1tttrr4aJ t ."'.a t
VI Wfl't tr)'11"-& IYtZOJ va1 tO !&Itt tnt dNat'.41
ht.
f ar t:-.a 1!" " ' co-.ald. C!" c"uru , w~t'll
r. •Ytf' Ott t hrOI.&Oh, 701.1 knOW t n.a t, U'ot7
r. t•ur get tnt"OU61\ tU:ln& ar.d I' 4 b•
rr•r lt 1n
H. '-' .Jr:
Rl&M.
1:
But U'
!.
•~
)'11'4;,. 10.
:.u.•
••oh u .•• , , .c1t1c.a!l)',
ti".J.r.k we- ean •et11f7 tn•2.
H.II.Jr:
0. I .
1:
All rl,nt.
~ . M.Jr:
Th.lnk 'JOU .
"'1"1
303
Sep te.ober 13,
12:12 l) . C: .
!i. W.Jr:
19t~
Hello.
o~~rfttor:
Seereury H.Jll co=.lng on .
H.!~.Jr:
Hello.
Y.r. Hull ' e
Secretary:
He' 1 co1111ng rlght on, llr.
Cordell
Hull:
Hello , Henrr.
H.! .Jr:
Hello, . cordell.
H:
;.~:~~~ ~~:•B~~~~~"L~~~!d~a!n~~~:ned
Pre1ldent about thole rlt'lea and round1 ot
that were tu1)poaee to be talked
abou t ln connection ,.,lth theae batu end
de1 troyer1 .
~un1t1on
t o
H.:.1.Jr:
'.fe\1 ,
H:
"•'ell , here ' A whnt hA'J?ened , you eee.
The
11ay before I vent to Hot SQrlnge on tht 4tn
ot Auera t the Brl t111l Ambaua\!or came ln and
arter talkLng toot t o t he Preddent brought
up wlth IU tb.e ~ettroyer - he 111ent1oned
dee troyera on11 and bate a, and I the n , the
nex t eornlr.e, vent to t h e Sorl nga . •iell ,
vhen I ce•e back troe the Surlnga t wo weekt
later the Prealdent an\1 St1e1on and 'lellet
al l ve:1t ott, and the1 were the only one a
who had talked up ttla - wno knew about
theee other tclngt .
H.M . Jr:
I see .
H:
I hadn't heard anything 'but t he au troyert
mentioned and I eaw some reference l n one
cable ot t he Pretlden t' • that lt vould 'be
poallble or n1lght be potalble t o get Congreu
t o agre e- to tell then tur:')lue torpedo boats that 20 thllt hAd been held lllegDl tranttPr.
1
1(
70U
dOn 1 t
kMOV 1
WhO dOt I.
304
- 2 So I wa1 t old tl"..a t or cour&e we couldn 't
deal With the:a and bru1he"- ti".et al1de ...
;~aid no att en tion to tMt utt~r t hinki ng
t hey were all included 1r 1n7 were end I
dl~n • t Mve any or their later data and
they were ell away d uring the t1 ve or elx
daye end I clo eed thll ma tter up.
H• •• Jr:
-'ell ,
H:
I made it awfully clear t o Loth ian that I
vae t ola tha t 1 t ._.,, Ulegal t o traneter
the u o ther t h lrg11 t~nd that there• a no thing
l n ey tran1t er proootal exce pt the dutroye r e.
H. U.Jr:
'II' ell, you aee , I ••• aw1y tor two we eke
11nd I don ' t }!.now. They put t hla o r euure
on me and then I go t t hlt letter tro111 Lothian
ln which he aaid tne Preal"ent .. id he ah.ould
taJte thle t hlng uo with me, teea:.a11 I t old
Lothian tnet 1 a al l v ery n ice, but unleu
Mr . Hull wlll adv1ae 1111 th8t th11 11 part
of t he dea l, there ' • nothing that I can do .
Yo u eee?
'JOU
aee ,
~erf' 1 1 •••••
H:
Ye e .
H.H.Jr:
And then, 1 eea n , becauu I knew about the
~ett royer e , I k new t hat these 21 11 ttle boa te
were llleti•l. Aa a utter or fact, you ue,
LothiBn would keep aaylng he'• l n euoh tn
ee~be rrauing poll tlon be cause he promlled
all or t hlt etutr - well , I underttand that
StliDtOn nov ha e t o l d h l • he ' • go i ng to g ive
t he:a the 2~ , 000 rl flet and alto the fi ve
boiD'be ra, 10 lf they'•• so t t r..at, t hey ' ve got
a bout everytning that. they were oroaiaed.
H:
Yea, there' 1 so31e round a or ucun1 u on vh-lch
voul4r: 1 t Rmount to much.
H. M.Jr:
tlo , I don 't t hink t he t that - I never hea rd
that aentlon ed .
H:
iiell , I cen't tell - t ht)' keep ta lk106 :rou
know .
305
- 3K. M. Jr:
·A ell, doun 1 t 1 t rea lly then get down
H:
·~ell ,
thltt t he only ~•r•on who ltnowe 11 Mr. Roouvelt1
P.: . :(.J'r:
Ch.
H:
Tba t vee wh1le 1 wae avay . Now SU&ne r
41~n't underatand that we were obl1gat1ng
ourtelvea to eell theee but t hat t he W•r
Depertm.en t and the Preeldtn t - among tteiD were Ju•t eeelng what we could ull .
H.l4.Jr :
I ell, why doo• t tither you or I r altt 1 t at
Ceb1net7
l
I
I tl"-l.n£ they were talk1ne; - he ar.d
St1aeor.. St1aaon clat.e to ha•e talked
wl th tr.e F-reel~ent and the:a.
H:
liell , I d 14n 1 t kno w that .
Well , 1! 1 t ' a a QUtltlon or whether we
t to do it prl•ately
ouahtn•
H. h . Jr :
I set you.
H:
Yeah . Anyhow the A.'II~Uador aeked me t o
call you . .Jell , I didn' t know what the
Pre tlder. t had ta14 to you, you know.
H.l<.Jr:
otlell, all he jult. ea14 it , get what JOU
can Henry . He h.a1n' t tpecltled, bt 11apl7
tald , Henr y, e.et wt-.at 10u car. t or tbea .
R:
Now , I twd •otiellet to cell the Pret14ent
7eaterday and go over the way thla haopened
whlla he vat eway anll t o 117 that or couru
we'd be glad to ue hllll h1ve enythlng 4ont
that was teae1.blt thAt would carry out eny
plane ot hla tMt I '1dn 1 t itnow a'bout, and
tn.at wa1 w!lat happent~. ;-tow, here'• IOOther
l lttlt thlr:g, Henry, 1.f you ' ll aake a no te
ot 1t ar..d M'fe your fellow• lo:>k lnto 1t.
R.k.Jr:
'tel , and wh~n you're tl'lrough 1 h8vt •o•etnlng
1 1 4 llkt to aay.
R:
I a ee .
'ttl. Henry, thue Teu 1 011 people cla1•
the t the Me:x:loan• 1rt 'or1ng1ng oll ln here
Now, 1 don't know tor
on a dWDplng ba111.
~
303
I
cert&ln whether our tellowe are look i ng
at the clou tecMlcal c3ullo1ng "Orov111ona
or whet!ler they are contlderlng 1 t ln a
11 ttle broader appllcatl?n , 'o:.at they are
bringing 1 t ln here and the Me:zlcane think
1 t• • that cont1autec1 oll ..... .
H.H.Jr:
H:
j
I
..... tMt'e being brou6ht in, and undertelling them a vay yonder. They are
81klng your CuatoJIIt :~eople to look into
the tn t1-dump1ng o r eny other orov111.on
that you 've got there.
H. k .Jr:
I ' 11 put 1: right uo to •1 boys ri gh t away .
H:
That - what 11 t hat other provlal on abou t
heeding ott l moorte?
•
1
H.li.Jr:
Countervail i ng dutlea.
H:
Yeah. Have them look into it and ne l t
they cen 't atop lt in tome way, that 11 ,
H.L.Jr:
I'll have
H:
'l'h8nk you , Her.ry.
utter.
H.J.t . Jr:
-'Ill, I vaa vrong Vhen I told you t ha t
Berle waa r r ownl ng on our g1 v1ng ;coney to
the French E:Dbaaalu 1n Sout h America.
l we. a m1xed up. He 1 1 been in ravor or 1 t.
eee 1! they 've got ground.
. H:
the:~
look i n to it.
~~ov ,
go ahead vlth your
:cu. Well, I wet un"-er th e la~preu1on that
at the Cabi net the Pru1dent as reed tor the11
to hAve 1t tor thl1 hr=1aphere but not tor
the balance or the world .
H. !(. Jr:
f .)
)
~o .
he wrote on t bll letter which I gave hla
a queat1on :~ark on South A:urlca .
He aald
look ir.to it tur'Z her. But I'm going t o brlr.g
1 t uu ln Cabinet beeau~e I • ve got more
1nroi-mat1on now on wh.&t they want.
3iJ7
- 5 -
1
f .)
J
aee .
H:
I
H . !~ . Jr:
An4 I tl'\ou~ht I 1 d. bring it u-p .
H:
I1 there any t hlng I 1hould v or k up on?
H. I' ,Jr:
illl , Jult hov 70u t ed About le tti ng the11
ha'ft thi1 money in Bout h America on a •on t nto-sonth baa1 1.
1!:
Doet i t amoun t t o m.uch?
H. H . Jr :
I think - I don ' t kno w, They ' r e g iv ing
the fi gur es - I t hink i t • 1 a couol e ot
million dol lar t .
H:
I eee.
H. X . Jr:
Sut I haven • t ann the t1gur e1 yetj t he)'
Jult go t them.
H:
All r ight, He nr,..
H. H. Jr :
ThAnk you .
lU
It ought n ' t to be tha t .uch.
I ' • ve r y much obl i ged .
TREASURY DEPARTWENT
--
.
"''TT"ice or \.he S.crnary
308
Technical A. .ht.ant to the Secretary
TO
SeeretaT7 Horge1 TO :
Mr. Cochran
B7 appo1ntment the ~
Ber• e .Upbud,
the nwl.7 qpoillh·4 Jinu
Lh'eaa7 pbond . . d 1 o 1 clock t.bd
Cochran ne
pronnt o Kr o J.l!'ha.M. b&d Secreta17 Bull d . . i rd Ulat Dr. leis
1\.h
the techDie.). otficere of the i're obteic for bl.- ticuru wlth r ..pect to
eta 1D. tbla
~r' CoUDtr'J'.
the locetiOD of P reach COld, for this
•
afternoon' • Ca.blaat MaaU.aco I han
J
l'ba S.crot&r7 creete. appeD4d INch bloNatloa to t ha aUacbH 1 that he UAderatud.a t hat hla OVD podt : . ..,ruclu.a.
:bt up 1Jr:Md.1atal.7 the question of tJ
stated tbat
his Oonn=ant was ~tl
~~y
lC J'ranc:b fw34s.
Vhen the Secretar:r aU::fld l
..........~
.pb&M r eplled
1
atfi naa\.1.,..17 o 1'he Secret
.
~
·
.s attltu.da
tA
fr011 hit COl!IYeraatlona vlt
o s narAl reara
\'
and ritb whoa h e could tal
er-ato.17 could
, ,!peak &I fraJlkl7 with him.
FrOII: W:R. COCHRAN
tt&tlQC' that
t h e Jrencb otficlall7 welc
nch atte\.t that
the hench could tell the -en:
. - ,_ ... _,, •• .,. • •1.1-'·"esno.. tucn atse\.t, that it wt
blpouible to tr.~U~.aler the:~ becauu of t he J.meric.n. cont rol . 'l'be l"ren.cb welc011M
tbh :pr otection. O:n the other han4 thq were DOt reconciled to a contr ol which
ap:proaehed strucuJ.etlono
,
1
When the Secret.,.,. aand for an ~luail on of thh r~k. Alpbud referred
to t he problcu eDcO'ol!l.terad. b7 h1a in :Mkiat: t'UD4a aq.Uabla for l"reaeh 4lp l011Attc
the tril1ta4 Stat . . , L&Un .lzlerica and other pArla of the
worl4. , wb.i ch . .uer be stre ued. as urt;:et. !be Sacret,J.l'J' stated t bat 1t was his
UD4nst.andin.c tbat t he ~---.I.J7 was alr •d.J tak::lac care of the question or ~ente
t o l"reneh 4ipl011Atle end consular offie.r1 in the United Stat... Kr. Coebra.n eonfin:ad t bot the !'reach r eque1t , plus q ad41Uonal ten p ercent, totalin.c $1 , 100, 000
p ar 7t&r for thh purpose had been atJJ>rOYed.
and eon.wl.N- officers b
Ur • ..Upband. aekncwled&ed t.bat &I a t eehDician be could etate that the p l.u on
Yhlch he bad been world~~& with 'l'roe.tur:r uperts would f\l.llction l neofar ae :rr.a.eh
oftleer a h. the United Statea vera concerned . PoUt1eflll7, hovenr , be was not
IW'e tM.t b.h OoYern=ent could acknovl ede• eu.eh euperrldon ot their 4iploaae.Uo
upendttur... He said thlt vas a question of eonr e lpt7, and that hil .Aab&s...S.or
bad . .en SeeratN"Y Hull on tbh pol.nt t wo 4.a¥• aao .
30;)
S.creta17 Korgenthau.
P'ftO M
. .r
J
1
Mr. Cochran
lb" ~1Dt•ent the Secreta17 reed..a at 10:00 thh aoruiuc Mr. BerYe .UJ~hud.,
the Dft''b OPOlahd ftna.uci&l Counedor ot the l'ruch •be.aq. Nr. Coehraa wu
pre. .At. Mr • .U.pbu4 had be;n la Yaahbctoa tinea !\I.e~ vorkiA& wlth tb.e t ltChDical oftlcere of t .h e 'l'ree.SU%7 on qu.eUoae of coll\rol ot heDCh ,,.,h ill thh
co=tt'J'.
!he hcretarr er..tecl Mr. .UpbaDd. cor4lall.7. !he laner replied. tbat 1M uder.tub that hh OWD pos1Uon 1D \hh COW!lt!T h Wtical.t. He bro'QCbt ap t.De41atel.7 the q\lltUon of the !ToaiiW7' 1 control of !reach auets. He etah4 Uat
b.h OonrDaeD.t vae lfl~PatbeUc vlth the ! r QIJQJ'J' 1 1 purpcue in tr. .dDC l'ren.ch tuz.:le.
n. the SecretUT a.ked. b..U l t tbh vu tbe otttcl.al J'r-eDeh Yih', .Upbaa4 replh4
affl:raaUntT. 1'he Seeret~ etate4 that he ba4 aot b. .ft wre of thh aU.lh4a
trOll hh con•.raatloDe wlth Mr', Ler07-~ulhu., wbOII he ha4 bow for eenral 7tare
W with wboa he could talk quite frul:17, .UphAM hC)J)ed that the SecretaJT coul4
...)peale ae frukl.l' with hill. .Uph&Dd clarlt1M the a'boYe etatau..t b7 etatlq: that
the l'reDCh otflclall7 velccoe4 the ld... of our .o coDtrolliq the J'rench ....tt that
the heDch coul4 tell the Genae.ns. 1t the latter requested web a t ..h, t b&t ti w.e
illpouibh to traaater ihto b.cause or the .&llertcaa ooDtrol. '!he :runch v~c011M
tbh prohetlon. On the other baA4 tbt::r were DOi. reeaacile4 to a control which
.pproached etr&DCQlation.
When the S.Uet&r'J" allked. for u uplaA&UoD ot i.hh r-.rlt, .Alpbud retene4
to the pro'bl•s encountered b7 b1.a 1D .ai:1ac f'Ud.t aftila'ble for hueh 41plo.Uo
u4 coDnlN otflcere b the u..tted. Stat... t.UD Merica aD4 other parts fd the
worl4 , 'lllhtch aatter he .treued. •• ve-t. !he Seeret&J"7 sta ted. that 1t vat hh
Wl4eutN41JIC tbat the !r•r.IJ'7 vaa alrea47 bld.Q&: cue of the flU.stioD fd pqweh
to J'ruch 41plou.Uc and coDsular otficere h the Ua1te4 States. Mt. CochraD eonfinK that t he heneh request, pl1le aa a441Uoaal ten parcent, totaUQC $1,100,000
per 7aar for thh purpoae bad been a;:.proTe4.
l(r. JJ.pba.Dd a.ck:DOWled&'ed that at a techn1c1aA he coul4 ttate that the plan on
vbloh be ha4 been working with !'reeiW"7 uperte vould fu.nct1on l.ntof'ar •• heDOh
officers 1n the Un1te4 Statet vera concerned. . Pol1Ucall7 , boV'tTer, be vae DOt
Nre that hie Oonrnaent coul4 aeb.ovled.p eu.ch .uperrldon of their 41plou.tlo
apeDdlturee. Re 1&14 tbh v as a flU.tUon of to.,..retcDt7, and tbat hie Jabael&llor
bad ..en S~et&r7 HI1U on t.bh polD.t two 4&7• aco.
S.cretUT Morcentbau. e.pba.ehe4 t o .UpbaDA that the tr..W%'7 • • baDillAc tbe
'
~~e:'o:r~~::::~~.*: ~=:~ !:f:: !:.!h::beta:!o~Ye4S1:!•t~rc::::~.
f -a. a44e4 that Hr.
RuU bad Just spokn with k1a on the t~epboM Wore Mr • .Upbud.
lJ
~
- 2-
etere4, &D4 b.ed referred. to the hbch .&..batsa4or'e Titlt, lD U.IIWr' to
Kr • .Upband' • lDqul17 as to whether the t'r. .WI'J' voul4 now be w1111J:t.c to 'be aou
eeneroue OD the aat h r of controlll~~& JreDch offl olal. ezpen41tur 11 , t ollowUs t hti
reprueatat1ou which the l"rench .&abaua4or had. ud.e to S.Or eiUT Bal.l, u4
S.crttfll'7 Hull'• conTtuaiion Yith S.cretar: Norcnthau. the l aUe replhd.. that
Secnti!U7 Rllll had. ctnn b.1a no adTice ill t hh 41r~tlon .
Secre\.ar7 Morcuthau apio atah4 that b. wa.e alWtl't pha..a hiaeelt t o 4heu.ee, or baTe • •bert of hie etatt di~~CUt, Yitb Jtro. ~plwl4 thfl techDieal optraUna of the control beofa.r •• h&Dee h coJaeerned., llu.t nat the pollUcal. ucl•
v<N14 ban to be takt:D up vitb the Departunt of Siah. !be S~ter.tal7 of tU
! tCI61\U'7 lookM to the S.ertt&r7 of State for a4rlce aD4 io the Pr u14ent tor
1utruct1one 01:1 .uch u.thre.
j
I
It should. 'N a44.e4 that 1D the co\lr'.. of the coanuaUon S.crttat7 Xorc111.tbau
remarked that 1t had 'btP wcsute4. b IO.IH quarhu that the J'rnch uUllu the
_.'014 vbieh they han 111 Martblque for pqaenh web •• t ho•• UDder 4hCQ..loa vttb
Jlr • .Uph&ad. '!'be Secret&r7 t hoUf:bt t hat there wtre between $21io, OOO ,000 u4
$250 ,000,000 wor th of l'rench cold l n NarUDiq'IW. .Uphalld wae bclbed to doubt
the praeUeabUU7 ot thh ~UQ:uUon.
b thh connection collftctenUal Britleh tli\D'.. reprdlJI.c the locatlott of
Prach cold 1tl a1d-J'ul7
follow•:
nr• ..
,,
In the tJatiN Sh.ha
b Cuo4&
lD LoD40il
In NartiD.tque
Other lrtuch pl4
!otal
·'
~~
$507 ollllo•
376 .UllOil
210 aUlloo
2~ allltOD
512 alllloft
$1,920 a1111oa
(Bu de4 b7 Xr. PiaMd ot tM lrhhh •'bu•:r to kr.
Cochran 1a the h ...WJT ai ~ :)0 :p.•., Sept. .ber 13, 191*0,)
T
$7, 000 ,000 worth ot plt \o abe lew York office ot the
BUlk ot Merica..
I t 1a UA11bl7 that. \b e l&Uer will
aaoun\ ot 1Us:p1c1on attach...
)
I
!be7 •••• to au~:peet that
the 11>14 'beloap to tb.e receo.U~ unue4 !alUc S\a t ..
u4 tlle Jt4eral
a. ..rn
It&Dk are ..S.t \o 'be aak1a&;
lanat.lpUou ..
•
b;r the 01••• latic:uul Bartk.
.U\orc aq han prhate
reaao.u tor ut q:proaehiAc t.be laUer Baak oa t.bia
occaa1oa ,
(IaH1alo4) G.B.S.P.
1
l rUhh labaa•7 ,
12th
.
s.:pt..ber
19~ •
TREASURY DEPARTMENT
r' ~
I
Seenta ry Uo rpnt.bau
Mr. Cochran
none 1u Va.lhiacto.D. t.hh week Mr • .Upbud., \he nevl7 *PJIOhl."d Fiu.DClal.
Couuelor of tbe l'rench kbaea7, hae pre..nted 4ehUed li&Ur,.. MUiDC tort.b t.ha
dDU&l requireaenh of the lrtaeh Jlaban7 h. W'alhlD,Cto.a. an4 the 7rencb Conwlatee
.J
I
•
)
1D t.he Ullited States, 1nclu41Ds Manila, P. I,, and San J'uan, Pu..rio Rioo. 'lhaee
t1curu for one )'etLI' to talfhH: 0.53, 000 . Oa h}Jt. .ber 11 the !rea1Ur7 Dtpartud
1uue4. a lienee for the Vt
a wal of $195 , 000 , llll1cb h the eqtd"Yal.Ut of tvo
ao11.\b.e calc:ul&t ed a t the abon t'icure plua a l~ hcreaee. !hat h, w b.cr....t
thl J'rea.ch offtebl. uUaah b7 1~. aA4 a re DOW t.t1nc care of two aoDUae nq,'G.ir...a t e, i . e. • S.p tnber aa4 Oetober, with one licaue, Hereafter \he e;rwt• will be
oo a a:~athl7 ba de , our renewal bel.Q& a&da on tb.e 15th of the p recd.iQC Math pro'Yi4t4 t.here h ao chat~£t; b tb.a dtuaUon.
Xr. JJ.pbazld. .ut.Ut-.4 a e.-,.ra.ta ..u ...t e of UZill&l. 41ebw'a•e.o.te tor :rre.a. cb
Uploaatlc a.a.d coniUlar JM~ Ih iD C..a.tral and South J.Dtr1ca. !haea ..uaatu appro:d-'!ht $1, ~00 , 000. but 4.U. not include Br•dl. c.lculaUnc upt D••• to r :Brasil on the
~i~~; ,:•tll~::e.!o~0~=:A!!~~::·r!~'~•~~.:•5~~ f:ja{~,I~va
$2 ,640 ,000.
The .,nth.l7 tlcur• would. thn bt $220 ,000.
11 tUll peDd.!D.g .
,
I
' J _)
J.w Hc•tioD. t or l.&t:iD J.Mrica
313
~1),194()
••
!ot
The Secretary
Froa :
:wr.
Young
Subject:
I
War !.!'&tuial on Ord.c for Swedi.ah Oo'Y~
3xclud•• of Aireratt, l.ircratt. Bb.;ine• n
J.1rcratt .Lcceasoriu.
With raapeet t.o tbe to~ iteas, export lle~M
ba.ve either been r8YOhd. or retu1ed 111tb the e:r.eepUOD at
7, 250,000 9 an. eart.rid.;:ea.
1.
2.
w...on 9 ... autoa&t1c rifies
(not usod by U. S • .irtoy) .
4, 300 Sr:ait.h and
12, ?50,000 9 m . cart.ridao• (l, ?SO, OOO cart.ridpe
now raad.T tor abipaen.t; production at the rat. of
1 , 000, 000 • week) .
J.
2 , 050,000 . 4S calibre cart.rid8es (read.¥ for ahip-
Mllt; t.o ~used. tor S20 ~on~~
bou:lht b)" an<! Mll•orod l.ut Fobruar7).
4.
1 1 000 unloaded depth Chari8S (DOt. the lat.eat Uo S •
.sa...,. desisn).
s.
1,010 detonator 1\laea for clepth cbar&ea (bou&bt
~ surplUII atooO and. olaeafMI. u obaolet.e; aport
license not required.
-:f!l.
r-
314
)
T H E WH ITE H OUSE
WAS H IN GTON
Septabc.r 11, 1940
)
I
ICY dear Mr. Sec:Ht.at7 :
TM President direete tt.t. I tnn..S.t
to yov. , tor 7\JW' lnforaa tioo and •uidance ~ the
a t t.cbed COP7 of 'tbe .eent.e he hu • .,t to the
Ra&peeU'ully youn ,
)
The Honorable ,
The Secretary ot tbe Tre£ sury1
lifaahingt.on , D. C.
U)JI)I:~
S.pt.M~Mr 13, 1940
::~~~~,:.~~!!!,! ~:...~~11Ud
au.xn;Al ot u. Pr. .tlieat ' • 1•......., - . M
*""
of ~t~tpr-.•ouu .., .. .!!nre.e oo..re :
to a•ol4 p,._t r.u-. pu.~toulon.
"
t
110 ponto.,
" ' W~tU '~
b u .. S.oe.tt~ or tiM!
tiWNfoN btl ueret•4
I oo:~td.tr t~• boO doe.-.~r.u w be of - b t.port44oe u
to J .. tlf)' tq aii4Jn& uea to tbt . - . r a of U• S.oe.u ..s u..
liO'aN or a.P"a•ot.tott•• u • &1:.\""r of tatonoutoa. ':'!Ill n1111•
or tb•• poUc:t•• >1114 Ftreirlt·• to u.e co•.. ~.~r.t, to tadu.t17 ,
~lo\llt..rw, labor L"'4 \0 t.e eow:ttl')', . .ouon.allJ' aa4 •• a 11bolt,
•Ul N ••o.at o.o.c:e.
,.. cen.. ral princlpl. . .>01'tl"niDC t!'w ltt\1111 of 4ttaaM
ooau..cu follCM:
"The eaMnc• Jf the Pre~dn. .a Orol!l'M Ia the pttlttC
ot aa adtqllll~ wp;>lJ ot naterl•l• of tt. Pf'Optr qll&lHJ 111
tbe •borttot apace or U•• po.Jtbllo . C<~AJ14eraUoa• of prtoa
elOM IU'e l:.l.:tlJ ~.,ot"t&at, b\1\ lo. \Jill ..-r& IICJ' an 110\
COYtraJ~.
h
•1 . SpM>d or ntll'f<'I'T of all 1~ oa tbt O.ttua ~
,..,..ntlt.l . TtU: - . :
"')
natt orcku -.o..l4 M pl.e.d Ia -.ell • MAIIItr
. . to laa'-"' t •.- 110 t ttflot•:o.t _. of . . cb par-
uclllar tactUt7
:-r.. tw
potnt of
n ..
or tiM!
PI'CIIi.~•••*olt;
") Ttat pro!"r oon•ldtnU• ~U M ,.tnoa to
oont.rtbut..=Jry ID!l\11\rltl, ~~ •• Uat Meb.l• &ool
tll4oatry, tqo u·old CNttlA.f uodtrl,Jlll& tlottlt..,.ekl;
"o)
tt;at onQOf 4.,111' ry 4 • \f't 1t.rt t1~t4 , UIJI,li'IUiot
be ahu ttat u .. ,. wUl be .,., 111 tb.e INI'P11er.
•2, PTO~r q111Ut)' 11 alto or rrt• Ulporhflot. H h
tberatortr 1110..•-..rJ' to dd· rwlhl" tirl\ of tll wbl tbolr or act tbl
1\lllplhr Olilll ~u tbl qll&llt~· hl''li,.....llU, •• 1ptojJted. Tfo6N
•houl4 M a wtU1~•• 011 tbo P'U'' or botll t bt il.l-.:1 aad
Ofl U• ODe Mlul, -s or tbo. n;:rU'r 011 tlw other, to -.ISJu&t
. ,. .tfta.t~ 04 a COO}"OntU .. bUll ta ol"'>~l' diU noll lptc:lti•
... uoaa M1 a;:oo •• aetor • • po~:tnlll to - tlllC _...,..,tal
I~V'4• . .n. •t U111 IIIIo.&
Mf11Ua.£ U• riULU'J' Nqlllt,..-
*"'•
...,,.
tl..-
"'· ntoc, "hil'" aot tM -1 _ l .. r uo~:, u or ""~
n ... tac lllcalttoa. - . ,,.. "''T .rrort _ , ""_... w •etON
• ta1r ,..,.,.. ~· .,.._.. t • r ...,.ut<>~~, _.,. cU•r u.s ....
at ..,t..,.U.'I.Nt:.O• of' proto r .,., ~11 11'\QI'I •
316
-·"&)
~u~':-~ o-~:.r.::t~t or rrouc:un(
ho~tnc C(lno;li LlOM -.x\1
'"b)
::;I:;.!.~lth
"'D)
Conai<k.RUon to JlOIIIibl• )(f-MUI•n produc:lion
1n o""-'r to ck:>v.,taU \.h<.1 -.1l1Wry t ro"r.. lnt.o
pr 3Juct1on f( r c1v111M Nqu.ll'\oDC:nU . otrk U...:I. prochct1 :.~ •M U:i alto had LO lowe r
C'Y-rh &4 -'l1 CH,~\Wiotl,t t.o 1.- r ror1c~ tor
brtth \.loa C.oN~ n and t.M G"¥9'• mn. nt. ,
•s.
/Utt
ator.
..~t.• o..na...!..rat • ...n L IW'- ~ ~""" ~,.,
cOQPl!-.ne<~ - ,;"' tM -'f"Wipl., o;fl Ulb ~bJ.!et.
c~w
\bl C:s:.ni i.xa ln l~ rd ... ,f l~&,.,.t
r.t. -..ns
tr1
1UWd
Jlu.,
otw:d.eob&Uo~oe
J
"""'•
tkJ.!o~ .-;..o 'l"'oY.ic cJI.c..:atr..u
n e>f No.rt 1h0uld t..
•1')i:iW 1 bo\.b u to J-l'QCIL"'\.CCI!.,t o.'•t.rtcu nd at to Uldll8trla.l
.. cuc:.:a:swithtft ·'V a.cr• j!I"'C'\\I'CIII:'It tht.M.ct. a . - tor
uch d...c Mrali,.tJ.on ""t...t. .. t.o f;.ct.c.r-. or -.111\.oJT •trw.Lc:r,
u wdl u ..'1'\,!lch.-..; con,~ eU)n U'llo.t. ... 111 llllw ao.n proO.w:: t.ion ,
"6.
'"7, Financial rot.:.on:~lb!.liV ,r \.bo h. Uu aMIWi bt
;.bll1l1 tu post. a ~nd ~~ne-t n c.auarll,)r d11.,01o
·.altt xht t~t tht
T'•.. orv'llo~i' ty
1~o~~lbr will b.. o.bl to COilt.lr.t:! ln b.ltU...n, at l·atl lOI'IC
ontu,ch t.o o.t~opl '-" ~-h c.~lt.r~"t "'"'-·~hcl r:ll¥ . Pur\.h.:r1 an
abill\;1' t G rin.:.nc l1Ju lt t.l.l'tv.-t· >riv..t a'v.rcn Mould
t..Jt~ P" r~r.nc.. , .r 1\o..c.t.. ~'-7 r r .c..ril11: .IILY.rT~:Jr.;nt. aid.
~r...1,
•!.
of t.MI probl•.
•a.
-::... ~~,v •ioh:..c o! c Jf\. Ua:'L or t...,.,pctNt.lon
t.. ~ •.•.no a~u • t.o •U'GftO•lnf
b.J .a.:
t..ct.uu ... at. 'llll
bellit.iu.
-) . D'.o consU rat.:~. n ~ .:,..d. bG 1,y.;n \.0 tJw adtql.i..CJ'
&f p!lll«r £-.c:iliti , ~c..l rlf .,,.... r~~o""J..- _.. ~llllc
v.tUl\1 a .
•w . ..
,_.e~~-r:o.l 'l<r\:t-r •.c -"'wl..S o. orL•• ~
rl neoo w1.U:. s- ~1.4 ~.. t• nJ.:. J"do'r. .
u
•11 . T!.o lll:r.U f'-.all-rl.lll'ci '¥or v.. 111'1-)].lc r
J!(or'Loa<ol, ~ ~ ..__, r.S cu , t 11'·~.,....,\.al , ~ N
•Lc&olnc Of hon<.JL lltld $ ...-.c.r- .S.tlN to CoOport•t•
••ut. ~• co~ll~d £or, ..nd
.. ,., 111c1 !Oo~.vy •n
rvt\IC'-"'
t.r- b.ortrc
11 ~
lilk:>Ul4 twlt<1 Ul1
n tt.,
ri-"'a hw.t.. l! "'t h<lr
wiU.o..t. prortt r noo.; t. ~.~~.,.,.,.
ll>an ..t.t...t\r•t.l1\t: t.) llhtrt All tliiC~L rt~.J lOth Chn.,...nt;
and to to.uTil"h a ccrn:ct. at..a.to.ono '" •• to .la cap.c~lt.t 1111\d hit
·~ rhrora .
...-C\1
l"u
Tl.u aupp).h r'.s cono. r&l tt.a -dine Anll ra"""t.a.Uon
t!f,on ( ..1 dilt.inct. tra. hb nn.nc:i:U
M illd..x .,r NC' qu:a.lltlc t.i~•·
\Ot...bl· lPJ.;lnt.S.
N.tll'll;) b
•u, 1'1.., Corulsaion .. cQ~- u ... t. c-:-uu• blddlnf
tM b.tt ...r ~·"-'"~ .n c rUn~· o r l~tr'7 and
a11rc
M~~'l' r, 1L la ~ .1 "'-~llt:>l.l' \.0
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4ht.\ll"'ba.allo to pro.tu.eU.oo ot .,.nll·o tor t.'\a
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, .. ourooo or ov1olilt.lln, -....nufMt.~rln &11111 _,. f'O'"r.
"TI.h prou,.. co~ bo ~&oiiCI ill tho P~obUo hU"'"u o 'f(ll\lolo t o rod <.~oo un.c...ploJMnt ulod. oth.-rwl.,
l tr<ncthon th.. h~l'l tlbor or ow n.tlon. Jo tho
pro , .. tloa, Ia
ld. oUoa or pl..r.t l oc: .at.low t or thot hn.or..ot or sw.tbul dct u , .;rYt.\ -""'ct·t ..aot.
M h. a to thh t~tor.
•ta orca.r t'.a• agr rt ... lolJII »a.arl.,.._4 ht.r-...,
M obl.orb.-4 b t.t.< ct~r.ro *"'o ,..,.. , oll r .-.-..u"
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to ..,,.k Ia exe•' • or tt.1o ll.ollr1 , or~.,.. •rk
lo nqulNd oa :i&t.!Olrtl..ay , ~~..... or J,oll'ol" , O'l'•rl'lhoul4 M pt.ld lo ucor~L.o".c: ' wl~h tho loul r oo~llo4
prMt.looo .
-•••or:t
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lho>tl4 aomrl:r wtt.h hdaral lt.<fr.t\ltary provlllont o rtoot.•
1nr. l1bor whcrev(lr ~uch f'rO'fUiona Dn •rfU~obh . ihh
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1110 '" ctlllf:IU.tnoc 4tl •ht.. Wid lood nuut<>t otrootla1, labor r o lt.tifor.a , houri ot work, w.o•;.l, ..or-.a••
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o
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318
.
- pressing 11r¢Wnoot for m:linta.inins indus trial
:~oJ'eguarda in tJ e pre.ent Olllers:oncy 1a thnt
they a.etuo.lly con ~r1 but. to oftic iency. '"
FRANXLDf D. ROOSEVELr
THE WHITE HOOSE,
0
September l:S . 1940.
3 l9
Seou:~~ber
10:05 a . m.
H. : .. Jr:
Hello.
Oi)era· ?r:
Seereterr Hull 11 e?mlns
13, 194o
o~ .
Cordell
H.all:
Hdlo , Henr r .
H ••. • Jr:
Hrllo, Cordell.
H:
Tne French Ambauador "''' i n her e 13.! )'
before yester day 1 thlnk 1 t was and he wa1
">le.eC:lng awfully tor a good wo r d t o you
about e:'lough .a.oney to -oay their contulor
er.d c11ploc:et1e aenlee ln other oar t1 ••
well •• ln t nla A:lerlCJJn hellli'Ohe r e . 1
told hl2 tlt.e. t that lt&l a ~~atter nandle4
entirely by :;~u tolk.1 over there an4 1
coult:~': s-et hlg to utl:~ate the a.moun t
to ue whether 1 t uoun ted to &n)'tblng aueh
or not . Htlve rou oot tn:r l:m?r eulon• on l t?
H. J.•• Jr :
No , except that t h e Prelldent s eemed t o be
very doubtful about 1 t flnd Serle hal told
tt.at t;he State DepAr tcent d i dn ' t vent
us to mo ve on 1 t ye t. Uov I don 1 t kr.ow
'Whether Serle "'•• re";)Ortlng co r rectly but
he -dvlaed ue to do nothlne; tor the ne7t
dt:t or tvo.
Ul
H:
Now , I've wondered why they couldn 't use
tome ot t~t t;Old they ' ve got over there at
Da.kar.
H. LJr:
Or at Hartlnlqu e.
H:
Tna t ' e French gold
H • •• Jr:
In t he l!artinlque?
H:
""'·(j, J.l..artlr.lq'.Je
H.!-' .Jr:
oihy , that' £ t he oueat1on thDt I o.eked.
11 French I)Old.
H:
'.iM t d i d he uy?
H. I'.Jr:
'I ell , 1 haven • t seen hlm , but I mean when
- 2 they CIUI:P to me t hrough the - I dldn ' t •••
t he t ellov - the French F1na nc1el Attache
asked Merle Cochran. I aalO , well , v~
Cl'ln ' t they uu 10111e ot that gol d down ln
f-l.tr tl nl que?
H:
!~ow t hey ola lm that
Yeeh .
the Belglena,
a nd Dutch eno o t h era have an l nter ea t ln
t he t gold over th.tre on the A!rlcan Co e at.
H. l.:.Jr:
on.
H:
200 or }00 1111111on dollar a hn' t 1 t o•er
H. fi . Jr:
But there' 1 abou t 250 • 1111on at Mart1n1que
which 11 all t hel ra.
'Jell , that' a ne~• to ••·
there?
:)
H:
All French.
H. l:.Jr:
All French.
H:
Yes, well they ' re lla'ble to try to al l p that
out , reckon , on a ve e ael?
H. M.Jr;
no , they can 't do lt.
H:
They can't do t hl. t.
H. H. Jr:
::o.
H:
I see .
H.:.• Jr:
Bu t they could , tor lnata nce, it they wanted
u.,
H:
.n
to they c ould UA~
cllllon o r 1 t and und
1t
here a r.d ve ' d buy 1 t tro!ll: the~: - or 2
::1111on or 5 a 1lllon or whatever they need. .
T.-'ell , we wouldn 1t van t t o send thell - we 1 d
want t o auoervlee 1 t very closely to ue
that l t d 1dn 't go to tne Germans.
t hing .
321
- 3H. •-. . Jr:
Well , IIY ill'l)r eu i on whl eh t• ve go t, which
r:.ay be wrong , fro:~ Serle t o !11.1 peoole i a
that you people over t he r e d 10n 1 t want u t t o
do anything on 1 t .
H:
Yeah.
H. V..Jr:
Now 1f I •m wrong you might tel l me lat er
on 1n the day .
H:
'.\ell, 1 ' !1 l.Jok. into 1t • li t tle f ur ther
and see 1 f I can give you any i ntora~atlon
- any 11de-light.
H. h . Jr:
;..nc! t!'te President u1d he wanted c.ore
1n!'orc:at1on on what they ' re go1r..g to do in
South ..Uer1ca .
0
~huth
H:
Yee, 1n
H. H. Jr:
Yeah . That 1 1 where they want t he money,
1sn• t l t -.
H:
Oh, I thoueht 1 t was 1n other '08 r ts of t h 1 e hem1 eoher e mainly .
H. . Jr:
A:lerlca .
Well , the way 1t it nov we g1v e them t he
a~oney eech month t o take care o f Un1 ted
Sta tee.
I
H:
Yeah.
H. .Jr:
':"hen they want =oney t o r South A:le r 1ca
ar.d they want money for t he reet o f the
world .
H:
Yes , I knew .
H. ILJr :
Now on the re•t of the world we told the:~
det'1n1 tely no . Cn South America .,.e ee1d
we had 1 t under conllderatlon.
'!e~ ,
H:
H . ~••
Jr:
I aec .
But I ' d very much l 1ltt to have your edvlce .
I
•
H:
1
I 11 look 1nto 1 t fu rther , Henr1 .
H.I .. J r:
Thflnk 701..:.
~:
l'••b.
Se pte n~ber 13, l94o
12: 03 p . m.
H. a .Jr:
Robert
Hinckley:
•
Hello.
I Juat vantec1 t o re))O rt the trip out to
the port tne other c1a7 vi th the 8ri tl ahera.
H• .• • Jr :
Yeah.
H:
I t hi nk t h ey were impre~ted. They ' ve he4
their fl i ght ot t icere out there a couple
or times &ince tly1ng the pl ene. The Array our ovn Army, hovever, 1 1 alao very
1:noreue4 ar.d they have indi cated that
they vent t o p lace en o r der tor five ••
aoon •• they can run the tt}lnge t hrough
De1ton - thr ough ..-ri &ht Fldd.
H. t~ .Jr :
I aee .
H:
How it' a my gueaa that probably af ter that
they may want more t han that .
H • • . • Jr :
un- huh .
H:
The only thine; I 1 :t •UG&tltlng in or der to
"Prevent aor~e argumen t o r 4hcuuion later
on i1 that 1r they are reall7 intereated in
thla th.lng tll8t they Mke 10:ae i nd1cat1on
ao thst t hey v on ' t be i n the pos itio n o r
venting it a fter vhlle like t he J acoba moto r
!'lnd t hen not being abl e to ge t it.
I
Righ t .
H• ••• J r :
I aee .
H:
Yea, .-ir.
H . ~.Jr:
Thank you .
0 . K., t hank• tor the tip .