View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

214
December 31, 1941

11:50 e.m.
HRJr:

Frank

lelker:

Hello.
Hello.
Frank.

Yes, Henry.

If you remember either three months ago or
six months Ago, you made 8 suggestion at
Cabinet that you didn't see why they couldn't

have somebody out front in a post office like
in a bank selling Defense Savings Bonds

Yeah.

Now, I've been trying in every way possible to
get that over, and I haven't been successful.

Not, I wondered if Den Bell could come over and
see you some time Friday and talk to you about
it?

Sure. You mean, it would be some representative

of yours, not of ours.

Yes, of ours. I mean, I want to try it in one
or two post offices.
Yes. That's - of course we'll do it, Henry.
Well, do you went to give me a time for Bell
for Friday?

Any time that's agreeable to Dan is agreeable
to me.

Ten-thirty?
Fine.

He'11 be at your office at ten-thirty Friday.
Fine.

Thank you.

All right, Henry.

215
December 31, 1941

Prepared for discussion when the Secretary
had Mr. Swope for luncheon today.

12/21/2016
The Procurement Division

The Procurement Division determines the policies and
methods of procurement, warehousing, and distribution of
property, stores, and supplies for all Government establishments; and, with the exception of the Army, Navy, and
Marine Corps, procures all materials, supplies, and equipment
used by all Government agencies in Washington and in the
field.

In connection with its activities, the Division (a) contracts for supplies, materials, and services for all govern-

mental agencies; and supervises the transportation, maintenance,
rotation, and storage of materials so acquired; (b) receives,
warehouses, and issues supplies maintained as stock items in
the Procurement Division warehouse; (c) prepares specifications
for commodities used by the Federal Government; (d) coordinates
and supervises the disposition of surplus property in Washington
and in the field, and the disposition of property seized and
forfeited under various statutes; and (e) coordinates the Govern-

ment's freight, express and other traffic activities. The

Division operates 43 field procurement offices for the handling

of procurement requirements.

On the basis of latest figures available, purchases made

by the Procurement Division between July 1 and December 31, 1941,

will total $433 millions. These purchases will be for the
purposes shown in the following table:

(In millions of dollars)
Lend-Lease

Regular Government activities

327
9

Emergency relief activities

83

Red Cross war relief

10

Strategic and critical materials

Defense housing
Total

3

1

433

At the present time the Procurement Division employes

2,646 persons.

217

The Bureau of Engraving and Printing
The Bureau of Engraving and Printing designs, engraves

and prints all paper currency and all securities issued by

the United States Government and its possessions, its agencies
and instrumentalities. The Bureau also designs, engraves and
prints all stamps issued by the Government, including postage
stamps, revenue and customs stamps, and food order and cotton
order stamps, and all checks. The Bureau also handles

practically
all other classes of engraving work required by
the Government.

Deliveries of finished work by the Bureau between
July 1, and December 26, 1941, were as follows:
Currency

Securities (bonds, notes, certi- 694 million pieces

ficates, bills, etc. )

Postage stamps

Internal revenue and customs
stamps

Other items (stamps, checks,
etc.)

28 million pieces
9 billion stamps
8 billion stamps

1 billion pieces

At the present time the Bureau employs approximately
6,675 persons. Their aggregate payroll amounts to approximately $1 millions per month.

218
The Bureau of the Mint

The Bureau of the Mint has general supervision of the
following Mint institutions of the United States Government:
The coinage mints at Philadelphia, San Francisco,
and Denver; the assay office at New York, which handles
the major portion of the gold imported and exported;
the silver bullion depository at West Point, New York;
the gold bullion depository at Fort Knox, Kentucky;
the mint
at Newoffice
Orleans
conducted as an assay office;
and
the assay
at Seattle.
Electrolytic
refineries are maintained at New York, Denver,
and
San Francisco.
The Bureau of the Mint directsthe coinage of money and

supervises the activities of the mint institutions in the field,

receivinggold
assaying,
paying
for, storing and safe-guarding the
nation's
and silver
stocks.

Domestic coins manufactured by the mints during the calendar
addition, approximately 200 million coins were manufactured for
foreign governments, including the Netherlands East Indies,
the Netherlands West Indies, Indo-China, and Liberia. The
number of coins manufactured during the calendar year 1941 is
approximately 50 percent greater than the number of coins

year 1941 will amount to approximately 1.8 billion pieces. In

manufactured during the calendar year 1940.

The electrolytic refineries at the various mints produced
approximately 12 million fine ounces of electrolytically
refined gold and silver bullion during the calendar year 1941.
On December 1, 1941, the Bureau OI the Mint employed
approximately 2,500 persons.

219
December 31, 1941
1:23 p.m.

Jr:

Mrs. Helm, I took the liberty in confidence of
showing that letter to the President
Yes.

and saying that you and I were playing conspirators, and that - his instentaneous reaction
was under no circumstances to have it. Hello.
To

Under no circumstances to have the party.
Under no circumstances to have the party.
HMJr:

So I SPW Mike Reilly and told him he should tell
Mrs. Roosevelt, leaving you and the President
out,
but putting it entirely on me, that I advised
they should not have it.

H:

I see. That's awfully nice. I was going to see
her this afternoon. I hadn't been able to. You

see, she got in late yesterdey and went right off,

and I haven't seen her today: and I was going down
this afternoon to go over that with her. Well,
then I'11 just see what she says.

Well, you can say that Secret Service 18 absolutely
opposed to it.
Yes.

And then you and I know that if she goes to the
President and appeals it, that he's going to back

me up.
Yes.

But I exclained to Mike that he'd never seen the

letter, and also to the President, and I'm leaving
Reilly and the President out and it's just me.
I'll be the bad boy.

(Laughs) Oh, all right. Well, I will
Secret Service is under me, and it's up to me to

220

-2take it, and I can.
I'm awfully sorry, but
HMJr:

No, no, no. Mrs. Roosevelt knows by now that -

she knowe how devoted I am to him, and I wouldn't
do anything
wasn't in the interest of the
President
andthat
herself.

Yes, certainly.

And
I am charged with protecting the life of the
President.
Certainly.

And I want to live up to that responsibility.
Yee.

So it is my responsibility.
Yes.

And I appreciate your bringing it to me.
Yes.

And
it. you can say that Secret Service is opposed to
H:

HMJr:

I did all that I could, you see, and
But I didn't argue with the President, but his

instantaneous reaction was, "I will not have those
parties.

Yes. That's all right.
HMJr:

See?

Yes.

So we know where he stands.

Absolutely. All right, that's fine.
HMJr:

Now, any time you've got something like that,

-3-

221

I'd the
appreciate
if you'd bring it to me; and I'11
do
best I can.

All right, sir.
Thank you.

I thought it was all set, and I'm sorry you had

to bother
right
now. about it.any more. You've got enough

No, no, no. It's part of my job.
Well

And I happen to be devoted to both of them.

Yes. And I'm devoted to you. (Laughs)
Thank you. That's mutual. Thank you.
Good-bye, and thanks.

222
December 31, 1941
3:25 p.m.
HMJr:

This 1e the last request of the year.

Colonel
Smith:

All right, sir.

HMJr:

One, I'd like to be informed if my suggestion was

ever carried out about the 90 millimeter anti-aircreft

battery
S:

HMJr:

Yes, sir.

that the men get a chance to shoot a gun off

somewhere.

Yes, sir. It's in process right now.
It is?
Yee, sir.
HMJr:

Are they being given that opportunity?

S:

Yee, they're being moved, I think - 88 a matter of

feet, I think one of the batteries is or is about

to be moved right now to Monroe - Fort Monroe - and
being replaced by one of the units down there; and

as fast as they replace them, they'11 try their

target practice and come on back and release another

one.
HMJr:

Are you sure?

S:

Yes, sir. I know that the instructions have gone

out some days ago. I haven't had time to check on
it, because I've been

HMJr:
S:

When you check, give me a ring.

so immersed in this - the Chief of Staff's con-

ferences that I just haven't had my head above water.
HMJr:
0:

Well, give me a report next year.

Yes, I will.
Next year.

--

223

S:

(Laughs) I'll do it before then, Mr. Secretary.

HMJr:

No, next year will be time enough.

All right, sir.

S:

HMJr:

S:

HMJr:

Now, also on that Radar, did you get a report as
to whether that's in operation?

No, I'11 have to give you e report on that, also.
Well, if I have this any time Friday, it'11 be good
enough.

All right, sir. Ch, by the way, you were correct.
That is Radar - R-e-d-a-r.

S:

0:

Well, I was - I knew that's what the Navy calls it.
That's right. That's the correct designation.

HMJr:

You said Radex.

HMJr:

S:

I know it. I saw it referred that way in a letter

HMJr:

Right.

that we got, but Radar is right.

S:

(Leughs)

HKJr

Well, if I could know Friday, that's plenty of time.

S:

Yes, sir.

HMJr:

S:

HMJr:

S:

HMJr:
S:

You know, you and I were going to go and look at it
when it was installed.

That's right, sir.
And many thanks for all of the courtesies of the year,
and I wish you a very successful next year.

Mr. Secretary, the obligation is all on my side.
Well, I won't agree.
By the way, Kamarck was just in here, and I've taken

224
- -3 -

him down and introduced him to the Intelligence

people on the Air Staff so be sure that he gets
the information that you want about airplane performance.

HMJr:

Oh, yes.

Thank you 80 much.

A happy New Year to you.
Same to you.
S:

HMJr:
S:

HMJr:

And will you remember to give it to Mrs. Klotz
for me likewise?

I'll do the t.
Good-bye, sir.
Thank you.

29F

TREASURY DEPARTMENT
OFFICE OF CHIEF COORDINATOR
TREASURY ENFORCEMENT AGENCIES

WASHINGTON

December 31, 1941

My dear Mr. Secretary:

On behalf of the many officers and employees
of the Treasury Department engaged in law enforce-

ment activities, I want to express our very deep
appreciation of your letter of commendation of
December 29, and of your good wishes for a happy
and victorious New Year.

Your keen interest in our endeavors and your
complete support in the work which we are doing
have made possible a year in which coordination has
advanced to the point where we are engaged as one

organization in the carrying on of our endeavors.
We want to thank you for this support and interest
and assure you that it will be our earnest endeavor
to continue throughout the New Year to consolidate
the advantages which have been gained and to further

the efforts to more completely coordinate our activities, to the end that we may contribute our part
toward the victorious New Year which you have

wished for all of us.

with sincere good wishes for you in the many
difficult problems which confront you and best wishes
for a successful handling of all these problems
throughout the year, I am,
Very sincerely yours,
Hon. Henry Morgenthau, Jr.

Secretary of the Treasury.

TREASURY DEPARTMENT
FISCAL SERVICE
WASHINGTON
BUREAU OF THE PUBLIC DEBT
OF

THE

COMMISSIONER

OFFICE

December 31, 1941

Dear Mr. Secretary:

I deeply appreciate your kind note of the 29th,
and your greetings for the New Year, and I have conveyed your message to each of my associates in the
Bureau.

I take this occasion to reciprocate your good
wishes for the New Year. We shall be victorious.

Faithfully,

The Honorable,

The Secretary of the Treasury.

REDEFENSE

BUY
UNITED
STATES

MINIS

226

227
TREASURY DEPARTMENT
BUREAU OF NARCOTICS

WASHINGTON

OFFICE OF

COMMISSIONER OF NARCOTICS

December 31, 1941.

Dear Mr. Secretary:

A copy of your kind letter of December
29th has been sent to each employee of this

Bureau. We in turn assure you of our continued
loyalty and support during the New Year.

Faithfully yours,

Honorable Henry Morgenthau, Jr.
The Secretary of the Treasury,

Washington, D. C.

228

DEC 31 941

My dear Mr. Secretary:

The Treasury Department is desirous of developing as rapidly
as possible measures intended to safeguard over the period of the
emergency its employees, numbering some 80,000 persons located in

the District of Columbia and in practically every State in the
Union in leased and Government-owned property. Involved in this
program are many technical and engineering problems, and in this
respect the Department has had recommended to it Brigadier General
Harley B. Ferguson, whose present address is 1224 St. Charles

Avenue, New Orleans, Louisiana. It is understood that General

Forguson was recently retired from the Office of the Chief of

Engineers, but would be available for this assignment if called to
active duty.

If consistent with the War Department's policy, might I
respectfully request that Brigadior General Ferguson be called to
active duty and detailed to the Treasury Department for the period
of the emergency to undertake this assignment.

11. It

Very truly yours,

Secretary of the Treasury.
The Honorable,

The Secretary of War.
CSB:em

12-31-41

n.m. C

Sent from ma shappone office

229

December 31, 1941

Dear Mr. President:

I thought you night be interested in the
attached copy of A letter received from Mr. Alfred
B. Strauss who has donated $25,000 as his initial

contribution to a war chest for "offense."
You will note that Mr. Strauss does not wish
his identity disclosed because he has a brother

living in Holland.
For your information, I an also enclosing a
copy of my reply to Mr. Straues.

Faithfully yours,
(Signed) R. Moresnthas, Jr.

The President,
The White House.

DWB:ce

n. m

Sent from mr Belli fine

230
DEC 31 1941

Mr. Alfred 3. Strumes,
140 Riverside Drive,
New York City.

Dear Kr. Strenses

It gives as a great deal of pleasure to acknowledge receipt of

your letter of December 26, 1941, enclosing a check in the amount of

$25,000 as your initial contribution to a war chest for "offense" and
suggesting that the Government initiate a drive for contributions to

create a vast MAY chest.

The Treasury appreciates the high degree of patriction evidenced

by this contribution to assist is financing the war efforts of our country.
It will not be possible for the Trensury to place your contribution in a

particular fund to be known as Swar chest for offense", but 11 can be
deposited in the general fund of the Treasury from which all our expentitures, including our war costs, are paid.

I all sure your contribution gives you a great deal of artis-

faction and action such as yours shows you are truly American in spirit
and that you are like great numbers of our foreign-born citizens or their

descendants who have come forward voluntarily to participate in the
defense efforts of this country.

THE Treasury is not in a position to initiate a drive for

voluntary contributions to the Government and the Department's position

with respect to such contributions is outlined in the enclosed copy of

my statement of December 22, 1941.

It is not the practice of the Treasury to publish the names of

persons making voluntary donations to the United States and no publicity

will be given to your donation, A certificate by the freseurer of the

United States, evidencing the deposit of the above-mentioned mus in the
Treasury. will be forwarded to you within a few days. In accordance

with your request this deposit will be treated in our records as
emonymous by request of doner".

Very truly yours,
(Signed) N. Morgenthan...ss.

Secretary of the Treasury.

WTH:alb 12-30-41

n.m.c.

Suns from m Bills Him

230
DEC 31 1941

Mr. Alfred B. Strucess,
140 Riverside Drive,
New York City.
Dear Mr. Strenses

It gives as a great deal of pleasure to acknowledge reseipt of

your letter of December 26. 1941. enclosing a check in the amount of

$25,000 as your initial contribution to a war chest for "offense" and
suggesting that the Government initiate a drive for contributions to

create a vast war chest.

The Treasury appreciates the high degree of patriction evidenced

by this contribution to assist is financing the war efforts of our country.
It will not be possible for the Trensury to place your contribution in a
particular fund to be known as ** chest for offense". but 18 can be
deposited in the general fund of the Treasury from which all our expentitures, including our war costs, are paid.

I am sure your contribution gives you a great deal of satisfaction and action such as yours above you are truly American in spirit
and that you are like great numbers of our foreign-born citizens or their

descendants who have come forward voluntarily to participate in the
defence efforts of this country.

The Treasury is not ia a position to initiate a drive for

voluntary contributions to the Government and the Department's position

with respect to such contributions is outlined in the enclosed copy of

my statement of December 22, 1941.

It is not the practice of the Treasury to publish the names of

persons making voluntary donations to the United States and no publicity

will be gives to your donation. A certificate by the Treasurer of the

United States, evidencing the deposit of the above-mentioned mus in the
Treasury will be forwarded to you within a few days. In accordance

with your request this deposit will be treated in our records as
emonysous by request of donor".

Very truly yours,
(Signed) H.

Secretary of the Treasury.

WTH:mlb 12-30-41

n.m.c.
Suns from m Bella Him

231

COPY
ALFRED B STRAUSS
WOOL

140 Riverside Drive
NEW YORK CITY

December 26, 1941

Mr. Henry Morgenthau, Jr.,
Secretary of the Trensury,
Washington, D. C.

Dear Mr. Morgenthau:

I was born in Germany and I am a resident of the United

States since 1915. I an a citizen since 1921.

I was profoundly shocked, as were millions of other

Americans, by the outrageous attack upon us by Japan.

It is the duty of all Americans to assist their Government
in the prosecution of this war against the Axis.
Were i a younger man I should feel it my oblightion to

enlist in the armed forces of this country. In lieu of

active participation deniedme, I am enclosing a check for
$25,000.00
as my initial contribution to A war chest for
"offense".

I feel that in a country as wealthy as America, similar
contributions from our citizens would create a vast fund for
the manufacture of game, planes, ships and other instruments
of war. I heartily recommend that the Government initiate
8 drive to rnise such A fund.

I sincerely request that my identity not be disclosed
: have a brother living in Holland.
Yours truly.

/s/ Alfred B. Straiss

TREASURY DEPARTMENT

232

INTER OFFICE COMMUNICATION

DATE December 31,

Secretary Morgenthau

TO

1941

Mr. Haas

FROM

Subject:

Idle Business
Balances
Proposed
Special
Security for the Purpose of Absorbing

It is claimed in some quarters that funds saved by

business enterprises because of deferred maintenance,

reduced inventories, inability to reinvest depreciation

and depletion reserves, and inability to make plant extensions will provide a major source for financing the
war effort. The amount of these funds has probably been
exaggerated. To the extent that such funds are saved,

furthermore, they may be devoted to reducing bank loans,

retiring other indebtedness, etc., and so will be available to the Treasury only through the sale of securities

to banks or to persons or corporations other than the
business enterprises making the savings. Nevertheless,
it seems that idle business balances may prove a suf-

ficiently important source of funds to justify offering
a special type of security for their investment. Such a

security would also be suitable for the investment of
idle State and municipal, and, to some extent, personal
balances.

In order to provide a suitable investment for funds
of the character discussed, a special security should,
from the standpoint of the investor, be liquid, free from
market risk, and bear a satisfactory rate of return. From
the standpoint of the Treasury, it should be readily callable, so that it may be retired or converted into more
permanent forms of debt as soon 8.8 practicable after the

conclusion of the war emergency.

The proposed security would mature in ten years. It
would be issued at $92.80 and would pay no current interest
during the first five-year period. It would be redeemable
at the option of the holder on thirty days' notice at any
time six months after date of issuance. During the first
five-year period such redemotion would be at prices corresponding to a scale of yields gradually ascending to

233
Secretary Morgenthau - 2

1.50 percent per annum. The proposed ascending scale of
yields corresponds approximately to that used for Series

F and G savings bonds. At the end of five years the re-

demption price would be 100. The redemption price would

continue at 100 during the entire second five-year period,
during
the security
would pay current interest at
the ratewhich
of 2 percent
per annum.

The security would be callable at the option of the
Government upon thirty days' notice at any time after six
months from date of issuance. During the first five-year
period such callability would be at an ascending scale of
redemption values corresponding to a flat yield of 1.50
percent
forsecurity
the period
held.
second five-year
period the
would
be During
callablethe
at 100.
The proposed redemption values and intermediate yields

during
the first five-year period are shown in the attached
table.
The security would be non-negotiable and would be

available for sale in unlimited amount to all persons and

corporations other than banks and insurance companies.

Attachment

234
Secretary Morgenthau - 3

Intermediate Redemption Values and Yields of
Proposed Special Security to Absorb
Idle Business Balances

Period held

Yield for
period
held if
redeemed by

1/2 year
1

1-1/2
2

2-1/2
3

3-1/2

4-1/2
5

Redemption

value if

Redemption

redeemed

called by

value if

holder

by holder

.00%

$92.80

$93.50

.30

93.08

94.20

.45

93.43

94.90

.60

93.92

95.62

.75

94.55

96.33

.90

95.33

97.06

1.05

96.26

97.78

1.20

97.35

98.52

1.35

98.59

99.26

1.50

100.00

100.00

Treasury*

#

All values in this column correspond to a yield of
1.50 percent for period held.

235
DEC 31 1941

My dear Mr. Secretary:

In promoting the sale of Defense Savings Bonds and Stamps
under the Defense Savings Campaign in furtherance of the
National Lefense Program, the Treasury Department has found,

that one of its most productive sources is the Voluntary
Payroll Allotment Plan. Under this procedure, an employee
authorises the employer to deduct a state amount from his
salary, which is accumulated by the employer and set aside

in a special trust fund established for that purpose. hen
sufficient funds have accumulated to the credit of the

employee, arrangements are then made by the employer for
the purchase of a Defense Savings Bond, which is registered
in accordance with the wishes of the employee and forwarded
to a designated address.

This procedure is now achieving wide-spread popularity

throughout the entire country in all forms of industry. The

results obtained through this method of furthering the Defense
Savings Campaign have been very pleasing and encouraging to

the Treasury Department. While it is the desire of this
Department to further the adoption of Payroll Allotment Plans
among private industry, it is also our desire to install
ayroll Allotment Plans wherever Federal funds are involved.
It had previously been brought to our attention that the
regulations issued by the Department of Labor, March 1, 1941,
under the Bacon-lavis Act and Copeland Law ("Kick-back Statute")

have been construed to prohibit the installation of this type

of Payroll Allotment Plan among employees working for contractors
engaged on Public Building or Public Work financed in whole or in
part by loans or grants from the United States. However, at the
instance of the Treasury, the Department of Labor has released
revised regulations pertaining to permissible deductions from
the wages of those employees, which now allow the deductions
from pay for the purchase of lefense Saving Bonds or Tax
Savings Securities (copy attached). This amendment of the
existin regulations became effective ecember 9, 1941, upon

filing with the Federal Register, and was published in the
Federal Register of December 10, 1941, at page 6329. It
includes within the meaning of the term "permissible deductions",
as used in those regulations:

236

-2-

deductions for the purchase of United States

Defense Bonds and Stamps and United States Tax

Savings Notes: Provided, that neither the contractor nor subcontractor nor any person acting

in his behalf directly or indirectly derives any
benefit or profit from the transactions; and
Provided Further, That such deductions have been

voluntarily
agreed to by the employees in writing
and in advance."

In view of these revised regulations, it will be appreciated,
therefore, if appropriate instructions are issued to officials of
the Navy Department in charge of construction now being performed
throughout the country, expenses of which are chargeable to funds
appropriated to the Navy Department, that this new ruling removes
the restrictions of the Bacon-Davis Act and Copeland Law ("Kickback Statute") which prevented contractors engaged on Public

Building or Public York from installing Payroll Allotment Plans

for the convenient and systematic purchase of Defense Savings
Bonds by their employees through allotment from their wages.
Sincerely,
(Signed) E. Morgenthan. Ja.

The Honorable,

The Secretary of Navy,
Washington, D. C.

copies To shoupson
by Messenger 5:00 Sange

TITLE 29-LABOR

237

SUBTITLE A-OFFICE OF THE SECRETARY OF LABOR
CODE OF FEDERAL REGULATIONS
PART 2

Regulations Applicable to Contractors
and Subcontractors on Public Building
and Public Work and on Building and
Work Financed in Whole or in Part by
Loans or Grants from the United States
(Kick-back Statute)

STATES

of

Pursuant to section 2 of the act of
June 13, 1934 (48 Stat. 948), and
section 9 of Reorganization Plan
No. IV, effective June 30, 1940, in
accordance with section 4 of H.J.

Res. 551 (Public Res. No. 75),
approved June 4, 1940

Published in Federal Register March 1. 1941

REGULATIONS APPLICABLE TO CONTRACTORS AND
SUBCONTRACTORS ON PUBLIC BUILDING AND PUBLIC

WORK AND ON BUILDING AND WORK FINANCED IN
WHOLE OR IN PART BY LOANS OR GRANTS FROM THE

UNITED STATES. (KICK-BACK STATUTE)
SECTION 1.° Weekly affidavit with respect to wages.-(a) Each
contractor or subcontractor engaged in the construction, prosecution,
completion. or repair of any public building or work, or building or
work financed in whole or in part by loans or grants from the United
States shall furnish each week an affidavit with respect to the wages
paid during the preceding week.

(b) Said affidavit shall be executed and sworn to by the contractor
of subcontractor or by the authorized officer or employee of the contractor or subcontractor who supervises the payment of wages, and
shall be in the following form:
STATE OF

88.:

COUNTY of

(name of party signing affidavit),

(title). being duly sworn. do depose and say That I pay or super-

I.

Vise the payment of the persons employed by

inintractor or subcontractor) on the

(build

Ing or work that the attached pay roll sets out accurately and completely the
name. occupation, and hourly wage rate of each person so employed for the
day of

weekly pay roll period from the
the

194

to

194. the total number of hours worked

day of

by him during such period. the full weekly wages earned by him and any

deductions made from such weekly wages, and the actual weekly wages paid to

him that no rebates have been or will be made either directly or indirectly to

is on behalf of said (contractor or subcon
tractor) from the full weekly wages earned as set out on the attached pay roll:
and that no deductions, other than the permissible deductions (as defined in the
Regulations under the "Kick-back" Act (48 Stat. 948) described in the following

paragraph of this attidavit have been made or will be made, either directly or
indirectly from the full weekly wages earned as set out on the attached pay roll.
(Paragraph describing deductions, if any.)

(Signature and Title)
Sworn to before the this

day of

194

(c) Each weekly affidavit with attached pay roll shall be delivered
within seven (7) days after the regular payment date of the pay roll
to the Government representative in charge at the site of the building
or work. or, if there is no such Government representative, shall be

mailed within such time to the Federal agency contracting for or
financing the building or work. After such examination and check
as may be made, such affidavit and pay roll, or a copy thereof, together

with a report of any violation, shall be transmitted by such Federal

551 No June 1940 and

and These regulations are issued under the authority conferred in section 2 48 Stat. 948

effective June 30 1940 in cordance with

action * section of of Reorganization
Public
Res.
The
Plan NoRes.
IV are
setPlan
forth
in No
fullIVin75).
theapproved
appendix
toact
these
1

2

PART 2-REGULATIONS
PART 2-REGULATIONS
3

agency otherwise
to the United
States with
Department
of Labor at Washington, D.C.,
unless
arranged
the Department.

(d) At the request of the Federal agency contracting for or financ.
ing the building or work, the contractor or subcontractor shall furnish
and roll
deliver,
together
with
the original, a copy of the affidavit and
pay
required
by this
section.
SEC. 2. Definitions.-As used in the foregoing section

(a) The words "construction, prosecution, completion, or repair"
comprehend all types of work done on the particular building or work
at the site thereof including, without limitation, altering, remodeling,
painting and decorating, and fabricating, assembling and installing
articles, apparatus and equipment used on or installed in the building
or work. They comprehend also the transporting of materials and
supplies to or from the building or work, and the manufacturing or
furnishing of materials, articles. supplies, or equipment on the site
of the building or work, by persons employed at the site by the contractor or subcontractor engaged in work at the site.

(b) The words "building or work" include, without limitation (in

addition to buildings) structures and improvements of all types, such
as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, railways, ships, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties,
breakwaters, levees, and canals; and dredging, shoring, scaffolding.

drilling. blasting, excavating, clearing, and landscaping work. Un-

less conducted in connection with and at the site of such a building or
work as is described in the foregoing sentence, the manufacture or
furnishing of materials, articles, supplies, or equipment (whether or
not the United States acquires title to such materials, articles, supplies, or equipment during the course of the manufacturing or furnishing or owns the materials from which they are manufactured or fur-

nished)
is not a "building or work" within the meaning of these
regulations.
(c) The term "permissible deductions" includes (1) deductions required by statute, such as the Social Security Act, or by court order:
and (2) deductions from wages of persons permanently employed by
shipbuilding companies and by concerns such as public utilities not
normally engaged in performing construction contracts, for death,
disability, sickness, hospitalization, retirement, or unemployment insurance: Provided. That the total amount of such deductions is paid
for premiums to insurance companies or mutual benefit associations
neither directly nor indirectly under the control of the contractor or
subcontractor and that no portion of such premiums, whether in the
form of a commission or otherwise, is returned to the contractor or
subcontractor; and Provided further, That such deductions have been
voluntarily agreed to by such employees in writing and in advance.
No other deductions are permissible within the meaning of these regu-

lations, including, without limitation, deductions for board, lodging.
commissary purchases, hospitalization benefits, hospital bills, voluntary wage assignments, group insurance, rentals, loans, or loss of tools.
Bona fide cash wage advances are permissible.
(d) The term "Federal agency" includes all executive departments,

independent establishments, agencies, and instrumentalities of the
United States, corporations all of the stock of which is beneficially
owned by the United States, and the District of Columbia.

SEC. 3. Notice to contractors.-Contracts entered into after the effective date of these regulations shall contain provisions appropriate to
bind
the contractors to comply with the requirements of the regulations
if applicable.
SEC. 4. Effective date: existing regulations superseded.-These
lations shall be effective sixty (60) days after publication thereof regu- in
the Federal Register and shall supersede from that date the regulations
and amended regulations issued jointly by the Secretary of the Treasury and the Secretary of the Interior on January 8, 1935, and March 27.

1937. respectively (24 C. F. R. 604; 41 C. F. R. 21) Provided, That
the parties to contracts or subcontracts entered into prior to the effective date may, if they so agree, comply with these regulations instead
of
with
the superseded
regulations
at any time after publication of
these
regulations
in the Federal
Register.
FRANCES PERKINS,

Secretary.

APPENDIX TO REGULATIONS PART 2
(Referred to in section 1)

To effectuate the purpose of certain statutes concerning rates of pay for
by making
it unlawful toand
prevent
anyone
from receiving the compensation labor.
tracted
for thereunder,
for other
purposes.
cog.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled. That whoever shall
induce any person employed in the construction, prosecution, or com-

pletion of any public building, public work, or building or work

financed in whole or in part by loans or grants from the United States,

or in the repair thereof to give up any part of the compensation to

dation.
from such
any manner fined not more

which he is entitled under his contract of employment, by

not more or

of the above the

imprisonment SEC. other 2. threat To aid of in procuring whatsoever, the enforcement than 5 dismissal years, shall be both. section, employment. than force, Secretary $5,000. intimi- or by or

of the Treasury and the Secretary of the Interior jointly shall make
reasonable regulations for contractors or subcontractors on any such
building or work, including a provision that each contractor and subcontractor shall furnish weekly a sworn affidavit with respect to the
wages paid each employee during the preceding week.
Approved June 13, 1934.

SECTION 9 OF REORGANIZATION PLAN NO. IV. EFFECTIVE JUNE 30,
1940, IN ACCORDANCE WITH SECTION 4 OF H. J. RES. 551 (PUBLIC
RES. NO. 75). APPROVED JUNE 4. 1940

SEC. 9. Transfer of certain functions relating to enforcement of
wage payments on public construction.-The functions of the Secretary of the Treasury and the Secretary of the Interior under section 2
of the act of June 13, 1934, entitled "An act to effectuate the purpose
of certain statutes concerning rates of pay for labor, by making it unlawful to prevent anyone from receiving the compensation contracted
for thereunder, and for other purposes" (48 Stat. 948), are transferred
to the Secretary of Labor, and shall be administered by him or under
his direction and supervision by such agency in the Department of
Labor as the Secretary shall designate.
4

GOVERNMENT

238
TREASURY DEPARTMENT
WASHINGTON
FIELD MEMORANDUR No. 155
DEFENSE SAVINGS STAFF

Subject: Amendment of Department of
Labor regulations under
Copeland Kick-back Act and

Davis-Bacon Act to authorize
voluntary payroll deductions
for the purchase of Defense
Savings Bonds and Stamps
December 12, 1941

TO ALL STATE ADMINISTRATORS:

The Department of Labor has for some time had under preparation

a comprehensive revision of its existing regulations under the
Copeland Kick-back Act and the Davis-Bacon Act. The existing regulations were published in the Federal Register of March 1, 1941. They
are applicable to contractors and subcontractors on public buildings
and public works and on buildings and works financed in whole or in
part by loans or grants from the United States. The purpose of the
regulations is to make sure that persons working on such projects
receive the full amount of their weekly wages unconditionally and
without subsequent deduction or rebate. The Department of Labor had
construed these regulations to prevent voluntary payroll deductions
for the purchase of Defense Savings Bonds and Stamps in situations
to which the Copeland Kick-back Act or the Davis-Bacon Act were ap-

plicable.

However, at the instance of the Treasury Department, the Departnent of Labor agreed to include a provision authorizing such deductions

in the new revision of its regulations on the subject. Because of the

many mattors which are being considered in connection with this revision
there has been much greater delay than had originally been anticipated
in promulgating the new regulations. At the urgent request of the
Treasury Department, therefore, the Department of Labor has issued a
special regulation amending the existing regulations on the subject
specifically to authorize voluntary payroll deductions made under
Payroll Allotment Plans installed for the convenient and systematic
purchase of Defense Savings Bonds and Stamps by employees in cases

where this might otherwise have been within the prohibitions of the
present regulations. This amendment of the existing regulations became effective December 9, 1941, upon filing with the Federal Register,
and was published in the Federal Register of December 10, 1941, at
DEFENSEpage 6329. It includes within the meaning of the term "permissible
deductions", as used in those regulations:
BUY
UNITED
STATES

MOINGS
BONDS

*** deductions for the purchase of United States
Defense Bonds and Stamps and United States Tax Savings

Notes: Provided, That neither the contractor nor sub-

--

239

contractor nor any person acting in his behalf directly
or indirectly derives any benefit or profit from the

transactions; and Provided further, That such deductions
have been voluntarily agreed to by the employees in
writing and in advance."
This special regulation of the Department of Labor abolishes
any restrictions of the previous regulations which might have prevented the installation of Payroll Allotment Plans for the purchase

of Defense Savings Bonds and Stamps by employees working for con-

tractors or subcontractors engaged in shipbuilding, or other construction of public buildings and public works, or buildings and
works financed in whole or in part by loans or grants from the
United States.

L. M. Olney,

Associate Field Director,
Defense Savings Staff.
Attachments:

(1) Copy of Regulation issued by Department of Labor
as published March 1, 1941 in the Federal Register.
(2) Copy of Revised Regulation published December 10,

1941 in the Federal Register.

240
FEDERAL REGISTER - Wednesday, December 10, 1941
TITLE 29-LABOR

SUBTITLE A OFFICE OF THE SECRETARY OF LABOR

PART 2 - REGULATIONS APPLICABLE TO CONTRACTORS AND SUBCONTRACTORS ON PUBLIC
BUILDING AND PUBLIC WORK AND ON BUILDING AND WORK FINANCED IN THOLE
OR IN PART BY LOANS OR GRANTS FROM THE UNITED STATES.
AMENDMENT TO THE REGULATIONS WITH RESPECT TO PAYROLL DEDUCTIONS FOR UNITED STATES
DEFSNSE BONDS, STAIPS, AND TAX SAVINGS NOTES.

Authority for Regulation

Pursuant to and by virtue of the authority conferred by section 2 of the

act of June 13, 1934 1/ and section 9 of Reorganization Plan No. IV, effective
June 30, 1940, in accordance with section 4 of H. J. Res. 551 (Public Res. No.
75), approved June 4, 1940, 2/, S 2.2 (c) of the Regulations of March 1, 1941 3/,
is hereby emended by adding at the and of subparagraph (2) of § 2.2 (c), after
the words "in writing and in advance," the following subdivision to be effective
immodiately upon filing with the FEDERAL REGISTER.
Regulation

3 2.2. Definitions.
*

(c) & o * (3) deductions for the purchase of United States Defense
Bonds and Steaps and United Status Tex Savings Notos: Provided, That noither

the contractor nor subcontractor nor any person acting in his behalf directly or
indirectly derivos any benefit or profit from the transactions; and Provided
further, That such deductions have boon voluntarily agrood to by employees in

writing and in advance.

FRANCES PERKINS,

Secretary.

F.R. Doc. 41-9269; Filed, December 9, 1941; 11:33 a.m.

Sec. 2, 48 Stat. 948, 40 U.S.C., Sup., 276 (c).
Sec. 9, 54 Stat. 1236; Sec. 4, 54 Stat. 231; 5 U.S.C., Sup., 133 (u).
6 F.R. 1210.

241

DEG 31 1941

vy dear Mr. Secretary:
In promoting the sale of Defense Savings Bonds and Stamps
under the Defense Savings Campaign in furtherance of the
National Defense Program, the Treasury Department has found,

that one of its most productive sources is the Voluntary
Payroll Allotment Plan. Under this procedure, an employee
authorizes the employer to deduct a stated amount from his
salary, which is accumulated by the employer and set aside
in a special trust fund established for that purpose. When
sufficient funds have accumulated to the credit of the

employee, arrangements are then made by the employer for
the purchase of a Defense Savings Bond, which is registered
in accordance with the wishes of the employee and forwarded
to a designated address.

This procedure is now achieving wide-spread popularity

throughout the entire country in all forms of industry. The
results obtained through this method of furthering the Defense
Savi Campaign have b on very pleasing ani encouraging to
the Treasury Department. while it is the desire of this
Department to further the adoption of ayroll Allotment Plans
among private industry, it is also our desire to install
Payroll Allotment lans wherever Federal funds are involved.
It had previously been brought to our attention that the
regulations issued by the Department of Labor, March 1, 1941,
under the Bacon-Davis Act and Copeland Law ("Kick-back Statute")

have been construed to prohibit the installation of this type
of ayroll Allotment lan among employees working for contractors
engaged on Public Building or Public York financed in whole or in
part by loans or grants from the United States. However, abethe
instance of the Treasury, the Department of Labor has released
revised regulations pertaining to permissible deductions from
the wages of those employees, which now allow the deductions
from pay for the purchase of Defense Savings Bonds or Tax
Savings Securities (copy attached). This amendment of the
existing regulations became effective December 9, 1941, upon

filing with the Federal Register, and was published in the

Federal Register of December 10, 1941, at page 6329. It
includes within the meaning of the term "permissible deductions",
as used in those regulations:

242

-2Receive deductions for the purchase of United States

Defense Bonds and Stamps and United States Tax

Savings Notes: Provided, that neither the contractor nor subcontractor nor any person acting

in his behalf directly or indirectly derives any
benefit or profit from the transactions; and
Provided Further, That such deductions have been

voluntarily
agreed to by the employees in writing
and
in advance."

In view of these revised regulations, it will be appreciated,
therefore, if appropriate instructions are issued to officials of
the far Department in charge of construction now being performed
throu hout the country, expenses of which are chargeable to funds
appropriated to the War Department, that this new ruling removes
the restrictions of the Bacon-Davis Act and Copeland Law ("Kickback Statute*) which prevented contractors engaged on Public

Building or Public Work from installing ayroll Allotment Plans
for the convenient and systematic purchase of Defense Savings
Bonds by their employees through allotment from their wages.
Sincerely,

(Signed) 1. Jr.

The Honorable,

The Secretary of aar,
Washington, D. C.

n.m.c
Copie to thompson
oy

RHO 'M :mec

aressonger

of

Laugh

243
TREASURY DEPARTMENT
FIELD WASHINGTON ME20ORANDUM No. 155
DEFENSE SAVINGS

Subject: Amendment of Department of
Labor regulations under
Copeland Kick-back Act and

Davis-Bacon Act to authorize
voluntary payroll deductions
for the purchase of Defense
Savings Bonds and Stamps
December 12, 1941

TO ALL STATE ADMINISTRATORS:

The Department of Labor has for some time had under preparation

a comprehensive revision of its existing regulations under the
Copeland Kick-back Act and the Davis-Bacon Act. The existing regulations were published in the Federal Register of March 1, 1941. They
are applicable to contractors and subcontractors on public buildings
and public works and on buildings and works financed in whole or in
part by loans or grants from the United States. The purpose of the
regulations is to make sure that persons working on such projects
receive the full amount of their weekly wages unconditionally and
without subsequent deduction or rebate. The Department of Labor had
construed these regulations to prevent voluntary payroll deductions
for the purchase of Defense Savings Bonds and Stamps in situations
to which the Copeland Kick-back Act or the Davis-Bacon Act were anplicable.

However, at the instance of the Treasury Department, the Departnent of Labor agreed to include a provision authorizing such deductions

in the new revision of its regulations on the subject. Because of the

many mattors which are being considered in connection with this revision
there has been much greater delay than had originally been anticipated
in promulgating the new regulations. At the urgent request of the
Treasury Department, therefore, the Department of Labor has issued a
special regulation amending the existing regulations on the subject
specifically to authorize voluntary payroll deductions made under
Payroll Allotment Plans installed for the convenient and systematic
purchase of Defense Savings Bonds and Stamps by employees in cases

where this might otherwise have been within the prohibitions of the
present regulations. This amendment of the existing regulations became effective December 9, 1941, upon filing with the Federal Register,
and was published in the Federal Register of December 10, 1941, at

ADEFENSE

BUY
NITED

page 6329. It includes within the meaning of the term "permissible
deductions", as used in those regulations:
the the * deductions for the purchase of United States
Defense Bonds and Stamps and United States Tax Savings

Notes: Provided, That neither the contractor nor sub-

244
-2contractor nor any person acting in his behalf directly
or indirectly derives any benefit or profit from the
transactions; and Provided further, That such deductions

have been voluntarily agreed to by the employees in
writing and in advance."

This special regulation of the Department of Labor abolishes
any restrictions of the previous regulations which might have prevented the installation of Payroll Allotment Plans for the purchase
of Defense Savings Bonds and Stamps by employees working for con-

tractors or subcontractors engaged in shipbuilding, or other construction of public buildings and public works, or buildings and
works financed in whole or in part by loans or grants from the
United States.

L. M. Olney,

Associate Field Director,
Defense Savings Staff.
Attachments:

(1) Copy of Regulation issued by Department of Labor
as published March 1, 1941 in the Federal Register.
(2) Copy of Revised Regulation published December 10,

1941 in the Federal Register.

245
FEDERAL REGISTER - Wednesday, December 10, 1941
TITLE 29-LABOR

SUBTITLE A OFFICE OF THE SECRETARY OF LABOR

PART 2 - REGULATIONS APPLICABLE TO CONTRACTORS AND SUBCONTRACTORS ON PUBLIC
BUILDING AND PUBLIC WORK AND ON BUILDING AND WORK FINANCED IN WHOLE
OR I.l PART BY LOANS OR GRANTS FROM THE UNITED STATES.
ALENDMENT TO THE REGULATIONS WITH RESPECT TO PAYROLL DEDUCTIONS FOR UNITED STATES
DEFENSE BONDS, STAIPS, AND TAX SAVINGS NOTES.

Authority for Regulation

Pursuant to and by virtue of the authority conferred by section 2 of the
act of June 13, 1934 1/ and section 9 of Reorganization Plan No. IV, effective

June 30, 1940, in accordance with section 4 of H. J. Res. 551 (Public Res. No.
75), approved June 4, 1940, 2/, SD 2.2 (c) of the Regulations of March 1, 1941 3/,
is hereby emended by adding at the and of subparagraph (2) of § 2.2 (c), after
the words "in writing and in advance," the following subdivision to be effective
immodiately upon filing with the FEDERAL REGISTER.
Regulation

3 2.2. Definitions.
4

*

is

(c) 0 o < (3) deductions for the purchase of United States Defense
Bonds and Stamps and United States Tax Savings Notes: Provided, That neither

the contractor nor subcontractor nor any person ncting in his bahalf directly or
indirectly dorivas any benefit or profit from the transactions; and Provided

further, That such deductions have boon voluntarily agreed to by employous in
writing and in advance.

FRANCES PERKINS,

Secretary.

F.R. Doc. 41-9269; Filed, December 9, 1941; 11:33 a.m

7

Soc. 2, 48 Stat. 948, 40 U.S.C., Sup., 276 (c).
2/ Scc. 9, 54 Stnt. 1236; Sec. 4, 54 Stat. 231; 5 U.S.C., Sup., 133 (u).
3/ 6 F.R. 1210.

246
TITLE 29-LABOR
SUBTITLE -OFFICE OF THE SECRETARY OF LABOR
CODE OF FEDERAL REGULATIONS
PART 2

Regulations Applicable to Contractors
and Subcontractors on Public Building
and Public Work and on Building and
Work Financed in Whole or in Part by
Loans or Grants from the United States
(Kick-back Statute)

I

STATES

of

Pursuant to section 2 of the act of
June 13, 1934 (48 Stat. 948), and
section 9 of Reorganization Plan
No. IV. effective June 30, 1940, in
accordance with section 4 of H.J.

Res. 551 (Public Res. No. 75).
approved June 4, 1940

Published in Federal Register March 1. 1941

REGULATIONS APPLICABLE TO CONTRACTORS AND
SUBCONTRACTORS ON PUBLIC BUILDING AND PUBLIC
WORK AND ON BUILDING AND WORK FINANCED IN
WHOLE OR IN PART BY LOANS OR GRANTS FROM THE
UNITED STATES. (KICK-BACK STATUTE)
SECTION 1.° Weekly affidavit with respect to wages.-(a) Each
contractor or subcontractor engaged in the construction, prosecution,
completion. or repair of any public building or work, or building or
work financed in whole or in part by loans or grants from the United
States shall furnish each week an affidavit with respect to the wages
paid during the preceding week.

(b) Said affidavit shall be executed and sworn to by the contractor
of subcontractor or by the authorized officer or employee of the contractor or subcontractor who supervises the payment of wages, and
-hall be in the following form:
STATE OF

County of

88.7

(name of party signing aflidavit),

(title). being duly sworn. do depose and say That I pay or super-

I

the the payment of the persons employed by

constructure or subcontractor) on the

(build-

Ing or work) that the attached pay roll sets out accurately and completely the
name. occupation, and hourly wage rate of each person so employed for the
day of

weekly pay roll period from the

194.

to

194 the total number of hours worked
by him during such period. the full weekly wages earned by him and any
the

day of

deductions made from such weekly wages. and the actual weekly wages paid to

him: that no rebates have been or will be made either directly or indirectly to
it on behalf of said

(contractor

subcon-

or

tractor) from the full weekly wages earned as set out on the attached pay roll:
and that DO deductions other than the permissible deductions (as defined in the
Regulations under the "Kick-back Act 48 Stat. 948) described in the following
caragraph of this affidavit. have been made or will be made. either directly or
adirectly. from the full weekly wages earned as set out on the attached pay roll.
(Paragraph describing deductions if any.)

(Signature and Title)
Swire to before me this

day of

194

(c) Each weekly affidavit with attached pay roll shall be delivered
within seven (7) days after the regular payment date of the pay roll
to the Government representative in charge at the site of the building
or work. or. if there is no such Government representative, shall be

mailed within such time to the Federal agency contracting for or
financing the building or work. After such examination and check
a may be made. such affidavit and pay roll, or a copy thereof. together

-

with a report of any violation. shall be transmitted by such Federal
15: Them regulations are issued under the authority conferred in section 2. 48 Stat. 948

**** section
of Res.
Georganizati
PlanRes.
No. No
effective
June 30 June
1940 accordance
withand
H J.
001 Public
(5) approved
1940, The act
Restandation Plan No IV are set forth in full in the appendix to these
1

PART 2-REGULATIONS

PART 2-REGULATIONS

2

3

agency to the United States Department of Labor at Washington, D.C.,
unless otherwise arranged with the Department.
(d) At the request of the Federal agency contracting for or financ.
ing the building or work, the contractor or subcontractor shall furnish

and deliver, together with the original, a copy of the affidavit and
pay roll required by this section.
SEC. 2. Definitions.-As used in the foregoing section:
(a) The words "construction, prosecution, completion. or repair"
comprehend all types of work done on the particular building or work
at the site thereof including, without limitation, altering, remodeling.
painting and decorating, and fabricating, assembling and installing
articles, apparatus and equipment used on or installed in the building
or work. They comprehend also the transporting of materials and
supplies to or from the building or work, and the manufacturing or
furnishing of materials, articles, supplies, or equipment on the site
of the building or work, by persons employed at the site by the con
tractor or subcontractor engaged in work at the site.
(b) The words "building or work" include, without limitation (in
addition to buildings) structures and improvements of all types, such
as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, railways, ships, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties,

breakwaters, levees, and canals; and dredging, shoring, scaffolding.
drilling. blasting, excavating, clearing, and landscaping work. Unless conducted in connection with and at the site of such a building or
work as is described in the foregoing sentence, the manufacture or
furnishing of materials, articles, supplies, or equipment (whether or
not the United States acquires title to such materials, articles, supplies, or equipment during the course of the manufacturing or furnishing or owns the materials from which they are manufactured or fur-

nished) is not a "building or work" within the meaning of these
regulations.

(c) The term "permissible deductions" includes (1) deductions required by statute, such as the Social Security Act, or by court order:
and (2) deductions from wages of persons permanently employed by
shipbuilding companies and by concerns such as public utilities not
normally engaged in performing construction contracts, for death.
disability, sickness, hospitalization, retirement, or unemployment insurance: Provided. That the total amount of such deductions is paid
for premiums to insurance companies or mutual benefit associations
neither directly nor indirectly under the control of the contractor or
subcontractor and that no portion of such premiums, whether in the
form of a commission or otherwise, is returned to the contractor or
subcontractor; and Provided further, That such deductions have been
voluntarily agreed to by such employees in writing and in advance.
No other deductions are permissible within the meaning of these regulations, including, without limitation, deductions for board, lodging.
commissary purchases, hospitalization benefits, hospital bills, voluntary wage assignments, group insurance, rentals, loans, or loss of tools.
Bona fide cash wage advances are permissible.
(d) The term "Federal agency" includes all executive departments, the

independent establishments, agencies, and instrumentalities of
United States, corporations all of the stock of which is beneficially
owned by the United States, and the District of Columbia.

SEC. 3. Notice to contractors.-Contracts entered into after the

tive date of these regulations shall contain provisions effec(

bind
the contractors to comply with the requirements of the appropriate regulations to
if applicable.

SEC. 4. Effective date: existing regulations superseded.-These

lations shall be effective sixty (60) days after publication reguthe Federal Register and shall supersede from that date the thereof in
and amended regulations issued jointly by the Secretary of regulations
ury and the Secretary of the Interior on January 8. 1935. and the March Treas-

1937. respectively (24 C. F. R. 604; 41 C. F. R. 21) Provided, 27.
the parties to contracts or subcontracts entered into prior to That
tive date may, if they so agree, comply with these regulations the effecof
withregulations
the superseded
at any time after publication instead of
these
in theregulations
Federal Register.
FRANCES PERKINS,

Secretary.

APPENDIX TO REGULATIONS PART 2
(Referred to in section 1)
To effectuate the purpose of certain statutes concerning rates of pay for labor,
by making
it unlawful toand
prevent
anyone
from receiving the compensation contracted
for thereunder.
for other
purposes

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled. That whoever shall
induce any person employed in the construction, prosecution, or com-

pletion of any public building, public work, or building or work

financed in whole or in part by loans or grants from the United States,

or in the repair thereof to give up any part of the compensation to
which he is entitled under his contract of employment, by force, intimidation. threat of procuring dismissal from such employment, or by
any other manner whatsoever, shall be fined not more than $5,000. or
imprisonment not more than 5 years, or both.
SEC. 2. To aid in the enforcement of the above section, the Secretary

of the Treasury and the Secretary of the Interior jointly shall make
reasonable regulations for contractors or subcontractors on any such
building or work, including a provision that each contractor and subcontractor shall furnish weekly a sworn affidavit with respect to the
wages paid each employee during the preceding week.
Approved June 13, 1934.
SECTION 9 OF REORGANIZATION PLAN NO. IV. EFFECTIVE JUNE 30.
1940, IN ACCORDANCE WITH SECTION 4 OF H. J. RES. 551 (PUBLIC
RES. NO. 75), APPROVED JUNE 4. 1940

SEC. 9. Transfer of certain functions relating to enforcement of
wage payments on public construction.-The functions of the Secretary of the Treasury and the Secretary of the Interior under section 2
of the act of June 13, 1934, entitled "An act to effectuate the purpose
of certain statutes concerning rates of pay for labor, by making it unlawful to prevent anyone from receiving the compensation contracted
for thereunder, and for other purposes" (48 Stat. 948), are transferred
to the Secretary of Labor, and shall be administered by him or under
his direction and supervision by such agency in the Department of
Labor as the Secretary shall designate.
4

GOVERNMENT

247

December 31, 1941

My dear Senator:

I AIT writing to Ask if you would be willing to help us

in 8 special way in our Defense Savings Bond program.

to are publishing this month the first of six issues of

an eight-pa e rotogravure picture magazine called "Our America".

Tis little publication will be distributed by postal carriers

and through the mail to about twenty million homes. I attach

a copy
of like.
the first issue, just off the press, to show you
what
it is

For our next issue we should like very much to have a
short statement of about 150 words from a leading member of
each party in the Senate. These statements would show the

unity of spirit and of purpose in Congress in this time of
crisis. I can think of no more appropriate contributor from
the Democratic side than you, not only as 8 former Secretary
of the Treasury, but as one who has striven so hard for more
than two years to make the American people understand the

meaning of this war. I am also writing to Senator Austin at
this
timestatement.
to suggest that he speak for the Republican side with
E
similar
If this ices appeals to you, would you be willing to see
Mr. Julian Street, Jr., of the Treasury Department with in the
next few days to discuss the statement with him? lie could
come at any time that suited your convenience. Please let me
know soon, as the matter of the editorial deadline is rather
pressing.

All good wishes to you for the New Year.
Sincerely,
(Signed) I. Morgosthese in.

The Honorable Carter Glass,

nited States Senate,
ashington, D. C.

to Messenger Larges t is

n.m.c.
copies to chompion

UNITED STATES SAVINGS BONDS

Comparative Statement of Sales During

Last Twenty-three Business Days of December, November and October 1941
(October 6-31, November 1-29, December 3-30)

On Basis of Issue Price

(Amounts in thousands of dollars)

:

$ 37.997

$ 34,394

214,863

71,478

70,441

$ 56,412
143,385

Series G - Banks

309,272
29,009
132,194

109,475
18,978
105,035

105,335
19,133
99,548

199,797
10,031
27,159

Total

$470.475

$233,487

$224,016

$236,988

Series E - Total

Series F - Banks

: October

$ 3,103

Source:

3.9%

1,037

200.6

1.5

4,140

182.5
52.9
25.9

0.3

5.5

101.5%

4.2%

5,487

$ 9,471

Office of the Secretary of the Treasury, Division of Research and Statistics.

over
October

148.5%

155

-

over

: November

:

$ 94,409

Series E - Banks

:

Series E - Post Offices

November
over

:

:

: October

:

:

:

: November

December
over
November

Percentage of Increase
or Decrease (-)
: December : November

:

: December

or Decrease (-)

:

Item

Amount of Increase

Sales

3.9

December 31, 1941.

All figures are deposits with the Treasurer of the United States on account of proceeds
of sales of United States savings bonds.
Note: Figures have been rounded to nearest thousand and will not necessarily add to totals.

Daily Sales - December 1941

On Basis of Issue Price

(In thousands of dollars)
Post Office

Date

December 1941
1

2

3

4

5

6

8

9

10
11
12

13

Bank Bond Sales

Bond Sales

All Bond Sales

Series E

Series E

Series F

Series G

Total

Series E

Series F

Series G

Total

$ 2,976

$ 3,904

$ 1,333

$ 7,220

$ 12,458

1,229
1,510
2,411
2,015
1,001

2,592
2,734
4,036
4,805
2,293

$ 6,880

5,750
5,289
7.530
12,357
2,776

$ 7,220

8,964
8,893
12,292
18,314
5,725

$ 1,333

$ 15,434

623
870

3,821
4,244
6,447
6,820
3,294

623

5.750
5,289
7,530
12,357
2,776

10,193
10,403
14,703
20,329
6,726

3,282
1,828
1,651
1,909
2,773
2,767

4,764
3,877
3.566
4,763
5,012
5,030

1,011

3,810
4,996
2,612
3,423
3.768
2,120

9.585
9,475
6,668
8,905
9,437
7,734

8,046
5,706
5,217
6,672
7.785
7.798

1,011

3,810
4,996
2,612
3,423
3,768
2,120

12,866
11,304
8,320
10,814
12,211
10,501

7,185
2,113

1,022

17,162
6,750
17,257
19,793
16,591
19,081

18,864
6,069
13,914
17,012
16,201
15,981

1,022

1,180
1,337
1,172
1,270

4,462
1,901
6,327
6,826
5,214
5,921

1,180
1,337
1,172
1,270

4,462
1,901
6,327
6,826
5,214
5.921

24,347
8,863
21,421
25,175
22,586
23,172

726

1,152
656

601
491
719
658

584

870
726

1,152
656

601

491
719

658
584

19

4,164
5,382
5,995

20

4,091

11,679
3.956
9.750
11,630
10,205
11,890

22

10,916
4,393
3,613

23,269
10,642
13,085

2,490
1,972
1,629

8,067
6,831
8,900

33,826
19,445
23,613

34,185
15,035
16,698

2,490
1,972
1,629

8,067
6,831
8,900

44,742
23,838
27,226

9,593
3,503
8,852
3,460

29,934

3,536

6,412

43,547
10,197

3,060
1,450

10,076
3,255

37,661
14,115

39.527
9,915
33,100
10,743

530

24,247
7,283

10,076
3,255
10,353
5,382

3,536

530

3,060
1,450

10,353
5,382

53,140
13.700
46,513
17,575

$221,359

$ 30,965

$145,165

$397,488

$319,973

$ 30,965

$145,165

$496,102

15
16
17

18

23

24
26
27
29
30

Total

$ 98,614

893

893

Office of the Secretary of the Treasury, Division of Research and Statistics.

December 31, 1941.

Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales
of United States savings bonds.
Note: Figures have been rounded to nearest thousand and will not necessarily add to totals.

250
TREASURY DEPARTMENT

CONFIDENTIAL

INTER OFFICE COMMUNICATION

DATE December 31,1941
TO

FROM

Secretary Morgenthau

Mr. Haas EA

Subject: Supply of Series E Savings Bonds in the Field
1. Attached to this memorandum are (1) a
chart and table showing the number of days' supply

of Series E savings bonds in the field, (2) a table

summarizing telegrams received this morning showing
the number of bonds requisitioned by sales agents
that the Federal Reserve Banks and the Post Office

Department's central office were unable to fill

last night, and (3) a table showing the number of
bonds delivered each day since December 1 by the
Bureau of Engraving and Printing.

2. A comparison of the tables attached to this

memorandum with the tables submitted to you yesterday

indicate that practically no progress was made yesterday in liquidating local shortages of bonds in the
field. In other words, yesterday's production of
375,000 bonds by the Bureau of Engraving and
Printing was just about offset by new requisitions
received by the Federal Reserve Banks and the Post
Office Department's central office. New requisitions
received yesterday were far in excess of sales, it

should be pointed out, inasmuch as sales for the day
required only about 150,000 pieces of bonds.

3. The Bureau of Engraving and Printing advises us that they expect production of Series E
savings bonds to rise to 400,000 pieces tomorrow

and to 410,000 pieces on January 2.
Attachments

251

93

93

6

4
16

5

24

17

76

34

17

232

302

919

Total

-

-

-

-

-

-

-

-

-

-

-

2

-

1

2

-

1

3

-

$1,000

9

-

-

2

-

3

4

21
$500

9

1
56

10

7

-

4

-

32

30

17

1
279

112

$100

Denomination

-

19

$50

22

6

6

6

2

5

57

5
20

93

11

252

-

37

-

40

6

3

$25

4

-

(In thousands)

33

12

97

22

110

364

A
of business, December 30, 1941

Agente' requests for savingo DOL. unfilled et the close

Boston

New York

Philadelphia

Cleveland

Richmond

Atlanta

Chicago

St. Louis

Minneapolis

Kansas City

Dallas

San Francisco

Federal Reserve Banks

Post offices

Total

Office of the Secretary of the Treasury, Division of Research and Statistics.

-

92
160

161

164

160

193

247

120

200

260

260

-

120

-

110

300

325

340

270

-

110

-

110

-

130

130

130

130

-

-

75

all
Total

310

355

375

375

denominations

-

-

-

-

-

-

-

-

30

15

-

5

10

10

-

10

-

10

$1,000

45

10

10

10

10

10

10

10

10

50

55

55

55

155

-

-

70

-

10

-

50

80

-

50

-

-

-

-

-

50

-

50

-

50

-

-

-

-

-

50

-

50

40

-

25

50

-

25

15

-

$100

5

-

10

10

-

10

-

10

-

$500

10

25

35

75

75

85

25

35

40

so

50

120
Denomination

(In thousands)

-

30

-

10

-

-

10

-

10

-

10

-

10

-

10

-

10

20

50

80

-

$50

80

95
100

-

75

75

60

50

50

-

$25

50

15

30

40

80

44

80

28

92

92

121

120

150

175

160

180

19

20

21

22

23

220

225

180

25

26

240

200

205

200

28

29

30

Number of pieces produced December 1, 1941 to date

1

2

3 4

5

6

7

8

9
10

11

12

13

14

15

16

17

18

24

27

31

Day

December

Division or Research and Statistics.

Office of the Secretary or the Treasury,

$1,000

65.5

64.0

67.5

67.7

68.3

67.0

67.5

66.8

66.3

65.8

66.2

73.2

71.1

73.2

71.5

79.4

99.7
106.9

105.5

104.1

102.7

98.4

97.0

97.0

94.5

93.5

96.4

95.4

96.3

102.7

December 29, 1941

$500

74.5

76.0

78.1

78.3

78.9

77.6

78.1

77.4

76.9

76.4

76.8

76.1

78.3

87.9

99.8
101.5

98.3

96.9

95.5

95.5

92.6

91.3

89.8

89.8

86.4

87.4

89.4

88.4

101.0

89.4

December

$100

29.5

29.8

31.2

30.4

31.9

31.6

31.6

32.2

33.0

33.9

34.6

35.2

34.8

36.6

35.0

37.6

36.4

34.9

33.5

32.1

32.4

30.1

29.7

37.9

39.3

28.9

27.8

29.8

27.4

40.5

43.1

41.3

40.4

27.8

30.6

29.4

31.6

34.1

33.8

35.3

25

26

27

28

29

30

29.3

27.8

28.3

Denomination

$50

$25

44.1

23.0

44.1

23.6

44.1

23.9

43.8

24.0

43.6

43.3

43.3

42.9

24.0

23.8

23.8

23.7

42.7

23.4

43.2

43.3

42.6

23.3

23.2

23.6

10

11

12

42.0

39.8

38.6

42.0

40.3

24.4

24.9

24.3

24.1

24.1

13

14

15

16

17

37.1

23.7

35.7

36.0

38.4

23.8

24.3

26.5

25.6

26.5

19

20

21

22

23

43.0

43.2

45.6

(Based on sales of $300 millions per month)

2

3 4

5

NO

7 8 9
18

24

31

Date

December 1

Division of Research and Statistics.

Office of the Secretary of the Treasury,

254
TREASURY DEPARTMENT
WASHINGTON

December 31, 1941.

MEMORANDUM FOR THE SECRETARY:

Herewith I hand you a report from Harford

Powel, giving the results of the Gallup survey
which you requested a few days ago.

GRAVES

255

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE Dec. 31, 1941
TO

FROM

Mr. Graves
Mr. Powel

The American Institute of Public Opinion (Dr. George
Gallup) today reported as follows on public preference as
to a name for Government Savings Bonds:

66% prefer DEFENSE SAVINGS BONDS
34% prefer WAR SAVINGS BONDS

The people interviewed were largely residents of
large and small towns east of the Rockies, and were
about equally divided into the upper and middle income
groups (over $60 a week and over $30 a week, respectively).
This survey was reported to me over the telephone,

and will be later reported in writing.

HIP

256
-2In making their survey, the Gallup organization
added two additional questions for their own information.

1. All persons interviewed were finally asked if

they could think of a better name than either DEFENSE
or WAR Savings Bonds.

85% said "No"

15% offered the following names, in order of
popularity:

1. Liberty Bonds
2. Victory Bonds
3. Freedom Bonds

There were scattering suggestions for Security Bonds,

American Savings Bonds, etc.

2. All were asked what, in their opinion, is the
most important purpose of the bonds which the Government

is offering now.

31% said "for defense."
21% said "to win the war."
14% said "to buy munitions, etc."
3% said "to give people a good investment."

2% said "to prevent inflation."

The remaining people offered no illuminating opinion.

257
December 31, 1941

Dear Bob:

I am simply delighted at the
prompt manner in which you handled these
orders.

Would you be kind enough to let
me know how many other orders you have

placed or are about to place, for trucks,
in the near future.

Yours sincerely,
(Signed) Henry

honorable Robert P. Patterson,
Under Secretary of war,
ar Department,
Washington, D. C.

By

M

zer Sunges +:30

file

258
WAR DEPARTMENT

OFFICE OF THE UNDER SECRETARY
WASHINGTON. D.C.

December 30th, 1941.

Dear Henry:

We have placed an order for 65,000 3/4-ton trucks

today with Chrysler. This is one of a number of similar
contracts for motor vehicles which we placed today with various
manufacturers.

Sincerely yours,

Rhappin
Robert P. Patterson,
Under Secretary of War.

Honorable Henry Morgenthau, Jr.,

Secretary of the Treasury.

"kapin Thing"

Go

U.S.A.

259
December 31, 1941

Dear Grace:

I don't know whether you had a
chance to give the President my message

about the order the Chrysler Corporation

got, but if you did not, here is the last
chapter which just came over the United

Press ticker. This is certainly good

news for the 25,000 employees of the Dodge
plants.
I would
appreciate your showing
this to the
President.
Happy New Year.

Yours sincerely,

1s/ H. Margenthan, Jr.

Miss Grace Tully,
The White House.

Sent by Sevent Serine
3:30 P.M.-

OIT. -- PRESIDENT 14. T. KELLER OF CHRYSLER, CORP. ANNOUNCED
OF A GOVERNMENT ORDER FOR 80,000 NEW TYPE ARMY VEHICLE

RS133P
D TO
COST BETWEEN $80,000,000 AND $100,000,000.

AD

ER, DETROIT

HOUR

SAID THE NEW ORDER WOULD PROVIDE APPROXIMATELY 12,000,000
WORK FOR ABOUT 25,000 EMPLOYES OF ITS DODGE MAIN PLANT AND
DODGE TRUCK PLANT AND THE HIGHLAND PARK PLANT OF CHRYSLER CORPORATION.

SAID APPROXIMATELY $1,000,000 WILL BE SPENT ON TOOLING UP FOR

MANUFACTURE OF THE NEW TACTICAL VEHICLE AND THAT THE PREPARATORY
WORK WOULD PROCEED ON A 24-HOUR 7-DAYS A WEEK BASIS IN ORDER TO GET
PRODUCTION UNDER WAY EARLY IN APRIL. HE SAID THE ORDER PROBABLY
WOULD
BE COMPLETED
THETIME.
MIDDLE OF NEXT SUMMER AND ANTICIPATED
ADDITIONAL
ORDERS BYBY
THAT
12/31--RS135P

261
DEC 31 1941

Through the Bureau of the Budget
Attorney General

Division of the

Federal Register.

My dear P. President:
There is enclosed herewith a proposed Executive

Order to give the Treasury Department the same flexible

authority In connection with its contracts as is given
the &P Department, the Navy Department, and the Maritime
Commission by Executive Order No. 9001 of December 27,

1941, Issued pursuent to Title II of the "First ar
Powers Act, 1041".

As you know, the Treasury Department is exercising

functions in connection with the prosecution of the war
effort and the same considerations which support the

ranting of this authority to the ar and Navy Departments
and the aritime Commission are equally applicable to the
panting of such powers to the Treasury epartment.
I reconsend that you issue this Order.

Faithfully yours,
(Signed) Margostkau, diff

Secretary of the Tressury.
The President,
The White House.

he from Mer Germandoffen
TAM:WJB:1 S

12/30 Al

262

EXECUTIVE ORDER

.....
EXTENDING THE PROVISIONS OF EXECUTIVE ORDER

NO. 9001 OF DECEMBER 27, 1941, TO TREASURY
DEPARTMENT CONTRACTS

By virtue of the authority vested in me by the Act of
Congress entitled "An Act to expedite the presecution of the
War effort", approved December 18, 1941, and as President of
the United States and Commender-in-thief of the Army and Havy

of the United States, and dooming that such action will

facilitate the presecution of the War, I do hereby extend
the provisions of Executive Order No. 9001 of December 27,

1941, to the Treasury Department with respect to all contracts
made OF to be made by such Department, and for that purpose,

and subject to the limitations and regulations contained in
such Executive Order, I hereby authorise the Secretary of the
Treasury, and such officers and employees of the Treasury
Department as he may designate, to perform and exercise all

of the functions and powers vested in and granted to the Far
Department, the Navy Department, and the Maritime Commission
by such Executive Order.

THE WHITE HOUSE,

January , 1942.

263

FEDERAL REGISTER, Tuesday, December 30, 1941
This order shall be subject to the order of December 18. 1936. of the Secre-

of the Interior. establishing Oregon

Grazing tary District No. 7. After the present national emergency has been officially

terminated this order shall be without
effect upon notice to the War Depart.
ment by the Secretary of the Interior
that the above-described land is needed
for grazing or other uses by the Depart-

ment of the Interior.

FRANKLIN D ROOSEVELT
THE WHITE HOUSE

December 26, 1941.
No. 89991

IP R Doc 41-9767:
Filed
December 27. 1941;
9:45
m.)

EXECUTIVE ORDER
WITHDRAWING PUBLIC LAND FOR USE OF

THE WAR DEPARTMENT FOR MILITARY

time. To accomplish this objective it
is necessary that the Departments of
War and the Navy and the United States

Maritime Commission cooperate to the
fullest possible degree with the Office of
Production Management in the endeavor

to make available for the production of
war material all the industrial resources
of the Country. It is expected that in
the exercise of the powers hereinafter
granted. these Agencies and the Office
of Production Management will worktogether to bring about the conversion
of manufacturing industries to war production, including the surveying of the

war potential of industries, plant by

plant: the spreading of war orders: the
conversion of facilities; the assurance of
efficient and speedy production: the development and use of subcontracting to
the fullest extent and the conservation
of strategic materials
TITLE I

PURPOSES
OREGON

By virtue of the authority vested in
me as President of the United States, it

is ordered that, subject to valid existing rights, the following-described public land in the State of Oregon, be, and
It is hereby withdrawn from all forms of

appropriation under the public-land
laws. including the mining laws, and
reserved for the use of the War Department for military purposes:
WILLAMETTE MERIDIAN

1. By virtue of the authority in me

vested by the Act of Congress. entitled

"An Act to expedite the prosecution of

the War effort", approved December 18.
1941, (hereinafter called "the Act") and

as President of the United States and
Commander-In-Chief of the Army and
Navy of the United States, and deeming
that such action will facilitate the prosecution of the war I do hereby order that
the War Department, the Navy Department, and the United States Maritime

45. sec. 22; containing 640 acres.

Commission be and they hereby respec-

This order shall be subject to the order
of December 18. 1936. of the Secretary of

of the amounts appropriated therefor to

the Interior establishing Oregon Graz-

ments or modifications of contracts here-

ing District No. 7. After the present
mational emergency has been officially

terminated this order shall be without
effect upon notice to the War Department by the Secretary of the Interior
that the above-described land is needed

for grazing or other uses by the Depart-

ment of the Interior

tively are authorized within the limits

enter into contracts and into amend-

tofore or hereafter made. and to make
advance, progress, and other payments
thereon, without regard to the provisions
of law relating to the making performance, amendment, or modification of
contracts. The authority herein conferred may be exercised by the Secretary

of War. the Secretary of the Navy. or

FRANKLIN D ROOSEVELT
THE WHITE HOUSE

December 26. 1941.
(No. 90001

7 R Doe 41-9768 Filed December 27. 1941;
m.)

EXECUTIVE ORDER
AUTHORIZING THE WAR DEPARTMENT THE

Nerry DEPARTMENT AND THE UNITED
STATES MILITIME COMMISSION To PERFORM THE FUNCTIONS AND EXERCISE THE

POWERS DESCRIBED IN TITLE II OF AN
Act APPROVED DECEMBER

Act To EXPEDITE
OF THE WAR
PRESERVING ECTION 'AN EFFORT", 18, THE 1941, PROS- EN- AND

REGULATIONS FOR THE Ex-

OF SUCH FUNCTIONS AND POWERS

successful prosecution of the war

in all-out industrial mobilizathe United States in order that
necessary to win the war

6787

may be produced in the shortest possible

the United States Maritime Commission
respectively or in their discretion and by
their direction respectively may also be
exercised through any other officer or of-

buildings, vessels, arms, armament,
equipment, or supplies of any kind. or
any portion thereof, including plans,

spare parts and equipment therefor, ma-

terials, supplies, facilities, utilities,
machinery, machine tools, and any other

equipment, without any restriction of
any
kind,
either as to type, character,
location
or form.
3. The War Department, the Navy De-

partment, and the United States Mari-

time Commission may by agreement

modify or amend or settle claims under
contracts heretofore or hereafter made.
may make advance, progress, and other

payments upon such contracts of any
percentum of the contract price, and
may enter into agreements with contractors and/or obligors, modifying or

releasing accrued obligations of any sort.
including accrued liquidated damages or

liability under surety or other bonds

whenever, in the judgment of the War
Department, the Navy Department, or
the United States Maritime Commission

respectively the prosecution of the war
is thereby facilitated Amendments and
modifications of contracts may be with

or without consideration and may be
utilized to accomplish the same things
as any original contract could have accomplished hereunder, irrespective of the

time or circumstances of the making of
or the form of the contract amended or
modified, or of the amending or modify.

ing contract. and irrespective of rights
which may have accrued under the con-

tract. or the amendments or modifications thereof.

4. Advertising, competitive bidding

and bid, payment, performance or other

bonds or other forms of security. need

not be required.

TITLE II

Pursuant to Title II of the Act and for
the protection of the interests of the
United States, I do hereby prescribe the
following regulations for the exercise of
the authority herein conferred upon the
War Department, the Navy Department,

and the United States Maritime Com-

mission.

1. All contracts and all purchases made

ficers or civilian officials of the War or
the Navy Departments or the United
States Maritime Commission The Secretary of War. the Secretary of the Navy,
or the United States Maritime Commission may confer upon any officer or officers of their respective departments, or
civilian officials thereof, the power to
make further delegations of such powers
within the War and the Navy Departments, and the United States Maritime

forth In case the War Department, the
Navy Department, or the United States
Maritime Commission shall deem any

2. The contracts hereby authorized to
be made include agreements of all kinds

purchase or contract to be restricted
confidential or secret in its nature by
reason of its subject matter. or for other

Commission

(whether in the form of letters of in-

tent, purchase orders, or otherwise) for

all types and kinds of things and servIces necessary. appropriate or convenient

for the prosecution of war, or for the invention, development, or production of,
or research concerning any such things,

including but not limited to, aircraft,

pursuant to the Act and this Executive
Order shall be reported to the President

of the United States. Such reports shall
be made at least quarter-annually, provided, however, that purchases or contracts of less than $100,000 may be consolidated in such reports with other such
purchases and need not be separately set

reasons affecting the public interest. such

purchases or contracts shall not be included with those described in the report just mentioned but shall be included

in a separate report containing such restricted. confidential or secret purchases

or contracts. The Secretary of War. the
Secretary of the Navy, and the United

FEDERAL REGISTER, Tuesday, December 30, 1941

6788

States Maritime Commission shall make

puolic so much of such reports (other
than those reports covering restricted,
confidential, or secret contracts or purchases) as they shall respectively deem
to be compatible with the public interest.

2. Notwithstanding anything in the
Act or this Executive Order the War Department, the Navy Department, and the

United States Maritime Commission
shall not discriminate in any act performed thereunder against any person
on the ground of race, creed, color or
national origin, and all contracts shall
be deemed to incorporate by reference a

provision that the contractor and any
subcontractors thereunder shall not so
discriminate.

3. No claim against the United States

such act, the Davis-Bacon Act, as
amended (49 Stat. 1011). the Copeland
Act, as amended (48 Stat. 948). and the
Eight Hour Law, as amended by the Act

of September 9. 1940 (Public No. 781,
76th Congress) If otherwise applicable
shall apply to contracts made and per-

formed under the authority of this
Order.
FRANKLIN D ROOSEVELT
THE WHITE HOUSE.

December 27, 1941.
(No. 9001]
(F. R. Doc. 41-9798 Filed December 29. 1941;
11:11 a. m.)

Rules, Regulations, Orders

arising under any purchase or contract

made under the authority of the Act

shall be assigned except in accordance
with the Assignment of Claims Act, 1940
(Public No. 811. 76th Congress, approved
October 9. 1940)

4. Advance payments shall be made
hereunder only after careful scrutiny to
determine that such payments will promote the national interest and under
such regulations to that end as the Secretary of War, the Secretary of the Navy.
or the United States Maritime Commission may prescribe

TITLE 7-AGRICULTURE
CHAPTER VIII-SUGAR DIVISION OF

PART 802-SUGAR DETERMINATIONS
DETERMINATION OF FARMING PRACTICES TO

BE CARRIED OUT IN CONNECTION WITH

OF HAWAII. PURSUANT TO THE SUGAR ACT
OF 1937, AS AMENDED (REVISED)

hereby issued:

Pursuant to the provisions of section

amended, the following determination is
I 802.33c Farming practices in connec-

tion with the production of the 1941 crop

sion, percentage brokerage. or contingent
fee. Breach of this warranty shall give the

of sugarcane in the Territory of Hawaii-

or. in its discretion to deduct from the contract price or consideration the amount of

Sugar Act of 1937. as amended shall be

(a) Application of fertilizer. The requirements of section 301 (e) of the

such commission percentage brokerage or

deemed to have been met with respect to

apply to commissions payable by contract

a farm in the Territory of Hawaii If fertilizer is applied as follows:
(1) Amount. There shall be applied
to land on which sugarcane is growing
during 1941 sufficient chemical fertilizer
to provide an average quantity of plant
food per acre fertilized equal to not less
than the greater of either 100 pounds or
60 percent of the average quantity of
plant food contained in the chemical fertilizer applied to similar land in 1939 or

contingent fees This warranty shall not

tors upon contracts or sales secured or made

through bona fide established commercial or
selling agencies maintained by the contractor for the purpose of securing business

6. Nothing herein shall be construed
to authorize the cost-plus-a-percentageof-cost system of contracting.

7. Nothing herein shall be construed
to authorize any contracts in violation
of existing law relating to limitation of
profits, or the payment of a fee in excess

of such limitation as may be specifically

set forth in the act appropriating the
funds obligated by a contract. In the
absence of such limitation, the fixed fee
to be paid the Contractor as a result of

any cost-plus-a-fixed-fee contract entered into under the authority of this
Order shall not exceed seven per centum

of the estimated cost of the contract
(exclusive of the fee as determined by

the Secretary of War, the Secretary of
the Navy, or the United States Maritime
Commission as the case may be).

1940. whichever is smaller, but any
amount by which such 60 percent exceeds 250 pounds shall not be considered

(2) Acreage requirement. The number of acres on which fertilizer is applied in 1941 shall be not less than 80
percent of the number of acres on the
farm on which sugarcane is planted, or
a ratoon crop of sugarcane is started, at
any time during 1941.

(b) Definitions. "Chemical fertiliz-

er" means commercial chemical fertilizer
of which not less than 15 percent of the

8. No contract or modification or
amendment thereof shall be exempt

gross weight consists of plant food.
"Plant food" means the aggregate

from the provisions of the Walsh-Healey
Act (49 Stat 2036) because of being en-

acid and water-soluble potash.

tered into without advertising or competitive bidding, and the provisions of

Done

at

Washington,

D.C. this 27a

day of December 1941

and the seal of the Department Aps
culture.
(SEAL)

CLAUDE R WICKARD

Secretary of Agriculture
[F. R Doc. 41-9792 Filed December
m.)

TITLE 14-CIVIL AVIATION
CHAPTER I-CIVIL AERONAUTICS
BOARD

[Amendments 20-24 to 20-30 incl. OTHE
Regulations

PART 20-PILOT RATING
AERONAUTICAL SKILL AND EXPERIENCE to
QUIREMENTS FOR A PILOT CERTIFICATE
TWO-CONTROL NON-SPINNABLE AIRPLATE

WITH NOSE WHEEL TYPE LANDING

THE PRODUCTION OF SUGARCANE DURING
THE CROP YEAR 1941. FOR THE TERRITORY

the following terms:

Government the right to annual the contract

1937,302.
(Sec as910;
issued April

MENT ADMINISTRATION

301 (e) of the Sugar Act of 1937, as

The contractor warrants that be has not

Production of Sugarcane During with

Crop Year 1941. for the Territory
Hawaii, Pursuant to the Sugar

THE AGRICULTURAL ADJUST-

5. Every contract entered into pursuant to this order shall contain a warranty by the contractor in substantially
employed any person to solicit or secure this
contract upon any agreement for a commis-

Carried Out in Connection

amount of nitrogen, available phosphoric
This determination supersedes the "De.

termination of Farming Practices to be

At a session of the Civil Aerongu
Board held at its office in Washing
D.C., on the 23rd day of December 1940

Acting pursuant to the authority
vested in it by the Civil Aeronautics
of 1938. as amended particularly
tions 205 (a). 601 and 602 of said
and finding that its action is desired
in the public interest and is necessary

carry out the provisions of and to de
cise and perform its powers and date
under, said Act, the Civil Aeronauta
Board amends the Civil Air Regular
as follows:
Effective January 1. 1942 Part 20
the Civil Air Regulations is amended
follows:

1. By amending 1 20.107 to read
follows:
& 20.107 No requirement is present

2. By amending I 20.126 to read
follows:

I 20.126 Aeronautical experience to

plicant shall have logged at least
hours of solo flight time: Provided
an applicant seeking a rating limite

THE

two-control non-spinnable airplanes
nose wheel type landing gear shall hair
logged at least 25 hours of solo flight

As part of the foregoing applicant
have logged at least 5 hours within
60 days immediately preceding the
of filing the application and at leaft which

hours of cross-country fiying of

at least 3 hours shall be solo, which dal
include at least one flight over a count (E)

net less than 50 miles with at least

full-stop landings at different pote
along the course. Such experience

be certified to by some person know
than the applicant. having direct
edge thereof. A graduate of the private school

pilot course of a certificated flying I
will be deemed to have met the

264
DEC 31 1941

My dear Mr. Smith:

I have your letter of December 27, 1941,

calling my attention to Title I of the First Mar
Powers Act, approved December 18, 1941, which

authorizes the President to make such transfers of
functions and consolidations of agencies as he deems
necessary for the national defense and the successful
prosecution of the war.

I as glad to have this information and I
shall be glad to canvass the Treasury to see whether
or not we have any proposals to make under Title I

of this Act.
Very truly yours,
(Signed) E. Morgenthav. Sr.

Secretary of the Treasury

The Honorable,

The Director of the Budget.

DWB:NLE

December 30. 1941

n.m.c.

Bell

from Smith Bally

265

December 27, 1941
CONFIDENTIAL

My dear Mr. Secretary:

Title I of the First War Powers Act, approved December
18, authorised the President to make such transfers of fune-

tions and
of agencies as he deens for
the
andconsolidations
the successful
war. changes so effected
national All administrative defense prosecution must necessary involve of the

"matters relating to the conduct of the war" and will terminate not later than six months after the end of the war.
The job of winning the war requires the most effective
administration possible. In some instances statutory restrictions may prevent the streamlined management of your
defense
work. If so, the First War Powers Act may provide a
means for making the necessary readjustments.

If you should wish to canvass the possibility of using
the First War Powers Act in solving such problems, I shall
be glad to arrange for a representative of the Bureau of the
Budget to work with any representative you may designate. In
any event, the Bureau will give immediate attention to any
proposals for action under Title I and will handle the clearance of the necessary Executive Orders with the President.
Yours sincerely,
(Signed) HAROLD D. SMITH

Director.
The Honorable,

The Secretary of the Treasury.
1001 DEC SA W

286
MEMORANDUM

TO:

FROM:

Secretary Morgenthau

Mr. Sullivan

Its

December 31, 1941.

SUBJECT: Proposed closing agreement involving construction of
South American airport facilities by Pan American
Airways.

At a conference on December 29, 1941, there were present: for
the War Department: Mr. Julius Amberg, Special Assistant to the
Secretary: General Cramer, Judge Advocate General; Major J. Alton
Hosch, Corps of Engineering; Captain Donald F. Horton, Judge Advocate General's Office: for the Treasury, Mr. John L. Sullivan,
Mr. Charles Kades, Mr. Samuel Hazard, and Mr. Robert B. Eichholz.

You will recall that the proposed contract between the War
Demartment and Pan American Airways provides that Pan American

would be reimbursed in "an amount equal to any income or excess

profits taxes imposed by the United States which, by virtue of

any change in law, may become payable by the contractor notwithstanding the closing agreement."

Mr. Amberg stated that the War Department's view was that
since the proposed closing agreement could by its terms only relate

to tax liabilities under the law as it now stands, there would be

no impropriety in entering into the agreement, inasmuch as the
agreement could not be interpreted as condoning the indemnification
clause to which the Treasury takes exception.

I stated that at the time the Treasury was given the authority
to enter into closing agreements respecting prospective tax linbilities, the Congress was particularly fearful that we might enter
into agreements which would tie the hands of future Congresses respecting changes in revenue legislation. I added that although we had
the legal power to enter into this agreement, we would not be exercising our discretion in a proper manner if the agreement resulted in
the execution of a contract which would accomplish the very purpose
that the Congress thought undesirable. I suggested that one way to
settle our differences would be to submit the question to the Ways
and Means and Finance Committees asking the Committees' opinion as

to whether such an agreement should be entered into from a policy
standpoint. This suggestion was objected to by the War Department

287

-2representatives on the ground that the fact that the Government is

indirectly paying for the South American airport facilities is one
of the most closely guarded of defense secrets and it would therefore
be inadvisable to make this project a matter of public record.
Mr. Amberg admitted that with respect to this contract the War
Department was in the position of "having a gun at its head." He
stated that Pan American was the only company in a position to

undertake construction of these airport facilities, that it would

do no good for the War Department to take over Pan American because

the State Department insisted that this construction be done privately
and not directly by the Government, and that to threaten Pan American
with loss of mail subsidy would likewise do no good because of the
necessity for keeping this project secret even from the Congress.
It was finally agreed that the Treasury would endeavor to see
what additional clauses might be worked out for insertion in the
closing agreement to make it clear that the Treasury in no way
approved of the War Department's contract. As the meeting broke up,

Mr. Amberg requested that any such clause which might be devised by
the Treasury should not appear in any way to condemn the action or

judgment of the War Department officials. He agreed to put up to
Secretary Stimson my suggestion that the matter be referred to the
Congressional Committees for decision, but he stated that he would
recommend against adoption of this suggestion.

Pan American subsequently stated that its primary concern in
insisting upon the contract clause was not that it feared subsequent
legislation but rather that it feared the Supreme Court might overrule
its decision in Edwards V. Cuba Railroad. to the effect that con-

tributions to the capital of a corporation are not income to the corpo-

ration within the meaning of the 16th Amendment. Pan American therefore
suggested that the contract clause in question be revised so as to state
that with respect to payments received from the Government as reimbursement for construction of airport facilities, the War Department would
indemnify Pan American for any tax liability which might be imposed
because of a decision of the Supreme Court reinterpreting the definition
of the term "income," This suggestion is agreeable to the War Department and I have stated that if such change is made I will approve our

entering into a closing agreement respecting the tax liability of the

company under present law. The reason for my approval is that Pan American's suggestion in effect accomplishes no more than would be accom-

plished by the closing agreement itself. This is because the binding
effect of a closing agreement, although subject to legislative changes,
is not subject to changes in judicial interpretation.

OFFICE OF LEND-LEASE ADMINISTRATION
FIVE-FIFTEEN 22d STREET NW.
WASHINGTON D.C.
Stettinius Jr.
Administrator

CONFIDENTIAL

December 31, 1941

MEMORANDUM

To:

Secretary Morgenthau

From:

E. R. Stettinius, Jr.

Subject: Lend-Lease
Progress in
obligating and Allocating
Funds.
The attached chart on the above subject

is sent you for your confidential information.

Attachment

268

S

E

ALLOCATIONS AND OBLIGATIONS
269

LEND-LEASE FUNDS
TOTAL
(Millions)

WAR DEPARTMENT

$

14,000

(Millions)
7,000

12,000

6,000

10,000
5,000

8,000

Forecost

APPROPERATIONS

6,000

Forecost

PROGRAM LIMITATION

4,000

ALLOCATIONS

ALLOCATIONS

3,000

4,000
2,000

OBLIGATIONS

2,000

OBLIGATIONS

1,000
0

Mg Age Moy Jun Jul Aug Sep Oct Nov Dec Jon Feb

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jon Feb

1942

o

1941

194

.

1942

NAVY DEPARTMENT
MARITIME COMMISSION

(Millions)

(Millions)

$

2,800

1,200

$

2,400
1,000

2,000
PROGRAM LIMITATION

Forecost-800

1,600

Forecost

PROGRAM LIMITATION
1,200

ALLOCATIONS

600

OBLIGATIONS

ALLOCATIONS

800

400

400

200

OBLIGATIONS
o

194

o

Apr May Jun Jul Aug Sep Oct Nov Dec Jon Feb

Mor Apr Moy Jun Jul Aug Sep Oc Nov Dec Jon Feb

1942
1941

DEPT. OF AGRICULTURE
(Millions)

1942

TREASURY DEPARTMENT
(Millions)

1,500
1,000

1,250
800

1,000
600
750
PROGRAM

ON

PROGRAM LIMITATION

Forecost

/Forecost

500

ALLOCATIONS

ALLOCA

250

OBLIGATIONS
Apr

Moy

OBLIGATIONS

in

Aug Sep Oct Now Dec Jon Feb o
1942

Tice of Lend-Lease instruction

December 29, 1941

-

Mor Apr Moy Jun Jul Aug Sep Oct Now Dec Jon Feb
1941

1942

400

200

270

Miss Chungey

TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE

December 31, 1941

Secretary Morgenthau

TO

FROM Mr. Dietrich

STRICTLY CONFIDENTIAL

Official sales of British-owned dollar securities under the vesting order

effective February 19, 1940:

No. of Shares
Sold
Dec.

15

16
17

18
19

20

Seles from
Feb.22.1940 to
Ecc.
13. 1941
les

$ Proceeds of
Shares Sold

Nominal Value

Nil
Nil
Nil
Nil

Nil
Nil
Nil
Nil
Nil
Nil

of Bonds Sold

$ Proceeds of
Bonds Sold

Nil
Nil
Nil
Nil
Nil
Nil

Nil

Nil
Nil
Nil
Nil
Nil
Nil

Nil

Nil

Nil

Nil

9.847.580-1/2

281,856,881

45.610.016

37,437,648

9.847.580-1/2

281.856.881

45,610,016

37,437,648

N1)

from

7eb.22.19bc to
Dec. 20. 1041

x

viss

Chauncey

TREASURY DEPARTMENT

271

INTER-OFFICE COMMUNICATION
DATE

December 31, 1941

Secretary Morgentheu

TO

FROM Mr. Dietrich

STRICTLY CONFIDENT

Official sales of British-owned dollar securities under the vesting order

effective February 19, 1940:

No. of Shares $ Proceeds of

Nominal Value
of Bonds Sold

$ Proceeds of

Hil
Nil
Nil

Nil
Nil
Nil

Nil
Nil

Nil
Nil

Nil

Nil

281,856,881

45,610,016

37,437,648

9.347.581-3/18 281,856,896

45,610,016

37.437.648

Sold

25

Nil
15

Nil
H
o

26
27

Nil
Nil
12/18

1

24

Nil
12/18
Nil

Nil
Nil
15

i

23

Bonds Sold

d

Dec. 22

Shares Sold

a

y

Sales from

Feb. 22. 1040 to
Dec. 20, 1941

9,847,580-1/2

Sales from

Feb. 22, 1940 to
Dec. 27. 1941

of

272

TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE

December 31, 1941

Secretary Morgenthau

TO

FROM Mr. Dietrich

STRICTLY CONFIDENTIAL

Official
sales
British-owned dollar securities under the vesting order
effective
February
19,of
1940:
$ Proceeds of
Shares Sold

$ Proceeds of

Dec. 22

Nil

23

15

Nil
Nil
Nil

Nil

25

o

1

27

Nil
15

Nil

H

Nil
Nil

1

26

Total

d

24

Bonds Sold

a

y

Nil
Nil

Nil
Nil

Nil

15

Sales from

15

Feb. 22, 1940 to
Dec. 20, 1941

281,856,881

37,437,648

319,294,529

281,856,896

37,437,648

319,294,544

Sales from

Feb. 22, 1940 to
Dec. 27, 1941

319,294,544

$ proceeds of non-vested securities sold
Dec. 15. 1941 - Dec. 20, 1941

400,000

$ proceeds of non-vested securities sold
Seat. 1. 1939 - Dec. 13. 1941
$ proceeds of non-vested securities sold

239,500,000

Grand Total

0 Units sold from Aug. 18, 1941 - Dec. 27. 1941 for
11 Shares Stock Dividend sold Aug. 18. 1941 - Dec. 27. . 1941 for

55 623 Rights sold from July 24. 1941 - Dec. 27. 1941 for

.

Adjusted to make total more nearly correct.

240,000,000
559.294.5 54h

$

240,000,000

$

Sept. 1, 1939 - Dec. 20, 1941

42

123

$102,928

278

TREASURY DEPARTMENT
INTER-OFFICE COMMUNICATION
DATE

December 31, 1041

Secretary Morgenthau

TO

FROM Mr. Dietrich

STRICTLY CONFIDENTIAL

Official
sales19.
of1940:
British-owned dollar securities under the vesting order
effective
February
$ Proceeds of
Shares Sold

$ Proceeds of

Nil
Nil
Nil
Nil
Nil
Nil

Nil
Nil
Nil
Nil
Nil
Nil

Nil
Nil
Nil
Nil
Nil
Nil

Nil

Nil

Nil

281,856,881

37,437,648

319.294.529

281,856,881

37,437,648

319,294,529

Dec. 15
16
17

18
1°
20

Bonde Sold

Total

Sales from

Feb. 22. 1940 to
Dec. 13, 1041
Sales from

Feb. 22. 1040 to
Dec. 20, 1041

319.294.529

proceeds of non-vested securities sold
Dec. 3. 1041 - Dec. 13. 1941

proceeds of non-vested securities sold
Sent. 1, 1930 - Dec. 6. 1941
proceeds of non-vested securities sold
Sent. 1. 1930 - Dec. 13. 1941

200,000

239,300,000
239.500.000

239,500,000
558.794.529

GRAND TOTAL

0 Unite sold from Aug. 18, 1ch - Dec. 20, 1041 for

S

11 Shares Stock Dividend sold Aug. 18, 1041 - Dec. 20. 1941 for

I

123

7

6 Rights sold on Dec. 15, 1941 for
Rights sold from July 24, 1041 - Dec. 13. 1011 for
.828 Rights sold from July 24. 1041 - Dec. 15. 1041 for
122

à

42

$102,921

102.928

8

274

DEC 31 1941

My dear Mr. President:

I am enclosing report on our exports
to some selected countries during the week
ending December 20, 1941.

Faithfully,
(Signed) E. Morganthan, Jr.

Secretary of the Treasury

The President,
The White House.

Enclosure

abstien
12/29/41.

By Sever Service 5:20

n m.c.
Capits so m white

275
December 30, 1941

Exports to Russia, China, Burma, Hong Kong,
Japan, France and other blocked countries,
as
to the
Treasury20,
Department
during
thereported
week ending
December
1941.
1. Exports to Russia

Exports to Russia as reported to the Treasury during the

week ending December 20, 1941 amounted to about $4,500,000.

The
items
motorC.)
trucks and chassis and military
tanksprincipal
and parts.
(Seewere
Appendix

2. Exports to China, Bursa and Hong Kong

Exports to Free China were valued at approximately $111,000
as compared with over $2,000,000 during the previous week.
principal
item
was machine
parts.
(See
Appendix
D.) and heavy ordnance gune, carriages The and
Exports to Occupied China amounted to $12,000. (See Appendix E.)
Exporte to Burma totalled only $8,000. (See Appendix F.)
review. No exports to Hong Kong were reported during the week under
3. Exports to Japan
review. No exports to Japan were reported during the week under
4. Exports to France
December No exports 20, 1941. to France were reported during the week ending

5. Exports to other blooked countries

Exports to other blooked countries are given in Appendix A.

STRICTLY CONFIDENTIAL

276
SUMMARY OF UNITED STATES
DOMESTIC EXPORTS TO SELECTED COUNTRIES
AS REPORTED TO THE TREASURY DEPARTMENT
FROM DURING EXPORT THE DECLARATIONS RECEIVED

PERIOD INDICATED 1

July 28 to December 20, 1941

(In thousands of dollars)
July 28
to

Week ended

Dec. 6
U. S. S. R.

December 13

$58,106

$12,040

Occupied China

10,584

678

Free China

25,885

Burna 3

December 20

$ 4,580
12

2,337

1,870 2.

Japan

Week ended

111

-

Total
Domestic Exports
$74,726
11,274
28,333

-

1,870

6,780

18
8

France

6,806

-

6

6

Occupied France

-

2

5
2

Free France

of

-

-

.4
Spain

2,216

Switserland
Sweden

French Indochina

1

112

2,329

4,856

161

10,380

17

703

11,100

377

17

10

404

42

Treasury Department, Division of Monetary Research

5,059

December 23, 1941.

1/ Many of the export declarations are received with a lag of several days or more.
Therefore this compilation does not accurately represent the actual shipment of
a particular week. The longer the period covered, the closer will these figures
come to Department of Commerce revised figures.

2/ of this total $1,864 thousand was reported from July 28 to August 23, inclusive,
and shipped prior to freesing orders.
Domestic exports from August 23 through week ending Dec. 6, amounted to $6,106.
3/

rial Free September 11, 1941 to date - It is presumed that a large percentage of mate-

listed here, consigned to Burma, is destined for Free China.

pied Includes both occupied and Free France through week ending October 4, 1941. Occu-

and Free France separated thereafter.

V Less than $500.

Minef 12/23/41

STRICTLY CONFIDENTIAL

APPENDIX B

STRICTLY CONFIDENTIAL

Exports from the U.S. to China, Burna, Hong Kong, Japan and U.S.S.R. as
reported to the Treasury Department, July 28, 1941 - December 20, 1941

(Thousands of Dollars) 1

July 28 - Aug. 2
Aug. 4 - Aug. 9

Aug. 11 - Aug. 16
Aug. 18 - Aug. 23
Aug. 25 - Aug. 30

Sept. 2 - Sept. 6

Sept. 8 - Sept.13
Sept.15 - Sept.20

Sept.22 - Sept.27

Sept.29 - Oct. 4
Oct. 6 - Oct. 11
Oct. 13 - Oct. 18
Oct. 20 - Oct. 25
Oct. 27 - Nov. 1

Nov. 3 - Nov. 8

Nov. 10 - Nov. 15
Nov. 17 - Nov. 22
Nov. 24 - Nov. 29

Dec. 1 - Dec. 6

Dec. 8 - Dec. 13

Dec. 15 - Dec. 20
Total

Exports to China
Total To Japanese TO Chinese
controlled
controlled
ports
ports
937

2,794
1,278
1,352
736
897

3,038 2

3.978
462

1,305
5,864
272
668

5,210

542

2,794

395

969

309

1,350
735
693
757
156
352
so

552
267
399
438

1,836
3,009
1,701
3,359

164
158
473
120

852

61

3,025

688

123

12

42,696

11,760

Exports
to

Burma 3

Exporte
to

654
983
235
234
742
634
456
389
810
297

1

204

2,281
3,822
110

1,225
5,312
5

269

4.772
1,672

2,851
1,228

3,239
791

2,337
111

30,936

449
684

1,157
35

403
58

1,021
1,364
64

U.S.S.R.

1,657

4,523

159

-

-

752

-

2,333

-

584

-

1,243

323

-

624
283
303
600

-

1,325

-

5

-

-

-

-

-

8

-

-

1 These figures are in part taken from copies of shipping manifests.

2,735
1,023
4,280
5,217

6

-

-

11,629

551
986

42

18

5,691

to

Japan

1,233

342
88

Exports

to

Hong Kong

2

Exports

1,869

6,845
1,924
5,623
4,484
4,552
2,677
3.581
2,436
3,609
12,040
1,580
75,074

2 Figures presumed for to be exports destined to Free for China Free China. during these weeks include exports to Rangoom which are

3/ It is presumed that a large percentage of exports to Burma are destined for Free ahina

278

APPENDIX 0

Principal Exports from U.S. to U.S.S.R.
as reported to the Treasury Department

during the week ending December 20, 1941
(Thousands of Dollars)
TOTAL EXPORTS

Principal Items:

$ 4,580

Motor trucks and chassis

1,849

Military tanks and parts

920
244

Refined copper

Aluminum plates, sheets, bars,
strips and rods
Stamping or shearing machine
Sole leather
Coated wire, n.e.s.
Metallic containers (drums)

130
109
92
89

Telephone instruments
Machine
and heavy ordnance guns and carriages
Barbed
wire

86
79
75

73

Treasury Department, Division of Monet ry Research December 30, 1941

SERFIDENT

279

APPENDIX D

Principal Exports from U.S. to Free China
as reported to the Treasury Department

during the week ending December 20, 1941

(Thousand of Dollars)
TOTAL EXPORTS TO FREE CHINA

$ 111

Principal Items:
Machine and heavy ordnance gune,

carriages and parts
Insulated copper wire

107
3

treasury Department, Division of Monetary Research December O, 1941

STRICTLY CONFIDENTIAL

280

APPENDIX E

Principal Exports from U. S. to Occupied
China as reported to the Treasury Department

during the week ending December 20, 1941
(Thousands of Dollars)
TOTAL EXPORTS TC OCCUPIED CHINA

Principal Items:

$ 12

Radio apparatus

Relief supplies - biological
Pencils and pens

4

3

1

reasury Department, Division of Monetary Research December 30,1941

STRICTER

281

APPENDIX F

Principal Exports from U.S. to Burma
as reported to the Treasury Department

during the week ending December 20, 1941
(Thousands of Dollars)
TOTAL EXPORTS

Principal Items:

$8

Newsprint paper
6

Treasury Department, Division of Monetary Research December 30, 1941

STATESLY CONFIDENTIAL

282
December 31, 1941.
MEMORANDUL FOR THE SECRETARY'S FILES

Conference in Mr. White's Office
December 31, 1941

3:00 P. K.

Present: Mr. White
Mr. Gromyko, Counselor of the
Russian Embassy

The conference was held at Mr. Gromyko's request. Mr.
Gromyko stated that his government had instructed him to arrange with the Treasury for a sale by the Russian Government

to the United States Treasury of $20 million of gold for
future delivery under terms similar to the previous one.
Mr. Gromyko stated that the dollars resulting from the sale

of the gold were t. be used by the Russian Government for
purchases in the United States.

Mr. White said he would take the matter up with the
Secretary
at the first opportunity and would let Mr. Gromyko
know.

0

0

283

P

Y

REBASSY OF THE

UNION OF SOVIET SOCIALIST REPUBLICS
WASHINGTON, D. C.

December 31. 1941

My dear Mr. Secretary:

I wish to acknowledge receipt of your letter of December 26.
1941 referring to the agreement dated October 10. 1941 relative to
the purchase of 903,000 fine trey ounces of gold by the Secretary
of the Treasury from the Government of the Union of Soviet Socialist
Republica, against which as advance of $30,000,000 was made on
October 11, 1941.

I take pleasure of thanking you for the enclosed two copies of
the assay report of the United States Mint at San Francisco giving
an analysis of the gold which arrived on the SS TRANSBALT and was
deposited by my Government on December 10. 1941 for the account of

the Secretary of the Treasury.
I am, my dear Mr. Secretary.
Sincerely yours,
(Signed) Maxim Litvinoff
Ambassador

The Honorable Henry Morgenthan, Jr.

Secretary of the Treasury
Washington

Copy:1e:1/3/42

284

December 31, 1941

My dear Mr. Secretary:

I wish to acknowledge receipt of your letter
of December 19, 1941 referring to the agreement dated

October 10, 1941 relative to the purchase of 903,000

fine troy ounces of gold by the Secretary of the
Treasury from the Government of the Union of Soviet

Socialist Republics, against which an advance of
$30,000,000 was made on October 11, 1941.

I take pleasure in thanking you for the enclosed
two copies of the assay report of the United States Mint
at San Francisco giving an analysis of the gold which
arrived on the SS DONBASS and deposited by ay Govern-

ment on December 5, 1941, for the account of the
Secretary of the Treasury.
I am, my dear Mr. Secretary,
Sincerely yours,
Ambassador
The Honorable

Honry korgenthau, Jr.

Secretary of the Treasury
Washington

285

December 31, 1941

Dear Mr. President:

I AM transmitting herewith for such use as

you care to make of it a draft of a bill to cancel
the indebtedness of the Governments of Great Britain
and Ruesia to the United States Government which

arose out of the first World War.
Faithfully yours,
(Signed) H. Morganthaw, Jr.

The President,
The White House.

DWB:ce

n.m.c.

Dan sell hos copies

286
i BILL

To cancel the indebtedness, arising out of
the first arid ser, of Great Britain and
Russia, and for other par ares.
34 it enacted by the Senate and House of Re resent tives of
be United States of America in Congress appeabled. That (a) all

sting indebtodness, including uny id interest, if the Government
of Great ritain to the Government of the United States of America
resulting from cash advances and or credits eathblished by the
Government of the United States of America under authority of the
following Acts of Congress, or scended or su, Lemented, is hereby
cancelled:

The Act of & ril 24, 1917 (40 Stat. 35):
The Act of September 4, 1917 (4. Stet. 288);

The Act of April 4, 1918 (40 Stat. 502
The ret of July 9, 1918 (40 Stat. 644).

(1) All existing indebtedness, including unself interest,
owing to the Government of the United States of America on Account

of cash advances code, credits est blished. or su, lies sold on
credit by the Government of the United States of America to any
Government of Russie under authority of the following Acte of
Congress, se amended or sup lesented, it hereby cancelled:

The ct of pril 24, 1917 (40 Stat. 35);

The Act of September 24, 1917 (4) Stat. 280);

The Act of April 4, 1918 (4 Stat. 502)
The Act of July 9, 1918 (2) Stet. 844):
The Act of July 9. 1918 (4) Stat. 845, 250
The Act of February 5. 1919 (40 Stat. 1161)

--

287

Sec. 2. The Secretary o: the Tre ssury in hereby authorized

and directed (1) to deliver to the authorised re recentative of the
Government of Grent Britain wil obligations nox held by the Governsent of the United States of /merica evidencing the indebtedness

referred to in section 1(a) of this Act, (2) to deliver to the 612thorised re resentative of the Government of the Union of Soviet

Socialist You lics all obligations non held by the Government of
the United States evidencing the insebtedness referred to in
section 1(b) or this Act, and (3) to make such adjustments on the
books and records of the Treasury Department and take such other

action a any e necessary to carry out the purposes of this Act.

11/30/41

COORDINATOR OF INFORMATION

288

WASHINGTON, D.C.

December 31, 1941

French Assets in Portugal

(1) A list had been drawn up in the French
Legation at Lisbon of all French-owned concerns

in Portugal. A record has also been compiled of
all French capital invested in Portugal.

(2) French capital was invested in the Portuguese railways, and recently two board meetings
had been held, attended by M. Guichenet, who had
come from Paris.

(3) Further meetings were to be held attended
by M. de Bernard. Both Guichenet and de Bernard
were members of the Paris committee dealing with

French holdings in Portuguese railways.

289
December 31, 1941.

ORANDUM FOR THE SECRETARY'S FILES

Conference in Mr. White's Office
December 31, 1941
4:00 P. M.

Present: Mr. White
Dr. Soong, Minister of Foreign Affairs
Dr. Soong called at his request. He stated that he had
just been informed by his Government that a request via cable
WES coming to this Covernment for economic assistance because

of the critical inflationary situation at home. He stated
that the request was, to his understanding, set forth in rather

vague terms, but that he expected in a few days to have something more specific to submit to us and he hoped that in the
meantime we would be thinking about the possibilities for aid.

TREASURY DEPARTMENT

290

INTER-OFFICE COMMUNICATION
DATE
TO

December 31, 1941

Secretary Morgenthau

FROM , Mr. Dietrich

In paragraph three of cable #542 received from the American Embassy, Chungking,

reference is made to our telegram #293. This reference is undoubtedly an error
and probably should be our telegram #299 dated December 15.

D

291

DEPARTMENT OF STATE

Washington

In reply refer to
FF 340.51 Frozen Credits/4838

December 31, 1941

The Secretary of State presents his compliments to
the Honorable the Secretary of the Treasury and transmits

herewith a copy of air mail despatch no. 6045 of
December 15, 1941 from the American Embassy at Rio de

Janeiro, stating that although Brazilian authorities
had frozen credits in Brazil, Japan had not taken such

action on Brazilian credits in Japan.

Enclosure:

From Rio de Janeiro,
no. 6045. December 15.

1941.

Copy:had:1/3/42

No. 6045

292

Y

Rio de Janeiro. December 15. 1941.

No. 6045

SUBJECT: Japanese Credits in Brazil,
ORIGINAL
AND PHRES COPIES BY AIR MAIL - CONFIRMATION
COPT
BY STEAMER

STRICKLY Confidential

The

The Secretary of State,
Washington, D. 0.
Sir:

I have the Monor to report that Nabuco told me

yesterday that although the Brazilian authorities had
fromen the Japanese credits here the Japanese authorities

have not frozen Brazilian credits in Japan.
Respectfully yours,
Jefferson Coffery.
00/alc

File 851.51

.. true copy of the
signed original.

C

P

293

Y

DEPARTMENT CF STATE

Washington

In reply refer to

December 31, 1941

FF 840.51 Frozen Credits/4859

The Secretary of State presents his compliments to
the Honorable the Secretary of the Treasury and transmits
herewith a copy of air mail despatch no. 1436 OI
December 19, 1941 from the American Embassy at Caracas,

and its enclosures, a copy and translation of an Executive
Decree published in the Official Gazette of December 16,

1941 (No. 20,671). and a translation of a resolution of
December 16, 1941 issued by the Ministers of Interior,

Foreign Affairs, and Finance, concerning the restriction
of finance, trade and commercial activities of governments
or nationals of countries at 172L2" with an American nation.
Enclosure:

From Caracas, no. 1436.
December 19, 1941, with
enclosures.

Copyshad:1/3/42

294
Caracas, December 19, 1941.
No. 2436

Subject: Transmitting copy and translation of Executive
Decree of December 16, 1041 and of the Resolution
under the Decree of December 11, 1941, concerning
control measures of an economic nature.

The Honorable

The Secretary of State
Washington
Sir:

with reference to my despatch No. 1423 of December 16,
1941, and to my telegram No. 313 of December 17, 1941. I

have the honor to enclose a copy and translation of the
Executive Decree published in the Official Gazette of

December 16, 1941 (No. 20,671) for the purpose of carrying
out the provisions of the Decres of December 11, 1941.

There is also enclosed a copy (in the same Official
Gazette above cited) and translation of the Resolution of
December 16, 1941, issued by the Ministers of Interior,
Foreirn Affairs and Finance jointly with reference to the
application of the Decree of December 11, 1941 concerning
the restriction of financial, trade and commercial activities
of
Government
American
nation. or nationals of countries R: were with an
Respectfully yours,
Frank P. Corrigan
Neclosureg:

1. Copy of Official Gazette No. 20,671.
2. Translation of Decree of Dec. 16. 1941.
851 3. Translation of Resolution of Dec. 16, 1941.
JFitar

. true copy of the
signed original.
Co

0

295

Y

ENCLOSURE NO. 2 TO DESPATCH NO. 1436 DATED
DECEMBER 19, 1941 FROM THE AMERICAN ALBASSADOR
AT CARACAS, VENEZUELA.

TRANSLATION FROM OFFICIAL GAZBTTE OF THE UNITED SHARP OF VENEZUELA

DECEMBER 16, 1941 -- NO. 20671

PRESIDENCY OF THE REPUBLIC

"ISAIAS MEDINA A.

President of the United States of Venezuela,

In order best to carry out the purposes sought by the
prohibitions and restrictions established in the Decree of
December 11, 1941, and for the purpose of avoiding damages

resulting from operations concerned with funds, credits and
rights belonging to. or in which the Governments or nationals
of States at WELL with an American Nation may have an interest,
undertaken in the name of persons, enterprises or intermediary
companies, or whose purpose or result be to conceal or remove
their in any sanner from the effects of the said Decree:

In the use of attribute 23 of Article 100 of the National
Constitution; in conformity with Article 36 and in applying
mineral one of Article 15 of the said Constitution; and in
accordance with the advice of the Ministers in Council:
DECEISES:

Article 1. The restriction of the exercise of individual

guarantees provided for in numerals 2, 8 and 9 of Article 32
of the National Constitution, established in Article one of
the Decree of December 11, 1941, is hereby extended in the

terms and for the effects of the present Decree.

Article 2. The Federal Executive shall subject to measures
of intervention, inspection and control the course of operations
of all persons, firms, enterprises and businesses. of whatover

nationality, provided in its judgment, the activities of these
persons, enterprises or entities, might be operate: injuriously

in respect to national or continental security or economy, or
eight
occasion an evasion of the purposes of the Decree of
December 11, 1941.

Article 3. The following shall be specified by virtue of

Orders of the Federal Executive:

a) The persons, enterprises or entities subject to
the application of the measures provided for in

296
-

the present Decree:

b) The necessary measures for inspecting the
course and operations of those persons,

enterprises or entities, so that their

activities may not be exercised in detriment

of continental or national security or

economy;

c) Determination of the time when application
of the measures should cease by reason of
the absence of necessity to continue them;

d) The authorities or official organizations

to which the carrying out the said measures
shall be delegated.

Article 4. Among the measures stated may also be included
the prohibition to withdraw funds, move or transfer banking or
savings accounts, to withdraw articles on deposit or securities
submitted as collateral or for custody. These measures may be

applied to the persons, firms, enterprises or entities of any

nationality, who the Federal Executive may consider included in
the provisions of the present Decree.

Article 5. The Ministers of Interior Relations, of Foreign

Relations
andDecree.
of Hacienda are especially charged with the execution
of the present

Issued, signed, sealed with the Seal of the Federal Executive
and countersigned by the Ministers of the Executive Branch, in the
Federal Palace, in Caracas on the 16th day of the month of
December,
nineteen hundred
and forty-one. 132nd Year of Independence
and
83rd of Federation.
"

Copy:hmd:1/3/42

297

Y

ENCLOSURE NO. 3 TO DESPATCH NO. 1436

DATED

DECEMBER 19, 1941 FROM THE AMERICAN ALBASSADOR
CARACAS, VENEZUEIA,

WRAT STATION FROM OFFICIAL GAZENTE OF THE UNITED STATES OF

DECEMBER 16, 1941, No. 20671

inistries of Interior Relations, Foreign Relations and

Encienda. United States of Venezuela -- Ministry of

Interior Relations -- Political Division -- Ministry of
Foreign Relations -- Political Division -- Ministry of

Hacienda -- Division of Economy and Finance.

Caracas, December 16. 1941
132nd and 83rd
RESOLVED:

In accordance with the provisions of article 4 of the
Executive Decree of December 11, 1941 and article 3 of the
Executive Decree of this same date, authorizing the Federal
Executive to dictate by Means of Special Resolutions the

required measures for the control and supervision of individuals. entities or enterprises comprise& within the restrictions
of the said Decrees: and by which the Federal Executive is also
authorized to establish the formalities or requisites which may
be deemed necessary for the granting of permits as provided in
articles 2 and 3 of the first of said Decrees and to establish
the rules and formalities for the operation of such services,
the President of the United States of Venezuela resolves that
everything related to said services be ruled under the following

provisions:-

First - In accordance with the provisions of Resolution
of the Office of Hacienda, dated the 13th instant, the permits
provided for in article 2 of the Decree of December 11, 1941
will be issued by the Banco Central de Venezuela or by the
branches and agencies of the Banco de Venezuela in the interior
of the Republic, or by the other organizations or entities
designated for this purpose by the Federal Executive, through an
Relication which in each case will be made by interested
parties. Said application shall contain a sworn declaration
that the exportations, drafts, transfers or remittances are
destined to non-American countries not actually at war with
American nations or not occupied by powers at nor with American

nations; that the consignee or beneficiary of the

-

298

exportations, drafts, transfers or remittances is not a
government or a national of any state at war with American
nations, or that he does not reside in a country occupied by
powers at war with American nations. The application must
show also the purposes and ends of the transaction.

Second - The permits referred to in article 3 of the

same Decree of the 11th instant must be requested, in each
case, from the organisations which the Federal Executive has
designated in said Resolution or shall designate in the future.
General permits may be granted up to a fixed monthly amount to

certain individuals or entities for the transaction of their

business, within the limits fixed by the Decree.

To obtain these permits, either the special or the general
ones, the interested parties must present with their applications
a awarn declaration that they bind themselves to comply with

provisions a). b), c) and d) of article 3 of said Decree.
Sole paragraph - To the end of obtaining a permit in
connection with the special transactions referred to in b)
of the same article 3 of the Decree, it will be absolutely
necessary to duly justify the payment for which permit is
requested; as well as to give proof of the sincerity, real
need and convenience of the operation.

Third - The permits referred to in said Executive Decree,

covered
by theataforementioned
numbers. are essentially revocable
or
modifiable
any time.

Fourth - Faculty is granted the Banco Central de Venezuela
and the branches and agencies of the Banco de Venezuela to

authorize the withdrawal of funds from imobilized accounts by
monthly sums prudently fixed in each case, to provide for the
subsistence of the applicants and their families if they have
no other means of support, subject to proof of the latter.
Fifth - The functions of supervision and control as provided
in the sole paragraph of article 4 of the Decree of December 11th

and in articles 2 and 3 of the Decree of this same date, will be
exercised by the Superintendency of Banks. To carry out said

control and supervision of individuals or entities obtaining
permits or subject to the provisions of article 2 of Decree of

the same date and to check up whether their operations are normal
and legitimate, the Superintendency of Banks is authorized to

name inspectors for the service. The retribution of these
inspectors will be for the account of the person or entity under
supervision, and the amount of said retribution will be carefully

estimated by the Superintendency of Banks.

299

-3Sixth - The inspectors are obliged to inform the Superintendency
of Banks whenever requested by the latter or required by circumstances, and at least once a week, as to the movements, activities

etc. of the individual or entity under supervision; and at any

time, immediately and by the quickest possible way of communication,
to inform of any activity which might be considered contrary to the

purposes of the aforementioned Decrees.

Seventh - The prohibition to mobilize bank or savings accounts,
contained in article 3 of the Decree of December 11, 1941, refers
to withdrawal operations, surrenders or transfers of the total or
part of the funds of the accounts; and does not cover deposits or
cash deliveries, checks or other commercial drafts in connection
with the same accounts by their owners or by third parties.

Eighth - Among the transactions foreseen in the prohibitions
of article 3 of the Decree of December 11, 1941 and article 4 of
the Decree of this same date, are the following:1. Drafts drawn against funds deposited in bank or
savings accounts, in favor of governments or
nationals of States at war against any American
country or of persons or entities domiciled or
residing in territories occupied by said States,
whatever
the
draft. the nationality of the person drawing
2. Drafts drawn against the same accounts by persons

included in said articles, in favor of others of

whatever nationality, including Venezuelans.

3. The other operations which, by separate Resolutions
or by orders of the Minister of Hacienda may be
considered by the Federal Executive as included in
those provisions.
Ninth - The Banco Central de Venezuela, the branches and
agencies of the Banco de Veneguela and the other organizations
which may be designated by the Federal Executive to exercise the

functions referred to in article 4 of the Decree of December 11,
1941 are authorized to dictate with prior approval of the
Ministry of Hacienda, the measures for the organization and
internal regime required for the operation of the services
designated to them.
Tenth - The Superintendency of Banks is authorized to

prescribe, with prior approval of the Ministry of Hacienda, any

other necessary regulations which must be complied with for the
application and execution of the measures for control, supervision
and
intervention under this present Resolution and that of the
13th instant.

300

-4Eleventh - There are exempted from the formality of previous
licenses the payment orders issued in favor of any individual by
the Federal Executive Departments, by the Governments of the

States of the Union or of the Federal District, or of the Federal
Territories, by the other political or administrative entities or

by
saidautonomous
organizations.national institutes, or those issued in favor of

Twelfth - The applications in connection with the aforementioned
Decrees
and their Resolutions will be made on regular paper without
strups.

Thirteenth - All doubtful or unforeseen cases will be submitted
to the Su erintendency of Banks who will make a decision after
consultation with the Ministry of Hacienda.
To be communicated and published,

By the Federal Executive
(s) TULIO CHIOSSONE

(s) C. PARRA-PEREZ
(s) A. MACHADO HERNANDEZ

tar.

Copythmd:1/3/42

0

0

P

301

Y

DEPARTMENT OF STATE
WASHINGTON

December 31, 1941

In reply refer to
FF 840.51 Frozen Credits/4865

The Secretary of State presents his compliments to
the Honorable the Secretary of the Treasury and transmits
herewith a copy of air mail despatch no. 1715 of December 19. 1941 from the American Legation at Tegucigalpa,

together with a copy of its enclosures, decrees numbers
eight and nine, passed on December 17. 1941 by the
Honduran Congress, and a copy of a Notice to Naturalized

Citizens, all treating with Honduran legislation concerning economic control of Axis nationals.

Enclosure:

From Tegucigalpa,
no. 1715, December 19.

1941, with enclosures.

Copy:1c:1/6/42

C

0

P

302

Y

Tegucigalpa, D. C., December 19. 1941.
No. 1715

Subject: Transmitting Honduran Legislation Concerning
Economic Control of Operations
of
Axis Nationals.

AL-MAIL

The Honorable

The Secretary of State,
Washington, D. C.
Sir:

I have the honor to refer to my telegram No. 128 of
December 17, 1941, and to enclose herewith ten copies of
Decrees Nos. 8 and 9 passed on December 17. 1941, by the
Honduran Congress, which become effective today. and

refer to the controls established by the Honduran
Government over the financial and commercial activities
of Axis nationals.
The legislation has been compared carefully with the
measures described by the Department's circular telegram
of December 15. 10 p.m., and has been found with regard

to economic controls, to conform, in general, to the fivepoint program suggested by the Department, which was

yesterday transmitted to the Honduran Foreign Office.

303
-2-

Decree No. 8 has already been reported by despatch

No. 1698 dated December 10, 1941 (File No. 850). It is

of particular interest to note the following points
concerning Decree No. 9: a) that no specific measures

are provided for gaining possession of or inventorying
any valuables or documents now in the possession of Axis

nationals, in their residences (Cf. Par. 7 of Article I);
b) that a receipt from a local bank will serve as legal
proof to cancel the obligations of any person owing money

to Axis nationals and depositing it in the banks (Par. 11

of Article I); c) that the President, acting through the
Ministry of Finance, may extend the freezing orders to. all
persons or firms appearing on either the Proclaimed and
Statutory Lists, and may likewise apply the measures against
the nationals of any other country on which Honduras may

declare war in the future (Article 2); d) that exports by
Axis persons and firms are permitted, provided the proceeds
are frozen and the transactions subject to Government control

(Par. 17 of Article 1); and e) that all naturalized citizens
of Axis origin, whether of Honduran or other nationality,

must present proof of such nationality to the Ministry of
Finance so as to obtain proper certificates thereof for use
in banking and other transactions (Cf. enclosed notice).

304
-3-

It is assumed that the Department will wish to send

detailed instructions to this Mission with regard to the
above measures as soon as possible.

Respectfully yours,

John D. Erwin
Enclosures:

1) 10 copies of Decrees 8 and 9
of December 17, 1941.

2) 10 copies of Notice to
Naturalized Citizens.

851-Freezing
RDG:LMH

A true copy of

the signed original
(Init.) LMH

NOTE: Enclosure, written in Spanish, sent to Mr. Pehle
along with the original of this despatch.

Copy:1c:1/6/42

TREASURY DEPARTMENT

305

INTER-OFFICE COMMUNICATION
DATE December 31, 1941
TO

Secretary Worgenthau

FROM M. Dietrich

CONFIDENTIAL

Registered sterling transactions of the reporting banks were as follows:
Sold to commercial concerns
Purchased from commercial concerns

Open
transactions.

$47,000

34,000

market sterling remained at 4.03-3/4, and there were no reported

the Conadian dollar, which closed at a current low of 14-5/8 discount
last night, recovered to a final quotation of 14% in a very thin market today.
Infollows:
New York,
were as

closing quotations for the foreign currencies listed below

Argentine peso (free)

rezilian milreis (free)

Colombian peso
Mexican peso

Uruguayan pe30 (free)
Venezuelan boliver
Cuban peso

.2345
.0516
.5775
.2065
.5310
.2650

1/8/ premium

By order and for account of the Central Bank of the Uruguayan Republic,
the Federal Reserve Bank of New York purchased 242,000 Swiss france at .2330.
and 10-000 Swedieh kronor at .2385 from a Lew York bank.

ie purchased $1,504,000 in gold from the earmarked account of the Central
Bank
theofUruguayan
of the of
Bank
Mexico. Republic, and $1,353,000 in gold from the earmarked account
.0 new gold engagements were reported.
-2.67d

In London, spot and forward silver were fixed at 23-1/26, equivalent to

The Treasury's purchase price for foreign silver WES unchanged at 354.
and
Harmen's settlement price for foreign silver was also unchanged at
35-1/8-

we mede no purchases of silver during December. In the full year 1941,
our purchases amounted to 36,014,000 ounces, R.E against 118,431,000 ounces in

306

-2-

The report of December 24 received from the Federal Reserve Bank of New

York, giving foreign exchange positions of banks and bankers in its district,
revealed that the total position of all countries was short the equivalent of
$3,560,000,
changes were a
asdecrease
follows: of $977,000 in the short position since December 17. Net
Short Position
Country

England**
Europe

Short Position

December 17

December 24

$ 150,000

$ 552,000 (Long)

2,616,000

Latin America

701,000 (Long)
57,000 (Long)

Japan

159,000

Canada

Other Asia

All Others
Total

2,386,000
26,000 (Long)
$4,527,000

2,582,000
786,000 (Long)
195,000 (Long)
159,000

2,321,000

Change in

Short Position*
- $702,000

- 34,000
- 85,000

- 138,000
---

- 65,000

21,000

+ 47,000

$3,550,000

- $977,000

.

Plus sign (+) indicates increase in short position, or decrease in long position.
Minus sign(-) indicates decrease in short position, or increase in long position.
**Combined position in registered and open market sterling.

CONFIDENTIAL

A

307
BRITISH EMBASSY
WASHINGTON, D.C.

31st December, 1941.
PERSONAL AND SECRET

Dear Mr. Secretary,

I enclose herein for your
personal and secret information copies

of the latest reports received from
London on the military situation.
Believe me,

Dear Mr. Secretary,

Very sincerely yours,

Halifex
The Honourable

Henry Morgenthau, Jr.,

United States Treasury,
WASHINGTON, D. C.

Copy No.

13

308

BRITISH HOST SECRET

(U.S. SECRET)
OPTEL No. 56

Following is supplementary resume of operational events covering
the period 18th to 25th December, 1941.
(I) NAVAL

Our operations against U-boats in the ATLANTIC, West of GIBRALTAR

and in the Eastern Moditerranean have been conspicuously successful, H.M. Aircraft carriers ILLUSTRIOUS and FORMIDABLE arrived in home waters after undergoing

repairs in the UNITED STATES. The sixteenth Canadian Troop Convoy also arrived.
Heavy air attacks on the German ships at BREST appear to have been unlucky and

damage probably only superficial. At ARCHAIGEL the ice situation is becoming
serious, but more extensive use of MURMANSK can improve import conditions. "Hunt"
class destroyers and anti-submarine craft escorted convoys which have been running
regularly to TOBRUK and a night patrol by Greek destroyers has been maintained off
BARDIA and SOLLUM. Four or five ships of about five thousand tons are known to
have made the crossing from ITALY to LIBYA during the week. A group of U-boats
mas operating on the convoy route northwards from GIBRALTAR in co-operation with

Focke Sulf aircraft, and it is probable that German submarines may be moving tocards the Western Atlantic, There has been no indication recently of any oper-

ating in the Atlantic south of 30 degrees North, Prisoners state that some refuelled from merchant ships lying in VIGO about the middle of December. Several
are now operating in the HEDITERRANEAN, of which four or five were near ALEXANDRIA

during the early part of the week. Shipping losses were considerably higher than
of late, largely due to enemy mine-laying off the East Coast.
TRADE. During the week ending twenty-fourth 949 ships were
convoyed. Imports into the United Kingdom during the week ending 20th amounted

to 390,000 tons, including 290,804 tanker imports. lovember.non-tanker imports

were - for Ministry of Food, 954,400 tons; Ministry of Supply, 1,099,500 tons.
(II) MILITARY
LIBYA.

The enemy, after failing to hold the DERNA-ISKILI Line,

attempted to make a stand East of BENGHAZI to cover the evacuation of that Port,
but later withdrew Southwards. General Rommel's two-armour ad divisions, comprising

now only some 40 to 50 tanks, are in the JEDABYA area, and our object is to bring

them to battle before they can escape to the West. Our pursuit is, however, bein
such hampered by the rain and mud on our supply routes, The enomy is suffering

from shortage of transport and mechanical repair difficulties. The future of the

-2- -

309

battle now depends largely on our ability to transport and maintain our supplies
in sufficient volume.
RUSSIA. The German retreat is continuing on the whole MOSCOM

front from KALININ to CREL, and Russian pressure is preventing the enemy from
executing a planned withdrawal. There is no immediate prospect of the Germans

succeeding in stopping the Russian advance and in stabilising the front,
JAPAN. In the CHANGSHA area, on the CANTON-HANKOK railway, a

strong Japanese force is attacking the Chinese positions. In HALAYA, the Japanese
advance has for the moment slackened, but reinforcements are reported to be ar-

riving by sea and land in the Kra Isthmus, Present Japanese strength is estimated
at Four Divisions and one Tank Regiment.

SPAIN. No German troop movements have been reported to substantiate the numerous rumours of an imminent attack on SPAIN,
BALKANS. The German rumour campaign is as active in TURKEY as it

is in the Iberian Peninsula, There have been several reports of German preparations for future military action based on BULGARIA.
(III) AIR OPERATIONS

UNITED KINGDOM. The principal operation was the daylight raid
unon the German warships at BREST, Night bombing was carried out on four occasions,

during which a total of about 200 tons of high explosive and 15,000 incendiaries
were dropped. Our aircraft damaged with bombs or torpedoes about 25,000 tons of
enemy shipping.
MEDITERRANEAN.

CYRENAICA. Relentless attacks by bombers and fighters upon retreating enemy column contributed to their disorganization, Enemy aerodromes and
landing grounds were also heavily bombed, several aircraft being either destroyed
or damaged on the ground.
TRIPOLITANIA.

ZOUARA was attacked by day and TRIPOLI (L) was

combed on five nights of the week, Our aircraft sank or damaged about 16, ,000
tens of enemy shipping. Apart from one heavy but ineffective night raid on TOBRUK
little was seen of Axis bombers in LIBYA,

HALTA, Enemy activity increased both by day and night.
FAR EAST. Our fighters carried out one successful attack on an
enemy aerodrome in SIAM, and Dutch light bombers were in action against Japanese
Caval forces off N.W. BORNEO. Enemy bombers raided RANGOON, made several attacks
IPOH in MALAYA and twice visited KUALA LUMPUR aerodrome without causing much
damage. In BORNEO they heavily bombed PONTIANAK and made sharp attails on KULHING
and SINGKATIANG aerodromes.

-3-

310

(IV) EXTRACTS FROM PHOTOGRAPHIC AND INTELLIGENCE REPORTS ON RES LRS OF AIR
ATTACKS OI! ENENY TERRITORY IN EUROPE

BREST. In recent night attacks, no bombs have fallen on the
town and damage has been confined to the docks area, On 11th/12th December, one

bomb fell about 15 metres from the end of one of the dry docks.
NAPLES. After the raid on 27th/28th November, trains from
MAPLES arrived in ROME more than 15 hours late, Photographs confirm various

items of important industrial damage since eleventh November, Among them fur-

ther damage to Royal Arsenal, half the arsenal completely destroyed. Further
severe damage to the torpedo factory. Damage to Alfa Romeo works, an 011 Depot

and to roofing of the Airframe Works, A large hole in the roof of the main railway station,

Copy No.

13

311

BRITISH LIOST SECRET

(U.S. SECRET)

OPTEL No. 55

Information received up to 7 a.m., 30th December, 1941.
(I) MILITARY

LIBYA. The bulk of the enemy forces are still in position in
the JEDABYA area with their armoured forces covering the southern flank, Con-

tinued pressure had not yet succeeded in dislodging them, On the 28th a force of
approximately 60 enemy tanks supported by artillery attacked one of our armoured

brigades. After six hours fighting our troops withdrew eastwards, An unconfirmed
report states that the enemy suffered 30 tank casualties. Our troops at BENGHAZI

state there are reliable reports that about 5,000 of our prisoners have been
evacuated by sea to GREECE,

RUSSIA. On the LOSCOW front the Russians are continuing their
advance southwest of KALININ, In the CRIMEA, the Germans and Roumanians are con-

tinuing to attack SEVASTOPOL and are offering strong resistance to Russian attempts
to land at KERCH.

MALAYA. South of IPOH our forward troops have made a steady

withdrawal in face of enemy forces estimated at one division supported by artillery and tanks,

SARAHAK. The Japanese have occupied KUCHING. According to Dutch
sources part of our garrison has reached Dutch BORNEO.
(II) AIR OPERATIONS

WESTERN FRONT. 28th/29th, !!ILHELMSHAVEN, No cloud, visibility

excellent, town and docks clearly seen. 77 tons H.E. and 6,500 incendiaries
dropped. Bursts and fires seen in the centre of the town, near the main railway

station and across the docks, Only one aircraft out of 77 on this objective did
not return,

HULS. 65 aircraft dropped 55 tons of H.E. and 3,000 incendiar
Visibility good, target clearly identified, direct hits obtained and photographs
taken, Bursts followed by fires and one large explosion were seen on various
parts of the objective.

ENDEN, 54 tons of H.E. including five 4,000 pounders, and 2,00

incendiaries dropped, Visibility excellent and slight ground snow helped identi
fication, Several bursts were seen chiefly in the docks area. On the whole a
very satisfactory night and the best for some weeks. 18 R.C.A.F. and 7 R.A. A.J

aircraft took part. One Canadian aircraft missing.

-2-

312

29th/30th. Bombing operations cancelled. About 55 enemy aircraft were operating chiefly over Northeast England. About 25 crossed the coast.
Our fighters destroyed one enemy bomber and two other aircraft are believed destroyed.

MEDITERRANEAN. LIBYA. 28th, Weather being bad in the JEDABYA

area our light bombers concentrated against enemy positions in BARDIA. 4 Blenheims attacked tanker near HOUS (L) and on 28th/29th 4 Wellingtons bombed
TRIPOLI (L).

GREECE and CRETE. 28th/29th. Wellingtons were sent to attack
ISALANIS Naval base and oil installations at the PIRAEUS. Owing to bad weather

only three aircraft attacked their primary objective with unobserved results and
8 others bombed the aerodromes at SUDA BAY and HERAKLION where the runway was
hit.

MALTA. 28th/29th. 10 aircraft attacked, one was shot down by

A.A. fire. 29th, 9 attacks were made by a total of 36 aircraft. One German
fighter and probably a second were destroyed. 3 Hurricanes were lost. 2 Blenheims were damaged on the ground.

FAR EAST. HALAYA. 28th/29th. 4 Blenheims attacked SUNGEI
PATANI aerodrome causing fires and a large explosion. One Blenheim is missing.
29th, An attack by 18 enemy aircraft on KLUANG aerodrome caused little damage.
NETHERLANDS EAST INDIES. 28th. MEDAN aerodrome, North-east

SUMATRA, was heavily bombed. Report of enemy parachute troops dropped is not confirmed.

(III) AIRCRAFT CASUALTIES IN OPERATIONS OVER AND FROLL THE BRITISH ISLES.

German - One destroyed, Two probable.
(IV) HOME SECURITY

Bombing apparently directed upon the MENICASTLE-ON-TYNE area

his heavier than of late, but scattered. There was some damage to house property
and some casualties.

(v) JAPANESE AIR FORCE

Reference summary of 21st, paragraph six. The forces operating
from INDO-CHINA, SIAM and MALAYA have now been increased to about 560 aircraft

of all types, In addition the number of land based heavy beters in the Pacific
Islands has been increased by a second squadron to a total of 24 aircraft.

313

BULLETIN NO. 3

CONFIDENTIAL

COORDINATOR OF INFORMATION

THE BURMESE
AND THE WAR
The Burmese are anti-British, anti-Indian,
and anti-Chinese, and might be pro-Japanese

if promised independence. They could be

effective allies of the Japanese, as their
1930-31 revolution proved.

DECEMBER 31, 1941

THE BURMESE

AND THE WAR
Now that the Japanese are moving on Burma, it is
desirable to know whether the Burmese will cooperate

with the British or the Japanese. The question is
sharpened by the fact that China's resistance to
Japan largely depends on the free passage of war

materials through Burma to the Burma Road. It is
desirable to know whether the Burmese will help or

hinder the passage of materials-and this again is
part of a larger question.
Burmese nationalism is young and energetic. Its
first really violent expression was in December 1930,
when the people demonstrated their unwillingness to

pay the capitation tax which they had been protesting against for years. But the tax issue was
part of a larger issue. According to the Secretary
of State for India who spoke before Parliament in
June 1931, the movement was organized to overthrow the government. Burmese nationalism, under
the strain of the depression, became actively aware
of four groups of foreigners in Burma, the Indians,
Chinese, British, and Japanese.
Attitude Toward the Indians

As long as the Burmese found it easy to make a

living they tolerated Indian laborers, who had a
, Report OR the Rebellion in Burma up to May 3, 1931 (London, 1931), pp. 1-19.
I

lower standard of living, and Indian merchants, who

were engaged in occupations generally not sought
by Burmese. When the depression of 1929 and 1930

forced them to compete with Indian laborers and
Indian merchants, they found themselves in an
impossible situation. Their higher standard of living militated against successful competition with the

laborers while their lack of business acumen made
them inferior to Indian business men. As a consequence, the Burmese developed a substantial hatred

of the Indians and attempted by various means to

discourage Indian immigration. Their first act of
discouragement was mass murder when they rioted

in 1930 and killed or injured several thousand
Indians. This led to consideration of the Burmese

problem by Parliament and the drawing up of a
Constitution which became effective in April 1937.
The Burmese were now in a position to deal legally

and effectively, as they thought, with the Indian
labor problem.
Attitude Toward the Chinese

Hardly had the Burmese begun to take steps to

limit Indian immigration than the opening of the
Burma Road led to the development of a Chinese
problem. The Chinese held the lion's share of the

rice-milling and timber trades, and they shared
profits with the Indians in retail trade. Most of
them lived in Rangoon. As waves of Chinese came

out of war-torn China along the Burma Road the
Burmese began to fear them as an economic threat.

Most of them drifted to Rangoon, strengthening
the Chinese community there. How the Burmese
2

felt about the Chinese was shown by their boycotting collectors for China relief funds. The Burmese

even began to sympathize with the Japanese, not
because they loved the Japanese, but because they
felt that the Japanese might possibly help solve their

Chinese problem. The Burmese would like to get
rid of the Chinese by closing the Burma Road.
Attitude Toward the British

The Burmese feel that British democracy has not
been extended to include the Burmese. When discussion of a constitution for Burma arose the British
attitude was that the Burmese should receive a less
favorable constitution than the Indians because they
considered them unable to govern themselves. The

Burmese profoundly resented this attitude and
became
all the more determined to gain a clear title
to
self-government.
The English have conducted the ordinary affairs

of life in Burma in such a way as to uphold British
prestige and to put the Burmese in their place. The

Englishman has taken it for granted that he can
run through red lights and damage Burmese persons
and property and escape with no official hurt beyond

a fine and a reprimand. But a Burmese involved
in a similar situation is regarded as a criminal and
dealt with severely. When driving along a dusty
highway, the Englishman is enraged if he is unable
to overtake a Burman and escape his cloud of dust,
but he thinks nothing of driving slowly and blocking

the road to force Burmese drivers to keep to the

rear in his dust. The Burmese Governor, Sir
Joseph Mann Gyi, is not permitted inside the
3

English clubs to which the English Governor always
belongs.

An English magistrate gave it as his opinion that:
"We had done two things there which we ought not
to have done. In spite of declarations to the contrary, we had placed English interests first, and we
had treated the Burmans not as fellow creatures,
but as inferior beings."
The rebellion of 1930-31 had but one motive and

one object-hatred of the British Government and
intention to destroy it. So the government itself
said. Although the British have vaguely promised
consideration of dominion status for Burma after
the war, the Burmese realize that the time to get
concessions is when the British need their coopera-

tion-and that is now.
Attitude Toward the Japanese

In commenting on a speech made by Sir Archibald

Cochrane, former Governor of Burma, Mr. F.
Burton Leach said: "The Japanese were newer
arrivals and had not made a place in the country to

the same extent [as the Chinese]. It was quite
natural that Burma should admire the qualities which
the Japanese displayed, and when politics became

a matter of interest in Burma many of them looked
toward Japan for inspiration." He went on to say:
"Did they [the Burmese] realize that if they did not

throw in their lot wholeheartedly with the British
Commonwealth they would find it extremely difficult
to stand alone
that the Japanese had good
grounds for looking upon Burma as a useful acquisi, Burma in War Time, Ariatic Review, October 1941, p. 694.

4

tion ?" He implied that many Burmese were dangerously pro-Japanese. But probably nothing can
be said on this subject except that the Burmese are

interested in any tool or agency that might help

them achieve the national freedom they covet.
How Effective Could the Burmese Be?

The Burmese Premier, U Saw, on his recent visit
to the United States, gave W. Norman Brown and

Conyers Read of the COI the impression that not
only were the Burmese exceedingly dissatisfied with

the British attitude toward their demands for
political autonomy, but also that they might resort
to action of some sort. Naturally the Premier gave

no hint of what this might be. Two obvious
measures are failure to cooperate with British defense
measures and sabotage of the Burma Road.

The opinion of Edgar Ansel Mowrer, reporter for

the Chicago Daily News, recently returned from a
tour of the Far East, is that the Burmese are both
dissatisfied with the British and capable of some

sort of strong action against them.

The official British opinion is that the Burmese
are unable to obstruct Burma Road traffic or to
interfere seriously with empire defense in Burma.
This opinion was confirmed by correspondence with

Prof. John L. Christian of the University of Washington, author of Modern Burma which is to be pub-

lished in January 1942, by the Institute of Pacific
Relations. Mr. Christian says that he doubts very
much whether there could be a Burma revolt, or
effective sabotage of the Burma Road. He feels
that the Burmese, in general, are not that ambitious.
5

However, it needs to be remembered that in their
rebellions of 1930 and 1931 they showed their ability

to freeze up internal commerce and trade. The
British had to put considerable forces, about four
brigades, in the field before the Burmese were quieted.

The rough terrain and heavy jungle areas of Burma

make it possible for poorly armed men to carry on
guerrilla warfare with a minimum of personal danger.

But this is speaking of the effectiveness of the
civilian population of Burma and not the armed
troops. Burmese troops exist to the extent of about
15,000. The question may be asked as to whether
Burmese troops in British employ would fight against

the British. The British are confident they would
not, even in the event of a Burmese revolt. Their
officers are largely British. They and the police
are identified in Burmese minds with the British.
There is always the possibility of their joining a
popular Burmese movement, but there is no evidence
that they would do so.
SOURCES

In addition to those mentioned above:

Maurice Collis, Trials in Burma (Faber & Faber, 1938).
Asiatic Review, especially July and October 1941.
Memorandum recording interview with U Saw (prepared in
the British Empire Section of COI).
Statement of the Impressions of Japanese Desires, Capacity,
and Intentions Obtained by Edgar Ansell Mowrer during
recent trip in Southeastern Asia at the request of Col. William

J. Donovan.

6

u. a. GOVERNMENT PRINTING OFFICE - -

314
COORDINATOR OF INFORMATION
WASHINGTON, D. c.

SECRET
COORDINATOR OF INFORMATION

December 31, 1941

My dear Mr. Secretary:

I am transmitting herewith a
copy of the supporting studies of Monograph
No. 3, "The German Military and Economic
Position, December 1941", which I hope may

be of service to you.
Sincerely yours,

James P. Baxter 3.d
James P. Baxter, 3d

Director, Branch of
Research and Analysis
The Honorable,

The Secretary of the Treasury.

315

SECRET
COORDINATOR OF INFORMATION
MONOGRAPH No. 3

THE GERMAN MILITARY AND
ECONOMIC POSITION

SUMMARY AND CONCLUSION

G

HOME

DECEMBER 12, 1941

COPY No.

Secretary of the hearing

SECRET

CONTENTS
1

SUMMARY AND CONCLUSION

I. MILITARY MANPOWER AND MATERIEL PosiTION OF GERMANY, JUNE 22, 1941

4

A. Manpower
B. Materiel

4

5

C. Materiel production rates

6

II. GERMAN MILITARY LOSSES IN THE RUSSIAN
WAR
6

A. Manpower losses
B. Materiel losses

6
9

III. THE ECONOMIC AND MORALE SITUATION IN
GERMANY

10

A. German manpower resources

10

B. The German food and agricultural position

13

C. The German mineral supply position

15

D. The German petroleum position

17

E. The German transport situation
F. German morale
(1)

19

20

SECRET

THE GERMAN

MILITARY AND ECONOMIC POSITION
DECEMBER 1941
Summary and Conclusion

A. GERMAN MILITARY POSITION
Upon the outbreak of hostilities, in 1939, the German armed
forces totaled about 2 million men. In June 1941 they totaled 9
million, of whom about half have been engaged on the Eastern
front. A tentative estimate places German battle casualties in the
war against Russia at 1,500,000 killed, wounded, and missing to
December 10. This figure excludes what is probably a considerable
loss due to disease, exposure, and other nonbattle causes. To some
extent these losses have been filled by new recruits.
The following table summarizes the limited available data on the
German position with respect to materiel.
Estimated

On hand,
June 1941

Production
rate

losses

(June-

December

(monthly)

1941)

Airplanes (combat)

24,000

1,960

Tanks

30,000

1, 000-1, 700

4, 500
(1)

Artillery:

Antiaircraft
Other
Trucks

9, 000

150

(1)

13, 500

235

(1)

(1)

(i) No estimate.
(1)

10,000

(1)

SECRET

2

The most serious consequences of the Russian war for the German

position have been the following:
1. Manpower losses, especially within the age group 21-28.
2. The strain on transport, especially the railways.

3. The reduction of petroleum stocks, as a result of the high
military consumption rate on the Eastern front.

B. GERMAN ECONOMIC POSITION
Prior to June 1941 the German industrial machine exhibited few
signs of strain, having been bolstered by the stocks and resources

acquired in the campaigns of 1940. These minimized the consequences of the Allied blockade.

The large scale and prolonged operations in the East, however,
have evoked three types of strain on the German economic system.
First, pressure on total manpower and transport resources has been
measurably increased, causing further incursions into the supply
of civilian goods and services and some net decrease in the efficiency

of the industrial machine. Second, the continuance of the war at
its present level of intensity has accentuated the problem of depreciation, with respect to the railways, industrial equipment, and durable
consumer's goods. Third, the large demands of the present campaign
have exposed and accentuated certain specific German weaknesses:

1. The further withdrawal of manpower of military age, from
agriculture and industry, has necessitated the substitution of less
efficient over-age workers, women, foreigners, and war prisoners.
In addition to this general dilution of the labor supply, shortages
exist for special types of workers, notably industrial technicians,
railway workers, and administrators of all types.
2. The large foodstuff demands of the Army have accentuated

somewhat the underlying German weaknesses with respect to
meats, fats, and oils; although the consequences of that weakness
will be greater in 1942-43 than in the current harvest year.

3. The necessity for maintaining military production at a maximum level has caused withdrawals from stockpiles in the following
instances: Tin, copper, antimony, and the steel-hardening alloys
taken as a whole.

SECRET
3

4. The current rate of petroleum consumption is being maintained out of stocks; and there is some evidence, although the data
are inadequate, that the petroleum stock-pile may be exhausted
within the year 1942. On the whole, this seems unlikely.
5. The present transport situation has caused local shortages in
civilian and some industrial supplies. The present strain would be

markedly accentuated if the current winter is severe, and the

internal water-ways frozen for prolonged periods.

6. German morale has been somewhat impaired by the prolongation of the Russian war. Heavy manpower losses and the increasing
remoteness of ultimate victory have necessitated a defensive shift in
the nature of official German propaganda.

C. CONCLUSIONS.
The data are inadequate to assess these weaknesses fully. The
following tentative conclusions, however, appear justified:
1. The strains induced by the Russian war have reduced the absolute

strength of the German military machine and economic machine;
and further limited the supplies at the disposal of civilians.
2. Some of these strains, such as those in manpower and transport
facilities, can perhaps be alleviated by a period of respite from mili-

tary operations on the present scale. Others, however, reflect the

gradual exhaustion of stock-piles of strategic raw materials-a
process which is not greatly affected by the scale of military operations, except in the case of petroleum.

3. German leadership is thus faced with a dilemma in timing:
whether to hold military operations down to a defensive minimum,
while maximizing preparations for new offensives next spring; or to
push on during the winter into areas possessing supplies of needed
raw materials in order to strengthen immediately the basic position.
Many facts unknown to us, or known imprecisely, will influence the

decision. It seems likely, however, that in the coming months
German military operations, whether directed towards strategic or

economic goals, will be on a much reduced scale.
433661-41-2

SECRET

THE GERMAN MILITARY AND
ECONOMIC POSITION
DECEMBER 1941 1
I. Military Manpower and Materiel Position of
Germany, June 22, 1941
A. MANPOWER
Roughly 9,000,000 men were organized in German military and
semimilitary formations at the outbreak of the Russian war. This

excludes the troops of Italy, Finland, Rumania, and other allies,
totaling roughly 44 divisions.

Ground forces totaled 7,500,000 organized in 300 divisions of
which 25 were armored and 35 were motorized.
The German air force personnel totals about 1,200,000 including
pilots, signal corps, antiaircraft forces, parachute troops, and other
attached services.

It is estimated that 179 divisions has been the maximum engaged
at one time in the Russian campaign. This may have amounted,
including all supporting and service forces behind the combat areas,
to 4,500,000 men.
1 The purpose of this study is to consider the fragmentary information available
concerning German military gains and losses in the Russian campaign in relation
to the German economic position as of December 1941. Its conclusions are subject

to revision in the light of a special report, now being prepared by the Eastern
European Section, on German gains in the Russian campaign.
(4)

SECRET
5

B. MATERIEL
1. Combat planes. It is estimated that Germany had approximately 24,000 combat planes available at the outbreak of the Russian
war, as follows:

First Line

Reserve

Total

Bombers, heavy (including long-range
reconnaissance)

220

220

Bombers, medium (including reconnaissance)

Bombers, light (Stukas)
Pursuit, single engine
Pursuit, twin engine

Observation and cooperative

Flying boats, navy fighters and amphibians.

4, 250
1, 190
2, 400
2, 250

4, 250

8, 500

1, 190

2,380
4,800
4,500

2, 400
2, 250

900
(?)

440

900
(?)

1,800
(?)

Total
11, 660

11, 660

23,320

Approximately 50 percent of the German first line plane strength
has been employed on the Russian front; i. e., about 6,000 planes.

2. Tanks.-It is estimated that Germany had 30,000 tanks on
hand at the opening of hostilities. It is to be noted that Germany
is favoring the use of medium and heavy types of tanks.
3. Artillery.-An average estimate of 13,500 guns is submitted as
between a British estimate of 15,000 and an American of 12,000.

Heavy antiaircraft guns amounted to an additional 9,000. The
number of antiaircraft (47 mm.) on hand is not known, but it is to
be noted that these are employed for antitank purposes as well.
4. The percentage of total equipment used on the eastern front

is approximately
ating
there.

in proportion to the number of divisions oper-

SECRET

6

C. MILITARY MATERIEL PRODUCTION RATES
1. Planes.-The present estimated monthly production rate of
German combat airplanes by types is as follows:
Bombers (including heavy, medium and long-range recon770

naissance)

Light bombers

230

Pursuit

730

Army cooperation, coastal, etc

230

Total

1,960

2. Tanks.-Monthly production rate is estimated to be between
1,000 and 1,700 tanks, with heavy and medium types predominating.

3. Artillery, light, heavy and antiaircraft.-It is estimated that field
guns and howitzers were being produced in April 1941 at the rate
of 235 per month; while heavy antiaircraft guns were produced at a
rate of 150 per month.

4. Trucks.-Production in Germany and occupied countries may
amount to 10,000 per month.

II. German Military Losses in the Russian War
A. MANPOWER.
Two announcements have come from German official sources
regarding German casualties in the Russian war. The first, emanating from the High Command, estimated losses to August 31; the

second, made by Hitler, December 11, presented figures up to
December 1. These estimates, together with a derived estimate of
the losses from August 31, to December 1, are presented in the
following table:
Killed

June 22-Aug. 31
June 22-Dec. 1
Aug. 31-Dec. 1

Wounded

Missing

Total

20,299

402, 965

577, 767

33, 334

773, 515

280, 997

13,035

370, 550

85,896
162,314

296, 770

76,418

SECRET
7

The two official estimates are roughly consistent, in that the
proportions among killed, wounded, and missing are similar. They
would indicate, however, a much lower casualty rate for the latter
three than for the first two months of the campaign. Average daily
casualties, from these official German figures, would be roughly

5,750 to August 31, only 4,072 from August 31 to December 1.
While it is certainly true that with lengthened supply lines and
weakened Russian resistance, the numbers of German troops
actually engaged has decreased, it must be remembered that in the
period August 31 to December 1 the following actions against heavy
resistance have taken place: capture of Kiev, Kharkov, Odessa,

Rostov, the Crimean campaign, the closing of the ring around
Leningrad, the Dnieper crossing and two major drives on Moscow,
the first of which (Vyasma-Bryansk) was announced by Hitler as
the "greatest military onslaught in history."
Various arguments, nevertheless, have been advanced in favor of

accepting the German published figures as accurate. It is said
(a) that since the war against Russian communism is popular in

Germany the army has no particular inducement to understate
losses; (b) that a gross understatement would be too easily detected
by the German people; (c) that in the case of earlier statements by

the High Command which can be checked, the statements have

proved to be accurate; (d) that the German figures are not unreasonable from what is known of German tactical methods, making
dueforces
allowance
for the character of the engagements and the size of
the
involved.
None of these arguments is conclusive. If losses are heavy there
is always a strong inducement to understatement; nor is detection

of such understatement an easy matter. The accuracy of past
statements of losses may be explained by the fact that these losses
were small. Though there is every evidence that German tactical
methods have been designed to minimize manpower losses, this
does not necessarily mean that losses in fact have been small.

The only alternative, however, to an acceptance of the German
figures appears to be a choice among the estimates of a number of
483661-41-8
official
and unofficial "observers". These range all the way from

SECRET

8

an estimate of 800,000 in the first 5 months of war to the Russian
"estimate" of 6,000,000 as of early December. None of these estimates appear to be based on a method of calculation which commands respect. Any estimate of German losses in excess of 3,000,000

for the first 6 months of the Russian war would have been incompatible with the magnitude of the German effort in this area, up to

the time that the German offensive was broken off. On the other
hand, a figure considerably in excess of the German reported losses
is probably compatible with this effort.
A calculation based on German losses in the Polish campaign may
afford a clue. Germany officially admitted 665 killed per day in the
Polish campaign of 1939. Five armies were involved as against 13
on the Russian front. Assuming the same rate of loss for all armies,
over a period of 170 days (i. e. to December 10) yields a figure of

294,000 killed. Using a World War ratio of 1 killed to 4 wounded
indicates total casualties of approximately 1,500,000. Resistance
on the Russian front has undoubtedly been more serious than in

Poland. On the other hand, with lengthening supply lines, the
German forces engaged in combat have declined. In view of these
considerations a figure of 1,500,000 total battle casualties to December 10 seems not unreasonable.

If the figures on plane losses given below are correct, the loss of
pilots in the 5 months ending November 22 may be well over 2,000.
1 This calculation represents total battle injuries; and makes no allowance for
possible losses due to other causes. The following statement from the Office of the
Surgeon General is revealing: "It may be presumed that the type of warfare in
Russia affected by tanks, motorized infantry, aviation, excessive cold, rapid movements, supply difficulties, fatigue, etc., will produce high mortality rates. Typhus
fever, always endemic in this area, is probably running wild, as there is little
opportunity for delousing and bathing. Dysenteries may be taking a heavy toll
and pneumonia, meningitis and other respiratory borne infections are probably

on the increase. Without definite figures, it may be presumed that mortality
rates for specific age groups of German males are higher in the Russian front than
they would be for same groups at home during normal conditions. As to German
soldiers in quiet areas the rates should not be higher than normal."

SECRET
9

B. MATÉRIEL LOSSES
Losses include both matériel destroyed in battle and the considerable
percentage
which must be replaced under the hard conditions
of active
service.

1. Best available reports seem to indicate that the German Air
Force lost approximately 1,500 planes in the first two months of the
Russian campaign. If subsequent losses have been proportionate,
then total losses in the first six months of war have probably been

about 4,500 planes of all types. It is estimated that perhaps 1015% of this equipment could be made serviceable through repairs.
It will be noted that the monthly rate of loss appears to be less than
the monthly plane production rate, for all types; although a considerable additional loss has undoubtedly been suffered due to accidents, break-downs, and other non-combat causes.
2. Estimates of loss of other types of equipment are not available.
Military advice is to the effect that matériel losses, from all causes,
can be replaced from existing stocks and current production. German losses have been mitigated, as well, by the fact that Germany
has gained control of most of the battle fields, and thus held a good
part of its own and Russian damaged equipment.

3. Total military petroleum consumption since the outbreak of
the Russian war is considered to be in the neighborhood of 620,000
tons per month of which approximately 75,000 tons are consumed
by the
air service.
This rate of consumption involves some incursion
into
petroleum
stocks.

OTHER FACTORS

Reflection on the fragmentary material available concerning German
losses suggests that although replacement of lost manpower and equipment has not
presented
serious difficulties to date, the following considerations
may
be important:

1. If German casualties are concentrated in the age group 21-33
(but particularly in the age group 21-28), replacements of losses by
soldiers drawn from the same age group may become difficult, due

SECRET

MEN
age groups
46-65

28-45

casualizes

campaisn

million
1 1/2

Russian

23-27

killed

16-22

the

in

wounded

K
missing

out of 9 million men

2-15

TOTAL MEN 38,8000

in the German armed forces

GRAND TOTA

SECRET

©
WOMEN
age groups
46-65

Greater Germany
Germany
Austria
Sudetenland

28-45

23-27

16-22

LION

TAL WOMEN 40,600000
A

400000 PEOPLE

2-15

SECRET

1 9 4 1 GERMA
MEN

age groups
46-65

28-45

1 1/2 all committee complin

11.9

23-27

2.5 MILLIO

16-22

4.5 MILLIO

2-15

8.7 MILLIO

the

in
killed

wounded

missing

#

out of 9 million men

TOTAL MEN 38,8000

in the German armed forces

GRAND TOTA

1

SECRET

OPULATION
WOMEN
.

age groups
14 MILLION

46-65

Greater Germany
Germany

Austria
Sudetenland

1.1 MILLION

28-45

4 MILLION

23-27

A MILLION

16-22

u MILLION

2-15

TAL WOMEN 40,600000

400000 PEOPLE

10

SECRET

to the unnaturally small size of that group within the German
population.

2. The extension and maintenance of a 2,000-mile front, at
increasing distances from German centers of production, has
created a disproportionate demand for railway equipment and
other transport facilities.

3. Since German plane losses have been principally in bombers,

they are somewhat more serious than the over-all figures would
indicate. In view of reserves and the current production rate,
however, plane losses are not to be regarded as a major German
cost in the present campaign.

4. The magnitude of oil consumption in Germany and occupied
countries when combined with military consumption, seems definitely
to create, at least temporarily, a situation in which consumption is
at a greater rate than production.

III. The German Economic Position
A. GERMAN MANPOWER RESOURCES
1. As early as 1935 the present regime in Germany began to
extend a system of controls over employment; by 1936 a large-scale

plan for the control of employment and the inventory, training,
re-training, and allocation of labor was in effect. As a result of the
carrying out of this plan Germany is in an extremely good position
to make the most flexible and efficient use of her labor supplies.

2. At the outbreak of the war in 1939 the potential manpower
resources of Greater Germany were already utilized to an extraordinarily high degree. It is estimated that employment in 1939 was
20 percent higher than in the prosperous year 1929.
3. Before the outbreak of the war in 1939, 2,500,000 men were
withdrawn from employment into the armed services. At the outbreak of the Russian campaign this number had been increased by
approximately 7 million.

SECRET
11

4. Estimates based on German sources indicate that, in partial
replacement of the 7 million withdrawn from employment, Germany
since 1939 has made the following additions to its labor force:
Foreign civilians
Prisoners of war

Women
Men

Volksdeutsche

1,600,000

1,500,000
500,000
500,000
150,000

4,250,000

5. Qualitative impairment of the labor force has been as important as the net reduction in numbers. Prisoners of war, Polish
and Italian civilian workers, men called back from retirement, and
women workers do not provide adequate replacement for the men
of active age drawn into military service.

6. Industrial output per hour worked showed no net increase
between 1933 and 1939, and has undoubtedly declined since 1939,

even among those employed in their normal occupations. This
decline has been accentuated by the qualitative impairment of the
labor force. The decline in average productivity per man-hour has
been
partially offset by an increase in the number of hours
workedonly
per week.

7. As a result of the reduction and dilution of the labor force,
together with some material shortages and transportation difficulties,

there has occurred a decline in the volume of industrial output in
Germany since 1939 which has been estimated by the BMEW to be

as much as 20 percent. While evidence is lacking to support this

figure, it is clear that total output has fallen. This decline was
concentrated in the goods and services available to civilian consumers, while production of war materials probably increased.
8. Previous to 1939 the shift in production from civilian to military
output had been such as to reduce per capita production and consumption of civilian goods by 10-15 percent below the 1929 level.
Since 1939 this shift has been accentuated Perhaps the most illuminating evidence of the concentration of effort in war production is
the increase in employment in the metal trades by approximately

2,200,000, an increase of roughly 50 percent.

SECRET

GERMAN L AB
MAY
1939

Before the outbreak of the war in

1939 the 40 million workers in Greater
Germany were practically all employed.

mm

There were 2 million
men in the armed forces

SECRET

SHORTAGES
FALL

1941 The number employed had fallen
to about 37 million in spite of recruit
ment of about 4 million new workers.

it

nn 11111
7 million men were drafted from
the employed for the armed forces

4 million new workers

SECRET

12

9. Judgment as to the existence of a general manpower shortage

in Germany is a matter of definition. It is obvious that manpower
resources under German control are not sufficient for the maintenance of normal output for German civilians plus the requirements of

the present war effort. A more reasonable criterion would be the
maintenance of the present war effort plus a tolerable level of civilian

output. There are evidences that this standard is becoming increasingly difficult to maintain in Germany, especially since the outbreak of the Russian war, despite the exploitation of Continental
manpower and other economic resources.
It is, however, impossible to allocate exactly the extent to which a
manpower shortage, as opposed to shortages in transport, raw materials, and productive capacity, is responsible for present strains.
Specific evidences of manpower shortage, by this definition are the
extraordinarily long hours of work demanded of German labor; and
the extreme efforts made to employ special types of foreign labor;
e. g., Polish miners, Belgian and Dutch engineers, etc. A general
manpower shortage, however, must be regarded as one of several
over-all limits to German output, rather than as a bottleneck capable,
in itself, of precipitating crisis.
10. Germany's most decisive and least manageable manpower
problem is the shortage of men suitable for active combat troops.
Here foreign manpower can be used to a strictly limited extent, and
war prisoners are useless.

Due to the great fall in the number of births in 1914-18, Germany

has only 2,244,000 men between the ages of 23 and 28-about
1,500,000 fewer than if the pre-war birth rate had been maintained.
Even including those now 21 to 23, and those 28 to 33, there are
only 7.2 million men from 21 to 33, and this is the best age group
for active combat.
Losses from this group, undoubtedly heavy already, are virtually
irreplaceable. This shortage may prove serious in the face of protracted Russian resistance and may be decisive should the man-

power resources of hitherto noncombatant areas ever be fully
mobilized against Germany.

SECRET

13

B. THE GERMAN FOOD AND AGRICULTURAL POSITION
1. Except in meats (rations for which were reduced 20 percent
in June 1941) German food rations have remained about unchanged

since early spring 1940. In order to assure most efficient use of
available supplies, the German rationing system makes allowance
for the differing requirements of various classes of consumers. They
are largest for soldiers in active combat, and are larger for workers
performing arduous labor than for other civilians.

2. Present German food rations can be most readily compared
with pre-war consumption in the three important food groups-flour,
meats, and fats and oils. For front-line soldiers, the rations of each
of these items are somewhat larger than in 1936-37. For civilians
as a whole, average flour rations have been reduced by 6 percent,
fats and oils by 33 percent, and meats by 46 percent. The June 1941

cut in meat rations was announced as temporary. Restoration of
the pre-June allotments would still leave consumer rations one-third
below pre-war. German potato production is far in excess of human

requirements, even though this consumption-which is not rationed-has increased by at least 50 percent for the old Reich as a
whole. These increased shipments have further aggravated a transport
situation
which districts.
has, from time to time, created acute shortages
of
potatoes
in some

3. In terms of caloric, or energy, intake, present German diets

appear adequate or nearly so; in terms of longer-run nutritional
requirements for vitamins and calcium, diets are deficient. Besides
lowering resistance to infection, these shortages will, if they persist,
result eventually in deficiency diseases such as pellagra and rickets.

4. Without drawing on the Ukraine and without significant
encroachment on existing stocks, Germany can maintain present
flour rations during the crop year 1941-42. The 1941 grain crop
appears to have been normal in Germany, and larger exports than

in 1940-41 can be from the

5. Present lowmeat
expected
Danubian
Germany
rations
can countries.
be maintained
in during
the crop year 1941-4 without reduction in German livestock herds.
This will involve, however, continued drastic restrictions on meat

SECRET

14

consumption in German dominated countries as well as additional

slaughter of herds in Denmark and the Netherlands. Supplies of
animal feedstuffs are, in any event, inadequate to maintain livestock population in these countries. Restoration of German meat
rations to the pre-June level would necessitate a reduction in German
livestock numbers.

6. Fats and oils are the weakest element in Germany's food position. In the year 1940-41, the German fats and oil stockpile had to
supply over 20 percent of her domestic human utilization of such
foods. Stocks on August 1, 1941, were estimated at little more than

one month's consumption. Domestic production can supply only
about 60 percent of requirements at the current level of rationing.
Further curtailment of consumption during the coming winter and
spring is definitely called for, unless additional supplies not now in
prospect can be obtained. The present supply position, however,
permits a level of consumption above that of 1916-18.

7. The German standard of living in items other than food has
undergone substantial curtailment since the outbreak of war. New

clothing rations have been introduced in October which involve
a reduction of 50 percent from those previously in effect. Leather

has virtually ceased to be a civilian consumers good. Fuel for
domestic heating has been available only in limited amounts. Most
durable consumer goods, already sharply curtailed before the outbreak of war, have become unavailable. In general, however, these
shortages are not as dangerous, potentially, as those in nutritional
foodstuffs.

8. Only the German position with respect to meats, fats, and oils
emerges, as of possible strategic importance in the area of the economy examined here. Supplies for the 1941-42 year, however, may

not present any insuperable difficulties. But, Germany will enter
the 1942-43 year with depleted stocks of these commodities. Her
present sources of imports will be able to provide less than in the
current year, and it is unlikely that a victory in Russia can appreciably add to her prospects. Germany will have to depend more upon
home production, particularly of livestock-which supplies the bulk
of domestic fats and oils, as well as meats.

SECRET

GERMAN FOOD CONSUMPTION
SOLDIER
current

NORMAL CONSUMER

FATS

100

AND

803

future

OILS

60
current

40
202

0

MEAT

are

100

802

pre war
60?

402

10)

0

pre

was

current

100

FLOUR
10%

602

40
current

103

0

To some extent caloric deficiency resulting from reduced consumption of fats, meats

flour and
has been met by increased consumption of potatoes
which
are other
not yetcommodities
rationed.
Percentages are based on consumption of average soldier in pre-war period (1936-'37) = 100

SECRET

14

consumption in German dominated countries as well as additional

slaughter of herds in Denmark and the Netherlands. Supplies of
animal feedstuffs are, in any event, inadequate to maintain live.
stock population in these countries. Restoration of German meat
rations to the pre-June level would necessitate a reduction in German
livestock numbers.

6. Fats and oils are the weakest element in Germany's food position. In the year 1940-41, the German fats and oil stockpile had to
supply over 20 percent of her domestic human utilization of such
foods. Stocks on August 1, 1941, were estimated at little more than
one month's consumption. Domestic production can supply only
about 60 percent of requirements at the current level of rationing.
Further curtailment of consumption during the coming winter and
spring is definitely called for, unless additional supplies not now in
prospect can be obtained. The present supply position, however,
permits a level of consumption above that of 1916-18.

7. The German standard of living in items other than food has
undergone substantial curtailment since the outbreak of war. New

clothing rations have been introduced in October which involve
a reduction of 50 percent from those previously in effect. Leather

has virtually ceased to be a civilian consumers good. Fuel for
domestic heating has been available only in limited amounts. Most
durable consumer goods, already sharply curtailed before the outbreak of war, have become unavailable. In general, however, these
shortages are not as dangerous, potentially, as those in nutritional
foodstuffs.

8. Only the German position with respect to meats, fats, and oils
emerges, as of possible strategic importance in the area of the economy examined here. Supplies for the 1941-42 year, however, may

not present any insuperable difficulties. But, Germany will enter
the 1942-43 year with depleted stocks of these commodities. Her
present sources of imports will be able to provide less than in the
current year, and it is unlikely that a victory in Russia can appreciably add to her prospects. Germany will have to depend more upon
home production, particularly of livestock-which supplies the bulk
of domestic fats and oils, as well as meats.

SECRET

GERMAN FOOD CONSUMPTION
SOLDIER

NORMAL CONSUMER

FATS
100

-

AND

80%

future

OILS

60
40
estimated

10

father

0

current

MEAT

are

100

80
are

60

40

103

0
are

was

100

FLOUR
so?

602

40
current

10

0

To some extent caloric deficiency resulting from reduced consumption of fats, meats
flour and
has been met by increased consumption of potatoes
which
are other
not yetcommodities
rationed.
Percentages are based on consumption of average soldier in pre-war period (1936-37) = 100

1

-

SECRET

15

9. Allotments of phosphate fertilizers in 1940-41 were about 40

percent of those in 1937-38. Crop yields in Germany may be
adversely
next
year's affected
crops. if increased supplies do not become available for

C. THE GERMAN MINERAL SUPPLY POSITION
1. In the period 1933-39 Germany prepared for a major war by

taking the following types of action with respect to minerals in

which her domestic supply was deficient:
(a) Large scale imports for stockpiling.

(b) Rigid controls and, later, restrictions on civilian consumption.
(c) The provision of facilities for the manufacture of substitutes
on a large scale (notably oil).

(d) The substitution of abundant for scarce materials (notably

the light metals and zinc for copper).

The German mineral position was materially strengthened as a

result of the campaigns of 1940 by the acquisition of additional

stocks and of new mineral resources.

2. Deficiencies in certain commodities have, nevertheless, persisted, and the Russian campaign has probably accentuated them,
insofar as it calls for increased output in the aircraft and armament
industries. Excluding the steel-hardening alloys, examined below,
the present
position of the German mineral supply may be summarized
as follows:
German Position Secure: Bauxite and magnesite, coal and lignite,
iron ore, manganese (assuming Nikopol mines available), zinc ore,
lead ore, and mercury.
German Position
Strained But Not Yet Critical: Copper, tin, antimony,
phosphates,
and coke.

3. A shortage in the steel hardening alloys has persisted, despite
extreme efforts at conservation and substitution. Wherever possible
the alloys have been eliminated and the percentages used, reduced.
In general, molybdenum and, to a lesser extent, vanadium have
been substituted for the more scarce nickel and tungsten. A sum-

SECRET

16

mary of the German position with respect to each of the major alloys
follows:

Tungsten.-Portuguese output being expanded and going increasingly to Germany. Despite this development and extensive substi-

tution of molybdenum, the German stockpile is probably being
reduced, since the Russian war cut off the Chinese supply.

Molybdenum.-Yugoslavia, Norway, French Morocco and other
areas probably yield about 15% of world output to Germany. Extreme effort being made to expand Continental output. Stockpile
position probably better than for tungsten, but being slowly reduced.

Nickel.-Perhaps most serious of all alloy shortages. Stockpile
probably being reduced quickly. Limited crisis may develop unless
Petsamo mines can be set to work in Finland. This seems unlikely
in near future.
Chrome.-Conflicting evidence on amount of Balkan supply coming

to Germany. Stockpile probably being reduced, although full exploitation of Balkan resources might check trend.

Cobalt.-Necessary for both steel and hydrogenation. French
Morocco only major source of supply. Probably sufficient if freely
exploited and transport made available.
Vanadium.-Probably sufficient supply to be drawn from steel slag
and burnt oil residue.

Manganese.-Ample supply, if Nikopol production successfully
mined and transported from Ukraine.

4. It is impossible to evaluate precisely the net significance of
the various shortages within the German mineral supply position.
There is no reliable evidence that either the quality or the quantity
of German military production has yet suffered in consequence of

such shortages; although it should be borne in mind that output
could be maintained for a considerable period out of stockpiles.
Stockpiles are being reduced in the case of copper, tin, antimony,

nickel, chrome, and tungsten. The moment of their exhaustion
can not be deduced from available evidence, although crises have
been predicted by the British in copper and chrome in the course
of 1942.

SECRET

17

D. THE GERMAN PETROLEUM POSITION
1. To ensure an adequate petroleum supply in case of a major war
has been a prime objective of German policy since 1933. Between
1933 and 1939 the following types of action were pursued:
(a) Large stocks were accumulated from abroad.
(b) The domestic output of crude oil was sharply increased.

(c) Large plant facilities were provided for the manufacture of

synthetic petroleum products.
(d) Less essential uses were curtailed.

2. The acquisition through conquest of the prime oil producing
areas of Europe has probably constituted a net accretion to Germany's petroleum supply, although that accretion was limited by
the simultaneous acquisition of responsibility for satisfying the minimum petroleum needs of Italy and the occupied areas.

Quantitative appraisals are subject to a wide margin of error, but
the situation in the year between the end of the campaign in the
West and the beginning of the campaign in Russia appears to have

been roughly as follows:

(a) With the completion of the Western campaign in 1940 and

with the Continent-wide application of stringent economies, it
would appear that the relation between consumption and production was such as to permit at least a balance, at a level of 14-16
million tons annually, and probably some accretion to military stocks.
(b) This relatively secure situation, however, depended not only
upon widespread use of substitute fuels and stringent economies
but also upon the fact that the German armies were not used actively and on a large scale in the year following June 1940.
(c) Within the rough equilibrium or surplus that appears to have
existed, there may have been shortages of particular products,
notably Diesel fuel and lubricants; and some surplus, under existing
economies, of certain types of gasoline. Some observers hold, however, that there is almost complete flexibility as regards the proportion of particular products available to Germany, provided the total

basic petroleum supplies are adequate.

SECRET

18

3. The Russian campaign has altered this situation in the following respects:

(a) Total consumption of petroleum has undoubtedly increased
substantially, despite further curtailment in less essential uses.
(b) Difficulties of oil transport from Rumania to Germany, which
had inhibited the effectiveness of this area as a source of supply, are
reported to have been somewhat alleviated; and it has proved pos-

sible to send Rumanian oil directly North and East, to the Axis
armies in the field.

(c) Russian petroleum supplies, previously available at the rate
of about a million tons a year, have been cut off and this has been
only partly offset by the acquisition of the Galician fields.

(d) Heavier R. A. F. bombings have probably impaired the
operating efficiency of refineries and synthetic plants in Western
Europe and destroyed some oil stocks.
Almost all estimates of current consumption indicate that Germany

is at present maintaining its war machine partly out of petroleum

stocks, accumulated before June 1941. Estimates of the rate at
which depletion is proceeding vary; the extreme calculations,
chiefly British, indicate that the present rate, if maintained, would
exhaust German petroleum resources within the next calendar year.

4. The following factors make complete exhaustion unlikely
within the next year:
(a) More moderate estimates of continental consumption suggest
that the drain on stocks may be as little as 10 percent per year.
(b) The intensity of warfare, and therefore the oil consumption
rate, will probably not remain steadily at its present high level.

(c) The possibility that Germany will gain control of the fairly
accessible oil fields of the Northern Caucasus. In that case, sub-

stantial quantities of oil will probably be obtained, regardless of
Russian sabotage and the difficulties of transport.
(d) There is still a small margin by which civilian consumption
can be reduced; and the possibility of using producer and bottle gas
equipment in motor vehicles and other industrial and commercial
uses has not been fully exploited.

(e) New synthetic oil plants may be brought into production.

SECRET

19

(f) The Rumanian oil fields may be exploited more fully.
5. On the basis of present evidence, therefore, it cannot be predicted that Germany will suffer a critical petroleum shortage in 1942.

E. THE GERMAN TRANSPORT SITUATION
1. Upon the outbreak of war in 1939 the German transport system was probably in good physical condition. At that time, however,

the limit of intensive utilization of rolling stock had about been
reached; subsequent
transport demands have been met largely by
curtailing
civilian services.
2. From 1939 the traffic burden of the railways has been increased

by the reduction in coastwise shipping and in trucking, due to the
gasoline shortage. The relocation of industry and the increased use
of coal, wood pulp, bauxite, and potatoes in the development of
substitutes have also increased the transport load. The acquisition
of transport responsibilities in east and southeast Europe has probably

involved some net liability to the German transport system. France
and the Low countries, on the other hand, probably contributed an
important accretion of rolling stock and locomotives.

3. Until the Russian campaign the transport facilities under
German control proved adequate generally for the requirements
of the war economy. This rough equilibrium was achieved by curtailing civilian services, by avoiding coincidence between the harvest peak load and large scale military movements, and through the
above-mentioned accretion of rolling stock. The greatest period of

strain occurred during the winter of 1939-40, when the unusually
severe freeze
immobilized the inland waterways (which carry 25
percent
of all freight).
4. The additional burden imposed by the Russian campaign has
been sufficient to cause symptoms of a transport shortage, potentially
capable of reducing the total efficiency of the German war economy;
coal has accumulated at pitheads in Silesia, crop movements have
been delayed, measures to increase the use of waterways have been
taken, and efforts have been made to speed the loading and unloading of trains. Local shortages of consumers goods have accentuated

SECRET

20

an already difficult civilian position, both in Germany and in occupied areas.

5. The significance of the present transport shortage is difficult
to evaluate on the basis of present limited information. Thus far
civilians have largely borne the impact of the new strains induced

by the Russian war. Coal shipments to Italy and Sweden have
been reduced and shortages of supplies for German war industries
have been reported. The extent and the rate at which the output of

military equipment and their supply to the fighting fronts may be
affected can not be stated. The immediate seriousness of the
situation can readily be exaggerated, but at the very least, the
shortage means that organizational and material resources, which
are vitally needed in uses that contribute more directly to military
success, must be devoted to the alleviation of the transport difficulties.

It may be possible to measure the degree of strain more closely
during the coming winter, when pressure on the German transport
system would, in any case, be expected to increase.

F. THE PRESENT STATE OF GERMAN MORALE
1. From 1933, and even before, German morale was prepared
for the responsibilities and hardships of offensive military action.
The advent of the National Socialist regime was accompanied by

the institution of elaborate efforts to control and direct public
opinion to this end.
2. Nazi propaganda theorists have realized that during a modern
total war efforts to control public opinion work within narrow limits:
The real underlying factors remain, as elsewhere, the success, actual

and prospective, of military operations and the hardships and discomforts borne by the people.

3. From the outbreak of hostilities in 1939 until June 1941 the
strength of German morale was unquestioned. This may be
regarded essentially as a consequence of the great German victories was

and, perhaps more important, the feeling that total victory
certain and within sight.

SECRET

21

4. The prolonged and difficult campaign in the East has affected
German morale in the following respects:

(a) Civilian supplies of all kinds have been diminished due, in
part, to the pressure on transport facilities and on the labor supply.
(b) British bombing has been intensified.
(c) Manpower
losses have been sufficiently heavy to impress themselves
upon the public.

(d) Perhaps most important, total victory has ceased to be an

immediate prospect for Germany.

5. The official response of the propaganda ministry to this situation has been to present total victory against total annihilation as
the only real alternatives for the German people.

6. This suggests that the necessary condition for a "collapse of
German morale" is the universal realization, as a result of serious
military set-backs, that ultimate defeat is inevitable. Further drastic
reductions in the civilian standard of life are capable of weakening
morale in
such
a way as to make it more susceptible to military
reverses
and
to collapse.
7. Another possibility must be recognized, however. Should the

tide of the war run strongly against Germany it is possible that
German public opinion will shift from its present offensive attitude
to one of last-ditch defense; and the full power of the propaganda

ministry will be directed to that end. In that case, a distinct
"collapse of morale" may not occur. But even this possibility is
contingent upon a belief in some chance of German victory, coupled

with a conviction that Allied victory would bring vengeance and
disaster to the German people rather than peace and better living.

U.S. GOVERNMENT PRINTING OFFICE: 19

433661

-

316
NUMBER 12

SECRET

COORDINATOR OF INFORMATION

THE WAR
THIS WEEK
December 24-31, 1941

Printed for the Board of Analysts

Copy No. 3

DECEMBER 24-31, 1941
SECRET

THE WAR THIS WEEK
December 24-31, 1941

On the crucial eastern front the general counteroffensive
of the Soviets is perceptibly slowing and a winter stabiliza-

tion of the Russo-German line may not be far distant. At
the same time the Cyrenaican offensive has reached a elimax
in the capture of Bengazi, and advance patrols of the British

are already harrying remnants of the enemy into the broad
stretches of the Tripolitan desert. From present indications,
the British successes may evoke a German counterthrust in
French North Africa and very possibly a consequent stabilization once again of the war along the North African littoral.
In the Far East the wide-ranging Japanese offensive has

swept as far south as Sumatra and now extends over an
area as deep as that from Canada to Mexico. Some highly

placed military authorities are inelined to emphasize the
fundamental weaknesses of the Japanese and to characterize

their initial and spectacular successes as "short-run," The
long-run view has been implicit in a series of conferences

seeking coordination of the Allied war effort and bringing
together in the course of the past ten days the President and
Churchill in Washington, Stalin and Eden in Moscow, and
Chiang Kai-shek and Generals Wavell and Brett in Chungking
Situation on the Eastern Front

In their retreat to the west the Germans have suffered
heavy casualties and loss of equipment, high military sources

state, and in some sectors the Nazis have been severely
harassed and prevented from retiring according to plan. At
1

SECRET

the same time, the withdrawal from Finland of Nazi specialist

troops, to be sent to Russia as the cadre for new units, is

viewed by the French Military Attaché in Helsinki as

a

significant commentary on the high German casualty rate in
the recent Moscow offensive.

Meanwhile the Soviets have initiated an over-water offensive against the Crimea where the prompt capture of
Kerch and Feodosiya reveals notable striking power on the

part of the Russians. It is too early to estimate the importance of this new drive, but continued Russian successes
along the Crimean littoral would provide further insurance

for the Caucasian oil fields, tend to lift pressure from the
Don-Donets industrial region and strengthen the Russian
hold on Sevastopol. In so far as the Russians strengthen
their naval position in the Black Sea, they encourage Turkish

resistanceto the Nazis.
Despite these recent successes, there are evidences of the

slowing of the Russian offensive, and the London radio appears to be going so far as to prepare its audience for a halt
by the Soviet armies, perhaps after they have recaptured

the whole of the Leningrad-Moscow railway and possibly
also the north-south line from Moscow to Kharkov and
Rostov. The elimination of German salients and the general
"flattening" of the line also suggests an early stabilization

Russian Versus German Advantages

Winter conditions appear to have reduced the campaign
the eastern front to a more primitive level and to have close
on given certain advantages to the Soviets, according to S accus-

observer of the Russian scene: The Russians are more and
tomed to cold and snow-and ski troops, horse cavalry,
2

SECRET

horse transport seem to have given them a superior mobility.

For the duration of the winter and of the spring thaw, the
chances are that they will hold a certain military advantage
over the Germans without, however, being able to defeat them.
On the other hand, in view of Germany's original advantage

in productive capacity and the critical decline in Russian
production resulting from the German invasion, it is almost
certain that the productive capacity of Germany now

exceeds if the Germans

large
that of Russia.
material Hence,
do not greatly
exhaust
amounts
inofheavy
operations
else-

where, they will apparently have by spring a large advantage
over the Russians in planes, tanks, and other military equipment for the renewal of the war on the mechanized level.

The Importance of Supply to Russia

With Russia and Germany each possessing certain advantages, and with the latter increasingly threatened by American
power, the stage might be set for a new compromise on the
1939 model, notes our observer. This danger and the state-

ment by Churchill-that the great British and American
battle effort can be made only in 1943-focus attention on the
importance of supplying Russia and China in 1942 and of
conducting secondary naval and military operations for their
support. A basic problem is that of available routes, and the

Coordinator of Information has just completed a study of
supply routes from the United States to Russia (see map).
In any large scale attempt to supply the Soviets, the Allies
face a most difficult task. The basic problem is not one of
selecting the most satisfactory route but one of utilizing and
developing to the fullest extent a number of unsatisfactory
routes,

3

I

SECRET

Routes to Russia From the United States
The normal routes by way of the Baltic, the Black Sea, and

the European land frontier are closed. Vladivostok is not
available to enemies of Japan, although some goods from the
United States may percolate through Siberian ports on Rus-

sian or neutral ships. Ice-free Murmansk is exceedingly
vulnerable to enemy attack and at least until recently was
not being used for shipments to the interior. Arctic ice and
the threat of enemy action seriously handicap the utilization

of the route through Archangel. The northern sea route to
the Siberian rivers is open for a brief season in summer only.
The principal routes through the Middle East are already
heavily taxed by British demands, and yet, despite that fact,
the two roads across Afghanistan from India may still become
the "Burma Road" to Russia. These roads are based on the

modern port of Karachi in India and after minor improvements-which can best be undertaken, in Afghanistan, by an
American agency-these roads should be capable of delivering about 15,000 tons per month each at the Russian railheads in Central Asia.
The most promising single measure for the quick development of large year-round deliveries to Russia, however, is

to establish the military security of Murmansk and its railroad connections via the Murman and Archangel railways.
If this route could be made secure, it might well be able to
handle at once roughly 100,000 tons per month of imports.

All these routes to Russia are very long. It is 4,673
nautical miles from New York to Archangel; 12,010 miles
from New York via Cape Town to the head of the Persian
Gulf. And at the present moment the safest route from San
Francisco to the same destination via Melbourne is 13,208
miles, some 2,000 miles longer than the usual route by way
of Singapore.

4

SECRET

Uneasy Sweden

Caught between Germany and Russia, and fearful lest an
overt act by either side draw her into the war, Sweden doubtless hopes for the exhaustion of both her troublesome neigh-

bors. At the same time there are indications of increasing

Swedish sympathy for the Anglo-Saxon cause.

The Swedish Minister in Helsinki deprecates Finnish
subservience to the Nazis and states roundly that the Swedes

have likewise chosen sides and that the period of their
neutrality is drawing to a close. Sweden's destiny, he says,
depends less on diplomacy than on strategic necessity, and
he intimates that Sweden could put up a good fight against
the
invading
Nazi
provided
she were given air assistance by
Britain
and the
United
States.
The Minister's statement reflects a steady shift in Swedish

public opinion. On December 17, the Riksdag, far from
accepting a German hint that Swedish manpower could be
better employed elsewhere than in the army, adopted a law

increasing the period of conscript military training to 450
days, and raising the age limit to 45 years. Russian resistance

has helped dispel the myth of Nazi invincibility, and anger
at the brutal treatment of the Norwegian people, outspokenly
reported in the Swedish press, has replaced the original dissatisfaction at British bungling in the Norwegian campaign.
Since the Finnish signature of the Anti-Comintern pact,
Swedish sympathy for that country has significantly cooled.
And the declaration of war by the United States has brought
into the Allied fold a nation toward which the Swedes feel
much good will. More and more the Swedes hope for the
liberation of the whole of the Scandinavian North, an atti-

tude reflected recently by the Swedish Foreign Minister
when he said, "We cannot imagine a future for Scandinavia

without every part of it recovering its national liberty."
5

SECRET

Victory in Cyrenaica

The Battle of Cyrenaica is coming to a successful close
and that of Tripolitania may soon begin. The victory was
due to British superiority in planes and tanks over greater
Axis manpower, and it was won even more quickly than that
of General Wavell a year ago. The Axis is landing reinforcements in Tripolitania to bolster General Rommel's army, but
the Mediterranean passage has become a difficult one, and
the British go so far as to claim that they have sunk seventy-

five
per cent of Axis ships leaving Italy for Tripolitania by
the direct route.
Future moves in the Mediterranean are necessarily domi-

nated by the problem of supply. Land-based aircraft at
Crete are seriously interfering with the maintenance of supply

routes by sea to Bengazi, according to a completely trustworthy source, and greater dependence on motor supply
routes may mean a slowing of British operations after the
mopping up in Cyrenaica. The difficulties of supply, together with heavy Axis air attacks from concentrations in
Crete and Italy, may prevent extension into Tripolitania of
the British offensive and might even render precarious the

British position in western Cyrenaica, military authorities

believe.

Increased Activity in the Mediterranean
The logic of the present situation in North Africa suggests

an early German counter-move, and there is a definite
probability that the Axis will attempt to assert control over
French North Africa and the western Mediterranean, moving

either by the Straits of Sicily or by that route and simultaneously through the Iberian Peninsula.
Increased German activity in the Mediterranean area is
already in evidence. Abnormal U-boat action in the western
6

SECRET

area has been reported in past few days. Air-raid warnings
in Malta were fifty-two in number last week, a record.
The Nazis are again reported to have sent heavy air rein-

forcements to southern Italy, and units of ten different
German wings from Russia and one from Norway have been

seen on northern Italian airfields. Air units in Greece are

also being strengthened.

There is cumulative evidence that a Mediterranean base
for supplying fuel on a big scale is being established under

German control, apparently at Port Saint-Louis at the
mouth of the Rhone. Shipments from Germany of 40,000
tons of oil destined for the tanks of the Raffineries Françaises
are reported, including both diesel oil and gasoline, suitable
for submarines and motor torpedo boats.
Renewed Pressure on Vichy

The corollary of early German action in North Africa is
increased pressure on Vichy. General Juin has just now
been ordered by Vichy to deliver to the Libyan border for
Axis use 3600 tons of gasoline. It is believed that this
gasoline is to come from French supplies in North Africa, a
breach of the economic accord between the United States and

Vichy. Since Vichy has obviously acted under pressure,
General Juin proposes to obey the order "technically" but
remarks that the gasoline will be a long time in arriving. In
the case of the "delivery" of 1100 trucks, Vichy has already
taken more than seven months and the job is not yet done.

The total impression created by the evidence is that a
crisis in Franco-German relations is definitely in the making.
A member of Admiral Darlan's entourage believes that a

Nazi ultimatum will arrive shortly after the beginning of
the new year and that then there is "no telling" what will
happen.
7

SECRET

At the same time we have fresh evidence that Pétain has
no intention of resigning and believes himself destined to lead

the French people out of the wilderness. Some observers
certainly are able to envisage his accepting even onerous
Nazi demands in the interest of "rescuing" further thousands

of French prisoners from Germany and of "sparing" his
country complete occupation by the enemy. Whatever the
Marshal elects to do, it is very difficult to believe that the
Germans
will not have their way with Vichy whenever they
decide
to act.

The Widening Japanese Offensive

In the Far East the past week has witnessed the fall of

Hong Kong; the capture of Kuching, capital of British
Sarawak; and Japanese bombing attacks as far west as
Medan in Sumatra. Of greater significance is the fact that
the Japanese are relentlessly drawing in the pincer jaws on

Manila from the northwest and southeast, while the city
itself is being softened by air attacks alike on civilian sections and docks and on the fortress of Corregidor. Simultaneously the Japanese have thrust the western prong of their

Malayan offensive far down the peninsula and past Ipoh,
which lies less than 300 miles from Singapore by railroad
and excellent highway.

In the whole Far Eastern theatre the Japanese enjoy at
present the great advantage of being able to move their forces

from one front to another in comparative freedom. But this
advantage Japan must capitalize before British and American
strength is built up and before Japan feels the serious pinch
of her own economic difficulties, according to a highly placed
military source. Time and Russia, the latter believes, are on

the Allied side in the Far East.
8

SECRET

What the Philippines' Loss Would Mean
Whereas Hong-Kong might have been blockaded and bypassed by the Japanese, the Philippines are so strong and

extended that it would have been dangerous not to have
attempted the conquest of the Islands by direct assault. In

the hands of the Japanese, the Philippines would, if adequately prepared for defense, provide an impressive rampart
for the South China Sea and a series of stepping stones on
the way to further conquests in the Netherlands Indies.
From an economic point of view, the loss of the Philippines
would be a blow to this country, which gets notable percentages of certain vital imports from the Islands: 25 percent of
abaca.
its chrome ore, 95 percent of its copra, and 97 percent of its

In the Philippines it would not be easy to resort to the
policy of the "scorched earth." It would be difficult to disrupt the functioning of the iron and chrome mines by reason

of the limited amount of capital equipment used. Agricultural crops, such as rice and tobacco, are difficult to de-

stroy. Nor is it likely that the Filipinos will be keen to
destroy crops in islands already short of foodstuffs and

whence they have no place for retreat.

The Japanese Drive in Malaya

Details on the Japanese successes in Malaya are still
scarce, but it is clear that they are capitalizing to the full the
advantages offered by this difficult terrain. A reliable military source describes the Japanese forces in northern Malaya
as a highly trained army equipped with a high proportion of
tommy guns and mortars and employing all kinds of ruses in
an attempt to lower the morale of the British troops.

9

SECRET

The Value of Singapore

Despite the rapid advance of the Japanese toward Singspore, no prediction is yet in order as to the probable fate of
of

would, however, a great magnitude to the fortunes western

Singapore Britain's primary stronghold of the constitute Allies in the in Far the blow East. of The Pacific. loss

Strategically, the whole defense of the Netherlands Indies
is based on Singapore. The destruction or evacuation of the

British army defending Singapore would remove the one
important land force opposing a Japanese attack on the
Burma Road. It is extremely doubtful whether this road
could then be defended.

For the defense of the Indian Ocean the British Navy
would be thrown back on distant bases-Colombo and
Trincomalee in Ceylon (1,500 miles from Singapore) and
Durban in East Africa (about 5,000 miles from Singapore).

Under these conditions, it would prove difficult to protect
Allied shipping lanes to the Persian Gulf, and cargoes destined

for Russia or for the British forces in Iraq and Iran would be

extremely vulnerable to submarine attack.
In Japanese hands, Singapore would become a base for

hostile operations against all the areas which it had been
built to protect. From bases at Sydney, Melbourne, Brisbane,

and Auckland the British Navy would of necessity fight a
delaying action. At all costs it would attempt to defend
Port Darwin in north Australia, a potential base for Japanese
bombing of the great cities to the south and west.

Moral and Economic Repercussions

The moral effect of such a reverse would be stunning-both
to white and native populations under the British flag. Not
only would the symbol of Imperial defense in the East be
10

SECRET

gone. Public opinion in India might ask for the return of
Indian troops from the Near East and Africa for home defense.

Australia and New Zealand would find in the capture of
Singapore a confirmation of their concern at the losses sus-

tained by Anzac troops in Libya, Crete and Greece. Similarly pro-Japanese sentiment among the native populations
of Burma and the Philippines would be strengthened.

From an economic standpoint the United States would
have lost the sources of 60 per cent of its tin and 85 per cent
of its rubber-also significant amounts of cinchona bark (for
quinine), manganese, and palm oil. Britain would similarly
be deprived of these strategic materials. China, Australia,

and India would find their export trade in raw materials
seriously curtailed, and vital imports of motorized equipment,

machine tools, etc., threatened. The 60 million barrels of
petroleum annually produced in the Indies would double
Japan's oil stocks, and the 2.5 million tons of iron ore mined
there annually would prove a magnificent war asset.

11

GOVERNMENT OFFICE 1949

U

PLY

ROUTES

TO

THE

RUSSIA N

FRONT

S

L

summary

SECRET

or

ORRANI KORALI
Eleter 1941/1948

Page

I.

THIS HOME FRONT AND THE RUSSIAN WAR
1

(1) Late September
...
The Mounting Hopes of October
(iii) Personudion of the Jone
(11)

1

V

X

(1v Winter Mirale

xv

(v) November Anniversaries

XX

(vi) Christmas

300

(v11) Communications

socit

(viii) Intertainment
(1x)

II.

xx11

and

The Nature of the Change

x

THE RATE OVER GREANT

III.

THE

IV.

xxcl.x

RELATION IN ORDANI RETAVAL AND PERSECUTION

xxxxi

...

x

...

x

FOREITO

v.

(1) A comparison
(11) The Sudas Medical Mission to the

M
ALL

Russian Front

Morale of the Troops
Morals in the Reigh

(111)
(1v)

xii

( Food and Clothes

xivi

styll

(vi) Year in Germany
(vii) Apprehension abroad

Avill
Aix

CONCLISION

DI
II.
I.

1 & 11.

STREAS OF TOPHIS

...

GERMAN FATTE DIRERS

The Program of the National
Reich Church of Germany

II. A National Socialist Catechism

1.

223.

III. The Spiritual and Moral Bases
of the New Burdpe

v.

1 to vi.

SPORT
-

or

GERMAN

MORALE

wister 1941/1942.

E.

THE HOME FRONT AND THE MUSSIAN WAK.

(1)

Late September,

German merale which soons to have reached its lowest ebb during
the last weeks of August and the beginning of September began to show

- approaiable stiffening as the autum progressed. Although the
mgaltude of the tell of life in Russia was coming to be increasingly

realised by people at home, recognition of the hasards and grimese
of this m in the Bast soons to have brought with it a growing
fortitude.

"only now are w beginning to feel what war really means) in
Russia - are losing more mon than in any of the previous canpaigna"(1)
"Even if many de not return, the Fatherland oannot exist with-

out this saorifice, and - must therefore bear it" (2)

"Do you understand? It is deadly earnest here now. Times
have changed. History is in the making here, and suddenly the

individual is of no account" (3)

Moon while, anxiety remained tense, and octoorn at the ever
fading prospects of early peace showed few signs of diminishing
until the Pahrer's speech of Ostober 3rd. and the announcement of

vistory - the Sea of ABOV one week later. But if suspense was

the kuynote of letters written about the and of September, it was
accompenied for the most part by bitter reflections against the inhealty of the Russian soldiers, the complicity of America and anger
at this fresh delay in the settling of scares with England.

Opinion is so conflicting in letters written at this time,

there is so often an intermingling of aoute depression and arroganoe

within the space of the same letter, that it is indeed difficult to
Resert which note prevailed. On the whole, however, one gains
impression of a gradual hardening towards the beginning of
bober - certainly there is less sheer despair - unless of course
la is to be attributed to R tightening up of German consorship.
astant praise is expressed throughout for the heroism of the German
v.
The following comments are representative of letters written
ing the period immediately preceding Hitler's speech of October 3rd.

"The Eastern Campaign is terrible. It is certainly the

at yet. The Russians de not know what honorable marfare is.
by are the biggest band of murderers that exist. Thousands of our

- soldiers are being brutally slaughtered, It is simply in-

pribable. If you oan still 800 the German newtreels please de
Many of our friends have already fallen. It Gakes one so
perately sad. De you still say America is not mixing herself

0

G.M., Hamburg to T.B. Puerto Cabello, Venesuela, 30th Sept 1941.
A.,Zossen to F.A., New York,13th.Sept.1941.
E.K., Baden to J.H.S., Los Angeles, 24th,Sept,1941.

11.

in this wart

Indirectly she has been doing so for a long time,

if they want to break us they'11 have no luck. This is a

Nation of our Fatherland and 10 shall fight to the last man(4)
"You write that you believe - have no idea of the sacrifices
the East is costing us". writes a German from Hanburg his

her in Philadelphia, "Unfortunately I must all you that to w
only too well. Through the radio - hear of the frightful

les and listen to descriptions of the Eastern front - often one
not listen, it's too gruesome, and our soldiers when they come
are ordered to keep their mouths shut. One simply can't
usp what they have been able to accomplish - they have suffered so

wribly and cruelly. T hey say it is like a living Hell on the

sian front, every foot of ground is fieroely contested and our
Miars fight resolutely 1 1 kc lions against those brutes. In
einem seeing the weekly news reel from the front one almost

good out of mind from shoer horrer. often I have to shut my

eyes. If everyone could only 800 the awful misery and the hor des
of these soldiers who don't know why they're fighting, driven and
one
shipped forward by their commissaral But England will
day get
her reward - That is the wish of all of us - then only oan there
be posse" (8)

"If only the war were over. I AM firmly envinoed that

Bitler will lead us to victory.. often sit near the radio full

of ensited expectation and almost in tears in order to hear the
special bulletins. But how many must give up their lives for
Germany. Juliana's eldest son has fallen, he was just going to
be twenty" (6)

"There are occasional references to hardships on the home

front, to the hears spent in food quoues and nights in air-raid
shelters, but the general view often reiterated is that "all this
is nothing when me thinks of the afferings of our brave soldiers'
Confidence in the Fuhrer and in vistory are almost inevitably linked
together and may writers seek to envince their friends abroad of
solid unity of the German people, of the excellence of organinto and distribution, and of the equality and omtradeship of
rich ad poor. "The German nation is wolded solidly together now
that the former class distinctions exist no longer and very German
Imount that the Pubror only wanted to live in peace" (7)
In letters written about this time may people show a
strange steleism in face of the secrifiees which they realine must
be theirs.

time call for scerifiees, and these - will
Cadly make if only the droad spoetro of Bolahovism can be laid for
(a)

P are choose by dostiny and must hold out no matter how

at the individual suffering" (9)

"If only peace would soon come and then the secrifices
11 not have been in vain® (10)

Over 10% of all letters written at this time brought new
already name letters tell of three and four deaths

- family alone. Reactions towards these losses naturally

Lod greatly, from hereism to complete abandonment, but the latter
o comparatively few.

On receiving nows of the death of his son, one writer says
fought and died as only a German soldier can. This heavy

L.M., Leipsig to I.B. Intertom, Wisconsin, U.S.A.
A.M., Munhain, to A.W. Philadelphia, 10th.Sept. 1941.
J.V., Bmburg to I.S., Sao Paule, Brasil 18th,Sept,1941

y

)

)

P.D., Munahais to K.S. Lee Angeles 29th,Sept,1941.
L.K. Buraborg to A.K.S., You York 22nd.Sept. 1941.

K.S., Elberfold to R.B. Detroit, 10th.sept. 1941.

Ass Lossen to F.A., New York 18th.sept. 1941.

111.

Life must be paid so that Dermany may ontinue to live. Wo are
that he
with complete
freedom
of anlisted
Greater Germany"
(11) innor convietion in the struggle

After telling of the death of his seeend san, mother Germa
writes: "IV is for us an obvious duty to hold fast to our
whatever seerifices my be demended of us - even the heaviest.

111/0
endure
whatever
and death"
(12) comes in all eiroustances for 16 is a matter
"If despair"
one did not
could
(13)In on that 10 was all so absolutely moosary
* died in hospital of the dreadful wounds he outained at
A seorifice
the maihilation of Belshevism assurodly not made
in vain" towards
(14)
There soona to be more evidence of despondence and war

mariness in letters telling of casualties manget friends outside
the
immodiate family eirole than in t hose about the death of a close
relation.
After numerating eighb casualties amonget people known to
her distor in New Orleans, a German WOMAN writes from Knosel "what

SOFTON and anxiety mothers here feel for the sons. There is a never
coasing
home (15)ory to God to end the war quickly and to send our loved ones
"Happy are the dead who no longer hear and 800 anything of
this misery. One could write mach, DO much . (16)
But the following ourious passage from a German NORAN attach-

od to the Consulat in hanghai to her brother in Borlin, is interest.
ing in so far as it is unique "I - so distracted, so broken, that

life no longer has any purpose. why have I teiled and striven for

years for my Heins - only that he should in the and become oannon-

foddert How om they send children of 19 into battles How - one

have faith in a MAD who has always said that the youth should be

preserved for the good of the Fatherland. No-one can help - this
blow has shattered no. How often I think of what Heins said when
he WIS only thirteen years old and I was taking him for his misio

lesson.
What's the use, Mutti, you'll ... I'll only be used for
cannon fodder" (17)
But
prodominated.

in letters from Germany itself, courage undoubtedly
The lowest morale was encountered monget those

anxiously awaiting news from the frest more often women -

whom
the horror and atrocity stories of German propaganda had worked
too
well.

The following is a typical example:

"we have already had two years of mar, and for how much

longert The personally haven't much to put up with at home, spart
from the anxiety about our dear sons at the front. Before wars
word different and could be endured - but nowt If only we had
heart adversaries, but the se boasts - this soun of humanity
in
Woo betide if a German wounded fall inth their hands. Here
there are already enough mon lying with their eyes
-

PUT, and their noses and ears out off. If

pl
not

al
a

at

0

you

saw

and

then you would forget how to laugh again. It is so with

the old Dorothea exists no longer. It is only when after
of witing and gets another letter to say that he is still
in spite of all he has endured - and I see that he still has
of humour - that I can be glad again. If only it would
to an and!" (18).

.M. Hildeshaim to O.N.D., Alameda, California 23rd. Sept.1941.

... Munich to G.F. Flushing, N.Y.)
... Entingen, Bavaria to J.G., New York 28th.Sept. 1941
L., Leipsis to E.V. Richmond, Virginia 2nd.Oct. 1941.
... Enssel to T.H. New Orleans, 17th.Sept. 1941.

.L., Ensburg to W.H., New York 18th.Sept. 1941.
B.K., Shanghai to B.K. Berlin, 8th. Sept. 1941.
(1) D.T., Goerlits, Silesia to M.L., N.Y. 16th.Sept. 1941.
(I

that

that a dear one was there where these outrages are taking

iv

t

Am interesting feature of September mils WILD the nature of
everted by the now police regulation forbidding Jews over six
of ago to appear in public without wearing the Star of David

the word JUDE written across it on the top left-hand side of
outer parments. This monsure, first announced in the press
tember 13th, and officially portrayed as just retribution for
wils of Jewish influence in RUSSIA, found unusually little

tion in letters written at the time.

Whereas a number of reports from Jours and Jewish organisations
and SWITLERLAND tell of frequent instances where the
tion of the German people has been one of sympathy and kindness,

the following isolated comment somes from the Reish itself to
the of marked approvals-

way

"After 19th September all Jears living in GERMANY must

war the Star of Davids this is of course very bitter for
them, for up to now they could always conseal themselves in
a crowd of German Aryans. But it was the German soldiers
- the Eastern front who demanded it, after they had soon
and learnt what these Jewish devils have done to the poor
defenceless Ukrainians and others." (19)

In the min there were surprisingly for references to the
measures and in those letters which did mention them it was
now generally to ask their friends in the UNITED STATES whether repricals
had been instituted therei-

"Last week Father WILD in Frankfurt. There were still
let of Jears there. They must all wear a yellow star on the
left side of their coats. Now we have been told that in return
the Germana in the U.S.A. must wear a 'D'. Is that truef" (20)

a

Or, as others have iti- "Is it true that over there the

Germans have to wear a Castika on their backst" (21)

Another tendency which makes itself apparent towards the and
of September is that people are Just beginning to write of the
wished-for New Order in Europe. This is doubtless largely to be
attributed to the press propaganda campaign on this subject occasioned
by the anniversary of the signing of the Three Power Past on become Sept.27th.

Mithorto thought on the subject of the Now Order has almost
compieuous for its absence. Comment is vague and seldon well

considered, nor is the idea often elaborated, but it soons as if
poole were beginning to look more to the future and there are a
number of references to the enormously enlarged field of opportunity
which will be open to German industry after the mar.

At the - time the longing for peace is as unabated as ever,
fear is not absent that the war my last a long time yets"Up to the beginning of August I had firmly believed
that the war would be OTOT by Imas at the latest," says a writer
Borlin, "but now I begin to feel somewhat doubtful. For United although
it can possibly snatch the vistory from GERMANY and a

begins already to take shape, it is impossible to foresoo when

11 all be over. (22)

(19)
(20)
(21)
(az)

G.S. Hanover to I.S.: N.Y., 14th Sept.1941

..,Ob Roebach to L.D., Chicago,

M.M., Brenon to H., N.Y., 30th Jan.1941

A.F., Berlin to A.P., N.Y., 26th Sept.1941

(11) THE MOUNTING HCP. S OF OCTOBER

After a silence of five months, it TLAP'S speech the official

ing of the Winter Relief campaign on October 3rd infused a wave
optimism and renewed enthusias into the hearts of the Cerman peoples

"I had to stop to listen to the Fuhrer. What a pity you

't' hear his speech. I AR always full of enthusiasm whenever I
him speak for there is no-one like Adolf ITLER. Let us hope
we my keep him many a long day, for he will certainly do his
to make his people happy.. Perhaps you will not understand
when I way I love our Führer with all my heart and will certainly
up my two boys to be true Germans." (23)

writes

On the following day a German recently repatraited from AMERICA

"Yesterday the fihrer spoke for the opening of the Winterhilfe

I hope you were able to get his speech in AMERICA. The Russians are
practically done for. The achievements of our non have been superhuman

and we have an extra special surprise up our slooves for the British.
Everybody here is firmly united behind the Fihrer. When he speaks it
warms the heart, for he always keeps is word." (24)
Hitler worship indeed soons to have reached its peak in the
days following October 3rd. Typical of its more advanced stages are

the following two extracts from letters written on October 5th

"I always feel that he 06.5 be no ordinary m.n, but one chosen
of God - hence my firm belief that we alone oan be victorious. When
I think of the day that an attempt was made on the Flhher's life and
he protected by God BC that not a hair of his head was harmed, I
always may that God had more work for him to do yet on earth so he was
not allowed to leave. Even though his ideas would have continued to
live, a leader such as w have found in him TO would have no longer. (25)
"His spooch again expressed everything which should be said to

the whole world. It certainly seans more than all the Atlantic Charters
and Mesoon Conferences put together. Through the Flhher, with God's
help, Europe my now realise the danger of Bolahovism. This war is a
ma for humanity directed by higher Power, and this Power has chosen
his Witness and blessed him with all prosperity. Otherwise how could
it be possible that everything that our Puhrer has done in the last
two years could have led to such enormous successes? This hard war
will be fought out that our Puhrer my bring peace to the German
people and all the nations of Kurope.. Such mon only arise when they
us-set by God." (26)
a

To a member of people, although they soon to have been in

minority, HITLER'S words wore of little avail in dispelling
seion and anxiety about the war. A Bavarian writes on Oet.8th:
"The World War WILE only child's play compared to the present

titer and the poor wretches who have to take part in it are
day in Hell though they are still alive.. Why is GERMANY
and to such misery and to such K low standard of living. What
w got here now but potatoes - and not everyone has enough of
..... I get nearly distracted when I think of the poor innocent
a. If it goos on much longer I shall lose my reason - and now
is near. A soldier wrote home the other day that Christ had
suffered much, but he had not taken part in the war in RUNSIAS" (27)
but the above is exceptional and while where were still a few
continued to bowail their lot, the high Command communique of Oct.10th
moing victory on the Sea of ASOV and encirclement in the Central
created a now high level in German morale.

(23) L.K., Munich to M.L., N.Y. 3rd Oct.1941
(24) E.M., Luxhaven to O.L., N.Y., 4th Oet.1941
(25) O.F.. Bremen to B.S., Salt Lake City, 5th Oct.1941
(26) B.S., Netgingen, Wurttemburg to S.B., N.Y., 5th Oct.1941
(27) K., Waldfischbach,Palatinate,Bavaria to F.MoC., Brooklyn, 8th Oct.19
1

HITLER'S Order of the Day to his troops of ten days

ior, the publication of which had been skilfully delayed

order to coinoide with the sensational announcement of the

Bery he had predicted, WILD fully expirited in the press. In his
or of the Day on October 1st, HITLER had said that all

now complete "for the last mighty blow which shall shatter preparations this

greary before the onset of winter... Today is the beginning of

last great decisive battle of the year. Headlines in the

of October
Print

10th read "Campaign in the East decided" - "The whole press
shattered" "Germany's Victory in the East - Defeat of England". Soviet

The fillip to public opinion was naturally considerable people
wrote as t ough they believed the war in the East was virtually over,
although it WILB realised that the fighting WILB not yet at an end.
Hopes of peace - "perhaps earlier than we had expected", are frequently
expressed
save RUSSIA. and many people seem confident that no help in the world can
"The successes in RUSSIA are ao prodigious that one can only

hope that sensible people will sue for peace. But where are there

sensible people among our enemies! The morale of the German people
which
strong
the beginning
today is even higher. Everyone is
waitingWAS
for the
nextinmove.
(28)

"In the last for days there have been creat victories on the
Russian front. The enemy in the East will be anashed to pieces. I
oan
assure you
correspond
withthat
the the High Command communiques sorupulously

truth. The knowledge that the final and unlimited
victory
in
ours
that
is the incentive that spurs us on to still
greater endeavour." (29)
A schoolmaster writes from DRESDEN "Don't you worry about
us - Just now the greatest and perhaps the final decisive battle is
being fought against RUSSIA, for RUSSIA is done for and any help,
no matter whenoe it comes, is now too late. Perhaps peace is even
nearer than we imagine." (30)

"You ask 10 the war will soon be over. We don't know that,
but what we do know is tha: we shall be the conquerors - that is

quite certain. Both ENGLAND and AMERICA will live to see the
unbelievable
come true. RUSSIA can certainly not hold out much
longer." (31)

In a report on the war situation from BERLIN, written on
October 15th, the Mexioan Charge d'Affaires, after first doubting the
truth of OKEMANY', claims to have broken the Russian armies, states:

"Government circles in this Capital are filled with pride

over what they already regard as the great victory on the Eastern

front. A high official in the Foreign Office told no: 'there is no
power or coalition of powers in the world capable of destroying

GERMANY, her conquests are final and form the basis of the New Order
whigh GERMANY will establish on this Continent." I pointed out to
him that the war potential of the UNITED STATES is very great and
taken into account, but he replied that the U.S. would never

into the war and they are simply putting up A big bluff of
theirt and roarnament which they will not have time to carry out

or complish. New Order is a fact, he added, especially now

an the defeat of RUSSIA."
to
of

WO letters describing the roactions of the people of BERLIN
October victorie are interesting#the light of foreign accounts

JEAN apathy:-

8) O.K., Kassel to E.H., N.Y., 14th Oct.1941
(9) N.K., Regenaburg, to A.K., Stockertown, Pa., 11th Oct.1941
30) P.A., Dreaden to D.A., N.Y., 14th Oct.1941

(2) I.N., Stuttgart to F.H., Philadelphia, Pa., 14th Oct.1941

vii

"Throughout GERMANY there is an intense earnestness

-ot

one of our victories, however great, has been celebrated. But at
pane time no-one is despondent. No now stand before the third winter the

or the war. The Berliner is certainly not enthusiastic aboit the

long blackout nights and the air-rain warnings. And not everyone has
the warm winter alothing he would have liked. The Hausfrau will often
get cold feet waiting in the food queues... Anyway a war winter is no
fun, and the very thought of it is apt to make one d'scontented.
The Fihrer spoke to us recently - he throw no dust in our eyes,
promised us no better times, but called for further sacrifices, to
harden ourselves still more... He drove away our discontent, spoke
of the earnestness and the greatness of the times and tolo us that
19 is not our well-being that matters but that o the youth - that

the life of GERMANY hangs in the balance. HITLER gave back to us

our self-control. Everyone felt his duty to history...' (32)

In the second letter B Berlin University Professor writen
"You would not find any wild enthusiasm, or gloating over

military successes unparallelled in history. The pride of this
people is manifeating itself in their readiness to sacrifice many
comforts for the benefit of the victima of the gigantic campaigns.
You would find the firm determination to see this ghastly business
through
and, you would find an unlimited confidence in
the
man to
at successful
the helm." (33)
A Swiss dootor writing A few days later, however, says of
Germany that "The general outlook since last year is apathetic, this
is now perhaps more deeply rooted. In intellectual circles those
who speak languages and listen to foreign broadcasts and who sometimes

go
abroad,peace.
no longer
negotiated
(34) speak of victory. Their only hope lies in a

German censorship and fear are, of course, factors which must
be borne in mind throughout, nevertheless there is little to suggest
the accuracy of such a statement in German letters written about the
end of October. On the contrary, doubtless stimulated by The Vitriol
of Hitler's words and the costasion of the press, there seems to be a
wider range of ideas current about the purpose of the war and the
future than for A long time past.

Confidence that the vast new territories conquered in the East
will now assure Germany's supply situation no matter how long the war
should last, indignation at the alliance of Great Britain and America
with the Soviets, and belief in Germany's mission in Europe, all find

varied expression in the letters of this time.

"Up to the present 10% of rye had to be mixed with flour; now
that regulation has been suspended. with the conquest of the vital
territories in the Ukraine our food supply is assured for all time, and
not only ours, but also that of Europe generally. The end of the Soviet
Union
is approaching,
A fortnight
ago the Fuhrer declared 'The adversary
prostrate
and will rise
no more.'
(35)

Speculating on the obanona that the Russian army may yet spring
Arprise the Mexican Charge d'Affaires writes in the report quoted
TO "Meanwhile Germany is losing no time in preparing to combat
economic blookade. The occupation troops in conquered Russian

Atory are all making great efforts to restore the districts laid

by the war or destroyed by the retreating oviet troops. Houses,

W.G., Sohwargendorf to M.G., Wilwaukee, 10th Oat. 1941).

F.K., Berlin to H.M.A., Washington, 17th Oct. 1941).
L.P., Zurich to irrofessor O.J., Ohio, 21st Oct. 1941)
A.H. Augeburg to J.P.H., Hamsond, Ind., U.S.A. 16th Oet. 1941.

3

viii

Ages, railways, roads, factories are all in the process of repair
materials brought from Germany. Peate of engineering such as
reconstruction of an iron bridge 300 metroo long have been comof in ten days by the workmen of the TODT organisation.
work accomplished by Germany in Russia up to date The is
ystruction
marvellous."

#1

Three letters from Frankfurt, Hannover and Berlin, from a
Peasor
of Asthropology
a Storm
trooper, and a circus owner, provide
farent aspects
of the German
mission.

"The war has now lasted for two years, writes the anthropologist,
Manuary is fighting as the champion of Christianity against bloodthirsty
eat Bolahovism which during the last 23 years of its fearful reign
Ins wiped out the Christian erood in Seviet Russia and elaughtered the
storg
or east the priests
and
monks
into
gruesome concentration campa
- the Solovetsky
Islands
and
in the
Aretic.
Germany's cause is a
Just and eased one and she will fight on to victory for the deliverance
of Burope and makind. The truth of this fast will one day dawn in
the
minds
Christians
all over the world, including those of Great
Britain
andof
America."
(36)
The Storm trooper writes of the German ascendancy and says,
"No have absolutely no doubt whatever that we shall overoom all the

difficulties in this tromendous battle of strength, I have had a
medial opportunity to Judge and above all to help in the work of

vistory. It is, as the Fuhrer himself has said, a hard fight, but
shall w lose courage because of that? Never No, fate will not
aller 100 to g back to the mya of the Middle Ages Today
Morgon die plase Welt's I (37)

the words

apply to us more than over before Houte gehort use Deutschland, and

Carl Hagonbook, proprietor of the famous airous, writes to his
non in America of the atmosphere of enthusiam in Germany for the
schiovements of the voldiers and mays: "The whole world should be grate-

full to our Puhrer for his foresight in recognising the peril of Jolahevian
and for being able to oombat 10 muccasfully. Thank God. You cannot
imagine the horrors which our soldiers have to relate of the 'Workers'
All those who were in sympathy with Bolshevism have been

cured - and for all, without exception. Even our greatest enery,

Ingland, eight to be thankful". (se)

Many writers are occupied with variations of the BAJOO thomaj.

"God grant that the whole world my realise that Germany is
fighting for Right and Preedom." (30)
00

(
I

"The mar in the East is drawing to a close. Oh, why is everyone
agonietie to our beloved Germany This ensity w have certainly
served. (40)
"All their (the Russions') faith in Bolehovism must be forced
them then they will soon learn to appreciate the joya of Kultur."
Jow Reeenfold (the President) and W.C. otherwise Weinstein

TE (the Prime Minister) come in for their fair share of hard words
IN

any is ours today and tomorrow the whole of the World).

.P., Frankfurt a.M. to E.M.K., Chicago, 5th Oct. 1941.
al., hamover to W.W., Aasland, Ky., U.S.A., 4th Oet. 1941.
J.H., Hamburg to B.H., Sarasota, U.S.A. 8th Oct. 1941.
.... Boohum to G.M., Plint, Michigan, 3rd. Ost. 1941.
.... Leipsig to H.S., Long Island, N.Y., 20th Oct. 1941.
... Pforsheim to N.A., N.Y., 10th Oct. 1941.

ix

regrot is expressed at the breathing space which the Russian war

Boods afford the English, the 'selfish instigators of this terrible

daped.'

"This frightful wart It weighs us down like a mountain and

most ardent wish is for the bells of peace to dound. One can't
ino anything more wonderful than peace again in Europe. And now our
your brave soldiers have to endure unspeakable horrors in their struggle
aminot the Russians - those beasts in human form Worst of all, the
Gutwomen, the seum of humanity. what one hears makes one's Hair stand

on-and, and the English are on the side of these hellish brutes and your

President writes to his dear friend Stalin.' What do the Americans
my to this humiliation? I oannet believe that decent people oan
agree with it. No have ten nephews at the front, all well at present".

(42)

"I do not think our soldiers will ever forgive the faot that
there are still countries today that help the Soviets, if even only
morally. And their talk of Freedom and the Rights of Man and Prayertt" (43)
Anxiety for the winter was temporily abated in October by the
announcements that provision had been made in advance and the hope that

"they will finish off Russia before the winter begins". "The fact

that all preparations have been made and that the acming winter will
afford no obstaoles reassures us. Then the most fearful rookoning

with England will follow, more terrible than anything in the history
of the world. And rightly too, for nover has a government gambled with
the lives of millions in so despicable a fashion". (44)
A different view is put forward by a retired German Foreign

office official in a letter written in English to his wife in New York.
"The utter destruction of Belahevism, he writes, "is a European

necessity. It ml Godsend, indeed, that in the midst of this English

war Hitler had the foresight to realise the Bolshevist danger and
promptly acted ordingly. But there is no such necessity with England
if she is willing to come to terms, as sooner or later she will be obliged
to anyhow. As for the U.S. she is welcome to the inheritance of
British possessions in the Western Hemisphere but is she so deals anxious
to inherit the accumulated antagonism which London has won in practically
every capital in Europe during the days of British predominance?1
There will be brand new Europe the outlines and features of which are
already clearly visible and in which the U.S. oan only hope to recapture
her valuable lost markets if she sorapa the insane Rooseveltian poliey
of interference and provocation as soon as possible and realises it to
be the most unprofitable enterprise the American taxpayer has ever been
called upon to finance..
(45)
Towards the and of the month a more sober tone makes itself

felt in German morale. No outcome of the war is possible, it is
frequently repeated, but A German victory. "Even if it should last ten
years or more we will prevail." But anxiety over the Russian winter
and the question of American intervention is clearly growing.
"God grant that the final victory will soon be ours and that
our ar ones will not have to pass the hard winter in Russia in the
(46)
and and ice with death before their eyes."
Rw

"Yesterday I had a letter from Heinz. They have got far into

near Moscow. Now that the cold weather has begun the soldiers
are ffering a great deal, the German soldiers are not accustomed to

th gold of ?ussia' (47)

(48

e

Unsigned, Ulm to Kansas City, 15th Oct. 1941.

W.L., Hohanwestedt, Holstein to A.L., Brooklyn, N.Y. 2 nd. Oct. 1941.
C
K.P. Stuttgart to E.P., N.Y., 5th Oct. 1941.
45
A.F.,
Berlin to A.P., N.Y., 2nd Oct. 1941.
C
H.G., Schomingen/Main to Ashey Pittsburgh, Pa., U.S.A. 30th Oet. 1941.
(47) T.M., Hunster to C., Saint Louis, Mo.. U.S.A., 25th Oct. 1941.

31

"A united National Socialist Germany will never allow herI to be defrauded of her well deserved victory for the second
as. Today the home front stands as grim and determined as the

at the front." (48)

Sometimes a more wistful tone prevails. "Please God you

't get dragged into our terrible measy if you could see everydag you would all say never var." (49)
"Wartime passes - if only everything is not still worse
Pterwards If we could only be together again, how we would

11k - and eat, eat to our hearts desire." (50)

Another letter marked by the German Censor to be returned

to sender, but which WAS forwarded in error says: "If only the
WLP
would soon end, such wholesale destruction, and yet nothing can
be dono.
How oan such things GODE to pass between civilised
nations.

I hope America does not join in all this warring

everywhere hatred spreads and the people must blood because things

are not left in peace to take their natural course. Has one
nation any greater or lesser right to its place in the sun in this

world than another!" (51)

But for the main, the letters written during the last days
of October are beginning to revert back to the familiar strain of
willing sacrifice' of those at home being worthy of the soldiers

at the front, and of holding on till final victory is won, a

tendenoy which becomes increasingly marked throughout November in

the last weeks of which it is characterised by a grim and unhappy

spirit of tenacity and resolution.

Santiago Lopes, Celombian Charge d'Affaires in derlin, aims

up the position at the end of October as follows. "As regards the
internal situation, we are therefore passing through a phase of

tranquility which is very natural following series of military

successor. Nevertheless one perceives a certain disquiet when it
is stated that the war with Russia my not end with the capture of
Mossow and that moreover the war with England will be pursued with

even greater intensity. Today more than at any other time one
pereeives or senses the feeling that with the slightest reverse or
with too long a delay, events of the greatest importance might take
place within the country. We nevertheless BOOK to be still far
(52)
from arriving at such a point."
But the writer is a pronounced Germanophobe and his reports,
although comparatively objective, must be taken with reserve.

Other features of the month are intermittent grumbles at
elothes and food shortage, the effects of British air-raids (both

of which subjects are referred to in later section) and

recurrent praise for the excellence of National Socialist organisation

and Social Service and Winter Relief. or the latter one writer

"You have no idea what fervent patriotism exists among the
people, especially among the youth, it was proved again by
second street collection for the Winterhilfe on the 25th October.
Aised R.M. 131,000,000 40% more than in 1940 Germany's front
homeland are inseparably bound together and each person gives

Ingly out of love for our Fuhrer." (53)

Only one letter examined made any reference to Goebbels'

al article to Berliners published on the anniversary of his
Latment as Cauleiter of Berlin. In this rather tortuous account,
Sen in English, the writer saya "The Hana Fritsche's report
orday, in somewhat of a muddle because it gets no reliable
nation and sakes up nonsense which, as Dr. Goebbels described in
N.F., Lineberg, Hamborn a/Rh., 23rd Oet. 1941.
P.D., Berlin to J.L.R., Washington, 30th Oet. 1941.
W.B., Leipsig to M.S., Lansing, Mich, U.S.A. 26th Oet. 1941.
H.P., Veterson, Holstein to Bellport, Long Island, 27th Oct. 1941.

S.L. to Ministry for Foreign Affairs Bogota, 30th Oct. 1941.
K.R., Furth, Bavaria to J.M., N.Y., 28th Oct. 1941.

-xi-

As article two days ago, is so idiotic that it stinks through and
through. They still imagine in their foolish arrogance that they
in be asked their opinion in the new organisation of Europe which
already in progress..... The English people in their narrowIndodness, believe everything their bigwiga tell them and take in
a

dishonourable shan Godliness which goes with it in a way which
stoot be described. Those men really so brand the whole of
ristendom with infany that they will have to wake themselves up
Christiandom itself is to endure. Unfortunately there are all
rts of questions over which our clergy too must come to see

early. It is high time.

(84)

There was only one comment on the German October shooting

of French hostages. "Your press will have been roused to fury because
have shot a number of Frenchmen as a reprisal for several murders.
We were and are sorry that we had to do that, because w respect the

French, in spite of all the stupidity inharent in their make up.
N is this mental lasiness of the French which has permitted the
Jours and Commists to become masters... But we cannot let ourselves be killed off one after the other and submhesively swif
death. So we are bound to take monsures of self defence.
Ico how to differentiate betwoon the guilty and the innocent

We

aning the French. They were not shot indiseriminately. I wil 1

make exouses for nothings wo claim our rights; the guilt lies with
the world for provoking us." (55)
(ass) Persocution of the Jews.
The revival of Jewish persecution haralded by the branding
of all Jows with the Star of David reached its height during the

month of October with large soale dispossessions and mass deportation

to Poland and White Russia. A considerable volume of Jewish all
has passed through the Bermada consorship. Pased with the loss of

their homes, the moortainty of the future and winter in the last
or the prospoot of foreed labour in the German w machine, many
Jone, often husbands and vivoe together, have committed suiside.

Germany, it was first preclaimed, was to be 'Judenrein',
clear of Jews, by the and of the year. Later the date soons to
have been postposed to April, and latterly to the and of the first

hilf of 1948. The position of numerous Jours who though not facing
Immediate deportation to Poland, have been turned out of their homes
make room for bonbod out Aryana, and examed into es-convents,

supp or 'homes' is none the more enviable. The jority of

formation available comes from Jowish SOLTOO abroad and is rather

tradistory a great deal can however be Cleaned, from the letters
Jour still within the Reish.
"To were all foreed to leave our homes wi thout distinction,
are housed, 9 people in one room, in the Ohestresse Almahouse.
"Here everyone over TO has to go to a home in order to leave

(56)

flats free for other people. Such is the housing shortage'. (57)
And from Vienna, A Jeer writes: "Wity poor friend is very
vable, owing to the regulations she has had to give up her room
the Pension and now she is living with 15 woman on straw seeks
a school. She doesn't know if or when she will be allowed to
(88)
are and is growing weaker every day."
"He must leave Cologne in four days to be sent to Litmannstadt
eda).

Here there are four families in the house, all must leave.

can't imgine what it all means." (59)

R.E.B., Hanburg to J.N.B., Valencia, Venezuela, 80th Oct. 1941.
H.D., Bad, Hamburg to Philadelphia, 26th Oet. 1941.
03 M.B., Hannover to E.B., N.Y., 29th Sept. 1941.
BY) E.W., Frankfurt a.M. to B.L., N.Y., 2nd Oct. 1941.
N.K., Vienna to M.N., N.Y., 1st Oct. 1941.
30)
S.M., Cologne to R.L., N.Y., 5th Oet. 1941.
3

=(xii)Jews in Berlin," writes A German Jow recently arrived in
America, are not allowed to buy fish, poultry, game, fruit, onions,
sweets, poes, beans and many other things They cannot
earn
because from 14 to 60 they must perform the heaviest and hardest
labour for a minimum wage, and if they have any private means and
savings account, then their misorable wages are not allowed to be

paid out
are entered
into(60)
the account BO that the poor devile
don't
getbut
a penny
extra."

Other letters from abroad tell of Jewish requests for an
overcoat
or clothes
a warmcards'.
pullover as 'up to the present they have not been
issued any
Grandpapa writes that he would rather have food or clothes
than
anything
get it. (61) else, he says that today he would eat perk if he could
From the special distributions of chocolate and marsipan
throughout Germany of October 3rd and November 29th, 125 grams in

each instance, the Jews were of course excluded. A report from
Switzerland tells of Jews being prehibited to travel by tram as
from November 1st and a let or from New York saya "My mother-inlaw, who is 78 years old and 111, had her meat oard confiscated for
four wooks because she received a pair of curtains from Lisbon in

August. (sio) That is worse than bestiall" Such reports are
numerous
and seeing
that they frequently contradiot each other,
their reliability
is doubtful.
Francisco Navarro, Mexican Charge d'Affaires in Berlin,
writing on October 15th, describes the situation as follows:-

"The campaign against the Jewish population, not only in
Germany, but throughout the occupied territories, grows more
bitter every day. After branding the Jews as if they were dangerous
beasts, the authorities have informed them that they must be ready
to loave their homes the moment they are ordered to do BO by the
police. They will not be allowed to Cake with them anything but the

clothes they are wearing. Their furniture, valuables, and all the
necessities of life must be left behind.

"It has been learned from a very reliable source that in order
to solve the problem of new lodging for all the Jews who are to be
turned out of principal German cities, the Reich lunatio asylume have
been emptied by a very simple method: all the lunation in them have
been killed. The Jews who cannot be accommodated in the ex-lunation
asylune will be herded together in ghettos or special Jewish quarters.
"The houses which the Jews are obliged to leave will be ocoupied
by the friends of Herr Himmler, and will be considered as their
property. The plunder which the German Government stands to gain
under this measure will be gigantic, for there are great number of
Jours still in Germany and many of them live in very fine houses which
they own. I may cite, as an example, the residence which the Military
Etaches to the Chilean Embasay have just rented; this is in faot
palace with A large park and A lake 1.: the grounds. This costly
A

Epsidence which must be worth over A million Marks belongs to a Jewish

who will lose it in the near future. Perhaps.one of Himmler's
listants will receive this sumptuous palaon as a reward for his
vices."

Letters from German Aryana for the most part continue to

ore the subject of Jewish persecution. One writer, however, after
pressing his astonishment at the number of Jews still in Frankfurt
revealed by the Star of David, adds 'and they wear their star with

o)

(2)

A.O., N.Y. to F.L., Sao Paulo, Brazil.
E., Montevideo to J.L., N.Y., 29th Sept. 1941.

xiii real pridel' Otherwise when reference is made to the Jews, it is

generally in the time-honoured theme "This and war that the Fuhren
would so willingly have avoided, Again and again he held out his
hand to his enemies but they were set upon war. For behind them
stand the Jews."

(62)

A Lisbon telegraphic report on the subject of German reactions
towards the branding of the Jews says that it "Exeites sympathy rather
than otherwise on part of non-Jewish population. A man patted a child
the head, pointing to its badge saying 'better times soon coming.
Catholic priest stopped Jewish family and pointing to badge said Wear
it with dignity' Together with appearance badge thousands new signs

distributed to shops saying Jews not admitted.' quite established

custom for Aryan shoppers to wait outside shop until they see Jewish

mother buying in for children, in and get for her what she needs"

(63)

The first part of the above report is confirmed by other
foreign sources, one of which relates that it has been A frequent
occurrence for people travelling in trans or buses to get up and give
up their seats to aged Jews or Jewish mothers with children; the
latter part, however, is not borne out by any other references.
Estimates of the numbers of Jews deported to the East very
greatly. A Jewish Telegraphic Agency report of 21st October from
Stookholm states "Deportation of Jews from Germany to Poland continued
this week as several thousand more Jews from Berlin and the Rhineland
were sent to Lods preparatory to being deported to the Government

General area of Poland. It is expected in Berlin that 55,000 of the
65,000 Jewish inhabitants of the oity will be deported within the next
week or so. Similar action planned for other German cities will
result in A mass expulsion of some 200,000 Jews.

A Hieem report of 15th Nov. from Lisbon states: "From a trustworthy source we have received the following information. In the
course of the last few weeks over 20,000 Jews of Greater Germany proceeding from
Berlin
Prankfurt

4,800
1,500

Cologne

2,000

Other oities 1,700
Vienna
Prague

5,000
5,000

20,000 wore-sent to Poland.

After these deportations and according to the Reichsvereinigung
statistics, there only remin in Germany 281,570 Jews distributed
as follows:
Old Reich
Austria

151,370
46,300

Protectorates 83,900
281,570

"Lods was mentioned as the destination of these people but it
would appear that they are going to be sent on from there to White

Russia (Minsk). The writer adds that not a single Jew native of

Luxemburg or other has been allowed to remain in the Principality.

Other letters from outside Germany tell of 10,000 Jews having
been deported from Berlin by 27th October, 25,000 from Hamburg by
1st December, 20,000 leaving from South Germany, and 1,000 Jews

leaving nightly from Berlin. "Those who have not yet been transported were lying on straw in the ice gold burnt down synagogues.

(62) M.H., Gera Thuringia to L.H., Philadelphia, 28th October's 1941.
(63) R.L., Lisbon to H.M. N.Y. 27th October 1941.

The decent Germans pity the Jews, the brutal ones and the out-

throats, out of which unfortunately the greater part of the

German people is composed, spit on the Jews and insult them". (64)

Deferences to prospective deportation in letters from
Reish Jews thomselves are mostly calm and brief. "On December

8th we are moving to Rign. It is very quiet here now) so many
have gone away. My husband and Hana are still working. It
WAS absually difficult for Hans to get away. The firm did not
want to Pelease him as he is so hardworking." (85)
Many foreign reports speak of the reluctance on the part

of industrialists to part with their Jewish employees. Writing
from Stockholm on November 5th a Jewish Telegraphic Agenoy

correspondent prediets that in the long run labour demands will
take procedence in Germany over anti-somitism. He relates
how leading German industrialists insisted that the authorities
should halt the evacuation because the half-trained Jalkan
workers who some to replace skilled Jowish labourers are
mable to perform the tasks assigned to them. "The defiant
attitude talcon by the industrialists resulted in Jowe who were
already in trains for deportation being taken off and sent

back to the fasteries." (66)

Inturally enough nothing oan be found to confirm this

report in letters from the Reich itself, nevertheless the rate
of evastation slowed down very considerably during November,
December and January, although in recent weeks (and of January
and beginning of February) there are again signs of renewed

activity. Certainly there is abundant evidence that Jews of
all ages as yet remining in the Reich are made to work hard.
AS the same time all end gration Westwards has been stopped,

"He

German authorities refusing to grant exit permits even to
paroons already in possession of Cuban or U.S. visas.
has to do very strenuous work in the Spindler laundry. He
has to got up at a.m. if not earlier and stand the whole

day with very insufficient food all that is not absolutely
necessary to mintain life is forbidden to Jews". (67)

"Real wrote from Berlin saying she had joined her 72
year old husband and is working in a factory there nine hours

A day, standing." (es)

A Vienna Jon writes "Hugo is working for the military

authorities in Sehweehat (1). They say he is liking it fairly

well, like all the rest." (69)

(4) S.N., Kusanacht, Zurich, to H.K., N.Y., 28th Oct. 1941.
(cs) H.I.R., Cologne, to N.S., N.Y., 22nd Nov. 1941.
00 J.T.A., Steekholm to J.T.A.. N.Y. 5th November 1941.
GY) (Unsigned, Fribourg, Switzerland to M.O., Los Angeles,
End Oct. 1941.

(ce) P.I.O., Basen to H.B., Chicago, 19th Nov. 1941.
00) M.I.H., Vienna to E.L.F., Memphis, Tennessee, 18th Nov. 1941.

of

But with the permanent threat of deportation hanging
over their heads, two recent enigrants write from Lisbon "an
epidemic of suioides of unbelievable dimensions has broken

out." (70)

"There we come from life has become a martyrdom it is quite a common occurrence for people to be bauled from

their beds in the middle of the night, and, with only a small

handbag, to be taken along to a waiting room to be sent -

where! (71)

And lastly A report from Zurich.
"The orders to the Jews to abandon their homes began

on M large soale at the end of September The time

allowed

for evacuation varies between 15 minutes and a fow hours.
with the order to leave, & form is handed to the Jews on which
they must enter their entire possessions in money, furniture,
household effects and clothes. Simultaneously they also
receive a list which presoribes the NORMAL POSSESSIONS which

a Jew my have at his disposal namely:- two suite, one
overcoat, three shirts, two Tests, three pairs of underpants,
2 pairs of pyjamas, six pairs of sooks, six handkerchiefs and
pairs of shoes. After having been transported from their
dwellings the Jews are subjected to interrogation at the

2

District Police office. In most instances they have to sign
B docusent in which they declare that they are emigrating

voluntarily; others again are given a paper to sign in which

they acknowledge themselves to be enemies of the State and

renounce, of their own free will, all rights to property,
pensions and any other sources of income
"The evacuated dwellings are sealed by the Cestapos
furniture, olothes and household goods, which the exile WILE

obliged to leave behind, are later put up for public auction

"The Jews are detained overnight in A synagogue and
conveyed next morning to suburban railway stations in closed

police lorries where trains are in readiness to transport

then Eastwards, Temporarily, the banished Jews are put on
work of National importance in Poland. What the ultimate
plans of the Government are in connection with the expulsion
of the Jews is as yet unknown." (72)

(70) P., Lisbon to L.R., Montevideo, 1st Nov. 1941.
(71) A.C., Lisbon to L.D., Portland, Oregon, 30th Oct. 1941.

(72) L., Zurich to J.L., Detroit, Mich., 30th Nov. 1941.

<

Later Merale

"There is only one consolation - that some time a solution will
and for it all. Till then the watchword is HOLD OUT." (73)
The spirit of optimism and expectancy born of the victories of
"r 10th had already begun to wane by the end of the month. with
first days of November A few rare fliekers of the earlier hopes lived on,
they BOOB seen to have been lost amid the onsetting greyness and
determination which has a omo to characterise German morale this

In different letters on a variety of different subjects:- the
hirdships of Russian winter, the bareness of the Christmas shops, the

air-raids or the searcity of warn elothing - the resolving theme is
always the same 1- Aushalten."

"Some day the war will come to an end and then everything will
be better. Courage! Re have already won through many struggles.
How it is for us to hold on in defiance of every enemy. Our soldiers
are so brave at the fronts, in the sea and in the air, why should we
at home too not be strong. (74)

"Bow for the third time wo must face a winter at war, but what
owful sufferings the soldiers have still to endure. We must stand
firm and hope that 1942 will bring victory and peace. (75)
Above all we pray to God that this dreadful war may soon end
and our soldiers return victorious to their dear homeland, otherwi se

everything will have been in rain - all this fearful bloodshed. But
w place our trust in our dear Fuhrer Adolf Hitler and the Almighty.
We trust that the Almighty will stand by our Fuhrer and give him
wisdom and understanding to direct hid cause aright." (76)
The train of thought varies from ardour and resolution to extreme
anxiety and gloom. There were those who would seek grounds for their
determined confidence and find them easily enough in the assurance of
supplies resulting from the conquest of the Ukraine, or alternately
in vaunting the invincibility of the German armies. Others derive
strength from the venting of old hates, but a rowing number now speak
of the war as . struggle for existence or extermination in which no
matter how long it may last Germany must prevail. While the above
extracts from letters of November 17th, 24th, 21st and 27th are those
which seen most typical of the reactions of the majority, those
which follow are representative of the Parer higher strains of the
same theme.

"Germany in wartine is very different from the Germany of 1938
In keeping with the seriousness of the noment the whole nation is in
a crimly determined fighting mood. They feel THE can do it and we will

do 16.' Averyone is perfectly aware that the struggle will be long
and hard. But it is quite a minor question when this war ends, the
imperbant thing is that we o omo out of it as victors, and that that
will so is now assured thanks to the recently conquered territory

ink East with its inexhaustible provision of TAN materials." (76 a)
var
Gen

Her
have

good

How we have already had over two years of war, but a different
- the last. Then England succeeded by her blookade in bringing

to the point of starvation. This time it is quite different.

Germany today conditions are such that no-one is hungry. No

Pot class bread, both rye and wheat, also oakes. The writer
to describe the excellence of German wartine organisation,

pri

entrol, double rations for heavy workers, etc.

(73

.C., Wiesbaden to A.C., Guatemala City, 17th NOT 1941.
old Out.

(74

e. Schifferstadt, Restmark to D.K., N.Y. 24th Nov. 1941.
S. Hamburg to G.C., N.Y., 21st Nov., 1941.
LB., Selm bei Fang, Kreis Ludinghausen to H.D.,N.Y., 27th Nov.1941
R.J., Berlin to W.S., Washington D.C., 9th Nov.1941.

(76

(70

y

(75

"ivery German, he continues, "is completely convinoed of final

7. even if it will not come this year. But how do - stand as

red with 1914-18 1. In only three months as large a part of
la has boon conquered as both England and Germany put together

may be quite certain that those enormous tracts of land are not
onely occupied. Where we are concerned everything is organised

to the mallest detail so that England will never succeed in her
of starring - out. Directly behind the sword comes the plough.

- prisonors of war in abundance (over 3,6000,000 Russians alone)

- these things in order. (77)

*No are determined to held on, for w are convinced that Germany
the resources at present at her command is now militarily uneonable and that the food situation will improve both at home and in
rest of Europe in the course of the eoming year through the occupation
the greaaries of the Bast, the Draine and the Crimean regions. (78)

Interesting in this connection is a letter from Syitserland, the
ter of which - sooningly impartial, and certainly no Nasi has just

from a visit to Berlin. He tells of his meeting he had with

There Inson . "ene of the three leading mon responsible for Europe's
grain supply. No receives delegates from the different countries and

hears their wishes concerning grain requirements, of course

be is anardent National Socialist. Russa told no that he had been in
Daraine. Se said the Rusians had only burnt about one third of
the harvest, okiefly the COPE growing near the main highways, further

St was still untouched. or last year's harvest stored in the

groveries with had boes captured. On the other hand the sowing of now

good will present difficulties. For one thing the land had boon a
bettlefield and for mother so many people had fled. Also the Russians
had destroyed all agricultural machinery. The German mehines are too

Light for the enormous fields with their heavy soil so that it

will be next spring before everything is got into order again. In any
0000 Phropo's prain noods are assured for the duration." (70)

Most writers BOOK to have a more articulate hate for Great Britain

the for the lited States, al though it is taken for granted by many
that somer or later 'Roosevelt will have his war.'
"John Bull will 800 what he has gained from having conjured up this

m. No - can save Mim MM. A righteous fate is on the way. (80)
THE are all envineed that the war will lead to victory. It is
that as the English BOY there could be revolution hora, for

all steal firm behind our leader." (81)

lies won't help the damned English any more, they must

Lee that themselves by now. (82)
the American Revision of the Noutrality Act did not give rise to
comment as might have been expected,perhaps because fears regard-

.3. intervention had been prevailed so long.
The war has spread, infortunately your Roceevelt does everything

to encite America into it too. I wonder how the people will take

of his latest war measures concerning the passage of American
through the war some. Mere it did not shock the nasses in any way.
America can no learer change England's future no matter how long

laste. Many letters express regret that the German cause

be so trevertied and misroprepented by American war mongers.

writer continues "It 10 only a pity that the people are so

by deceived. The wwwpapers ever there must lie blakk's whitel" (es)
K.W., Bordhom, Hamover to G.W., Indianapolis, 9th Nov .1941.
Unsigned, Friednaun to L.L. Dongan,N.Y. 19th Nov 1941.

soibly Rusha, the word is practically illegible.
P.S.P.R. Sugerborg Butserland to I.S., N.Y., Nov. 9, 1941.

M.S. Greasbarnin uber Trie BOB Oder to B.H., N.Y., Nov.1941.
B.O. Friedman Borlin, to I.R. N.Y., 21.Peb.1941.
I.T. Berlin to F.T., Costa Rion, Feb. 21, 1941.
T.K., Brenca to N.O. Brooklyn, N.Y., 10.Nov.1941.

A forner Reicha-Minister and Ober Burgomeister writes: "with
booevelt sailing into the war sone we can reckon withwar with the
fted States any day now. Good for us that all our adversaries did
Join in the war at the same time but always waited till the pre(84)
ding one had perished first."
And in . humbler hand, . German woman writes from breaden: "If

only the war were over but we have great faith in our Fuhrer and his

Man. Be will cuide everything aright. If only they would realise in
Merica that our Fuhrer only wants to do what is right. The world is
so beautiful and if only everyone could get on well to together every™
one could share in happiness. How well - are cared for. Every worker
has the right to enjoy nice things. in peace time we had the lovely
Berength through Joy' excursions. Quite cheaply we were able to get
to know our beautiful Fatherland. Now during the war everyone is

working hard, but in spite of that we ret our holidays. If only the

war would a ome to an end; because our Fuhrer will then do... much for
us. You should see him! A simple plain modest nan. He has himself
been through a lot. He only wants everyone to live in unity. Oh if
only the other nationa could understand this." (85)
But Hitler's second speech of the winter on November 8th passed
almost unmentioned. There WB.D no spate of Fuhrer worship or any

appreciable bolster to morale. Admittedly his speech given to a private
audience of the Old Guard of the Nasi party in Munich was not broadoast
or given the same sensational sicnificance by the press as its predecessor.
It gave no immediate foreoast of victory but conta ined the statement
made by Hitler for the first time affirming that Germany would never
capitulate.

Two letters comented on this declaration The first from a Jew
recently escaped to Funehal sayes "The Areh-gangster is not as strong
he sounds. His speeches were always controlled so as not to upset
the people. In his last speech be let himself go and said 'Germany
will never capitulate." He has never used this expression before
The speech was revised by the German propaganda officials and declared

as

to be a private one. In spite of that it leaked out The words cannot

be taken bank." (86)

The second from a Hanburger "Everything has turned out as the
Fuhrer said it would. His prophecies have always come true. On Nov.
8th he said Germany would never capitulate. The last division would be
German and so it will be 1 I have never heard that anyone had said wo
must capitulate. Even the most stupid and least informed of our opponents should be able to grasp the fact that it is impossible because then
everything would be finished for Germany."

Although there were few direct references to Hitler's speech, snatches
from his analysis of events find their way into quite a number of letters
written at the time References to 350 million people in Europe all working for the Reich, 'Never again another 1918 and estimates of Russian
local put at 10 million mon, "although they are not numerous are doubtless

to to attributed to his inspiration. Likewise at least part of the followin Hous passages written by a German girl from Berlims

her

..
are

(c

(84

(81

the time will GOME when we will say over the dead bodies of our
and the graves of the last war. Kameraden Ihr habt doeh gesiegt' KR

Our enemies have so far only had 'vittorious retreats'. The English
Here of that art, and their Russian confederates too.

.D. Freiburg to V.D.O. Quatemala City.
ST. Dreaden to H.T., N.Y., 25.Nov.1941
. Funchal to I.C.. N.Y., 10.Nov.1941.
.s. Hamburg to H.B. Paterson, N.J., 11.Nov.1941.
the press had published less exaggerated estimates. D.N.B. on
the same day put Russian losses at between BOYOR to eight million mm.
Comrades you were after all vioterious'

boar with pride all seerifices demanded of US in these days in belief
the triumph of our just cause. Germany tried to hinder the coming
this war with all her might, all our leaders efforts were rejected.

27 claim that we made war without; this is more lie but truth
always won in the end.

"Winter in Russia does not try our sports hardened men 60 much as

Russians. hey run around in the summer with their fura on and in
the winter sit around the store and work as little R.S possible out of
dears. The German soldier conquers oolo us he Goes every other obstacle
with And it is due to the Germans that such order reigns in Poland with
every field under cultivation as I could see when I was over there. Its
the SALD with you Americans; no American or coloured SAD comes up to
those of German origin." (88)
The foregoing examples of above average November morale find their

counterpart in the following from the other and of the scale, where
anxiety for sons and husbands at the front dominates all else; thoughts
of Christmas without them, with nothing to buy in the shops and little hope
of the longed for peace give rise to utter de jection where nothing soons
to matter or be worthwhile.
"The war brings so such trouble and worry that you can't settle to
anything If you have a member of your family at the front you can't get
the thought of it out of your head - it is with you early in the morning
and when you go to bed at night, and if you wake up during the night the
first thought that enters your head is where is he How is he? Is he

still alive? If only they could get away from Russia this year! (89)
A Searlander writes from Zweibrucken. Again TO have to go through

another Christmas at war. in Germany great BOFFOW and suffering prevails.
May God grant us peace." (90)

Extreme cases of depression are zore often to be found in letters
from old people than from the young or middle aged who can mostly take

in another hole in their belts.

A number of people too soon to have been depressed by the early onset

of

winter. An old mother writes: "It is frightful to have winter so early.

Quite soon we shall have Christmas. What a miserable thought it is. (91)

"I wonder if we will ever see each other again?
getting old,
and one is so tired of everything one just longs to go to sleep and never
am

I

wake up again." (92)

Writing to his nephew in America "The are certainly glad that you
and Alfred are spared this murderous business, for many sons of our friends
will nover return. And who knows what is still to come. The year 1941
was supposed to be going to bring us peace, but ao many things yet remain

unfulfilled You have everything over there that you could wish for
therefore be carefree and RAY and spend your young years in continual

happiness and contentment then you will have had more out of life than
if you were here today." (93)
an
a

If
PP

os
16

have not the slightest hope that our dear Manfred is still alive
w are often doubtful. No only hope that our dear boy not with
deathswhich is certainly preferable to imprisonment in Russia
right they not have done to him if they had taken him prisoner alone

day

't bear thinking of And now this terrible cold in Russia and the

are without any winter elothing, how many will freezo to death there
ally as the food will be very poor. To two old people so often think

a bomb would hit w. We no longer wish to live after all these blows.

.H. Berlin to F.P. La Grange Tex. 20.Nov.1941.
P.B. Kevenhull Post Beilbreis to C.B. N.Y., 23.Nov.1943.
C.A. Zveibrucken to G.N. Loa Angeles Cal., 25. Nov.1941.

S.K. Gras to K.S. Chicago, Ill., 2.Nov.1941.
N.F. Wasserburg, Lake Constance, to B.B.-F, N.Y. 19.Hov.1941.
F.I. Hamburg to E.M. Long Is., N.Y. 30.Nov.1941.

And yet, we say to ourselves, that we still have one BOD left and two
grandchildren for whom we must live this gives us fresh courage. (94)
(v) November Anniversaries
writing on Totensonntag 23rd November, A Rheinlander says:

"Today is the Festival for the Commemoration of the dead, we were in the
cemetery. How well off they are there, those who are at rest. And yet

one would like to live a little longer, now that one has had to live

through another war. One would like to live to see Peace on earth again.
When How? One cannot imagine how, yet one wishes, hopes that it may

come soon. One does one's duty as before and even little more in less
pleasant circumstances

Everything is so difficult." (95)

Another Rheinlander writing on the same day from Dusseldorf sayes

"I don't know if we will decorate a Christmas tree, t don't think so.
Who 10 there to enjoy it. Yes, dear Werner, you experienced it before
Is there a family where they are not anxious about someone? Let - hope
and pray God that he may protect our dear soldiers and above all those who
are fighting against the greatest enemy of humanity, Soviet Russia. You
cannot understand and would not believe what our poor fellows go through

It can be described only as inhuman Your papers would not report it.
That is understandable for it would be impossible to believe in a country
where no modern war has taken place. I ish you could talk to a soldier
who has fought against these beasts - one is horror-struck. One really
shouldn't write about the war, and yet it is only natural to do so on a
day like today. Church services - Remembrance Day for the dead - tears
weeping. How many lie in the cold earth. And yet be thankful. God
thou hast protected us. Continue to help us. Help our people, our Fatherland. Help our Fuhrer. But also bring back vision to those non who
perhaps in their blindness wish to stir up more strife and extend this

war still further, for indeed we all desire peace. (96)

Im contrasting strain two Germans write of their feelings on
All Souls Day.

The first from Frankfurt 3rd November "Ne went to the cemetary on All
Souls Day. I must confese that I envied the dead. No who are still living
have a terrible struggle to go through The try to feel some consolation
from the fact that there are at present so many other unhappy families who
have to sacrifice their loved ones. on what great tribulation has GOME over
the human race." (97)

The second, a German nur so, working in a hospital in Hungary. She

writes: "I went to the memorial service on All Souls Day ..All the
Germans were there; the Hitler Jurend sand; an S.A. man . (storm trooper)
"made a speech; the district leader of the Bacaka read the names of those
who had fallen and the Hitler South answered Here! to each name. Then
they sang 'Ich hat' einen Kameraden. I could not 800 for the tears in
- eyes. Dr. Hertzel's two a ons are on the Eastern Front. Six volunteers
from Verbass have been killed - and more and more are volunteering. Germany
and all she stands for is at stake. The are a truly united people and w
eu and will vanquish any opposing power. He have no fear. (98)
(1) Christmas
The number of writers referring to the sad Christmas before then was

great. In the early stages of the winter, people sooned to think

only married soldiers with families would be allowed Christmas leave,
later on it appears to have become an accepted fact that hardly any

iers at all would get lesve until the and of the Russian war. This
to have given rise to many heartaches and there are a few open
Pessions of discontent amon? the women. A Javarian mother writes,

Pistmas will soon be here. Last year I wrote: Let's hope the war
/will
H.F. Hamburg to K.F. Hexico D.F. Nov.1941
K. Kohlens to E.K., N.Y. 23.Nov.1941
) P.K. Dupseldorf to A.E.F.. Pittaburg Pa.. 23.Nov.1941.
1) O.F. Frankfurt to L.G. Chicago. 3.Nov.1941.
C.G. Ujverbass, Backsa Hungary, to E.L. Brooklyn, N.Y. 6.Nov.1941

111 be ove next year' but it still doesn't look like it. What kind
a Christmas will it be again, when one knows one's dear children to
in constant danger. George hasn't been home for a year. He wants
get home to his dear ones and all of them long 1.0 get away from that

ful Russia. I don't think its right that they cannot get away if
've been there since the very beginning." (99)

"If he keeps well, perhaps - shall see him for Christmas

"P.S. . letter has just arrived from Rudolf. Ein is alive after
very hard days but completely unnerved. He has been awarded the Iron
Gross 2nd Class - but has no prospect of being home for Christmas. (100)
"On the let May my Karl was transferred to the Air Force and has

had no leave up till now. I don't believe he'll et off for Christmas
either so for the first I shall be alone without him It's so wretched
to be left allalone as I am now ..... Last year he was allowed home
after four months; but now there is very little prospect of his being
given leave before the end of the war." (101)

Street collections for fur ocats, blankets, underelothes and other
things for the troops in Ruesia net with excellent response, and numerous
writers speak of their anxiety for the army in the Russian snows. The
percentage of letters mentioning casualties in German mail rose from

10% in October to 19 and 23% in the two last weeks of November.

"ite are so grieved that Gorda has lost her fiance in Russia. He
have always been so proud to hear of our soldiers successes in the war

news and on the radio, but now it is a torture to us. Eight Braddorf .

mon have already fallen and two from Rhade . Nothing one oan say can
bring any comfort to those who are left behind, their lives are desolate

and empty. oh of ten I an so sick of life." (102)

"A relation of my Aunt who lives opposite lost both her sons last
week - Now the old father has no one left." (103)
Besides the misery and anxiety caused by the war in Russia other
war time factors such as food and elothes shortages, transport difficule
ties palo into insignificance. Indeed there are few serious grumbles
on these scores, and from all accounts, both from within and without it
appears that there is still no serious shortage of food in Germany.
On the other hand the coming of Christmas accentuated the complete

absence of any kind of luxury goods and serves to illustrate the radical
manner in which German industry is turned to war. Goods are often displayed
in shop windows which have been already been sold, or are kept there just

for show. Letters tell of no fountain pens, no skin, no ski suite, no

boots, shoes, ohina, glass, clocks, films- many other things are lacking.

"I shall probably get nothing this Christmas, as there is absolutely

nothing to be bought - oven If one has the money. There is no comparison
with last Christmas when we were still able to buy many useful things." (106)

Christmas is at hand. What a pity there isn't anything in the shops"
There won't be any presents this year."
THE weeks ago grandmother and I were in Elborfold and went through
all

be shops, but we couldn't find a thing. (105)

N.R. Oberelabach Javaria to E.R., N.Y., 30.Nov.1941.
S.F. Bonn to V.R. Elmhurst, III. 11. Nov.1941.
M.J. Gras to J.S. Yan Huys, Cal. 22.Nov.1941
A.G. Rhade b. freven 3.2 Bremon to G.D.,E.Y. 18.Nov.1941.
Braddorf and Rhade are small villages outside Bronon.

I.v.s. Stuttgart .E.S. N.Y. 2.Nov.1941.

L.S Hamburg to L.S Milwaukee 2.Dee.1941.
F.L: Supporthal Tohninkel to W.C. Mexico D.F. Nov.30,1941.

xxii

But the Christmas distribution of 60 Krans of coffee caused great
bilation. How the eyes shine when the conversation turns to coffee'
2 one writer who is determined to put a good face on it and to prove

it it is better to think of your oaks than eat it. "Everyone has the

ard."share

of things", says another, and those with a lot of money cannot

"A oup of real coffee is indeed a gift of the Gods. What a pity it

is going the way of all earthly things. But it doesn't matter - peace

will a ome again some day and everything will be different. Our Fuhrer
has
none (106)
either, he wouldn't put upon his people what he does not bear
Masolr."
(v11) Communications

The question of transport difficulties rarely mentioned at other
times is referred to more often in Jonjunction with plans for Christmas.
"Margarite who can't be with us for Christmas all private travelling
being prohibited, is eoming on Mother's birthday. (107)

"For Imas I an planning to go aking in the Tyrel. BBut it will
depend on the railway whether it is possible to get away. The passenger
service has been very much ourtailed as everything that is needed at the
front must be transported by our engines and trucks. Our railway pioneers
have already educed 15,000 kilometres of track to Kuropean standard gauge.
Now of course the Russian rolling stock is no good. (108)
"From 13th December to 6th January no one is allowed to travel on
the railway in Germany except for those on leave from the services and

labour corps with their relations. (109)

An anonymous report from Zurieh dated 27th October states that:
"In the eoming winter transport in Germany and the rest of Europe
will prove a major problem. Through the now German advances in the East,
thousands of kilometres of now railways must be changed over to the Central
European gauge. The Russians have destroyed the tracks so thoroughly that
only a small number of looomotives and trucks with wide gauge have fallen
into enemy hands. The German State Railway and those of occupied countrica have therefore to provide great numbers of their enginee and trucks
thus placing an excessive strain on their remaining rolling stook.
of
Belgian ooal trueks roll today from Germany to Italy, and all kinda
French trucks circulate in the Baltie States. Goods from Seandinavia
are being brought more and more frequently by coastal traffic to Dutah
parts, and from there are taken into the middle of Germany by the
for eanals. Consequently, the Duteh canal traffic haaddoubled and
tribled since 1989 New regulations have been enforced to shorten
line taken for loading, to accelerate the spood of the barges, and
andardise the use of freight space. Maximum prices on the basis
e freight rates of September 1, 1941, have been decreed for German

traffic. The Ministry of Transport has announced through
Pary of State Doinmann, a provisional plan for the reorganisation
Popean traffic, which will be enforced until the coa-ways are again
The traffic connections in the Beltie States, in the South-East,
Hween Germany and Italy, will be improved.. Traffic between
is and Turkey and in transit from Turkey through Bulgaria will
Spaned towards the end of the year. Bulgarian harbours are being
ped and since the railways are so congested, they are to be linked
th other by regular moterboat services. (110)
s. Landskrom to H.S., N.Y. 5.Dee.1941.
C.B. Badenbaah to M.W.,N.Y., 23.Nov.1941
N.E. Leipsig to J.W.R. Union City N.J. 23. Nev 1941.
H.J. Tadus Liehtenstein be F.N. Quatemala. 14.Nov 1941.
Unsigned, Surich, to P.B., N.Y. 20.Oct.1941.

xxill

In a letter of the 15th December the wife of the maitian Minister
Berlin (a strong Germanophobe) describes the increasing difficulty
communication within the Reigh. "It takes weeks for the smallest
areel t arrive in Germany. Everything has become troublesome slow

and very difficult. Letters from one part of Berlin to another, for
instance sometimes take several days, and correspondence to the

provinces or abroad takes nearly as long as the mail to Haiti. Everyto be disorganised This is explained in Germany as
being caused by the oensor watching over the safety of the country!
Lately an enormous number of letters have been lost. Recently the
Consul at Nice had B letter forwarded to Berlin; it a never arrived.
thing seens

Go

But what it really tragic is the mail for the German front. Little
parcels sent to soldiers are actually stolen by Post Office employees,

KT

In Berlin the number of trans and buses has been reduced by half, and

and

in spite of the severs penalties inflicted if they are found out

10

the trains too. Railway tieketa can only be obtained by application
four days in advance and the reason for this Journey, proving that it
is absolutely necessary must be stated in writing." (111

(viii) Entertainment
Many letters tell of erowded einemas, theatres, cafée and restaurants, especially in Berlin, and of the necessity of reserving
seats and tables a long time in advance. "The theatres and einemas
are so booked up that you can seldon get soat. Very little money
is saved nowadays, the young people live for the day and enjoy life
as never before." (112)

And in this connection the latent German sense of inferiority which

mas

the
nia
an

tat
net
war

has

seens to lie behind so much of German arrorance comes up again.

"I go to the theatre now. There are a trenendous lot of shows on
in Berlin in spite of the war! The Enrlish would be astonished If they
could see what marvellous shows are put on here. One oan only get
tieks a with great difficulty because the Berlin public is tremendously
keen on the theatre. And yet we are called barbariane! But I main-

tain that people's theatre reflects its culture and its soul - and

the German's culture is certainly not bad. You should see yourself how
aspiringly and sincerely we Germans live for art. But the best German
is still the German soldier." (113)

(ix) The nature of the change

the
WO

be

all
ass

for
sho

NOT

tho

In attempting to arrive at any conclusion regarding the exact nature
of the change which took place in German home arrale during the month of
November due consideration be given to the restraining influence of
German censorship. Organised opposition will naturally not come to
light in letters sent through the post nor can one expect to find any
writers darine to voice considered or constructive criticism. People
have been carefully schooled in what they may and may not say in letters;
now sheles ordinary humdrum troubles and worries are irrepressible.

It interesting to speculate then to how great an extent the two
f as Rs. fear of censorship and censorship itself modifies the picture
of Bryday life. Hardest to asses is the first, although the number of
NT PO who begin by saying "There is BO much misory amonst so many

chaz
from
of

the

no n
what

of G
from
ship
and

fat les. I can't write it all to you 8.8 you know but still. (114)

oceed to pour out all their woes at length is surprising. with
re to the second, some lirht is thrown on this question by the good

an

BOY

in
has

no.

be of the German censorship itself.

ix letters written in November and parked for deletion but released
for by the censor with the offending passages not yet obliterated
been intercepted in Bermuda.

(115
(116

(117
(118

(119

(11 L.F. Berlin to J.P. Haiti 16.Dec.1941.
(11

H.H. Landshut, Bavaria to M.W. Inketer,Mich 11.Nov.1941.
F.L. Berlin Grunmwald to H.M. Sheborgen Wis. U.S.A. 30.Nov 1941.
(114 A.H. Ailvingen Wurttemburg to L.A., N.Y. 30.Nov.1941.

(11

(120

xxiv

Insofer as these letters provide valuable evidence of the nature
sameent
cormonly suppressed, the full text of each intended deletion
given below:
"when you consider the number of very young people who sust once
DOTO die 'n the battlefield, a shudder 008 through your very bones
How gladly they would PO on living and return home again, but that

wish is not granted then. Yes we too are putting our firm trust in
God, and hoping for an early and lasting peace." (115)

"We are all well so far and we can be thankful for it. There are
grave and difficult days not only for us but for the whole world. There
10 still war and no and in sight. It is so sad and hard when such young
and healthy life is destroyed and so much unha piness is caused so
many people and so much is destroyed." (116)

"It is very cold already so that I don't know how I shall last out

the winter with so little fuel. Our house is terribly cold. oh how
miserable
is this hateful ear, if only some how some day it could come to
an end." (117)
"The nervewracking war draga on and the Lord only knows when this
terrible bloodshed will a one to andend. knough for Marguerite and my
serves! The war 1914-18, inflation, the long decreasion and now another
rar lasting already now more than two years. We are fed up!" (118)

"If only this wretched war were over. It has already caused such
Martache, and how long will it still go on." (119)
"Christmas is coming. Winter is already here, so grey and dismal are
the days and everything. One dare not begin to think. We are all right,
. are comfortably housed, but the other poor devils - Oh why must it all
of One must control one nerves; one would want to weep and weep." (120)

It will be observed that the above passages differ very little if at
11 from other depressed letters which o omo to hand without the unwitting
asistance of the German censorship. The question would seen to be thereore one of extent rather than degree. How great & proportion of letters
howing low morale never reach their destination?

Statistics of mail read in Bermuda indicate that at the beginning of
ovember approximately three times as many letters showed good morale as
hose which showed depression. Towards the end of the month the proportion

hanged to hald and half. But these statistics in themselves are far
FOR being infullible, particularly in considering the sombre resolution
r November. Few writers who spoke about the war were not depressed by
he signitude of human suffering. Few were not determined to hold out

a tter what the cost till final victory. It was often a mute point
bether to classify a letter as whowing depressed or good morale.

After reading through all material derived from the consorship

Gaysan November mail, and taking into consideration many reports

* reign sources, together with statistics and travellers consorip parts, it is inevitable that some impression should be found
ativo conclusion reached.

id

German morale seriously weakened? The answer appears to be

le had set their teeth in hahappy resolution.

is

15) .H. Geroletein Kifel Rheinland to W.A. Glendale Ca. 3.Nov. 1941.
16 a Brealau to S.R.C. Marshfield, Mass. 2.Nov.1941.
H Vienna to F.M.L., N.Y., 20.Nov.1941.
R.N. Bremen to H.C.T. Chicago, III. 2.Nov.1941.
i.s. Muraberg to N.Y.B., N.Y., 9.Nov.1941.
J.S. Vienna to R.P.,E.Y., 10.Nov.1941.

17)

18

19)

20)

XXY

The following report by a free German working for the cown-

fall or the uitler regime within the keich not only ringa true

appears to be remarkable objective, but it entirely confirms the
impression cained from reading German mail.

The writer, an engineer, was released from the army owing

to the intensive efforts of German industrialists. 'n a short

visit to Switzerland he wrote on November 26th:

"General morale" (in Germany "sorely tried but unwavering.
Up to the present, even among relatives of the fallen, there is
no WAT weariness. There is a general disinclination to think,
especially among the working classes. Both employees and officials

are too tired for mental exertion after the day's work is over| this
is particularly the case with officials after their enervating wor
in the various departments of the Party. In fact the subtle and
coll-calculated tactics of Adolf. Morale in the bombed regions

of North Germany is better than in South Germany. The results of
England's bombing attacks are Isuphable - they appear senseless.

oly the shipbuilding yards of the North Sea and coast of Holstein
have suffered serious damage, apart from the residential quarters

of the Rhineland towns but this has not affected morale. on
this point I have no great opinion of the taction of the English,
for they provide subject of internal proceranda which would not
exist if military objects alone were bombed.
"Strange to relate, or perhaps logically so, people attack the
Hitler regime openly in Munich without running any danger of being
reported....Alome the Catholic Church in Germany is openly opposing

Adolf in his home policy. All the others remain on the defensive
and trust no one. Food supplies at the soment are still sufficient
though for single people, barely enough. Families still do well.
Certain things are, of course, non existent, as the capitalists behind
the soenes have driven prices up to astromomical figures, for instance

every kind of fruit, and this will have a very bad effect on the young,

and discontent among the womenfolk be mounting clothing organisations
are as before, i.e. wangling is rife. The Party boases are despotic.
Shoes are inconseivably soarce. Materials are rotton and tations insuff.
icient. In spite of everything, the MAD in the street believes in the
infallibility of Adolf. The Vabanque propaganda 'Conquer or perish is
successful. Standing in queuea is now quite normal, even in the small
South German towns. Housewives of the poorer classes grumble but this
is not a serious matter at the moment. The strategy of reserved tables

at restaurants has almost entirely disappeared. People note apathetically
the instructions issued. As every family has soldiers at the front,
vistories are joyfully received but not loudly acclaimed. The contraeletion between the boastful announcements of Adolf and the actual faota
will doubtless become clear to the man in the street within the next few
works. But Goebbels will be able to master the situation with lies and
Cretogy, until hunger makes itself felt. Industrial production is,whatmay be said to the contrary, still at its height and in cases even
increase. Have no Angloproparanda illusions about this.
"The basis for propaganda will be rood this winter, but England is going
wrong way about it, moreover wireless propaganda is worthless, as it is
heard, and rarely passed on. Leaflet propaganda up to date accurate and
suited to the mood of the moment would be much better. It should be
by Germans 11 hr yourself for the English and the Jews talk continental

a and therefore lie. There should not be trace of inaccursey - then
ald be effective. One must he able to examine it if it agrees with
note it is acceptable and satisfactory. But there myser t be close cooperatic
observers in the Reich. It should be broadcast and printed in unoccupied
and England. The reports of co-workers in the Reich should
base and inter-oomuicaticn arranged for
The writer refers to acts of sabotare for which he has been responsible
it which resulted in the loss of 12,000 German working hours, and his fu
.
be

He concludes: "Propaganda needs money and more money. will England

.8.A. finally see this and thus spare people's lives. For every day
through our work we bring Adolf noarest his downfall morna saving of
Heil Dowtoohland!"

xxi

IL

THE R.A.E. OVER GERMANY.

Since the last report was written on Germany in September,
one of the most pronounced developments to be observed is the changed
attitude of the German people towards air-raids. For one thing the
masian WIL has caused all other fears and suffering to fade into the
background, for another, as one Haaburg writer puts it, "Der Mensah

1st ein gewohnheits Tiar. "And there goes the siren, I was already
repared for it as the wireless had just closed down - nothing
frightens us now." (121) Three other important factors have contributed
to this hardening of air-raid morale. Growing confidence in antiaircraft defence skilful propaganda regarding the number of planes
brought down and the rapidity with which Clearance squads set to work,
clear up or screen off the damage and begin reconstruction.

Commant is, of course, still varied and conflicting, but not

nearly so much so as it was during the preceding winter when there

- frequent evidence of gemine Year and little effort made to

disguise it. While this has not entirely ceased (it is to be

uncountered mostly in letters from older people), it has at least
came to be exceptional; there is also less talk about people feeling
absolutely exhausted from sleepless nights, and #dead tired at work

Deact morning."

Far the greatest number of references to air-raids in letters
come from Hasburg) next comes Berlin. Not that there is anything to
suggest that either Hamburg or Barlin have suffered more than the other
ports and industrial centres - on the contrary, a report based on
information secured from exLgrants in Lisbon states "They agree that the
west bombed cities are, in following order, Cologna, Minster, Hamburg,
Aachen, Bream, Kiel, Mains, Frankfart and Berlin laga a long way
behind." (122) But with a population of over a million, and the
second largest town in Germany, it is only natural that Hamburg should
provide the greatest volume of material and henoe becomes the most
favourable subject for consideration.

The following is a cross section of comment from Kamburg in
which no special selection has been exercised beyond that of arrangement
into chronological order and the wooding out of uninteresting and
negative remarks such as Towny was over again last night" or

"Yesterday w spent two hours in the cellar."

This method of presentation has been considered preferable

in view of the extreme diversity of comment, and in order that the
reader my be left to draw his own conclusion.
September 18th.

"In spite of the great di.CCLoulties and vast distances our
des are advancing successfully Against that the English can
no impression with their absurd raids. If they think they can
prabala us by them they are making a great mistake. They have

letly the opposite effect. In spite of its great sufferings the
man people becomes more and more determined in its resistance as
anger increases." (123)
Lember 20th.

The last air-raid on Hamburg on the night of the 15th was &

one; - shot down seven aircraft." (124).
Lember 22nd.

"A few days ago we had the worst raid. children, women and

people were killed - British objectives are only residential
Man is a creature of habit.
n) O.W., Haaburg to L.W., Lakewood, Ohio, 50th Nov. 1941).

2) R.L., Lisbon to H.M., N.Y., 27th Oct. 1941.
23) F.L., Hamburg to H.M., Sheboygan, Wis., 18th Sept. 1941.

24) I.T., Haaburg to H.L., N.Y., 20th Sept. 1941.

xxrii

districts. We BOO it with our own eyes, a frightful sight, demolished
adoos - yesterday the homes of many families, today a beep of
nable
(125)

September 26th.

"About 11 days ago we had A nightly air attack by British

bonbers, who caused some damage in quarters where they could not count

with anything but civil population, but they had to book the loss of
9 boubers, 11 there had been any more of then, those too would most

probably have ended in the sea as usual. That is why they dread the
Hall over Harburg' as they call it. The much vaunted non-stop attack
of the British air force in these last 90 days of the war with the
Sovieta has cost them over 1400 machines, the Mediterranean excluded." (196)
September 29th.

"It is to be hoped that this murder will soon couse, we have
dreadful air raids here, and the R.A.F. always strike dwelling-houses
wreck the from top to bottom, and the people perish minerably....T
is not warfare, they want to exterminate humanity, it is frightful,
terrible that such weapons should be used against peaceful human
(127)
beings, what can the poor people do?..
October 3rd.

"One good thing now in the war is that we don't mind the
air-raid alarms. Sometimes when the noise of gunfire gets too much
w go into the garden and watch the Tounny being brought down." (128)
October 15th.

"How comes the terrible night, you can think yourselves lucky
that you can sleep in peace." (129).
November 10th.

A German mother, who has returned to Hanburg after having

spent the summer with the children in Bad Kissingen, says: "It was
simply heavenly and we are narvellously better for it. It was only

when we began to feel rested that we realised how overwrought we had

beocca The air-raid warnings are not so frequent as last winter,
although the raids are perhaps more violent. But wo are not giving
up hope that are long they will cease entirely." (150)
November 15th.

The Chilean Consul General states in a report to the Minister
for Foreign Affairs in Santiago: "The most recent air attacks on
Hamburg by English planes have been fairly heavy, killing and injuring of
many of the civil population and danaging many private houses. One
the bomba fell on the Central Station causing BOOD damage but no

Berruption of traffic. Last week 54 viotina were buried and at the
inning of the present week 52 more."
maber 17th.

A writer who is terribly depressed, his son having been
orted missing, says: "The banbing attacks on Hamburg have been

more intense recently. But they have become such a usual thing
- no longer think about them." (131)

ember 18th.

"Here they are still building shalters, a sign that they are
ecting still more and bigger air-raids." (152)
(L25) E.J., Hanburg to M.S., Freeport, L.I., N.J., 22nd Sept. 1941.
to E.A., Boston, lass., 26th Sept. 1941.
L26) R.B.,
to A.H., N.Y., 29th Sept. 1941.
27 G.B.,
to A.E., Salt Lake City, 3rd Oct. 1941.
128) B.R.,
to W.P., N.Y., 15th Oct. 1941.
(2.29) M.P.,
to
E.D., Quatenala City, 10th Nov. 1941.
(LBO) D.H.,
to
K.F.,
Mexico D.F., 17th Nov. 1041.
(181) H.F.,
to
M.P.,
N.Y., 18th Nov. 1941.
(1.52) H.D.,
.

.
.
.

.

.

xxviii
November 20th,

"It is a share the English should boab residential districts
Hamburg is big enought However, we have little cause for
complaint recently, for the raids are less frequent than last year, nor
La
Hanburg
a heap
of rubble - though your papers no Coubt carry tales
to that
effect."
(133)
surely

November 23rd.

"At the moment it is and foggy so we have a reat from

Tommy." (154)

November 25rd.

"Be have had peace for a fortnight
a

neavy

raid

is

terrifying thing. But one becomes accustoned to it." (135)

December 1st.

"Yesterday there WILS annalarm. It NES 8-30 P.2. bright

noonlight with slight frost - perfect weather for raiders. It was

pretty bad, and again some bomba fall quite close to the house. On
the whole the Tommies do not accouplish much. If they want to wear
Germany down, they will have to go about it in a different may." (136)
December 1st.

"The are quite all right except that we are always anxious for
fear the coming night may be disturbed by an air-raid alarm. We had
peace for three weeks because it was very forry at night and last
night (Nov. 30th) it was not a very bad one - from.half past eight to

half past eleven. the terrible racket of the anti-aircraft runs

everything shakes.. About 300 metres away from us U bonbs .ropped... It

is quite terrifying when next day you see this devastation and ruin and
think what a narrow escape you have had. What uankind suffers when
pitilessly exposed to such machiner/ of destruction. Christmas, the
festival of peace, is approaching, but when shall we have peace? If
not this year then we all hope certainly it will be next year." (137)

It is difficult to arrive at any conclusion regarding the

different reactions of the various bombed areas to R.A.F. raids as

sufficient material is not available to permit & satisfactor/
comparison to be made.

After a particularly heavy raid on one of the towns less
frequently visited there is occasionally some indication that people
have been more seriously unnerved; Berlin, on the other hand, which
Boocas to have had a relatively quiet time of it this winter is rather
more contenptuous as to the effects obtained, particularly with regard
to the Russian raids.

In the main, however, little difference is to be discerned in
air-raid reactions of the various towns. Everywhere the crowing
officacy of anti-aircraft defence and the successes of night fighters
las had a heartening effect on morale.
Only two writers referred to panphlet rails of the R.A...

Lle such comment must needs be entirely valueles. as an indication

the effects produced - all contrary opinion reminin, inovitably
revealed - it is nevertheless of a limited interest. From Granden,
tria, 14th September: "This week the g were here and dropped
phlets. They will have to wait a long time before they make me
Lieve the worthless stuff they drop." (133)
eks

From Kalhus bei Hersfold, Kurhessen, 31st october: "A few
ago English planes dropped pashhete near us. One actually

(LSS) G.S., Haaburg to H.S., Detroit, 20th Nov. 1041.
134) G.S.,
to H.S., N.Y., 25rd Nov. 1941.
to A.B., N.Y., 23rd Nov. 1941.
(135) K.S.,
to C.C., Tacubaya, Mexico, 1st Dec. 1041.
(136) C.N.,
(137) B.W.,
to N.R., N.Y., 1st Dec. 1941.
(188) F.N., Gmunden to N.G., N.Y., 14th Sept. 1941.
.

.

H
.

L

2

-

11 in our courtyard. They might save themselves the trouble thereise - are not bothared by eneay planes." (139)
Lastly the views of a German-Swims from St. Gallen on the

bet of air-raids: "Neller's sister HILLS here too and she spoke
Mafly of the marrellous organisation in the Reich. Absolutely
thing is being neglected to improve people's morale; for example,
m large stores in Berlin are forced to have 2-3 glass panes in
per shop window, so that everything can be repaired at once.

I communicating shelters have been constructed under the

and the Clearance squada are imaginately at hand.

said that that didn't impress me in the least and that in England

everything - much better planned and on a larger scale! told
that she should just go back and tell that to har Huns." (140)

THE

THE

In the eyes of the home front no praise is high enough with
which to desoribe the heroism of the German arays to be worthy of its
marifice and achievement is the constantly repeated aim of innumerable

writers. In their letters to friends and relations in America BOUR

people enclose a sheet or copy out long passages of a letter received

from nons or brothers at the front. These extracts, which are not

as numerous as one might wish, provide practically the sole source of
direct information to be derived from German mail on army morale.

Indirectly there is a certain amount of civilian comment on the spirit
of the soldiers returned from the fronts, wounded or on leave, while
& great many writers tell of the enthusiasa of German youth, eager to

valunteer and to be in the thick of it. This indirect information,

Loss reliable - not only because it is evidence at second hand but
also because writers doubtless prefer to write of courage than of
transidation - must be considered with BOMO reserve.

"Our eldest son Gerbard is in the forces with the parachute
troops on 11th December he will be 19 years old. You canget imagine
with what exthusiasm the youngsters because soldiers. He - called up
for the navy) but his one ambition mas to join the parachute troops.
has grown tall and strong and is 1.72 netres tall and weight 68 kgs.
From that you can see that we are by no means undernourished as last

Mm. (141)
"Alfred will be coming home as soon as his school breaks up.
Bush as he would like to be here for the holidays he is aching to go

to the front, 11.100 all the rest of them. It is so unlike the last
they feel it as a punishment if they get posted within the
ah, and certainly it is no fun now on the Russian front!" (142)

This war has brought much BORTON to many families," writes
German woman from Barlin, "but if people only realised the spirit
ah animated their children their grief would diminish." (145)
"Herman Fischer my brother-in-Lar's youngest son was called

mine weeks ago. At first be was very homesick but that has to

endured at 18 one is only a child, although he is firaly

Vinced that the war cannot be won thout him. The boys are all
of enthusian and every other one of then wants to be an airman."
4) While there is a tendency amongst some writers to eulogise any
eat of German youth, "You ought to just see our German girlst A
untry with such young people as we have could never lose a war." (145)

J Werner has Just come in from the Hitler Youth service. Yes, the

th of today is strictly disciplined and kept fit for the great

pure." (146), at the same time there is often a sigh of disillusiont to be heard between words used by older people describing youth's
our and impatience.

9) O.O., Kalhue bei Herefold, Kurbessen to H.V., Kelrose
51st Oct.Park,
1.41. Ill.
40) H., St. Gallen to A.N., New Haven, Conn., 15th Nov. 1941.
II H.W., Nordhorn 1 Hann to J.W., Indianapolis, 9th Nov. 1941.
42) B.P., Bromberg to A.E.S., N.Y.,, 30t. Nov. 1941.
43) G., Barlin to G.O., N.Y., 21st Sept. 1941.
44) B.A., Wiesbaden to C.B., Hollis, N.H., U.S.A., 22nd Sept. 1941.
75 H.H., Brenen to O.A.N., N.Y., Nov. 29,1941.

us N.P., Heidelber to .., LA Pas, Bolivia, 25rd Oct. 1941.

"A few years more and our Adolf will be in it too.
volunteer at 17; there is no holding them back." (147)

They all

"Holal has been on the Russian ront since June 22nd - Heider,

too, is with the artillery now. We old people are andious and sorrowful,
but the boys are full of enthusiasm and write cheery letters." (148)
"ite were BO thankful to have Reinhard back from Russia - he WILL
badly shellshocked on the Moscow front. He WILS home for four works,
but now he wants to go back again." (149)

A Hamburg rector writes: "Frika's husband is joining up

on

December 5, and will go to Lear in East Friesland probably in the Navy.
Joschia is with the gliders and full of enthusiana and wishes to be

& soldier after the war is over too all the difficulties and

anxieties of the present time weigh us down - at our age we find it
hard to bear up." (150)
of the keenness of German Youth waiting to be called into

battle, there would seem to be little room for doubt, but the picture
as regards those actually taking part in the ordeal in Russia is
rather a different one. It has changed a good deal from the gallant

spirit of invincibility of the early summer.

"Gerner has been in the East since the beginning of September
he's rather miserable I'm afraid. He must have to endure hard times,

he WILS so delighted to become a soldier." (151)

"He is near Leningrad and writes that he is better now, although
like all the soldiers he is rather afraid of the Russian winter." (152)

"Frits is suffering groat hardships in the Murmanak district
where he is now. The country is full of innumerable lakes, rivers and
great stretches of marshland. And this summer it never stopped raining
so that for woeks the poor follows didn't have a dry stitch to put on.
Even in their tents everything went mould/. And now besides the cold
and damp they have the darkness - it's no joke. He doesn't seen to be
the only one to suffer from colds and kidney and bladder tbouble." (155)

"Karl came back terribly thin from Russia, and they all look
so

old, the airmen have a frightfully hard time of it. No dared not

speak at all about the war - they must go through so much in Russia.
The Bolahevik fights like a wild beast and those brutes of women." (154)

Bitter recognition of the fighting qualities of the Russian
soldier is to be found in & great number of letters.
A German Foreign Office official says: "Contrary to many
people's expectations the fighting at the front is proving hard and
aruel. The generation of Russians which has grown up in the philosophy
of Bolshevism is fighting with stubborn resistance for which their

Asiatic centality is accountable. My brother who is at the front is
appalled at the conditions prevailing in the workers' paradise and the be
is amased at the Slav stoician with which the people look death in
face. He says A nan who is thus 30 unnoved by death doubtless too
Late others die unmoved." (155)
"The Russians fight like beasts and savages, not human beings."
(156)

"They are very brutal, and always goaded on by their
(157)

(147) b.K., Bamberg, Bavaria to A.B., N.Y., 25th Nov. 1941.

(148) .., Vilahofer to M.S., N.Y., 25th Nov. 1941.

Cal.,

(349) A.B., Sudevende auf Fohr Schleswig Holstein to 17th M.R., Oct. Petaluma, 1941.

(LEO) E.L., Hamburg to E.L., Princeton, 21st Nov. 1941.
(1.51) (152) A.R., K.K., Wildbad, Berlin to Wurtt. H.D., N.Y., to F.O.K., 23rd Sept. Monterrey, 1941. N.L. Mexico, 2nd Oct. 1941.

(158) O.T., Barlin to W.B., Mexico D.F., 25rd Oct. 1961.
(154) G.W., Warrwalfingen, Wurtt. to M.B., Chicago, 2nd Oct. 1941.
(155) H.J., Berlin to K.O., Washington, 9th Nov. 6th 1941. Oct. 1941.

(156) G.S., Fribourg to L.V., Portland, Oregon, 1941.

(157) L.H., Berlin to G.L.L., N.Y., 10th Sept.
8

xxxi

"Axal got back yesterday. It is amasing how quickly your
people get well again. He has been wounded four tines. The tales
from Russia are pretty awful, there was a sergeant aajor with him in
hospital who had been a short time in Russian hands. They rouged bot.

his eyes out. That's no (158)

"He writes that he would rather fight five canpaigns in the
West than one in the East." (159)
In the earlier days of the Russian war during the canpaign in the
South, a number of writers told of the welcome given to the Gernan
soldiers by the Ukrainian villagers.
"He has advanced a long way into Russia near the Black Sea.

In his last letter he said that wherever the went they found everythin

in flames - everything had been set on fire by the Bolahevica. Whenever
they stopped anywhere to rest Ukrainian peasants would co.30 up and offer

our soldiers milk. Apparently many of then know a little German and
say how glad they are to be freed from the yoke of Bolshevism." (100)

"Frits is in the Ukraine, the poor people there can't do
enough to show their gratitude to our soldiers; what the 301sheviks
have left them, and that isn't much, the/ share. The rations which
the soldiers get are excellent, only when you are with an advance
section, as Frits is, it sometimes happens that there are difficulties

with the food supplies in spite of that Fritz writes that they are all
in excellent health." (161)

"Two woeks ago we heard from Hans, he TELS stationed outside

Odessa in a purely German village. The ancestors of the inhabitants
emigrated there from Alsace. They couldn't do enough for the German
soldiers, washing the clothes and helping these in ever day." (132)
Other reports tell of the German reopening of Church.ou in the
regions occupied.

"The Russians are finding their way back to God through
unitterable misery, one learns that plainly enough from the soldiers'

letters. Alfred wrote too that the people are thronging the churches
which have been reconverted from cinemas, shops and stables, for the
Bolsheviks had need of everything but their churches." (165)

"They began with 'Praise the Lord' and when the local
population heard they came in and fell on their knees, hardly able to
believe their eyes. Our soldiers prefer death to imprisonment in the
hands of the Bolsheviks. (134)

But the majority of letters speak of nothing but the lice,

and, cold and interminable hardships of Russian winter.

"when he writes he always mentions the varain as well as
the cold weather." (155)

"Last year the boys could get all sorts of things for me, but
there is less than nothing - there is nothing to be found even for
inselves in that desolate land. Except or the Arty, the Russians
all in rags, Frans describes then so vividly - the children half

d, everything absolutely filth and stinking, full of lice, which
Nurally crawl on to the soldiers .Isn't it dreadful - and the have
sleep in those bug infested hovels at night because the col. is 30

Atrocity story
88) D-S., Rosenheim to R.G.M., 2nd Dec. 1941.

99) A.O., Hambur to R.O., N.Y., 12th Sept. 1041.

o Feldkirch, Vorarlber to J.K., Chicago, 5th Sept. 1041.
n M.S., Guben to M.S., N.Y., 17th Sept. 1041.
(62) E.F., Breaen to L.F., Fort Stanton, New Mexico, 7th Nov. 1041.
(183) T.W., Greven b/Munster to C., St. Louis, U.S.A., 25th Oct. 1041.
(38) A.S., Sassenhols uber Zeven to J.V., N.Y., 25rd Sept. 1941.
165) T., Dornhausen, Bavaria to F.T., Southport, 2nd Nov. 1941.

xxxi

reat.

Since 23rd May Franz has not slept in a bed! You can inagine how
longs for one - and a good many other things too for Jix weeks he had

mil." (166)

Other writers confiru the alowness of the nails, as G rule letters
to take about three weeks to get have from Russia, although there are
number of complaints of then taking as long as a month and over.
There are some indications of shortages of cigarettes and there
instances of temporary difficulties in the bringing. up of food
supplies to the advance column, but on the whole, writers praise the
efficiency of the Aray Supply Corps.

are

"Up to November 5rd he WILS all right. It is
frightfully cold
out there, but our soldiers are well looked after, only the roads are
so devastated that it often takes a long time to bring up reinforcements."
(167)

The Russian airforce doesn't trouble than much, nor are the bad
roads and bad weather the worst, the hardest thing they have to overcoac

is Russian lice, bugs and fleas." (168)

There is an isolated reference to dysentery among the troops in
the North and one to poisoned wells and Guerilla warfare. "According to
their letters home our soldiers have gone through a great deal. All the
wells were poisoned so that nowhere could they quench their thirst They

all write that the worst of their losses do not occur in battle but from
the activities of snipers behind the lines the women too are ver/ bad.
But our troops are ready for then." (169)

Even in those letters written up to the beginning of December,
before the Russian counter offensive HILLS well under way, there is abundant
evidence of the extress hardships and suffering to which the German any
WILD subjected.

WHat is more difficult to assess are the reactions and morale of

the soldiers themselves; here there is little information to be found.
Only by comparison can this much be observed: while there is nothing
tangible to suggest a slowing down of the pulse of German endeavour, the
former boisterous exuberance is now no more.

The earlier watchword of the Balkan wars and Crete "Nothing is
impossible to the German soldier has given place to praise of the
#umbelievable achievements of the German soldier." Some letters too
speak of bonds of couradeship. A German Baron, father of three sons

righting on the front near Leningrad, says: "They all write, as so many
others at the front, about the wonderful couradeship, the clean decent
stansphere which prevails throughout the bitterness of their strupple;
that consider it A privilege, perhaps & strange happiness, to be there."
(190)

The mother of a German soldier recently invalided out of the
And writes in a letter posted in Zurich to avoid German censorship,
tines they were ten days without WATER food because the truck struck
Las or something similar. Then the food would be sour and

equently they suffered terrible intestinal troubles. Twice he

lapsed unconscious from weakness and all the tine they wore
incing, pushing the wheel through the thick maid. At night the round. had
wherever they happened to be - mostly, of course, on wet it BO
rally that is a soldier's life, and I only tell you bronchitis about and

you will understand how it was that with asthma, to his

stinal disorders he could not stand it. \His first words for not
on the telephone were Ifes, Father, you must forgive me again
able to stick it out to the and Above all he emphasized those
again what an incorparable followship has been forned by
L.v.B., Berlin to E.L.K., Chester, Penn., 25th 1:41. Nov. 1041.

W.C., Poser. to A.S., waterbury, 25th Nov., 12th Oct.
(383) P.E., Zoppot, Dansis to 1.E., Los Angeles, Sept. 1341.

(300) E.H., Aschaffenburg to P.S., N.Y., 12th 1941.

(EPO) E.S., Copenhagen to H.W.A., N.Y., 25rd Oct.

1041.

xxxiii

fighting in Russia. I suppose it is natural after all they have been
through. He says how wonderful the officers were and how good to
their man, sharing all their hardships together." (171)

But it is to direct evidence, to letters from the fronta

from the soldiers themselves that one must turn in any attempt to
follow the developments of German Army morale as the struggle in

Russia goes on.

Only thirteen of these letters of any consequence have been
intercepted in Bermuda since the beginning of September,

The picture thus obtained - at random as it were - from such
alander material, is too alostaby to permit of any conclusions to be
dream or to warrant any comment. Extracts from the letters in question
arranged in chronological order appear below
September 7th

"The mar will be won by Germany that is clear to everyone.
amount of work. Many people here finaly believe that America will
come into the mr, but it will not make very much difference to the

After the war, terrific production will begin and there will be great
outcome of the mr. Russia is certainly very strongly armed we
soldiers see that at close quarters. Tanks, shot to pieces and

burnt out, are lying in massa on the reads along which wo advance.

Heavy tanks and heavy grillery but nothing has of use in holding

up our advance. The fighting is artify bitter, but It goos

on without a break. Many of my comradee have fallen, but our losses
are not as heavy as they are made out to be. How humane is the German
soldier and the Gernan Command towards the Russian people. Where w

can help, help is given. It is actually forbidden to each one of us to

take any a single head of cattle from the Russian possant. Over and
above our actual nocessities - are not allowed to take a thing. The

people are very TOTAL poor. What did the much vaunted Russian
propaganda actually promise them?

"At present w are having a lot of rain, and it is impossible
to give you an idea of the condition of the roads, the mid is so
dreadful. But mad and bogs will not hold back men, animals and
machines. We all hope there will soon be a decision in the East."
September 19th.

"Now our thoughts are almost exclusively occupied by the
question whether and when w shall be released from here. Before
us all there standa the threatening possibility that we may have to
pasa the Winter in this miserable country."
An army doctor decorated with the Iron Gross 1st Class writes
also on September 19th "This war is awful. Those who get home again
APR lucky."

September 21st, to an internee from the araf Spee in Buenos Aires:
&
yr

"Things here are still the same. I have not been home for over
It is incredibly squalid here, much worse than where you are
in take it from me. Small mud-buts, unpalatable food, no company

.

our own unit. From time to time we get letters. You at least

distractions, cinemas, worsen, theatres and civilization. We have
without such things but we can't help longing for then all the

But first, we have work to do here. And - will do it - you

quite sure of that."
ber 24th,
in

"In the place where - are staying now there are about 5,000

tants. The centre of the town is antiraly destroyed. I can't

be what it is 11 ca. Russia is not nearly so bad as one makes
out

They are certainly culturally advanced. In the big cities
one
roads
The

fine houses, beautiful gardens and imposing mengials.

(17%) L.O.N., Munich to F.W.N., N.Y., 30th October, 1941.

xxxiy -

asphalted. The road to Moscow is 18 metres wide. They have
undoubtedly progressed a lot."
September 25th, from a German officer in Vienna (written in English).
"Besides the war our culture is blowing and growing to an
extent which nobody has thought possible. The British propaganda
pretends, we are huna, we like to go through blood, WO are without

culture. Well, it is will and everything is right to fight the enery.

I oan understand the British, because in spite of all their economic
power, they feel themselves that they lose one position after the other."
Found in the coat pocket of & German soldier reported missing

- the following letter, dated October 5th, to his mother in Moravia.
"Dear Mother, today I feel as though I must write you a few words

of thanks dear Mother, as farewell from this world. I have asked

a comrade to forward you the contents of this difficult letter if

I should die a hero's death, as I want to thank you for all your love

and goodness which you have Fiven me in such full measure. Dear Mother,
don't be sad, but proud that your youngest son WILS allowed to help break

Germany's Letters, That he my not take part in the final victory is
in God's hands, and it will be the right thing. I can look forward
quite calmly to the future. To my dear sisters, my greetings and best
wishes for their happiness and for their safe future in the Reich of
Adolf Hitler. To you, dear Mother, I send from far away in the East
a loving farewell, in the hope that we may meet again in a better world."
Forwarded from Wesermunde on October 10th, written from the
front near Leningrad:

After heavy but very successful fighting on our part WE have
out off the Russians from their reserves. Our next step is the complete
destruction of their gigantic forces. According to foreign news reports,
we have done nothing but lose battle after battle, but our Division,
which has been reported by the Russian radio as complete annihilated, is
actually before the gates of Leningrad. Although we could take every
conceivable objective within this city of 3 million inhabitants by our
artillery fire, we are confining ourselves to the shelling of shipyards,
docks, barracks and the huge Kirow works. We could take the city within
a week with the ammunition stored here but we are only fighting for

military objectives. The city itself, cut off from communication with
the rest of Russia, will fall along with the rest. Hunger is already
driving hundreds of deserters over to our side.

"To Germans entrenched outside the city are cheerful and in high
spirits. We are housed in bomb- and shell-proof dug-outs and feel
comparatively WITH. Above all we have enough food to oat, and can
sometimes even spare a mouthful for the already half starving deserters
and refugees.

"The people of Russia are bestial and know no human feelings.

That do not bury their dead. Bodies are buried in any kind of a hole
but caremony, cross or name after they have been stripped of all
clothing. Often we appoint civilians left behind to bury them.
absolute bestiality and brutality they spit and trample on the

and finally strip them of their clothes."
5th.

"Thoever would have thought that one day your letters would

to seek ae out far away in the East. As far as I an concerned
a well,as you know I aun a member of an ambulance corps on the

ary railway, and so do not see much of military life, I an at
tion, waiting until I am called. Our section has DON than 100
There is always plenty to see. Nearly every day hospital trains
, or train loads of prisoners, and every possible thing needed for
is sent off. As regards material comforts things could not be
The food is excellent, better than at home, and that is only
for when one thinks of what is being accomplished here,
how one
smasing

unly cannot allow anyone to feel hungry. It is

4

the

XXXY

dans held out, they don't know what mara food means, hunger

(yes them over to It is getting towards the end here, andthey

not need - against England as there are younger man available
is already miserably cold, I as glad to have & roof over my head
is enough fuel for fires here, that is the only thing the Russiana

apart from that things are bad, the filth is terrible, you nearly

in it. I - not in the danger-sons, but often & 'plane flies

dropping propaganda leaflets inviting us over to the beautiful
Ast paradise, but no-one is interested.
16th to his Nanosa in America:

....I have been in the East since the beginning So far I have
with my site oannot describe what is happening...I hope for
boot and that I shall come through safely. Until now I have kept

and abourful It is terrible what w are going through in this
?...I was better in France. IS is nice to traval but I have had
and perhaps the war will soon be over.. is dreadful that
Collan

Unfortunately many others too. Some of my

friends had to give their lives for the Fatherland

Frite is still in Mm. He is lucky that he has not had to
the things that have been through. But I do not feel

duty willingly... hope that this campaign will
especially - I- sleeping in the open...

completed in the near future. ... often think of the home - will have
9th

From a military hospital in Sampay

"Unfortunately I mst report that I & still laid up in

Master of Paris and must lie Like this until 9th December when
hope to have the plaster removed. On the 17th of last north I had

first plaster of Paris removed but the bone had not yet healed and
Asster had to be replaced. The surgeon says that my body is too

I have no vitamins to build now tissue. They are giving =
- vegetables, vitamin tablets and calcium and BO w must
for the best. You ask, dear Mother, how far I - from Frankfurt.

about 700 kilomstree from there.

WI do hope you heard the Fuhrer's speech on the marvellous
of our BETTY in Insaia. We have 15,000 aeroplanes,
tanks and 27 ,000 guns. The world has never seen anything 14.100

before. I hope that the American people will not allow themselves
misial by the gentlemen in Washington, especially Roosevelt.

they want be dragged into this - for w want nothing at all

the U.S.A. To want only the Toway to get what he deserves and
TO shall soon have peace in Europe,"
24th House on lesse from the occupying forces in France,
Am writes

OTHIS is now MY Third Year in the army. I should be glad if
came to an and soon. I BILL at present in Occupied Territory.
Mad that I - not in Russia. Sepp, Trans, Georg, and Ladidig
far

Russia. They are will enough able to endure the cold. So

have got on all right. Max and Quetal are also in the army.
are now 7 of w in the army. If our dear father were alive he
be warried about his boys. It is too much of & good thing, when
even have to serve at the same time. Now there is nobody at all
I hope that the war will soon end, and that we shall all oome
safely.
ber 28th, Describing the taking of Tallinn a German soldier
(in English)
"Suddenly the Russian resistance gaye my, and we found the

For of the extremely beautiful old medisoval town practically

1 Indescribable the enthusiam and gratefulness of the

dan population who had & horrible time under Russian domination,
latterly old people and woman had been forced to trench digging etc.

in the German artillary fire. So when the first of our cars and

XXXV

Mana held out. they don't know what 100% food means, hunger

yes them over to us It is getting towards the end here, and

they

not need - against England as there are younger DAD available
is already miserably cold, I am glad to have a roof over BY head

is enough fuel for fires here, that is the only thing the Russians

apart from that things are bad, the filth is terrible, you nearly
in it. I an not in the danger-sone, but often a 'plane flies

dropping propaganda leaflets inviting us over to the beautiful
Let paradise, but no-one is interested.
ober 10th to his Clancee in America,

....I have been in the East since the beginning So far I have

with life. cannot describe what is happening...I hope for

best and that I shall come through safely. Until now I have kept

a and cheerful It is terrible what we are going through in this
?...I was better in France, It is nice to traval but I have had
and perhaps the mr will BOON be over...It is dreadful that
has collen. Unfortunately many others too. Some of my
friends had to give their lives for the Fatherland

..rute is still in 11m. He is lucky that he has not had to
the things that I have been through. But I do not feel

duty willingly - hope that this campaign will

completed in the near future. often think of the home NO will have
especially when I - sleeping in the open...
9th

From a military hospital in Sampay

"Infortunately I mast report that I - still laid up in

Plaster of Paris and must lie 10km this until 9th December when
hope to have the plaster removed. On the 17th of last month I had
Gret plaster of Paris removed but the bone had not yet bealed and
Laster had to be replaced. The surgeon says that BY body is too
and I have no vitamins to build new tissue. They are giving P vegetables, vitamin tablets and calcium and BO w must
for the best. You ask, dear Mother, how far I - from Frankfurt.
It about 700 Hilonetres from there.
"I do hope you board the Puhrer's speech on the marvellous

of - army in Mussia. We have 15,000 aeroplanes,

.000 tanks and 27,000 guns. The world has never seen anything 14 ca

before. I hope that the American people will not allow themelves
misied by the gentlemen in Washington, especially Roosevelt..

they won't be dragged into this mar for - want nothing at all

the U.S.A. We want only the Toway to get what he deserves and
TO shall soon have peace in Europe,"
24th. House on lesse from the occupying forces in France,

Lar Item:

glad

if

This is now Y Third Year in the army. I should be
came to an and soon. I EX at present in Occupied Territory.
Mad that I - not in Russia. Sepp, Frans, Georg, and Luchdig
far
Russia. They are well enough asia to endure the cold. So
have got on all right. Max and Justel are also in the army.
are now 7 of M in the army. If our dear father were alive he
be warried about his boys. It is too such of & good thing, when
have to serve at the same time. Now there is nobody at all
I hope that the war will soon end, and that we shall all come
safely.

ber 28th. Describing the taking of Tallinn a German soldier
(in English):
"Suddenly the Russian resistance gave my, and we found the

for of the extremely beautiful old ediseval town practically
and Indescribable the enthusians and gratefulness of the
dan population who had A horrible time under Russian domination,
latterly old people and women had been forced to trench digging etc.

in the German artillery fire. So when the first of our cars and

xxxx1 -

10 moved in carefully it assessed to the almost a mireals to be
111 alive and suddenly in safety. We all had a lump in our Marchite
H BRN women kneeling in the open before our care and toops

reasing down the froos of the - (172)

ally two letters both dated 80th November,
From the Ucraine

This evening 100 are having a great celebration, our host's

Id is being christened. One of us is to be godfather. Under the
inbovik regime no-one 10 baptised - now that is all being made good."
From a soldier, 22 years old, on leave, who has served in
Biolly, Tripoli, Greece and Grete, where he is abortly to returns
Your President Roosevelt would also 11.00 to play at war.

I shouldn't advise him to do so, for the cost world be great. If he
wants to smash Germany, he has unlueldly walcan up too late. No power

in the world can defeat us or ever separate us from our Londor On the
8th of November, the Puhrer said that the war may last as long as it
likes, the last battalion an this battlefield will be a German one. The
shale of Europe is fighting against Bolshevism, even French and Balgians.
One BY w shall come harae again, victorious, and a new and united Burope
will be in exclutance."

x

RELATION I GERMANY REVIVAL AND

References to the Churah and religious thought in Germany are

not frequent either in letters from the Reich itself or in those from
the rest of Europe.

The few German writers who do neution religion, however, speak

of larger congregations and of a return to priyer.
In & letter to a German pastor in America, a writer from Saxomy
DAYS "How are present circuastances affecting the Churches over there

Are they more alive? Here it is truly a joy. Moundays one has to be

at the Church a Good half an hour before the service begins or one can't
get a seat." (173)

"Hero we pray for the soldiers every day. Every day without

fall I get up at half past six to be ready for the service at seven -

then one bas to get on with one's daily work." (174)

"I an really astonished at the number of moldiers home on leave
the front who have become deeply religious through their experience

the front. Their wives notice the change in theas yes, - has its
points If you could only see how the wounded throng to the

don Table (175)

Where in the past it was more usual to speak of trust in
Hitler than in the Almighty, tooday more and more writers speak
B of trust in God: "You can imagine how much we long for peace,
our adversaries will not have it 80 we must hold out and right on.
are put our trust in God and our Fuhrer, and - know that God will

3

Cornake his own." (178)

"We have the certainty that God is with us and gives our
Hers the strength to accomplish such great things. Noble blood
Lowing but in the fight against evil no sacrifice can be too
₺.° (177)

O.v.L. forwarded from Berlin to J.C.O., N.Y., 28th Nov. 1941.
N.B., Raichanbach 1. Vogt1, Saxony, to K.W., N.Y., 15th 2nd Oct. Dec. 1941. 1941.

O.F., Erlabrunn bei Wursburg, Bavaria to M.F., N.Y.,
A.G.M., Ahrmilen to J.M., N.Y., 30th Nov. 1941.
S., Brandanburg to S.K., Indianapolis, Indiana, 2nd Ost. 1941.
, M.B., Hirschburg to Brooklyn, N.Y., 5th Aug. 1941.

xxyll
From d thaut the Reich, however, people are watching the
of religion in Germany which is being curried on

Itanoously with its exploitation as a political factor.

"In spite of the new emobasis in nasi-propaganda on the
crusado against balshevism, the fight against the Churah is

marted with greater vigour than ever before. This is partly due
the fast that the group of man who have come to the foreground after

flight of Hoss are of the extremist variety whish desires to get

of all Christianity. It is this group which made a move in May

June to ruin the Church financially by the revoking of the law
terming Church taxes. The Church would thus have no way of paying
pasters. But this has been provisionally rejected by the Fuehrer
strong interventions of Churah lenders. Nevertheless
strong
sures have been taken to reduce the influence of the Churah. The
important of these is the forbidding of hundreds of national and

1 relicious periodicals. The moure mas presented as arising from

chartage of paper and labour. But it is in fact a blow against the
Matrah, as the following figures prove. of the existing periodicals 1st

- religious, but of the periodicals recently farbiddan 95% are religious.
- that there are no longer parish papers the pastors buy up series of
old parish papers of other regions and send them round with the addition

of cyclostyled notices about the life of their own parish. Others begin
aircular letters to keep in touch with their nembers. The sermon has
beetine more important than ever. Among the papers which still continue
are the German Pastor's Magazine and the only remaining missionary magasine

- saved after an intervention of the colonial office in Berlin.
Twenty-six pastors of the Confession Church are in prison

(reason givens the excitation of candidates for ordination). Among
them Ammissen, Dehn, Vogal. They are being held by the Gestapo, though
the Law courts consider thea not guilty. They are giving a wonderful
mitness in their respective prisons.
"The Christian Youth movements are in special danger. The
L.L.C.A's in Berlin and Bream have been closed. The ultimate goal of
government policy is illustrated by the action of the authorities in the
neady aqquired regions, particularly the Warthegau (Posen). The Church
in that region is no longer allowed to communicate with the other
The
alurches in the Reich. Collections in the church are forbidden.
with and youth organisations have been disbanded.

"Nevertheless, the Church fights on. Pastors report

that

they

have never been approached more eagerly by outsiders for help and counsel.

It is noticed that the Church has a stability which the world has lost.

The Roman Catholic Church is also under very great pressure. A further
of the great monasteries have been closed. It is remarkable that
monks and nuns keep their VOES in the new conditions by accepting work
factories and offices and doing evangalistic work among their fellowThe very outspoken pastoral letter of the Pulda Conference of
Catholic Bishope, which makes it very clear that the bishops are
Holding, has been read in the Churches, though its publication in
ed form is of course forbidden.
"Many mallar seats such as Christian Science and the
tengensinschaft have been forbidden.

"It is rumoured that before long pastors will be forced to
for five days a week, so that they will only have the Saturday
be Sunday for their pastoral activities.
It is counted that the number of
Buthanasial continues.
is now more than 100,000. There have been individual protests

hose have been of no avail."

(178)

Two reports emanating from Lisbon refer in detail to the
ution of the Catholic Church. The first from an Irish Dominican
n "Since May all the houses of the Benedictine Missionary

tion of St. Ottilien have been closed. In March three ofthethe

houses of the Congregation were taken over by the Gestapoj
W.A.V., Geneva to H.S.L., N.Y., 17th July 1941.

xxxiii
bar-bouse of the DOAP Munich in May. In connection with the latter a

to community offered the monastery to the Army, hoping
gaarantee Sta return to the Congregation after the
Gostapo heard of the offer, immediately imprisoned the War.
11, and allowed saised the monastery. Only Lay-brothers capable priest of who
employees were of the to Raiah remain, in fact they were obliged to remain, manual being

earning a daily wage of 90 premigs. The
and sick have been billeted in mm comments, and 20 monks of
litery ARE have been conscripted. All the monks are forbidden to visit
heir families. Persocution of the Churah in Germany coased for the
Mest
fowinmonths
of the
mar, but bogan again after the first big
Lateries
the West."
(179)
the second from a wall-known Belgian priest, "All members
of religious Ordere serving as obtalaim in the German army have

Marlesed according to latest OIT reports. Here is the inside
Chaplain influen had become steadily greater, particularly

andies of commation Lopely, hated. Basis,

only at the Christian alter, began to reeall long-forgotten
MADE attandance increased a third. Radio Vaticana

April 5g 1942) is authority for the statement that fully eighty-five
- of Head soldiers were asking for a priest when they know they
dying,
of

- of Orders constituted about two-thirds
the Amer Deplains. Whale regimenta will now be without religious

1 and soldiers are farbidden to attend Mass with the styllin
and priorts who are not chaplains are not allowed to say

1 - hear confessions in the any.

Fids now manure again demonstrates how Nasi officials,

will combine to show a certain official respect for religion,

destroy the means whereby religious life might be fostered
developed.

From Germany itself Letters mentioning religious persocution
naturally emoodingly rare and somewhat vague. Only the
following four references have come to hand.

RAIL Ghristian calendars are forbidden for 1942. I shall

sing very - I have read them for twenty years. Also all
Latten Sunday papers have been forbidden since July 1st."(sie).

choose papers my not be printed - ? (180)

The Sountagebiatt my no longer appear. All periodicals
f a velicious nature have had to suspend publication." (181)
FOUR pasters are all called up for wr service, but in
the of that w have a service every fourteen days." (182)
In a Letter from a Repediatina monk witten in Worth am
- the 28th October, in which many passages were blacked out
the German Gensor, is has been possible to restore the greater
a of the following paragraphs

Unfortunately even after a personal introduction to the
ritins in Warsburg, I was not allowed to give religious

trustion in the school. That was a bitter pill to swallow.

reason was given for their refusal. So BY old spiritual father

(illegible) must still go on being arucified alone (illegible)
seen and it does hurt so much. But in spite of this I - not

0) G.G., Lisbon to N.C.V.L., Washington D.C., 10th July 1941.
Centre of Information pro Deo.
00) E.S., Berlin to E.J.I., Ringhampton, N.J., U.S.A., 3rd Nov. 1941.
1) L.E., Dorfmarkingen uber Aalen, Wurtenberg to O.E.,
N.Y.,
10th June 1941.

2) M.S., Morsum a/By1t, 8th Nov. 1941.

xxxix

idle. All the Brothers of wy Order are also forbidden to teach
in schools. This is poor consolation - no reason was Aven to
them either. But do not worry about MO any more. I will got
through somehow." (183)
Religious suppression is progressing apaco in the
Principality of Luxomburg and Aleace:

A 62 year old priest until recently in Luxemburg writes:
"The Germans expelled no from way parish and from my country,

I don't know why. One day the Gootape came and ordered - to
follow them, saying I was to atay three days in the town of
Pault. On the way they took no to a deserted content (Bettingen)
where they took away all my money and later conducted no to the
frontier of the Free Sone. In Lanemburg religious persocution
and manny prevail - one should my no more." (188a)
Aleacer

A Frenchwoman, patriot and Anglophile, writes of

"It is absolutely terrible there now all the Schools

are hatbeds of atheian, with their dieta in German on the wills,

'WE DO NOT WANT TO BB CATHOLIC, BEGAUSE JESUS WAS A FILTHY

J The old and the abnormal are 'suppressed,' girls of only
14 years of age are asked 'to give a child to Hitler. The

soldiers, who risk their lives leaving for the Front, are
expected to arrange that another life is there to replace their
own. And there are advertisements in the newspapers about all
that. Even the young are taught to practice demunsiation, to
such an extent that their parents, fearful as to what their own
children may be da to say, place them in Boarding Schools.
And you ean-imagine for yourself what the Schools are like
But how is it that not a single voice in the Episcopate is

raised against all thist Is is Hitler, who dares pose as our
defender against communism and Holsheviemt And what them is

Hitlerism itself7 And one actually hopes to construct a

NEW EUROPE with such a man!"

No material has oomo to hand from supporters of the
various German Paith movements established in the Reish
during recent years. The programme of Resenberg's National
Reicha Church of Germany, the Grood of the Doutschen Gottpliubigen
and extracts from Friedrich Schmidt's Das Reich an Aurgabe

have, however, been intercepted here in Drim ml to the

United States. Although it is felt that they have no place

in the main body of the report since they mate from
minority goups of thought while here it is attempted to
treat with the reactions of the majority, they can nevertheless
not be ignored, and form the subject of Appendix II.

It is significant and a conseling thought that they
vo left the spirit of the German people unaffected at least
to the extent that no reference to them is recorded as having
been found in any German letter to the Americas written during
the past year.

(183) P.B.K., Worth an Main to M.B.K., Pierro, S. Dakota,

28th Oet. 1941.

(183a) J.H., Puly do Done to A.W., Philadelphia, 26th Nov. 1941.

A
V FOREIGN VITARS:

(a) comparison.
The most recent letters to be intercepted in Bermuda direct from
Garwagay were written about the 2nd and 3rd December, consequently for

all Information subsequent to America's entry into the war fa dependent
- reports from neighbouring foreign sources. Whereas in considering
German mil itself, it was necessary to make considerable allowance
for the restraining influence of censorship, a certain basis for comparison did novertheless exist, since the mood of any large number of
writers, no atter how great their disoretion, must somehow make itself
felt by the very nature of their omissions or the extent of their
hapes. Foreign comment, however, as any analysis of the forecasts
and spoculations of the past year would roveal, is almost boundlessly
mroliable. On the other hand there is doubtless some element of
truth to be gleaned from a oonoensus of what might appear to be the
wildest rumours, while the more reasoned and considered accounts of
conditions in Germany written by Swedish or Swiss business represent-

atives or observers whose reliability is known from the past, form
a valuable source of information.

In order to correlate as far as possible the now bagis for
comparison with the old which it must now replace, it will/necessary
to go back at least a month to six weeks to 800 what letters from
neutral countries were saying at a time when mail from Germany was

still available with which to compare them.

About mid October, when letters from the Reich were full of
optimis inspired by the vistories on the Sea of AEOV, people in
Switzerland were writing
"Cas hears from many sourced that the Germans, or rather large

numbers of the German people, in spite of all their military successos,

are not confident in decisive final victory. (184)

"About life in Germany, I hear that people there do not starve,
(185)
but life has lost every charm...
"One has the feeling that a great war worriness exists in
Germany." (186)
The foreign representative of a Swedish electrical concern
sayes "I - sent to Germany in the Spring - we have two branch
companies there at Piratemalda and Prankfurt. The Germans were
not enthusiastic, but also not unduly depressed, and there was enough
food there. I did not see any bomb damage, but they told - that
there was a lot of destruction in Cologna, Eason and the Ruhr etc
Streden has been able to keep out of it till now, partly through luck
and partly through a devilish preparedness. You wouldn't recognise
(187)
our army now....."
Im October there were elightly fewer rumours current regarding
internal unrest in the Reich and friction between the Nasi party and
the army than for some time past. On this subject a comparatively well
informed American observer writes from.Lisbon "You heard the report
of course emating from the Moseow radio that Kimmer was under arrest, minute

There is nothing to substantiate it. The German press up to the there
spoaks of what Himmler is doing etc. However the goesip is that
me a showdown between Himler and Goering who hates his guts, and

Goering is now back in favour while Himiler is taking a back seat.

The German Eastern advance is supposed to have ereated more problems

of policing than Himmer could handle, while the Luftwaffe soens to
again be steadying the show. I don't know how much of this is credible,

but it soons certain that Hitler is in a highly erratio state of mind
and aots impulsively."

(188)

(184) K.R., Basle to C.H.J., Princeton, N.J., 18th Oct. 1941.
(185) J.W.E., Zurieh to H.R., Los Angeles, Calif. 25th Oet. 1941.
(186) A., St. Gallen To A.P., Newhaven, Comm., 25th Oct. 1941.
(187) K.R. Gobesborg to T.M.L.R., N.Y., 23rd Oct. 1941.
(188) S.L., Lisbon to O.R., N.Y., 17th Oat. 1941.

x11

In September rumour as to the disgrace of Goering was rife.

"Eo is said to be in Isohl, supposedly drinking the waters but it's
not quite that. there WIS a slight disagreement about the Russian

campaign." (189)

"Recently one has been hearing the wildest rumours regarding
discension betwoon the Party and the Army in Germany. Although these
reports are to be received with extreme sceptieism, a certain tension

does soon to exist and it only remine seen which way this will

affect
the course of the MT and In my ease wo are
rockoning on a long mar." (190)
The worsening of morale which because so apparent in November

Letters from the Reish itself is reflected in a variety of different

ways in neutral comment.

"Heard some good nows yesterday from someone who gets a let

of information out of Germany The Germans have already lost.
Opinion in the Reich pube their own losses at 1g million killed and
severely wounded. Plans were made to be in Moocow on July 15th.
No water in Smolenek - all has to be transported. Noticeable dooline

in support for Nasi party. Flood of petrol in Britzerland now.

It is earing from Mannhais seld to Buitserland because 19 mas all being
destroyed there by RedoP. and they had to transport it elsewhere, I
don't know how tree all this is but from the same source w heard
smotly - which day Greece ma to be invaded and Russia middle of June

depending - how quickly the Greek went

(191)

*Prom all that truvellers tell us who como from the Third Beich,

the lengruffering of the is slowly but surely earing to as end,
so that one oar almost certainly rookon on something happening before
(198)
mark autum."

A Buiss Schoolmater serving with the Swiss army until recently

electioned at a frontier post on the Rhine at dnau writes ...

On

the other side Austrian moddlers were also keeping pard. AS night I
used to - - the bridge as far as the Spanish Enights. We sometimes
had a talk with the Germane. There are certainly some famatical
follow among them still. IV's astonishing how they hold to their
Melf. Others were quieter and spoke like w did about peace." (193)
with the obcention of mil direct free Germany in December, a
greater value of Swiss and other neutral mil ma naturally ammined.
From the increased foreign material thus provided, even after a considerable proportion of is has been written off as remour or wishful
thinking. 14 would appear to be maistainably clear that German morale

has a further appreciable deterioration,

(aa) The Bwise Medical Mission to the Russian Front.
The most interesting information somes from a Swiss medical

master of thirty five,doctors, mostly surgeons, which wont with
morking personnel to the Eastern front. The mission was headed by
two Swiss doctors, said to be moteriously pro-German and it my
reasomably be supposed that the other numbers of their staff were not
violently projudioed against the Third Reish, otherwise they would
soaroely MAVO volunteered their services in such a capacity.
Information derived from this source my consequently be regarded as
comparatively objective and reliable.
"I hear from a Swiss doctor friend of mine, who has just ocmo
back from Smolenck where he has been with the Swiss Bod Cross that the
German Themselves have discovered that their soldiers have been underfed

far tee long a time to stand up to the Russian
(194) Winter - when they break
a bone, 10 simply von't mond again."
(100) L.F., Surich to M.M., N.Y., 18th Sept. 1941.
(100) H., Basle to E.T., N.Y., 5th Sept. 1941.

(191) D.G.S. Davos to P.S.E., Bushaman, Michigan, 18th Nov. 1941.
A.G. Basle to R.S., Havam, Cuba 26th Nov. 1941.
(198) (198) L.B., Appensill, switzerland to C.B.B., N.Y., 13th NOT. 1941.

(194) J.J.L. Zurich to J.M., Cohasset, Mass., 15th Lec. 1941.

All
"We have now received the first reports free private sources as
how horribly the people there are dying," writes a dooter from the

larness Oberland, "How the Swiss Doctors are doing nothing but
putating day and night in incredible dons and damp cellars, terrible
ands and horrible mitilation; how the German soldiers are dying like

Les thanks to the dreadful conditions and lask of (196)

A Swiss professor writes, "We have had a report from a high couree
of the Swiss Red Cross Mission that the greater number of the sisters came

back.. They could not stand it on the Eastern front. The hospitals in
the interior my be good, but those behind the front are indescribably
disorganised. Operations are performed without anesthetics. It is pure
butchery. The lightly wounded soldiers are lost because the most nocessary

medical supplies are lacking in the terrible cold." (196)

Many other letters tell of the aoute shortage of Doctors and medical
supplies OIL the Eastern front "To a thousand sick mon, only one Doeter."

"A Swiss Red Cross Doe tor reports how he travelled OH A German train with

600 wounded there were only two nurses and one doctor. Thatma's go on
much longer.' The severely wounded are attended to at the earliest after

four days, generally with their wounds still undressed', 'mis is working

as Red Cross assistant at Erfurt, she spoke of a hospital train direct
from

the front.. for 14 days they had been neither washed nor bandaged.'

Other accounts from Switserland, Prance and Holland tell of the
ghastly condition of the severely wounded and how they are transported in
night trains through Germany on the occupied Territory in order that home
morale should not be affected, "It is said that thousands of German

soldiers have arrived lately by the They have their hands,

feet, ears, noses or eyes frosen and are indeed wreeks of humanity
The nurses themselves are horrified. Poor German youth".
(197)

"Lately the severely wounded from Russia are arriving near Geneva

on

French territory, most of them have an arm or a leg freet-bitten - or

are md". (196)

A number of Swiss hospitals and sanatoriums are reported to have
been taken over by the Germans to accommodate patients from the Black

Forest, in order that the hospitals there should be cleared for the wounded.
Lunatio agylume and homes for Abnormal children are mintained by two writers
to have been cleared by outhanosis.

An Englishman living in switzerland writeen "A Swiss Diplomat Just
back from Russia where he had been on a mission told friends of mino that
the Germans were shooting their wounded in imasia as they cannot cope with

the vast numbers if a - is only slightly wounded he is patched up and
then sent back to the firing line, others are shot on the spot". (199)
The latest report to be received on the subject of the Swiss

Missio is dated January 10th from Zurich. It saysi

"Recently I spoke to someone who had interviewed a member of the

Immission of doctors which has already returned from Russia. It must
ivo been really tightful. This man had thought he would be able to use
idera war surgery there and extend his own knowledge, since the Germans
ino the reputation of being so very modernly equipped with the very

test achievements in this sphere. But nothing like that ms possible,
ply because the most necessary things were lacking. Supplies were
concentrated on weapons and mutions that field hospital noods were

satisfied. There - nothing with which to deaden pain. He tells

a dooter stood in A room surrounded by 15 shrieking soldiers, whose It
me and legs he had to axputate while they were fully conscious.
is enough to drive one arazy.. The nurses often wanted to run my
it they stayed in order that they might at least do what they could to

leviate the terrific sufferings of the soldiers, though often such
Ap could only consist in comforting words. When I imagine the cold,

the
195) J.F.V. Repan Jura Bernois to O.R.W. Davidson, N.Carolina. 7 Dec. 44.
B. Ostermundigne, Switadrland to R.B.B. Oklahoma City, U.S. 6
197) M. Pgu, Basses Pyrennees to H. Buenos Aires, 19th Dec. 1941
198) A.B. Geneva to Aah., N.Y., 15th Doc. 1941.

Doo.

196)

(199) A.A.,D., to K. Needham, Mass, 8th Doe. 1941.

41

x1111 -

which sick and wounded naturally feel worse than well people, I oan
easily understand that a great number of German soldiers who to off on
leave (e.g.
to France)
candt
suicide."
(200)do not want to go back again and prefer to

(111) Morale of the Troops
Such reports are probably exaggerated, but they evidently

contain a substantial element of truth. Other, perhaps less reliable

sources confirm the terror of the German troops on leave in France
lest they should be sent back to the Eastern front.

"More and more German troops have been ooming to France in the

last taro months in order to recuperate They come straight from the
front, completely exhausted and in rags, without having cade any
stay in Germany. Only from France do they get leave for Germany.
"The morale of these troops is not good. From time immemorial
the Germana have drunk a lot when they have gome to France) but these
are thoroughly drunk almost every emening. They speak badly of the Gera

occupying troops in Prance) and oall then shirkers and fight them.
One often hears that when soldiers from the Eastern Front come into
an overorowded restaurant they simply throw out the occupying soldiers P sen
They also often have rows with the German military police. In
private conversations with Frenchmen these soldiers say openly that
Russia means hell for them and they are terrified of being sent there
again. There have often been suicides among the German soldiers before

return to the Russian Front. (For example, I have positive proof of thi
from Poitiers). Very many 08.500 of lack of discipline towards the office.
have been encountered among these troops. On Dec. 5, 1941, 62 soldiers

were shot by their German leaders on account of breach of discipline in
Bocanoon where more than a divisions of soldiers who have come from
Russia are quartered. Those soldiers had been given the impression

that they would stay three months in France. Already after three weeks
were informed that they must count on returning to the Eastern Front in
near future." (201)

By

The above account emanates from an unknown source and must oonse ent

be received with the greatest reserve. There are, however, a number of

other references, the reliability of which is equally uncertain to the
reluctance of German soldiers to give up their lives on the Russian
battle fronts. "The German soldiers oannot be fozoed out of their warm
quarters in Russia - they prefer to be shot than to freeze to death.
They know that they oannot go fifty metres without Cetting froatbite." y:02),
( "I heard from a Red Cross Sister outside St. Petersburg they sooned to be refusing to advance." (203)
"I saw a usually well-informed friend shortly before IV
departure from Zurich. The news that winter had forced the interruption.
of the offensive in Russia before the already so long promised
strategical point had been reached, appears to have had a very strong
paychological effect in Germany. In reality the situation at the
front is said to have been that the soldiers, without actually
autinying, refused to carry out the orders to attack, as one night
without quarters meant certain death - there was therefore no alternative
but to inform outside sources of the suspension of operations. If at
the 86.00 time the Japanese original successes had not been rade known
there might have been more serious repercussions) thus the morale was
once more 'saved,' but the occurrence shows just how uncertain this

morale has become. (204)

(200) N., Zurich to .., Elmhurst, L.I., N.Y. Dec. 10, 1941)

(201) R., Zurich to E.P., N.Y. Dec. 29, 1941
(202) N., Zurich to H.N., N.Y. Dec. 31, 1941

(203) M. S-F, Zurich to E.K., N.Y. Jan. 6, 1942

(204) D., Versy, Lausanne to W.D.K., N.Y. Dec. 16, 1941

xliv

(1v) Morale in the Reish
Both Ribbentrop's and Goebbela' speeches of November 26th
and December 1st respectively DATE rise to some adverse speculations
regarding German morale, in Switzerland.

"The latest reports from Germany do not lead one to believe
that a so year war could be borne, as Ribbentrop mintained, some

time ago. In any also, it was exceedingly stupid of him to stir

that memory at all. Depression is increasing over there. Goobbels' up

article in Das Reich' was most illuminating.. said, more or

loss, that it was not so much a question of when or how Germany would
wis the mar, as of whether she would win it. Some days ago Goebbels
said in his spooch in the Akadenie, which made a distressing

impression, that the war bulletins fulfilled a purely psychological
function, as propaganda in favour of which the exat facts could
be dispensed with. That is to say, that distrust of the news
has reached such a point that they cannot but admit that the
reports are imacuurate. Moreover, he permitted himself a
annieal reflection upon the short memories of the Germa people, and
of the upper classes in particular. And then he admitted, now that
he had soon that things were going wrong, that 'Blitskrieg' was
a senseless word." (208)
The following observation made by a German WOMAN (Aryan)

witding from Weinfolder is also interesting in this connection.

"Zesterday Van Ribbentrop said Germany could carry on the war for

so years. If only they wouldn't talk so big." (206)

A Briss banker, generally well informed, but a Germanophobe,

witeou "The news reaching us from the Eastern Front is uniformly
frightful, the lesses are still greater, and the nood in Germany
is correspondingly bad....No hear of mutimies by non on leave
and demonstrutions - the arrival of hospital trains. Interesting too,
is the explanation of Goobbols' pessimistic speeches, i.e. that the
shale propaganda from October 2nd - (according to which the
final battle had been fought and won) had been released by Press Chief
Notrich against the advice of Goobbels. Goobbels and Dietrich are

- said to be warm onemies." (207)

A flood of Pumour was naturally lot loose by the diamineal of
Von Brunchitech and You Book but it is of comparatively little interest
since name of the reports which have come to hand soon to be based on
inside or reliable information of any kind. A member of the Executive
of the Eionist organisation writes from Geneva: "In Berlin there have
leas all serts of Pumours during the last weeks. There has been some
lakful thinking of peace with Russia. Some Germans hope that there
111 be no final decision and that the mar will peter out. Persistent
would have it that v. Brauchitach, v. Book and me or two
ther generals who wanted to SATE the army and to dig in 'somewhere'

14 foree Hitler into the background. This story was widely believed
seido and outside Germany. To those who really know Masi-Germany such

11 sounded fantastic: Mitler and his Party and Gestapo and 1 million
at officiale and s.s. Guards will always be stronger than a handful of
morals with nothing but their Prussian lineage behind them." (208)
There has been much comment too about the growing importance

the S.S. and of their alleged poliey of erecting pill boxes and
strolling corner sites and strategical points in the cities and

For towns. The 86.00 Swies banker (quoted above) writes on this
jost "An interesting development is also to be noticed in German

politics. It is remarkable that Hitler now always addresses

-

07
108)

D.B., Zurich to s., Pacific Palisades, Cal. Dec. 10, 1941
M.M-L., Weinfolden, Switserland to H.H., Detroit, Dec. 1, 1941
W.B., Zurich to G.T., N.Y. Dec. 15, 1941
K.L., Geneva to A.L., N.Y. Dec. 22, 1941

xly

his appeals to the soldiers of the army and the S.S. arm. There
is a sound reason for this. The S.S. is being assigned an evergrowing role. Till now the S.S. had all weapons with the exception
of planes. Some time ago Hitler had put forward the demand for a
special air force for the s.s. This had always been refused by the
Generals. Now he will be able to carry out this project.
In the large German cities strong points are being constructed
everywhere for internal defence. In the larger Berlin quares forty

places are known where the collars have been converted into fortresses
commanding
the(209)
streets, It looks as though anything might be
brawing there."
Another Zurich writer, hitherto unknown, but who appears to

be well-informed, discussing the same question saya The

spirit

of the people is depressed. There appear to be shortages of everything

(foodstuff are not so bad - for this the occupied countries are
allowed to go hungry). Lubrhoating oil and bensine will not last
very much longer. ....I do not believe in all too speedy revolution
by the Germans - the S.S. is too strong and is always getting
stronger. It is true that the Generals had the pluck grudgingly to
stand aside for the time being, but for a revolt they lack
'civilian courage.
(210)
Concurrent with these reports are rumours of sabotage

in Vienna, of Austrian officials being replaced by Germans, oriticism
of the Naxi regise and of numerous deserters from the German army
crossing the Rhine into Switzerland between Schaffhausen, Singen and
Basle.

"Last year when the Siemens workers demonstrated over wages

and conditions of work the ringleaders were shot, this year when
demands were made for a rise in wages and better food, they were at

once granted. In spite of all denials, it oan be assumed that the
Gostapo are taking precautions against internal discontent

Every evening there are raids for deserters in hotels and innej
the number is increasing in a disconcerting way - whoever gets out of
Russia whole, does everything possible not to have to return to the

front. The crossing of the frontiers by night over the 'green
frontier' near Singen is also quite frequent, so that in the station

restaurant at Sohaffhausen 'extra breakfasts were of ten served

in readiness for the morning." (211)
References to the number of deserters esoaping to Switzerland
are extremely vague and contradictory. "Yesterday 80 soldiers

and the day before 180 men with their officers crossed the frontier near
here," writes d Swiss from Basle on January 14th.(212)

They dome at the rate of dosens a week." (213) *Ke hear that
Gorman soldiers have been coming over here in full uniform, even

officers, but we do not trust them so they were interned in Basle. (214)
<<< deserters when they arrive are completely in rage, no ooats,
"(215)
war socks, no shoes. The people in Stein are collecting for them

I

In substantiation of Swiss hopes that unrest is growing within
Heich three letters aite instances of Swiss travellers getting
elved in minor riots or visits to Germany. The first two seem to be
Terent versions of the same story "A Swiss who was visiting Berlin
business returned with nic arm bound up and told how in oinem
Mot ddenly broke out during the showing of a news real. Someone
led out 'Down with the Government, the police opened fire and a

let hit him in the arm...."

(216)
2

) W.B., Zurich (letter posted in Lisbon) to E.B-L., Riverdale, N.Y. Ja
to K., Zurich to S.K., N.Y., Jan. 23, 1942

3) W.M., Zuriah to x. D-K., N.Y. Jan. 17, 1942
2) H.S., Pasle to W.S., Lim Peru, Dec. 14, 1941
(s) Unsigned, St. Gallen to A.B., N.Y. Jan. 18, 1942
14) K., Andelfingen, Switzerland to H.D.K., San Antonio, Tex. Dec. 24, 1
15) A.S., Arosa to A.S., N.Y.' Nov. 15, 1941
(26) D.B., Zurich to S.M., Los Angeles, Cal. Oct. 19, 1941

14

x1vi

"A brother-in-law of my husband's sister, Professor of Literature,
has received a visit from a -- from Berlin whose hand was bandaged.
Upon being asked the oause he replied that he had been wounded in
a conom in Berlin. The news review was showing pictures from the
front when the voices from audience are said to have called out:
Something else: Peace.' It appears that the police intervened and

fired on the crowd." (217)

"By the way, if there are no distrubances in the Reich, how
comes it that a man ooming from Germany who had been on business in

Stuttpart got a rifle shot in his arm when passing through a street
in which German wives and mothers demonstrated for the return of

their non from Russia, got fired on by the police." (218)
While there are a number of moderate writers who view with
the greatest sceptisism all account of internal unrest and foreoasts
of Laminent collapse in Germany, there is little divergence of
opinion regarding the intense state of depression which prevails.

"Born from the North is that the mood is very black indeed." (219)
"I hear that in the last four weeks morale has seriously deteriorated." (220)
"No frequently see people from Berlin and other parts of
Germany. Reports are conflicting but on these points all people seem

to agree there are deaths in every single family, so many in fact

that it is not allowed to wear mouning. It is 'verboten now as

before to speak of the war but in certain parts of Germany there is
open oritieism, and everywhere the old unbearable 'morgue'
(221)
pride and uppishness, has given place to meary anxiety..."
"My housemaid, a German girl, was allowed to go home for

ten days to 800 her brother on leave from the Russian front. She
came back rather depressed - not a home without mourning. She

said she had never soon 80 many people crying in the streets. (222)
"From information received personally I gather that news from
the Reich is very bad, but it would not do to count on it too much.
The capacity for 'going through with it' has been brought to a fine
art over there - handed down through generations - there is nothing
anybody can do about . (223)
(v) Food, and Clothes

There is some indication that the food situation in Germany,
hitherto corparatively satisfactory, has recently undergone a slight
deterioration. A German girl writes from Switzerland on January 1st:
"My parents complain quite unreservedly in every letter. At Christmas
Shere WILD literally nothing to be had - not even books or
...Father has nothing to smoke and they complain bitterly
shout the food. This shortage in Germany is shddenly very
priceable, and this I know from all letters that come from there." (224)
letter from Germany routed via a Swies intermediary would appear

support this view. "We still have food to oat,(225)
but it is no longer

ed. Natural ly everything else is short

The olothes shortage has also become increasingly aoute. AS
2 back as last winter, many people were writing to their friends
North and South America asking for any old dothes or shoes

could sparej this year there has been no increase in the
then rations, on the contrary it has been the German people
inselves who have been asked to give up every mara garment
by oan possibly do without to send to the troops in Russia.
7)

A.H.W., Geneva to M., Washington Dec. 22, 1941

(a)

S. & Co., Lensburg, Switserland to Dr.P.C., San Salvador 1941
15, Dec. 18, 1941

19) M., Zurich, to B.S., Cleveland Heights, Ohio Dec.
o)
S., Lisbon to F.C.S., N.Y., Feb. 4, 1942
11)

B.L., Lausanne to B.S.C., Buenos Aires, Dec. 21, 1941

Ba) M., Basle to C.W., Montelair, N.J. U.S.A. Jan. 11, 1942
as)
L.N., Zurich to H.P., Los Angeles, Dec. 20, 1941
(34)
K.E.H., Hasle to M.O., Elmhurst, L.I., N.Y. Jan. 1, 1942
25)

M.S.N., posted in Morges, Canton de Vaud, Switserland to
R.B.P., Kansas City, Jan. 19, 1942

xivii

*To be sure from the scanty news which we get through friends
and from chanee remarks things are not going well, hunger
and cold are seriously felt and everyone must sako enormous
personal secrifiees. Clothes are being collected now even down
to socks, Cloves, and woollen underolothes. Everyone who has
two sweaters
must give one
up, this also applies to blankets,
conts,
everything."
(226)

"I WILS there when weellen parments were being collected. It

is umbolievable the willingness with which people a.w. (227)

In Britzerland, too, collections have started for warm
slothing for the Germa troops in the East, a fast of which a member

of writers take an encooidg poor via. "Do you know they

have already started collecting over here - and Switzerland has
boam stupid enough to grant an export permit. I am furious." (228)
(vi) Pear is Commany
As the mood in Germany blackens, repervussions are

beginning to make themselves felt in the neighbouring countries:
approhmistin La growing in Burope. Within the Reich there is
some'ovidence suggest that the former staunch resolution of
the Bornan people Le giving place to a spirit of desperate
resistance in which fear plays as important part.
As unstinched observer of the Chineeo Embassy writes from Geneva:

"Information reaching this country from inside Germany
indicates signs of despondency, verging on desperation, in the morale
of the Gozara people. This is brought about partly by the
outlikelo in the East and to a greater extent by the entry

of the United States into the war - the side of the Allies.
Searcity of food, the mounting tell of less on the Russian

treat and MAP weariness provoked by the decliming prospects of

a Gerean viotary are telling on the people's norves. Despite
all this, the Germa people contribute hovever reluctantly
all they have towards the par effort.
"But the morale that keeps people going is as unhealthy

- based largely - fear - fear of the consequences of defeat

and the torrent of revenge that they expect will sweep over

Jeremy from every quarter of the occupied territories. It is
a

morale backed up by desperation which tells the people that,

explanant it may be, there is no going back

# is either vistory or annihilation."

(226)

889
(aas)

(229)

E.B., Basle to R.S-B., Bandoong, Java, Jan. 7, 1942
A.E., Davos to A.K. Santos, Brazil, Jan. 15, 1942
R., Lastaquela, Switzerland to H.L.H., Forest Hills, L.I., N.Y.
Jan. 14, 1942

(289) P.C., Geneva to T.B1 Soong, Chinese Minister of Foreign Affairs
Washington, Jan. 9, 1942

- xiviii The correspondant of the London Times writes from Buricha
arime
may have committed. the mbale German natio now fools that 10 mist stand

#Popular fear is now the last bulmark of Hilarian. What

shoulder to shoulder as long as hope remains. (250)

A University professor and a parson write mish in the - strein.
The first, after telling of the harress of the Eastern front as related to
him by a member of the Swins Medical Mission says from all other

reports which are sungeled through it appears that the Geruana - even the
most rational - are agreed that vistory must be won. The vengeance of the
Poles and
all other subjugated
would
be preferable
to defeat." peoples
(231) would be BO frightfuls anything

The parson writes, "Land was actually back in Germany in

December There are indeed people here who propheay an early collaped
for Hitler in visu of the Hussian successes. I cannot believe in is
though. Besides abat Lani BOX in Germany does not indicate any such

thing. Everything Hitler has done has been done in the name of the
German people and even those who are not pro-basi are ready to put

with everything in order not to lose the - and have to endure the
vengeance of the plundered and subjugated peoples of Burops." (252)

One of the last letters to be received direct from Germany,
written on December 3rd, to A nauber of the German Consulate in New York,

who is severely chastised for his lack of activities and faith in German

victory, is of considerable interest in this connection. The writer

is evidently a prominant Mast - 45 years of ago, number of the N.S.D.A.P.
since 1925, a district speaker, Senator, Burgansister and President of
the Brenen Brangelical Community.

"You are autonished at my optimism? Well, I in I

turn

as

automished that you should bel Now, when the whole situation can be

seen in it true perspective. That only Germany san win this - is

evident and can be proved solely by asking the questions how do her
opponents propose to win? Because, to ask this question is to answer

it - negatively. know that they are olinging to the hope of starring

us out, of the blockade, that time will wear down our resistance. What
stupidityl Here in Germany everyone knows what is at stake - all eyes
have been opened by the hard school of the years after Complegne and

Versailles - a schooling which has given us all hearts strengthened

against all sensitivity. Do you not also think that in this fact lies
the best guarantee of victory? (233)
An American writer tells of an evening he spent in Zuriah with
important German industrialist Pubour I have known for many years.

- an officer in the last war and is entirely patriotic but be

ates Hitler and all his works. of course we taliced politics, andand mon
asked him why he supported such & government. He said, II,
W class, are not interested in having Germany hold foreign
ritory, but if we kick Hitler out and ask for peace it would mean
w would be crushed under another Versaillee - and rather than

we will fight on to the and. .....I tried to persuade him that 1f

Masis were eliminated at this time Germany could expect to obtain
soent place that would enable his country to survivo and prooper.

- incredulous, speaking of Churchill's hatred of Germany etc. but
ally stated If what you say is based on fact, then my advice to the
Les would be to make that unmistakably clear in their propaganda.

they do that then Germany will in a short time be in a position to
their terms.' (234)
1) Apprehension abroad.

The desperate mood of Germany has not left the rest of Burope

rely unroved. Even in Switserland, where hatred of the Eitler

Am could scarcely be more intense, and where the majority of

0) G.H.M. Zurich T.A.L Melbourne. 31st Dec. 1941.
B., Osteroundigen to R.B-B., Oklahoma City, 8th Dec. 1941.
E.B., Berne to I.G., Brooklyn, 15th Jan. 1942.
O.H., Berlin to R.B., N.Y., 3rd Dec.
1941. to H.G.MoC.,
Switserland
4) G.McC., Porta di Ronoo,
Tesain,
Philadelphia,
8th Jan.1942.

xlix writers rejoice over each reverse which leads it further to its doom,
a number of voices are beginning to make themselves heard which speak

in amdious terms of the unoertain future. The following extracts are
taken from letters written within four days of each other, about the
beginning
of the New Your when such fears first began to find ary
frequent expression.
"Domination of the world by the Anglo-Saxons - what WU really
had before - would still be the best, but German douination of Europe

would be better than Russian; that would be worst of all. How such

has one been deceived as to conditions in Russial One expected
a collapse of the Bolshevik Regime and now it is clear that, as
& people, they are satisfied with it because the lower classes are
better off now than they were under the Caars. The earnest appeals
of the German Fuhrer made A great impression everywhere." (235)

"That Germany may perhaps go under is distressing, even though

w
were
afraid
of a German victory. But we dread Bolshevian even
more
than
Nationalism
(236)

"Now America is in the war too - I an wondering how it will
end. From what I hear the German people are no longer content.
But what can they do? They must endure and hold out, otherwise the
all

Russians will overrun all Europe. I do not believe that would be an
better for the world. No must just hope for the best." (237)
A Dutchman writes from Switserland: "Unrest is growing in
Sweden and Spain. Here we are afraid of Communism. Refugees fruc
unoccupied France speak of the same thing

"The situation in Holland is extremely serious. The spirit
of resistance, all that popular wit, signs such as ZOZO and tyl, have
now disappeared. People only see the serious side now, and that it
my last a long time .D. was in Germany visiting various families.
Things are decidedly better there, as regards food, than thay arc in
Holland, and according to him, there is no question of collapse.
He WILS among people who were not Nastional Socialists but in truly

Christian families. The people there are chiefly concerned that
Germany should survive." (238)

YL. CONCLUSION.

Reverting to the imediate scene of German toil an suffering
it is fortunate that a small number of letters written in Germany but
routed via neutral intersediaries continue to be intercepted in

Bermuda.

Of such letters received during the last month, the following
have been selected as representative:Wurttenbers, 18th Dec. 1041.

"Surely with God's help the war must be drawing to an end.

it doesn't look like it. Just imagine - on Saturda/ our Church

a were taken down. It bakes one's heart bleed. just WE Co
urgh all this for a second time. How many brave soldiers have
dy laid down their lives and how many more must Co." (230)
lborg, 20th Doc. 1941.

"The nar has taken on another aspect, our hopes that it would

this year did not materialise. To now hope that the and will

E.E., Zurich to K.7., Boston, Mass., Srd Jan. 1042.
G.S., Reinach Aargau to E.S., Bucnos Aires, 2nd Jan. 1942.
H.S., Basle to C.O., Hainerport, N.J., U.S.A., 31st Dec. 1041.
H., Glion, Switserland to A.B.H., Danpit 31st
by Halong,
Java,
Dec. 1541.

(299) F., Rodt, forwarded in Lisbon,13th
to Dec.
S.S.,
Pittsburgh, Pa.,
1941.

oomo
(240) quicker through its vast extension to the Pacific and America."
Munich 31st Deo. 1941.

Since 1983 life here has been anything but a paradise for us

all. And now since 1939 this appalling wart our soldiers forood to die
in Russia - and for what? The good God will yet condean those who are
guilty over and over again of such massacres - the hundreds and thousands

of people in the occupied countries who are dying of hunger God will
never pardon this, for are these not also human beings who are only
fighting for their own fatherlands?" (241)
Preedon 8th Jan. 1942.

"Barbal want off skiing on the second day of the holidays
with friends. they were very lucky as on the 26th it snowed heavily
and it lasted over ten days without a thew. Then it all came to en
and anyway as their skis had to be given up to the Army. Our spirits
are generally speaking very much below the mark. Quite naturally
things have been made very Moony by the overwhelming events in the war
and by declaration of war with the United States." (242)
No German address 20th Jan. 1942.

"We vish that the had wings BO that the cold winter would be
soon past. The bad Lines make the winter doubly hard to bear but the
hope of better times helps us to bear it. Wo are glad that Christmas
is over and that w are working again - work helps one over many
things." (243)
Mastab 21st Jan. 1942.

WE feel little of the war itself, here in Munich. Occasionally
a pointless air-raid alarm, but nothing ever happens. The food
situation is also well under control. If one sometimes fancios a little
of this or that, and cannot get it, that can hardly be called wr." (244)
Suppline 23nd Jane 1942. to Milbao, mis-sorted into a New York mailbag

The great struggle in which Germany is engaged, for her
exclatance and her position, brings all parts of restrictions on us too,
who are not at the front as soldiers, but we bear then all gladly and
millingly. Everyone in Germany today know the reason for these
restrictions, and not a single person doubts that Germany must and
will be victorious in this fight which will give us a new and better
Sureps. We are not fighting alone, almost the whole of Aurope is with
us, including Spain's Blue Division which is distinguishing itsalf more
every day." (245)

22nd Jan. 1942.

There are tearstained faces everywhere - it is quite
unbearable - everywhere people are in mourning." (246)
The mood of the German people has evidently become
increasingly sombre and grim.

The Colombian Charge d'Affaires in Barlin analysing developments

in German morale in September last wrote as follows:- "There is no
doubt that the jarity of the German people were against the war and

(240) E.N., routed via Zurich to E.A.N., Tapachula,
Chiapas,
Hexioo,
20th
Doc. 1041.
(241) A., Munich forwarded in Schaffhausen to V.V.,
21stFort
Dec.Lee,
1941.N.Y.,
(242) J., Dreader forwarded in Barcelona to B. Hoboken, N.J., 8th to Jan. 1942.
(245) Unsigned, no address, forwarded in Kreualingen,
T.S., 20thSwitserland
Jan. 1942.

(244) G.C., Munich, forwarded in Montreux to S.P., N.Y., 20th Jan. 1942.
(245) F.M., Berlin to J.M.) Cadis, mis-sorted in New22nd
YorkJan.
mail
bag,
1942.

(248) H.R., Purren, forwarded in Zurich to P.N., Ithaca, N.Y., 22 Jan. 1942.

- 11

never expected it. The various bloodless annexations had convinced

them that that would continue indefinitely until the geographical situation
of Germany in 1914 had been re-established. I sincerely believe that
this WIS not only the belief but also the ambition of the entire middle
and labouring classes. Nobody suspected what the governing classes were
really preparing and which has been confirmed by the happenings of the last
two years. Onee it had begun, the government, conscious of the
unpopularity of the war with the people, made every effort to show that
it had been forced upon than, but that in any case it would be extremely

short. Switching public attention from one field to another with one

military triumph after another, the government has been able to manipulate

events so that it is not possible to think out any given national
situation at any given moment to a conclusion, for immediately military
operations como to an and there is opportunity for a little analysis or
reflection on the part of the people, there comes a new movement or
a new campaign, unfortunately always followed by victories, which

distracts public opinion completely. It is superfluous to add that the
incouparable discipline of this people has been both used and abused."
Reading through the great volume of material from Germany
collected by the Censorship during recent months, chance remarks dropped

here or there by different writers lead one to reflect on the truth
which may lie behind this theory.

"We have already had two years of war. libe would have thought

of that two years ago? It is a good thing we did not know it, or we

would have been desperate long ago. Hope keeps us going. re must
end sometime." (247)

"It has turned out all BO differently from what we thought,

hasn't it? But still, the and will still be the same." (248)
"Wy working day begins at 4 o'clock in the morning, and the

hands of the clock creep slowly round till 10 o'clock at night, by

which time one is wear/ and stupid. Then when I TO to bed, thoughts
of the boys surge through FV brain and will not let 20 sleep. One
just can't be happy any more. One can't bear to think - 1⑉ (249)
The following remarkable letter started on December 1st and
eventually posted in Basle on January 9th was written in Freiburg in
Breiscau by a German over 70 years of age to his sister in Washingtons
wwo live again in the period of long winter evenings and
all fissures, all cracks in windows and doors which are on
darkness; the exterior of the house must be filled in. Whoever allows a stick glimar

of light to shine outside is punished and branded, the police
notice to the door 'Black out offender lives here,' now and then
a punishment is by imprisonment. The darkness is such that elderly

folk seldom go out after dusk. And SO one retires inside one's the happy four

walls and escapes into thoughts of better times, recalling
period of youth and thinking about the uncertain future.

must wonder occasionally if your brothers keep closely In
with "You each other. Unfortunately, this is not the isolates case.
these in touch times of political tension and general mistrust and one as

one's self more than usual, one lives for one's self which says
little as possible; it is so easy to let fall A remark situation with could us

misunderstood and lead to complications. The children in the
be
speak
freely
their
La such
that parents
do notwith
something
different in one's

family circle One would have fancied troubled times The

old but we have net with extraordinarily security

age of of self-possession, contentment and hand that are
days
quiet, that BOOK say on the one can
is onlythe which
definitely
Cone. the
So oxtrese it is by his loss of religion, through
in
throatened

he Ls has renounced his individuality; others say Dan thinking is
personification of a type. The ban on independent
really an inevitable necessity
1941.

(247) G.S., Murtingen a.N. to G.A., to K.K., Chicago, Cleveland, Ill., Ohio, 23rd Sept. 18th Nov. 1941.
(249) (248) J.M., L.W., Rottweil Detlingen a/Neckar to L.L., Terra Nova, Bramil, 15th Sept. 1941.

- 111

"The and war becomes more and 2010 evident to us as to all

Spiritual for in material burdens became constantly croater, Burope. so

much us Germany as for the rest of Europe. The perhapa not

to the hall which war brings to our country pale in and
raying intothe
East. the
Whatsubject
is compared
it isis better
leave
in isSO

terrible afflictions that which ailonco. happening significance troubles there with the

increasing duration of the war one must readjust one's

existence and this noreover in all an the
A zinister in Barlin . resarked

that war
greatest
but
also
the
chance
European
elementary
this continent.
be form
is of the
only last
countries
self for recently, Gerauy to of

life must hard and bitter accordingly. The internal order, the
rigid organisation for the distribution of the necessities of life,

makes everyone can satisfy his immodiate
state did not function so perfectly, we would be
need as countries. Consequently with us one

live a at the expense of another who
which are not are naturally scarce, but when one think
like supervision certain in other prince rationed that goes hungry. needs. person stops in cannot If Things to great the

that perhaps 15 million people have been called up for military servico,
then it becomes obvious that industry must be greatly affected by this
drain on labour. Many works are completely shut down as the owners have
been called up, the families are supported by the State; many factories
are only open at intervals on account of lack of raw materials. In the
long run, however, one gets accustoned to being without trying pans,
saucepans, household goods and also the lack of tooth brushes and toothpaste becomes immaterial. Against this, however, the housewife is not
pleased when she has no soap to do the washing

"We stand in constant fear of the entry of America into the Harry
the young people don't worry much about it, the older generation, however,

anticipate this eventuality with the gravest miscivings. The war
potential of the United States must not be underestinated, The most
oppressive thought for all of us is the prospect of an even longer war
and
we have no greater desire than to be freed of this frightful scourge
of mankind
P.S. Just now the declaration of war betwoon Japan and
America WILD announced. We listened anxiously. noo again the world

is placed in a situation of alarn. I cannot rejoice as 3023 shortsi,

people here. I am of the opinion that the American decand for an open
door in China was just and that for all of us, whether we be Toutons,
Latina or Glavs, it will be of the greatest disadvantage if the Far last
becomes entirely absorbed into the sphere of Japanese interests and
domination."

1111001111

Goebbels on December 1st to the Deutsche Akademie.

THE SPREAD OF TO1US,

Relatively little information has come through the mail reparting the spread of Typhua in territory under German domination.
in is a subject which has been so completely ignored except in a
for letters from Switnerland and in reports from Jewish organisations
from neighbouring countries that nowhere did it BOOK to fit into the
limited picture as seen through German mail.
The following are the only references to Typhus of any
interest which have been intercepted in Bornada mail.
Report from the Jerish Telegraphic Agency emanating from

Geneva, December 26th:

"Intense winter cold and hunger and the uncheaked Typhus
epidemic which is raging throughout Poland, Naxi-oocupied Russia, and

the Baltie area is Hilling off hundreds of Jour daily in these
sections, according to mporta reaching here this work.

More than 300 deaths daily take place in the Warsam ghetto
from typinan, the reports disclose; and because of the lack of serus
anti-typh imoculations have been stopped. In a Nart prison camp in
Bastern Collete where thousands of Soviet soldiers are confined, the
celded has also broken out, the Krakiwaki wisti reports, adding that

the Hoose has spread to the local population. In

Leove

and

Preyenyal

the hospitals are overflowing with typhus vistim and the mortality rate

is staggering. Indications of the effects of starvation, Nart brut
ality and the typhus epidemia in Love can be noted in the official
German figures received here. In the month of November there were

1,387 deaths in the city of which 405 were Jours. of this total 956

were non, of which 205 were Jom. In Ld thuonia the typhus plague
is reported to be spreading 14ho wildfire, Many localities have been
completely isolated under orders from Commissar Von Rintelon, and

motor care passing through are not permitted to stop. Other reports
reading here state that the epidemie is approaching Berlin, and that

- in labour compa in the Brandenburg forest, near Berlin, have
stopped working for Local farmers because of the typhus epidemic in

withhouring villages".
A second Jewish Telegraphic Agency report of the same date
from Zurich states:

Spotted typhus is now raging in Berlin, Leipsig, and
wreeberg, and in many oities in Germany, despite frantia efforts to

- it. Similarly the German troops are suffering severely from
spread of typhus' (1)
An English Journalist correspondent of the North American
paper Alliance of New York, whose informant has returned from
Agaiy, writes on February latiTyphus is already rempant in Poland Grooos, and is

ing its ugly head in Spains the Balkana are also affected
danger of infection in the German army is believed to be of

at concern to the German High Commond, particularly in the German

upied territories" (2)
Gonoern is also growing in Switserland:-

"It is said they have typhus in Lorrach"(1n Baden, Just
the Swiss border, less than 10 miles from Banle)"If it's true,

I.W., Zuriah to Jerish Telegraphic Agenay N.Y., 26.Jan.1942.
A.J.M., Lisbon, to B.G.d., New York, 1.2.42.

11.

19 is very and, as 1.00 a terrible disease . (3)

"In the whole of the Best "Flook type is raging. These

on Leave from the front have to spani fourboon days in a Quarentine
Comp in Leipaig, and many people have boan infected there" (4)

"The repla spread of "Flook typhune' in - already
will hatre to mobilize our any against that too" (3)

as for as Frankfurt of is a groat - of word to may w
Only two references to typhune have - to hand in mail

from Germany itself, The first, with as eazily as October
6th., montions the death of a Gosmen - - taken 111 - the

Ruler and died of typinas at the ago of 27. You will about

that the times are far from reay (6)

Finally, a letter from a Gozman witer in Bulingsun Hesain
Kansal to the Director of a German Gulture centro in Cartagona,
mLe-sorted in Spain into a Now York bags Fast think, the

of w daughter-in-Lar's sister, Day Kart Hoffmann, has died of
typinas. He was in contact with some sick Bussians, enight 19
from them, and died very soon". (7)

(3) R.W. Donle, to R.N. do Los Santiago de Chile, 29th.Doc.1941.
(if L, demova, to H.V.S. Cambridge, Masa, 11th.Jam.1942.
(5)
P.M. Beale, to L.M., Now York 10th.Jan.1942.
8 P.P. Hanburg to H.S. Northampton, Mana. 6th.Oet.1944.
(7) A.G., Dudingen Herris Germany to L.F., Cartagona, 12nd.Jen.1942.

ARRANDAX II.
GERMAN FAITH MOVEMENTS.
L.

PROGRAMBER OF THE NATIONAL KKTCH CHURCH OF GERMANY

(1) The National Raich Church of Germany (hereinafter referred to
as KRC) alains as clearly as possible to here sole right and
sele might over all charches within the frontiers of the German
Rei chj it declares these ahurahee to be National Reiah Churches
of Germany.

(2) The German Yelk has not to serve the KRC, but the KRO exclusively
and solely serves the one dootrine Race and Volk.

(3) The area of activity of the NRC is determined by the territorial
frontiers of the German Raich and Colonies

(4) The XRC forces no German to join it. It is prepared to do
everything in its power to include every lost German soul, It

cannot and will not suffer in Germany other ahurahoe or ohuroh14kc institutions and associations, especially those which have
international connections or are governed from abroad.

(5) The NRC is unalterably determined to use all the means necessary
to root out the Christian faith, which was imported into Germany
in the unhappy year 800 and is Foreign to the German nature and
charaeter

(6) No fundamental change may be made in the existing aburches ( the
buildings) for they represent a German national value, German
culture, and a part of the historical process of the development

of our Telk. They are not only to be valued but also to be

maintained as a German National property.

(7) In the KRC there are no scribes, pastors, chaplains, priests,
only national lei oh-speakers are to speak in it.
(8) The eeremonies of the KRC take place only in the evening and not
in the morning, namely on Saturday night, with appropriate lighting
effects.
(9) In the XRC German mon and women, German boys and girls, are to
pay united homage to God and His immortal works.

(10) The NRC ceaselossly strives to achieve its necessary unification

with the State. It has to subordinate itself to the State as
a nomber in its service. For this reason the NRC calls for

the imediate surrender of all territorial possessions of all ahurches,

and confessions to the State. It also prohibits the churches from
acquiring by purchase or gift the smallest portion of German soil.
For it is not the churches that oonquer and cultivate the ground
and soil, but exclusively the German Valk, the German State.
(11) Those whotoday are stressing in word and writing, with all possible
insidious ounning, the absolute necessity of maintaining the
Christian dootrine in Germany, may never become speakers in the
KRO because they are deceiving not only themselves, but also the
German Volk, for the sake of their position and their daily bread.
(12) The NRO speakers hold positions as State officials according to
the laws governing the civil service.
(13) The KBC calls for the immediate oessation of the printing and
distribution of the Bible wi thin Germany and also of the further
publication of Sunday papers, pemphlets, lectures, or books with
ecalominatical contents.
(14) The NRO has to keep a strict watch so as to make it impossible

for the Male or other Christian religious writings to be imported

into Germany.

(15) The JOIC declares the Book of the Puhrer, Main Kampf, to be its

11.

II

protest document, and thus the greatest document of the Telk.
In
seg 14 is omealous that this book embedics not narely the
are of ourbut
Felk.
the purset and truest ethic for the present and future
(16) energies the KBC has set their unfailingly the task of devoting its whole
to making the book Meda Kannt popular, and helping
Gameon to lead and perfect kis life with and according to this every book

(17) the 1000 readres that the page mmers and contents of this book, in
formedition.
it - appear, should in future correspond with the
y popular

the
JORG
- from its
altars
the andifix, the Bible, and all
status
and platures
of the
Saints,
(29) Ca - alters of the mm, OUR all-baliest book, Main and

-

its w laft side the Buard are to be delicated to the Gaznas Felk and - thus

(ao) have during the XBO earementos to expound this Book
to the best of their ability.

(a) is no forgiveness of sim, The JORO stands for the

- that sim once ltted

be

agained in this world by the iron I

boatdain
of Gounan abilitren, especially Suptim
Spirit

MM (of a - adida) here only to take
alter This YOU - as follow i-

(135)

God this body eath, that I, N.N. the
wife

for

of

this
in

the

Agyan

ald 114

in

a

Welle"

God this baly with, that I, H.M.
is

the

- that the mother, - demonstrably

As mother promise to bring UP this ells
spirit for membership in the Genes Vell"
boats of this German You my and not the Doutechlent
delivered for the now atism.

- with confirmation and instruction of confirmation

and also committee and instructions of
are ml research the families, the schools. the

The

Youth Etter Youth and German Caris Alliance,
give a particularly selem charaeter to the school-lowing

of our German Youth, all the JOICs are to be placed at the
of the German Youth Organi inations on the State Youth Festival,

is to be calebrated on the Friday before Baster. On this day, only
of these organizations are to have the sole and exalusive right
speak.

milling of German - and women takes place by the swearing of the
of faithfulness. each party touching the Sword with the right hand
the same time. In the KRO - permony may bo carried out in the
grifical posture of knooling.
bouth day before Whitsunday (1.0. Asomsion Day) is declared by
KERO to be the Pestival of the German family.
@mouncos the customary National Day of Penitence and Preyer.

donamia that this should be transfirmed into the celebration of the
Averuary of the foundation of the MRC.

KRC in no case permits the creation of & now symbol of an

calemiastical or religious character.

111.

Appealty II.

On taken the day of the foundation of the MBC. the eross of Ghrist is to be

- from all the churches, enthedrals, and shapels this

by the frontiers of the Gomman Reid and Colonies and is to be replaced
the only invincible symbol of Genmany - the

"To believe in an eternal great National Socialist
born and in the National Socialist philosophy which Kingdom, was
of in the heart of the man Adolf Hitler during the great struggle
German Immunity with all nations of the earth. We believe that

Almighty God, in - to his prayer, restared kis eyesight to this

soldiers this blinded in the World War. Fe believe, regard, and experience
man alone as the Saviour and Looder of our German Nation, our
Rei ah, and our people bound together by its blood. We believe in his

only written work Main We VOW to follow all the Committee
contained in it to the best of our knowledge and ability. And if

truly
fulfill
them, we believe that we can confess: Lord, sta-free TO
w
stand
before
Thee, We are bound body and soul to our Loader Mair

Hitler, our Reich and Nation, and swear aloud the - your 'Malf
Hitler, our Leader, we remain true to thee for over".(1)

II.

NATIONAL SOCIALIST CARROHTSM.

the Berlin Fookly Wordland, published on September 15th, a
statement which may by described as a cateehi of the German

"Bolievers in God" (Dde Deutschen or, as one might

not unfairly translate it, believers in a Germanie God.

Here it is:-

"Yo National Socialists are believers in God, booming in us as
Germane reverence towards the Divine, and fedt th in the Divino are

imprinted in the indestructible form of blood and being (Sein) In

what do we National Socialists believe?

No National Socialists balievel-

1. In the Divine,
2. In the unity of the Universe,
3. In Mother Earth,

4. In our destiny,
5. In the creative force of our blodd;

6. I'm our Nation and its mission
7. In our Leader,

8. In the National Community of People

9. In ourselves.

Where does the Divine show itself?

1.

The Divine reveals itself in the universe, in visible nature,

both inanimate and animate,

Where does the Divine personify itself in its most sublime form?

The Divine personifies itself in its most subline from in
the Nation (in Volks
Why does the Divine personify itself in its most sublime form

in the Nation?
1.

11.

111.

Because the individual, according to his nature is by nature
only a mo ana for the life and being of the whole nation,
Because the Nation is the living unity of mon willed by the
Divine Nature
Because the individual an develop his divine energies and
forees only within the Nation as a whole, only in the Nation
can he live.

What follow from the faot that the Divine is personified in its

most sublime form in the Nation?

It follows that service for the leader to the Nation and
Fatherland is a Divine service.
1011

tv.

Amountix II.

2.

Universe't What does it maan to say 'wo believe in the unity of the

The words 'we believe in the unity of the Universe' moan
(1)
between
(11)

That the Universe is an indivisible unity, BO that a division
'this world' and 'another world' would be an unatural contrastj
That the infinite variety of the Universe is subordinate

to the fundamental law of each existence,
Why do w believe in the Earth?

3.

(1)

Bocause Mother Earth is the foundation of every life and
every being.

the Harth is not a 'vale of tears' but the place where
w (11)
live Because
as murior.
4.

What doos it moant to believe in Destiny?
To believe in Destiny means
(1.
(11)

To be permeated by a sense that all being is subject to law;
To live out consoiously the lawn of nature;

(ass)

with unshakable trust and confidence to fight open the
way which one's inner calling falls one to go.
Why do we believe in the accative force of our blood?

5.

We believe in the creative force of our blodd:
(1)

Because we see in pure blood the working of the Divine;

(11) because Nordie blood is the first cause and basis of

our political unity;

(111) because Germanie blood has erected the most glorious works

of avvilization of all times

That does belief in our Nation and its mission nean?

6.

To believe in our Nation and its mission moans:
(1)

to have the unsbakable conviction that our Nation represents the

highest value of all humanity in the world;
(11)

to follow the will of Nature, according to which the better
Nation is called to leadership)

(111)

to understand that the leadership of the better Nation must
nooes arily become a blessing for the other nationa;

(1v)

to work, sacrifice, and fight untiringly for the rise and

vietory of our Nation.

What does it mean to believe in oneself?

7.

To believe in oneself means:
(1)

to be consaiously aware that one is a representative of
the Divine;
r

(11)

to be convinoed of the power of one's own Divine capacition
and energies;

(111)

proudly to reject any f ight into the 'beyond'
What does it moan to jeet proudly any flight into the beyond?

8,

It neans
(1)

to remain faithful to the Earth;

Arrendix II.

(11) to follow the eternal laws of Nature and know that one will
be protected by these laws;

(111) Not to strive towards an absurd goal.
9.

When do I feel wyself to be one with the Universe?

I feel wyelf to be one with the Universe when I 500 the Earth
as way Mother, and plants and animals as brothers, and the whole world
all showing the miltiform character of wy being" (2) P.O.X.D.

III.

SPIRITIAL BASES OF THE NEW SUROPE.

the following extraota are taken from a pumphlet by Priorrich
Samudit, Des Raich als Aufgabe (The Reich as a Teak) recently published

1 given official approval by the Examining Commission of the National
Party "for the protection of N.S. Literature". F. Sohmidt is
the vice Gauleiter of Murttenberg,

To have no right to realise our alain to leadership in Europe
no long all we do not have the courage to overeome in a revolutionary way
the powers of a apiritual and political community-Idea whi eh has lasted
for nearly two thousand years, and to set the now X3 idea in its place..
"AS the beginning of Iluzopean history, after the cellapse of the
Receive pire, the 1doa of the Universal Church, as the idea of a commut
which has to stand above the nations of the world, spread abroad in Burope,

This Obsreh, as the spokenson of recomined no specific
multities in nationa and - It tore the individual man out of his

national contact, reduct htm to be an individual soul-bearer, and then

told kin he was free from all 1 of nature, earth, and creation. It

declared that the heads which the man to the laws of life are bonds of

the second order, to those Artical and psychological bonia
it. This dootrine - characterised by a strange balla

in whi eh all - - earth Christianity or were forcel to
ndle the Church taught its members to turn - from all worldly things

ml to down or at Least regard as a miner worth all natural I 19 on
the other hand reached out for all the worldly goods it could ready,
capocially the hd chest political power, based on the community of Christen
wideh was spreading abroad Immeasurably, and 414 so very energetically
without being very particular about its chei.oo of the means it employed.

This the Obureh reasoned two things in the course of Materical

developments first, it gradually acquired all power, directly or
intirestly, in all states of Burope, but secondly it actually micoocled
for centuries in destroying in man all respect for the real creation,

00 that he helplessly derel to the ideas of the church. So that

Obureh determined the life of nearly all Suropean nations and led then in

ultimate things according to its own 1s.
In the further course of historical development, there arose at
the time when the notiaeval period was passing into the modern age a now al-

community-1dons the idea of humanity Here the individual man was
as an intividual eoonomic capacity, as a functional
ready wit of regarded economic laws. It was out of this spiritual soil, which had bonds been

will prepared by Orristimity by its destruction of all natural These

very in accordance with its ideas, that liberalism and Marxian grew both up. that

ideas found their spiritual - In the statement common to

coonomLo 1 alone Letermine the destinies of the nations, and that the and
value of the individual is ultimately determined by his environment,
thus by his economic ospacities or economic activities.

National Socialism has had to assert itself over against
these ideas. Be idea of humanity has been oversome almost comparatively

both guickly by the outburst of national consciousness which is comparable
with a natural fores.
Christianity, based on centuries of old often reverend

based upon its alaim to be mediator between God

traditions, but retained especially not only religious, but still unfortunately till political now not

positions and man, has of its spiritual power. In particular, we have up

(2) P.O.M.D. (Geneva) to P.M. Chiloage 30th.Dec.1941.

Appendix II.
entirely nation succeeded the in overooming the spiritual attitude brought

from God. by dogunties of Christianity - attitude which is into our

I - not unamure of the fact that those often far

into their to the protection the imaginary things of life and powers also which claim have taken
in BOOSSA a single day. beyond, We cannot be rooted out of the spiritual life of to possess nation

equally must continually work with gigantic patience our
1 gigantic oaution until the mon in our Rei oh finally and
true al guificance in the natural and accordingly divine superiority reaoguise in

membership a nation to the arbitrarily selected membership in a confession. of
If these is a community, membership in which cannot be

by is I the will, but is bound to an inviolable divine law, then this determined
- most valuable, most moral, and therefore ultimately the only comunity religious

and moral Therefore for us membership in our nation is a highest divine
reality...Fhen w therefore Bay today that a man is a German

virtue of the fast of hds blood, then we are revently acknowledging a divine by

inviolable
order of creation.
with the reliscovery
of God... Indood, for us this recognition is identical

Thoever lives for his nation, in complete devotion and
faithfulness, is according to human estimate truly living in God. For despect
thing
religion has its origin in reversepe for the eternal divine lawn, every which
are
over

us. anyone who is DO Introverent as to deny the law of the

blood is the most godless being that moves on the face of the earth. Indeed
there is other sin of mon then the arrogance which transgreeses the laws
of nature, creation, and thus of God. Those people who are still speaking
officially in the name of God, but deny the lawn of the natural life-order
of the blood. are truly the most godless non, for they here made themselves
into the Lard God by darying those natural laws of life.
"If TO now today erect the community-conoept of National

Socialia into the philosophical basis of the Raich, then this communityemoept mast not remain merely a formally recognised idea. The Germane

of our day therefore have the constant task and holy obligation to fill
aspect of the life of our nation with NS revolutionary spirit, and
to do any within Germany with alltraditions of the old world...
The alaim of the Muropean continent and the European nations to

leadership in the Mstory of the last to millenia consisted in the fast that

it hail 1 - Ldea of the world. Now that the old Surepean ideologies

have in various forms because the general possession of all continents, it is
impossible for Burope to . Ice its now alain to leadership on the basis of
those Ldeas. Then therefore a now Europe comes into the world and claims
to represent a definite leadership within the human community, then this now
Maraga must novitably turn away from the old ideas.
"In this some, w are today seeking to overoomo the spiritual
and paychological principles of the last two millenia, to revolutionise the
continent as a Germanic continent, and to stabilise and perfect it

- bulwark of the now idea of JS. Out of this idea there grow a now

outlook on the world, a now culture, a now velfare, and there arises a now
Immunity which lives in accordance with a new heroic law. In this sense
the present war and the present time represent a turning point in the history
of the world.
"The philosophy of National Socialism looks upon the German as

eing a helper of God in the perfection of the world" (3)

) I.C.P.L.S., Geneva, to L.M., New York 23rd. December, 1941.

378
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

DATE December 31,1941
TO

Secretary Morgenthau
Mr. Kamarck

FROM

Subject: Summary of Military Reports
Far East
On December 25, A Japanese raid was made on Rangoon

and on an airdrome near the city. 54 bombers escorted
by 30 fighters were used. A total of 20 Jananese planes

were shot down. In the fighting, the British lost four

planes, the American Volunteer Group (Colonel Chennault)
lost two, and two planes were destroyed on the ground,

making total Allied losses eight planes. (This raid
was reported in the papers, but this is the first confirmation of the large Japanese losses.)

(U.K. Embassy, Operations Report, December 27,1941)
Mediterranean

The British have cumulative evidence that a German

base for supplying fuel oil on a big scale is being

established in the Marseille vicinity. The oil is being

sent from Germany via Lyon and the Rhone River. The

reports estimate the quantity at from 27,000 to 40,000
motor torpedo boats is included. The German U-boats now

tons. Both diesel oil for submarines and gasoline for

in the Mediterranean have been using Spezzia (northwest

Italy), but there is no evidence that any of the oil is
to be shipped there. It may be that Marseille is to be

used as an alternative supply base.

(U.K. Embassy, Operations Report, December 27,1941)

379

-(We have, in the last month, received many

reports of an increase in German strength in the
Mediterranean and of greater collaboration between
the Vichy French and the Germans. All of this may
be purely defensive, but it bears suspicious resemblance to the German preparations in the east before
the attack in Russia and the Japanese preparations
in Indo-China prior to December 7.)

RESTRICTED

G-2/2657-220; No. 586

M.I.D, W.D.

11:00 A.M., December 31, 1941

SITUATION REPORT

I.

Pacific Theater.

Philippines: Hostile air operations continuing. Japanese
are dive-bombing roads. In the north, Japanese pressure is developing on U. S. right. In the south, planned withdrawals are being
made. Hawaii: Negative reports. Malaya: No substantial change in
the situation. Singapore, Kuantan (on east coast), and Kluang
(Johore Province) were bombed by the Japanese. Sarawak: The Japanese
have occupied Kuching. West Coast: No further reports have been
received.
II.

Eastern Theater.
The German High Command reports the repulse of strong

enemy attacks on various sectors of the eastern front. Russians
claim the capture of Kozelsk, south of Kaluga.
Theodosia.

In the Crimea the Russians claim to have taken Kerch and

III. Western Theater.
No further reports have been received.
IV.

Middle Eastern Theater.

Ground: There is a noticeable stiffening of the Axis defense
in the Agedabia sector.
Air: The R.A.F. continues offensive operations despite bad

weather conditions.

RESTRICTED