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DIARY Book 555-A Military Reports by Kamarck March 13, 1941--July 28, 1942 -IBook Page Kamarck, Andrew M. See Military Reports -M- Military Reports Kamarck summaries, March 13, 1941--July 28, 1942 555-A 1-544 1 Treasury Department Division of Monetary Research Date To: March 15, 19 41. Secretary Morgenthau These are items of significance that may have escaped your attention which Mr. Kamarck has culled from a week's reading of confidential material he goes over in Miss Chauncey's office. The underlined portions are statements taken from the reports. The other sentences are Mr. Kamarck's own comments and evaluations. Unless we hear to the contrary, a similar report will be prepared each week. HDW MR. WHITE Branch 2058 - Room 214} 2 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE March 13, 1941. TO Mr. White FROM Mr. Kamarck Subject: The Most Significant Military Developments of the Past Week 1. The two German battle cruisers, Gneisenau and Scharnhorst (26,000 ton ships), were sighted on March 8th between the Canary Islands and the Cape Verde Islands off the bulge of Africa. These war ships are the largest that the Germans have ever slipped out of the North Sea. With such formidable ships loose in the Atlantic, it will be increasingly necessary to guard merchant convoys with battleships. The presence of these ships in African waters may be an indication that Spanish bases are being used. 2. The Suez Canal has now been closed by German mines for about three weeks. Since the British Near Eastern armies are supplied in large part by way of the Canal, the closing of this route is serious. The mines are probably magnetic mines dropped from airplanes. Counter-measures are effective against such mines but evidently the British had not made sufficient preparations to meet this threat in the Suez Canal. 3. The Axis powers are steadily concentrating large forces against Greece. The situation does not appear very hopeful. The Italians now have almost 500,000 men in Albania. This is triple the number of troops that were used in the initial Greek invasion last Fall. The Germans now have 600,000 men in the Balkans. 300,000 of these are already in Bulgaria. The Bulgarian army, which doubtless could not be trusted to play an active part against Greece, has as its main function the manning of the Turkish frontier to protect that German flank during the Greek operations. Only around 75,000 Bulgarians are, therefore, on the Greek frontier. The Greeks, as a maximum, probably do not have more than 400,000 men to use on all fronts. The British will find it difficult to send more than 100,000 men to Greece. The Allies, then, will be outnumbered on the whole by about 2 to 1. As an offset to inferior numbers, the Allies, of course, possess the advantage of good defensive terrain, superior supply lines, and, as against the Italians at least, superior morale. 3 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 1, 1941 TO Secretary Morgenthau FROM Mr. Kamarok Subject: Summary of Attached Reports Egypt The British have retired to Sidi Barrani (127 miles from Tobruk). The axis forces have occupied Buqbuq, 25 miles east of Sollum and about 25 miles west of Sidi Barrani. (Source: M. I. D. Situation Report.) Tobruk harbor has been temporarily closed because of German mines. A land attack on Tobruk was repulsed with heavy German casualties. The British had no casualties. (Source: Military Attache, Lond on, April 26.) Greece The British hoped at most to be able to evacuate 40,000 men from Greece and to lose all their material. (Apparently, 48,000 men have been saved.) Practically no British air protection could be provided against the intense German air activity. The evacuation had to be carried out in darkness from the southern and eastern Peloponnesian pats. (Source: Military Attache, Cairo, April 25.) During the fighting in Greece, one Australian battaldivision in a pass south of Molos (northwest of Athens) for 40 hours. (Source: Military Attache, London, April 26.) ion (perhaps 600 men) successfully held off a German mountain Syria German officers in Yugoslavia are discussing an invasion of Syria by sea and air as the next move. The invasion would be preceded by heavy air attacks on British ships in the Aegean and would by-pass Turkey. (Source: Military Attache, Belgrade. ) 4 -2Palestine An oil pipe line in Palestine was sabotaged. (Source: Military Attache, London, April 26.) Spain 75 airplanes have been moved from the Canary Islands to the mainland and Morocco. (This 18 an opposite movement from that reported about a month ago. At that time, the Spanish were reported as sending heavy reinforcements to the Canaries. ) (Source: Military Attache, Madrid, April 28.) England In response to your inquiry, no combat missions have been given the Boeing B-17 bombers up to the present. (Source: London.) During the week of April 24 no ships were lost in any of the Atlantic convoys. (Source: British Embassy, April 27.) SECRET By authority A. C. Date 28 apr4 COMMOS Initials Payaphrase of Code Cablegram Received as the War Department as 12:15, April 28, 1941. Caize, filed 20:35, April 25, 1942. 1. Street Lesses of British during troops evacuation are severe. There is practically no British air support and German air activity is intense. All material in Greese will be last but British Army authorities hope to save 40,000 troops. Evaduation is proceeding under cover of darkness from southern and eastern Paleponnesism parts. 2. Lilara. Italian casualties in an attack on Tobruk April 25 assamted to 500 killed or captured. FELLERS Distribution Secretary of War State Department Secretary of Treasury Under Secretary of War Assistant Chief of Staff, 0-2 War Plans Division office of Naval Intelligence Assistant Chief of Staff, 0-3 SECRET 5 CONFIDENTIAL Paraphrase of Code Cablegram Received at the War Department at 12146, April 26, 1941. Lender, filed 17:30, April 26, 1941. 1. M Activity - the s Notlight, April 25. Several hite were abserved during attacks on Anis shipping off the Datch and Fanish coasts. & Right of April 24-25. Kiel was bombed by 68 British bembers, Is Havre by 21 and Ostend, Ijusides and Wilhelmshaven w 32. A smaller number made raids on Breat, 2. Saraan Atr Antivity ever Britain s Right of April 25-M6. Buids of minor proportions took place in the Liverpool, Newsatis and Firth of Forth areas. No reports have been received of damage and contact was not gained w night fighters. A Diglight, April 25. Buids over Britain were - a reduced seals. Eight planes were observed over the coast in the visinity of Brighten. 3. Air Lasses. Britten Theater s British. Right of April 24-25. - plane failed to return after raids over Germany and compied territories. s German. Daylight April 25. One plano was shot down during vaids over Brighten. CONFIDENTIAL 6 7 CONFIDENTIAL 4. Princi Air Activity. made East Theater. s Buylight, April 25. From bases bombing attacks were made - the Merber at and - communications at Capassa, Dema and Bardia. s The - day attacks were made - Tripoli n British planes = based at Malta. 5. Antivitz middle East Theater. s No - to military targets was reported in an attack Tokeak w n Germa dive bembers. s German planos continue to bomb heavily reads leading to the Greek coast and parts in the year of British treeps. 6. L middle Best Theater. Three German dive because were shot dem during attacks - Toback. No British planes - lost. 7. w to 22.00, April 26, British authorities had no assurate information in regard to the situation of British troops in Grooos with the assocition that - buttalism of Australian treeps was reported to have hold off - one German moutain division in a montain pass south of Helee for 40 hours. The British continue their withdrawal with troops. s. A 3,000-tem Italian freighter was mak w British navel units off Twis. Two Anis taskers were sunk w British aircraft, one off Statunger and - off frest. 9. Mim The harber of Toback has been temperarily closed to shipping on account of since dropped from planes. Heavy casualties were suffered CONFIDENTIAL CONFIDENTIAL w - trouge in a heavy Infortay attack - Toback. The attack was repulsed without British casulties. 10. American British column advancing - Dessye are being delayed w read demolitions. The advance, however, continues. 11. Palentine. in all pipe Line has been sabotaged near Beisan. Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War assistant Chief of Staff, as Mar Plans Division office of Neval Intelligence as Air Corps CONFIDENTIAL - 8 9 RESTRICTED M.I.D., W.D. G-2/2657-220; No. 378 12:00 M., April 29, 1941, SITUATION REPORT I. Western Theater. Air: German. Main effort last night WAS made against Plymouth in considerable force. There were scattering minor attacks along the southern and eastern coasts of Great Britain. British. Limited offensive activity. The battle cruisers at Brest were again attacked. II. Greek Theater. Ground: German troope have occupied the town of Tripoli in the center of the Peloponnesus. The British forces in Greece continue reembarkation from the beaches along the south and southeast coast of the Peloponnesus. The small ports of Nauplia and Kalamata in this re- gion are still held by British troops. Air: German attacks on the British evacuation are believed to have continued. III. Mediterranean and African Theaters. Ground: Axis forces have advanced as far as Bugbug which is about 25 miles east of Sollum. British forces have withdrawn to Sidi Barrani, the fartheat point of Graziani's advance and 25 miles to the east of Bugbug. This latest withdrawal further isolates the British force, estimated as the equivalent of a division and a half including limited mechanized equipment, which is encircled in Tobruk, now 127 miles to the rear. Air: No reports of activity. RESTRICTED CONFIDENTIAL Paraphrase of Code Indiagram Received at the War Department at 7:50, April x, 1941. Matria, filed April m, 1941. Amount inquiry, report that 75 please from Ceneries were moved as follows: 40 to the and 35 to Melilla area, Spanish Marcose, EAGER Distributions Secretary of Nax State Department Secretary of Treasury Union Secretary of War didnet of Staff Assistant Oklaf of Staff, Mar Pime Division G-2 office of Naval Intelligence CONFIDENTIAL the 10 CONFIDENTIAL Paraphrase of Code Gablegram Received at the War Department at 15:32, April 28, 1941 Budapest, filed 19:30, April 28, 1941. 1. On April 26th and 27th German motor transport was observed moving north through Budapest, Newspaper reporters say that German officers in Yugoslavia are discussing a direct attack against Syria by ass and air as the next German move. This attack, preceded by heavy air attacks against British ships in eastern Mediterranean, would by-pass Turkey. Also they state that only 4 motorised divisions were required for the Yugoalav campaign. 2. The partial demobilisation of the Hungarian army is now apparent. PARTRIDGE Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence CONFIDENTIAL 11 12 BRITISH EMBASSY, WASHINGTON, D.C. April 29th, 1941. Personal and Secret. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Halifax The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 13 Telegram from London dated April 27th. Naval. During week of April 24th there have been 1. no lesses in Atlantic conveys, shipping losses generally are lower. Two East Coast conveys unsuccessfully attacked off Groner and in the Thomas Naturary 26th. 2. 3. Norwegian merchant ship damaged Fokker Wolffe with assistance of Hudson aircraft and emay dropped no bombs. 4. His Majesty's Ship York torpedoed Harach 26th has sustained further damage from near miss bombs in Suda Bay Tenth Canadian troop convoy arrived safely in the Olyde April 19th. 5. Reports so far received state Australians amounting to about one brigado have left Greece. 6. 7. Military. Yagoalavia. Yugoslavs attempted to blook the Danube. Four points near the Iron Gates sue- ceasfully blocked by sinking ships. Attempt to blook fifth less important place was only partially successful. a The large railway bridge over the Danube at Belgrade was demolished causing obstruction. 8. Bulgaria. It is reliably reported that Sofia is erowded with German wounded and private houses have been commandeered to supplement hospital accommodation. 9. Southwest France. Air reconnaissance Franco- Spanish frontier April 22nd showed no unusual movements roads or railways but revealed large number of dumps of material. Seven divisions including one motorised are believed to be in area Bordeaux-Hendaye. 10. Royal A1P Force. Hight of April 26th/27th. Fifty bombers sent to Hamburg and small numbers to Enden, Havre an Brest. Out of 65, two are missing. 11./ 14 -211. Ethiopia. 24 South African aircraft fighters destroyed two fighters and four motor vehicles on emery aero- dromes. One aircraft lost. German Air Force. 26th. During day small formation 12. sweepe over Southeast England dropping few bombs. One enemy fighter and two of own shot down. Night of 26th/27th. About 130 enemy aircraft came 13. over. Night fighters probably destroyed one enemy at rereft. Libya. 25th. Five M.E. 110's escorted by M.E.109 14. bombed Halfaya. One M.E. 110 shot down by anti-aircraft fire. 15. Home Security. Night of 26th/27th. Light attack on Merseyside and South Bancashire caused only minor damage and few casualties. 15 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 2, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Weekly Military Report: The State of German Morale (This is based on two independent sources which agree on practi cally all important points. One source 18 a Military Intelligence Bulletin derived largely from British data. The other source is an article in the May Infantry Journal written by an American engineer who lived in Belgium during the invesion and occupation.) The Army 1. Morale in the army is still very high. This is due to the Nazi indoctrination, the successes in the war and to the fact that pay in the army is very high. Morale has, how- ever, slumped somewhat from the spring of 1940.when it seemed that the war would soon end in a German victory. 2. The main reasons for the fall in morale are the desire of the men for the war to end 80 that they can return home and the fear that an invasion attempt against England will result in severe casualties. In addition, the letters from home are disquieting. In spite of the victories the economic position at home has not improved. The soldiers are also worried by the fear that the British bombing may kill some of their people at home. 3. Morale is weakest among the troops in the occupied countries. Of the different sections, the Austrian troops have the poorest morale, the Bavarians next. The Austrian troops in Norway demonstrated a strong unwillingness to be used in an invasion of England. Severe disciplinary action had to be taken. 4. The German soldiers still have complete faith in Hitler although there persists some dislike of the other Nazi leaders and of the Nazi Party. 16 -2- Division of Monetary Research The Civilian Population 1. The people at home show surprisingly little the fact that the victories did not improve economic enthusiasm for the successes won. This may be due to conditions. 2. The British air raids are having an exhausting effect on the people and are affecting output. 3. Many families have had no news of husbands or sons. than officially announced. It is generally believed that casualties have been heavier 4. In spite of all this, there is still complete faith in the leadership of Hitler. 17 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 3, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Attached Reports Next German Move British Military Intelligence believes that the Germans will attempt seizure of Crete and occupation of Spain and Portugal. (Military attache, London, May 1). Spain There 18 no verification of the report that the Germans are moving through Spain in the direction of Gibraltar. (Military attache, Madrid, April 30). An unconfirmed report states that new fortifications are being constructed in northwestern Spain. There are also supposed to be 1700 sailors in this area. (Military attache, Lisbon, April 30). Russia British Military Intelligence has information that Germany has demanded that Russia permit a German mission to handle the procurement and the transport of supplies intended for Germany. These demands include control of the transportation system. (Military attache, London, May 1) There is a rumor in Moscow that military forces have h.d to be transported to counteract unrest among the people on the western border of the Soviet Union. The American Consul was informed that thousands of Germans and Ukrainians have been exiled and hundreds shot because they participated in a movement of separation from the Soviet Union. The German Fifth Column continues to infiltrate across the border. (Military attache, Moscow, April 30) The Germans have moved four German divisions from the Balkans northward through Budapest since April 26. (Military attache, Budapest, April30) 18 -2- Libya - Egypt A Glenn Martin bomber on reconnaissance patrol observed and machine-gunned one hundred German troop transports near Benghazi. (Military attache, London, April 30) 50 long-range German bombers have been observed in Libya. (Military attache, London, April 30) At Alexandria, there are the following ships of the Greek navy: A cruiser, 6 destroyers, 2 torpedo boat destroyers, 4 submarines, 1 submarine on the way. The Yugoslave are represented by 1 submarine and 2 motor torpedo boats. (British Embassy, April 27 report from London.) Greece The Germans have in Central Greece 200 Fighters 100 Stukas 25 Army Cooperation planes (Military attache, London, April 30) CONFIDENTIAL of the inc. - state - m. IMM. Reported - in Monation / / - m Head Sefficiations tate quick portion 1 of - - will. - staff, office of w Insuition CONFIDENTIAL 19 - CONFIDENTIAL 2248, Aguil I Mid same In editate / mm of - - type - being - -- to a militable - which sine - the - - of - I / settem. - repute - office of I statt, we Indella CONFIDENTIAL 20 -/ CONFIDENTIAL of Man, - filed - m. soun 20 to I the - to a - - of / of - - to / - - the somple / the - of / -- nofthe1222 a/1Itotal Ma that a / - -I -addition, mile of activity - in /cheller / / and and / / I a - the - I so I - do - I - / I affected - of the - nine Information - the / - that the -I of of note, as Intelligence CONFIDENTIAL 21 CONFIDENTIAL Perspirans of Code California Received at the Was as 13:23, April 30, 1941. Dadsport, filed April 30, 1941. 1. your - Divisions saving northward by noter through Budgest since April 26th. 2. IS is believed that Huggrian troops are policing Seridan areas south of the Dambe, in addition to the areas north of the Demabe which Singary intends to amix. Huggarism officials and railroad personnel are also operating in Serbin, thereby releasing Omman personnel for duty elsewhere. PARTRIDGE Distributions Secretary of war State Department secretary of Treasury Under Secretary of Chief of Staff Assistant Chief of staff, 0-2 War Plans Division office of Neval Intelligence CONFIDENTIAL 22 CONFIDENTIAL 23 of Seceived as the The as 20148, my 2, M. filed 19:98, - 4, mgs. assists All the Sentieme. 1. - Column, Rettention, and s several atefields in the Bethericalle were - for on attack of 100 2. C s Shore we - activity Bessish busbers. the / battleships as Street Burber - again business w the Gonstal - without definite results having been deserved. - what there was - Limited w the single please in nights the east and a const of Sections. no - - reported. b. - operations - of asterate proportion, chiefly constal patrolling. 2. - 26 to estimated that - please were employed in - mide - Regional chiefig is the vistality of Figerath Destruction and commities - may high 3. Atc L s. States. (2) in the said w 100 busbers - low committee one please - lost. k. NAtt (2) in the solds on five - busbers - abot down. 4. CONFIDENTIAL CONFIDENTIAL 24 9. M Irea Inconclusive is Name business attendind the - staffelde as I - Seales - the past of & Min. INSURANCE Schools - again abinated w 18 - Give business. s miss - Britten state than is four attache w - busburs no - resulted. 6. - I States. s. (a) M - - airs beabous - shar down - d in attention. Several weep - please were destroyed as the - staffeld - I (a) min. Your Aste because - whos - 7. - and Italian signate have - thats activities is the Dong - a. Bristah - estimates that the - will attage the compation of Grote - that they will - is the Harim to take percention of all the satisable uses remitting is modial beats. 9. s - separate that 10,000 - weeps have boan tented in Financial. to find as authorisessvo confincation here. British - Intelligence - 10 supportable. 10. missing Intelligence information which w consider authoritative states this morning that I have been - - w Community that . - mission be - to - - transport - supplies tobaccoed for - installing emined of the transportation systems. CONFIDENTIAL CONFIDENTIAL smith, Air se Intelligence as CONFIDENTIAL 25 CONFIDENTIAL 26 - 11 Agen n m or I/- filed mm, Agues mm s. must Agues . s / - I - - buttle off - Delgion - I emote w - - I business remited in - to - chipe. the affective - - w signature - the - All - - of complet I - - violating of - staulte of Donor. a. s mm of Agent mm - - - sately I made - Highler - - in - violating of with single please - Sea legite - M s system Agent . - - - will and what - - - - 3. - I I signature - active on - Registed amet. s - of Agent x-m signs / - - - - please. s mm Agen no. - British please - have in - abbeak w as - - the - - is Bread to - was chearrel. 4. Miga. CONFIDENTIAL CONFIDENTIAL 27 n guns of - business w Brissas based - sum - I troup I please - deserved - mehine / w a single I Mertin - - patrol. b. - mysight, Agent w. British please boose - - coorated weep courage. mass - Subtotal 5. s. Migo. Buysigns, Agent n. British teres in Schools - attented w a busbers. Securities - was 44 committee and - - to - and all of which - be regained. b. Greese. Stylight, Agril . ARE chipe Leading and as - with Brissah from Greese - beauty business w the - Committee - heavy in both shipe - wage. 6. a t States. Boylight, Agens In . addition - attack w stagle - please twoop - please as Deaton, - we and annual others damages. 7. m following is a British missing Inselligence estimate of the - Air Youse in Central Greeses Highbare, about see Dive Berberr, about 100 Also - - Corporation about 90 long - business I been observed is Lilya. CONFIDENTIAL a. - CONFIDENTIAL A British - - case - w a - metas - miles seath of in amm - - -other abigo elevents w the - of which is - I Borth of Sections a Barragion / - - w / attach. 9. n to the - " is extimated 3.00 wage I I - from Greese. Distributions - of the State Department of Support of New think of state Assistant think of staff, as w Plans Division " Office of Intelligence Ate Gauge , CO. FIDENTIAL 28 29 BRITISH EMBASSY, WASHINGTON, D.C. April 30th, 1941. Personal and Secret. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Halifax The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. Telegram from London dated April 28th. 1. 30 Havel. Patia anti-siscraft ship sunk by aircraft - torpedo off Type 2150/27. 2. Following Greek warships at Alexandria. Averoff with Flag Admiral Kavadies, 6 destroyers, 2 torpedo boat destroyers, 4 submarines 1 expected, 1 repair ship. 1 Yugoalav submarine, 2 motor torpedo boats also reported at Alexandria. Glenearn special service ship off South West Greece and Rover in Suda Bay both damaged by near miss bombs. Greese. 80 far reported 26,000 British troope evacuated from About 16,000 to follow, 4. Sunderland on night flight to Narvik 27/28 3. reported no enemy units. 5. Lady-Bird has bombarded Gasala, Aphis. An enemy column at Halfaya Pass Solumne Escarpment. 6. Reference to attack by our destroyers on enemy convey 16th; reconmaissance now reveals wreck of Folgore class. Also probably 1 Folgore 1 Spica and Luca Tarigo sunk, 7. During three air attacks on East Coast convoys 27th 1 Dutch ship damaged. On 26th in addition to 1000 ton merchant weel sunk by bomber command 1 4000-ton ship and another damaged in the North Sea. 8. Royal Air Force. Night of 27th/28th. All operations cancelled. 9. German A1F Force. Night of 27th/28th. 101 enemy aircraft plotted 32 were minelaying, 45 attacked Portsmouth. Considerable damage to property. Several fires caused, three in dockyard serious, all under control. Night fighters destroyed 1 enemy aircraft, damaged another. 31 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 5, 1941 Secretary Morgenthau TO Mr. Kamarck FROM Subject: Summary of Attached Reports Libya Four ships arrived at Benghazi on April 25th with fuel and bombs for the axis forces. Three more ships left Tripoli on April 26th for Benghazi with fuel, bombs and ammunition. (British Embassy, London telegram, May 1) (These were days when the British fleet was occupied in the evacuation from Greece.) It 18 believed that the whole of the German 15th Panzer division has now arrived at the front lines. (Military. Attache, London, May 2). (This division is a full-sized Panzer division having 424 tanks. It disembarked at Tripoli on April 18 and was expected to reach Tobruk by May 8, according to our military attache at Cairo.) England In the German air attack on Plymouth on the night of April 29th, the Germens inflicted considerable damage to a new British destroyer and slight damage to a new cruiser. (British Embassy, May 1, telegram; Military Attache, London, May 2) The Royal Air Force used 10 Sterling long-range bombers against Berlin. 82 other bombers attacked Kiel the night of April 30th. (British Embassy, May 1, telegram) Central America On April 29, Costa Rica delivered Carl Bayer, Nazi leader in Costa Rica, to the Canal Zone to be deported to Germany via Japan. Immigration officials are holding Bayer for the first Japanese boat. 1. CONFIDENTIAL 32 of Date Received at the - Department as mn. my 2, 2042. I filled mase, - 4 mm nlads - 1, - - as Dan - Handing - w a - of I - other - behave - - ratio - policies stange Installations at - s mas of Agent 30 - May 2. I million / - sable - Details - worth - aleftable and appet in booking attacks - Indian - During the - night four attended Reflection, San dispotated against terror in Restitu - a harp two of a suide 2. - Mr Anticity s High of my tagets in - additional - at missing - - - w method formations of - please - of - 2. A wall - of - please - in pateral way along the Done Stautte and - - - - producted the - of Regional s miss of Agent mm - abroads tacking constitution & Mr. - - - - a monthy with Medical destanger at / British, these were - Brittah plano I in this posited. - CONFIDENTIAL - 33 CONFIDENTIAL as - plane - damaged - - - shot - w sign fighter please during the night of - we 4 British Me A large - of lets net vehicles - medical - security of - attack - a natur transport - botesm - - please side enrited out valida - the sinkness as - I - summ, during which - late / - destroyed. so M made - - a the sight of Agent mm late enerted - attack - Mills. Severe - - inflicted - a British mine 1 - - a Initials destroyed In the 1 theater late dive benture again salded Daring daytight heart of my 2, Ante - - six with - - 6 28 to thought that the whole of the Germin 19th Inverted Division to - in the trust State in the Septim complete % activity in the visitility of Toback - to be 26 is reported that the outer determine at this - have I - - w a total of w - - a n is Sensed that the Drage Away - / the - I-- held electronic at - the the sticution - to n no authoritative Signature - evaliable as to the when of Bettles - - from - but a is suce - the sim mg exitiate to - - of the nm British - to - a total of 49,000 - heart made - this - - hear - ISS CONFIDENTIAL CONFIDENTIAL staff, as Intelligence CONFIDENTIAL the 34 35 BRITISH EMBASSY, WASHINGTON D.C. Personal and Secret May 3rd, 1941. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 36 Telegram received from London dated May 1st, 1941. Navel. One destroyer and one minesweeper badly damaged air raid Malta night of April 29th-30th. Yard craft and stores also suffered. One minesweeper damaged by mine deep water Malta. 2. New cruiser slightly damaged by bomb Plymouth night of April 29th-30th. 3. H.M.I.S. Parvati 4/8 vessel sunk by mine southern Red Sea. 4. on April 29th Naval units carried out heavy bombardment of enemy M/T concentrations southeast of Tobruk. 5. Armed boarding vessel Gavine captured Italian tanker Sengro, 6,466 tons, loaded fuel oil in North Atlantic. 6. Early April 30th Air officer commanding Iraq informed by Officer Commanding an Iraqi mechanised unit that "is the course of training" he had taken up positions on hills surrounding Habbaniya and any aircraft OF troope leaving cantonment would be fired upon. He was told this contrary to Anglo-Iraqi treaty and that aircraft would carry out normal training. 7. Enemy intelligence. German supplies to North Africa. 4 shipe arrived at Benghasi on April 25th (2 over 3,000 tone) with fuel and bombs. 3 more shipe left Tripoli for Benghasi on April 26th with fuel bombs and mmunition. 8. Royal Air Force. April 29th. Additional reports. Direct hite made on 2 merchant vessels off Stavanger/ 37 stavanger of 5,000 and 4,000 tone respectively. 9. April 30th. Ship of 700 tone hit and wireless station North of Bergen successfully attacked. 10. Night of April 30th/May 1st. 96 bombers despatched, attacked Kiel (82) Berlin (10 stirlings) Rottordam 4. All returned safely. 11. German Air Force. Eight of April 29th/ 30th. Total of 8 enemy aircraft destroyed. 12. April 30th and night of April 30th/May let. Enemy activity slight. CONFIDENTIAL 38 Paraphrase of Code Hollogram Received as the - Separation as sim, April so, ion. Panama, filed April so, 1941. an April w w special RAGA plane Govt Payer, Heal lealer in Costa MM, was delivered to the Ganal Name, as the request of the Gests Rican Government, to be deported to via Japan. Further details laber. Insiting passage on the first available Sugaress beat, he is new in the hants of Immigration officials at famal Zana Quarantine. VAN TOGRATS Retributions Secretary of Year State Department Secretary of Present Ohief of Staff Natar Secretary of Year Assistant Chief of Staff, as Year Plans Division office of Neval Intelligence 39 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 6, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Military Reports Egypt Around May 1st, a large troop convoy arrived at Suez. On May 3rd, two more convoys totalling 200,000 tons arrived. Another convoy of 164,000 tons was expected shortly after May 3rd. (These convoys probably brought around 50,000 soldiers or almost doubled the previous English strength in Egypt.) (British Embassy, London telegram, May 3) Libya It is anticipated that the axis "effort in Libya is shortly to be increased". Reinforcements of men and material are being transported to Cyrenaica by air. (British Embassy, London telegram, May 2) In the May 1st attack on Tobruk, the axis lost eleven tanks; four of these were lost in mine fields, four by fire from English tanks and at least 3 byMolotov cocktails (bottles of gasoline according to the Spanish Civil War example). The British lost twelve tanks; seven were knocked out and five broke down mechanically. (The British lost some tanks in Greece from mechanical troubles too.) (British Embassy, London telegram, May 2) According to our military attache in Rome, there are 23 axis divisions in North Africa (450,000 men). He reports that the Germans have five panzer divisions, two motorized divisions and one infantry division (about 150,000 men). The Italians have one armored division, two motorized divisions and twelve infantry divisions (about 300,000 men). (Comment: This 18 triple the forces our military attache and British Military Intelligence report as being in North Africa. Five German panzer divisions in North Africa would represent one half of the total panzer strength used against France last year.) 600 German and 450 Italian planes used in the Balkans are now free. The Germans have available for use in the Eastern Mediterranean, two air armies with a total strength of 1,500 combat planes. (Rome, Military Attache, May 2) 40 -2- Division of Monetary Research Iraq The Iraqui have put 22 British planes out of action. Surrounding the Habbaniya airport, the Iraq army has in position, one infantry brigade, one mechanized brigade of twelve armored cars and probably one mechanized machine gun company. (The total is not likely to be more than several thousand men) (British Embassy, London telegram, May 3) Spain Nazi troops have been concentrating in Occupied France near the Spanish border for about ten days. Actual entry into Spain has not been reported. (Vichy, Naval Attache, May 2) Russia The Italian ambassador in Moscow does not believe Germany will move against the Soviet Union this year. The Japanese military attache in Moscow states that the report of the transfer of the Russian 15th Army from the Far East to Western Russia is propaganda. (Moscow, Military Attache, May 5) While there are many rumors in Hungary of an imminent attack by Germany on Russia, our Belgrade military attache thinks this is unlikely. The German military and air attaches in Hungary are going home on leave to Germany for a month. It is, therefore, doubtful if anything important will happen in this area. On May 1st, another German motorized division passed through Budapest going north. (Budapest, Military Attache, May 2) German aircraft, artillery and other military supplies have been coming to Japan via the Trans-Siberian. (This explains whom the ban on military shipments across Russia was designed to hit--if the ban is enforced.) ( Tokyo, Military Attache, May 2) Balkans All kinds of ships, ocean-going, 8.8 well as Danube River ships, are being concentrated at Constantza, Romania. (This may be preparation for a naval-land expedition against Istanbul.) (Bucharest, Military Attache, May 2) Traffic on Danube has been seriously curtailed by the bridges destroyed at several Yugoslav towns. (Belgrade, Military Attache, May 2) 41 -3- Division of Monetary Research The total of British soldiers evacuated from Greece comes to 43,000 out of an estimated total of 55,000 to 56,000. Not more than 500 of those embarked were lost. (British Embassy, London telegram, May 2) England On May 1st, a lone German bomber dropped five bombs on the Whitehead factory (presumably a torpedo plant), Weymouth and interrupted production. (British Embassy, London telegram, May 2) Germany The Russian military attache at Budapest informed our military attache that the present German airplane production is 4,500 per month. (Belgrade, Military Attache, May 2) Italy The total effective Italian air force totals only 1,050 air- planes. Of these, 700 are land based combat planes; 250, army and navy reconnaissance planes; and 100 are seaplanes. (Rome, Military Attache, May 2) 42 BRITISH EMBASSY, WASHINGTON, D.C. Personal and Secret May 5th, 1941. Dear Mr. Secretary, I enclose herein for your personal and secret information copies of the two latest reports received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Halifax The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 43 Telegram received from London dated May 2nd, 1941. Naval. From "trynneck" 1 officer 26 ratings, from "Diamond" 10 ratings saved. 2. P.M. May 1st. single enemy aircraft dropped 5 bombs on Whitehead factory, Weymouth, production interrupted. 3. On May let Upholder Bank two north bound merchant vessels east of Kerkenah Island; Ladybird and Aphis were bombarding enemy Gasala area. Military. Evacuation operations from Greece 4. now reported complete, total number of army personnel got away about 43,000 out of total in Greece now assessed at between 55,000 and 56,000. of those embarked not more than 500 understood to have been subsequently lost. of 1700 Royal Air Force personnel, all but about 100 were evacuated. 5. During the night of April 30th/May 1st, enemy attacked Tobruk and penetrated southwest perimeter: morning of May 1st, 30 tanks were reported attacking in this area; at 2 p.m. battle was still in progress and 60 enemy tanks were reported within perimeter and were being engaged by our tanks and artillery. 6. Enemy Intelligence: anticipated German and Italian effort in Libya shortly to be increased. Strenuous efforts being made to bring up remainder of 15th armoured division to forward area and reinforcements of men and material being transported to Cyrenaica by air. Royal Air Force. May 1st. Blenheime attacked shipping off Holland, near miss made on 5000 ton tanker. 7. Rotterdam/ 44 -2- Rotterdam petrol storee successfully attacked by one airereft. 10 aircraft bombed Den Helder hitting power house and dook installations. One aircraft missing. 8. Night of May 1st/May 2nd. Bomber command operations cancelled but 5 coastal aircraft attacked Brest, 3 dropped mines there. 9. German Air Force. May 1st/May 2nd. 73 aircraft operated all but 2 against Liverpool area. No heavy damage caused and casualties not serious. Night fighters destroyed one bomber and damaged another. 10. Tobruk was bombed 6 times each day April 29th and April 30th. Two Junker 87s destroyed and two damaged by anti-sireraft fire. 45 Telegram received from London dated May 3rd, 1941. Nevel. A/8 trawler bombed sunk May 1st off start Point. During air raids Malta "Encounter" and "Ferney" were further damaged and one auxiliary minesweeper sunk. "Jersey" sunk by mine May 2nd. May 2nd. His Majesty's shipe in Persian Gulf were ordered to commence hostilities against Iraq. A 2. large troop convoy arrived at Sues a few days ago, two other convoys totalling about 200,000 tons have just arrived, and another totalling 164,000 tons due hortly. Military. Tobruk. Determined attacks by 3. enemy from direction of Aeroma on western perimeter throughout May let resulted in capture of our foremost defended localities on 5,000 yards front. Enemy tanks concentrating on infantry forward posts. Counter attack on with tanks, portion of enemy withdrew after losing 4 tanks in mine fields, at least 3 by Moletov Cooktaile and 4 knocked out by our tanks. Our losses during the day were 3 infantry and 4 eruiser tanks while additional 5 infantry tanks broke down mechanically. That evening counter attack by one battelion was unable, owing to enemy tank action, to restore all localities and general line was adjusted to exclude salient at K1 Medawar. 4. On the morning of May 2nd 30 medium tanks followed by two companies of infentry advanced against our new line but were stopped by artillen fire. 5. Irae. May 2nd. Operations began round Habbaniya aerodrome. Iraqi artillery fire continued in spite of active bombing but later subsided owing to suspected shortage of ammunition. Up to now we had suffered/ 46 suffered about 40 essualties. 22 of our aircraft were put out of action. Iraqi sirereft made unsuccessful bombing and machine gun attack on comp. Iraqi forces in this area are estimated at about 1 infantry brigade, 1 mechanised artillery brigade of about twelve armoured cars and probably one mechanised machine-gua company. Similar situation exists at Baara where an Iraqs battalion is reported dug in north of the town 6. with a pack battery guarding southern approach to the railway bridge on Basra-Baghdad railway. 7. Royal Air Force. May 2nd. Klenheims bombed 2 merchant vessels off Juiet. One vessel sunk and other set on fire. 8. Night of May 2nd-3rd. 119 aircraft despatched against Hemburg industrial centre (94) Emden Docks (22) and Rotterdam petrol stores (3). Four of our aircraft have not reported to base. 9. Meditorreneen. May let. Destroyer and merchant vessel were sunk and on May 2nd direct hite were soored on 3 merchent vessels and on a destroyer by Blenheims off wast of Tunis. 10. Eight of April 30th-May let. Bonghasi attacked, many fires started and amounition dump destroyed. 11. German Air Force. Night of May 2nd-3rd about 150 enemy sireraft operated, Liverpool area main target. Three aircraft destroyed by night fighters and one by anti-sireraft fire. 12. Tobruk attacked by dive bombers escorted by fighters on May let. Four ME 109a were shot down, one Hurricane being destroyed. CONFIDENTIAL Response of Code Ballagram Received as the - Department as 16001, m 2, 1942 - filed m 2, 19a. In my to your telephone 473, divisions - in - North Africa are as follows Italian Italian 5 2 2 Information Italian 12 (organized from elements of the Common 1 calorial police.) The Italian divisions are for the more part organized for motor transportation but have not organic transport enough to them. In addition, there is also the Regul Corps of calorial troge. the foress listed above are being inconced as troup - continue. six hundred - embar please and 450 Inslim catal planes have been relations by the alone of - in the Ballons. Year use in the Central and Eastern and in African, the edita present now have available 2 Commit air under. Their total strength is 1500 please, 1 and recents - ethandse provided for. The total effective forest of the Institut Air Peres amaist of 700 Land based - please 250 - CONFIDENTIAL 47 CONFIDENTIAL and many - planos 100 IS will be possible to enlarge the - air Suree as fast as fuel bates reach Africa for them. FIRKS - - of of Treasury Ohiof of state Assistant Chief of Staff, 0-2 - Plans Division office of must Debelligente Air Carge CONFIDENTIAL 48 49 CONFIDENTIAL Paraphrase of Code Rediegram Received at the Way Department as 9:41, May 2, 1941. Viola, filed New 2, 1941. According to official seuroes, concentration of East troops in occupied France near Spanish border has been in progress for about tea days, but actual entry of such troops into Spata has not been reported. LEANY Retribution Secretary of War State Department Secretary of Treasury War Plans Myseles Office of Naval Intelligence CONFIDENTIAL 50 CONFIDENTIAL Paraphrase of Code Radiogram Received at the War Department at 16:01, May 2, 1941. Budayeat, filed May 2, 1941. The Russian Military Attache has informed me that the present German airplane production is 4500 per month. River traffic on the Danabe and Tiese has been seriously ourtailed by bridges destroyed at Gombos, Ulvidek, Titel and Zente. K (The last two towns are on the Tissa). Many rumors here of imminent attack by Germany on Russia but it seems unlikely The German Military and Air Attaches are about to 80 on leave to Germany for a month, hence doubtful 1f anything important will occur in this area. Another German motorised division moved northward May 1st. None today. PARTRIDGE Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, a 2 War Plans Division Office of Naval Intelligence CONFIDENTIAL CONFIDENTIAL 51 Paraphrase of Code Received at the Year Department at BIST, New 5. 1941. Nencow. filed May 5. 1941. 1. The Italian Jabascador does not believe that will move against the Sovier Union this year. 2. The movement of the 18th have from the For Test is alleged by the Japanese Military Attache to be propagnals. s. The Japanese Assistant Military Attache to Noneou stated that be will depart from Nessew - May 8 to " with Naturaka on a mission to bring about better feeling between the United States and Japan. TRATON Retributions Secretary of War State Department Secretary of Treasury Uniter Secretary of Way Chief of Staff Var Plane Division Office of Naval Intelligence CONFIDENTIAL CONFIDENTIAL 52 Perephenee of Code Indiagnos Received at the New September as 9192, my 3, 1041. Tokyo, filed my a, 1961. No first head information this office about arrival is Jegan of military missions from - and Italy / - mission have left Japan for these countries. No move discornible as present which sight be interpreted as proporatory to military action whe Artisite , Triportite Fast though Japanese strength is Into-this, State and Forman reserved greater the normal wher Shine Mar contitions and my be there in restiness for more against Singapore or Best Indian. Also removed that Japanese navel - - Air Force strength increased Seigm. Not in position w evaluate those neers. - aircraft, artillary - other military expelies easing to Jagon via m. Distributions Secretary of State Department Secretary of Treasury Nater Secretary of the Shief of staff Assistant when of Staff, 6-8 Mar Please Division office of Nevel Intelligence CONFIDENTIAL RESTRICTED 53 Paragrams of Code Received as the w Department at Hino, - 2, 1942. Subherent, filed 14:20, - 2, 1941, All kinds of shipe, comming as will as these exployed - the I - being concentrated as Construction. This is considered veliable although the purpose for which this adipping is intented is not clear. RARAY Retributions -State of New Report Sessetary of Speciality Union decretary of Yes Ohiof of Staff Wear Plans Milition office of Naval Intelligence RESTRICTED 54 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 6, 1941 TO Secretary Morgenthau FROM Mr. Kamarok Suy thisand ta keep date inhilitymt Subject: Summary Tabulation of Royal Air Force Raids to May 1, 1941 (Based on Hanson Baldwin's Data) A. Number of Areas Attacked In Germany In occupied areas In Italy and Sicily Total 270 265 27 562 B. Analysis of Targets Number of Attacks Ports, docks and shipping Airdromes and seaplane bases Industrial plants 011 refineries, synthetic oil plants and tank farms Total of above 850 700 650 330 2,530 C. Leading Cities Attacked Number of Attacks Germany Hamburg (port) Bremen (port) 65 Wilhelmshaven (port) 48 Gelsenkirchen (synthetic oil) 43 Cologne (industrial center) Emden (port) Kiel (port) Berlin (industrial center) Mannheim (industrial center) Essen (industrial center) Hanover (synthetic oil) Total of above (11 cities) 62 61 44 39 39 36 33 33 503 55 -2- Division of Monetary Research Number of Attacks Occupied Areas Boulogne (port) Calais (port) Ostend (port) Flushing (port) Breat (port) Lorient (port) Total of above (6 cities) Italy Turin (industrial center) Naples (port) Total of above (2 cities) D. Total Royal Air Force losses in these raids to May 1 81 67 64 63 57 48 380 11 9 20 600 planes 56 MAY 5 1941 NEW YORK TIMES THE BATTLE OF THE AIR By HANSON W. BALDWIN The heavy German bombings of relatively little cost (average loss British ports continued last week of about thirty bombers, or ao with Liverpool and the Mereoyside companying fighters, a month, plus subjected to some of the most most of the air crews that man severe attacks of the war. Those continuing large raida against Britain are now made prob ably by from 200 to 500 planes-by no means the targest forces the Germans could employ, but forces that they can continue employing Indefinitely Raiding of this type by night, with small losses to the Germans, and with large port cities and dockyards. as the principal ob jectives- 4a having, and is certain to have cumulative effect upon the British war effort. On the other hand, there is another side to this picture: # presents many of the ottles of Germany blasted by bombs them). The R. A. F. offensive effort is still not equal in mass to the German thrusts, since It seems unlikely that the British are as yet able to send out from bases in Brkaln an examage of more than 100 to 250 bombers nightly. The British are hammering at widely dispersed targets, whereas the German are hitting at concentrated targets. Moreover, compared to the oparations of last year, the German raids now seem to have somewhat greater continuity of effort. Obviously. neither side has yet solved the problem of night bom and a small, but steadily increasing bardment, although the British toll of Nast night bombers. seem to have made more progress Official figures for the first twenty months of the war, up to May 1, just made available from Britaih show that British aircraft have bombad over 270 areas in Germany, 265 others in German-occupied terri tories and twenty-soven in Italy and Bictly, . total of 582-objectives. The figures show the British preoccupation with the so-called invasion ports and German submarine and naval than have the Germans. The Brit ish, since the beginning of this year, have shown growing confidence in their air strength and apparently have conducted more day light sweeps against near-by objec- tives, such as Invasion ports and enemy airfields, than the Germans. Losses More Nearly Equal The air losses-because most of the action has occurred a night bases that have been halded are more nearly equalized than they odly and heavily by the Royal Air Force. The total number of raids on ports, docks and shipping is were last THAT when in the great daylight air battles over Britain the Germans lost two to four times the Boulogne has been bombed 81 times. Calais 67, Hamburg 65, Os tend 64. Flushing 63, Bremen 62, British 48, Emden 44 and Kiel 39 times. Barlin has been bombed 39 times. Naples 9 times and Turin 11 times. There have been some 650 raids on Industrial plants, 61 of them on Co logne, 88 on Mannhelm, 33 on Essen. Blows at Nast on Supply The British continue-to-blast AWAY at Germany's on refineries, synthetic all plants and tank farms, although not with the same intensity as at other targets. Three hun- dred and thirty raids have been made on these objectives, 43 of them against Gelsenkirchen. 33 against Hanover. German airdromes and seaplane bases have been bombed 700 times. In all of these raids the British have lost since the war started about 600 planes, including fightors on offensive sweeps, and have destroyed on the ground or shot The British estimate that the Germans have lost about 3,300 aircraft during the course of the war and 7,700 trained airmen. But only a very small portion of this number has been lost since the major air battles of last year tapered off in October and November. In the ontire month of April eighty-seven German raiders were shot down over the British Inles, according to British official figures, as compared to the 100 to 200 lost daily in some of the air battles of last September. The figures for German planes shot down over Britain this year have been officially estimated by London as follows: Cause April. March Feb Jan Night fighters. Anti-aireraft : Breat 57. Wilhelmshaven 48, Lorient number of planes lost by the 11 Other methods a about 850. Total ST 44 14 15 The indicated increases in losses is not a relative one. since obviously a great many more German planes down about 140 German planes that were raiding Britain during April than during the bad weather of attempted to intercept them. January. All of this presents a picture of considerable damage to Germany and German-occupied territory at It is likely that both sides are able to more than replace their total losses in planes and pilots. - CONFIDENTIAL 57 Paraphrase of Code Radiogram Received at the War Department at 14:00, April 25, 1941 London, filed April 25, 1941. I. Daily Cable. 1. British Air Activity over the Continent. a. Daylight of April 24. Fighter squadrons effected three offensive patrols over Occupied France attacking airfields. Two freighters were sunk off the Norwegian coast. b. Right of April 23-24. No results were observed after an attack by 67 heavy bombers on the two German battleships in the harbor at Brest, All British planes returned safely. A direct hit on one of these battleships in a recent raid has been claimed. The battleship was probably damaged. Le Havre was attacked by the Coastal Command. 2. German Air Activity over Britain. s. Night of April 24-25. German raids over Britain were widely scattered and on a reduced scale, chiefly over England, with a few planes attacking targets in Scotland. be Daylight of April 24. There was very little German air activity over Britain except for strong defensive patrol of the Dover and Calais area and attacks on shipping. 3. German Air Losses, British Theater. s. Might of April 24-25. British night fighters damaged two planes. CONFIDENTIAL CONFIDENTIAL 58 4. British Air Activity Middle East Theater. a. Libya. (1) Daylight of April 24. Planes based on Egypt continued fighter and bombing attacks on Axis landing fields, motor conveys and supply dumps at Gasala, Bengasi and Derna. (2) Tripoli airport was again bombed by plazes based at Malta. be Greese. (1) Daylight of April 24. No British air operations are reported. Substantially all British combat planes have been evacuated from Greece and are now based on Egypt or Grete. 5. German Air Activity, Middle East Theater. s. Daylight of April 24. German air activities were on a minor scale except in Greece where the rear communications of the British forces as far as the Greek coast and particularly the roads Thebes and Gorinth to Kleusis were subjected to heavy and uninterrupted bombing. 6. German Air Losses, Middle East Theater. so Daylight of April 24. One German plane was destroyed in British raids on Libyan supply facilities and landing fields. b. Night of April 23-24. In the course of raids on Plymouth, HMS LENES, destroyer, (1918) 1090 tons, was severely damaged. 7. Greece. a. Night of April 23-24. In raids on Pirasus harbor, German planes sank one CONFIDENTIAL CONFIDENTIAL 59 destroyer and damaged a second and a hospital ship. Two other hospital ships were damaged; one off Missolonghi and the other off Megara. II. The following is a summary of British Intelligence information to to 07800, April 25, 1. In Italian East Africa the advance of British forces continues successfully. 2. Greece. s. It is reported that 2 German Air-borne Division has been placed at the disposal of the High Command in Greece. It is thought that it will probably be employed against Grate or Athens. be An attack by a German Mountain Division was reported re- pulsed on the British front. a. Small enemy parties were reported to have landed on Euboea, but later withdrew. d. Small detachments of Germans have entered Prevesa. e. German gun explacements are being prepared on the shore of the Gulf of Lamaikos. 3. Libya. a. Sollum, British offensive night patrols are continuing with success. b. Tobruch. Ten Axis trucks loaded with troops, 8 planes and 3 guns were destroyed by British artillery. LEE Distributions Secretary of War State Department Secretary of Treasury War Plans Division Office of Naval Intelligence Air Corps Assistant Chief of Staff, G-3 CONFIDENTIAL 60 RESTRICTED M.I.D., W.D. G-2/2657-220; No. 376 12:00 M., April 26, 1941. SITUATION REPORT I. Western Theater. Air: German. Attack of moderate intensity was made on Sunderland on the night of the 25th-26th. British. Normal attacks on northwestern Germany centering on Kiel. A light raid was made on Berlin. II. Greek Theater. Ground: German troops have reached Thebes. British forces, presumably covering the evacuation, are reported making a last stand on Mount Kitheron and Mount Gerania. Air: No change. III. Mediterranean and African Theaters. Ground: North Africa. A German attack on Tobruk was repulsed. Patrol actions are reported in the Sollum area, Abyssinia (Ethiopia). The British have continued pressure on the Italians at Dessye and near Gambela, capturing several hundred prisoners. Air: Axis. Attacks on ground forces near Sollum. Malta was bombed. Attacks on shipping in the eastern Mediterranean. RESTRICTED 61 RESTRICTED Purphrase of Code Cablegram Received at the War Department as 09:09, April 26, 1941. Jakara, filed April 25, 1961. Orders have been issued for the Anny Service and the Reserve officers' School to move at ence from Constantiaople to the interier of Tarkey, Certain individuals connected with the schools, new on sick leave, have also been ordered to move. The two movements have emared a fairly serious congestion of the Kylarpasha railhead. This action is of a procentionary nature. KLUSS Mstribution: Secretary of Mar State Department Ascretary of Treasury Under Secretary of War Assistant Chief of Staff, G-3 Var Plans Mission office of Neral Intelligence RESTRICTED 62 RESTRICTED M.I.D., W.D. G-2/2657-220; No. 377 12:00 M., April 28, 1941. SITUATION REPORT I. Western Theater. Air: German. Offensive activity on a significant but reduced scale. The Liverpool area was bombed on the night of the 26th-27th. Last night the main effort was delivered against Portsmouth. Effective attacks on shipping are claimed. British. Normal offensive activity. On Saturday night Hamburg was attacked heavily. Direction of last night's effort is undisclosed. Yesterday a small daylight raid, probably experimental, was made in the Cologne area. II. Greek Theater. Ground: German troops occupied Athens on April 27. This force comprised one armored and one motorized infantry division. German parachute troops captured the isthmus of Corinth on April 26. A German column crossed the Gulf of Corinth from Missolonghi on April 27. This column then captured Patros and Pyrgos. How the crossing of the Gulf was effected is not known. The Italians have occupied the island of Corfu. British forces are reembarking from Nauplia and other Peleponnesus beaches. Air, Continuance of German close support plus attacks on shipping used in the British evacuation. III. Mediterranean and African Theaters. Ground: North Africa. Axis units on the evening of April 26, crossed the Libyan-Egyptian frontier at several points. It is impossible to state at this time whether the Axis offensive is underway or whether this action is merely a reconnaissance. Abyssinia (Ethiopia). British forces closing in from the north and south have occupied Dessye. Air: No reports of important operations. RESTRICTED 63 RESTRICTED M.I.D., W.D. 12:00 M., May 7, 1941. G-2/2657-220; No. 385 SITUATION REPORT I. Western Theater. Air: German. Glascow, Liverpool and the Clyde were attacked again. Air oombat was reported along the Southeast coast and the British claimed nine Messerschmitts shot down. British. Fires started at Hamburg and Le Havre. II. Mediterranean and African Theaters. Ground: North Africa. No special change in the situation. East Africa, British troops have occupied Quoram, about thirty miles south of Amba Alagi. Air: Axis. Tobruk raided and one ship sunk in harbor. British. Raids on axis bases in Eastern Libya. III. Iraq and the Arab World. Iraq forces driven from Habbania airfield, west of Baghdad. Nine British bombers and two transports destroyed on the ground by Iraq bombers. A watch is being kept for Axis transports carrying troops to Iraq or preparing to land troops in Syria. The pipe line to Haifa is in Iraq control only at Kirkuk, Fort Rultah and two minor points, but these are important junctions of transportation also. RESTRICTED CONFIDENTIAL 64 Persphrase of Code Cablegram Received as the War Department at 18:43, April 25, 1941. Lisben, filed April 25, 1941. Another Infantry Bettalion sailed for Marta (Assess) on April 24. GAIN Distribution: Secretary of May State Department 7 Secretary of Treatury Under Secretary of Mar Assistant Chief of Staff, as Wax Plans Division office of Neval Intelligence CONFIDENTIAL: 65 RESTRICTED Paraphrase of Code Ballogram Received at the War Department as 18:41, new 5, 1941. Askers, filed May 5, 1941. the tone of the Turkish press toward Generay is less belligerent. There are appearing articles on England which are mildly critical. KLISS Destribution: Secretary of Yes State Department Secretary of Treasury Var Plans Division office of Naval Intelligence A. c. of s., as RESTRICTED CONFIDENTIAL 66 Paraphrase of Code Cablegram Received at the War Department at 16:00, April 26, 1941 Berlin, filed 16:30, April 26, 1941. 1. Germany has had unusual success in handling her supply situation in all campaigns. The principles underlying her supply operations have been in general enunciated in Report No. 16833. However, under the stress of war there have been some slight moderations vis: 2. The National Socialist Motor Corps has created members of motor transport and traffic regulation battalions. 3. The "Todt" organisation (G-2 Note: The organisation which constructed the West Wall) has created a large number of labor units to assist the pioneers in repair and maintenance of roads. 4. fir superiority has also been a major factor in the success of the German supply operations. This air superiority has prevented the enemy from interfering seriously with the movement of German supply column, and has permitted the Germans to avoid time consuming precautions against enemy aircraft. 5. I desire to stress also the following points in the German methods. 6. All manufacturing, transportation, and supply institutions are under military control. 7. Supplies are distributed in depth. 8. Reserves are maintained at all time. 9. Loading is done in such a way as to avoid unnecessary rehandling. 10. Column are protected by mobile antisireraft guns. CONFIDENTIAL CONFIDENTIAL 11. Coordination and cooperation of all units and agencies; rail, water, and air; to transport the appropriate material, when and where needed. Able and energetic leadership. 12. The existence of an organisation for the prompt seisure of supplies and exploitation of factories in occupied territory. 13. Depots are placed in peace in areas suitable for projected operations. PEYTON Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence Assistant Chief of Staff, 0-3 Assistant Chief of Staff, 0-4 Quartermaster General CONFIDENTIAL 67 68 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 7, 1941 TO Secretary Morgenthau FROM Mr. Kamarok abject: Summary of Military Reports, May 7 England A new cruiser, Sirius, being completed at Portsmouth, was hit by A bomb on the night of May 3-4. During the same night, 8 total of 270 German bombers operated over England. The Central Railway Station at Liverpool was forced to close temporarily. Production at the Vickers Armstrong Naval Construction Works at Barrow in Furness was seriously affected. In the raid of May 4-5 on Balfast, the shipyards and the Shorts aircraft factory (probably building Short Sunderland flying boats) were damaged. (British Embassy, London telegrams, May 4, May 5) Turkey According to our Military Attache in Bulgaria, there are various indications (unspecified) that a Turkish-German agreement has been reached. The Turkish Military Attache in Sofia, however, 18 sure a stand will be made against Germany. (Sofia, M.A., May 5) There are stories in Ankare that the Russo-Turkish frontier has been closed but these are denied. The German consulate at Istanbul is reported to have acquired 40 edditional "assistante" recently. The Germans and the Turks are cooperating in rebuilding the bridges that were blown up by the Greeks on the Turkish frontier. (Ankere, M.A., May 5) Irac Iraq forces have seized three towns on the pipe line to Haifa. At Basra the British have driven the Iraqui back from the airport, power station and docks. (London, M.A., May 4) 69 -2- Division of Monetary Research Balkans German troops are reported to be moving northward through Romania. (We have had reports of movement northward through Budapest.) (Sofia, M.A., May 5) The total number evacuated from Greece comes to 51,640. (This may include Greeks in addition to the 43,000 English reported a few days ago.) (British Embassy, London telegram, May 4) Libya - Egypt According to Vichy estimates, the axis has 11 divisions in Libya. Of these, two are German panzer divisions and one a German motorized division. (This is less than half the 23 divisions our Rome Military Attache reported.) The axis is estimated to have 500 airplanes in Libya; 200 Italian, 300 German. (Vichy, Naval Attache, May 3) British planes from Malta bombed an axis convoy; one destroyer was sunk, one damaged; one cargo boat was sunk and three damaged. (London, M.A., May 3) 70 BRITISH EMBASSY, WASHINGTON, D. May 6th, 1941. Personal and Secret. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Halifax The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 71 Tel egram from London dated May 4th. Nayal. None Waters. Night of May 3rd/4th. Mis Majesty's Crusser "Sirius" (completing) hit by bomb at 1. Portsmouth. 2. Damage also done to dookyard. North Aglantic. Italian ship (5,600 tons) with fuel oil for Brest intercepted 350 miles from North Asores and has sunk. French ship (3,500 tons) intercepted by Ocean boarding vessel on May lat arrived at Gibrajtar. Attacks on Shipping. May 3rd. Two convoys bombed off East coast, one Norwegian ship (13,050 tone) being sunk 3. and one (1,150 tons) damaged. 4. British ship (7,310 tons) independently inward bound reported being fired on by U-Boat 450 miles from west Iceland (c.). 5. Total numbers evacuated from Greece 51,640. 6. Royal Air Force. Night of May 2nd/3rd. 81 tons of H.E. (including 7 very large bombs) and 12,500 incendiaries dropped on industrial centre of Hamburg with good results in clear weather. Enden (16 tons) and Rotterdam petrol, harbour also attacked, fires started. 7. May 3rd. Blenheims obtained hits on 2,000 ton cargo ship (stern awash) 500 ton trawler (down by the bow) and 5,000 ton cargo ship (damaged) in Channel. 8. Night of May 3rd/4th. 144 aircraft despatched to attack Cologne industrial area (101) Breat (Scharnhorst and Gneisenau) (33) Rotterdan (9). All crows returned safely. 9. Libya. Night of May 1st/2nd. Wellingtons bombed Benghasi harbour and M.T. near Derna. 10. Iraq. On May 2nd and May 3rd. Wellingtons attacked Iraqian forces Habbaniya and bombed enemy positions. Landing grounds still in use by our aircraft. 11./ 72 11. Night of May 3rd, May 4th. 270 bombers operated. Our night fighters destroyed 12, probably destroyed another two, damaged two. One Spatfire destroyed. 12. Home Security. Night 52 May 2nd, 3rd. Casualties Liverpool, reported 60 killed, 121 seriously injured, Birkenhead 10 killed and 11 seriously injured. Night of May 3rd/4th. Merseyside heavily attacked, Liverpool 150 aircraft, Portamouth 15, Damage Liverpool and Bootle again severe, and fire situation at one time serious; 13. Clarence Dock Power Station and Lister-Drive Power Station involved, details not yet available. Feared casualties heavy. 14. German Air Force, May 3rd. fined to patrels in the Straits. over Dungeness. Enemy activity con- Enemy aircraft destroyed 73 BRITISH EMBASSY, WASHINGTON, D.C. May 7th, 1941 PERSONAL AND SECRET Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary Very sincerely yours, Halifex The Honourable Henry Morgenthau, Jr, United States Treasury, Washington, D.C. 74 Telegram received from London dated May 5th, 1941. Naval. Parachute mine dropped in Waveney Dook Lowestoft night of May 3rd and 4th. Sank one N/S trawler and damaged an A/P trawler. 2. Gloucester on passage in Mediterranean was bombed and damaged April 4th (sic). 3. During air raid on Liverpool night of May 3rd/May 4th the "Adventure" minelayer slightly damaged, eight merchant ships sunk OF burnt out and one damaged. 4. Two convoys on the East Coast night of May 4th/May 5th bombed without damage but South Down shot down one enemy aircraft. 5. Military. Libya. Counter attacks by our troops Tobruk on night of May 3rd/May 4th unsuccessful owing to the enemy's bold use of tanks, machine guns, flame throwers. Enemy casualties thought severe. 6. Dump of Royal Air Force bombs abandoned seven miles east of Sellum destroyed by our patrols during night of May 2nd/May 3rd. 7. Iraqi reinforcements which have reached Samawa on Euphrates by rail from the North likely to be used to attack our camp at Shaiba and Beare port area. Rashid Ali has informed His Majesty's Ambassador that if any Government building in Bagdad is bombed buildings in which British subjects are collected will be bombed. 8. Royal Air Force. Night of May 4th/May 5th. 97 aircraft sent to battle eruisers at Brest, ten to Havre and nine to Rotterdam and Antwerp. All returned safely. 9./ 75 9. Ires. May 2nd. Aircraft from our flying training school carried out nearly 200 sorties - 16) tone of bombs dropped on enemy gun emplacements, troops and transports around Habbeniye. We lost 2 aircraft in the air, 2 on the ground and others damaged on the ground. 10. During the night May 2nd/May 3rd Wellingtone attacked Baghdad aerodrome causing heavy damage to buildings and aircraft and in daylight attack May 4th destroyed 24 enemy aircraft on the ground; during these operations one enemy fighter shot down, 2 more unconfirmed. 11. German Air Force. Night of May 4th/May 5th. Estimated 220 aircraft operating mainly against Liverpool, Belfast and Barrow areas. About 15 others against shipping and 25 enemy night fighters over East Anglis. Preliminary reports indicate that our night fighters destroyed two, probably destroyed 3 and damaged 5 more; anti-aircraft shot down one. 12. Malta. Night of May 3rd/May 4th; during raid by about 40 aircraft considerable damage done to military and civilian property; one enemy aircraft shot down and another damaged by anti-aircraft fire. 13. Home Security. Night of May 3rd/May 4th; Liverpool. This raid heaviest yet on Merseyside. Central Post office was burnt and there were many other large fires. At 8.00 D.M. on May 4th several were still visible. The Central Railway Station is temporarily closed, as well as several local lines on account of debris and unexploded bombs. Casualties at present 406 killed and 641 seriously wounded. Barrow in Furness Production/ 76 -j Production at one Vickers Armstrong Naval Construction Works said to be seriously effected. 14. Night of May 4th/5th. Belfest; large fires were caused in the city and damage occurred in shipyards and at Shorts aircraft factory. CONFIDENTIAL Paraphrase of Code Cablegram Received at the War Department at 24:36, May 5, 1941. Sofia, filed May 5, 1941. I have is entrastworthy authority that the Germans are moving troops northward through Remania and Dadspost. The Military Astache of Turkey here again assures me that the Turks will stand firm against the passage through their country of the treeps of any other state. In spite of that, however, there are various incidents which suggest an agreement with the Gernans. JAININ Distributions Secretary of Var State Department Secretary of Treasury Under Secretary of Wax Chief of Staff Assistant Chief of Staff, as Var Plans Division Office of Naval Intelligence CONFIDENTIAL 77 78 CONFIDENTIAL of Date Ballagree Received as the - Department as 9165, they 5, will Amburn, filed my no 1941. Hear Disortin a reitroed better was Mom - w the Breaks during the German attack. Also two retireed besigns over the Motion River. - - of the widges - Mituse (Addition(s) that the There helped is this, although they strongly day having - so. n is - agreed that the - will provide materials - the There will previse laborare for repairing the - - premise that they will - no - of the reitroed Line so wing either minitions of - or soldiers to Break territory. as present, freight is being seas w my of the I and Tarkish freight is being given abroad priority. Shortee are going about regarding a electing of the Stratter, but most with vigwors dentals. I have good - to believe reports reaching as way that the - I have taken About so additional assistants have Joined the - consulate as during recent water, according to reports. Detributions Secretary of War State Department Secretary of Treasury Union Secretary of Mar Chief of Staff Assistant Chief of staff, 6-8 Year Please Division office of Meral Intelligence CONFIDENTIAL CONFIDENTIAL 82 Paraphrase of Code Radiogram Received at the War Department at 20:03, May 5, 1941. Visity, filed May 3, 1961. Airplanes in Likya estimated as followst Italian 2001 German 300. Axis treeps in Libya estimated to be as follows:- German Divisions - a Mechanised, 1 Materised: Italian Divisions - 1 Mechanised, 2 Materized, 5 Infentry including one Black Shirt Division. Some sources not German Divisions at 2 Mechanised and 4 Infantry, but this is thought high here. LEARY (Netel- Above estimates from Vichy are far below those of recent date by N/A. None, who is believed to be a more accurate source for information on this particular matter.) Distribution: Secretary of Mar State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, G-3 Mar Plans Division Office of Naval Intelligence CONFIDENTIAL CONFIDENTIAL 83 I of Cafe - Received as the the Department as 7:50, - 3. will 1. Air - the - filed 18055, my so a Boylight, - e. the offensive - - enerted on along the cusas of Thomas w British sighter please. R Anto - chipping off the const of Holland we benefits w British notion business please. so . security, - Aste - and - five - a - - we b. night of My 2.8. Five please of the British Genetal - one mide - the too 86,000-000 - Buttleshipo - and as the part of Breast. Minure weather continions I the / a. - Ate - of all nights of please of the Busbor Commont. s. might of my S-3. - widely organized please in the missing - subjected se - suide was the - - - again as - River desire and Day. s - my a. A well nuter of - please were platted - Borth Ireleas in the region and along the southern coast of Britain. Defensive patrels were material w the - along the Treach - as Salate - - the Streite of Dever. & CO ENTIAL CONFIDENTIAL 84 3. - in the States. s Bestish. there - as separate of Britten I w- 4. Art - mg of my s-3. - plano - whos I w antistreet write - - was brongies down w Bottled night signature. s Maile. Britten please I - mile carried - a word - - hate - is the - during which - Anto - was lamages, - destroyer ami, three - boats d and - - bees s Miya. as Schools British signature please - - the city - patrol date. Britten busburs energe w wide - Aste staffelde - solate as Accum, Seates - Bengast. 5. tata Ate Activities maile Bash. a. Mile. A total of - please was - in - attack - the tobach - ets other - please took you is another sold. only alight I has been reported. s Miles. - Give busbare cooperated with Indiana and I water is - abless - School. 6. Attention - to the mass s British. there - m reports of British abroads I + CONFIDENTIAL 85 CONFIDENTIAL Anto. - Aste plano taking past in the attack - miss - about ats - please - destroyed in T. A small - of Impo eteplesse abducted the - atefield with fine - be British busburs in I e and a weld on the Though Avesilony positions from which the / staffeld is being abotted. Distributions of - State Department Secretaryof of /- Office of Staff Assistant Ohior of Statt, as - Please Division office of Intelligence Air Garge as CONFIDENTIAL CONFIDENTIAL 79 Paraphrase of Code Cablegram Received at the War Department at 08:12, May 4, 1941. London, filed 14:20, May 4, 1941. 1. Britteh Mr Activity ever the Continues, A. Daylight, May 3. Four fighter missions were performed over Occupied France, and bombers attacked and sunk one Axis freighter and one trawler. Another freighter was set on fire. b. Night, May 2-3. Hanburg was heavily bombed by a large number of planes, and lighter attacks took place over Baden and Betterdan. Five Havees attacked airfields in Occupied France. 2. Garnaa Are Activity over Britain. a. Hight, May S-4. Liverpeel harber and vicinity was again the principal target of German attack, other planes being active over London. b. Daylight, May 3. German air activity was on a reduced scale principally ever the Thomas Naturary, Gardiff and the coasts of Yorkshire, Dorset, Deven and Kent. 3. German Air Lesses British Thester. Eight of May 3-4. Night fighters shot down three German planes and damaged a fourth. CONFIDENTIAL CONFIDENTIAL 80 4. British Mr Activity Middle last Thester Meter transport in the vicialty of Deras was bombed by British planes as was also the harber of Dengasi. Dembers and fighters attacked 100 motor vehicles in the vicialty of EL Mem and destroyed thirteen. Many more were damaged. 5. Garma Air Activity Middle last Thester. a. Idhya. Daylight May 3. Air operations were confined principally to air trans- port flights. 6. The following is British Military Intelligence inform tion received to 07:00, May 41 s Illiya, May 3. British artillery breke up an Axis concentration of tanks and Infantry at Tobrak. Further extensive operations on a large scale are expected. 1. Iraq, Daylight, May 3. The Iraq forces which have attacked Habbaniya airport are still in position on the height surrounding it and are shelling the British defenses. Gasualties to the British are about 40 and two planes have been destroyed on the ground. The Iraq forces have seised Batbah, Kirkuk and Baiji on the pipe line to Haifa. In the visinity of Basrah the British have driven the Iraq forces back from CONFIDENTIAL CONFIDENTIAL 81 the airport, the power station and the deaks. British bembers have destroyed four pieces of Iroq artillery in the defense of 1 Kabbeniya. LINE Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Ohiof of Staff Assistant Chief of Staff, G-3 Var Plans Division Office of Naval Intelligence Air Corps as CONFIDENTIAL 86 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 8, 1941 Secretary Morgenthau TO Mr. Kamarck FROM Summary of Military Reports Subject: England The Port of London 18 still operating though on a reduced scale. Out of thirty shipyards noted, one-third were serviceable. Warehouses had been damaged by fire. There were no sunken shipe to be seen. From a tour of the East End of London, the most outstanding impression received was the absolute refusal of the laboring population to be discouraged or terrified. (London, Military Attache, May 5) Greenland The Germans are concentrating troops and shipe at Kirkenes in northernmost Norway. This may be for an invasion of Greenland (or Russia). (Helsinki, Military Attache, May 6) Spain The French believe an attack on Gibraltar is impending. A trainload of German "tourists" with anti-aircraft guns and spare parts for Stukes has recently entered Spain from France. (Vichy, Naval Attache, April 26) According to the Spanish Military Attache in London, Spain could offer no effective resistance to passage of the Germans if they wish to move through Spain. He believes the Germans could reach Gibraltar in 48 hours from France and shortly the reafter close the Straits to ships by artillery fire. (London, Military Attache, May 5) Russia On April 27, 2,500 German soldiers, two armored cars, tractors, motorcycles and motor vehicles landed in Finland. (The Finna state that only 1,500 unarmed German soldiers landed in transit across Finland.) 87 -2- Division of Monetary Research Finnish military authorities anticipate a German-Russian clash. Other sources doubt the sincerity of the German promise to assist Finland against Russia. (Helsinki, Military Attache, May 6) Military circles in Romania believe that the next German move after the Turkish question is settled will be in Spain or against Russia. The indications are that it will be against Russia. The German military base was established in Romania primarily against the Soviet Union as the Germans, until recently, did not believe they would have to fight in the Balkans. The scale of German preparations in Romania can only be directed against Russia: there are twelve divisions in Moldavia alone. According to the French Air Attache in Bucharest, the Poles have been offered an independent Poland if they will cooperate in a war against Russia. Finland and Sweden will cooperate. The main attack, it is believed, will be along the line Wareaw-Moscow, secondary attacks through the Baltic against Leningrad and from Romania towards Odessa. The earliest date mentioned for the attack is May 15. Our military attache, however, believes this to be too early. (Bucharest, Military Attache, April 25) Turkey An important Turk stated that Turkey is directing her efforts to preserve herself from partition between Germany and Russia. The English have lost considerable prestige and acquired the reputation of being lavish in promises but stingy in help. A well-informed Englishman in Ankara states that he has little hope that Turkey will take part in hostilities. The German conquest of the Greek islands leaves only three ports available to the British in Turkey and these have relatively small facilities for shipping. (Ankara, Military Attache, May 3) Syria According to a French official, there are only 25,000 soldiers (white and colonial) in Syria with a limited supply of munitions. (Ankara, Military Attache, May 3) CONFIDENTIAL 88 Paraphrase of Code Cablegram Received as the War Department at 09:19, May 5. 1941. London, filed May 5, 1941. 1. In conversation with Colonel Berra, Spanish Military Astache here, % was informed that Spain has no interest in entering the war but has not enough armed force to oppose the passage of Germans if and when they elect to move through the country. Colonel Barra is an ex-Artillery officer with Military Intelligence experience. No is of the opinion that the German could reach Gibraltar with artillery from their present concentrations in the region of the Pyrences in 48 hours by read. Within a short time thereafter they could dony the passage through the Straits by employing mobile medium artillery from gun positions other this Gibraltar. 3. On May 3d I made a tear of inspection through the East End of London which had again suffered severe damage in the recent heavy air raids. Thousands of homes of latering class families have been rained and other thousands will require repair before they ean be need as living quarters. The most outstanding impression one received is the absolute refusal of the East Had laboring population to be discouraged or terrified. The only exception to this is that a majerity of Jewish shops have been evacuated from Stepany. I talked with an Air Raids Presention Controller who is a Scotch Preshyterian Minister with an East Had pasterage. He denied that there was any evidence of subversive or defeatist activity in this district where is would naturally be expected. He said that any CONFIDENTIAL CONFIDENTIAL agitators that night have existed at the beginning of the was have either been run out or have changed their views in the course of air raids and bombing. 3. In the course of a tour of the deek area, 10 was noted that out of thirty shipyards one-third were serviceable and from them large freighters were unleading. One of these was a wheat ship which was discharging into elevators which had not been damaged. There were two laden with American steel. Mush damage by fire had been done among warehouses but there were no sunken ships to be seen and it is evident that the Port of London is still operating although on a reduced seale. Distribution: Secretary of War State Department Secretary of treasury Under Secretary of Mar Chief of Staff Assistant Chief of Staff, 0-3 Var Plans Division Office of Neval Intelligence a-3 as CONFIDENTIAL 89 CONFIDENTIAL Paraphrase of Code Ballogram and Cablegram Received at the Mar Department at 19:17, April 25, 1941. and 9:24, April 26, 1941. Respectively Visity, filed April 25, 1941. Vishy, filed April 26, 1941. French epinion holds that attack on Cibraltor, with Spanish aid in Peninsula and in Spanish Nerosse, is impending. From official source we are informed that a trainload of "teurists," with certain amount of Antiatrematt Artillery and Studen spare parts. entered Syala from Mondays recently. IMANY Distributions Secretary of Mar State Department Secretary of Treasury Under Secretary of War Assistant Chief of Staff, as Var Plans Division Office of Naval Intelligence CONFIDENTIAL 90 CONFIDENTIAL Paraphrees of Code Ballogram Received at the May Department as 20124, May 6, 1941. Helsinki, filed 14148, May 6. 1941. Three special daily trains transported Service troope and supplies to railheads from leading parts. On April 27th, 5 German shipe discharged 2800 troops, two senered ears, treaters, 60 motorcycles, meter vehicles. Finnish military authorities anticipate Berma-Dussian elash seen. Concentrations of Genesa treeps and vessels at Kiskenes eas be directed against Grossland. Other sources doubt sincerity of German promise to assist Finland. Metributions Secretary of Mar State Department Secretary of Treasury Union Secretary of War Chief of Staff Assistant Orief of Staff, as War Plans Division office of Naval Intelligence CONFIDENTIAL 91 92 CONFIDENTIAL Paraphones of Code Cablegram Received as the Var Department at 15133, April 25, 1941 Decharest, filed April 24, 1941. Having settled the Turkish question either diplomatically or by military measures, the next move w Germany will be in Synia or against Russia. Indications here centime that is will be against Basela. I - still of the epinion that the German military base was established in Imments primarily against the Seviet Union as the Germane until recently did not believe that 11 would be necessary for them to fight in the Ballans. At present there are is German divisions in Neldavia. Preparations on such a scale can be directed only against Jussia. The movement of German troops into Remania continues and Demanisa units are being shifted to the east. New playing a lone hand, I have last count temporarily of the nmmer of German divisions in Rumania proper. Military thought in Dusharest believes the German operations will be as follows: (1) Main effort direction Vareev-Nessew (2) move through the Baltis against Lemingrad; and (s) from Imments towards Odesea. Finland and Sweden will cooperate. A Swedish Military Attache has been appointed for the first time to Dustanest. While the German any moves adress them, Slevakia, Hangury and Banania will defend their respective freatiers. The French Air Attache here reports that the Feles have been offered a small independent Poland if they will cooperate against Russia. CONFIDENTIAL 93 CONFIDENTIAL The earliest date mentioned here for the opening of this compaign is May 15th. to me this appears wash too early. I believe that before an attack will be leanched met of the Germa attack divisions will be brought to from Greese and Togoslavia, wiless of course Germany has same as yet undisclosed employment for her foress in the eastern Mediterrasona. RATAY Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War Assistant Chief of Staff, G-3 Mar Plans Division Office of Naval Intelligence CONFIDENTIAL 94 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 9, 1941 Secretary Morgenthau TO Mr. Kamarck FROM Subject: Summary of Military Reports - Crete British Military Intelligence 18 of the opinion that an attack on Crete may be expected at any moment. (London, Military Attache, May 3) Syria The axis mission in Syria is reported to be preparing an airfield for large scale use, presumably for air-borne German troops. The French commander in Syria intends to resist attack but the morale of his soldiers is low. (Total force, 25,000 with limited munitions) (London, Military Attache, May 3) Russia According to a well-informed German officer in Moscow, the German diplomatic and military moves regarding the Soviet Union are all bluffs. The purpose appears to be to hold Soviet troops stationary and to force future concessions to Germany. (Moscow, Military Attache, May 6) German and Romanian troops are concentrating on the Russian frontier. Unofficially, it is reported that there are 18 German and 14 Romanian divisions in Moldavia (600,000 men). Maps of Bessarabia and southern Russia have been issued to the Romanian troops. All factory equipment is being evacuated from the border areas. The oil town of Buzau 18 being guarded by 200 German planes. The Romanians have refused to permit the American military attache to visit Moldavia and Constantza (seaport where concentrations of German troops and shipping have been reported.) The Russians are likewise evacuating all supplies from south Bessarabia according to refugees. (Bucharest, Military Attache, May 6) 95 -2- Division of Monetary Research According to an excellent source, two German panzer divisions are moving through Vienna towards Poland. (Berlin, Military Attache, May 7) (Comment: We have received reports now from every capital on the western border of Russia - Bucharest, Budapest, Berlin, Helsinki - telling of German preparations against Russia. The only counter reports have been from axis sources in Moscow that the preparations constitute a bluff and a lone report from our Budapest attache that he does not believe there will be an attack soon. It might be possible to dismiss the opinions of the axis representatives in Moscow 8.8 a part of the plan designed to lull Russia off guard. In my personal opinion, it 18 not likely that Germany will invade Russia now. The invasion may come later and the present maneuvers can, therefore, be regarded as equivalent to the two German rehearsals against Belgium and Holland in November 1939 and January 1940. There are two reasons why an attack on Russia is not an immediate possibility. The first 18 that there has been no propaganda campaign of preparation. The propaganda-wise Third Reich did not attack even Yugoslavia without such a psychological preparation. The second reason is that the Germans have been consciously attempting to avoid their mistakes in the last war one of the most impotant of which was a war on two fronts. It is possible that they will duplicate this mistake. The most likely explanation for the German preparations against Russia are that Hitler is attempting to frighten Russia and to force her to abandon her recent policy of opposition the Yugoslav Pact, banning the shipment of arms to Japan. It is possible that Germany may over-estimate Russia's fear of war and a war may still develop.) Yugoelav-Greek Campaign London estimates the Germans used 1,050 combat and 450 transport planes in the Balkan campaign. 100 planes were destroyed or damaged in aerial combat. One-half of the air forces were probably unserviceable at the end of the campaign. The Germans had 65 divisions (over 1,000,000 men) in the Balkans and used 32. Casualties inflicted by the British alone probably totalled 25,000. 96 -3- Division of Monetary Research If the German troops now being transported out of the Belkans are to be used for an invasion of England, they will not be ready for six to eight weeks. Hitler probably minimized the casualties in the Balkans because of the apathy of the German home population towards the continuous military campaigns, each time in more distant areas. (London, Military Attache, May 7) The Italians, likewise, believe that the reported German losses are lower than the facts justify. (Rome, Military Attache, May 6) 97 SECRET By authority A. C. of S., G-2 Paraphrese of Code Cablogres Received as the War Department as 7198, May 3, 1941. Date MAY 8 1941 Initials I Section, filed 15:29, May 3, 1941. 1. From sources considered authoritative information has been received that the present Government has asked for aid from the Axia. It is also soliably reported that the Axia mission in Eyria is propering as staffeld share presembly for early large scale see, which British Military Intelligence is of the opiation will be for air-barms Corona woope. The Committer of the French foreso in Egria saye that any Amis attack will be resisted but the marate of his troops is considered low. a. State. British military Intelligence was, as of this morning, of the optates that - attest on Grete may be expected at any assent. 3. w to 15:00, May 24, the Oster Defense Lines had base posstrate w 6 - beats, of which three had been destroyed by Holotor essitails, four w Britten beak and four by since. British lost by enery action four creisor - , Informay beaks, , Infentry toukte were lost by acchanical failure. Autilitary five was successful during the day of May 2 in breaking - - abtock w 30 Service medium tooks and two companies of Infentry. 4. Bristah Military Intelligence expects that the German operations is Mage will seen be - on increased seals. Reimforements in sea and SECR ET 98 SECRET equipment are being hostilly compared w Section Miles w ats - the 15th Assoced Division is being and take the - 5. the - of streets is the almess - of Miga have book Increased and to - thought that 3,000 or 4,000 sweeps, of which 2,620 or 3,000 would be embas I - the sent air 1 - could to Distributions Secretary of State Department Secrotary of Water Secretary of Year whief of Staff Assistant Uniot of Staff, 6-2 Mar Please Division office of Nevel Intelligence Air Garge e-3 SECRET 99 CONFIDENTIAL Paraphrees of Code Cablegram Received at the War Department at 12:28, May 7, 1941. London, filed 18:00. May 7. 1941. 1. The following is admitted in saver to your request for information in regard to German lesses and treeps engaged in the Balkan Campaign. Mr authorities here estimate that the Germaa strength is planes during the exception was about 1,080 combat and 450 transport. of these they alain that 100 were destroyed or damaged exclusive of those lost by reason of fire from ground treeps. They estimate that - of German air foress were unserviceable by the end of the operation. 2. Their estimate of casualties among German treepe covere only those caused by British treeps. This figure they place as 25,000. Although they admit that 10 is impossible to verify because of the constant retirement to successive positions. In spite of newspaper reports of extremely severe casualties among the German, I believe this figure should be reasonable. s. It is the opinion here that German casualties were minimised by Hitler because of the spatly of German public opinion toward continuous military ammages, each time in more distant areas. Everyone with when I have talked who has returned from Germany has spoken of this spatly. 4. There is evidence that the surplus troops used in the Greek compaign are being avainated westward for employment in the next operations - possibly in as invasion of Regland or possibly passage through Spain. If the objective is an invasion of the United Kingles, CONFIDENTIAL 100 CONFIDENTIAL 11 would require a preparation period of a month and a half to eight weeks. 5. Reports ea these operations which have been received through the period covered by them and from all sources indicate that there were available to the German throughout the whole area of the Balkans a minimum of as divisions. About as of these were actively employed. 6. The only positive identifications made by the British as fasing their write in conbet are as follows: Arnaved divisions; the Second, Fifth and Ninth. Neuntain divisions; the Sixth and possibly the Fifth. There were is addition fasing them the Molyh Mitler ss Division and as Infantry Division not identified. LMM Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Orief of staff, 6-3 Way Plans Division office of Naval Intelligence Assistant Chief of Staff, as Air Corps CONFIDENTIAL 101 CONFIDENTIAL Paraphrase of Code Gablegram Received at the War Department at 8:00, May 7, 1941 Moscow, filed May 6, 1941. German diplomatic and military moves re U.S.S.R. at this time are all bluffs according to a statement of a well-informed German colleague. The purpose appears to be to force future concessions to Germany and hold Soviet troops stationary. YEATON Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff War Plans Division Office of Naval Intelligence CONFIDENTIAL 102 CONFIDENTIAL Permphenes of Code Cablegram Received at the Nox Department at 9:32, May 7, 1942 Busharest, filed May 4, 2941. 1. German troops have been moving from Bulgaria through Deboration toward East Rumania during the past few days. The General Staff has categerically refused permission to the military attasha to visit Noldavia and Constantias. 2. thafficial sources report 18 German and 14 Emanism divisions and neveral hundred German planes are now in MeLdevia. There are maid to be 200 German planos of the latest type in I Mape of Democrabia and southern Russia have been issued to Rumanian All machinery and other fastery equipment have house ordered emounted from Galate, Brails, Tessay and Heal. Refugees my the Russians are everything south Descarabia and are taking everything from mile to door bandles. RATAY Distributions Secretary of War State Department Secretary of Teconomy Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-2 - Plans Division Office of Neval Intelligence CONFIDENTIAL CONFIDENTIAL 103 Paraphrase of Code Radiogram Received at the War Department at 10:16, May 7, 1941. Berlin, filed May 7, 1941. Italian troops have occupied the islands of Amerges, Anapha, Ies, There, Maxos, Pares. One purpose of these occupations is to secure the use of the commercial water route from Trieste to the Black Sea. I have learned from a source which I consider is excellent that two German armored divisions are moving through Vienna in the direction of Poland. PEYTON Distribution Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence CONFIDENTIAL CONFIDENTIAL Paraphrase of Code Cablegram Received at the Mar Department at 26135, May 6. 1941, Done, filed May 6. 1961. In reply to your telegram month 477. The statements nate by Nerr Mitler in his recent speech with regard to the German treepe used in the Balkan campaign correspond closely to reports previously made here. It is generally held here. however, that the German lesses, as reported, are lewer than the fasts justify. FISER Detribution: Secretary of Mar State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-3 Var Plans Division Office of Naval Intelligence CONFIDENTIAL 104 105 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 9, 1941 Secretary Morgenthau TO FROM Mr. Kamarck Subject: Weekly Military Report: Relative Strengths in the Middle East - Summary The British probably have at least 200,000 men in Egypt and Crete, with a total of almost 500,000 in the Middle East, according to Churchill. There are various estimates of the axis land strength from 120,000, by our Cairo Attache on April 25, to 460,000 by our Rome Attache. The most likely figure is 150,000 to 200,000 men. We have no complete information on the total tank strength of the two sides. The axis has at least 600 tanks, while the British probably do not have more than 250. The British now have around 250 airplanes in Egypt and Crete, with an additional 200 at Takoradi, mostly unassembled. The axis appears to have 400-500 planes in Libya with another 1,000 planes elsewhere in the Middle East and an additional 1,600 to be made available. I. Land Forces A. British Churchill announced that the British have almost 500,000 men in the Middle East. In the middle of April, the British had 50,000 men in Egypt and Libya. Since then, four troop convoys have arrived and possibly a fifth. These convoys have probably brought in at least 100,000 men. 50,000 soldiers were evacuated from Greece. The minimum number of troops in Egypt and Crete would be, therefore, 200,000 men, not all of whom are available for 1mmediate duty. The garrisons in Palestine, Sudan, Aden and other Arabian ports, the fighting forces in Italian East Africa and Iraq, altogether should total over 100,000 men. This leaves 150,000 to 200,000 men unaccounted for. 106 -2- Division of Monetary Research While there have been no recent figures on the total British tank strength, it 18 not likely that the British would have more than 250 tanks in Egypt. As late 88 three weeks ago the British had only around 50 tanks in the western desert. B. Axis The estimates of the strength of the axis land forces in north Africa vary widely. The lowest was that of our Military Attache at Cairo on April 25, based on British sources, which put the figure at 6 divisions or 110,000 to 120,000 men. The highest was that of our Rome Attache who stated that there were 23 divisions in north Africa or 460,000 men. The most likely figure 18 150,000 to 200,000 men. In any case, the lowest estimate of the axis tank force in north Africa is 600 tanks. If the Italian source of six DANZER divisi one is correct, there would be around 2,000 axis tanks in Libya which seems to me to be somewhat fantastic at the present time. Axis Land Forces in North Africa (According to different sources) Berlin Rome (May 6) (May 2) German divisions Infantry (April 25) 2 Panzer Motorized Cairo Vichy (May 3) 2 4 1 4 5n 2 Total - - 4 1 2 12 8 3 Italian divisions Panzer Motorized Infantry 1 4 2 - - - 12 4 Total Grand Total Grand Total - Men - 8 8 15 - 23 460,000 11 20 400,000 220,000 6 120,000 107 Division of Monetary -3- Research II. Air Forces A. British A Western Desert Air Command under Air Marshal Tedder is being organized. This will comprise eventually a fighter wing (about 200 planes), a bombardment wing (about 100 planes) and an army cooperation squadron (perhaps 150 planes). On April 25, the British had only slightly more than 200 airplanes in Egypt and Cyprus. (The total now would probably be around 250). In the whole Middle East the British had, on April 25, 695 airplanes. 215 of the total were still at Takoradi, mostly awaiting assembly. Another 217 were thoroughly obsolete (eight years old and older) and can only be used against Iraquis and similar opposition. Approximately 60 airplanes were located in Malta. The Royal Air Force plans to put a squadron of Curtiss Tomahawka in action on May 10. The Royal Air Force in Egypt now has about 50 Tomahawks and 15 Tomahawks are expected to arrive in Egypt every week from Takoradi. The generator correction to the Tomahawka suggested by Washington appears to be working out very well. The Glenn Martin Maryland bombers have been operating efficiently on scouting and bombing missions for a number of weeks. Distribution of Royal Air Force in Middle East on April 25 Egypt and Crete Fighters Hurricanes Tomahawks 43 20 63 Total Fighters Bombers Blenheims (also used as fighters) Wellingtons Martins Total Bombers Total - Egypt and Crete 55 70 16 141 204 108 4- Division of Monetary Research Malta Fighters Hurricanes 29 Bombers Wellesleys Martine 11 5 Total bombers 16 Miscellaneous Sunderlands, Valentines, etc. 14 Total Malta 59 Aden, Iraq & Sudan Miscellaneous Obsolete planes (Vincents, Harts, Gauntlets) 217 Takoradi Fighters Tomahawks - total (Unaesembled Hurricanes - total (Unassembled 148 142) 20 19) Total Fighters 168 (Unassembled - 161) Bombers Blenheime - total (Unassemble d Martins - total (Unassembled Total Bombers 28 21) 19 18) 47 (Total unassembled - 39) Total Takoradi Grand Total - All Middle East 215 695 109 -5- Division of Monetary Research B. Axis Air Forces We have had various reports on the axis air forces in the Middle East. While the range of estimates 18 fairly wide, there 18 some agreement among them. In Libya, around May 1 the axis hed 400 to 500 combat airplanes, not including 100-200 troop transports. About half of these airplanes are German. The German airplanes in Libya are apparently a part of the Sixth Air Fleet operating in the Mediterranean and totalling This information coming from our Military Attache in Berlin agrees, in the main, with the estimates at Cairo. According to Rome and Berlin, however, the Fourth Air Fleet, which operated in the Belkans, will also soon be made available for action in 1,600 airplanes (600 pursuit, 400 Stukas, 600 other bombers). the Middle East. The meximum air strength that the axis will dispose of in the Middle East, according to these reports, will be over 3,000 airplanes. However, it is doubtful whether anything like this number can actually be brought to bear on any one front in view of the number of air bases that would be required. 110 & TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 12, 1941 Secretary Morgenthau TO Mr. Kamarok FROM Summary of Military Reports Subject: England During the German attacks on Belfast the night of May 4th, the HMS Furious (aircraft carrier) was damaged. On the night of May 5-6, 440 German planes attacked England. 390 of these were heavy bombers carrying 1-1/4 tone of bombs each. Turkey-Russia There is a report from official Romanian sources that German troops will enter Turkey, with her consent, on about May 10th. The troops will penetrate to the Iraq oil fields and to points south and north of the Caspian Sea. As a result, the action (war?) between Russia and Germany should occur in June at the latest. (Bucharest, Military Attache, May 8) The German army concentrations on the western Russian frontier still exist. The Germans now have the following troops in areas adjacent to Russia: Divisions Finland East Prussia 5 20 Posen area South Poland 20 Moldav 12 Slovakia Total 24 10 91 Divisions (1,800,000 men) (This report, if accurate, represents a slight decrease in the German concentrations except in the case of Finland. The preceding report showed 3 divisions in Finland.) 111 2- Division of Monetary Research Troops were embarked at Konigsberg on April 30th for an unknown destination (Finland?). A Seventh Air Fleet, it is reported but unconfirmed, is being formed in the Baltic Sea district. Troops are being withdrawn from Yugoslavia and sent north and northeast. (Berlin, Military Attache, May 6) Libya-Egypt British do not intend holding against major attack any positione west of Mersa Matruh. (Cairo, Military Attache, May 4) Seventy-eight air fields now exist between Alexandria and Mersa Matruh, others are being made ready. Shipping between Italy and Tripoli 18 being attacked by air, sea and submarine. Attacks on Tripoli have been only slightly successful in destroying port facilities. The British fleet at Alexandria is now unbalanced and with an excess of heavy ships over light. This is due to the fact that the recent loss of three destroyers (in the evacuation) has not been made good. The Fleet Air Arm is also below strength because of modifications being made to airplane engines and the necessity for the installation of arrester hooks on the Brewsters. (Cairo, Military Attache) Spain According to Belgian airmen, the Belgian consul at Vigo, Spain, states that there are two divisions of Germans not in uniform along the north Spanish coast. The Germans have submarine bases in the Spanish por te of Pontavedra (juet north of Portugal) Gijon and San Sebastian (both on the Bay of Biscay). Small German submarines are being carried out to sea in Spanish ships. (Lisbon, Military Attache, May 8) Germany The Germans have been testing tank-carrying airplanes and 12-seater and 25-seater towed gliders. 112 -3 - Division of Monetary Research Balkan Campaign Our Sofia and Bucharest attaches believe Hitler's figures on troops used and casualties in the Balkan campaign are correct. (Bucharest, Sofia, Military Attache, May 8) An important part in the campaign WAS played by the S.S. Regiment Adolf Hitler. These are picked Nazis, well trained and well fed. Use of the drug Pervitin probably accounts for the astonishing endurance of the se men. German aviators are definitely known to take this drug in tablet form. (Bucharest, Military Attache, May 8) CONFIDENTIAL of Cafe Reserved as the New 113 as my % W. Ate the - Senior, filed 16mm my To was. 2. - of my 6. - constates misly of officetive patrick - along - Belgian - Subch emets. mg of m 3.4. s - I new I business attention Mahata - covered s small grange sate atteste - Calate, Dealogis, Marbong and Dunkisk. Summy busburs from the General - equated eggines - shipping and the parts of - - n. Member - the employed I as Section a. - Ate s mas of my 6-7. - again the - abouts - - a large sale - streets principally as and with - sull atteste - legita - east contral & Highe of my 2.6. in all, the - please attented Show healthed stasty of these were long - become each of which as is estimated enried - and - - of busin (tastating s mg of my so During the atteste - Bottata this sign, - please dranged - - as Bolfast. CONFIDENTIAL CONFIDENTIAL 3. Atrement Loases Britteh Theater. a British. 114 - In all of the air operations during the night of May 5-6 as British aircraft were Lost. A Too - please were destroyed and - damaged w R.A.F. planoo operating over the Channel. The Intect Signates on - plano losses on the night of May 5-6 are 8 destroyed and 1 damaged w night fighters, and 1 destroyed, 1 probable by ambiniscrift. 4. British ARE Activity Other Theaters. a Service Brittah please beeed is Rent attented Bangast barber and siminance as Demo, Baree, Gammin and Dentan. AB Bonias at loast , Asis planos were destroyed - the / Aaba Alagi was also boubed and ammition darge blow A. Brogt Theater. Brittah please continued their attacks - - woope and please. 5. Asia Ate Activity other Theaters. Thirty-six - please been Isaa atrirus - Maita. Sixteen Common please staged a dive booking attack on British shipe is Date Day, Grate. Cas Britten vessel we struck and beached. 6. Aircraft Locass. a British. No reports have been received concerning British I -2. CONFIDENTIAL 115 CONFIDENTIAL hate. a the attests - Mile & - please - destrupted - in the abbort - Crute 2 others - Industrial - , 7. 8 During the sign of - us, British patrole - from Seller to Salage w as - ways. w Is staged a - attack - Indegen (aggrestentely be atice worth of Signalls). s have weeps have haft the platesa with of and the attention - I se without activity. Settish have reached Yes. a. Antivision A British - attented - - , Aste massite off - Sales A Brittah hospital ship - we beaked and - offse w - please as Schools. masse - we inficialed II the following to a - of British missing Intelligence information to THE A.M. My 7: activity in the vistully - Televate with the complete of 1 wall six assouse w - please. - Secretary of Mar - Please Division State Department Secretary of Secondary Ate Gaorge office of House Intelligence as Union Benefits of Obsor of Staff Assistant Onlor of Staff, as + CONFIDENTIAL 116 CONFIDENTIAL Paraphrase of Code Cablegram Received at the War Department at 13:51, May 8, 1941 Bucharest, filed May 8, 1941. I - unable to verify a report from an official source which states that German troops will enter Turkey, with her consent, on about May 10th. The troops will penetrate to the Iraq oil fields and to points south and north of the Gaspian Sea. As a result the action between Russia and Germany should occur in June at the latest. RATAY Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence CONFIDENTIAL CONFIDENTIAL . 117 Resignation of Code - Received as the Year Department as 22:20, my 6, 194. Boylin, filed My 6, 1942. - of - wage from tenned the worth and northeast. Troops were exheated as April 30, destination - An - report inticatos a 7th Air near composed of land and - please is being famed in the mitts Sea district. there are in Finland 5 - division, Meet Pressia 20, Inditis 22, South Paland 24, Stevakin, 20, Person area 20, 12 and increasing. PAYTON Distribution Secretary of War State Department Secretary of Treasury Under Secretary of War didn't of Staff Assistant Chief of staff, as War Picus Division office of Maral Intelligence CONFIDENTIAL SECRET 118 By authority A.C. of S., G-2 Resignation of Cade Received as the - Department as 9:33, my 7, 194. DatMAY 9 1941Initials ( BPH, calve, filed my 4 194. 1. In - to your tagetay of April 30 in registed to sixfields and British please be advised that I senting the ways you requested. 2. The British do not intend to hold against mayer abless my positions must of Maran 3. I - miss - to funded amount / time by air mil by plastic them in the I of & ship espiris bound for Singipure who will give them to Captain of the Clipper at that paint provided assengments - be made as your and with Please let - Inex 1f you desire this to be dem. 4. In the following information consuming airfields, I and w cable the continuation of all sites if you wish. 5. Metio between - minis and there exist as - 38 fields new rondy for operation, the most important of which are as - - and Jake South. Centering on a point 40 miles south of Pain there is . group of six fields. is n Daba and in a sizels within 20 miles of that paint are five others. is Bug al Ama and within 20 miles are 10 fields - seven are being - really entering about a pates 30 miles authoris. 6. Meticide between Nameda and Sallam. Seventy-eight signature exist espable of being used w SECRET 119 SECRET Fighters (as least 1,000 by 2,000 1 a portion hearing - workings). Other fields are being - ready in the - - Wall all Maternal there is - - field as - - with three amiliary Holds month. other good flords are as Make with those others 20 miles to the - and three as equal intervils between Mayaa and side FELLERS Distribution Secretary of War State Department Secretary of Treasury Secretary of - of as - Time Division Chief Assistant of staff didect shaff, office of Moul Intelligente Air George Assistant Chief of staff, as SECRET 120 SECRET By authority A. C. of S., G-2 Date MAY 10 1941 Ro ) Paragrame of Code California Received as the War Department Initials at 18:17, - s, 1941. Gaire, filed May 7, 1941. The following information gained from Teller in regard to the nevel situation in Eastern Moditaryanoon should be brought to the attention of our Mary. 1. Shipping between Italy and Tripoli is being attached w air, sea and submits in - attempt to onberress supplies. Attacks on Tripoli have been only slightly successful in destroying part facilities. 2. In replacing navel lesses, the British erriser PHONES (5,450 tens) has jeined the First. The three destroyers which were sunk however have not been replaced. 3. The Flour is new whalmood by reason of the of heavy foree over light. This condition results in the light forest being overworked. The Flost Air Arm is also below fighter strength - account of medifications to enginee and the installation of arrester health for Breasters. FELLERS Distributions Secretary of War State Department of Treasury Secretary Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-2 War Plans Division Office of Neval Intelligence Assistant Chief of Staff, 0-3 SECRET 121 CONFIDENTIAL Paragrams of Code Cablegram Received at the - Department at - s 2942 Maken, filed - 4 2041. IS is learned from a mater of Delgian almos the have out of concentration - thats - Belgian at Vigo states equivalent of two divisions of Germane not in wifern is along with Spealah coast - n Revel and - Sobarttang Germine have submitted bases in Spenish parts of alim, - - Sebastians small - submittees are being carried - to - in Spentah ships. can Distributions Secretary of w Department of Treasury Secretary of Assistant Order of staff, w Chief of Staff War Please Division office of Have Intelligence Constinating Section CONFIDENTIAL 122 CONFIDENTIAL Paraphrase of Code Gablegram Received at the War Department at 20:46, May 8, 1941 Bern, filed May 8, 1941. Swiss General Staff informs as follows: - Tests being made of use of 4-motored Junkers planes for carrying light tanks in April, trials of new 4-motored transport airplane with twin fuselage (machine thought to be FOCKS-HULF) were completed at Schwering at Hauhaia and Brunswick, Germans have been testing 12-seater and 25-seater towed gliders. LEGGE Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence Chief of Air Corps CONFIDENTIAL 123 CONFIDENTIAL Pumplement of Received as the - as 9039 m will filed my To w n is - opiaton that Hillar's - as w the - company is the Bollow - - - I Income w Made wage correct. - I a not bolieve that Sister installed in his Signature. the four or five - divisions stationed in Bulgeria - which was - - the - system in - - action I Services days before mister's - - will information people a - that the - consulties is this ongalam member to only about 2000 billed. There was materially - and dis- - about this figure. - Low continities appear almost excellenable, but - office as point - time, with the ats force teaching the your - and with and specialist with packing expressing the - - have, - them the - of the Common - artillery never - - - we company solely is mapping - operations. A way Impartees past - played is the Indian engation w the "Specialist the a. a. Degised I - This with to ovidently the - half division" mentioned is Misher's / - of this was - expectally plant party members, with National Socialism, well and for and addenlly cared for in the - as American football players. 26 is mistained is - eiroles here that this was percesses - courses compane. IS is wy botter that the long CONFIDENTIAL 124 CONFIDENTIAL - - mobility send to with - / of those - I I / that - writters take this - / in Mate - in tublics - Yes Place of office e, of statt, as Bord Intelligence CONFIDENTIAL 125 CONFIDENTIAL Paraphrase of Code Cablegram Received at the War as 14007, May s 1941 Sette, filed 19:00, May a, 1941. This eable in - to eable #24 this office which requested opinion - Mitter's speech of My 4. - estimate of German explayed in Balhana and - estimate of - leases. 26 is the opinion of - Attache, his colleagues and others that speech - propagente and that figure for compaign close to correct. Seven or eight German divisions were employed against Greeks and British. One estimate of German killed and wounded is 25,000 based on information considered valiable which was obtained from colleagues, a number of declare and a General General, JADUSM Distributions Secretary of State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of staff, 6-2 Mar Plans Division Office of Neval Intelligince Coordinating Section CONFIDENTIAL 126 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE TO Secretary Morgenthau FROM Mr. Kamarck May 13, 1941 Summary of Military Reports Subject: Greenland, Iceland, Spitzbergen The Germans may be preparing an invasion of Greenland, Iceland or Spitzbergen, According to the Norwegian Minister in London, three German crack divisions are concentrated in the Kirkenes-Tromsoe area of north Norway and transports have been observed off the coast. (London, Military Attache, May 9) England The German attacks on the night of the 7th and 8th severely damaged two destroyers and slightly damaged two more. 359 bombers were sent out by the Royal Air Force on the night of the 8th and 9th. Of these, 316 bombed Hamburg. (This was the night that the British announced that their heaviest attack of the war was delivered on Hamburg.) On the same night, the Germans had 230 bombere over England. (The highest number of German bombers which I have seen reported as being used againet England is 440. In other words, England appears to be coming closer to equality with Germany.) (London, British Embassy, May 9) 127 -2- Division of Monetary Research German Air Force Distribution on May 3, 1941 Transports Planes Holland, Belgium and France 493 150 600 243 50 2,193 Germany Norway and Denmark Total Western Front Balkans, Southeast Germany and Aegean 800 2,929 1,080 Africa and Central Mediterranean Total Mediterranean Front Grand Total 450 250 411 1,491 700 4,420 1,500 (Unaccounted for - the planes in Poland) (London, Military Attache, May 10, 1941) Balkans The Bulgarian railroads are being used to the utmost in the transportation of German material northward and in the direction of the Black Sea. On May 3, the Germans had 7 or 8 divisions on the TurkishBulgarian frontier. The Bulgarians had 10 divisions here and 4 in Thrace and Macedonia. (Sofie, May 9) CONFIDENTIAL 128 of date Received as the - as - 9, ml. 2. n Section, filed 24130, w 1. DATES - Daytime - a. Bonbume off the Barragian const - - tanget - British become A his - - a was chearval. Fighter - particular defenative patrol missing is the Non even. b sign, - T.B. the - battleshigs in Breas merber were again the tanges of attest w - business. Hite with - 2,000-you planting busing - - 900-gound were observed - 1 - shipping factifistes as n. Magazine - subject to abbod w 15 busburs. Broom, Ancient - had attache - - thats shipping w a meller mobile of become as - also the - off I a. , Higher, m so. - major booking operations seek place over Best Angita, the Newber, - - our the whole of the midianic. A maller number of please attention A Daytimes, May a. CONFIDENTIAL CONFIDENTIAL 1298 there - - offmative missions parties w Fighters - Name - strong petrole againsted over the Chinis-Dover Higher, - T.O. s. three I shirts-five please book you in attachs Britain. 3. ARE a. British. sign, my TO .- two British become - what - over 1. Sign, my s.g. so the as has been reported to date, five - please - shot i - - d w night Highware. a. Byylight, - a. a - attache - That clean Fighters were also down with three probable - - I a the - - - Fighter was what down with - - probable. 3. Right, my T-O. the Intest report of - plano committee - Britata indicates that so were about come with four - probable and 15 Images w sight Fighters while - officient these were - ent w fire. 4. British Ate Antivity maste Year States. a. Baylight, - a. 1. the housew of Bangasi and as Baree, Dealas - Derm were been w Bristals please based in sure. + CONFIDENTIAL CONFIDENTIAL 129 there were - offensive parties w Fightere - Heat - strong - over the Gulate-Bover was. s sign, - 7.8. Shores I shirt-sin please took your in attachs Britain. 3. Ate s. Bettich. sign, - 7. .- the British beneficiary - what down - 1. Higher my as. so for as has been reported to date, five - please were shot com - - damaged w night Highters. a. Daytight, my a. a - attache - clere Fighters - whos down with three probable - - Images. in the Membering - - what - with - - probable. 3. Right, my T-8. the Intest report of - please committee - Britata indicates that a were whos come with four more probable and 15 damaged w night Fighters while a officional three were taken and w enticiousness fire. 4. maste That Shakes & Stylight, - 8. 1. texts. the learner of Bengani and atefields at Baree, Denian and were beened w British please based in CONFIDENTIAL 130 CONFIDENTIAL a. Abjectate. I - column in the Labe Salange and as Jabe Alags - - Gubbia - been w Britten please. - was a - to bubing w the Free Treash foress. 3. Img. Bechid Aistield we beebed w British please and the - Registed - messentally beebed with socialisms explosteas. Operations against the Bechid Airfield resulted is the destruction of sta please - damage to 18. made - Shakes 5. s. Right, May T-S. the Base Omal - egate attention w stating please of which six Insured w products exploine between Part Hold and Make Malta - attention w tea without II. - following information has boom received from Admontar middle is Burnay: 1. Those - - instications that - - to juring for Creating, Zenland or Spitchergen a. a my s the Barvagian Material said that be and security received information from in Borth that about three full Common Divisions, all young flast-class ombar were consultated in the - and this transporte had boon deserved off that coast. These foress had entral w - transport from the authors districts of Boveral paire of skin had I - w - for their mo. Consult - previous eable - this subject. CON DENTIAL CONFIDENTIAL III. the following is a - or British milling / informations 1. Miles. Approved - abless to being - - the - 2. - partneter of Shink. - Island of - worth of - Inc I complet w the Italians. 5. Issue. office, commeted buildings - I in Inconclusive have bose compted w the British. the platesa south of Assistance has been cleared of Drugs trange - compted w the Bestion. 4. the - - ingroving and enlanging staffoldo is Policies. Distributions of -/ Secretary of Your State Department or think of Staff Assistant which of states, as - Place Division office of Home Intelligence Ate Courge 6-3 CONFIDENTIAL 131 BRITISH EMBASSY, WASHINGTON, D.C. May 11th, 1941. Personal and Secret. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 132 Telegram from London dated May 9th. Neval. Night of the 7th/8th, two destroyers 1. severely damaged at Liverpool and two destroyers slightly damaged at Hull. On the 8th one armed drifter sunk by aircraft, 2. one minesweeping trawler mined and sunk in Estier. Sues Canal closed near Kantara by mines. 3. AS Tobruk the 8th, "Ladybird" shot down two enemy We lost one minesweeper by bomb hit. aircraft. 4. P.M. 8th; 600 miles northeast of the ssychelles 5. His Majesty's Ship "Cornwell" sank armed merchant raider and sustained slight damage and two minor casualties from two hits. 53 Germans picked up. Out of 67 British and 166 Lascare only 11 British and 16 Lascare were saved. 6. Military, Habbeniya. During salvage operations our forces have brought in armoured care, lorries and six serviceable 3.7 inch howitners. Royal Air Force. 8th. 6 medium bombers attacked 7. 700 tons anti-sircraft ship off Stavanger, left down by the storn. One missing. 8. Night of the 8th/9th. 183 bombers sent to attack shipyards and industrial centre of Hamburg, 133 to shipyards, mostly smaller numbers to Berlin, Kiel and to attack shipping. Out of the 359 aircraft 10 did not return. 9. German Air Force. 8th. Strong patrole operated over Dover Straits, small formations over Kent. Fighters destroyed 32 enemy aircraft and probably five more; 3 hurricanes shot down, two pilote safe. Night of 8th/9th. About 230 aircraft operating mainly over Midlands and Hull. Enemy casualties - destre 10. 11, probable 1, damaged 4. 11. Home Security. Night of 8th/9th. Hull attack/ 133 attack severe. Docks and centre of the city again principal targets. Many fires and widespread damage. Nottingham industrial key point and public utilities not seriously affected. 134 CONFIDENTIAL Paraphrase of Opdo Radiogram Received at the War Department at 16:23, May 9, 1941 Sofia, filed May 9, 1941. According to reports, the Germans have seven or eight divisions on Tarkey's Thracian frontier. This information is as of May 3, 1941. The Germans were then occupying a sone 40 kile- meters deep. There were four divisions of the Bulgarian Army in Thrase and Macedonia, and 10 on Tarkish frontier. In Eastern Bulgaria no German divisions have been located. It is stated that the Bulgarian railroads are being used to the utmoat in transportation of German material northward and in the direction of the Black Sea. JADWIN Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-2 War Plans Division office of Naval Intelligence (2) CONFIDENTIAL SECRET 135 By authority A. C. of Date Initials Paraphrase of Sede Cablegram Received at the Mar Department at 07:47. May 10, 1941 London, filed 12:00, May 10, 1941. The table below gives the British estimate of the distribution of the German Air Force as of May 3, 1941. The breakless of the types of aircraft will be sent by courier unless this information is requested by cable. m. of Area No. of Transports Planes Germany and Desmark Holland, Belgium, and France Africa and Central Medi terranean Balkans, Southeast Germany, and 493 600 848 so 2193 150 411 250 1080 450 4480 1500 Aegean TOTAL (6-3 Note: The total of 4420 is the same as that given in an April breaklown of the German Air Force. No mention is made of planes in Peland.) LEE Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, G-3 War Plans Division Office of Naval Intelligence (a) Air Gerps SECRET 136 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE TO FROM May 14, 1951 Secretary Morgenthau Mr. Kamarck Subject: Summary of Military Reports Iraq General Wavell and the Royal Air Force command in the Middle East are urging that negotiations be undertaken in Iraq to free the air force and troops for Egypt. The Ministry of Air in Londo n, however, demands that the Iraq Government be overthrown. The Ministry believes that no German planes can arrive in Iraq this month. General Wilson is forming units in Palestine for use in Iraq. (Cairo, Military Attache, May 11) On May 6, a convoy with an infantry brigade from India arrived at Basra. (London, British Embassy, May 8) England The air raid of the night of May 6 damaged John Brown's shipyard on the Clyde-side. Production was cut by at least one-third. The ordnance factory at Ardeer which was hit will have to reduce production by at least 25 percent for some weeks. (London, British Embassy, May 8) Eastern Mediterranean The Germans are now estimated to have 828 planes in the Balkana and 450 planes in the Mediterranean area. The German air force in Greece 18 being overhauled and repaired. There are parachute troops and air transports based on Athens. The Germane are assembling a fleet of small vessels in Greece. (All this would indicate an attack on Crete or a descent upon Syria. (Cairo, Military Attache, May 11) 137 -2- Division of Monetary Research Balkans In the region of the Hungarians, the Danube is now clear of obstructions except at one point where a ship canal is apparently available. The Danube was blocked by the Yugoslave near the Romanian frontier and 18 still blocked by a combination of barges sunk in the river with a bridge collapsed on the top of them. It is likely, however, that traffic will be resumed in a few days past this spot. Damage occurred to the Yugoslav railroads at numerous places, it is reported. The civil traffic on the Hungarian railroads has been out one-half because of the poor state of the railroads. Over one-helf of the capacity of the Romanian railroads is being used for military purposes and commercial traffic is thereby hampered. There has been no significant sabotage of the railroads, as far as 18 known. In Bulgaria and Romania, all the oil tanks and resevoirs are full. The German experts are trying to raise the Romanian production of aviation gasoline from 10,000 tone to 18,000 tone & month. (Budapest, Military Attache, May 10; Bucharest, Military Attache, May 9) SECRET 138 By authority A. C. of S., GDatoMAY 13 1941.0Initials BPH - asas10:10, of -the --I 22, 100 - / xA to I / that of 1 - is boins I w the of - asset 2. mass, - - to 22, - mm - a / in - 2. / - - / w - - me - the - in - the I united w - is statity w - w made - - - - air - to / w - / of the - sections in the - - - to - - of a - of I week m - so w - / nature n main. a the - 1 some - - 2 I main, and - - - - / / to - as - 1 - w the - - / is - 4. to - w - - - - - in -- so as/ - /-- -sugars. of - als / in the I - --w- I in of / there - 1 the air - I - statity - / - the - other - was w the - w - based your $ attems.works to (writes - I - are - 139 SECRET c. in additional - of Junuare us has been w % - m - over served is Idage. revealed as - as Large as 9000 - in the laster. s. the following Identifications have been - about Televisit renting from mas to enote the 27th Brussia Division (realism) the 1000 Trunto Material Division (restium) 9th Might Amount Ministon ( 15M Artate Agnered Division (restion) There has been a - tremefer of teak wits from the German 9th Mages Assessed Minister and the 15th I Division in - Bordia requestively. 9. - - of - has arrived in Members my 12 for defense against valida. 20 is extinated that - defense will be required w - 24. 20. In light of the almonth and troup requirements for the defense of sen, air fores authorities in the Made - and General revell wited to was that - to materialism as Issua. the Matery of Mis in Leader I / the - of the Issue - the Material is of the states that - - please will be able to arrive in this worth. 22. General well is as - with General Wilson in Felectine. The Labber is in the - of function of wite for explayment in Iraq. SECRET 140 SECRET 22. Brittah wite are being organized w the determ of Cypress and those in Crote are being reinterest. 13. Iraq. IS is estimated that the Irrigo ate Sweas consist of 4 Siret-line sircraft, 40 of which are service and n training please. Distributions Secretary of State Department of Treasury Oklef of of Yes Assistant Ohiof of Staff, as No Plane Division are Neval Inbelligence - 2 Assistant Ohiof of staff, us. SECRET 141 BRITISH EMBASSY, WASHINGTON, D.C. May 10th, 1941 Personal and Secret Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 142 Telegram from London dated May 8th, 1941. NAVAL. A.P. trawler and one yacht bombed sunk home waters. Hospital ship "Karapara" has arrived at 2. Alexandria. British tanker 3600 tone at 02.55/7 3. reported shelled by raider 340 miles East southeast Cape Guardaful. Night of May 6th/7th. Royal Air Force 4. claimed direct hit on 5000 ton merchant ship anchored at Terschielling. 5. Military. Iraq. Habbeniya. Night of May 6th/7th, quiet. Our patrols remained on the high ground captured which was occupied in the morning. Bridge between Ramadi and Habbeniya was blown up by enemy during the night. 6. Convoy containing one Infentry Brigade from India arrived at Basra afternoon of May 6th. 7. Ethiopia. One Italian General and 170 Europeans have been captured at Alomata, The enemy have evacuated Debarech (40 miles Northeast of Gondar). 8. Royal Air Force. Night of May 7th/8th: 87 bombers sent to attack battle eruisers at Breat, 15 St. Namaire docks, others to Bremen docks and to attack shipping. Hits with one 2000 1b. armour piercing bomb and one 500 1b. bomb on each ship are claimed. Two bombers missing. 9. Mediterranean. on May 7th five Blenheims attacked convoy of 8 merchant ships and two escort vessels south southeast of Pantellaria. Two ships of 3000 and 1500 tone were hit. 10./ 143 -2- 10. German Air Force. May 7th; activity off the southeast coast. Our fighters destroyed 8 enemy aircraft. we lost two Spitfires. 11. Night of May 7th/8th. About 200 aircraft operating, mainly against Manchester, Merseyside, Hall and Bristol; 23 were destroyed, 4 probable, 13 damaged. 12. Iraq. May 6th. Three of our aircraft destroyed on the ground during air attacks in Habbaniya area. 13. Home Security. Two-thirds of the workmen have resumed at John Brown's after raid the night of May 6th/ 7th; two other shipyards at Greenoch damaged the same night. Ardeer production on military side likely to be reduced by about 25% for some weeks. 14. The night of May 7th/8th. Extensive fires at Bootle, Hull and Bristol. CONFIDENTIAL 144 Paraphrase of Code Cablegram Received at the War Department at 16:23, May 10, 1941. Budapest, filed May 10, 1941. 1. Information available in Budapest indicates that the Dambe river is now clear of obstructions except at Gomboa just below the junction of the Prave and the Danube. At this point the river has a draught of only two meters. The normal depth will be attained in about a fortnight. The use of the ship canal at this point is unnecessary except for the largest ships, and then only at low water. The Save pontoon bridge at Belgrade is open for two periods of two hours each daily. 2. The following destructions to railroad lines are known to have occurred. s. Railroad detour of one mile around Nish. b. Railroad line at Koplye. e. Bridge at Zemin. ₫. Long trestle at Laibach. 2. Bridge at Hungarian-Jugoslav border on BudapestZagreb railroad line. 3. There are reports here to the effect that Serbian bands are still fighting in the mountains of Montenegro. 4. The Hungarian Slovakian frontier will be closed up until May 12th. German troops are moving eastward through Slovakia. 5. The civil traffic on the Hungarian railroads has been cut by about one half. The poor state of the railroads will forbid them CONFIDENTIAL . CONFIDENTIAL to earry a much greater land. NILTYANY ATTACHE Distribution Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-2 Wax Plans Division Office of Naval Intelligence CONFIDENTIAL 145 CONFIDENTIAL 146 Paraphrase of Code Radiogram Received at the War Department at 18:53, May 9, 1941 Bucharest, filed 11:55, May 9, 1941. 1. In Bulgaria and Rumania all tanks and reserveire are filled and all tank care on hand are used for transporting oil to Germany. German field troops get gasoline in small containers filled at the refineries. German experts are negotiating for an increase of monthly output of aviation gasoline from 10,000 tens to 18,000. This would be 162,000 barrels at 42 gallons each. Therefore, 72 octane to be leaded to 95 would have to be accepted. Shipment of synthetic gasoline for planes is to be avoided if possible. This large amount of aviation gasoline would be necessary for further action. The totalitarian leaders are pressing the oil producers to step up output. The Germans are paying the total cost of bemb protection for oil tanks. 2. I can report accurately on railroads only in Rumania. The German run service is much better than that of the Rumanians. Over half of the rail movement concerns the armed forces. Commercial travel has naturally been hampered despite the fact that rail traffic is greater than before. There are no strict railroad regulations in force now. Rail line sabotage was never of prime importance at any time. I have a report that the railroads at Belgrade, Pancevo and Novisad were torn up by the Yugoalavs. I do not know about other points and - unable to say how long the dislocation of rail traffic will continue 3. The canal was not bambed and German fire at three in the CONFIDENTIAL CONFIDENTIAT 147 morning of April 6th in the Kasan destroyed the cement loaded Yugoslav barges which were to block it. The crew and Yugealav soldiers on guard at the canal were wiped out. I have no infornation on the bambing of Dubravisa and Golubas. Transportation on the Dambe is possible below Novised. Their barges filled with rocks were sunk under bridges which were then destroyed by the Yugoalavs. This obstacle in all probability will be cleared within a few days because oil companies have been ordered by the Germans to load sixty barges, 600 ito 700 tons each, which are now above Novisad. RATAY Distribution Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-2 War Plans Division office of Naval Intelligence Export Control -2- CONFIDENTIAL 148 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 16, 1941 TO Secretary Morgenthau FROM Mr. Kamarok Subject: Weekly Military Report: The Size of the German Air Force 1. The total strength that the German air force could put into combat at any one time is probably not more than 11,000 airplanes. The most likely figure 18 9,000 to 10,000. This figure is based on a number of independent estimates. According to an officer of the French General Staff, the Germans had in action about 5,000 planes on the Western Front last May. It took the Germans five years of all-out effort to attain this strength. It 18 possible that they could more than double this in one year, but not probable. Our Military Attache in Berlin reports that the Germans are supposed to be forming a Seventh Air Fleet. There are 1,600 planes in an air fleet, thus, according to this report, the Germans would have a total of 11,200 combat planes. Last December, I believe, the British were of the opinion that a first-line strength of 7,000 airplanes in 1941 would achieve parity with the Germans. Our London Military Attache reported recently that the Germans had a combat strength of 4,400 airplanes outside of Poland. It is possible that the Germane would have more than half of their air force in Poland but I doubt it. As a maximum, then, based on our London Attache's figures, the German combat strength did not total more than 3,800 airplanes. The April, 1941 issue of the British Military magazine, Fighting Forces, estimated that the German first-line strength totalled approximately 8,500 airplanes. 149 -2- Division of Monetary Research 2. The total number of airplanes of all types at the disposal of the Germans is probably not more than 35,000. The most likely figure is about 30,000. According to Royal Air Force experience, the peacetime allowance of a 50 percent reserve of planes in the operating squadron is not sufficient. To be able to maintain a strength of 12 planes ready to take the air it 18 necessary to have 20 - 22 planes in the squadron. Since, in addition, some airplanes have to be kept in reserve in higher echelone, it is probably safe to estimate that a 100 percent reserve of the first line strength is required. To maintain a first line combat strength of 9,000 to 10,000 planes it would probably, therefore, be necessary to have a total of 18,000 to 20,000 combat planes. In addition to combat planes, an air force has training, transport and other utility airplanes. Probably about a third, and perhaps more, of the total German air force observation, reconnaissance, army intercommunication, would consist of such planes. With a first line combat strength of 9,000 to 10,000 airplanes, the Germans would probably have, therefore, a total of 27,000 to 30,000 airplanes of all types. This figure 18 still a high estimate. The April, 1941 Fighting Forces estimates the total number of German airplanes of all types at 20,000. 150 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 15, 1941 Secretary Morgenthau TO Mr. Kamarck FROM Summary of Military Reports Subject: Hess British Military Intelligence believes that the cause of Hess' flight was a factional fight in the Nazi Party in which Goering was getting the better. Since Hess was the leader of a strong faction, there should be a great and widespread reaction in the Nazi Party. (London, Military Attache, May 13) England In the German raid of May 10-11 on London, the damage to war industry is thought not serious. The damage to docks is "less heavy than expected". Transportation was curtailed through the blocking of a number of main thorough- fares and some suspension of railway and underground service. Egypt The Suez Canal has been closed now since about May 9 by mines. The Germans are using a new type of mine which can be dropped from 2,000 feet without a parachute. (London, Military Attache, May 13) (The closing of the Suez cutting the main route of supply of the army in Egypt and the Western Desert is, of course, a serious blow to the British.) Iraq There are indications of the flight of a few axis planes across Syria toward Iraq. (M.I.D. Situation Report, May 14) CONFIDENTIAL 151 Paraphrase of Code Cablegram Received at the War Department at 08:02, May 23, 1942. London, filed May 13, 1941. I. Daily Cable, 1. British Air Activity over the Continent, & Daylight May 12g Sea borne traffic in the vioinity of the Skagerrak was attacked by a small force of British bembers. Some hits were claimed. b Night of May 11-12. The Coastal Command bombed the mesquite first based at Ijmuiden and the seaplane base at De Mok in Holland, Three bombers performed missions against shipping, one against the airfield at Marignas and 10 against Dieppe and Retterdam. Major attacks however were on the scale of 92 planes over Hamburg and 81 over Bronen. & Eight of May 10-11. British bembing sunk a German destroyer and 2 freighters while 3 other Axis conveys were attacked without results having been reported through failure of observation. 2.o German Air Activity over Britain. a. Night of May 12-13. German air operations over Britain were on a winer seals and chiefly were single planes over Reading, Debden and Birmingham and their visinities with a small member attacking coast targets between Flamborough Head and the Estuary with a few over the Bristel Channel, There was no activity reported from other theaters. b Daylight May 12. German air operations were reduced to a minimum with a few scattered planes observed over land but no raids were reported. 3. British Theater. CONFIDENTIAL CONFIDENTIAL 152 British. (1) Eight of May 11-12. In operations against they Continent four British planes failed to return, b. German. (1) Night of May 12-13. One bomber was shot down by night fighters, (2) Night of May 11-12. Nine planes were shot down with two probable and four damaged in attacks on British airfields, e. Night of May 11-12. The latest reports show that 310 planes were exployed in attacks on Britain with the principal concentrations against airfields. Some damage was reported to buildings and facilities but there were no serious plane casualties. 4. British Air Activity Middle East Theater, & Daylight May 12. (1) Libra. The airfields at Gasala, Derna and Denina were attacked by planes based on Egypt which also bombed shipping in the harbor at Bengasi. (2) Italian East Africa. British planes heavily bombed and machine gunned Amba Alagi. (3) Irea. All occupied positions were bombed by British planes, b. Daylight May 10. A raid by British aircraft on Sisily severely damaged an airport and destroyed at least 5 planes on the ground. 5. German Air Lesses Middle East Theater, s. Daylight May 12. Five German planes were shot down in the course of British attacks on Libya, CONFIDENTIAT CONFIDENTIAL 153 II. The following is a summary of military intelligence information to date of May 13: 1. London Night of May 10-11. Casualties in the course of German air raids are reported as 646 killed and 1400 seriously injured. 2. British Military Intelligence expects great and widespread reaction in the Nasi party as a result of the defection of Herr Heas. He was a leader of a strong faction in this party and it is believed the cause of his flight was that he had found himself getting the worst of it in a bitter struggle which has existed between him and Goering. It is yet too early to fully estimate the results of his flight to England but it is hoped that he will talk freely. No is now hospitalised. 3. The Sues Canal continues to be closed to traffic by mines in the visinity of Kantara and others unexploded near Station No. 13. A new type of mine which can be dropped from 2,000 feet without a parachute is now being utilized by the Germans. 4. There is no change in the situation in the visinity of Tobrak and Sellum. 5. More German agitators are reported arriving in Syria by air. 6. The situation in Iraq is more normal. LEE Distributions Secretary of War State Department Secretary of Treasury Assistant Chief of Staff, G-2 Chief of Staff Under Secretary of War War Plans Division Office of Naval Intelligence G-3 Air Corps CONFIDENTIAL 154 BRITISH EMBASSY, WASHINGTON, D.C. May 14th, 1941. Personal and Secret. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Thank Butter The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 155 Telegram from London dated May 12th. 1. Neval. Owing to raid night of 9th/10th, Sues Canal now closed between Port Said and Lake Timeah and Lake Tinsah and Deversoir. Between Sues and Deversoir and in Lake Timsah traffic can move. Night of May 10th/11th. Royal Air Force claim sinking by two direct hits destroyer approximately 2,000 tons. 2. Two 500 ton vessels were hit and probably destroyed. Unobserved attacks also made on three conveys off Prisian Islands, 3. Attacks by enemy aircraft on two East Coast convoys night of 11th/12th were unsuccessful. 4. Irag. Rutba Fort was captured by the Royal Air Force armoured care early May 11th. This area including aerodrome is now in our hands. 5. 6. Revel Air Force. Night of 10th/11th. Hamburg. About 107 tone of H.E. and 10,000 incendiaries dropped under good visibility: in particular Blohm and Vose shipyards, electric power station, main railway station and marshalling yards repeatedly hit. 13 tons of H.E. dropped on Berlin. 7. Night of 11th/12th. 187 bombers sent to Hamburg (92) Bremen (81) 3 German occupied ports (10) 1 stirling to Merignac aerodrome and three aircraft to attack shipping. Weather good over Northwest Germany and 80% of attack on primary targets. Four aircraft missing. 8. During the daylight 10th, two aerodromos in Sicily were attacked by 9 Beaufighters which have destroyed at least five aircraft and inflicted heavy damage. Iraq. Four Blenheims which attacked Rutba on May 9th were damaged and 1 destroyed by anti-aircraft fire on May 10th. 9. 10. German Air Force. May 11th, daylight. Activity slight Fighters/ 156 - Fighters bombed and machine gunned South End Aerodrome, damaging two aircraft. Our fighters destroyed four without loss, ground defences a fifth. Night of 11th/12th. 260 aircraft operating overland, 15 more minelaying. Bombing widely distributed. Royal Air 11. Force stations attacked: some damage to hangare and buildings, casualties few. No serious loss of aircraft. 7 enemy aircraft destroyed, four by night fighters. 12. Home Security. Night of 10th/11th. Casualties so far reported 646 killed, 14,004 seriously wounded. May 9th Westminster and Bermondsey reported damaged. Factories. Damage to war industry thought not serious. Docke. Damage less heavy than expected. City. Many main thoroughfares blooked but those from north to south now mainly cleared. Railways. Considerable suspension of traffic principle Tormini but largely precautionary during survey of the permanent way. Several sections of the underground temporarily closed. Electricity. Some temporary dislocation of supply. Gas. Damage to gas works not serious but fracture of maine has out off supply in some S.E. districts. Telephones. Little dislocation. Pebl Public Buildings, Houses of Parliament. Chamber of House of Commons severely damaged by H.E. and fire. Extensive damage to corridors, ceiling, etc. in House of Lords. Westminster Abbey. Lantern Tower over Transept collapeed into the Abbey. Datage reparable. Westminster Hall, Berious damage to roof. Lambeth Palace, Serious damage to chapel and part of the Palace. City Guilds, Five Halle destroyed. Queens Hall. Extensive damage by fire. British Huseum. Most treasures had been removed. Damage comparatively elight. 157 RESTRICTED G-2/2657-220; No. 391 M.I.D., W. D. 12:00 M., May 14, 1941. SITUATION REPORT I. Western Theater of War. Air: Limited operations by both sides due, apparently, to bad weather. II. Mediterranean and African Theaters of War. Ground: North Africa. Deep German reconnaissances to the East and Southeast of Sollum resulted in sharp clashes. Near Tobruk a British attack on an Italian position was repulsed with considerable losses according to the Italian High Command. Air: Minor raids on Malta and Alexandria by Axis planes and on Denghazi by the British. III. Balkan Theater of War. Italian troops have occupied Pec, Prizren, Tetovo, Gostivar and Kishevo in conquered Yugoslavia, and in Greece they have completed occupation of Epirus and Acarnania and Aetolia, reaching Missolonghi and Lepanto on the Gulf of Patras. IV. Iraq. No change in the general situation. Indications of flight of a few Axis planes across Syria toward Iraq. RESTRICTED 158 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 19, 1941 Secretary Morgenthau TO Mr. Kamarck FROM Subject: British Forces in the Campaign for Egypt (With accompanying map) British Strategy The present British strategy in the campaign in the Western Desert of Egypt is defensive. The British hope to hold Egypt over the summer by relying on the hot weather, the sand storms and the difficulties the axis experience in supplying their troops and by fighting successive delaying actions. Tobruk The mission of the force at Tobruk is to deny the use of the harbor 88 an axis means of supply and to interfere with the use of the coastal highway. When the British are able to take the offensive again, Tobruk will be valuable as a British base for an advance. There are 25,000 men now at Tobruk, including one Australian division. (This is double the original number.) The garrison probably has less than 30 tanks. No air support is available. There are, however, over 100 anti-sircraft, anti-tank guns. Zone I - Patrol Action In the area from the Libyan frontier east to Mersa Matruh, the mission of the British force covering this sector is to act as a delaying force to hold up any axis advance. This force may take the tactical offensive from time to time, such as its attack on Sollum, to keep the axis forces worried but it cannot undertake any major engagement. 159 -2- Division of Monetary Research The British troops in this patrol number about 5,000. They consist of, 80 far as our information goes, 15 light tanks, 50 ermored cars, 40 field guns and partially motorized infantry. Zone II - Successive Delaying Positions In Zone II from Mersa Matruh to the main line of resistance (M.L.R.) (from E1 Maghra to the sea) there are two major delaying positions. The mission of the troops in this area is to delay the advance of the axis forces and then fall back under major pressure. In Zone II, the British have two divisions (onetwo Indian, one British) or around 35,000 to 40,000 men. The divisions are being supported by 34 light tanks and 36 armored care. Main Line of Resistance The main line of resistance which the British plan to hold at all costs runs from E1 Maghra to the sea. There is no information on the British forces available to hold this line. The troops now in front of it, outside of Tobruk, are expected to fall back on this position. This would give a total of about 40,000 men. The Second Armored Division is out of action, one brigade having been lost in Libya and the other in Greece. The Seventh Armored Division was awaiting new vehicles which have presumably arrived on the recent convoy from England. It should, therefore, be available for action within a few weeks. 160 161 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE TO May 19, 1941 Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Military Reports on Current Subjects Libya-Egypt According to Rome sources, the German offensive in North Africa has been temporarily postponed due to damage to the Libyan ports, considerable losses in personnel and supplies en route to Africa and the difficulty of the supply problem. According to a Turk in Rome, the Germans now have 1,200 tanks in Libya but lost 700 more en route through sinkings. (Rome, Military Attache, May 15) (This is probably a more accurate report than the earlier estimate by our military attache that the Germans have five panzer divisions in Africa, i.e. about 2,000 tanks.) A British convoy of six ships passed through the Mediterranean to Egypt. Despite heavy air attacks, no losses from bombs were suffered. One ship was lost through striking a mine. (Cairo, Military Attache, May 13) The British now believe that the Italians have seven divisions in Libya, one motorized and one armored. (This agrees fairly well with the Berlin and Vichy estimates of eight Italian divisions, but is one-half of our Rome atteche's estimate of fifteen Italian divisions. (London, British Embassy telegram, May 13) Crete A fairly reliable source in Berlin reports without supported by parachute troops. (Berlin, Military Attache, confirmation that the German army 18 going to attack Crete May 15) 162 -2- Division of Monetary Research Iraq-Turkey The Germane have sent a shipment of ammunition to Iraq by rail through Turkey. The Turks say that under the rules of neutrality they cannot stop this traffic. (London, Military Attache, May 15) Switzerland-France There is an Italian concentration of troops south of the Matterhorn. This may be to put pressure on Switzerland or France or may represent simply a withdrawal of troops from Albania. (London, British Embassy telegram, May 13) Russia According to a Turkish source in Rome, Russia has agreed to all German demands and, therefore, there will be no German attack on the Ukraine. A German source in Rome is reported to have stated that Germany will send agricultural and transport experts to Russia to take charge of grain and live stock shipments from the Ukraine. (Rome, Military Attache, May 15) Germany There has been no deterioration in the quality of German pilots used over England. They are in first-rate physical condition and their morale, even when captured, is swaggering and defiant. (London, Military Attache, May 15) CONFIDENTIAL 163 Paraphrese of Code Cablogreen Received as the - Department at 16:02, May 15, 1941. Ram, filed May 15, 1941. As the result of damage to Illyan parts, considerable lessee in personnel and supplies on route to Africa and the great difficulty of the supply problem, the German offensive on Egypt has been temporarily postpened according to well informed opinion in Italy in spite of press reports to the contraty. There are in Libya 1200 German tanks although 700 have been lost due to transport sinkings according to a reliable Turkish source. It is thought that General Renewl is over extended and that reinforesments from Greese are being sent him by air. It is stated by the same informant as a fact that two German bombare have arrived at Baghdad and German troops are expected in Iraq by plane. It is sidered probable by him that France has agreed for Germany to we Syria to include possibly transports there and material. He further states that as Russia has agreed to all German demands there will be no attack on the Ukraine. According to another contact it is reported by a German source that as the result of a secret agreement Germany will send agricultural and transportation engineers to Russia, who will be in charge of grain and live stock shipments from the Ukraine. FISKE Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of Nar Chief of Staff Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence CONFIDENTIAL - 164 SECRET By authority A. C. of S., G-2 Date MAY 10 1941 ( R ) Initials Paraphrase of Code Cablegram Received at the War Department at 21:20, May 14, 1941 Cairo, filed May 13, 1941. 1. Five ships of 3,000 ton burden were observed in the harbor of Benghasi. 2. German aircraft are known to be in Iraq and Syria. 3. A British convoy of 6 ships passed through the narrows south of Sicily. Despite heavy air bombardment there were no losses. However one ship struck a mine and sank. FELLERS Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence Air Corps G-3 SECRET 165 BRITISH EMBASSY, WASHINGTON, D.C. May 15th, 1941. PERSONAL AND SECRET. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Howle Butter The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D.C. 166 TELEGRAM FROM LONDON MAY 18th. 1941, Naval, FIRST of 10th/11th. 5 British destroyers fired 866 rounds at shipping and military objectives at Benghasi. One merchant vessel was engaged from the harbour entrance and hit. Our ships were attacked by dive-bombers and shore batteries but no damage was sustained. British gun boat also bombarded landing ground at Gasala and caused fires. 2. Military, Ethiopia. Our troops advancing from South have reached 12 miles south of Amba Alagi. In Southern Abyssinia we have occupied the last enemy position at Wadara. 3. Libya. Belfeved7Italian divisions now in Libya including one armoured, one motorised. 4. Italy, Italian concentration South of the Matterhorn group. Sise not yet known. Possibly consists of troops from Albania but may be first movement to induce closer collaboration with Switserland and Unoccupied France with the Axis. 5. Royal Air Force. Night of 12th/13th. 100 bumbers sent to attack industrial centre of Mannheim, 13 shipping off French Coast, 1 aircraft missing. 6. Libya. Night of 11th/12th. 9 heavy bombers attacked Benghasi harbour and 8 enemy aerodromos in Cyrenicia. Large fires started at Benghasi and on aerodromes; 4 aircraft set on fire and others damaged. 7. German Air Force. Day of 12th; enemy activity slight. Night of 18th/18th, only 50 aircraft game over land; further 90 were minelaying, 1 enery bomber destroyed by night fighters. J CONFIDENTIAL Paraphrese of Code Cablegram Received at the War Department at 15:50, May 15, 1941. Berlin, filed 15:10, May 15, 1941. A source of fair reliability reports that the Germane are to abtack Grate supported by paraditate troops. I as unable to obtain further confirmation. PEYTON Distribution: Secretary of War State Department War Secretary Under Secretary of Treasury of Chief of Staff Assistant Chief of Staff, 0-2 War Plans Division Office of Naval Intelligence CONFIDENTIAL 167 1 168 CONFIDENTIAL Paraphrase of Code Cablegram Received at the War Department at 08:39, May 15, 1941 London, filed 11:40, May 15, 1941. 1. British Air Activity over the Continent. a. Daylight, May 14. There were no booking raids by British planes. Fighter equadrons, however, performed missions over German air fields in Occupied France. b. Right, May 13-14. On account of adverse weather conditions all bombers were grounded. However, damage resulted to an airfield at Ostend from an attack by fighter planes. 2. German Air Activity over Britain. a. Right, May 14-35. German air operations were limited to sea patrols along the English coast by a small number of planes. b. Daylight, May 14. Air activity was limited to small number of reconneissance patrols over East Englis. 3. German Air Leases, British Theater. a. Might, May 14-35. One plane was destroyed by Naval anti- aircraft fire. b. Daylight, May 14. Four German planes were damaged in recommissance patrols over East Anglis. 4. British Air Activity, Middle East Theater. a. Daylight, May 34. 1. Egypt. British planes based on Egypt subjected the airfield at Catania (Sicily) and the Inle of Rhodes to severe bombing. Ships in the harber at Bengasi were also attacked. 2. Ethiopia. Axis column near Ambi Alagi were attacked CONFIDENTIAL 169 CONFIDENTIAL by low-flying bonborn. 3. Irea. British planes bombed and machine gunned Iraq arsenal and supply drop as well as motor convoys on reads. 5. A French transport with 400 troops was captured by the British 100 miles southwest of Dolder bound for Madagasear. 6. A small British naval vessel was abandoned 650 miles south west of Iceland on the morning of May 13, after it had been terpedoed. 7. In the German raids on Malta on the night of May 11-12 damage was limited to one hanger and one Maryland destroyed by fire with two additional planes damaged. 8. It is recommended that the State Department dispatch of May 12, forwarded by airmail, subject #French Military and Political Situation in Moreaco and Dakkar," be consulted. 9. Reports have been current that rew, young pilots and mm recently returned from hospital have been sent by the Germane in bombing raids over England. The inference of these reports is that a strong reserve of experienced veterans is being built up in anticipation of a maximum effort. These reports have been subject to investigation and have been revealed to be without foundation. The percentage of old and young pilots has not been altered. Medical authorities state that German pilots are in first rate physical condition. Their morale, even when captured, is awaggering and defiant. LEE Distributions War Plans Division Secretary of War State Department Office of Naval Intelligence Secretary of Treasury Under Secretary of War G-3 Air Garps Chief of Staff Assistant Chief of Staff, 0-2 CONSIDENTIAL 170 Perephrase of Code Radiogram Received at the War Department as 09:32, May 15, 1941 SECRET By authority A. C. on s. 0-2 Date 16 way 41 Anne Initiate London, filed 16:00, May 35. The following is a - of British Military Intelligence information on the situation in Trug to date of May 15: 1. Mr. Murphy, our representative in Tangler, is reported to have told the British representative there, that he considered that British opinion and reports conserning Marshal Petain and General Weygand, and the course of action which they will probably pursue, were too severe. The unofficial opinion held by British Intelligence officers here is that the Government of uncoupied France has been completely controlled by the Germans for months. 2. IS is reported from Syria that a number of German planes have landed there earing from Rhedes, and that additional members of German "tourists" are arriving in Syria. 3. The French High Commissionar of Syria has announced that he will not attempt to counter any German operations unless be receives specific instructions to do so from the Visity Government. 4. A shipment of ammition has been forwarded by the Germane to North Iraq by rail through Turkey. The Turkish authorities may that under the rules of neutrality they cannot put a stop to this traffic. 5. The remants of the Iraq Army which retreated from Bears are reported to be reorganizing in the visinity of Qurna (7) and Hemmediyah, south of Baghtad on the Baghted Railway. Its numbers SECRET SECRET are reported to be about 1000. 6. Several wall units of German fighters have been reported, the largest being of 6 planes. At least one bomber has been observed. Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence Air Corps SECRET 171 172 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 20, 1941 Secretary Morgenthau TO Mr. Kamarck FROM Subject: The British Story of the Balkan Campaign (According to General Wilson, Commander of the British Forces in Greece) Summary According to the comments of General Wilson, to some degree, the campaign in Greece might be summed up in "Too little and too late". The situation was made worse by Greek and Yugoslav mistakes. The British tanks proved to have serious defects. The R.A.F. system of army support proved wrong. The Empire infantry and field artillery apparently gave a good account of themselves. Cooperation with the Navy W&S good. The Germans relied too much on air attacks to prevent evacuation and were unsuccessful in preventing the escape of most of the British force. 1. The Germans fostered the Yugoslav coup d'etat of March 27, in order to have a pretext to occupy the country. The agreement with the preceding government had merely given the Germans the right to use the railways. (General Wilson, in my opinion, is mistaken in this view: (a) The Germans do not need a real incident for a pretext, they manufacture one very easily. (b) If the coup d'etat was foreseen by the Germans they would have been ready to march in the next day, whereas they had to take ten days to rearrange their troops before they could attack. (c) The Germans would have preferred to occupy Yugoslavia without war.) 173 -2- Division of Monetary Research 2. The Germans struck at Yugoslavia before the Yugoslavs were ready. The British, too, had not been able to complete their concentration of troops on the planned line of defense before the Germans had crossed the border. 3. The Italo-Greek war had been a one-man show run by Metaxas. After Metaxas' death, the King, while courageous, could not exercise effective political leadership. When the situation became desperate, Metaxas' successor as Premier committed suicide from despair. 4. The forces assigned to the job were inadequate. The Middle East High Command had promised General Wilson seven divisions and twenty-three squadrone of planes. He actually received two divisions and ten squadrone totalling 226 airplanes. (According to earlier information, the British never had more than 100 airplanes in use at any one time.) The Greeks were supposed to reinforce the central front with 100,000 men to be withdrawn from Albania. But the Greeks were obsessed with the idea of a victory over the Italians and did not withdraw any troops from Albania. (The Yugoslavs made the same mistake. Instead of concentrating their forces to defend the vital Vardar valley opposite Bulgaria, the only Yugoslav army that was completely mobilized when the Germans attacked WB B the army on the northern Albanian frontier.) There were also four Greek divisions in Thrace which were to be transferred to other fronts in accordance with the plan to leave Thrace undefended. However, these divisions were composed of Thracians who refused to abandon their homes without resistance to the invader. As a result, four divisions (80,000 men) were lost in Thrace. The Yugoslavs had also promised to provide support for the Anglo-Greek front. This assistance never materialized. 5. The British tanks had serious mechanical defects. A sharp turn was likely to throw off the tracks and immobilize the vehicle. All the tanks brought into Greece were lost. The British radios in the communications network functioned. badly, perhaps due to the magnetic deposits in the mountains. 174 - -3 - Division of Monetary Research 6. Lieutenant-General Blamey, the Australian now Deputy Commander-in-Chief in the Middle East, is of the opinion that the British system of Royal Air Force control over army planes proved to be wrong. The campaign showed that the commander in the field needs immediate air support and should be able to give direct orders to the squadrone in his support. 7. The British artillery showed up well. The two- pounder anti-tank gun about the size of our 37 mm. gun) and the 25-pounder gun (larger than our 75's) were particularly effective against the German a rmored troops. The British defense against tanks proved to be good as the German tanks never gained the ascendancy over the British foot soldiers in defense. The successive retirements were made at night and were well carried out since the Germans were not able to overrun the retreating British. The demolitions made during the retreat at night delayed the Germans during the following day. 8. The elastic system of widely-dispersed evacuation from the beaches proved successful. Cooperation with the Navy was well carried out. The Germans relied too much on air action to prevent the evacuation which was carried out successfully at night. 9. According to Lieutenant-General - Blamey, the German bombing of motor truck convoys was remarkably ineffective. Machine-gun fire from the attacking planes was effective, however. Neither was as effective 88 field artillery fire in the last war. The German tanks were often badly handled. However, they proved to be able to travel over almost any terrain and could go anywhere a horse-drawn vehicle could go. 10. General Wilson expressed the general British opinion that the Germans lack aggressiveness compared to 1914. He felt the Germans were soft once they were out of their armored shell. (Our Cairo military attache comments that this is a mistaken judgment. The present German military doctrine of infiltration teaches that strong points and centers of resistance are not to be attacked head-on 175 -4- Division of Monetary Research but to be by-passed. A line is thus felt out for soft spots which are often created by tank and air action. Then the Germans infiltrate through these soft places and flow through the sector leaving the strong points to be washed away from the rear and flanks.) 11. General Wilson came out with the lesson that concealment from the air was more important than the natural defensive attributes of a position. (This lesson might be modified if it had been General Wilson who had superiority in the air rather than his enemy.) CONFIDENTIAL 176 of date adidas Received as - - Separtment as - - 18, w - filed - m mm. the to a - of - - great a . I - witha the - - of the Britten - in - 1. - in a below - - - Wilson stated that the d I be and I were the Addendage s - is better - - the - of - to vitally Shoppe defecting a position enter good - - signated w - please. - - - with - toos weepe pressed the s abbett. - eming when defunsive fire the - - displayed a - - vehicles. mile emiting air - - - happ w the s claimable and m and 9.9 Houston were I bought will a. - foot n to the - optation that the - Sent subdier of 1964 dass as - in - to the - of was. a less - - and - - second from his - shall, to to seft. - Wiloom's description - the quilty of the - solding to - opinion than - - Bothlab officement. a their - the Health meloor constitution of the - declarate of 3. offensive w Infilmation of smill - - - / a the Street attents of a position, the - - and - in in fall strength week the - bee been - w booking from the air - w CONFIDENTIAL 177 CONFIDENTIAL the abbort of - vehicles. Is is - - opinion that the is not as care as the British think, but rather that he is employing - destrines when be presente no - target to the until after the my has I prepared w please and teats. 4. the andibank - and the British - - particularly effective against - - Surves. a - totals - frequently bodly - and they - - in the - - the British fast soldiers in defense. Revever, termeta which the Brittah considered impossible for - - - of or and sige - casily - the - teak has selved termin assistantial - . supplement that a horse / vehicle - w. British - has serious mechanical defects. In combat a enter term New off the I ALL the British - - into Greese - less. British volic very the bodiy. Package the - for this we mineral deposite in - but in - evens the beet equipment completely failed to operate, and all - w windless we errotic. the British attempted to sua the w w - of Mates officers but muslining this - of - was onionsly reterted - there were heavy committee - the officers employed. 5. a the withdrawal from positions in the north, in daylight and by dest was positive north of Thomassies. South of this point, honover, withdrawal had to be effected in the house of only and them with the widest possible disposution along the omet. the plan from of - use of street floxibility is regard to the points which trease - sales. General Wilson had - his staff - Matrial CONFIDENTIAL CONFIDENTIAL 178 who - in direct - with the Slagahip from which the stem was entrolled. the Gensano please too mach relience - ate operations against - - - large areas. 6. In the withdreal w night from - questions, the settrement was covered w a fire from alternate you'll and - w day - dented w the / air Serve. Neverer, demolistens mis during the night provented the - from following - the retirement - the most deg. (e-e notes - - gubbled is original). the - had make their plane to - withdrawal - seeb, but the British had motor vehicles than and been expected. the stenta - the drivers of motor vehicles was - they operated day and night without sleep - - - w morenitting air attachs. the Break hastened the withdrawal. the motor - of the Breek any we in your condition eat Josees rende which - the - Give busbers - opportunity for effective attack and mile the nood for British fighters a author of 7. the Greene - cheesed with their autition to close the - with Italy violentously - instand of solenating 100,000 - from Albenia for - in the center of the Line as they and provided, they continued their operations - the Alberton front. Stationly the m good to transport four Greek divisions operating in States to relateres the enter Line remained ineffective - the wrouge had been select in Threes and refused to leave thats villages unprobected. Aa . results of these too fatheres to veinfuree the Britten, their time was accountly - to would being out-fleaked. 8. the high - is the middle Best had president General Wiloom seven divisions from Harpe and Edhys - 25 equadrone of please. .3. JO DENTIAL CONFIDENTIAL 179 No actually was given w divisions end ton agendrone with a total of and please. 9. General Wilson also had boon presticed support which failed to materialize. After the agreement between - and had born completed w which the - were to have the - of has were 10. ast to - the company, as - to light that Tegeslavia had mate as military essitments to Britain. - then festured the comp d'etas is order to have a pretent for sometom. 12. the change of - - so midden that the Togetiev any never w started in their to the - investion which was through - country as towning - speed. As a month the consentration of the British - had as bom completed when the - reached the Greek beniev. 12. - Itale-Street - was a - show led personally w Natares. with his death, - to on and. the king to but has no central of the political situation. the disestrone team of events Repailed the Prime Matster to contr outside. 13. Meatment - Bland enter whose - the Australians fought is Greese and - is - Dopuly of the made Seet ando the following statement to - - - of Common borbing of costage - the send revenued a resertable ineffectiveness. Machine - fire from fighter please against motor compage was effective, but neither boobing - mohine g compares is effect to the artillary concentrations of 1918. Impointe air - is a atter of absolute CONFIDENTIAL . 180 CONFIDENTIAL - to a / in the - - - ste - is - the British - - - to - 8 with - . - - -towhee - - E - able w - I / w - - / -- of as Intelligence New as - CONFIDENTIAL 181 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 22, 1941 Secretary Morgenthau TO FROM Mr. Kamarok Subject: Summary of Military Reports Crete The British on May 19 (the day before the invasion) felt that the plans for the defense of Crete had been worked out in satisfactory detail. For an advance from Syria on Suez, British Military Intelligence thinks that the Germans will need to seize Crete and Cyprus and neutralize the British Fleet in the Mediterranean. (This may overlook the fact that if Crete and Cyprus fall, Turkey may allow German use of her territory making possible a serious threat to Suez even without neutral- ization of the British Fleet.) (London, Military Attache, May 19) Iraq-Syria Under British pressure, Turkey has promised, as a gesture, to move a division to the Iraq border and one to the Syrian border around June 1. Turkey refused to stop the use of Turkish railroads for carrying German equipment into Iraq. German artillery has been landed at Trebizond (Turkish Black Sea port) and transported to Iraa by truck. (London, Military Attache, May 19; Ankara, Embassy telegram, May 18) German planes are based on Syrian airports (Aleppo, Beirut, Damascus, Palmyra) in operations over Iraq. Further full reinforcements of planes and crews are arriving with the cooperation of the French. There are at least 35 Heinkels (bombers) and Messerschmidts in Syria. (London, Military Attache, May 19; Ankara, Military Attache, May 19) The French have five groups of airplanes in Syria (maximum 100-150 planes), consisting of Moranes, Martine, Potez 65's and other miscellaneous planes. (Ankara, Military Attache, May 19) 182 -2- Division of Monetary Research Russia According to the Yugoslav military attache in Moscow, the Chief of the Red Army stated that Russia will fight Germany later and is waiting for the United States to enter the war. The Soviet Government still distrusts England and suspects the Hess flight wes an effort to turn the war against the Soviet Union. The Japanese military attache, states that only 180 Soviet divisions have been actually identified with less than 100 fully equipped. Germany turned over to Russia ten Junkers-52 (air transports) without motors. (Moscow, Military Attache, May 20) The London War Office is increasingly inclining to the view that Russia has secretly agreed not to oppose any German operations in the Middle East. (London, Military Attache, May 19) Africa The Suez Canal 18 still closed. (It has been closed now since May 9. The cutting of this line of communications is most serious.) (London, Military Attache, May 20) Military authorities in London feel that even with the complete conquest of Italian East Africa, it will not be possible to remove substantial British forces from this area "since it will be necessary to prevent a reoccupation by axis troope". (This reasoning is more than a little absurd since the only way axis troops could land in Ethiopia is from the air from bases hundreds of miles distant. The Ethiopians could easily handle any such air-borne invasion). London, Military Attache, May 19) Far East According to the British War Office, the Japanese have demanded all the rubber production in Thailand in exchange for oil. "It would be interesting to determine the expected source of the oil" (Thailand is A fairly important rubber source, producing about 40,000 tons a year. ) (London, Military Attache, May 20) 183 Paraphrase of Code Cablegram Received at the War Department at 06:52, May 20, 1941 SECRET By authority A. C. of 5/22 Date MAY 21 1941 Initials London, filed 11:37, May 19, 1941. 1. Iraq. The British forces in Habbaniya have been reinforced from the south. The Basra-Ashar district remains quiet. on 2. After repeated British representations, Turkey has promised to move troops in the amount of approximately one division to the Iraq border and one to the Syrian border as a gesture only. The Government maintains that they will not be able to place them in position until the first of June. Turkey refuses to take any action with a view to preventing the use of railroads for forwarding German equipment into Iraq. 3. Syria. German planes based on Syria are continuing active operations over Iraq. Planes and gun crows are still arriving at airports and the French military authorities are granting them full cooperation. 4. Crete. British authorities here announce that plans for the defense of the island are in satisfactory detail and British Military Intelligence estimates that in order for any major land forces to operate on the line Syria-Sues it will be necessary for the Axis to seise both Crete and Cyprus and to neutralise the British Fleet in the Mediterranean. 5. Ethiopia. The surrender of the Italian troops at Amba Alagi leaves only three comparatively small concentrations of troops still to be eliminated. Some British forces can now be relieved for SECRET 184 SECRET duty in Egypt. But military authorities do not expect that any substantial forces will be removed since it will be necessary to prevent a reoccupation by Axis troops. 6. The War Office increasingly feels that a secret agreement has (already been consumated between Russia and Germany by which the former will not oppose any German operations in the Mid East. This is not yet accepted officially. 7. Libya. May 15. In the retaicing of Capusso the Germans employed more than 40 medium and a number of larger tanks. Some of these were destroyed or damaged and 500 prisoners were taken by the British who, however, suffered the loss of 10 of their own infantry tanks. LEE Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-2 War Plans Division Office of Naval Intelligence Air Corps Assistant Chief of Staff, G-3 SECRET CONFIDENTIAL 185 of Date Sullegres Received as the Was Department as 25153, my 19, 1961. filed my 19, 1941. the feet that there are a of - wrouge from Balgaria, Togentevia, and Greese to the worth and northeast is - established. I as told w the - staff of the Any that Actic troup items and thats batteries three Switch is Showes. with regular to a cobingres from the Industry mobiled 195 and dated my 18. About - please of wrillery (15gtt) and - horess, w - - were also east. the strange depota near Reyets supplied the multions. Traveling w ets, about Netabols and reached Syrta. Alegge, Detrus, Description, and Palagra are the airtielde new is the hands of the - Also the leaking fields as Theorge are expected to arrive w ate transport. I the other healing Stells in Syria are I Regulate Tripoli. There is also a well field - Healthin, Tarky. You a considerable area, the berrata is of a matere that facilitates landings. the following French please are in Byrias - - each of Marcase and Markins, - too - of Potes 63. the Brittah my this the all reflancy as tripoli we in you - together with age - of georline. they also in that the - have increased their artillary in - divisions. the increase is from a to 36 please, I 165 - houisease. Assembles is divited to Oblogram 151 and 155 from the dated May 25 and 16 respectively. CONFIDENTIAL CONFIDENTIAL (ce Notes - / - 100 separate - I of as Soublema - - - / w work to I I Non. ⑉ - 353 will to separate Intere. as office Ate Samps - - CONFIDENTIAL 186 187 CONFIDENTIAL and Deras. Zikyn. Also attacked was Galate, Iels of Rhodes. Fightere mehine-genned an enery transport with considerable effect near Names. s Ireal theater. R.A.P. planes in Isma supported ground operations against Fallujah, which has been taken. Planes based in Falestine bombed a gasoline dump at Raynic airdrone in Syria. 5. Asia Air Activity Other Theaters. n Grates Theater. Twenty-seven Axis planes dive-beabed Suita Day. s Imal Theater German planes attacked contined British-Arab troops in Iraq. but there were no annualties. 6. Aircraft Losses. Other Theaters. a No British leases were reported. A. During the bombardment of Suda Day two German planes were destroyed. 7. There is a reliable War Office report that the Japanese have demanded all rubber production in Thailand in exchange for oil. It would be interesting to determine the expected source of the oil. 8. A submarine has torpedood and sunk a British ship 900 miss west of Freetown. 9. The British have picked up a French ship with 1700 Indo-Chinese troope on board 300 miles south of Freetown, Sierra Leone. 10. The Suez Ganal is only open at the south end now. LEE Distributions Secretary of War State of Treasury of WAX Chief of Staff Assistant Chief of staff, G-3 Var Plans Division Office of Naval Intelligence (2) Air Gerpe G-3 CONFIDENTIAL 188 CONFIDENTIAL Paraghance of Code College Received at the War Department at 08:00, May so, 1942 Lender. filed 14157. my no. 1941. 1. Milk Me Antivity - the Continues s baz of Year 29. Activity - this tay consisted of attacks on - shipping w please of the Gonstal Communi. Seventy heavy busbers of the R.A.F. s attached the mail yards as Kiel. seven beathere attached Nature I Indian, and four - sintrence on north Commany. the at Oherbourg were attached w planee of the Goastal Command. 2. Activity as this night was wlight and s dispereed. Several planee were ever Fast Anglin. Germall, Seven, Igno Day. Grystal Channel and the Thance Natural. s Day of New 19. Considerable recommissance ever the Tay and Brimm, England. and Duntalk and Dolfact, Iroland. Patrole also operated ever the straits. s. Messaft lesses. Medical Theater. s During the British operations ever the Continent. night of May 18-19, there were as lessee. s During the Germa operations - the day of May 19. Britten fighters destroyed five planse. 4. Britter Mr Antivity Other Theaters Theater Planos of the Reyel Air Foree based in Name s continued their attacks on energ-eccupied sintrenes at Apellenia, Dengant CONFIDENTIAL CONFIDENTIAL 189 of Code Ballogram Received at the Mar Department as 9:55, May 20, 1941 Mossow, filed May 20, 1942. Ingestevia Military Attache stated that thief of the Red Army said to him the Seviate will fight Germany later and are writing for the Milted States to enter was, and that the Seviet Government distrusts England - suspects Need flight as effort to term was against U.S.S.R. German Air Attache stated this Germany turned over to the U.S.S.R. ten Juners-52 without meters. Japanese Military Attache states that only 100 Sevier divisions actually identified with less than 100 filly equipped. YEATON Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff War Plans Division Office of Naval Intelligence o CONFIDENTIAL 190 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 23, 1941 Secretary Morgenthau TO FROM Mr. Kamarok Subject: Weekly Military Report: The Accuracy of British Military Forecasts Judging from the record of the past nine months, it is possible to reach some tentative conclusions on the accuracy of the estimates of the situation made by British military leaders. On the whole, the British military leaders have shown themselves to be fairly accurate prophets in their forecaste of what the axis was going to do. They have been overoptimistic in their judgments of what they themselves and their allies could do. There is only one British estimate of what Russia was going to do and that proved completely inaccurate. The following liste the forecasts of the British military as they were reported to us. The Invasion of England September 5, 1940 The British have not discovered any indication of impending invasion. September 13 German plans for invasion are now complete. Next week will be the critical period. It is probable that the German invasion will September 23 October 28 December 4 be along the axis Calais-Dover-London. There is no evidence of an immediate invasion. There is no indication of impending attack. After Christmas, the danger of invasion will practically vanish because of rough water in the Channel. 191 -2- January 19, 1941 March 16 April 17 Division of Monetary Research All reports indicate that the Germans will attempt the invasion sometime in the spring. February is the earliest date referred to. There are no indications that an invasion attempt will be made in the near future. There is evidence that the German staff is again planning invasion of Great Britain which British Military Intelligence estimates will be about the first of May. War in the Balkans October 28, 1940 Germany will not go to war in the Balkans but will use the coming winter to bore from within. February 23, 1941 German troops will probably arrive in Sofia, Bulgaria, on or about the first of March. (They arrived about March 5) March 14 Germany 18 holding back in order to see if the Italian army in Albania can take care of the Greeks there. If the Greeks continue to be successful, it is thought the Germans will move through Yugoslavia with the intention of hitting at Salonika and at the same time cutting off the Greeks in Albania. (This 18 just about what the Germans did do.) Road conditions and the terrain in the Belkans theater give an advantage to the British and Greek defenders since the operation of mechanized forces in this area would be greatly hampered. March 16 Germany plane to bring an end to the fight- ing in the Balkans by April 1, either by military operations or through negotiations. (This could be correct since the Yugoslav coup d'etat upset German plans.) March 21 Negotiations between Yugo slavia and Germany will reach a crisis on March 23 or 24. (The axis pact was signed March 25) March 21 Turkey will be willing to consider an attack on Greece by Germany as a cause for war provided Yugoslavia 18 willing to do the same. 192 Division of Monetary Research April 3, 1941 On April 5, Yugoslavia and Greece will be subjected to simultaneous attack. (The attack started April 6) April 15 General Kennedy, Director of Operations, War Office, expressed little hope of any immediate success in the Balkane, especially in regard to the Yugoslavian Army. Nevertheless, he hoped that it would be possible for them to continue their defenee for a minimum of thirty days. (The Yugoslav campaign was practically over as General Kennedy spoke.) Middle East April 10, 1941 There is evidence that the German advance on Egypt is losing force and that the German situation in regard to supplies 18 serious. (The advance stopped a few days later.) May 1 May 11 The next German move will be an attempt to seize Crete and occupy Spain and Portugal. (Crete WB B attacked on May 20) The British Air Ministry believes no German planes can arrive in Iraq this month. (Nazi planes were in Iraq on May 14.) Far East September 24, 1940 It is believed that Japan and Germany have come to an agreement in the Far East regarding loot and common policy and this may be announced shortly. (Tri-partite pact was announced September 27.) Russia January 15, 1941 The indications are that Russia will occupy Eastern Moldavis in Romania in accordance with a prearranged agreement with the Germans. 193 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 23, 1941 Secretary Morgenthau TO Mr. Kamarck FROM Summary of Military Reports Subject: Crete (The situation in Crete has reached the critical stage. British prospects in Crete at the present time look very dark. With the German undisputed command of the air over the island and the German capture of several airports, it is doubtful whether the British will now be able to hold the island.) In the bombing attack on May 19, preliminary to the invasion, the bombing was 80 heavy that all personnel had to take cover in slit trenches for the day. The Air Force headquarters began burning its papers on May 20, the day the invasion began. (Cairo, Military Attache, May 20) The British garrison in Crete consists of the greater part of the New Zealand division which was in Greece and 4,000 marines. (This would give a total of about 15,000 soldiers, probably lacking heavy equipment and without air support. In addition, there may be as many as 20,000 Greek soldiers.) (M.I.D. Situation Report, May 22) Spain German troope began to return to France about May 10 with the concentration of troops on the Spanish frontier continuing. The reserve troops in this area are being relieved by shock troops. There are now 6 German divisions in this sector (3 infantry, 2 motorized, 1 armored). (Vichy, American Ambassador, May 20) The Spanish grain harvest has begun. This suggests 20 as the earliest convenient date for the passage of German troops through Spain. (M.I.D. Situation Report, June May 21) SECRET 194 By authority A. C. of S.,Q-2 Date MAY 22 Initials Perephrase of Cafe Cablegram Received at the War Department at 07:38, my 21, 1941. Gaire, filed 20:30, May 20, 1942. I 1. The following is a security of the situation in Grate. 2. In the attack of May 19, booking was so heavy that all personnel was foreed to retire to alit tranches for the whole day. At British handquarters, the Air Fores is new burning doon- I ments, 3. The attack by parachute treops and gliders began at 06:00, May 20, and was supported by minterrupted beering and machine-guining of ground troops, It cumanced at Suda Bay, Milent and Haraklism, but spread out later in the day as gliders towed by planes landed at Ritens, m Authorities here report that a Janker's 52 can carry 15 infestrymen, or can tow several small gliders carrying 10 to 12 each, or one big glider with 24, so The attack of May 20 was proceded on the previous day by winterrupted beeking and strafing of air and ground troops in the area surrounding Canes. FELLERS Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff WPD ONI SECRET CONFIDENTIAL Paraphrase of Code Indiagram Received at the War Department at 9:07, my 21, 1941. Visity, filed my 20, 1942. Genera troops began to return to Transe about My 10 and movement new shows a little increase. In partian of occupied territory, reserve divisions have been relieved by sheek troops and consentration continues. Estimated that 3 Infantary, 2 meterized and 1 amount divisions are new in that area. LEANY Distribution Secretary of Way State Department Under Secretary of War Secretary of Treasury Chief of staff Assistant Chief of Staff, as War Plans Division Office of Naval Intelligence CONFIDENTIAL 195 196 RESTRICTED G-2/2657-220; No. 398 M.I.D., W.D. 12:00 M., May 22, 1941. SITUATION REPORT I. Western Theater. Air: German. Minor offensive activity and no night raids. British. Day attacks on Helgoland and northern France which were severely mauled by fighters. Apparently no activity last night. II. Greek Theater. The German attack on Crete continues. The Malemi airfield, to the west of Canea, is in German hands. Other German air landings have occurred near Rethymo and Herakleion (Cordia). The latter town is in German hands. The British garrison on Crete consists of the greater part of the New Zealand Division, which was engaged in Greece, and 4,000 Marines. German air superiority over Crete is self-evident. The British are bombing German take-off airdromes in Greece. III. Mediterranean and African Theaters. Ground: North Africa. No change. East Africa. The British have occupied Tohen, in the northeast corner of Italian Somaliland. Air: Axis attacks renewed on Tobruk. Malta was raided. IV. Middle Eastern Theater. Ground: No change in the situation. British motor-borne reinforcements are reaching Habbaniyah from Palestine. Air: German air strength is gradually building up. RESTRICTED 197 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 31, 1941 Secretary Morgenthau TO FROM Mr. Kamarck Subject: Summary of Military Reports for the Week Ended May 31 British Navy British naval authorities state that the risk of passage of convoys through the Straits of Sicily is too high in proportion to the advantages. This is in spite of the fact that the last convoy brought tanks and planes which were desperately needed in Egypt. (Cairo, Military Attache, May 23) In view of its losses around Crete (up to now three cruisers, four destroyers) the British Navy asserts that it is folly to pursue its operations in Cretan waters. (Cairo, Military Attache, May 23) (The foregoing two reports are important in their implication that the activities of the British fleet in the Mediterranean are going to be greatly limited in the future. With the growth in strength of German air power in the Central and Eastern Mediterranean, the British fleet will probably not be able to make more than raiding sallies into the Central Mediterranean except it the risk of great losses. Hess (Hess landed in England three weeks ago. The British have not yet made available to our military representatives any information on the purpose of his arrival. Under these circumstances, the suspicion grows stronger that the Deputy Fuehrer traveled to England to contact a British appeasement element.) Syria The British, according to our Cairo military attache, do not look with favor upon a Free French Syria. This is supposed to be because the Vichy French are being concentrated in southern Syria rather than moving into Lebanon. (Cairo, Military Attache, May 23) 198 -2- Division of Monetary Research (Concentration in Lebanon along the coast would mean a threat to Palestine. Concentration in southern Syria presumably menaces only the desert of Trans-Jordan.) Turkey Romanian officials believe, and this belief 18 accepted by our Romanian attache, that a secret agreement already exists between Germany and Turkey. (Bucharest, Military Attache, May 22) Egypt The R.A.F. in Egypt has been reinforced by two Beaufighters and forty-three Hurricanes which flew from England by way of Malta. (Cairo, Military Attache, May 23) Russia The German preparations against Russia appear to have eased off. The bulk of German troops on the Romanian-Russian frontier are now reported to be moving north out of Moldavia into Bukovina. (Bucharest, Military Attache, May 22) Romania The Germans are not making any attempt to train or organize the Romanian army. In case of a war against Russia, the Romanians would merely act as scavengers of the battlefield. (Bucharest, May 22, 1941) Spain According to Rome sources, the size of the wheat crop in Spain largely will determine whether the Spaniards will allow any passage of German troops. For if Spain permits such a movement the British will out off the movement of wheat supplies to Spain. A bumper wheat crop is not expected. (The Spanish wheat harvest is supposed to be over by about June 20) (Rome, Military Attache, May 23) 199 SECRET By authority A. C. of S., G-2 Date MAY 27 1941 Initials ) Paraphrese of Code Cablegree Received at the War Department at 05:58, my 25, 1941. Caise, filed My 25, 1941. 2. Saving lost five destroyese and - orniour British Boxy assorts that 18 is fully to - its operations in Greten waters. 2. The destroyer on which the King of Greese was excesing from Grate to Name is overles. 3. Two amount divisions were embarked as Greek parts for potate some time before my 19. 4. May 22: Cas destroyer and two large freighters with a great - Break fishing boats mounting in all to yossibly - half of a contry were work in action with British navel units. (0-2 Note: This is evidently the economy reported in eable of May 22 as having 30 ships.) 5. My 22: One healted large air transporte leaded as the Malent sinfield as the nate of - every five states. The - rate and numbers were observed throughout May 23. Is is the opinion of British Military Intelligence that - air-base division was is the operations as Malent. 6. my 25: Two Bennfighters and 45 Harriesnos flow from England to Gaire by my of Malta. 7. The British do not look with favor upon a Free French Syria as they are of the opinion that the Vicky French are not moving sate Lobana but are being concentrated in southern Syria. 8. Seven motor vessels were observed hooded is a southerly direction off Thanks. 9. British navel authorisies commuting upon the recent unconcertal passage of the convey through the Struite of Sietly state that the risk is SECRET * SECRET 200 out of all proportion to - preside - / - s that this - - leaded with - - / which the - in text nooled 10. my m. Five - of - Memberne - state - I a - daytight level bumbling attents as - of 3,000 Seek - - easy In - - attage to - Signature the Britich / limbed thats - wage. Distributions of New of of The Shiet of Statt Austabana Shief of muss, as - Please Division Office as of Insulligmen Ass Sarge SECRET Roy 162