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302
THE SECRETARY OF THE TREASURY
WASHINGTON
December 16, 1943
MEMORANDUM FOR THE PRESIDENT
1. In January 1943, you approved the following re-
co mendation of a committee consisting of representatives
of the Departments of State, Treasury and Nar, the Office
of Lend-Lease Administration and the Board of Economic
Warfare:
"It is recommended in the light of present
circumstances, that the United Kingdom's gold and
dollar balances should not be permitted to be less
than about $600 million nor above about 1 billion."
2. Notwithstanding the directive, the British Government's liquid dollar exchange assets have continued to rise
and are now over 1,650 million, or $1,300 million more than
at the time the Lend-Lease Bill was presented to Congress in
January 1941.
In addition to the gold and dollar holdings of the
British Government, residents of the United Kingdom hold
320 million of private dollar balances and about 1,150
million of long-term investments in the United States. of
the latter assets, $500 million are pledged with the R.F.C.
against the $550 million loan.
3. Within a few months after your directive was issued,
division of opinion developed within the Committee concerna ing its proper implementation. In those discussions, the
Treasury and the Board of Economic Warfare, with the support the
of the War Department, urged its literal interpretation; favored
State Department and Lend-Lease, on the other hand,
a more liberal interpretation.
During the ensuing months, the Treasury and the Board of
Economic Warfare pressed for a reduction in civilian lend- the
lease as a means of implementing your directive, but to State
and Lend-Lease Administration were reluctant rec-
Department ommend such a step in the absence of an exhaustive reexamina- and
policy of financial assistance to the British It was of
Britain's tion of our over-all international financial position.
PORVICTORY
BUY
-2-
303
finally agreed to request the British for strategic and
other materials as reciprocal aid, estimated likely to
amount to 200-3300 million during the ensuing year. This
proposal was immediately placed before the British. Several
months elapsed before the latter agreed to the proposal in
principle and even then only after considerable prodding.
Several more months have been spent in an endeavor to arrive
at methods of implementing the proposal. We are disappointed
with the progress made to date and we think there is little
reason at present to be hopeful that this device will in
effect yield anything like the amount needed to carry out
your directive.
4.
The British Government has strongly objected to a
policy which prohibits an increase in their gold and dollar
assets. They emphasize that the rise in their holdings of
these assets--whic may be expected to continue at an annual
rate of at least a half billion dollars unless steps are
taken to interrupt this trend--is only a fraction of the
increase in their short-term indebtedness to overseas countries other than the United States.
The assert first that $365 million of these liabilities
represent a specific claim against an equivalent amount of
dollars and that that sum must be subtracted from their total
holdings in order to obtain the correct figure of their availaole Cold and dollar reserve.
Secondly, they claim that their short-term sterling
liabilities to overseas countries are five times the amount
of their gold and dollar holdings and that these liabilities
are increasing at a rate of 2.5 billion a year.
The British claim that they should be permitted to
accumulate gold and dollars as E. necessary reserve against
these growing liabilities. They assert that the continued
accumulation of gold and dollars is a prerequisite to the
continuation of the policy b. which they have managed to
finance their war expenditures in India, the Near East
and other overseas areas.
Finally, the British fear that their mounting liabilities
to overseas countries will lace them in a very vulnerable
position after the war and jeopardize their chances of a
speedy post-war recovery.
5. There is merit, of course, in the British positio. but we feel that neither Britain's international
financial position outside the United States nor its post-
304
-3war needs were among the considerations which prompted
Congress to pass the Lend-Lease Act. In our opinion, Lend-
Lease aid to Britain was instituted in order to enable her
to obtain those goods and services essential to the prosocution of the war for the purchase of which she lacked
the necessar dollars, and that therefore to administer
the Act in such a wa as to help underwrite Britain's
short-torm indebtedness to other countries or to improve
her post-war financial position is not in accord with
Congressional intent. The Fritish concede that this
narrower purpose may have been the original objective,
but they believe that our entry into the war alters the
situation.
It is our view, however, that if we are to administer
the Lend-Lease Act SC as to provide Britain with more dollars than are required for the purchase of essential war
goods and services, Congress should be informed and given
an opportunity to indicate its attitude toward such a change
in policy.
6. Our 1 terpretation of Congressional intent seems
to be supported by the report of the Truman Committee entitled "Outlines of Problems of Conversion from War Production" and submitted to Congress on November 5, 1943.
To quote from page 13 of this document:
"In the latter connection, we should nevor forget that lend-lease was originally authorized by the
Congress, solely because the English and others whom
we desired to assist did not have sufficient American
exchange to purchase materials needed by them. LendLease was never intended as a device to shift a portion
of their war costs to us, but only as a realistic recognition that they did not have the means with which
to pay for materials they needed.
"Before authorizing lend-lease, the Congress
expressly requested and received assurances that
lend-lease assistance would be extended only where
the recipient was fully utilizing all of its own
resources.
Recomtendations
Eleven months have passed since you signed the directive to keep the British balances between 8600 million to and
1,000 million. During this period we have attempted from
develop a program designed to keep these balances
rising above that ceiling. To date we have not been of
successful in securing the neccesars cooperation the of
Erilish Government for the effective implementation
this objective.
305
-In our opinion, nothing has happened during the past
year to warrant a change in the policy laid down in your
directive. The considerations which prompted the Committee's
recommendation last January appear to us to be as valid
toda; as they were then.
Therefore, unless you indicate to the contrary, we
propose to take the following steps to reduce the British
balances to within the range indicated in your directive.
1. Discontinue certain transactions which would
never have been undertaken except for Britain's
acute shortage of dollars, and which experience
has shown are opposed b. considerable sections
of public opinion. Among the transactions which
it is proposed to cut are: (a) long- term capital
installations; (b) off-shore purchases such as
Iceland fish, Caribbean sugur, and oil from outside the U.S.; (b) civilian goods to the Middle
East; (d) all goods to South Africa; (e) small
requisitions, and (f) certain other controversial
civilian items.
2. Since these measures ma; be insufficient to bring
Britain's balances down to the agreed upon maximum
of 1 billion, it is further proposed to have the
British pay for as large a proportion of civilian
goods obtained in this country as is necessary to
help reduce the British Government's cold and
dollar holdings to, and keep them at, about 1
billion.
306
25
DEC : 1943
by dear Mr. Secretary:
Last March the President approved a recommendation
made by the Cabinet Committee on the Dollar Position of
land-lease countries, that in the light of present cir-
cumstances appropriate action be taken to maintain Canada's
gold and U.S. dollar balances at not less than about 300
million and not more than about 350 million. Since then,
despite the cancellation of over $100 million of U.S.
contracts and contrary to the Canadian Government's expectations, Canada's gold and U. S. dollar reserve has
risen markedly and is now roughly twice as high as the
amount decided upon last Spring.
The improvement in Canada's U.S. dollar exchange posi-
tion is such as to eliminate, at least for the time being,
the necessity fr transactions entered into by this Govern-
ment, in pursuance of the Hyde Park Arrangement, for the
purpose of increasing Canada's U.S. dollar receipts. In
view of this fact, it is our opinion that henceforth no
U.S. Government contract should be placed in anada which
cannot be readily justified on the basis of non-financial
considerations. Furthermore, we feel that all existing and
contemplated U.S. Government contracts as well as all contemplated and incompleted U.S. Government projects in Canada
should now be reviewed in order to determine which of them
could be cancelled by us and taken over by the Canadian
Government without detriment to the war effort of the United
Nations.
In this connection, the Canadian Government has pro-
posed that it take over the obligation of the Metals Reserve
Company, under an agreement with War Supplies Limited, to
make capital advances up to a maximum of $10 million In
order to develop certain marginal base metal mines in Canada
and assure their production for the United States war effort.
By
307
-I should appreciate being informed of the
attitude of the Reconstruction Finance Corporation
concerning this proposal. In addition, it would
be helpful if you would let me know what contracts
the Reconstruction Finance Corporation and its
subsidiaries have outstanding in Canada and what
projects they have under way in that country as
well BE which of these could be cancelled and taken
over by the Canadian Government without hindrance
to the war effort.
Sincerely,
(Signed)
H.
Secretary of the Treasury.
Honorable Jesse Jones,
Secretary of Commerce,
811 Vermont Avenue,
Room 1215,
Washington, D. C.
hdh:TMK:r1/grs
12/16/43
308
25
DEC16 1943
Dear Mr. Crowley:
You will recall last Marc the President approved
a recommendation made by the Cabinet Committee on the
Dollar Position of lend-lease countries, that in the light
of present circumstances appropriate action be taken to
maintain Canada's gold and U.S. dollar balances at not
less than about $300 million and not more than about $350
million. Since then, despite the cancellation of over
$100 million of U.S. contracts and contrary to the Canadian
Government's expectations, Canada's gold and U.S. dollar
reserve has risen markedly and is now roughly twice as
high as the amount decided upon last Spring.
The improvement in Canada's U.S. dollar exchange posi-
tion is such as to eliminate, at least for the time being,
the necessity for transaction entered into by this Govern-
ment, in pursuance of the Hyde Park Arrangement, for the
purpose of increasing Canada's U.S. dollar receipts. In
view of this fact, it is our opinion that henceforth no
U.S. Government purchase should be made in Canada which
cannot be readily justified on the basis of non-financial
considerations. Furthermore, we feel that all existing and
contemplated U.S. Government contracts as well as all contemplated and incompleted U.S. Government projects in Canada
should now be reviewed in order to determine which of them
could be cancelled by us and taken over by the Canadian
Government without detriment to the war effort of the United
Nations.
In a memorandum submitted to the Treasury on December 7,
the Canadian Government estimates that by the end of 1943
Canada will one the U.S. Government a total of $115 million
for goods supplied under Canpay requisitions. This is in
addition to the $50 million already paid. It WAS agreed
that Canada should make another lump payment on this account
as soon as the amount involved is ascertained. Dr. Clark,
309
- 2Deputy Minister of Finance for Canada, promised to have
the Canadian supply people check their figures and I
wonder if you would also have your staff look into the
matter.
The memorandum also states that the Commodity Credit
Corporation has recently been making unexpectedly heavy
purchases of Canadian grain. Dr. Clark stated that If his
memory served him correctly the amount purchased to date
totals about $115 million.
For your information, the Canadian Treasury has inquired informally whether Canada should reimburse the
U.S. Government for goods received under Canex requisi-
tions--that is, for goods received by Canada and charged
under lend-lease to the United Kingdom in exchange for
other goods purchased here by Canada and used in that
country for production for British account. Goods so
delivered are estimated by the Canadiana to amount to
$40-$50 million.
I should appreciate it if you would let me know
what purchases are being made by Foreign Economic Adminis-
tration in Canada, what contracts it has outstanding and
what projects it has under way there, as well AE which of
these could be cancelled and taken over by the Canadian
Government without hindrance to the war effort. In the
determination of the latter, no consideration should be
given to the Canadian Government's ability to finance
the transaction, as that matter is to be the subject of
further exploration between the treasuries of the two
countries.
310
-3Finally, I should appreciate it if you would take the
necessary steps to see that future pure ases made in Canada
and contracts placed there by Foreign Economic Adminis-
tration are limited to those which are dictated by other
than financial considerations.
Very truly yours,
(Signed) H. Morgenthau, Jr.
Secretary of the Treasury.
Mr. Leo T. Crowley, Administrator,
Foreign Economic Administration,
Room 414,
National Press Building,
14th & F Streets, N.K.,
Washington, D.C.
HDW:TMK:r1 12/14/43
311
25
DEC 16 1943
Dear Mr. Crowley:
This will acknowledge receipt of a copy of your
letter to Secretary Hull dated December 6, 1943 in
which you state that the Foreign Economic Administration
feels strongly that the Union of South Africa should be
placed on a cash basis to the fullest extent possible and
that the Union Government should be requested to reimburse
this Government for lend-lease assistance already received.
On November 15, 1943, I wrote to Mr. Dean Acheson ad-
vising him that the proposal to place all transactions between the Union of South Africa and the United States on
a cash basis was not only acceptable to the Treasury but
was in line with the position we had taken all along.
So far as concerns reimbursement for lend-lease as-
sistance already extended, it seems to us that such a request might have unfevorable repercussions and might be
Interpreted as establishing a precedent for future lendlease settlements with other countries. Moreover, it
might lay this Government open to criticism of an unpleasant sort.
Very truly yours,
(Signed) H. Morgenthau, Jr
Secretary of the Treasury.
Mr. Leo T. Crowley, Administrator,
Foreign Economic Administration,
Room 414,
National Press Building,
14th & F Streets, N.W.,
Washington, D.C.
HDW:TMK:r1 12/14/43
312
FOREIGN ECONOMIC AIRINISTRATION
December 6, 1943
The Honorable
The Secretary of State
Dear Mr. Secretary:
On November 23, 1943, Mr. Lauchlin Currie met with the Minister
from the Union of South Africa for an exploratory talk regarding
the scope of and procedures relative to the supplying of raw
materials by the Union of South Africa as reverse lend-lease aid.
Mr. Currie hasn't pressed this matter, and we have had no further
discussions of the subject with representatives of the Union because the Foreign Economic Administration feels strongly that
every effort should be made to place the Union of South Africa on
a cash basis to the fullest extent possible; and that this possibility should be thoroughly explored before broadening the scope
of reciprocal aid.
According to recent figures submitted to us by the Treasury
Department, South African gold holdings now total about $640
million (compared to some $222 million in August, 1939). Gold
production still continues at a rate of approximately $440 million
per year and only about half of this production is probably needed
to settle South Africa's unfavorable trade balances. As a result
of continually increasing gold holdings, the repatriation of substantial amounts of securities previously held abroad, etc., it
is estimated that there has been a net over-all improvement of
more than $600 million in the South African overseas financial
position since the beginning of the war. In the light of South
Africa's small population, these are indeed impressive figures.
At a meeting held with the South African Minister and other representatives of South Africa on November 6, to discuss the matter
of obtaining raw materials from South Africa as reverse lend-lease,
Assistant Secretary Dean Acheson suggested to the South Africa
representatives that South Africa might wish to consider paying the
cash for all goods obtained from the United States and that
United States would do likewise for goods obtained from South
Africa; and it appears that this suggestion met with some favor
on the part of the South African representatives.
COP Y
313
The Secretary of State
--
December 6, 1943
It, therefore, appears that the State Department and the Foreign
Economic Administration are already in agreement that South Africa
should be put on a cash basis as to all future material aid. In
addition, we believe that we should request the Union Government
to make settlement for all lend-lease aid heretofore furnished to
it. Total lend-lease exports to South African destinations to
date have amounted to about $130 million, of which approximately
$45 million have been civilian goods. (These figures somewhat
overstate the amount of lend-lease aid to South Africa, since they
include exports for the use of the United Kingdom and possibly of
other governments. On the other hand, various charges such as those
for services and supplies to South African forces in North Africa,
etc., are reflected in the United Kingdom lend-lease account which
might perhaps be chargeable to the South African Government.)
We feel that there should be no objection to a settlement such as
we suggest, as it would me rely put South Africa into a position
similar to that of Canada.
We recognize that on April 26 of this year the South African Government, in a memorandum to your Department, stated that it would be
grateful "if the question of a refund of previous lend-lease credits
were not pressed"; and we appreciate that in the Department's memorandum of October 6 to the South African Government it was stated
that this request would be acceptable, provided an agreement were
reached with the Union Government on reciprocal aid. However, in
view of the circumstances mentioned above, we think that the South
African Government may be willing to reconsider its position; and
we believe that the time for raising this question will never be
more propitious than the present.
I recognize, of course, that great care will have to be exercised
to assure that neither this proposal nor any settlement which may
result therefrom will in no way be taken as establishing a precedent
indicating the conditions upon which we intend to make future settlement of lend-lease relations with other governments.
Sincerely yours,
(Signed) Leo T. Crowley
Leo T. Crowley
Administrator.
LTC:CD:
CC: Sec. Morgenthau
Mr. Currie
Mr. Coe
Mr. Cox
Mr. McCamy
314
Dec. 16, 1943
Harry White
Secretary Morgenthau
I woke up in the middle of the night worrying
that we have not given Leo Crowley a copy of our letter
to the General Staff in regard to lend-leasing silver
to India, and their reply. I wish you would get that
over to them this morning. Please write a letter
saying you are doing this at the direction of the
Secretary.
315
DEC 16 1943
Dear Mr. Growley:
I as forwarding to you, at the direction of
the Secretary, copies of letter from Secretary
Morgenthan to Admiral Leahy regarding lend-leasing
of silver to India and Admiral Horne's reply
thereto.
Very truly yours,
(Signed) H. D. White
H. D. White
Assistant to the Secretary
Mr. Leo T. Crowley, Administrator,
Foreign Economic Administration,
Room 434,
National Press Building,
14th & F Streets, N. W.,
Washington, D. C.
Enclosures
ISF/efa 12/16/43
316
c
0
P
Y
Nev 18 1943
My dear Addral Leaby:
The U. S. Treasury has been requested by the Govern-
sent of India to grant its immediate approval for the lendleasing of 100 million ounces of silver to the Government
of India. The Government of India has indicated that this
silver will be used for anti-inflationary purposes.
The U. S. Treasury has been studying the situation
in India and believes that the use of this silver my be
of assistance to the Government of India in its efforts to
cope with the difficult problem of inflation. However,
since India is a base for military operations in Eastern
Asia and since the Government of India has given military
necessity as one of its principal arguments for the lendleasing of this silver, I feel that the Combined Chiefs
of Staff may have an interest in this matter.
Therefore, I would appreciate if the Combined Chiefs
of Staff would take under consideration the question of
whether or not the importance of greating this request
from a military point of view outweighs the financial
considerations involved.
If the Combined Chiefs of Staff feel that this
matter is of CODOCTS to it, I would be pleased to receive
its opinion as to the desirability of acquiescing to the
Government of India's request.
Sincerely yours,
(signed) H. Morgenthau, Jr.
Secretary of the Treasury
Admiral William D. Lealer,
Chief of Staff to the Cemender
is Chief of the U. S. Army and Mavy,
Washington, D. C.
317
c
0
P
The Joint Chiefs of Staff
I
Washington
SECRET
3 December 1943
SECRET - SECURITY
The Honorable
The Secretary of the Treasury,
Washington, D. C.
My dear Mr. Secretary:
The Joint Chiefs of Staff acknowledge receipt
of your letter dated 18 November 1943, referring to the
matter of lead-leasing 100 million ounces of silver to
the Indian Government for anti-inflationary purposes.
military -
The Joint Chiefs of Staff consider that a FOR
somably stable currency is a necessity to successful
tensive
would importi For
this it is considered that currency India
should
stable
to
Allies
to conduct inter-
forence.
the
U. S. war
not
be affected
sending
this the
Subject to the above considerations,
country. adversely reason, be inflation operations kept Furthermore, military sufficiently contusted operations by fres therefrom these India, the production operations. silver enable without and the out the that would of of Joint
Chiefs of Staff have no objections from a military point
of view to the Lead-leasing of the silver as requested.
Sincerely yours,
For the Joint Chiefs of Staff:
F. J. HORES,
Viee Admiral, U. S. Nevy,
Vice Chief of Maval Operations.
SECRET
318
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE Dec. 16, 1943
Secretary Mergenthau
TO
FROM
Mr. Haae
I am transmitting herewith a chart showing the WPB
Munitions Production Index and war expenditures monthly
for the period July 1940 to date. As you suspected the
real upward movement in munitions production did not begin
until after Pearl Harbor.
319
WAR EXPENDITURES* COMPARED
WITH MUNITIONS PRODUCTION
DOLLARS
PERCENT
Billions
(Munitions
Production)
(Expenditures)
8
800
7
700
6
War Expenditures
*
600
(War, Navy, and
Maritime Commission)
(Billions of Dollars)
5
500
400
4
300
3
WPB Munitions
Production Index
November 1941=100
200
Pearl Harbor
2
Dec.7
100
I
0
0
J S N J M M J1941
SNJMMJS
N J M M 1943 J S N
1942
1940
*Expenditures exclude miscellaneous war expenditures such as those for agriculture
B-480
320
25
DEC 16 1943
My dear Mr. Chairmant
Reference is made to the proposed additional Progress
Report of the Joint Committee on Reduction of Nonessential
Federal Expenditures which was forwarded by your office
to the Treasury on December 15. 1943. to be issued in
lieu of the report forwarded with your letter of
November 4, 1943 for comment, suggestions, and approval.
In view of the fact that the statement contained in
the original draft of the report with respect to expenditures for consumer subsidies has been omitted from the
revised draft, I have no objection to the proposed
report.
Very truly yours,
(Signed) H. Morgenthan, J1
Secretary of the Treasury
Honorable Harry F. Byrd
Joint Committee on Reduction
FederalExpenditures
Chairman, of Nonessential
Congress of the United States
Washington, D. c.
WTH:mlb 12-16-43
By mecause Manuel at 9:05 a m. 12/17
321
TREASURY DEPARTMENT
Washington
FOR RELEASE, MORNING NEWSPAPERS,
Thursday, December 16, 1943.
Press Service
No. 39-93
Secretary of the Treasury Morgenthau today released the
official circulars containing the detailed terms and condi- tions of the 2-1/2 percent and 2-1/4 percent Treasury bonds,
and the 7/8 percent Treasury certificates of indebtedness,
which will be sold, together with Series E, F and G savings
bonds and Treasury savings notes, during the Fourth War Loan
Drive beginning January 18.
The Secretary announced that commercial banks holding sav-
ings deposits will be permitted to subscribe during the Fourth
War Loan Drive to the 2-1/4 percent and the 2-1/2 percent
bonds. Such banks will also be permitted to subscribe to Series F and Series G savings bonds on and after January 1, 1944.
The formula for commercial bank participation in these securities is that any bank holding savings deposits as defined in
Regulation Q of the Board of Governors of the Federal Reserve
System may subscribe to any or all of the four bonds in an
amount not to exceed, in the aggregate, 10 percent of its of savings deposits as shown on the bank's books as of the date
the most recent call statement required by the supervising
authorities prior to the date of subscribing for such bonds, or
$200,000 whichever is less. Under no circumstances, however,
will a bank be allowed to hold more than $100,000 (issue price)
of Series F and Series G savings bonds (Series 1944), combined.
All subscriptions received from commercial banks under of
this formule are to be considered outside of the goal
{14,000,000,000 and will not be a part of any quotas.
The texts of the official circulars follow:
322
UNITED STATES OF AMERICA
2-1/2 PERCENT TREASURY BONDS OF 1965-70
Dated and bearing interest from February 1, 1944
Due March 15, 1970
REDEEMABLE AT THE OPTION OF THE UNITED STATES AT PAR AND ACCRUED INTEREST ON
AND AFTER MARCH 15, 1965
Interest payable March 15 and September 15
1944
Department Circular No. 729
TREASURY DEPARTMENT,
Office of the Secretary,
Washington, January 18, 1944.
Fiscal Service
Bureau of the Public Debt
I. OFFERING OF BONDS
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par and accrued interest,
from the people of the United States for bonds of the United States, designated
2-1/2 percent Treasury Bonds of 1965-70. The amount of the offering is not
specifically limited.
2. These bonds will not be available for subscription, for their own account,
by commercial banks, which are defined for this purpose as banks accepting demand
deposits, except as follows: a commercial bank holding savings deposits as
defined in Regulation Q of the Board of Governors of the Federal Reserve System
may subscribe to the bonds offered hereunder, to the 2-1/4 percent Treasury
Bonds of 1956-59 offered simultaneously herewith under Treasury Department
Circular No. 730, and to beries F-1944 and Series G-1944 United States Savings
Bonds under Treasury Department Circular No. 654, Second Revision, but the
amount of such subscriptions shall not exceed, in the aggregate, 10 percent the most of
the savings deposits as shown on the bank's books as of the date of date
recent call statement required by the supervising authorities prior to such the bank
of subscription for such bonds, or $200,000 whichever is less. No Savings
shall hold more than $100,000 (issue price) of Series F and Series G
Bonds (Series 1944), combined.
II. DESCRIPTION OF BONDS
The bonds will be dated February 1, 1944, and will bear semiannual interest from basis
that 1. date at the rate of 2-1/2 percent per annum, payable on a 15 in each year
on September 15, 1944, and thereafter on March 15 and September mature March 15, 1970,
15,1965,
but the be principal redeemed at the option of the United States on and after day or days,
until amount becomes payable. They will March
in may at par and accrued interest, on any interest Secretary of the
on whole 4 months' or in notice part, of redemption given in such manner as the
323
-Treasury shall prescribe. In case of partial redemption the bonds to be redeemed
will be determined by such method as may be prescribed by the Secretary of the
Treasury. From the date of redemption designated in any such notice, interest
on the bonds called for redemption shall cease.
2. The income derived from the bonds shall be subject to all Federal
taxes, now or hereafter imposed. The bonds shall be subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be exempt
from all taxation now or hereafter imposed on the principal or interest thereof
by any State, or any of the possessions of the United States, or by an local
taxing authority.
3. The bonds will be acceptable to secure deposits of public moneys. They
will not be entitled to any privilege of conversion.
4. Bearer bonds with interest coupons attached, and bonds registed as to
principal and interest, will be issued in denominations of $500, $1,000, $5,000,
$10,000, $100, 000 and $1,000,000. Provision will be made for the interchange
of bonds of different denominations and of coupon and registered bonds, and for
the transfer of registered bonds, under rules and regulations prescribed by the
Secretary of the Treasury. Except as provided in Section I of this circular,
these bonds may not, before February 1, 1954, be transferred to or be held by
commercial banks, which are defined for this purpose as banks accepting demand
deposits; however, the bonds may be pledged as collateral for loans, including
loans by commercial banks, but any such bank acquiring such bonds before
February 1, 1954, because of the failure of such loans to be paid at maturity
will be required to dispose of them in the same manner as they dispose of other
assets not eligible to be owned by banks.
5. Any bonds issued hereunder which upon the death of the owner constitute
part of his estate, will be redeemed at the option of the duly constituted
representatives of the deceased owner's estate, at par and accrued interest to
date of payment, 1 Provided:
(a) that the bonds were actually owned by the decedent at
the time of his death; and
(b) that the Secretary of the Treasury be authorized to
apply the entire proceeds of redemption to the payment
of Federal estate taxes.
Registered bonds submitted for redemption hereunder must be duly assigned to
"The Secretary of the Treasury for redemption, the
to be paid
to the
for proceeds
credit on Federal
estate
taxes
Collector of Internal Revenue at
" Owing to the periodic closingtheof the
due from estate of
transfer books and the impossibility of stopping payment of received interest after to the
registered owner during the closed period, registered bonds be only
closing of the books for payment during such closed period will the paid next
at par with a deduction of interest from the date of payment to
An exact half-year's interest is computed for each full half-year For period frac-
irrespective of the actual number of days in the half year. of the actual a
tional pert of any half year, computation is on the basis
number of days in such half year.
1
324
-3- interest payment date; 1/ bonds received during the closed period for payment
at a date after the books reopen will be paid at par plus accrued interest from
the reopening of the books to the date of payment. In either case checks for
the full six months' interest due on the last day of the closed period will be
forwarded to the owner in due course. All bonds submitted must be accompanied
by Form PD 1782, 2 properly completed, signed and sworn to, and by a certif-
icate of the appointment of the personal representatives, under seal of the
court, dated not more than six months prior to the submission of the bonds,
which shall show that at the date thereof the appointment was still in force
and effect. Upon payment of the bonds appropriate memorandum receipt will be
forwarded to the representatives, which will be followed in due course by formal
receipt from the Collector of Internal Revenue.
6. Except as provided in the preceding paragraphs, the bonds will be
subject to the general regulations of the Treasury Department, now or hereafter
prescribed, governing United States bonds.
III. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and
Branches and at the Treasury Department, Washington. Subscribers are requested
not to trade in the securities allotted hereunder until after February 15, 1944.
Banking institutions generally may submit subscriptions for account of customers,
but only the Federal Reserve Banks and the Treasury Department are authorized
to act as official agencies. Others than banking institutions will not be
permitted to enter subscriptions except for their own account. Subscriptions
must be accompanied by payment in full for the amount of bonds applied for.
2. The Secretary of the Treasury reserves the right to reject any subscription, in whole or in part, to allot less than the amount of bonds applied
for, and to close the books as to any or all subscriptions at any time without
notice; and any action he may take in these respects shall be final. Subject
to these reservations, and to the limitations on commercial bank subscriptions
prescribed in Section I of this circular, all subscriptions will be allotted in
full. Allotment notices will be sent our promptly upon allotment.
IV. PAYMENT
1. Payment at par and accrued interest, if any, for bonds allotted here- One
under must be made on or before February 1, 1944, or on later allotment.
day's accrued interest is $0.069 per $1,000. Any qualified depositary will be
permitted to make payment by credit for bonds allotted to it for itself and its
customers up to any amount for which it shall be qualified in excess of existing
deposits, when so notified by the Federal Reserve Bank of its District.
1
2,
The transfer books are closed from February 16 to March 15, and from August 16
to September 15 (both dates inclusive) in each year.
Copies of Form PD 1782 may be obtained from any Federal Reserve Bank or from
the Treasury Department, Washington, D. C.
325
-V. GENERAL PROVISIONS
1. AS fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions, to make allotments on the
basis and up to the amounts indicated by the Secretary of the Treasury to the
Federal Reserve Banks of the respective Districts, to issue allotment notices,
to receive payment for bonds allotted, to make delivery of bonds on full-paid
subscriptions allotted, and they may issue interim receipts pending delivery
of the definitive bonds.
2. The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the
offering, which will be communicated promptly to the Federal Reserve Banks.
HENRY MORGENTHAU, JR.,
Secretary of the Treasury.
326
UNITED STATES OF AMERICA
2-1/4 PERCENT TREASURY BONDS OF 1956-59
Dated and bearing interest from February 1, 1944
Due September 15, 1959
REDEEMABLE AT THE OPTION OF THE UNITED STATES AT PAR AND ACCRUED INTEREST ON AND
AFTER SEPTEMBER 15, 1956
Interest payable March 15 and September 15
TREASURY DEPARTMENT,
1944
Office of the Secretary,
Department Circular No. 730
Washington, January 18, 1944
Fiscal Service
Bureau of the Public Debt
I. OFFERING OF BONDS
1. The Secretary of the Treasury, pursuent to the authority of the Second
Liberty Bond Act, as amended, invites subscriptiens, at par and accrued interest,
from the people of the United States for bonds of the United States, designated
2-1/4 percent Treasury Bonds of 1956-59. The amount of the offering is not
specifically limited.
2, These bonds will not be available for subscription, for their own account,
by commercial banks, which are defined for this purpose as banks accepting demand
deposits, except as follows: a commercial bank holding savings deposits as defined sub-
in Regulation 2 of the Board of Governors of the Federal Reserve System may
seribe to the bonds offered hereunder, to the 2-1/2 percent Treasury Bonds of
1965-70 offered simultaneously herewith under Treasury Department Circular No. 729,
and to Series F-1944 and Series G-1944 United States Savings Bonds under Treasury
Department Circular No. 654, Second Revision, but the amount of such subscriptions
shall not exceed, in the aggregate, 10 percent of the savings deposits as shown the on
the bank's books as of the date of the most recent call statement required by
supervising authorities prior to the date of subscription for such bonds, or
$200,000, whichever is less. No such bank shall hold more than $100,000 (issue
priee) of Series F and Series G Savings Bonds (Series 1944), combined.
II. DESCRIPTION OF BONDS
1, The bonds will be dated February 1, 1944, and will bear interest basis from
that date at the rate of 2-1/4 percent per annum, payable on a semiannual in each year
on and thereafter on March 15 and September 15
becomes payable. They 15,
until September the principal 15, 1944, amount will mature and September after September 15, 1959,
but be redeemed at the option of the United States on interest day or
at and accrued on
of
given
in
manner
rethe Treasury shall prescribe. In case of partial redemption the Secretary
1956, days, may in on whole 4 months' or in notice part, redemption par interest, such any as the the bonds Secretary to be of
of
deemed determined by such method as may be prescribed by interest
the Treasury. will be From the date of redemption designated in any such notice,
on the bonds called for redemption shall cease.
327
2-
2. The income derived from the bonds shall be subject to all Federal taxes,
now or herafter imposed. The bonds shall be subject to estate, inheritance, gift
or other excise taxes, whether Federal or State, but shall be exempt from all
taxation now or hereafter imposed on the principal or interest thereof by any
State, or any of the possessions of the United States, or by any local taxing
authority.
3. The bonds will be acceptable to secure deposits of public moneys, They
will not be entitled to any privilege of conversion.
4. Bearer bonds with interest coupons attached, and bonds registered as to
principal and interest, will be issued in denominations of $500, $1,000, $5,000,
$10,000, $100,000 and $1,000,000. Provision will be made for the interchange of
bonds of different denominations and of coupon and registered bonds, and for the
transfer of registered bonds, under rules and regulations prescribed by the
Secretary of the Treasury. Except as provided in Section I of this circular,
these bonds may not, before September 15, 1946, be transferred to or be held by
commercial banks, which are defined for this purpose as banks accepting demand
deposits; however, the bonds may be pledged as collateral for loans, including
loans by commercial banks, but any such bank acquiring such bonds before
September 15, 1946, because of the failure of such loans to be paid at maturity
will be required to dispose of them in the same manner as they dispose of other
assets not eligible to be owned by banks.
5. Any bonds issued hereunder which upon the death of the owner constitute
of his estate, will be redeemed at the option of the duly constituted repre-
part sentatives of the deceased owner's estate, at par and accrued interest to date
of payment, Provided:
(a) that the bonds were actually owned by the decedent
at the time of his death; and
(b) that the Secretary of the Treasury be authorized to
apply the entire proceeds of redemption to the payment
of Federal estate taxes.
Registered bonds submitted for redemption hereunder must be duly assigned to to the
"The Secretary of the Treasury for redemption,for
thecredit
proceeds
to be paid
on Federal
estate taxes
Collector of Internal Revenue at
Owing to the periodic closing of the
due from estate of
11
transfer books and the impossibility of stopping bonds payment received of interest after to the the closing regis-
tered owner during the closed period, registered be paid only at par with
of the books for payment during such closed period will interest paymentthe
interest from the date of payment to the next date after
a deduction of received during the closed period for payment at the a reopening of the
date;2 bonds will be paid at par plus accrued interest from full half-year period
books 1/ reopen half-year's interest is computed for each For a fractional part
An exact actual number of days in the half year. number of days in such
irrespective of any half year, of the computation is on the basis of the actual
half The year. transfer books are closed from February 16 to March 15, and from August 16
2/ to September 15 (both dates inclusive) in each year.
328
-
books to the date of payment. In either case checks for the full six months'
interest due on the last day of the closed period will be forwarded to the owner
in due course. All bonds submitted must be accompanied by Form PD 1782, 1/
properly completed, signed and sworn to, and by a certificate of the appointment of the personal representatives, under seal of the court, dated not more
than six months prior to the submission of the bonds, which shall show that at
the date thereof the appointment was still in force and effect. Upon payment of
the bonds appropriate memorandum receipt will be forwarded to the representatives,
which will be followed in due course by formal receipt from the Collector of
internal Revenue.
6. Except as provided in the preceding paragraphs, the bonds will be subject
to the general regulations of the Treasury Department, how or hereafter prescribed
governing United States bonds.
III. SUBSCRIPTION AND ALLOTMENT
1. Subscriptions will be received at the Federal Reserve Banks and Branches
and at the Treasury Department, Weshington. Subscribers are requested not to
trade in the securities alloticed herounder until after February 15, 1944.
Banking institutions generally may submit subscriptions for account of customers,
but only the Federal Reserve Banks and the Treasury Department are authorized to
act as official agencies Others than banking institutions will not be permitted
to enter subscriptions except for their own account. ?ubscriptions must be accompanied by payment in full for the amount of bonds applied for.
2. The Secretary of the Treasury reserves the right to reject any subscription, in whole or in part, to allot less than the amount of bonds applied for, and
to close the books as to any or all subscriptions at any time without notice; and
any action he may take in these respects shall be final. Subject to these
reservations, and to the limitations on commercial bank subscriptions prescribed
in Section I of this circular, all subscriptions will be allotted in full.
Allotment notices will be sent out promptly upon allotment.
IV. PAYMENT
1. Payment at par and accrued interest, if any, for bonds allotted hereunder must be made on or before February 1, 1944, or on later allotment. will One be
day's accrued interest is $0.062 per $1,000. Any qualified depositary and
permitted to make payment by credit for bonds allotted to it for itself existing its
customers up to any amount for which it shall be qualified in District. excess of
deposits, when so notified by the Federal Reserve Bank of its
1/ Copies of Form PD 1782 may be obtained from any Federal Reserve Bank or from
the Treasury Department, Washington, D. C.
329
-4- V. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions, to make allotments on the
basis and up to the amounts indicated by the Secretary of the Treasury to the
Federal Reserve Banks of the respective Districts, to issue allotment notices,
to receive payment for bonds allotted, to make delivery of bonds on full-paid
subscriptions allotted, and they may issue interim receipts pending delivery
of the definitive bonds.
2. The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the offering,
which will be communicated promptly to the Federal Reserve Banks.
HENRY MORGENTHAU, JR.,
Secretary of the Treasury.
330
UNITED STATES OF AMERICA
7/8 Percent Treasury Certificates of Indebtedness of Series A-1945
Dated and bearing interest from February 1, 1944
1944
Due February 1, 1945
TREASURY DEPARTMENT,
Office of the Secretary,
Department Circular No. 731
Washington, January 18, 1944.
Fiscal Service
Bureau of the Public Debt
I. OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par and accrued interest,
from the people of the United States for certificates of indebtedness of the
United States, designated 7/8 percent Treasury Certificates of Indebtedness of
Series A-1945. These certificates will not be available for subscription, for
their own account, by commercial banks, which are defined for this purpose as
banks accepting demand deposits. The amount of the offering is not specifically
limited,
II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated February 1, 1944, and will bear interest
from that date at the rate of 7/8 percent per annum, payable semiannually on
August 1, 1944, and February 1, 1945. They will mature February 1, 1945, and
will not be subject to call for redemption prior to maturity.
2. The income derived from the certificates shall be subject to all Federal
taxes, now or hereafter imposed. The certificates shall be subject to estate,
inheritance, gift or other excise taxes, whether Federal or State, but shall be
exempt from all taxation now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United States, or by any
local taxing authority.
3. The certificates will be acceptable to secure deposits of public moneys.
They will not be acceptable in payment of taxes.
4. Bearer certificates with interest coupons attached will be issued in
denominations of $1,000, 5,000, $10,000, $100,000 and $1,000,000. The certifi-
cates will not be issued in registered form.
5. The certificates will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing United States certificates.
III. SUBSCRIPTION AND ALLOTMENT
Subscriptions will be received at the Federal Reserve Banks and Branches not
and at 1. the Treasury Department, Washington. Commercial banks are securities requested allotted
to purchase and subscribers are requested not to trade in the
hereunder until after February 15, 1944. Banking institutions generally may
331
-2- submit subscriptions for account of customers, but only the Federal Reserve Banks
and the Treasury Department are authorized to act as official agencies. Others
than banking institutions will not be permitted to enter subscriptions except
for their own account. Subscriptions must be accompanied by payment in full for
the amount of certificates applied for,
2. The Secretary of the Treasury reserves the right to reject any subscrip-
tion, in whole or in part, to allot less than the amount of certificates applied
for, and to close the books as to any or all subscriptions at any time without
notice; and any action he may take in these respects shall be final, Subject to
these reservations, all subscriptions will be allotted in full. Allotment
notices will be sent out promptly upon allotment.
IV. PAYMENT
1. Payment at par and accrued interest, if any, for certificates allotted
hereunder must be made on or before February 1, 1944, or on later allotment. One
day's accrued interest is $0.024 per $1,000. Any qualified depositary will be
permitted to make payment by credit for certificates allotted to its customers
up to any amount for which it shall be qualified in excess of existing deposits,
when so notified by the Federal Reserve Bank of its District.
V. GENERAL PROVISIONS
1. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions, to make allotments on the basis and
up to the amounts indicated by the Secretary of the Treasury to the Federal
Reserve Banks of the respective Districts, to issue allotment notices, to receive
payment for certificates allotted, to make delivery of certificates on full-paid
subscriptions allotted, and they may issue interim receipts pending delivery of
the definitive certificates.
2. The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering,
which will be communicated promptly to the Federal Reserve Banks.
HENRY MORGENTHAU, JR.
Secretary of the Treasur
Janu care of by
Dues of phone callo
between him Samble and
hm Troustine
final one. 1/4/44
32
333
December 16, 1943
The Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. C.
Dear Mr. Secretary:
Attached is a letter from John J. Rowe, who is Chairman
of the War Finance Committee of twenty-two counties in Southern
Ohio and also Chairman of the War Finance Committee of Hamilton
County, which includes the City of Cincinnati.
This letter, as you will note, contains a cordial invitation for you to open the 4th War Loan in Cincinnati.
While this letter specifies a luncheon on January 18th,
they advise me that arrangements have been made to change this
to a dinner meeting, January 17th, if you coul. honor them with
your presence.
The hall can seat 1,000 people.
The names of the Executive Committee mentioned are all
top volunteers in both the area and county operations.
The State of Ohio would feel very proud if you could see
fit to accept this invitation and in my official capacity as
State Chairman, backed by the approval of our entire volunteer
staff, I urgently second this invitation.
Respectfully yours,
Phil J. Trounstine
State Chairman
Ohio War Finance Committee
Encl.
UNITED STATES TREASURY
WAR FINANCE COMMITTEE FOR OHIO
Third Area Committee
Cin'ti Gas and Electric Building
Fourth and Main Ste.
CINCINNATI, OHIO
Ohlo
MAin 1101
Roy D. Moore, Obio State Chairman
Phil J. Trousatine, Associate Cheiro
December 14,
1943
Mr. Philip J. Trounstine, Chairman
War Finance Committee for Ohio
Cleveland, Ohio
Dear Phil:
At our Executive Committee meeting this morning we
unanimously voted to request you to try and persuade the Hon.
Secretary of the Treasury, Mr. Morgenthau, to come to Cincin-
nati for our kick-off luncheon on January 18th. As Ohio was
the leading industrial state in the third drive, we feel that
it would be highly appropriate for the Secretary to honor the
State of Ohio on the opening day of the fourth drive, and I
am commissioned by our committee to urge you strongly to persuade him to come and to extend to him our very sincere in-
vitation.
Our meeting was attended by Messrs. Hutton, Diehl,
Lazar, Kaufman, Benson, Sullivan, Wallace, Banker, Davies,
Orr, and several others.
In addition, we wish to extend our heartiest invitation to you 88 Chairman of the State of Ohio, to be present
at our kick-off luncheon on January 18th. May we hear from
you promptly
Yours very tpaly
JJR:es
335
Cliff Mack
December 16, 1942
Secretary Morgenthau
The man, Harold Thomas, who has been looking after
our stoker, I understand is taking off for Hawaii, and
he was supposed to leave us the name of somebody to look
after our stoker for us when it got out of order, and
he hasn't done 80. I would appreciate it if you would
give us the name of a competent man who could come in to
look After the stoker, if and when it goes out of order.
Ever since the factory representative has been here,
the stoker has been giving entire satisfaction.
See marks mems
336
( Translation)
THE MINISTER OF FINANCE
No. 77
Caracas, December 16, 1943
Your Excellency
Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D. C.,
United States of America.
Excellency:
I have the honor to acknowledge receipt of your letter dated the
23rd of November together with the enclosed copies of the exolanation
of purposes and of the Proposal for the establishment of a "Bank of
the United Nations for the Reconstruction and Development" of the
areas devastated by the war, which you were good enough to send me
in confidence so that it might be submitted to the study of the
experts in the employ of the Ministry of which I have charge.
I am studying the documents in question with the greatest interest,
and in due course I shall inform you of my opinion and that of the
experts consulted in connection with the said project.
As I thank you for your courteous letter and for the enclosure
of the Proposal for the establishment of a "Rank of the United Nations
for Reconstruction and Development," I take advantage of the opportunity
to express to you my feelings of the highest consideration and esteem.
Respectfully,
(Signed) Rodolfo Rojas
NTN:imc:1/1/44
337
Gouvernement Du Grand-Duche de Luxenbourg
Cabinte Du Ministre D'Etat
President Du Gouvernement
MONTREAL
QUE.
December the Sixteenth
4
1
9
Sir,
I beg to acknowledge receipt of your
letter of November 22nd together with the tentative
draft of a tentative proposal for a United Nations
Bank for Reconstruction and Development.
In conjunction with my experts, I
shall study the proposal and shall send you as soon
as possible any comments or suggestions I may have
to make.
Sincerely yours,
/s/ Pierre Dupong,
Pierre Dupong
Mr. Henry Morgenthau,
Secretary of the Treasury,
WASHINGTON, 25, D.C.
3
PARAPHRASE OF TELEGRAM RECEIVED
338
FROM: AMERICAN EMBASSY, CHUNGKING.
TO:
Secretary of State, Washington.
DATED: December 16, 1943
NO.: 2428
SECRET
It is discovered upon examining the files that we possess two drafts
of the proposed reverse Lend-Lease agreement which vary considerably in
language but not in general purport: (1) the draft enclosed in the
Department's mail instruction of March 17, 1943. no. 250, and referred to
in the Department's cables of March 9 and May 19, 1943. nos. 313 and 637
respectively; and (2) the draft received from Stilwell's headquarters
on March 30 (the Department's telegram of March 9, no. 313, stated that
the draft was being communicated to Stilwell with the request that he
give a copy to the Embasay and therefore the copy which we received
from him should assumably be identical with that enclosed with Department's
mail instruction referred to above).
As yet we have not been able to ascertain whether (2) is in fact
the draft communicated to Stilwell via the War Department or whether its
variations from (1) represents suggestions for changes. In any event,
it is suggested by us that since the Foreign Office wishes a copy of the
appropriate draft to compare with that which it possesses preperatory
to signature, the difficulty can most quickly and easily be resolved by
cabling to us as soon as possible the final approved text in full,
unless that text is definitely identical with the one enclosed with the
mail instruction from the Department referred to above.
GAUSS
eh:copy
12-22-43
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
339
AMERICAN EMBASSY, CHUNGKING
TO:
Secretary of State, Washington
DATED:
December 16, 1943
NO.:
2429
SECRET
As regards the proposal that China should now sign reverse LendLease agreement after such a long delay, it is suggested that this sudden
decision by the Chinese likely has as the principal motive the making of
a gesture which would gain face and praise for China in the United States
and at the same time avoid the possibility of Congressional and other
criticism should the public become aware of the circumstances of exploitation of our Army in China Minister of Finances services and facilities.
The gesture would cost China nothing unless steps are taken to implement
the proposed arrangement. Reports to Treasury by Adler and to the
Department by the Embassy regarding Minister of Finance's attitude do not
encourage us to believe that the agreement will be satisfactorily
implemented if signed.
It might be a serious tactical error, on the other hand, to decline
to enter into an agreement which we, ourselves, proposed and give the
Chinese the opportunity to say that they had offered to share the heavy
burden of our military operations in China and had been turned down
by us.
Therefore, it is proposed that we orally inform the Chinese that we
should be very glad to enter into the agreement but that it is suggested
by us that the actual signing be timed to coincide with conclusion of
appropriate detailed arrangements to implement it. A formal approach
already recommended setting forth in precise terms the nature and
extent of financial services desired from China might be used to supplement this oral statement.
Should the Department, notwithstanding the foregoing. consider it
preferable to sign the agreement forthwith as accomplishing at least a
step forward, it is suggested that ve take steps to offset possible Chinese
effort to out maneuver us by making clear in an official American
announcement that the agreement is confined to broad aspects of intentions it
and principals which only lay the ground work for implementation which
is expected the Chinese Government will undertake at once, especially
in providing arrangements and facilities and services for our armed forces
which can be supplied by China.
eh:copy 12-22-43
GAUSS
340
HOT TO By RE-TRANSMITTED
U.S. SECRET
COPY NO
2
BRITISH MOST SECRET
OPTEL No. 410
Information received up to 10 A.M. 16th December, 1943.
1. MILITARY
Italy Eighth Army On 13th. soua progress vas made and 3th Indian
Division captured CALDARI (three and & half miles M.S.E. VITO)
nearly 200 prisoners taken. On 14th there was a marked decrease in intensity of
enemy counter-attacks and our toops gained 8 footing astride the lateral road
ORTONA-ORSOGNA. Bad weather and low visibility restricted air support.
Russia Russians have nor cleared right bank of DNIEPER between CHLAKASI
and KBENEMCHUG. they are approaching Emilway Junction of SMYELL
Balkans
Germans have been advancing by four converging columns into
EAST BOSNIA but Partisans have had sons success against these
columns. 30 miles inland from SPLIT ther has been fighting with varying success
New Guines 12th. Enomy strongpoint at RATAYRACK (one milo N.E. WAREO)
destroyed. rrland Troops continue to advance "orthuards
from SOWI RIVER supported by a (ev tanks.
2. AIR OPERATIONS
Western Front 15th. Weather hindered operations. 7 Hurricanes attacked
attacked BERCK Airfield.
military objectives in FRANCE and 7 Typhoons Bombers
Italy 13th. 468 Sorties carried out over and Eighth Armies
Fronts.
14th. 60 Invaders (A.36) attacked CIVITAVECCHIA and communications
dropping 27 tons of bombs. 216 Marhawks (P.40) attacked bridges near GAETA
dropping 78 tons. 100 Spitfires on Patrol Weatern Battle Area encounter or about
80 enemy aircrift. Enemy casualties 3:1:4 for loss of three Spitfires.
Greece 14th. Fortresses (B.17) end Liberatores (B.24) dropped 12 tons
on ATHENS/ALEUSIS Airfield: 224 tons on ATHENS/RALEMARI Airfield:
105 tons on ATHENS/TATOI Airfield and 31 tons on PIRASUS Harbor. anomy combat
casualties 11:1:0, one Fortress missing.
61 2 Md 41 030 DEL
Add VEGI 30
301330