Full text of Diaries of Henry Morgenthau, Jr. : Volume 713 : Part 2

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182

London, England, March 23, 1944
No. 14,623
BY AIR POUCH

Economic Warfare (Blockade) Series: No. 839
Subject: Meeting held at M.E.W. on March 16,
1944 to discuss the possible reception
in Switzerland of children from Germanoccupied countries.
The Honorable

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

I have the honor to refer to the Embassy's telegram
No. 327 of January 13 and to transmit six copies of the
minutes of a meeting held at the Ministry of Economic Warfare on March 16 to discuss with the Swiss the possibility
of the reception in Switzerland of children from Germanoccuried countries.

Prior to the autumn of 1942, about 23,000 children
were received in Switzerland from various parts of Europe;

the children usually remaining in Switzerland for three
months and then returning to their homes. According to
the Swiss, transportation difficulties were principally responsible for the termination of this scheme in 1942 and
remain the chief obstacle to a renewal of this scheme or
the institution of a similar one.

183

-2Although the Swiss think that the German Government

is aware of the Swiss desire to receive additional children,

no official approach has yet been made to the German Government. Then asked whether their Government would now be
prepared to approach the German Government officially on

this matter, Professor Keller and Dr. Rezzonico promised to
put the suggestion to Bern.
Respectfully yours,
For the Ambassador:

Ware Adams

Second Secretary of Embassy
Economic Warfare Division

Enclosure:

6 mimeo graphed copies of above-mentioned minute.

Suggested distribution by the Department:
Foreign Economic Administration, Washington.

MC:JH

(Despatch sent in original and hectograph to Department)

184

Record of meeting held at
the Ministry of Economic Warfare on March 16th. 1944.
Present:-

Mr. D. M. Foot (in the Chair)
Mr. Bliss

M.E.W.

Mr. Camps

T. Seebohn

Mr. I. L. Henderson, Refugee Department, F. O.
Mr. J. Bowering, Foreign Office.
Intergovernmental Committee on Refugees.

Sir H. Emerson
Dr. Kuhlmann

Mr. Riefler

E. W. Division American Embassy.

Mr. Ware Adams
Miss Camp

Professor Keller
Swiss Legation.

Dr. Rezzonico
11.

J. de Rhan

}

o0o

Mr. Foot, in explaining that the purpose of the meeting was to
discuss the possibility of the reception in Switzerland of further children
from German-occupied countries, said that the attitude of the British
and United States Governments was set out in the letter he had sent
to M. Thurnheer on 16th September last. He wanted to say that, realizing what a very heavy burden Switzerland is already carrying in the

matter of refugees, there being a total of at least 69,000 already in
Switzerland, H.M.G. greatly appreciated the attitude of the Swiss

Government in being ready to consider an even further burden. When the
matter was recently discussed in Berne by H.M. Minister and the Swiss
Government, we had been given a very sympathetic reply.

There were three things that ought to be considered - firstly

how far the Swiss Government considered that it could contemplate the

reception of further children, secondly what additional imports would
be needed through the blockade into Switzerland either now or at a

later stage in order to maintain such children, and thirdly what approach, or what form of approach, it might be necessary to make to

the German Government, and possibly to the acting governments in OCcupied countries.

185

-2Professor Keller said that the Swiss were very glad to do what
they had done. About 23,000 children had been received, from different
parts of Europe, and the Swiss had fed and clothed them from their own
resources. The Swiss Government were ready to continue the work on a
larger scale, and at the moment saw no necessity to ask for addition=

al imports. It might be that if, say, 50,000 additional children were
admitted, they would wish to approach us at a later stage. In the
meantime he thought it a good and practical idea to continue the discussions as set out by Mr. Foot.

Dr. Rezzonico, after explaining the organization of the work,
said that they could take far more children if necessary. They had had
more applications from families in Switzerland to receive children
than could be accepted. Families were ready to feed and clothe them

from their own resources, and the organizations had made house-to-house

collections for coupons, which would be available if more children
came. (Some of the children arrived very badly equipped in the matter
of clothing). But the main difficulty was transport, Since the autumn
1942 they had not been able to transport the children, despite approaches by the Swiss Kinderhiefe Organization to organizations in other
countries, nor could they see any prospect of doing so.
To get matters moving, it might be necessary to approach the
government of Germany and the local authorities in occupied countries;
this had not yet been done officially, and he would like our views on
how it should be done.

In the discussion which ensued the Swiss said that they thought
the German Government were probably aware of the position unofficially
through their own Red Cross.

On being asked by Mr. Foot whether their government would be
prepared to make an official approach to the German Government, Professor Keller and Dr. Rezzonico promised to put the suggestion to them.

Dr. Rezzonico explained that another difficulty which had been
encountered was the reluctance of some of the families to allow the
children to go, because of the risk of accidents, on the journey, bomb-

in, etc. He further said that many of the children had to be removed
from their hosts' homes because of tuberculosis and other disease.

The question of selection of the children then arose, Professor
Keller said that the only qualification they had was that of necessity.
The children were judged by ill-health or poor surroundings. Had we any
other criteria? Mr. Foot said that what we wanted to avoid was any of

186

3-

the juisling Governments having a voice in the selection. Mr. Riefler
said that he thought it would be easy for the Quisling Governments to
take sure that the children of anti-Quislings were not selected. Professor II ller said that this was a question of the independence of the
local Red Cross and that he would seek elucidation of this point.
Professor Keller then went on to say that Switzerland would like
to e stend the scheme to all children suffering from the war. Although
they did not think that the Germans would wish to send their children,
they wished to make the offer to them. Of course in the case of children
From Axis countries they would not ask for help from us. Mr. Foot said
that this WAS quite reasonable, but that if Jewish children from Axis
countries were evacuated to Switzerland, we should be willing to help in
such cases.

Mr. Riefler asked if the selectors would have access to any part
of the territories concerned, and if, the governments of the territories
would have to be consulted first. Professor Keller said that this point
would have to be cleared up.

He then went on to say that H.M.G. and U.S.C. had offered Switzer-

land financial help, but that they would not need this at present, as

they had a large reserve from collections made in Switzerland. They would
go on with the money at their disposal, and if necessary ask us for supplementary imports.

Mr. Bliss then raised the point of scarce commodities. Much as we
appreciated the offer of the Swiss not to approach us unless it was absolutely necessary, allocations had to be made a long time ahead, and
is the scheme went through it would be as well if the Swiss Government
rade applications at once, even if the goods were not wanted at once.
It would be unfortunate if, because they delayed, we were compelled to
refuse. Professor Keller said that the greatest need was for wool and
cotton, applications for which were already under consideration at M.E.W.
If they could get quotas for these goods, the children and the adult
refurees could be supplied from within this quota. Mr. Bliss thought
that the Swiss should particularly bear in mind the question of boots,
leather and hides, which they promised to do.
T. Foot then reverted to the question of numbers, and asked 15
the figure of 50,000 was the one Professor Feller had in mind. Dr.
tezzonica and Professor Keller said that this figure could be considered
later. They had had thousands of applications from families in Switzerland for children - far more than could be satisfied. They were ready

187

-4- to open their doors absolutely wide, and as far as possible to do it
out of their own means. with reference to the transport problem, of

course they would not have to consider 50,000 children at a time, but
successive batches, as when they had done the work before children had
been kept for 3 or 4 months and then sent back. Sir H. Emerson asked
what was likely to be the maximum number of children in Switzerland, out

of 50,000 at 8 time, but Dr. Rezzonico said that it was difficult to
T. Foot said that it might very well happen that in the conditions
say.
that might arise in Europe this year it would be impossible to send the
children back, and what was to happen then. Professor Keller said that
this eventuality would present no difficulty. Children had been kept
for longer periods before. The usual age of the children was from 6 to
16, but they had had babies in arms.
Mr. Camps said that presumably the Swiss would not ask the Germans
to approve & large-scale cut-and-dried scheme, but merely ask them to

annove batches of children at the time. Professor Keller said they
would put it to the Germans that they were ready to accept the children

and continue the work. If necessary he would ask his Government if they
would be prepared to make a direct approach to the Germans. They would
leave the question of a figure to Berne. They would also submit to
Terna the possibility of discussing alternative programmes - either a
definite scheme covering so many children, or groups of children to
be got in as possible.

The discussion then centered around which countries should be se-

linted in view of the language difficulty. Mr. Camps said that although
the Cersans had evinced no desire to send their children, their attitude
nicht be expected to undergo a change in the near future. Dr. Rezzonico
said that this had not happened so far, but that it would help the general schese to offer to take German children.
in Foot asked whether any other form of housing had been considered - such as camps, etc. Professor Keiler said that on previous
occasions they had sent some children to camps in the Alps. They had
found that poor children who were received into wealthy homes went back
spoiled and discontented. Mrs. Sulzer and a group of her friends had
mointained some children in homes in the Alps, and the children were
rich happier there, under the care of a nurse.
Sir Herbert Emerson asked if children would be considered who had
loat their parents, or whose parents had been deported or sent away to
do forced labour. Dr. Rezzonico said that they had previously had many

188

-.5 children who knew nothing of the whereabouts of their families. Mr. Bliss
suggested that the right definition was "children not under the care of
their parents" which covered orphans and refugees.

Mr. Foot asked if it would be possible to indicate to the selectors that they should look our particularly for Jewish children, and Mr.
Riefler said that if very few Jewish children arrived, it would mean

that the selectors were not impartial, and should be warned. Dr. Kulmann
explained that many of the Jewish children in the west are in hiding,
and have faked gentile ration cards and documents. Any interference might
upset the existing state of things.

After further discussion it was decided that "children whose parare not in a position to give them proper care" should be recommended especially to the selectors.

ents

189

OFFICE OF THE PERSONAL REPRESENTATIVE
OF THE PRESIDENT OF THE UNITED STATES

New Delhi, India
March 23, 1944

No. 394

Subject: Standing Finance Committee of the Indian
Legislative Assembly Approves Payment of
Indian Quota for Inter-Governmental Relief
Committee.

The Honorable

The Secretary of State,
Washington.
Sir:

I have the honor to report that on March 18, 1944, the
Standing Finance Committee of the Indian Legislative Assembly,
under the chirmanship of the Finance Member of the Viceroy's
Executive Council (Sir Jeremy RAISMAN), approved a proposal

to pay India's contribution towards the administrative

expenses of the Inter-Governmental Relief Committee which

was set up in 1939. The invitation to India to become a

Member-Government has been accepted subject to approval by

the Legislative Assembly. The approval by the Standing
Finance Committee is the first step towards that end. India's
share of the administrative expenses of the Committee, it is
stated, has been estimated at L2,700 per annum but its quota
for the first sixteen months (September 1943 to December 1944)
will be only L1,176.

An unofficial note on the subject issued by the
Principal Information Officer of the Government of India
comments on India's connection with the Committee as follows:
"Under present arrangements, the work of

the organisation in the case of India affects

only refugees from the Balkans, Russia and
Turkey. Until the scope of the Committee's
operation is extended to areas from which there
has been a substantial move of India's nationals,
it is not proposed that India should take any
further active interest in the Committee.
"The

-2-

190

"The Committee is required to work in
collaboration with the U.N.R.R.A., whose functions

are wider than those of the former, as they relate
to post-war international economic reconstruction
as opposed to assistance to refugees which is the
function of the Committee."

In this connection reference is made to the Department's
circular airgram of January 26, 7 p.m. with respect to the
executive order of the President of January 22, 1944, regarding
the establishment of a War Refugee Board to take all measures
possible to rescue Jewish and other persecuted minorities
who are in imminent danger of death at the hands of the
enemy. On February 21, 1944, the Mission made inquiry as
to the action and intentions of the Government of India with
respect to aid to such refugees. A reply has not been
received and further inquiry is being made. From the
statement quoted above, however, it appears that the Govern-

ment of India intends to limit its assistance in this respect
to the payment of India's share of the administrative
expenses of the Inter-Governmental Relief Committee.

Respectfully yours,

George R. Merrell
Secretary in Charge
848

STM/sa

Copies to: American Consul General, Calcutta
American Consul, Bombay

(To Department in original and hectograph)
CC: Miss Chauncey (For the Sec'y), Abrahamson, Akzin, Bernstein, Cohn,
DuBois, Friedman, Gaston, Hodel, Laughlin, Lesser, Luxford, Mann,
Mannon, Marks, McCormack, Murphy, Paul, Pehle, Pollak, Rains, Sargoy,

Smith, Standish, Stewart, Weinstein, H. D. White, Files

191

WORLD JEWISH CONGRESS
CONGRES JUIF MONDIAL

CONGRESO JUDIO MUNDIAL

330 WEST 42nd STREET
NEW YORK CITY

March 23, 1944
Mr. John Pehle
War Refugee Board

Main Treasury Building
Washington, D. C.

Dear Mr. Pehlet

I was very glad of the opportunity to have a talk
with you in your capacity as Director of the War Refugee Board.

Your appointment was a source of great encouragement to all of
us who know you and are impressed with your deep interest in the

problem and your determination to achieve results. I was
especially gratified to note your sympathetic reaction and
understanding of all the projects I discussed with you and your
colleagues yesterday.

I am enclosing the three memoranda for which you

asked. The report of the Jewish National Committee from Poland,
to which one of them refers, will be sent to you from our New

York office, as I have no copy of it here.

I will appreciate it if you will let me know as

soon as possible the decisions on the Polish situation and the

Jews in Frence.

With best wishes and kind regards.
Sincerely yours,
/S/Nahum Goldmann
Nahum Goldmann

192
Washington, D. C.

March 23, 1944
MEMORANDUM: War Refugee Board

During my stay in London, I had occasion to meet with thevarious govern

with members of the British Foreign office, with Sir Herbert
his staff, a great

Emerson mente-inwexile, and number of British members of Parliament, all journalists, publicists, and leaders of public opinion. They were deeply interested
in the news of the establishment of the War Refugee Board, Some attempt was made,

unofficially, in Briti sh circles to whittle down the impression made by this

news, by characterizing it as windowedressing and a political manoever in an
election year. I did my best, and, I believe, with some success, to convince
all those with whom I talked and the private groups which I addressed, that the
War Refugee Board meant real business and was set up because of the sincere
desire of the American Government to do something effective to save the Jews of
Europe. On the whole, though, the creation of the Board made a very deep impression.

I suggested to various goverments-in-exil that they take similar action

and establish War Refugee Boards of their own on which should be appointed high

officials assigned to deal exclusively with the problem of saving European Jose.
The Polish Government decided to set up such a Committee, which will soon be

announced. The French Military Association agreed to appoint a high official in
Algiers to deal with the question of the rescue of Jews and has instructed M. Boris,
its representative in London to lend his support. A similar assurance was given
to me by President Benes and Mr. Masaryk, whose department is in charge of such
activities. The representatives of the Dutch, Belgian and Norwegian governments
had several talks with representatives of the World Jewish Congress in London
concerning their participation in such work and are prepared to allocate consider.
able amounts of money for saving deported or hidden Dutch, Belgian and Norwegian
Jews.

In general, I am convinced that the creation of the War Refugee Board has
helped enormously to make all these governments conscious of their responsibilities

in this matter. I came back from London with the definite impression that all
these governments, not excluding the British, will sooner or later follow the
policy of the American Government, which today, is the farthest ahead in its under
standing and methods. But the initiative will have to continue to come from

Washington. As regards Great Britian, public opinion was also greatly impressed
by the creation of the War Refugee Board, as indicated by numerous articles in the
British press. Wide sections of Parliament, especially the Committee to save
the victims of the Nazi terror, of which Miss Eleanor Rathbone, M.P., is the
leading member, were ready to renew their public campaign in order to get the
British Government to adopt policies similar to those of the War Refugee Board.
Nahum Goldmann

/s/N.G.

193
Washington, D. c.
March 23, 1944

MEMORANDUM: On Report of Jewish National Committee-Poland

As is shown in the report of the Jewish National Committee (to follow),
there are only 200,000, or less, Jews left in Poland, out of a population of more
than three million. According to the report, the only way of saving the remnant
still alive is to put funds at the disposal of the Jewish National Committee in
Poland for releasing the survivors from concentration camps and arranging for
them to live as Poles, or to organize their immigration into Hungary, if that
is still possible after the Nazi occupation. For these purposes considerable
amounts of money are necessary, in dollars, as no one in Europe will accept
bounds.

The Polish Government has al ready sent three million sloty to the Jewish
National Committee and would be prepared to send more, if they had dollars.
The Budget of the Polish Government isprovided by the British Government in
pounds. The Polish Prine Minister and the Minister of the Interior, with whom
I conferred, told me that there was an item of five million pounds in their
budget for use in Poland, which cannot be spent, because it is unders to send

pounds into Poland. It is, therefore, necessary to find ways of putting considerable amounts in dollars at the disposal of the Polish Government, in the form
of a loan, a donation, or as an exchange for pounds, which can be used in London.
The Polish Embassy in Washington is, naturally. ready to discuss the details of
such a transaction with the American Government.

Finally, may I point out that an immediate deci sion isnecessary. The
money must be taken to Poland by plane. As the nights are growing shorter with
the approach of summer. it is increasingly difficult to send planes there. I
urge, therefore, that this matter be taken up as soon as possible and that,
if necessary, the Polish Embasay be called in to discuss details.
Nahum Goldmann

/s/ N.G.

194
Washington, D. C.
March 23, 1944
MEMORANDUM: JEWS IN FRANCE Reports of Underground Movement

The reports I received in London from French Jews active in the French
underground movement, who came to London to meet me, indicate that the number

us

of Jews in France, and, perhaps in Holland and Belgium, is larger than some of
had thought. Some estimate the number of Jews in France as 300,000, others
at 200.000. Most of them are in hiding, with false passports, as French Catholics.
This is true of many Jewish children also, who are living with French peasants.

In addition, there are tens of thousands living in their old residences, as Jews,
and constantly menaced with deportation. It is recognized that the marer the

invesion, the more disposed the Germane will be to deport these French Jews,
and it is known that the Germans have asked the Vichy Government for the names

of all French Jews, usually a prelude to deportation.

The only way to save those adults and children still registered is to
facilitate their escape into Switzerland or Spainl Switzerland will admit child-

ren and old people, but has some restrictions as regards the young and adult
groups. Some action should be taken with respect to this, with the Swiss Govern-

ment. Spain will admit all age groups. The difficulty of organizing the escape

into Spain or Switzerland, is that in many cases professional smugglers must
be employed. They charge large sums of money, about $800.00 per capita, for such
escapes. The Geneva office of the World Jewish Congress is doing a great deal
to facilitate the escape of children from Frnace and has recently brought 500
children into Switgerland.
in

During my discussions with French Jewish underground workers, active both
France and in London, a scheme was developed for organizing a small clandestine

group in France, to organize the escape of those in danger. I discussed this plan
with the French Commisar of the Interior, M. D'Astier, who is also in charge
of the underground work in France, and was in London on his way from Algiers.
He,in turn, discussed the matter with the French official in London in charge
of underground activities in France-A French Jew, M. Boris. othnwemenin favor
of the scheme and gave instructi one to the French underground movement to assist
such An organization when it is established. The French underground movement
cannot, itself, undertake to do this, because it has not the necessary manpower.
The World Jewish Congress has a number of young men at its disposal, who
are experienced underground workers, both in London and Switzerland, ready and

able to go to France to organize this work. Their efficiency would be greatly
increased if one of the government which has been doing underground work in
France would be ready to lend technical assistance (transportation facilities,
radio equipment, etc.). In my opinion this would be the most effective, if not

the only way, to save hundreds of thousands of Jews escape from France. It
would be enormously helpful if the War Refugee Board were ready to support such

a scheme by giving American authoritiesin charge of similar activities, instructions
to lend such technical assistance as is necessary.

195

-2This activity of the World Jewish Congress will be directed from
and Limbon. The representative in charge in Lisbon is Isaac Weisman,
London Avenida Liberdada 179, who is known to the American legation in Lisbon. M.

Baron, who is in charge in London and is the head of the Committee of French

Jews, is experienced in this work. It is my suggestion that the War Refugee a

Board, if prepared to support such a scheme, instruct someone in London and
Lisbon to contact Mr. Weieman and M. Baron-the latter can be reached 55 New
Cavendish Street, London, and discuss details with them.

I would be grateful for an early reply on this question, as the organization of the work depende to a large ettent on whether technical assistance from
the American Government would be forthcoming.
Nahum Goldmann

/S/N.G.

196
WORLD JEWISH CONGRESS

CONGRES JUIF MONDIAL CONGRESO JUDIO MUNDIAL

330 West 42nd Street
New York 18, N.Y.
March 23, 1944
Mr. John W. Pehle
War Refugee Board

Main Treasury Building
Washington, D. C.
Dear Mr. Pehle:

Enclosed you will find various memoranda from the Jewish
National Committee in Poland. In the meantime, I am sure
that you have received the three short memorandums which I
dictated in Washington and which I asked my secretary to

deliver to you today. I will be in Washington at the end

of next week and hope to see you or one of your collaborators.

I should like to tell you that I had an opportunity to see
Mr. McCloy at the War Department who raised various questions
concerning the rescue of European Jews with me. I shall

report to you regarding this next week, When I told him
of our scheme in France to organize the escape of Jews he
felt that the technical help which we may need from the

military authorities could be obtained. I want you to
know this.

With kindest regards, I am
Very sincerely yours,
/8/ Nahum Goldmenn
Dr. Nahum Goldmann

NG:BL

197

STRICTLY CONFIDENTIAL
To DR. SCHWARZBART, London
Dear Doctor:

no write to you with the blood in which tens of thousands of our Jewish
martyrs are perishing. We are now living through the Epilogue of our terrible
tragedy. the Nazi barbarians, in the face of their defeat, are murdering off the
pitiful remeants of the Jewish population.

They began with the Lublin District which lies in the path of the approaching
front. In this district the Germans had concentrated a number of camps where
40,000 Jess barely vegetated - most of them from Warsaw and the District of Lublin.
The largest of these camps are: Trawniki (10,000), Ponistow (15,000). We were in
constant touch with all those camps; we helped them as much as we could; we furrished the with money and arms.

OF Wednesday, November 3, 1943 at 6 A.M. all the men in Trawniki were called

out for the alleged purpose of digging air-shelter trenches. After two hours they
vers encircled with machine-guns and all of them, without exception, were shot down.
In the meantime 50 trucks drove into camp. All the remaining women and children
here loaded on them and taken to an extermination point where they were forced to
strip of their clothing and were then machine-gunned in the same fashion as the
men. After this massacre, 3,000 Italian Jews were brought to this camp and the
same fate sunits them.

A similar rassacre took place in Lublin on Friday. Several thousand Jews were
murdered there. Almost simultaneously a bloody "selection" took place in the camp
at Poriatos. The greater majority of the camp inhabitants, almost all women and
children, were sent to their deaths.
During the first days of November, the Germans began liquidating the Jewish

carre in the Second District, which is near the front, in Eastern Galicia. In one

camp in show, on Janowska Street, where there were approximately 7,000 Jews, the
Germene "selected" 2,000 whom they murdered in bestial fashion at the executionplace, at Piaski Place.

is have not the slightest doubt that within the next days and weeks all the
remaining Jewish centers, camps and few existing ghettos will be effaced.
Le are now making desperate efforts to rescue from the camp the most important
individuals of our social and cultural elements, this is, however, a monumental
undertaking, involving effort and money. We are convinced that within a very short
time there will remain only those few tens of thousands of Jews of the (original
3,500,000 Jews of Foland) who are hiding outside of the ghettos and camps, either
in the Aryan quarters or in the forests where they live literally like cave-men.
wist month we estimated that there were only between 250-300,000 Jews left in Pol-

and. It is our opinion that in a few weeks there will only remain about 50,000.
During their dying moments, the remnants of Jews in Poland cried out to the world,
begging for help.

2-

198

Ze know that you are with us heart and soul and that you experience
martyrden which is unexampled in history. We also know that you are deeply But our

let those circles who could have helped us at least know what we think powerless. of them!

The blood of 3,000,000 Polish Jews will take revenge not only against the Nazi
surderers, but against those indifferent elements which have contented themselves
herely with ords but have done nothing to rescue from the hands of the beasts
people doomed to extermination. This we, the last of the Mohicans of the Jewish a
population, can never forget or forgive.

May this - possibly the final cry from the depths - reach the ears of the world!
e want all Jews, and the world at large, to know that our youth nobly defended
the life and the honor of its people, Since the heroic epic of the Warsaw Ghetto
have in recent months, written the grand and glorious chapter of the Jews of
Malystok. This took place at the end of August. On the 17th of August there
began the liquidation of the only large ghetto in the East of Poland in Bialystok
where there vore approximately 40,000 Jews. During the first three days of this
Faction, 7 transports of victims were taken to the death-camp at Treblinka. In
addition, 9 passenger train, filled with children, left Bialystok. There were two
Jewish nurses in each car. It is the general conviction that, before going to their
deaths, these children were to furnish their blood for wounded German soldiers. On
the fourth day of the action, the fight began. Bloody combats took place in a
-

number of streets. Just as in Warsaw, the Germans entered the ghetto in armored
trucks and equipped with field artillery. They brought along about 1,000 gendarmes
and SS-men and a number of Ukrainian detachments.

The eews retaliated mostly with grenades and incendiary bombs; they also had
few machine-guns. They fought with frantic determination which reused the
admiration of the population of the city and the district. Several hundred Germans
and Ukrainians fell or were wounded during the battle.
-

In order to crush the uprising the Germans did what they had done in Warsaw

they Let the ghetto afire. The bitter fight lasted 8 days. But the Jewish re-

the not weaken and lasted for another month, into the middle of September.

The heroic battle in Pialystok will share its place in history with the resistance

of caremo.

During the last few months, the Jews have engaged in two other uprisings which
of great symbolic importance. They destroyed two extermination-centers - the
death-camps at Treblinka (near Malkin) and Sobibor (in the District of Chelm-Lublin).
At both camps, the remnants of the Jewish victims who were awaiting death organized
in fighting-"fives" and at a pre-arranged moment, launched their attack; throwing
themselves fiercely upon the German and Ukrainian guards, they disarmed and killed
the majority of them, burned down the gas-chambers and the "living-crematoria" and
after having accomplished this, escaped to the neighboring forests.

kore

News of these heroic deeds flashed over the length and breadth of the country.
But the Jews resisted not only in Warsaw, Bialystok, Treblinka and Sobibor;
similar organized uprisings took place in Czestochowa, Bendzin, Wilno, Tranow, and
in a number of smaller localities.

The final liquidation of the ghetto of Tarnow took place on the 1st, 2nd and
3rd of September, 1943. One hundred and fifty Jews at a time were loaded into
freight-cars, the floors of which were covered with a layer of carbite and dry lime.

199

cart were then sealed, doused with water and sent to destruction. All the
the children of the ghetto were concentrated in one building. They were told that they
tere to be teken away to a nursery. The building was then hermetically sealed and

blasted into the air. hile the liquidation was going on, the Jews began an active

resistance. The Germans used grenades and smashed the resistance.

In the battles in the abovementioned cities, men of all ideological leanings
fought together as comrades - Chalutz youth, Shomrim youth, Poale-Zionists and

"Sundists". They were bound by ties of death, not of life; they fought side by

side for the honor and the glory of the Jewish people. Through the Jewish Fighting
Organization, we exerted ourselves in the organization and strengthening of the
fight.

Aside from this Jewish fighting Organization we have also concentrated our
efforts on rom ering assistance to the Jews who are still in camps or are hiding
in Aryan quarters. The are trying to rescue important individuals from the camps; we
have succeeded in saving a number of social and cultural leaders.

Le still caintain contact with the Jews in the camps, through our emissaries
with whom we constantly send financial aid, documents, etc. We distribute greater
sund to Jews who are in hiding in Aryan quarters, provide them with documents and

find then shelter (the most difficult task of all). We have managed to save a
proportionately large number of our social and cultural leaders.

The defense and relief work we conduct under the most difficult conditions of
double constiracy - always in terror of German retaliation which is directed at
Poles 15 vell; daily there are "seizures" in the streets of Warsaw where the pavements frequently run with the blood of Folish hostages.
Be are only a small group of workers left alive; we have made it our duty,
despite the incredible obstacles, to serve the remnants of our exhausted people.

De are determined to fulfill this duty - regardless of hardship - until the last
drop of our blood.

Be have been conducting our activities as the Jewish National Committee, for
almost a year. The following parties and organizations are included in the
Cormittee: general Zionists, Poale-Zion night, Poale-Zion Left, Hechalutz, Hashomer

Ramair, Cror, (Right Poale-Zion Youth), Akibah (General Zionist Youth) and
Cordonis (Hitchduth Youth Organization). The Jewish National Committee is headed
by 5 Praesidium of three persons: Dr. A. Berman (Borowski), Icchak Cukerman and

D. Kaftor (Kaftor: Hebrew, button; this is undoubtedly Guzhik, the representative
the S.D.C. in Poland; "Guzhik" is Polish for button - M.P.) Among our closest
of

collaborators are: Dr. Emanuel Ringelblum, Cywia Lubetkin, Advokat Gottesman (Krakow)
Josef Sack, Lejzor Lewin, Szlema Grajek, Szymon Rathauser, Pola Elster, Herez
Berlinski, Basia Temkin-Berman, Unfortunately, due to their non-Aryan appearance,
the majority of those mentioned dare not venture out of their homes and therefore
the bulk of the complicated and hazardous work falls to just a few. The atmosphere

in Committee is one of

cooperation. with the "Bund" with

obtaining the The Jewish J.N.C. National is in contact brotherly which and it harmonious coordinates

its work. The Jewish National Committee and the Bund established a Jewish Coordirating Committee. Neither the Jewish National Committee nor the Jewish Coordina-

tirg Committee is character. The purpose of the
all activities and is the chief
dinate resistance political and relief in representational J.C.C. is to coor- body work
of the living Jews in Poland. The main part of the practical

Committee us Jewish National -

National in the work

Jewish of this remnants Committee devolves of actively the upon participates (The Committee of the Relief M.P.). Council The

for the Jows, under the auspices of the Delegate of the Polish Government.

-4-

200

The Secretary of the Relief Council is the Jewish National Committee represen-

tative in the Council.

Aside from these contacts, the Jewish National Council is in direct contact
with the Department of National Minorities (also under the asupices of the Delegate

of ti:eGovernment) as well as the Department for Jewish Affairs established by
the Commandant of the Military Forces in the country. A very warm and close re
lationship exists between the Jewish National Council and the representative of the
Fighting Underground Poland.

Aside from its defense and relief work, the Jewish National Council is also
engages in amassing the most comprehensive material and documents of this unex-

ampled martyrology of our people. The historian Dr. Ringelblum, Hersz Wasser, the
writer Rachela Auerbach and others conduct this branch of our work.

Until very recently, our work was conducted under the greatest financial hardships. Up to June, 1943 we had no funds to dispose of and the scope of our activities was, for that reason, greatly restricted.
In the course of the whole year, there trickled in two rather small sume of
money for the organizations represented in the Jewish National Council. This
money WAS transmitted throught the intermediation of the "Bund". $3,000 more came

in from the Right Poale-Zion. The second money transmission was $1500 which had
been sent to the Poele-Zion ($1000 Left Poale Zion, $500 Right Poale-Zion).

In June, we received our first comparatively large sum - $10,000 sent from
Abroad for the general Zionists and the Right Poale-Zion. Later, in July, August
and September, we received three different installments of $10,000 on account of the

the the relief sume

10,000 pounds sent to us by you. Thanks to these funds we were able to extend our

activities in all but to the tremendous need and the huge sume
required to organize fields, resistance compared and tb furnish necessary. these
were still far too inadequate. Only recently, November 1943, we have begun to

receive larger installments of the sums sent by you. Altogether, in the very near
future. ve are supposed to receive: the last installment, $10,000 (of the sum of

10.000 pounds) and $20,000 (5,000 pounds) and $36,000 (9000 pounds) - all of which
were only very recently received from you by the Delegate. The sum total, $66,000.
Aside from the abovementioned, we have been informed that a new transmission
of 15,000 pounds has been received from you. We thank you in the names of all our
organizations. This money will enable us to expand our relief And resistance
preparations.

Aloe, for many of our brothers, this aid came too latel But still, we are

hopeful that with the money we now have at our disposal, we may still be able to
save is number of important people and come to the aid of thousands of unfortunate

Jews in their tragic and difficult hour. More help from you is urgently and
immediately needed

You must remember that the rescue of one individual from camp involves a sum

of 50.000 zlotys and the installation of one person in an Aryan quarter requires
the expenditure of 5-10,000 zlotys.

Your cables and letters furnish us with a few moments of joy in our hour of
tragedy and pain. We feel that we are not alone. Welhave received your letters
of July 21st (from Dr. Schwarzbart to Warsaw and Krakow; letter from Berl (Berl

Locker) (letter from Committee for Rescue of Jews in Occupied Europe) and read

-5-

201

them with great joy. We did not receive the letters from Tabenkin and Jaari
(leaders of the Histadruth in Palestine - M.P).
We received your cables of September 27th and October 4th, 1943. Let us know
About the concrete aims and possibilities of your action in Stockholm, to rescue
children. Is this a question of exchange? There are only a small number of Jewish

children left alive. Rescue them from certain death

This week we heard alarming news about the Jews in the camp for foreigners in
Berges, near Hanover. About 4,000 Polish Jews were in that camp, among them well-

known personalities, like: the writer J. Perle, the leader Antoni Buksbaum (leader
of the Left Poale-Zion -M.P) and a number of others. The camp was supposed to-

be under the wing of the International Red Cross. It is said to have been liquidated - the same as the camps in the Lublin District. You must immediately undertake AD intervention with the Red Cross and the Swiss Legation in Berlini In

that CARD there are also-citizens of South American countries. We have also been
hearing disturbing rumors about the camp in Vittel (Alsace). You must keep a
wetch out for these two camps. Inform us immediately of the situation.

We inclose in this letter a number of letters to various organizations, an
answer to your questionnaire, a report about the activities of the Jewish Fighting
Organization, C list of those who fell during the defense of the Warsaw Ghetto and
a short financial report.
Please transmit our gratitude and greetings to the Jewish Agency, the Executive (of the Zionish Organization -MP), the Committee for the Rescue of Jews and
all brotherly organizations of all leanings.
Chain and Elimsz(Dr. Chaim-Hilfstein and Elimaz Tisz of Krakow - M.P.)
greet you warmly. They are in A camp at Ploszow, near Krakow. We are trying to
induce then to escape but they have refused since the Germans apply collective
responsibility at the camb and 50 Jews are shot for every one who escapes.

In the District of Krakow, in camps and concentration-enters there are about
15,000 Jews whose fate is sealed.

Advocate Gottesman of Krakow is now in Warsaw (he is in the Aryan quarter;

his appearance is not at all Jewish - M.P.) and collaborates with us. He sends you,
and All General Zionists, his warmest greetings.

Kaftor greets you all AS well as the colleagues of the J.D.C. He is surprised
that the latter have not gotten in touch with him.
We greet Berl and Locker (in the Polish original, the names Berl and Locker
are separated by a comma; if this is not a typographical error, then undoubtedly Berl
Berl means Berl Katzenelson of Palestine, otherwise of course, it means
Locker of London - M.P) and all those who collaborate with you.
The Jewish Fighting Organization of Poland greets all the Jewish soldiers,
fighting for liberation all over the world, against Nazism and Pascism.
JEWISH NATIONAL COMMITTEE

Dr. Berman (Borowski)
Icchak Oukerman
Warsaw

November 15, 1943

D. Kaftor

-

202

LAST MINUTE OFFICIAL COMMUNICATION
FROM THE

JEWISH NATIONAL COMMITTEE

The euissories whom we sent to the camps in the Lublin District to investigate
alarming rumors we have been hearing, bring back horrible reports. In the two
largest the crane. Trawniki (10,000 Jews) and Poniatow (15,000), all the Jews have been

The report about Trawniki accords with the description given in our letter to
Schwarzbart. The slaughter took place there November 3, 1943. It began at
A.M. and by 4 P.M. there was no-one left alive of the 10,000 Jewish inhabitnats
of the cast. On Friday, the 5th of November, the massacre of Kublin began. All
the Jews of the Lublin District were concentrated in the torture-camp of Majdanek and
there :laughtered. On Monday. November 8th, the murderous action began in Poniatow.

Dr.

Early in the morning, a cavalcade of autos bearing SS - men and gendarmerie
rolled in and encircled the whole camp with a dense cordon. At the moment when the
News realized that they were facing their doom, the local Jewish Fighting Unit set
fire :0 the espazines and store-houses where Germen Army clothing was kept. The
News attempted to defend themselves. A ferocious massacre then began, and lasted
3 days. Oc Wednesday, November 10th, there was no longer any sign of life in the
CEED. 15,000 people had been butchered. The corpses were cremated on the spot,

among then a number of living human beings. The shrikke and moans and the constant

firing in the camp were heard All over the District. The odor of burning Tiesh fill
ed the air for miles around. for more than a week.

In Trawniki and in Poniatow the Jews had attempted an armed resistance. Aware
of the existence in both these camos of local Jewish Fighting Units, the Germans
employed new tactics. They threw into both camps a hugb number of SS - men and
gendarmes. Several thousand Germans were among those massacred. Resistance on the
-

part of the Jews was Almost impossible. The camps were actually flooded with SS
men and gendarmes. In Poniatow, the Germans employed a "squeezing" technique.

Driving the Jews into an ever smaller corral, the Germans massacred them without
Centation.

It is significant that neither in Trawniki nor in Poniatow did the German

Avail themselves of Ukrainian help. In Trawniki, throughout the whole course of
the slaughtering action, the Ukmainian training-center was encircled by Germaness
then and in Poniatow the Ukrainian Detachment vas kept away from the action. The
Germane did not believe that their Ukrainian vassals could conduct the action with
the necessary precision.

The massacres in the camps in the Lublin District spelled the end for Warsaw
Jewry - for there were tens of thousands of Warsaw Jews there, deported during the
Course of the licuidation of the Warsaw Ghetto in April. 1943.
Among those who were murdered were a significant number of Warsaw Jewish

Intellectuale, quite elarge number of political leaders of all ideologies and ar
specially large number of organized workers and labor-leaders. (To these camps who

mostly been deported skilled workers and artisans). We enumerate those,
Travniki and Poniatow, served their people tirelessly and were active in the

branches of the Jewish Fighting Organization:

203

-7-

In Poniatow:

Melach Fajnkind, Commandant of local Jewish Fighting Unit (leader
of the Left Poale-Zion)
Etkin, "Bund"

Szmidt, Poale-Zion Right
Hofman, "Bund"

Przedecz, former City Councillor of Varsaw (Poale-Zion Left)
Dr. Dobrin, General Zionist
Tencet (Tencer1), former City Councillor of Kaliaz (Poale-Zion
Left)

Trawniki:

Dr. Wlodzimierz Smyfrys, Commandant of local Jewish Fighting

Unit (no party affiliation)

Advocate Dawid Sgulman. Revisionist

Malinowski, "Bund" - leader of Trade-Unions, Lodz
Advocate Abraham Witelson, General Zionist
Lublin:

(In a number of camps), hermetically sealed to the outside world,
there were - but are no longer living - among others. the following:

Dr. Ignacy Schipper
Alexander Zysze Frydman, Head leader of the Agudah

Dr. Tulo Nussemblatt, historian of the Zionist movement, biographer
of Theodore Herzl

I. Kirmon, poet
Docent Dr. Edmund Stein, well-known Judeic authority
Remba. activeZionist
A. Sanberg, actor

Mrs. I. Giterman, wife of the J.D.C. director (who was murdered
in January)

Luzer Stolar-Rychter, worker in the Poale-Zion Left
number of other active social workers, artists and intellectuals

A

The limidation of the camps in the Lublin District is the beginning of the
total extinction of all those Jewish camps still remaining in the country. This is
the beginning of the end of all Polish Jewry.
- JEWISH NATIONAL COMMITTEE

Dr. A. Berman (Borowski)
Icchek Cukerman
November 15. 1943

D. Kraftor

P.S. with the following post. we will send you the answer to your questionneire,
the report of the activities of the Jewish Fighting Organization and the report
of the fight in the Warsaw Ghetto.

204

To:

Tabenkin, Jaari, Dobkin - Histadruth Heovdin

AS ve write you these lines, we doubt whether we will ever see you. Today, of
3,500,000 Polish Jews, there remain scarcely 200,000. By the time you receive
this letter there will probably remain not more than half of that number. During
the last week, the camps of Trawniki, Poniatow and Lublin were liquidated. About
the

40,000 Jews perished.

Our sufferings you can neither understand nor conceive. In order to understated them you, who are in London and Tel-Aviv, would have to be possessed of

diseased inspirations. All the centers of Jewish life have been erased from the
earth. Their inhabitants met death in the torture-centers of Treblinka, Sobibor,

Belrec and Deviscia.

In order that there may remain a mark after those who died with their waapons
in their hands, Sighting against the enemy, we write you these lines about the last
days of the Polish Hechalutz and its youth organizations, Dror, Hashomer Hazair,
kibah and Cordonia. In a great measure, the story of the Hechalutz in these last
hours is the story of the Jewish Fighting Organization. At the beginning of the
extermination action, hundreds of our organization cells existed in all the Jewish
points of concentration.

There were 5 Kibutzim in Warsaw (two of them were in the Aryan quarter:
"Grochow and "Czerniakow"): three were in Czestochow and two in Bialystok. We
also had Kilmitzim in other cities - in Wilno, Zarki, Ostrowiec, Hrubieszow and
Bendzin. Aside from these, WA also conducted A great number of seasonal-agricul=
turel workers' centers.

Our Kibutzim later became the nests of active resistance in all cities. Ours
the smallest responsibility for the weakness of the resistance during the first
liniiati actions (July-September 1942), explained by many internal and outside
is

factors.

ing

The heroic and hopeless resistance of the Jewish Fighting Organizations (durthe second deportation action in January 1943 and especially during the last

limidation action in Warsaw April, 1943, and later during the liquidation actions
in Biolystok and Wilno - which have become glorious legends in the history of our
fight for freedom) is in a great me sure thanks to our organization which paid
heavily with the blood and the lives of almost all its members - the leaders and

the soldiers of the fighting action.
From Warsaw, we organized the Jewish Fighting Organization units in other

cities. Our agents organized the youth and fell, together with them, in the
ensuiny battles. The list we send you is that of only our central active of the group

which fell in the fight against the Occupants. A. Gewelber (a leader
Mechalutz of Poland, who is now in Palestine - M.P) will help you to decode some
of the names:

From Binlystok:
Mordehaj Tenenbaum (Tamaroff
Cwi Mersyk
Cheneh Zelazna-Gora
Owi Rozental
Cwi Bryndys

205
From Wolyn:

Edek Golowner

Laja Fisz
Szejndla Szware
Rachel Fogelman

Moniek Winnicki
Nuts Slomnicki
Jehuda Glikman
From Krekow:

Dolek Liebeskind
Laben Lejbowicz
Szymek Drenger
Techok Symplak
In Oswiecin Are:

Bela of Rozyszeze (the Kibutz of Bendain)
Chawka Folmar

Lonks Koziebrodzka (no longer living)
In Warsaw:

Chancia Plotnicka
Gerazuni Gedalia
Josef Kaplan

Izrnel Zelcer
Lutek Rotblat
Mordchaj Anielewicz

Laja Perelsztejn
Berl Brojda
Saul Dobuch
Sznajderman
Gutkowaki

Moniek Rengiewirz
Chedwa Camereth

Miriam Hajnsdorf
Mira Fuerer
Jehuda Wengrower

Tosia Altmen
Arja Wilner
Sara Szelubowska
Szymon Heller

This is not a complete list. Remember these names!

Until this very day. we work actively hand in hand with the Jewish National
Committee and with the Jewish Coordinating Committee (Jewish National Committee

plus the "Bund") whose initiators and founders we were for the purpose of the

resistance and relief activities.

During 1942 between 50-60 of our people went to Slovakia where they found an
extermination action in full away. A number of these people managed to escape to
Hungary. Which of them managed to reach Palestine? We are trying now to send out
a number of people to Hungary. Dr.Schwarzbart wrote us about the contact with

206

- 10 -

Budapest. Can we expect to receive direct help from there?

rend our letter. do not for a moment think that we are broken of spirit

fellen victims to resignation. our

you We
possible
regard
to merciless
We doom
alsous.
with know Bobor that
orhave
Ye At
know
you
have
done
everything
save

eyes. are helpless. It is easier for us to die, knowing that freedom will come to

you the world and believing that Palestine will become the Fatherland of the Jewish
Nation.

Yours,

Cywja, Icchek

P.S. Eliever Geller has left for the camp for foreigners in Bergen, near Hanover.
We have had no news from that camp. Please inform Ahuwa Lubetkin in Ben-Shemen
and Sara Culterman in Ramat-Hakovesh that we are alive.

Warsaw

November 15. 1943

- 11 207
To:

Zerubewel, Erem, Mula (Leaders of the Left Poale-Zion in Palestine) Tel Aviv
Dear Conrades:

We received your telegram of September 23, 1943. We also have the use of the
generol funds which were sent to the Jewish National Committee. We thank you for

the assistance. We actively participate in the resistance and relief work. We
are active in the direction of the Jewish National Committee as well as in that of
the Coordinating Committee of the Jewish National Committee and the "Bund". In

our work, we are led by the ideals of our movement to which we fell bound in life
and in death. Let us know what the situation is in Palestine and how our movement
developes in other countries.

There are not many of us - the majority have perished. We have managed to save
Antoni (Antoni Buksbawn - the leader of the Left Poale-Zion in Poland-M.P.) from

Lwow. He left, together with his family, for the camp for foreigners in Bergen,

near Honover. Lately, we have been hearing alarming rumors about that camp. Please
check on these rumors. Take care of Antoni, Emanuel (Dr. Emanuel Ringelblum, the
historian) was saved from the camp in Trawniki where, at the beginning of November,

a terrible unseacre took place. He is here with us and pursues his scientific
work. We also saved Pola, Berlinski, Wasser, Erlich, Sylkes and others. They are
all with us. Basis is active. Melach, Luzer, Lent, Blumstein, Tencer, Przedecz,
Szapiro and others are still in camps. We are doing everything possible to save
them but our hopes are weak. The Germans are butchering all the remaining Jews in
the caups which are completely isolated from the rest of the world,

We believe in an inminent universal liberation - but few of us will live to
see it. Tell the vanguard of the working masses of Palestine and the rest of the
world that even now, in the shadow of death and destruction, we are fighting with
then for national and social freedom.
- ADOLF ( Dr. A. Berman, member

of Praesidium of the

-

Wersaw

November 15, 1943

Jewish National Committee)

To:

Locker, Reiss, Neustadt
London, - Tel Aviv
Dears:

in received the telegrams from Locker, Schwarzbart and the Committee of the
Vishuv. le were greatly encouraged by the information about the development of

Palestine, about the fighting of Jewish military units on all fronts, about the

hopes for the imminent attainment of complete independence. May our dreams be

realized in the not distant future, although this day will come too late - after
the bloody loss of almost a third of our people.

There are not many of us left. Almost all our active workers and leaders
have perished. Among them were: Jochana Morgenstern, Radunski, Fiszelzon,
Lichtszejn, Advocate Katz, Sytner, Rachela Sztein and her husband, Engineer
Feigenbaum, Dr. Schenker, Przepiorka, Gutkowski, Parzenczewski, Opoczynski,
Rechtkopf, Majerowiez, Marek Folman, Laufer.

Of those who still remain, a part are in camps and their fate is sealed
(Serejski, Szmidt and others). Maxsymiljan Boruchowicz of Krakow is still alive

and is in contact with us. The daughters of Dr. Pelcer is still alive and is
being helped by us.

The remaining handful of our people live in a constant nightmare, with the
threat of death hanging over them.

Every day that finds us still alive, we regard as pure chance. Death had
become too casual a thing for us to fear it. The times in which we live today against which Dante's Inferno seems like a fairy-tale by comparison - have produced
in us a new mentality, a new psychology. If anything can be said to our credit it
is that, despite what we are going through, we are strengthened in the moral resolve
to go on with our work. The credit is not ours but belongs to those values which
have imbued our very blood-stream.

It is thanks to these values that the initiative for the resistance and fight
Came from us, from the Labor Zionist groups.

ie greet you, chisku velimzu, all our brothers who are fighting and working
for a better future in a liberated Palestine!
In our abyss, we are strengthened by the though and belief that you over
there, through your indefatiguable work, are building our free, socialist Palestine.
Jozef Sack

Lejzor Lewin
Szalom Grajek
Sywia

Icchak
Narsaw

November 15, 1943

P.3. We greet Arieh (Tartakower) our comrades and all our friends. Grajek
warmly greets Berta, Rutka, Rafek, Chaim, Ludek and Hanusia.

209

- 13 -

FINANCIAL REPORT OF THE
JEWISH NATIONAL COMMITTEE IN POLAND

For the period January 1 - October 31, 1943

During the report-period, the following sums were placed at the disposal of
the Jewish National Committee by the Delegate of the Government:
June 1943

-

July

3-

1943

$10,000 sent for the General
Zionists and Right P-Z

661,150 zlotys

$10,000 (first installment of

650,000

10,000 pounds sent to J.N.C.

August 1943 .. $10,000 (second installment of
10,000 pounds sent to J.N.C

816,000

September 1943 $10,000 (third installment of
10,000 pounds sent to J.N.C

903,400

TOTAL

"

1-

3,030,550 zlotys

The money received was expended for the following purposes:
1-

Relief for members of parties and organizations which belong to the Jewish
National Committee; for the families which excaped from the ghettos and camps
and are living in Aryan quarters; for those who are living in camps which are

accessible.

The following groups were cared for; a) General Zionists b) Left Poale-Zion
c) Right Poale-Zion d) Hechalutz and youth organizations (Hashomer Hazair,

Dror, Akibah, Gordonia)

In addition, certain sums were sent to various leaders of the Agudah, to
rabbis who are still in camps, and to Revisionists. (These sums are included
in the category of "Individual assistance")

expenses conducting the Jewish

The for the above work are huge because the majority of
the workers and their families, as well, must be maintained by
National Committee, since their material situations are so catastrophic.
The expenses for maintaining Jews of non-Aryan appearance in the Aryan
quarters are colossal.

A great part of the budget of the Jewish National Committee went for relief
work. Through its own agents or through the Relief Council for Jews under
the auspices of the Polish Delegate, the Jewish National Council sent money
to the camps and to the provincial centers for maintenance, clothing, individual assistance, social self-help, etc.

- 14 210
most conson formof relief is that of individual assistance to Jews without
party affiliations, who reside in the Aryan quarters under desperate
conditions. These are, for the greater part, individuals or entire families
The

any

from Warsaw or the provinces who cannot be reached by the Relief Council for
Jows. The majority of the contact-people of the Council are well-known Polish

intellectuals, cultural leaders, artists and also Jewish leaders and collabo-

rators in the Jewish National Committee.

The subventions granted to the Relief Council are a practical expression of
the bond existing between the Jewish and Polish relief actions on behalf of
the Jews. These subventions make it possible to enlarge the scope of activities
of the Council,

Subventions for the Jewish Fighting Organization represent a great percent of
the funds of the Jewish National Committee,

The Administrative expenses of the Jewish National Committee are comparatively
sun11 since most of the workers render service without remuneration.

We emhasize that in connection with the relief work in the camps, the
activities of the Jewish Fighting Organization and the Relief Council for the Jews,
the "Bund" also furnishes certain sums. The amount of the swas is decided upon
the Coordinating Conmittee of the J.N.C. and the "Bund".

by

Distribution of the various relief expenditures
335,000 zlotys
355,000 If

Hechalutz and youth organizations (Hashomer Hazair,
Dror, Akibah and Gordonia

335,000
385,000

Ponle-Zion Left
6-

385,000 If
350,000 If
250,000 If

Cames and ghettos

Individual assistance

Subventions for Relief Council for the Jews
8-

30,550

Administrative expenses and miscellaneous

#

5-

"

Ponle-Zion Right

"

1- General Zionists and their families

TOTAL $63,030.550 zlotys
From the above enumerated sums, we can see that the 1,310,000 zlotys were

used for maintenance, housing and clothing of the members and their families of the
organizations included in the Jewish National Committee. If we deduct the first
transmissionof 661,150 zlotys, which was definitely earmarked for the use of the
two parties (General Zionists and Poale-Zion Right) and was used for relief for the
members of those parties,we find that the Jewish National Committee expended ever

[reater swee
Of the
two
suns,
not for
more
than
were
forwhich
relief for

members 2,369,400 zlotys, general purposes. 850,000 zlotys remaining expended total

of the organizations included in the JNC. The remainder was allocated for
general. Though the J.N.C. has determined to use the funds at its disposal
for general relief, it has adopted the principle that in order to preserve the
soul
and body of the social and ideological forces of Polish Jewry, and especially
its
youth, it must concentrate a comparatively large part of these funds for the
latter.
JEWISH NATIONAL COMMITTEE

Dr. A. Berman (Borowski)
Warsaw

November 15, 1943

Icchek Cukerman

211

PARAPHRASE OF TELEGRAM SENT
SECRETARY OF STATE, WASHINGTON
AMLEGATION, LISBON

March 23, 1944
841

SECRET

Hires below is the substance of a message for Joseph J.
Investo care of Donald Harwitz, 242 Rua Aurea, Lisbon, from

Joint Distribution Connittee:

It is important that you first visit Hadrid before
to Alglers. The Limbon Legation will have messages
for 701. You should contact the Enbassy at Madrid regarding
special license which we hope will enable you to initiate
the program planned in connection with evacuation

of thilizan. In connection with refuges activities, including

the allovementioned program. you may wish to consider station-

ing Laura Kargolis at Madrid. The first week of April she will
arrive at Lisbon. Your request concerning passport is being
taken un.

HULL

212

0

Y

TELEGRAM SENT

RA

March 23, 1944

This telegram must be
paraphrased before being

9 p.m.

communicated to anyone

other than a Governmental

agency. (BR)

ALLEGATION,
LISBON
842

FROM WAR REFUGEE BOARD TO MINISTER NORWEB

Following message to Joseph Schwartz, 242 Rua Aurea, Lisbon,

Portugal, from the Joint Distribution Committee:
QUOTE Can you cable us estimate number Jewish refugees

remaining Spain after Canadian group departs also how many of
them likely be moved Casablanca camp and how many refusing to go

latter divided two categories those on relief and those having
independent means Stop Believe important from every viewpoint that

refugees on relief particularly be was Combanca camp
and moral sussion should be used utmost this purpose Stop Also

cable same Information regarding stateless refugees Portual Stop
Leavitt UNQUOTE.

HULL

(GLW)

WRB:GLM:KG

3/20/44

We

213
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
TO:

American Legation, Lisbon
Secretary of State

DATED: March 23, 1944
NO:

879

CONFIDENTIAL

Following from Joseph Schwarts for War Refugee Board
for Moses Leavitt, Joint Distribution Committee, New York.

The following message is in reply to your cable from
War Refugee Board to the American Embassy in London.

assurance
to depart
and alsoa hopes

is no definite

to
obtain
Balkans,
I suspended for

children
date
the deal with the cancella-

Balkan evacuation for we know that
when the steamer is we cannot close
will One. because yet a Turkish all be Upon vailable negotiations of available Portuguese advice required vessel information the that time for for from at company. children for being. embarkation exacuation Resnik at that Portuguese Constansa, Ira will Obviously Unless that Hirschmann from be and steamer there able the the

tion at our option is not possible once the steamer is
actually en route to Balkan port. I have sent a cable to

Hirschmann directly through the Embassy in London asking

him for precise information regarding the present status
of the project and also whether negotiations should be resumed by us here but no reply has been received thus far.
Two. Although it is understood by us that German

authorities are raising difficulties concerning safe con-

duct, Portugal has not refused permit to Portuguese vessel for Balkan evacuation. We have every reason to hope

that if children are available and Hirschmann tells us to
proceed with negotiations, the vessel will be available to
sail.

Three. Saly Mayer is working very closely with OSE,

Hechaluts, Jarblum and other groups concerning rescue from

France and other countries of children and others. Yester-

day I talked by telephone with Jarblum and no mention was
made by him that he required any funds for rescue purposes
and therefore I cannot understand his message to emigre

group United States. With respect to children from France,

the main rescue work is being carried on through OSE and
today I have been informed that in recent weeks 107 children
have been brought into Switserland, 50 having arrived within

the last ten days. Saly Mayer is being asked to report
through the Legation in Bern regarding the use of the first
$20,000 sent for children in France.

214

-Four. The arrival of the first group of 20 children
from France to Spain through our own efforts is expected
daily and the ground work for additional groups has already
been laid. Because of bad weather conditions in the Pyrenees
the process has been slowed up temporarily but we hope to

have further reports in the near future.

It is absolutely essential that you obtain a
special passport for me in order to facilitate my

movements which are otherwise difficult and are
becoming more so. Notification of Treasury license
No. W-2155 for Spain and No. W-2154 for Portugal has
been received through the American Legation.
NORWEB

215

PARAPHRASE OF TELEGRAM SENT
FROM:

Secretary of State, Washington

TO:

AMEMBASSY, Madrid

DATED:

March 23. 1944, 5 p.m.

NUMBER:

799

SECRET

With respect to your telegram of February 28, 1944
no. 683 we appreciate the comments and suggestions with
respect to the War Refugee Board contained therein. The
War Refugee Board wishes to point out that Camp Lyautey
will not be the only haven to which refugees can be
removed from Spain. The Board now has negotiations in
progress for other havens and you should assume and may

advise the Government of Spain that there will be removed
from Spain all refugees from occupied areas entering Spain.
TheBoard was pleased to learn that no obstacles are
being placed by the Spanish Government in the way of stateless or other refugees wishing to enter Spain from France with
or without proper papers and the Board hopes in the
future that Government will follow a generous policy in
that regard.
The Board knows that the number of stateless refugees
entering Spain from occupied areas is extremely small

at the present time but the Board desires to inform you

that it is taking vigorous steps at the present time

vis-a-vis Germany and the satellite countries which it
is confidently expected will stimulate the flow of
refugees into Spain and other neutral countries from
occupied areas. The Board will continue to take all
possible action to this end. In any event, in the coming
months when the snow melts in the Pyrenees the flow of

refugees into Spain is certain to increase.
The Board believes that Spain is most likely to
receive substantial numbers of refugees this coming
spring as a result of the pressure now being brought to
bear on the Axis. The Board is extremely desirous that
the Government of Spain be relieved of as many problems

as possible connected with this influx, including
finance, supply and supervision of refugees. Therefore
the following plan of proposed operations in Spain is
submitted by the Board for your consideration. advice
and comment and such action as is indicated.

216

All the Board's operations in Spain. including

the setting up and maintenance of refuge camps, would be
supervised by the Special Attache to your Embassy under
your direction. He would have assigned to him a small
staff which might include transportation. supply and

finance officers. As a base for operations the Attache
and his immediate staff might use Madrid. It is proposed
that AS many as three reception centers be established
along the French border should the volume of refugees

so warrant. At each' of these centers a supervisor with
experience in refuge work should be in charge. Each
supervisor would have a small staff. There would also
be attached to each center a medical officer and possibly
A small nursing staff. A important member of the staff
of each center would be a qualified Security Officer
approved by the War Department. These Security Officers
would be attached to the reception centers as welfare
workers instead of being assigned to the Office of the

Military Attache in the Embassy. The dual responsibility
of these officers would be to screen refugees in search
of possible enemy agents and to obtain from bona fide

refugees information of a military nature. Murillo,

Tolosa and Figueras are tentatively suggested as reception

centers. Other localities may be agreed upon latter as
points readily accessible to those crossing the Pyrenees.
The Board is of the opinion that these centers

should be in frontier areas rather than the interior
for the following reasons:

(1) The nearness of the centers to the frontier

would reduce to a minimum the time during which the
refugees would be in the hands of the Spanish authorities.

(2) The refugees will require immediate relief
in food, clothing and medical attention once they have
crossed the Spanish border as many of them will have
previously been in hiding in France and have been subjected
to the strenuous travel over the mountains on foot. The
refugees would be kept out of the principal population
centers, such as Madrid, as far as possible. The attention paid to the presence of refugees would also be
reduced by the remoteness of the proposed centers.

(3) The location of the centers near the border
would result in close cooperation between the staffs of

the centers and the Spanish frontier officials. The

refugees would remain in the centers only so long as to
assure medical officers that they are in condition to

travel, to allow for preliminary security screening

and to supply them with whatever travel documents might

217

be needed.

Since the basic plan is to move those refugees who
may enter Spain from occupied areas to North Africa as

rapidly as possible, it is hoped that the French authorities will assign to the reception centers as special
details, qualified officers to screen the refugees for
security and to affix to their travel documents the
necessary visas. As regards the problem of screening,
it is of course possible and probable that enemy agents
may try to enter Spain as refugees. Therefore it is
most desirable that when enemy agents are identified by

the security officers, such identification not be dis-

closed in Spain but the agents be removed to North Africa
for apprehension. This policy has been used in the past

with respect to enemy agents and it is clearly preferable
that they be held in restraint in United Nations territory rather than be at liberty in a neutral country.
It is requested that you report any objection which
you think may be raised by the Spanish Government to the
establishment of these centers in the foregoing manner

and to their financing by the Board. The funds for their
operation probably will be provided by private sources

in the United States. As will be noted by you, this

plan reduces to a minimum the responsibility of the

Spanish Government. Your comment on whether the staffs
of the centers should be known to the Spanish Government
as official employees of the Government or as representa-

tives of American private welfare organizations will be
appreciated by the Board. Incidentally, the American
Red Cross is reluctant to participate in the operations
of the centers at this time.

Clarification of the meaning of "involuntary removal"
of refugees was requested by you in Section I of your
telegram of February 28, 1944 no. 683. We anticipate
that many of the refugees will wish to proceed to other
areas than North Africa once they have escaped from

occupied areas. However, the Board feels that it is
undesirable that these refugees remain in Spain. They
should proceed to North Africa where they may make

arrangements for travel elsewhere with greater security

for themselves and without embarrassment to the Government of Spain which might be caused should they remain

there. It is proposed that the frontier officials

and police authorities direct the refugees to the centers,
providing them with permits to travel only from the point
of apprehension to the nearest center. We hope that the
refugees will be advised by the Spanish officials that

218

their presence in Spain will be tolerated only so long

as they conduct themselves in accordance with this pro-

gram. After arrival at the centers, it will be explained

to the refugees that the Spanish authorities have released
them into the care of the centers. Every effort would
then be made to convince the refugees that the travel
of other refugees through Spain depends upon the rapid
departure from Spain of those who have already entered.
It might be further explained that after leaving Spain
the refugees would be under the care of UNRRA officials

rather than directly under French control. It is believed
that such a policy will assure the quick and voluntary

departure for North Africa of all refugees who may
succeed in crossing the Spanish border if it is handled
skillfully by the representatives of the Board.
The Board hopes that you will give your prompt

personal attention to this proposal and that your

comments and suggestions will be cabled as soon as
possible.

War and State Departments have approved this cable.

The foregoing is for Ambassador Hayes' attention.
HULL

219

BJR 421
telegram must be
being
communicated to anyone

This paraphrased before

other than a Governmental

Madrid

Dated March 23, 1944

Rec'd 10:55 a.m. 24th

agency. (sc00)

Secretary of State,
Washington.

1018, March 23, 6 p.m.
FOR FRYER AND BECKELMAN

Would be most helpful if Embassy could be informed

at earlies possible moment of persons (by names or
application numbers) who have not (repeat not) been

approved for admission to Fedhalain order that preparation of documents for those who are admissible
can be expedited. Your March 17, 10 p.m., to Department
repeated to Madrid. Repeated to Department.
HAYES

WSB

220

March 23, 1944
1:15 p.m.
CABLE TO STOCKHOLM

From War Refugee Board to Johnson

Please deliver the following message to Rabbi Wilhelm
Wolbe, 11 Olafegatten St., Stockholm, from Rabbi Abraham
Kalmanowitz of Vaad Rahatzala Emergency Committee:

"Bontact Rabbi Szmulewiez inquire health economic

status of Rabbinical group in Shanghai. Utilize every
possible way to help them stop Concerned fate Lithuanian

Jewry advise condition there. How you can help especially
Rabbis and scholars stop Organize rescue Committee will
make money available. Contact American Legation inform us
through legation." -

FH:1ab 3/18/44

221
March 23, 1944
4:50 p.m.
CABLE TO MINISTER HARRISON, BERNE, SWITZERLAND, FROM WAR REFUGEE BOARD

The War Refugee Board requests that you deliver the following
message to Intercross

Message begins: The President of the United States recently instructed
the Secretaries of State, Treasury and War to take action for the
immediate rescue and relief of the Jews of Europe and other victime of
enemy persecution. The Executive Order establishing the War Refugee
Board declared QUOTE It is the policy of this Government to take di
measures within its power to rescue the victime of enemy oppression who
are in imminent danger of death and otherwise to afford such victime all
possible relief and assi stance consistent with the successful prosecution
of the war UNQUOTE. The President stressed that it was urgent that

action be taken to forestall the plot of the Nazia to exterminate the

Jews and other persecuted minoritiesin Europe.

(*)

On March 24 the President issued a forceful statement which
reaffirmed the determination of the United States Government to punish
those guilty of acts of savagery against the Jews and other oppressed
peoples, and again made clear that this Government would do what it can
for these people and would assure them maintenance and support. He
called upon all peoples to cooperate.
Intercross as wellnas the War Refugee Board redize the fate of
groups singled out for extermination or oppression by German authorites
and exempted from protection of the Geneva Convention is tragic whether
they be detained or free but deprived of food, clothing, and all

elementary facilities. This concerns particularly Jewish survivors.
Accordingly the Board hopes that Intercross will do its utmost to obtain
improvement of conditions of these perso ns in every way possible.

In full agreement with interested American welfare agencies, the
War Refugee Board requests Intercross to support this humanitarian
endeavor by approaching the the German and satellite governments, through
appropriate and expedient channels, in order to bring about as a minimum

the full or at least partial application of the Geneva Convention and
of resolutions of ensuing Intercross conferences to the detained and
unassimilated groups of Jews and others with a view to effectiating.
(1) their complete assimilation with and treatment equal to civilian
internees new under the Geneva Convention, or (2) partial assimilation
with civilian internees now under Geneva Convention at least to the
extent that reception and distribution of packages under Intercross
supervision will be permitted.

(*) Please insert following line

to save them. The President stated that we would find havens of refuge

222

-2- In addition, the War Refugee Board requests Intercross to make
every effort to obtain, whereever possible, for Jews and other victims
of Nazi oppression (who though they may not be physically interned in
camps have been singled out for persecution) facilities and opportunities

to obtain food and other necessities on the basis of equality with the
local population out of local resources and through Intercross chan nels.
The War Refugee Board is determined to do what it can to actually
bring Jews and other persecuted pere ns out of German controlled

territory in as large numbers as possible. The Board urges that Inter-

cross, through appropriate approaches to the German and other authorities
in Germany controlled territory and through any other means possible, do
what it can to assist the departure of these persecuted peoples to
neutral countries.

The Poard is cognizant of Intercross's unceasing efforts in the
direction of making this general program a reality and is appreciative
of Intercross's activity in its international humanitarian programs. The
Board is ready to assist Intercross in every way to effectuate the
reali,ation of dl of the foregoing. Message ends.
The War Refugee Board considers that the proposed approaches to
The German and others through Intercross is of utmost importance to the

success of its program. In view of recent military developments,
including the reported situation in Hungary, Bulgaria, and Rumania, the
Board is convinced that great emphasis should be placed on efforts to
persuade the Germas to improve the conditio on of Jews and other similar

groups within occupied territory. Accordingly, you are requested to do
everything possible to support the proposals being made to the Intercross.
If at any time you consider it desirable that the Swiss Government make
similar approaches to the Germans, or otherwise assist in the program
outlined herein, you are authorized to make a request for such acti on to
the Swiss on behalf of this Government.

PJMcCormacktie 3/23/44

223

PARAPHRASE OF TELEGRAM RECEIVED
FROM:

American Legation, Bern

TO:

Secretary of State, Washington

DATED:

March 23, 1944

NUMBER: 1774
CONFIDENTIAL

Reference is made to Department's telegram of March 20

No. 916. After discussion with Saly Mayer, International
Red Cross states that former, "with exception of certain minor
changes which could be easily made". has approved International
Red Cross relief program.
HARRISON

224

PARAPHRASE OF TELEGRAM SENT

SECRETARY OF STATE. WASHINGTON

CO:

AMLEGATION, BERN

MARCH 23, 1944
NUMBER

970

SECRET

in are informed by the representative of the War Refugee
Board at Ankare that the SS TARI, a four thousand ton vessel
at Istanbul at the present, which belongs to the Government
of Turkey is being made available to evacuate Jewish refugees
from Constanza to Istanbul. Simond of Intercross has sent to
Geneva a cable asking for sufe conduct by all belligerents MX
cept the Soviet Union. The Soviet Ambassador in Ankara is bein requested to obtain from the Soviet Union safe conduct.
You are requested to communicate with the Swiss Government and

this it to support the Intercross request in its own name in
the of the humanitarian aspects of the matter. (For the information of the Legation: the support of the Swiss Government should
aggest as its own Action and not as intervention in a representative capacity). You are requested to inform the Swiss Governbut ut Intercross that this Government concurs in such safe
collect for the movement of the SS TARI for the above purpose
as the British Government may agree to.
HULL

225

PLAIN

AMT-163

Bern

Dated

March 23, 1944

Rec'd

5:30 p.m.

Secretary of State,
Washington.

1781, twenty-third.
Burharest despatch reports all Jews born Bucharest

1889/1900 ordered by Defense Ministry register for
special military labor service with noncompliance therewith
subject punishment by military courts.
HARRISON

JRL

226

GKM-84

This telegram must be
peraphrased before being
comunicated to anyone
other ahan a Governmental
agency. (BR)

Ankara
Dated

March 23, 1944

Rec'd

2:02 p.m.

Secretary of State,
Washington.

588, March 23, noon
FOR THE DEPARTMENT AND WAR REFUGEE BOARD

My 5. As I regard it as important that Hirschmann should not de delayed on his return trip to the
United States and in view of the imminence of his

departure, I should appreciate being informed by telegraph as to whether the ATC in Cairo has as yet been

advised with respect to his priority.
STEINHARDT
RR

227
PARAPHRASE OF TELEGRAM RECEIVED

FROM:

American Embassy, Ankara

TO:

Secretary of State

DATED: March 23, 1944
NO.:

509
SECRET

The following message is No. 6 from Hirschmann for
war Refugee Board.

The Department's telegram of March 20, 1944, No. 221,

cites a case which tends to confirm rumors current in
Istanbul for some time as well as statements a number of
Jewish refugees recently arrived in Turkey made to me that
representatives of Jewish Agency give priority to paid-up
members of Zionist Party with respect to exit visas from
the Balkans and entry certificates into Palestine and that

difficulties in obtaining certificates into Palestine and

in departing from Balkans are encountered by Jewish refugees
in the Balkans who are not members of the Party or avowed

Zionists. Since I recognize the implications inherent in
these persistent rumors, I have taken pains to investigate

the accuracy of those rumors and I am now satisfied that we
must soon give serious consideration to eliminating grounds
for any such complaints. If we assume that these reports

are well-founded, they would reflect a policy which obviously could not be corrected or even controlled from
Ankara or Istanbul by the United States. I intend to make
a detailed report to the Board along with recommendations
for remedial steps when I return since the subject cannot
be dealt with here.

The Board is referred to my cables Nos. 344, 388, 440,
455, 466, 474, 4/8, 497 and 499 with respect to the attitude
of the Rumanian and Bulgarian Governments.

The Ambassador and I urge for obvious reasons that

until I have had an opportunity to discuss the matter with
the Board, the contents of this cable be kept secret.
STEINHARDT

228
PARAPHRASE OF TELEGRAM SENT
FROM:

SECRETARY OF STATE, WASHINGTON

TO:

AMEMBASSY, ANKARA

DATED:

MARCH 23, 1944

NUMBER:

243

CONFIDENTIAL

The following is War Refugee Board's no. 10 for
Hirschmann and concerns the matter of obtaining shipping
for evacuating refugees from the Balkans referred to in your
cables no. 455, 458, 471 and 472.
A request is being made of the Swiss Government to support in its own name the efforts which the International Red
Cross is making to obtain safe conduct for the SS TARI which
has been placed at your disposal to evacuate Jewish refugees
from Constanza. Also the Swiss Government and International
Red Cross have been informed by us that this Government agrees
to whatever safeconduct the British grants.
We have had discussions with War Shipping Administration

with respect to the proposal that a substitute vessel be made
available by this Government so that repeated voyages to
evacuate refugees may be made by the SS TARI. War Shipping

Administration has cabled Myron Black requesting further
information as to one, the type of vessel needed and where it

will trade; two, information as to whether the vessel will be
considered by the enemy as a Turkish vessel if it is to trade
in enemy controlled areas and also whether safe conduct will
be needed. Information has been received by us to the effect
that sympathetic consideration will be given by War Shipping
Administration to such recommendations as Black may make even

if they involve practical difficulties. However, War Shipping

Administration believes that the situation could be best
handled by treating it as a problem of allocation by which an

attempt could be made to work out an arrangement by which the
use of Turkish ships would be conserved through making equivalent

space available on an Allied vessel proceeding to a port in the
Eastern Mediterranean. War Shipping Administration is also

sending a cable to Kallock, their representative in Algiers,
asking that they be informed whether there is available in the
lediterranean any small freighter which could be used under
charter by the Government of Turkey.
In cooperation

229

-2In cooperation with Black you should investigate all the

possibilities of this situation. Whatever plan is finally

proposed must be one involving the least delay since time is

most essential in view of the military situation. War Shipping

iministration has pointed out the practical difficulties re-

garding the obtaining, without delay, of a ship now available
in the Mediterranean which could be chartered to the Turkish
Government for the abovementioned purpose.

We will be glad to do whatever we can to carry out whatever recommendation you may make after all the difficulties
involved have been considered by you and Black. Should the
first voyage of the SS TARI be completed within a short period

of time, you will realize that an attempt actually to supply

the Turkish Government with a vessel by that time would en-

counter considerable difficulties. Taking into consideration
the shipping situation, we believe that a much more feasible

arrangement would be to reach an agreement, if possible, with
the Government of Turkey whereby this Government would give
assurances that should the SS TARI would be used.

With respect to the suggested purchase of the SS NECAT
for donation to the Turkish RedCrescent, it has been indicated
by the Government of Turkey that it would not be possible to
withdraw a second vessel from those at the disposal be that

Government. If it develops that it is not possible to arrange
for repeated voyages by the SS TARI, please advise us if you
love investigated the possibility of making the SS NECAT available immediately after the first voyage of the SS TARI has
been completed.
HULL

CC: Miss Chauncey (for the Sec'ty) Abrahamson, Akzin, Bernstein,
Cohn, DuBois, Friedman, Gaston, Hodel, Laughlin, Lesser,
Luxford, Mann, McCormack, Paul, Pollak, Rains, Sargoy,

Standish, Stewart, H. D. White, Pehle, Files

230

FROM:

SECRETARY OF STATE, WASHINGTON

TO:

AMEMBASSY, ANKARA

DATED:

MARCH 23, 1944

NUMBER: 243

CORRECTION

Page 2, Second Paragragh

(last sentence)

We will be glad to do whatever we can to carry out whatever recommendation you may make after all the difficulties
involved have been considered by you and Black. Should the
first voyage of the SS TARI be completed within a short period

of time, you will realize that an attempt actually to supply
the Turkish Government with a vessel by that time would en-

counter considerable difficulties. Taking into consideration
the shipping situation, we believe that a much more feasible

arrangement would be to reach an agreement, if possible, with
the Government of Turkey whereby this Government would give

assurances that should the SS TARI be made available say for a
period of three months, there would be made available to the
Turkish Government equivalent space on an Allied vessel for
a comparable length of time not however necessarily concurrent
with the period during which the SS TARI would be used.

231

THE DIRECTOR
CENTRAL TELEGRRPH OF USSR
MOSCOW

TELEGRAM CONTAINING MESSAGE OF MARCH 18, 1944

SIGNED BY NATIONAL COMMITTEE OF LIBERATION OF
YUGOSLAVIA AND FORWARDED BY YOU TO "BOARD OF TREASURY",

Washington, RECEIVED BY TREASURY DEPARTMENT 9:15 A.M.
EASTERN WARTIME, MARCH 23, 1944.

SECRETARY OF THE TREASURY.

(Initialed) H.M., Jr.

AFL:ec 8/23/44

232

C

Received

0

FOREIGN FUNDS CONTROL

P

Treasury
1944 Mar 23 AM 9 15

Y

K1 RADIO VIA MACKAY RADIO
MOSCOU 22

BOARD OF TREASURY
WASHINGTON

WE ARE FORWARDING TELEGRAM RECEIVED BY CENTRAL TELEGRAPH IN MOSCOW FROM NATIONAL

COMMITTEE OF LIBERATION OF YUGOSLAVIA AND ADDRESSED TO YOU COLON QUOTE NATIONAL

COMMITTEE OF LIBERATION OF YUGOSLAVIA INFORMS BOARD OF TREASURY THAT IT AUTHOR
IXED MR DOCTOR RUDOLPH HIGANIC VICEGOVERNOR OF NATIONAL BANK OF KINGDOM OF
YUGOSLAVIA TO REPRESENT INTERESTS OF NATIONAL BANK OF KINGDOM OF YUGOSIAVIA AND
TO PREVENT WITHDRAWAL OF ITS DEPOSITS WITH YOUR TREASURY BY ANYONE AND IN ANY
AMOUNT WITHOUT CONSENT OF NATIONAL COMMITTEE OF LIBERATION OF YUGOSLAVIA STOP
NATIONAL COMMITTEE OF LIBERATION OF YUGOSLAVIA AUTHORIZED DOCTOR RUDOLPH HIGANIC

TO REPRESENT IN THIS MATTER INTERESTS OF NATIONAL COMMITTEE OF LIBERATION OF
YUGOSLAVIA AS LAWFUL REPRESENTATIVE OF PEOPLES OF YUGOSLAVIA STOP SIGNED

PRESIDENT OF NATIONAL COMMITTEE OF LIBERATION OF YUGOSLAVIA I B TITO COMM
ACTING COMMISSIONER FOR FINANCE I MILUTINOVIC STOP MARCH EIGHTEENTH NINETREN
FORTY FOUR STOP YUGOSLAVIA STOP SEAL OF PRESIDIUM OF NATIONAL COMMITTEE OF
LIBERATION OF YUGOSLAVIA UNQUOTE STOP CENTRAL TELEGRAPH OF SOVIET UNION REQUESTS

YOU INFORM IT OF TIME OF DELIVERY THIS TELEGRAM TO ADDRESSEE STOP
DIRECTOR CENTRAL TELEGRAPH OF USSR.
9144 MAR 23

C.c. to Measrs. White, Luxford, Pehle (for information), Hiss.

Jan
233
PARAPHRASE OF TELEGRAM RECEIVED

American Embassy, Moscow

FROM:

TO:

Secretary of State, Washington

DATED:

March 23. 1944

NUMBER:

996

CONFIDENTIAL
ATTENTION OF FEA AND THE DEPARTMENT.

The Department's cables nos. 625. 626 and 627 of March 18 are
referred to herein, as also my 889, March 17. reporting my preliminary
conversations with Mikoyan and commenting on Department's 510, dated

March 7. Given below are my further comments which are supplementary

to my no. 889 and it is requested that you please read then together.
Only the idea expressed in article 2 of the proposed agreement was
discussed by me in my talk with Mikoyan and the concept of article 3
was not explained by me. The concept of article 3 is heartily endorsed

by ne as I recognise that it will give greater flexibility in accepting
justifiable Soviet requests for items which appear to have a minimum war
value and a maximum post war value, as they have been described by you.

The next time I see Mikoyan I will describe the concept of article 3.

I

have already expressed my preliminary opinion in my no. 68, January 9.
regarding the terms of repayment and interest rates under articles 2 and

3. I transmitted Mikoyan's suggestions which I consider as his initial
trading position in my cable of February 1, no. 334. It will be noted
that I proposed to you a credit for from 5 to 30 years at an interest rate
of between 2 and 3 per cent and repayment beginning 5 years from termina-

tion of hostilities in annual installments, whereas Mikoyan suggested an
interest rate of 1/2 of 1 per cent and payment beginning with the 16th
year in equal annual installments over 20 years thereafter.
Your suggestion of an interest rate approximating the present rate
of US Government long term securities is concurred in by me.

As I believe it is important to establish at an early date the habit

of repayment it is well to ask the Soviets to begin repayment at the end
of 5 years. However, we night well agree to small initial payments and
subsequent larger payments. I do not feel in position to recommend a definite period for full repayment, but recommend that the longest period
justifiable be offered.
As a suggestion it might be agreed that the Soviets:
(1) Pay annually an amount equalling the interest on the original
figure due and, as amortisation payments are made, the saving in interest

be credited to amortization of principal; and,

--

234

(2) Make amortisation payments of 1 per cent during the 6th through the
10th years, 2 per cent during the eleventh through the fifteenth years and
from the sixteenth year on amortisation at an annual rate sufficient to repay

the principal by the end of thirty years after termination of hostilities.

It is my belief that the detailed terms of this proposed agreement,
including financial terms, should be negotiated in Washington. If I continued to condition Mikoyan to our basic conceptions without making any commitments, I believe it would be useful and facilitate the Washington negotiatione. Without entering into an argument with Mikoyan over this question, I

will therefore tell him on the next occasion that interest rates should, in
my opinion, be linked with the present rate on US long term securities. I

believe that if you would indicate your preliminary thinking on amortisation
it would also prove helpful.

Regarding my general reaction to your draft agreement, I like it in
principle but do not feel that I can say much at this time as so much depends
upon the interpretation of what classes of supplies are to be included under
articles 2 and 3. I concur that we should not be committed to supply, or the
Soviets be committed to accept munitions generally or food on the termination

of hostilities. I agree that in determining whether we want to continue to

ship these items we should have a free hand. On the other hand items such as

motor vehicles, tractors and railroad rolling stock should, I believe, come
under article 2, whereas certain industrial equipment, including railroad

equipment such as block signals, might be considered applicable to either
article 2 or article 3 depending upon their character, use and speed of delivery
and installation. I would appreciate having your views on raw materials but
at this time I have not given enough thought to this commodity to express an

opinion.

It is my feeling that your approach is bound to reach an agreement with
the Soviets as to the classification of each category of item between the
articles of the proposed agreement, as well as to provide that categories can
be added from time to time. It is assumed by me that in the case of industrial
equipment agreement would have to be reached on each item as to its classifi-

cation at the time it is up for final acceptance.

I am desirous of being as helpful as I can and therefore being kept
informed of developments in your thinking would be much appreciated by me.

HARRIMAN
DCR:MAS:EA

3-25-44

235

MAR 23 1944

Dear Mr. Adler:

I have read with interest your report
on China, dated February 22, 1944, which

you sent to Mr. White, and I wish to commond

you on its high quality.
Sincerely yours,
(Wigned) W. Morgenthau, Jr.

Secretary of the Treasury

Mr. Solomon Adler,

U. S. Treasury Representative,

American lambasay,

Chungking, China.

HDW/ISF/efs 3/22/44

236

CONFIDENTIAL

security reasons must the

BJR - 122

This telegram must be
paraphrased before being
communicated to anyone

other than a Governmental
agency. (scoo)

For text of this message
be

Dated March 23, 1944

Rec'd 3:40 p.m.

Secretary of State,
Washington.

DEPARTMENT OF STATE

2 1944

517, March 23, 1 p.m. (SECTION ONE)

NS

AND RECORDS

TO SECRETARY OF TREASURY FROM ADLER

One. Fully agree with the conclusions of Ambassa-

dor's cable of March 8. Re your 331, March 11. (All
sums in CN dollars unlego otherwise specified.

Two. Over all picture. Economic situation in
China while extremely unstable will not some apart
from undue strain from expension of American military
operations, collapse for some time as long as harvests

continue satisfactory. Growing disintegration of
military and political power of Central Government,
weakening of its war effort such as it is and of its
military potential, and spread of malpractices inevitable unless and until (A) China's isolation is
broken (B) internal reforms take place - a remote
contingency.

Three. Last years harvest slightly larger than
1942 though

237

-2- #517, March 23, 1 p.m. (SECTION ONE) from Chungking
via N.R.

1942 though there were again acute localized famines;

it is too early as yet to predict 1944 crops. Decline
in industrial production can be expected to continue.
Prices in 1943 more than trebled and note issue more

than doubled, i.e. rate of increase in both was only

slightly greater than in 1942. (Published and official
price data are becoming increasingly unreliable. Since
beginning of year, however, there has been a spectacu-

larly sharp rise in prices. Preliminary estimated
increase in average of retail prices in leading cities
(February level 300 times 1937) 18 about thirty percent
for first two months of year. Increase in Chungking

retail index for same period only 12 percent but this
obviously incorrect as even official opinion estimates
it at nearer sixty percent. In Kweilin same index shows
rise of over forty percent while Buck's wholesale and
cost of living indices for Chengtu show increases of
65 percent. Causes of this sharp spurt partly seasonal
partly impact of United States expenditures (as in
Chengtu, CF. my 392, February 29), increasing specula-

tion in commodities wide fluctuations in price of gold
and United States currency and of course cumulative long
run fact

238

-3- #517, March 23, 1 p.m. (SECTION ONE) from Chungking
via N.R.

run fact or of expanding note issue. Unfortunately
recent marked upward trend in prices still being maintained, seasonal pre-harvest factor likely to continue
and United States expenditures to increase for some months.

Four. Budgetary situation. 1943 expenditures were
about 48 billion and revenues under 20 billion (pre-

liminary). It should be noted that for first time
expansion of note issue of over 40 billion was sub-

stantially higher than official deficit of 30 billion
due to direct United States Army expenditures of over

two billion, probable existence of concealed deficits
and fact that Government banks used newly issued notes

to make loans for Government approved projects. This
year estimated expenditures are 80 billion and revenues

35 to 40 billion but actual expendituree will probably
be nearer 100 billion and actual revenues nearer 25

billion. Thus apart from concealed deficits and
Government bank loans note issue will double i,e.

increase by 75 billion in 1944, Given same rate of
increase as last year it will expand by nearly 90
billion. Above estimates do not (repeat not) allow
for heavy contemplated increase in expenditures by and
for United States Army during 1944.
GAUSS
HTM

239

CN-134

This telegram must be
paraphrased before being
communicated to anyone

other than a Government
agency. (SC00)

Secretary of State,

Chungking

Dated March 23, 1944

Rec'd 4:00 p.m.

DEPARTMENT OF STATE

Washington.

517, March 23, 1 p.m. (SECTION TWO)

1944

AND RECORDS

Impact of United States Army Expenditures.
One. Up to End of 1943 United States Army had

spent directly under two and one-fourth billion, while
according to Kung's message to YFC of January 24 Chinese

Government had spent five and three-fourths billion in
connection with our Army operations. SINCE then Army

has spent directly one half a billion yuans, Ministry
of Finance has advanced one billion a month for direct

Expenditures in February and March. In addition Jinistry
has spent one point four billion in January and February
for Chengtu projects, an unspecified but much smaller
amount for construction and maintenance Elsewhere and

for living costs of American Army in China, and has

allotted one point SEVEN billion for construction projects

in March. All in all under Eight billion were spent by
and for United States Army in 1943 and another six billion
since.

Two. While

240

-2- #517, March 23, 1 p.m., (SECTION TWO) from Chungking.

Two. Thile these expenditures undoubtedly con-

tributed to aggravating inovation, especially in areas
in which they were concentrated (Kunming, Kweilin and

Chengtu), they did not constitute an intolerable burden
on Chinese Economy, as is borne out by fact that 1943

rate of increase in prices and like issue was not perceptibly greater than in 1942. Total expenditures by
and for United States Army in 1943 constituted 20% of
expansion of note issue and less than one-fourth of

budgetary deficit. In Yunnan United States Army direct
Expenditures totaled one point four billion in 1943 and
three-fourths billion for January February 1944, and in
Kwangsi one billion and under one huncred million for
same periods. Mile no breakdown of Central Government

Expenditures in these areas is available, presumably a

substantial portion of its disbursements of three billion
in 1943 and three-fourths billion in January February
1944 in Yunnan and of one point one billion and three
hundred million in Kwangsi for same periods was incurred
in connection with United States Army operations.
Three. The immediate impact of these expenditures

in these areas was to push up prices, to intensify
speculation and hoarding in antitipation of further
United States Army expenditures and thus aggravate
price

241

-3- #517, March 23, 1 p.m., (SECTION TWO) from Chungking

price situation still further (this process inevitable
in absence of effective government Economic and political
controls given which problem would have been much more

tractable), to create acute shortages of (*) maintenance
of EVEN a few thousand American troops also taxes food

supply in areas where they are located owing to huge
discrepancy between war and normal Chinese living stand-

ards. Rate at which this impact is transmitted to other
cities and country as a whole is slow in China its
Economy is so loosely integrated. Data on differential
impact of Army Expenditures and speed of its transmission

inconclusive. Farmers Bank: retail index reveals inCREASES in Kweilin and Kunming of three and one-half
and OVER three times in 1943 as compared with somewhat

under three times in Chungking and Chengtu, cities where
United States Army expenditures were small in 1943; but

too much weight cannot be attached to this index.

Thurbucks Chengtu cost of living index just about
quadrupled in 1943, while 1944 rate of increase in
Chengtu prices under impact of heavy Army Expenditures

since beginning of year is only slightly greater than
in Chungking. Even in case of Kunming where prices

are highest in China it took the lead as far back as
1938.

Four, It

242

/517, March 23, 1 p.m., (SECTION TWO) from Chungking

Four. It is important to bear this qualification
in mind in view of noticeable tendency increasingly
prevalent in Chinese Government circles to lay responsi-

bility for inflation on our Army Expenditures in order
to: (a) strengthen their bargaining position with respect
to current financial negotiations (b) put themsElves
in a better position should they make another request

for a loan, (c) find a convenient alibi for a situation
which they have been very far from handling as well as

they could (d) make us morally responsible for extricating
them from the collapse if and when it COMES.
GAUSS
EDA

(#) Apparent omission.

If

243

Chungking via N.R.

FMH-3

This telegram must be
paraphrased before

being

other communicated than Government to anyone
a

agency. (SCOO)

Dated March 23, 1944

Rea'd 9:50 a.m.
DEPARTMENT OF STATE

DIVISION OF

Secretary of State,
Washington.

MAR 25 1044
COMMUNICATIONS

517, March 23, 1 p.m. (SECTION THREE)

One. But (repeat but) scale of Expenditures for
US Army now contemplated far greater than in WEST and
will moreover be superimposed on a more advanced

stage of inflation. Projected Expenditures for April
June 1944 are twelve billion not allowing for increase
in prices in interim and are much more likely to
EXCEED fiftEEn billion. Even with active sale of
gold and US currency, by far largest part of these
Expenditures will have to be met by expanding note
issue. Given continuance of present Chinese attitude

towards sale of gold and US currency, with the
implementation of US Army plans there will be an

increase in note issue of Eleven billion a month for
next three months (six billion for the "normal"
increase and five billion for our army). While Chinese
Economy may (repeat may) be able to stand this Extra

strain it is highly questionable whether WE should incur
the risk

244

-2-

#517, March 23, 1 p.m. (SECTION THREE) from
Chungking via N.R.

the risk of imposing it on her, unless army has

overriding strategic reasons for doing so. Subject
to this suggest figure it is desirable not to EXCEED
is three billion per month for next three months.
Two. Certainly Army should not make plans for

further construction projects entailing such heavy
Expenditures after June. I understand its present
plans call for a tapering down of Expenditures after
June; it is to be hoped these plans will not be
revised, as otherwise note issue fight increase by
anywhere between 120 to 150 billion in 1944.

Three. Note that:
(a) Chinese Government has avoided and will

probably continue to avoid suggesting limits to Army
Expenditures in China for reasons of diplomatic

prestige, in spite of fact that it has been asked
to do so.

(b) Army is already Experiencing difficulties
in letting contracts and spending money at speed it
would like and which is necessary for completion of its

projects on schedule, particularly in Chengtu. While
this limits expenditures in immediate short run, projects
cost more the longer they take to complete.
Four. China's economic situation such that it is
possible

245

-3-

#517, March 23, 1 p.m. (SECTION THREE) from
Chungking via N.R.

possible only to recommend palliative measures as
follows:

(a) Aggressive sale of gold and US currency to
mitigate to SOME extent however slight inflationary
Effects of Army expenditures. Unfortunately in spite
of his recent request for US ten million of gold and
US twenty million of US currency Kung is at present

apathetic to such sale (with continuance of his

present attitude it is impossible to clarify request
in your 314 of March 8) I suggest your considering
personally recommending to him more active sale of
gold and possibly US currency.

(b) Shipment by air from India of token amounts
of commercial goods to China.

(c) Improvement in US Army's methods of contracting

and purchasing. There is sufficient EvidEncE that contracting and purchasing is often left to inexperienced
younger officers who SEEM to pay little attention
either to cost or to normal Chinese commercial practice,
which makes them easy victims of unscrupulous businessmen.
This both increases burden on US taxpayers and adds

to inflation in China. Civilians here carry little
weight with Army and pointing out to them that they
could Employ missionaries Experienced in contracting

in interior

246

-4-

#517, March 23, 1 p.m. (SECTION THREE) from
Chungking via N.R.

in interior China and reliable Chinese has had little
Effect.

Five. Letter by pouch month ago contains further
information on Army Expenditures and possible sale of
gold and US currency.
(END OF MESSAGE)
GAUSS
WFS

SECRETARY OF

NOT TO BE RE-TRANSMITTED

1944 MAR 24 PM 2 05
DEPARTMENT

TREASUY

NO.

11

SECRET

OPTEL No. 95

Information received up to 10 a.m., 23rd March,

1944

1. NAVAL

On 21st/22nd Dover coastal batteries possibly

obtained L hits on convoy from BOULOGNF to CALAIS.

EAST INDIES. One of H.M. Submarines is overdue

from patrol and considered lost.
MILITARY

ITALY. 22nd. North of CASSINO French troops

beat off two strong attacks. In the town little progress

made in hard house to house fighting. An attack by our
Infantry supported by tanks against a strongly defended house
failed
RUSSIA. Further Russian progress west and southwest of KREMENETS and in DNIESTER bridgehead south of MOGILEVPODOLSKI. On Lower BUG they captured PERVOMAISK and are

along river between that town and VOZNESENSK.

BURMA. Japanese are continuing to develop their

offensive across CHINDWIN
3. AIR OPERATIONS

WESTERN FRONT. 22nd. Total 639 escorted Fortresses and Liberators dropped 1,277 tons on BERLIN blind. 13

Liberators 12 fighters missing.
22nd/23rd 1,077 aircraft despatched
FRANKFURT

BERLIN and HANOVER
DORTHUND and OBERHAUSSFN

Airfields in HOLLAND
Intruders
Sea-mining

Leaflets

816

18 Mosquitoes
&

20

18 (1 missing)
146
25

Proliminary report FRANKPURT - weather fairly clear and concen-

crated attack developed. Large fires started. 33 boobers

missing. 20 German aircraft flew over Southeast ENGLAND 4
reaching LONDON. One-destroyed by night fighter.
ITALY. 20th. Mitchells dropped 45 tons at SAN

STEFANO Harbour

21st. Marauders dropped 76 tons at bridges
near AREZZO Hits reported o n railway viaduct west of
town and on northern approaches at BUCINI.

YUGOSLAVIA. 21st. 64 fighters attacked coartal
shipping destroying a Siebel Forry and 3 schooners and

damaging other craft.

248

March 24, 1944
9:30 a.m.
GROUP

Present: Mr. Bell

Mr. Gaston
Mr. Smith

Mr. Sullivan

Mr. Thompson

Mr. White

Mr. Haas

Mr. O'Connell
Mrs. Klotz

H.M.JR: I have nothing special, except that I was
very much interested in that bill that you sent me from
Congressman Gale. I think it is very interesting. Do
you want to explain it to the group?
MR. O'CONNELL: Well, the way this came up is, the
Secretary wondered whether there was authority under

existing law to provide prizes as an incentive to hold

bonds if you had them, or an incentive to purchase bonds
if you haven't them, and George Haas asked us to look into

it

It was pretty clearly unauthorized or illegal, because
of the definite provisions of the Federal Anti-Lottery
Statute. Any scheme or device that involves the offering
of prizes is dependent wholly or in part on lottery chance.
Any of these things would do that. Such schemes may not
be used in the mail or on the radio, and there is no
exemption for the Government.

But at any rate, we pointed out that Congressman

Gale, a Republican out in Minnesota, introduced a bill
back in December, which I think, talking it over with
Henry Murphy, permits exactly the sort of thing which
the Secretary was thinking of. The theory is that the

249

-2Secretary would be authorized to pay premiums to individuals who purchase or who hold series E bonds. It

is a very simple statute, and I think it is quite adequate
to do the trick.
This is essentially the sort of thing that Henry

Murphy has been talking to me about. I don't know
whether Henry told you, but there is a little coincidence
involved in this. He assures me it is pure coincidence, but
Congressman Gale is a friend of Henry Murphy's wife.
MR. GASTON: What is the coincidence?
MR. O'CONNELL: Just that.

MR. WHITE: Henry Murphy and I are the only ones

in the Treasury who always favored the use of lottery
bonds.

MR. HAAS: Another one is Joe Stalin.
MR. WHITE: The three of us; that is good company!

And doesn't this trouble you, Mr. Secretary, this immorality,
or have you changed?

H.M.JR: Oh, Harry!

MR. WHITE: I have taken a lot of ribbing on this.
I am getting back.

H.M.JR: Who is getting a lot of ribbing?
MR. WHITE: I say I have taken a lot of ribbing
from the staff on this the last year.
H.M.JR: Well, I am trying to keep up with the times.
MR. WHITE: Oh, that is the essence of progress.
MR. BELL: You ought to suggest that Gamble take
over the slot machine business. (Laughter)

H.M.JR: I will t ell you something, gentlemen, I
am getting a little more serious about this thing, see?

250

3-

Now, Sweden has done it. I didn't know that you
were in on this.
MR. WHITE: I wasn't.
H.M.JR: You and Mr. Murphy.

MR. WHITE: Iwasn't. I was last year.
There may be another link -- I am serious now-- which
may interest you. There has been a man around town who

is from some foreign country--I don't know whether it
is Austria, Hungary, or Germany who was in charge of
the lottery arrangements, and who knows a very great

deal about it. He has been around to the Treasury at
least a dozen times, and on the Hill, and he said he
has talked with many Congressmen who are favorable.

It may well be that Gale and that fellow got together.

MR. O'CONNELL: Well, of course, I was joking about
Henry Murphy. He has never seen Mr. Gale. He mentioned
that his wife comes from the same part of Minnesota that
Congressman Gale does. He assures me that he did not

inspire the legislation, but this le gislation, which is

quite simple, would permit exactly the sort of thing that

Henry has been talking about, and you talked with him
about last week.

H.M.JR: How much are the redemptions?

MR. BELL: They run about two hundred and fifty

million dollars this month. It will be the highest
month we have had.

MR. O'CONNELL: That is because of March 15, of
course.

MR. GASTON: And the Fourth Mar Loan Drive.

H.M.JR: Would there be any way of sort of polling
the Ways and Means Committee on this bill?

MR. SULLIVAN: Sure, but it will be in the paper
the minute you do it.

251
4

MR. WHITE: I would very much like to see the
specific plan that you have in mind, Mr. Secretary.

I don mean the bill; I mean the plan, because it

makes a great deal of difference what the particular

plan is, how feasible it is, and so forth, before I
think you ought to poll the bill. I think you ought to

in your own mind have a plan that you think is workable

and that you are for, because you may find upon examina-

tion that the only kind of plan that is feasible is one
that you may not be as enthusiastic about.

MR. SULLIVAN: The minute you ask any Member of that

Committee about it, they are going to say, What does
the Secretary want?"

H.M.JR: The plan as I understand it--Henry Murphy

isn't here, but as I understand it, they give prizes to

people who own E bonds. They do it by drawing numbers.
And they keep drawing the numbers so that if you have
redeemed your bond and two years later your bond has been

drawn, it makes you feel terrible. It is a question of
distributing so much money. It is like a bonus, extra

interest to the holders of these E bonds. The incentive
is the gambling instinct of the people, that they are
going to get a prize if they hold on.
MR. SULLIVAN: Then you would be prepared to let

people draw for bonds, too. Once you adopt that, you
would probably go the rest of the way.
H.M.JR: Which is what?

MR. SULLIVAN: Well, they will run lotteries, and

everybody will put in a hundred dollars and somebody will
get a hundred thousand dollar bond.

H.M.JR: This bill says that you get your prizes

in bonds.

MR. HAAS: Harry arranged for me to talk to this

Russian. Their financing is quite interesting. They

issue two bonds; both are twenty-year bonds. One of
them bears interest semi-annually at four percent; the
other bond bears no interest, but they have drawings,

252

-5and the prizes are equivalent to four percent. On the
hundred-ruble bond you can get a prize up to five
thousand rubles. In other words, the hundred dollars
is included in that. You get back five thousand. They

have drawings four times a year, so on each bond you have

eighty drawings you can participate in. You get eighty

chances in the drawing. He said most of these people
buy these bonds rather than the other.

H.M.JR: That is what I explained to you.
MR. HAAS: Most of them buy these, and you will be

interested in this: Their whole system is absolutely

voluntary. They don't even do as much as we do. I
couldn't even get a suggestion. That is what he said,
anyway.

H.M.JR: The other fellow I spoke to about it two
years ago said, "Well, somebody tells the plant superintendent what the plant quota is, and it spreads through
the plant what is expected of each man to make up the
plant quota. "

MR. HAAS: That is as far as he would go, but no
coercion or anything.

H.M.JR: You have an ally here on this thing.

MRS. KLOTZ: I think it is wonderful.
MR. WHITE: I think, Mr. Secretary, before you push
the plan in Congress--there is enough difference of

opinion within your own staff that if you agree on the
principle-- am not questioning that--but I mean on the
particular method and the particular devices so that I
think you ought to ask for a plan which is worked out

in sufficient detail and listen to the various views of
the staff until you are satisfied it is the best plan of
that scheme. Then I think that is the time to go to
Congress if you want to.

H.M.JR: Well, they have a plan.

253

-6MR. BELL: There are two or three plans around there
that we worked on two or three years ago.
MR. HAAS: Being an economist, I would rather wait
until after November!
H.M.JR: We have telegraphed to Sweden to get more

details about their plan. But the important thing is,

what would happen to us publicly?

MR. SMITH: I don't think the Treasury ought to do

it. I think if you got the plan all wrapped up and

everything, you could call over George and somebody and

give the whole ball of wax to him and let him carry it.
You keep out of it; that is, keep the Treasury out of
it.

H.M.JR: All right, let's say that George and Doughton

will do it. Let's just say it. Then they ask me about it.
MR. BELL: If you are going to do it, don't have

somebody else carry the ball.

MR. WHITE: I personally don't agree with that at

all. I think the whole notion that the thing is immoral
can't even stand the most elementary kind of logic.

MR. SMITH: It isn't a question of logic, but one of
publicity. I would like to be on the other side of the
fence if the U. S. Treasury started lotteries.
MR. WHITE: I wouldn't mind, so long as I was on
the other side.

MR. SMITH: You could make a lot out of it. Look
at all the doors you are opening to crooked lotteries,

and so forth. I am no stickler for the dignity of the

U. S Treasury, but I think it is something the Treasury
ought to lay off of and let somebody else do it. Then
if they come to you, which they no doubt will, you can
say, "If Congress wants to put the bill through, I will
go along with it."

254

7-

MR. WHITE: You imply that it is a blow at the
dignity. I don't accept that for one moment.
MR. SMITH: If this were 1945 and we had three years
to live it down, that would be something else again.

MR. BELL: I think we have had a pretty good policy,

and I am in favor of sticking to it.

MR. GASTON: So am I. I think this is a pretty big
camel; it has lots of humps.
MR. O'CONNELL: I think this is a wonderful idea.
The only difficulty I would have with it is, the one
thing you can't do immediately is to sell it as a way
of getting more money for the Treasury at less cost. If

we didn't have the thirty or forty billion dollars outstanding--and as to those, I take it you would have to

pay what amounts to additional interest on them, because

I take it you want to give the people who have outstanding
bonds the incentive to hold them. In addition, you want
an incentive to purchase and hold.

My first impression, I think, is, you could sell more
bonds at less rate of interest to the holders of E bonds.

MR. SMITH: If it is a question of the specific type
of plan, with the effect on interest rates and effect on
costs, that is one important discussion which we would

all be glad to get into. But I thought the issue at the

moment is not that at all, but whether or not the Treasury
should undertake any kind of financing which involves a
lottery feature.

Lotteries are just plain illegal, and you would be
raising an awful fuss if you made lotteries, as such,

legal. I don't see how a lottery can be legal for the

Treasury and illegal for anybody else. I swear somebody
with a pile of money--this Walter Howey out at the Chicago
newspaper out here has been trying to get lotteries for
God knows how long. He is going right up to the Supreme

Court. You will have a fuss.

255

-8. MR. O'CONNELL: If you have legislation authorizing

a lottery, you won't. The only thing stopping us is
the Federal Anti-Lottery Statute. As a matter of fact,
the United States authorized a lottery for the District
of Columbia for the purpose of raising money a hundred

years ago. States have done it, foreign countries have
done it, agencies in this country have done it.
H.M.JR: It was done in Louisiana.
MR. WHITE: The fact that the Federal Government does
something doesn't mean you have to give the same privilege

to corporations or individuals who are not the Federal
Government. The only time that that point is cogent is
if you apply certain moral connotations to it, and that

is the very issue I'd like to raise and discuss. Once

you say there is no question of morality involved, then
the Federal Government can do it.

MR. SULLIVAN: Who says there is any question of

morality?

MR. WHITE: I can put you at the top of the list,
John, judging from last year.
MR. SULLIVAN: Why?

MR. WHITE: You felt that it was immoral - you told
me so.

MR. BELL: He still feels that way.
MR. WHITE: I thought he questions it now.

H.M. JR: I am like Harry White - I don't know
whether I can get in on this discussion!
MR. WHITE: I am doing my best to keep you out!
I

H.M.JR: But just let me say this a minute, Mr. Smith.
was surprised that you didn't raise the question of

morality when you let me go out on the end of a limb on

this question of Prohibition, and you didn't raise the

256

-9question about the WCTU and all those people and the

morality of liquor. You didn't raise it then. An awful
lot of people, you know, think it is immoral to take a
drink.

MR. SMITH: But that is an entirely different kind
of morality. My morals are hinged entirely to the daily

newspaper, and the daily newspaper will be all with you
on that moral question, and the daily newspaper will be
against you and whipping up a great deal of criticism
against you on this lottery scheme, and I don't know what
you have to gain. Maybe you could sell more bonds. Maybe
some people would hold on to bonds who aren't holding on
to them now. I don't know. But you have to gamble on

that side, and "I ain't got no gamble."

H.M.JR: I don't know which side Gamble would be on!

MR. SMITH: You have no gamble on the side of criticism. On the liquor thing you have a gamble with the
WCTU. That all belongs to Mr. Hoover, anyway. And you
have a gamble on what you are going to get out of it,
which is taxes and maybe prevention of prohibition.
You have a greater moral issue with you than you have
against you.

H.M.JR: Ask Mrs. Forbush how my mail is.

MR. SMITH: Yes. You have one letter that I got;

it was forwarded down to me from somebody in Connecticut,

pointing out that they spent six billion dollars for

liquor last year, which would be so many hundred thousands
of twenty-five dollar bonds apiece, and "Ain't you ashamed?

H.M.JR: I have one at the house; that is all.
MR. SMITH: I wouldn't worry about it, because there

will be organized mail, and you will get quite a lot of

it, but it will all stem from an organization.

H.M.JR: Let's go along, George. Let's get some of
these plans down in black and white, anyway, see? Let's

take a look at it.

257

- 10 MR. BELL: There have been several bills introduced.
MR. GASTON: Guffey had a bill.

H.M.JR: If it is going to be a question of votes,

the newspapers, and so forth, and so on--

MR. BELL: You have Mrs. Patterson behind you.
H.M.JR: You would have the whole Hearst Press behind
you, all of the McCormick-Patterson Press.

MR. BELL: That will be quite an achievement.
MR. O'CONNELL: I can't see how you would gain any

votes, but it seems to me from what I have heard about

it and the way I have been feeling about it, that that
feature would be terribly attractive to an awful lot of
people to buy and hold bonds. I know an awful lot of
people who would buy a bond and hold it a lot longer at
a much lower rate of interest, because it isn't so important
to them. They would buy just as many or more at one
and a half.

MR. WHITE: I would like to see the man to whom the
lottery does not appeal.

MR. SULLIVAN: Harry, with all your wartime philosophy, you spent two years trying to convince the people of
America that there isn't any easy answer, they have to
stop spending their money and save it. Now you come out
with a device and say you won't have to put in a hundred

dollars every month. If you are lucky you can put in

twenty-five and you will get twenty times as much out.
MR. BELL: Teach them to gamble instead of save.
MR. GASTON: It might be serious on the national

credit; it is a confession of weakness. Are our finances

about on a Mexican basis?

MR. BELL: This foreign country did it, and that
did it, and about ninety-nine percent of them are broke.

258

- 11 -

H.M.JR: I am not too serious about doing it before

election.

MR. WHITE: The only cogent argument is the one that

Fred is raising, about the fact that you can't gain many
votes, certainly, because the people who would love it
won't be affected in voting one way or the other, but
you might lose votes, because unquestionably it would
become a subject of organized attack. I can name a
number of powerful organizations that would probably

include it in their opposition.

H.M.JR: Go far enough to study the thing, see.

Like all of these things, it is how long the war is going
to last, and how long Mr. Roosevelt is going to be here.

But I think it is worth studying the thing, anyway. I

think it is fraught with political difficulties. I think
they would immediately attack us, that we are tottering,
and all that sort of thing. So let's confine it to this
room, anyway for the time being.

MR. SULLIVAN: I think that is very important. If
it ever got out that we were studying it, the political
effect might be almost as bad.

H.M.JR: They have been studying it here for two
years.

MR. SULLIVAN: I say if it ever got out.
H.M.JR: That is one of the things I wanted to

talk about. I mean, there have been a few leaks now and

then. I have nothing to put my finger on, nothing special.

I think as we get towards election we should be more and
more careful whom we talk to.
Then we are every once in a while developing a new

technique here and we would like to put a story out. So
if any of you have any particular friends amongst the
press that you know fairly well, you could let Smith know
just in case he has something he wants to put out to
some columnist or somebody, see. I know Charley Bell

knows several people.

259

- 12 -

MR. THOMPSON: George Riley garbles everything

so, but at any rate, we do give Riley and Jerry Kluttz

little items. Jerry Kluttz isn't bad.
H.M. JR: He is local.

I

But anyway, we will all have to be careful, and
include myself. Take this thing here the other day.

We decided that Paul wouldn't make a speech. The next
day it was in the paper, in the Washington Daily News.
The decision was made in here, as I remember it.

MR. BELL: That is right, it was made right here.
H.M.JR: The next day the Washington Daily News
had it.

Well, who has anything less interesting or more

interesting than prizes for war bonds. I will tell

you one thing, I am going to try to have the last word-this depression about taxes, this depression among the

people--it would certainly lift that. I really believe
that.

MR. WHITE: I think it is the greatest morale builder
it is possible to have.
MR. GASTON: I don't know about this depression
after paying taxes.

H.M.JR: I have had a couple of personal instances.

260

- 13 -

MR. SULLIVAN: Maybe, but the ordinary rank and

file took it better this year than last year.
H.M.JR: Well, anyway--

MR. WHITE: Anyway, see, we had fun last year.
MR. SULLIVAN: No fooling, I have been very agreeably surprised.

H.M.JR: I went home the other night in a car, and
I passed a fellow who said, "Morgenthau, I gave you two
hundred and forty dollars.
MR. SULLIVAN: Sure, and he is darn proud of it.
MRS. KLOTZ: He is, and April is coming, too.
MR. SULLIVAN: You bet your life, quickly.
MR. THOMPSON: I have nothing.

MR. BELL: I just want to tell you that we have
established two hundred and thirty-five banking facilities at Army and Navy posts throughout the country.

Fifty of those are in California, and the Bank of America

has thirty of them. We just had to give it to them.

There were no other banks available. We have established
three at Boeing plants.

261

- 14 -

H.M.JR: There is a story in that for you, what we

do to help the boys. You (Smith) can throw a bouquet
to the banks, too.
MR. SMITH: Yes, sir.

MR. BELL: We have tried to stay out of this private
plant business, but they are coming at us more and more

now, and I think it is up to the banks to do that and

not up to us. I think we can get into a lot of trouble.

We had quite a time in Wichita, Kansas, because there
are about seven or eight banks there that could have
done the job, only one bank had most of the business.
But the other banks wouldn't agree for about two months

to let the other bank do it.

We tried to get the Banking Commissioner to get
into it and see if he couldn't work out an arrangement
whereby all the banks would go together and establish

this facility.

Well, he just couldn't get into it at all because

it was a hot potato. Finally we got the Chairman of

the Clearinghouse Association just to work on the banks,
and finally the one bank that held out so long agreed
that the bank that was doing most of the business should

do it. We got it straightened out.
But that is the kind of situation we are going to
get into, and we are not going to get them settled. I

think, politically, it is bad.
H.M.JR: At the plants?

MR. BELL: Yes, we have three of them. Of course,
when you once establish them, they like them. They want
them all over the country. Now Boeing has three, Con-

solidated are after us now to establish one in California, and the Bank of America is the logical institution.
H.M.JR: Does it help the man - save time?

262

- 15 MR. BELL: Sure. They say their absenteeism and

everything is cut down. But it is not a Treasury function.

H.M.JR: Why not make it a Treasury function?

MR. BELL: They want us to, but I say it is fraught
with a lot of danger.
H.M.JR: Well look, Dan, you and I went through
that thing when we talked about getting issuing agents
in department stores and drug stores.

MR. BELL: No, this is different.
H.M.JR: You were hesitant.

MR. BELL: I have gone along on the post facilities
because that is strictly a governmental function. I

think it is up to us to provide facilities at the posts.
Many of the posts are miles from town. One or two that
are in villages that haven't got sufficient banking
facilities in the town, even. That is up to us. But

where you have a private commercial plant with thousands
of employees, maybe, working on Government contracts--

H.M.JR: If I understand it, we get the banks to

do it.

MR. BELL: Yes, but we designate them as a Government depositary and give them the two percent bond to
help them pay expenses. It is an out-of-pocket expense.

H.M.JR: I went to the CurtissWright plant at
Cincinnati, thirty miles out of town - I forget how
many people they have - twenty-five or thirty-five
thousand people working. Take Willow Run, fifty miles
out of Detroit-MR. BELL: That is a pretty good town.

263

- 16 H.M.JR: Not where Willow Run is. Nobody lives
there. I mean, the people who work there don't live
there; they come in from around.

MR. WHITE: Couldn't it be done and limited to the
war, Dan?

MR. BELL: That is what we .are doing. Everywhere

we are establishing one of these things we say it is
for the duration of the war and maybe six months after.
We have promised all of the people who kicked we have had a lot who have kicked--

H.M.JR: Why not say this, that the Army and Navy
have just designated eight strategic service groups
which they are going to exempt, radar, radio, certain
kinds of yarns they need-MR. SMITH: Rayon.

H.M.JR: Yes - PT boats, landing craft, airplanes,
why not confine it to that? Say that those things which
are so important, we will help on that.
MR. BELL: I think for the moment you probably

can confine it to the airplanes, just for the moment.

It is the only thing that is hitting us. Plus Bard, who

is on my neck to establish banking facilities down
here in the Navy building.

H.M.JR: Let's be frank among ourselves. We put

up a fight to get the Alien Property in the Treasury.

We did - a couple of years ago. We say we want this and
that. But here is something knocking at our door that

nobody else wants to do, and it is a real service.
MR. BELL: There isn't any question about the service.

It is important.
MR. GASTON: Is it general banking service that
they furnish?

264

- 17 MR. BELL: Yes, in Wichita, Kansas, for instance,
these people are out about ten miles and they have

built a little village right around this plant. People
live there.

H.M.JR: It amounts to our making them a depositary and giving them the two percent bond.
MR. BELL: And part of that money that they get
from that two percent bond is to offset their expenses.

H.M.JR: I ask you to reconsider. You have them
nocking at your door, and Bard knocking at your door

where they have six thousand people.

I think there is less reason here in Washington.

MR. BELL: I think it is dangerous here.

H.M.JR: But certainly this airplane-MR. BELL: I have established three in Boeing plant
sort of under pressure. Now I have Consolidated on my
neck. I haven't turned any of them down, but I want
you to know that we are getting into something that some
of these days you will get a lot of letters from banks about.

H.M.JR: I urge you to do it. I can take that.
MR. BELL: I don't want to do it in Washington, because I have set up one at the Navy Yard. That is
essential because those people are confined to the area
during their entire working hours.
H.M.JR: Is that where they make the guns?

MR. BELL: Yes, and repair the ships. Bard wants
one in the Munitions Building. WPB will want one in the

Social Security Building. It is a question of what bank
is going to get it. You are taking business away from
banks here in town.

265

- 18 -

H.M.JR: No, no, but will you?

MR. BELL: Sure, I will go along. I want you to
know what we are getting into.

H.M.JR: I am for it. I think it is good.
MR. BELL: we will hold it down as much as we can.
We have issued about four hundred million of those
two percent bonds, of which eighty-eight million were
issued to banks designated to handle withholding taxes.
And those banks that were designated to handle the with-

holding taxes put up eighty million dollars of their

own money to buy the bonds. We didn't have to put any

money out to buy the bonds.

Out of four hundred and seventeen, about fifty
percent in our money and not bank money.

H.M.JR: How about the airplane?

MR. BELL: I don't think over a couple of million
dollars in those three places.

MR. SMITH: Justify it on the basis of inflation;
taking people's money away from them and making it a

little harder to spend.

MR. WHITE: Sure, it is difficult for people to go
to banks during the day time. They wait in line at
these banks.

MR. SULLIVAN: They cash checks there, too!

Mil. BELL: I would feel a lot happier about it if

the banks would take it on as part of their own function
and not part of the Treasury.
MR. 0' CONNELL: One of the difficulties, you have
to ultimately determine the bank.

266

- 19 -

MR. BELL: That is the hard job. That is where
we get in trouble.

H.M.JR: Let me pick it. I won't be here too long.

You can blame it on me.

MR. O'CONNELL: You have a lottery.

MR. WHITE: Pick the banks by lottery.
MR. BELL: You will be interested to know we are

establishing banking facilities - I don't know - way
out on the end of those islands in Alaska.
H.M.JR: Really?
MR. BELL: About twelve hundred miles from Anchorage.

Peculiar thing about it, we had to pick an Anchorage bank
and they weren't insured under the FDIC, so we got
the representative to come to Seattle and asked him
if he wouldn't make application for FDIC insurance.
He said he would. We told him we would like to give

his bank the job, but they just can't handle it -

"So we would like to work through your correspondent

in Seattle" - see?

What the Navy does is go straight across from
Seattle. So we got the correspondent bank in Seattle
to do the job and give the Anchorage bank the credit

in the designation. That is working it out.

H.M.. JR: What has the Anchorage bank got in
deposits?

MR. BELL: Very small bank - no personnel. Only
three or four people in the bank.
H.MJR: Are your ears open?
MR. SMITH: Wide open.

H.M.JR: I think that is good stuff and I congratulate you.

267

- 20 MR. BELL: I think the boys have done a pretty good
job. It has been handled by Rabon and Batchelder. They
have gotten the banks into a room and talked to them.
They have really come through.
MR. SMITH: Are they back here now?

MR. BELL: Yes, Rabon, I think, is leaving for the
New England States today, but they are in town.
H.M.JR: Harry?

MR. WHITE: I have several things that should be

taken up this morning. The first is this cable to
Churchill. We have got the final draft on it, including

a sentence I don't think should be in. (Hands Secretary
draft of cable to Churchill concerning Lend-Lease)

H.M.JR: Let's settle it right no
MR. WHITE: The sentence which I have underlined

is the sentence which has been added by State, chiefly,
and FEA.

H.M.JR: No, it is the other way around. What I
said was that I reserved the right to bring this matter
up.

MR. WHITE: I think it would be a grave error to
include that in the cable.

H.M.JR: Will you tell them I am against it and I

want the blankety-blank cable to go?

MR. WHITE: That is all I need, I think.
H.M.JR: You tell them I want the damned thing to go.

That will hold you for awhile?
MR. WHITE: Yes. That is the most urgent. These
other things can wait a day or two.

268

- 21 -

H.M.JR: All right, let's see how we run. If I

have any time between now and ten-thirty, Harry, you
can have it.
MR. HAAS: I haven't anything.
MR. SULLIVAN: April 12 they would like you in
Baltimore with the representatives of the Army Service
Command. General Somervell is going over. I think it
would be a very good thing for you to do. They are
being brought in from all over this country and Alaska.

These are the men who are running your War Bond campaigns.

H.M.JR: It is so near! If you said, "Would you
like to go to Alaska?" - three cheers. But just to
Baltimore - what the heck!

MR. SULLIVAN: Maybe you can ride home with one

of these fellows.

H.M.JR: There is nothing in it to Baltimore.
MR. SULLIVAN: I really think you should go over,
Mr. Secretary.

H.M.JR: Morning, afternoon, or evening?
MR. SULLIVAN: I think they can make it any time
you want it.

H.M.JR: I tell you, Mrs. Klotz, we will put it

down for the evening and we will talk to Mr. Sullivan don't say anything, see?

MR. SULLIVAN: All right.

H.M.JR: We will set it on the 10th, but I will
hold the evening of the 12th open.

MR. SULLIVAN: All right. In the meantime I can

find out whether the evening would be agreeable?

269

- 22 H.M.JR: Yes, maybe they would prefer the afternoon.
MR. SULLIVAN: They might. I think some are going

over in the afternoon. It would be nice if you went
together.

H.M.JR: Could be.

MR. SULLIVAN: I think it would be helpful for all

these people who are running the drives in their own

Service Commands to have a picture of you and Somervell
and go back home, and the Commanding Officer would

realize this is a pretty serious proposition.

H.M.JR: All right, sir. You find out. Unless

something serious comes up, I will go - afternoon or
evening. Yes, sir.
Smith, you go along.

MR. SMITH: Yes, sir.
MR. SULLIVAN: Last week I spoke to you about Nunan's
recommendation of George Schoeneman as Assistant Commis-

sioner. You asked me.

H.M.JR: Let's settle it now. I don't know him.
Anybody think it is good or bad?
MR. GASTON: who will take George's place?

MR. BELL: That is more important.
H.M.JR: Who is George?
MR. BELL: George Schoeneman. He is the Deputy

Commissioner.

H.M.JR: Is he a Democrat?
MR. BELL: He has been in the Government service

for thirty-eight years.

270

- 23 -

H.M.JR: Well, this is a Presidential appointment,

isn't it?

MR. SULLIVAN: That is right.
MR. BELL: Why does he want it, John - or does he

want it?

MR. SULLIVAN: I don't know.
H.M.JR: Why shouldn't he be a Democrat?
MR. SULLIVAN: How about Harold Graves? He is

the other assistant.

H.M.JR: I understand that Harold is for Roosevelt.
MR. SULLIVAN: Oh, I think George is, too.

H.M.JR: For a fourth term?
MR. GASTON: Naturally, he would be, if he wants

to hold this job.

MR. SULLIVAN: Let me talk with these fellows

and I will talk it over with you later.

MR. THOMPSON: I would be surprised if George was

interested in that job.

MR. BELL: Yes, that would surprise me.
MR. THOMPSON: He is perfect in his present job.
MR. GASTON: He runs that Accounts and Collections

Unit. He controls the Collectors Offices.

H.M.JR: Mr. Sullivan, all I can say is, as a good
politician, you haven't done your groundwork very well
around here.

MR. SULLIVAN: This isn't my groundwork.

271

- 24 -

H.M.JR: Isn't it?
MR. SULLIVAN: No, I was given a memorandum by

Mr. Nunan. That is the first I knew about it.
H.M.JR: Oh, you are not shoving this?
MR. BELL: Nunan is shoving it.

MR. SULLIVAN: I told you that I would talk with
these fellows and I haven't had a chance to do it.
That is why I suggest-H.M.JR: Which of you is so busy?

MR. SILLIVAN: All of us are busy. By the way,
when are you going to New York and see that of fice up
there?

H.M.JR: Is it worth seeing?

MR. SULLIVAN: I think it is. I think Campbell

has done a remarkable job. None of the help is trained.
He had to run a comptometer school. He was up to
seventeen hundred and eighty-three employees Friday
morning. He has to have twenty-four hundred. They had

no filing cabinets; they had none of these little filing
racks in which they put the slips alphabetically. He
spent the first week with hammer and saw, teaching a
crew how to make the racks and filing cabinets.

I think he is doing a remarkably good job.
H.M.JR: who is this?
MR. SULLIVAN: Ernest Campbell. They had over

one hundred and forty million certificates, 1125's and
W-2's in there.
They had over eight thousand tax returns on which a

refund would be due. I think, so far as the public is
concerned, it is one of the most important operations
of the bureau.

272

- 25 MR. WHITE: Why doesn't Smith go, then?

MR. SMITH: We have got a whole picture story being
sent out by Acme, Dr. White! I have been there.

MR. SULLIVAN: I would like to see a couple of

pictures of the Secretary in that.

MR. SMITH: We wanted to take movies but they

wouldn't let us.

MR. BELL: If you want to see an office, see the

Chicago office.

MR. SULLIVAN: I understand that. People are just
as interested in getting refunds as they are in getting

bonds redeemed.

MR. BELL: No furniture up there? What is the
matter? You are in charge of Procurement.
MR. SULLIVAN: You just can't get these cases.

They have to file all their forms on the first floor. The

building won't stand the weight.

H.M.JR: I am sorry I can't make you smile.
MR. SULLIVAN: No, I am serious about that. It
is a good job.
H.M.JR: Trying to promote me - wants to put me

before the Generals, now the refunds! O.K., I like it.
I will cooperate.
MR. SULLIVAN: I told Campbell I was going to
recommend you come up. He said, "My God, I am afraid
we are going to get too much publicity. You know we
are going to make some mistakes around here."

H.M.JR: All right, if somebody takes an interest
in me, I will meet them half way.

273

- 26 MR. WHITE: Would you like your picture taken with
some gold that is being shipped out of the country?
H.M.JR: I don't know whether I am as good a shot
as I should be!
MR. BELL: They brought the gold up from Fort Knox

and one day attached a carload of gold behind this fast
passenger train, and the Army came right along behind

it and attached a carload of munitions.

MR. SULLIVAN: Oh, boy, there is a story, Fred.

MR. SMITH: I have got this overseas exhibit, you
know, across the hall.
H.M.JR: I know. You certainly have a good salesman in front of you. He has been trying to get me to go.
MR. SMITH: Fitz?

H.M.JR: Yes, Fitz.
MR. GASTON: You might like to know that Mr. Anslinger and

Mr. Shamhart are going to make a trip to Mexico to do
some negotiation about destruction of opium poppies in
Mexico.

H.M.JR: That is a good time of year to go.
MR. GASTON: We pay those fellows a little money.
With the Mexican Government's enthusiastic consent, we
pay their enforcement people to go out and destroy
poppies.

H.M.JR: What else, Herbert?
MR. GASTON: I have nothing else.

H.M.JR: All right. Is anyone going to prepare

me before this luncheon?

274

- 27 MR. BELL: I was going to ask you if you wanted a

little session.

H.M.JR: Well, this thing with General Lewis can't

last more than fifteen minutes. I won't let it last

more than that. Would you be ready at eleven-thirty?
fine.

MR. BELL: We are ready now. Eleven-thirty is

H.M.JR: All right, I want Smith to sit in on this.
MR. WHITE: When I was up to see the Ambassador to
give him your message on the money, he was interested in

the possibility - he suggested their printing their own.

We had some discussion and when I got through he said he

didn't fully understand it and would I explain it sometime in the future. I said we would be glad to. He
called yesterday and said he would be glad to have me

come up to lunch today. Is that all right?
H.M.JR: Yes, sir.

Is that all?
You can stay, Harry, to clean up what you have.

275

Treasury Department

Division of Monetary Research
Date
To:

March 24, 1944
19

Secretary Morgenthau

I have just obtained oral approval of the
cable, in the form you wanted, from Rostow of
State and Cox of FEA, who are presumed to represent

their respective departments. We can send it over

to the President in this form if you like, as Rostow
approves. However, if you feel you want the initials
of the principals, please initial the appended
cable. We will then send it over for Mr. Crowley's

initials and Mr. Hull's initials.

MR. WHITE

Branch 2058 - Room 208

THE SECRETARY OF THE TREASURY
WASHINGTON

ANDUM TO THE PRESIDENT

In pursuance of your memorandum of March 10

to the Secretary of State and Secretary of Treasury,
there is attached a suggested cable to be sent to
the Prime Minister in reply to his cables 613 and
614 of March 9.

This suggested reply has been approved by

Secretary Hull and Mr. Crowley.

277

Prime Minister Churchill
The President

Thank you for your reply contained in your cables
614 of March 9. The points you raised have already
brought to my attention several times by Secretary
zenthau and Secretary Hull.

I am sorry if my message caused you anxiety. There is
dispute as to the understanding on the handling of quesIonable items under Lend-Lease which was reached between

Crowley, Secretary Hull, Secretary Morgenthau and Lord

ifax, and to which I had given my prior approval. As
retary Morgenthau stated at the meeting, this understanding

not deal with the dollar position question and did not
Jude the vossibility of our reopening that question in the

e should the situation seem to call for it.

I raised this dollar position question since it is a
blesome one of continuing concern with us here and doubt-

with you. I hope that we may be able together to find
reasonable solution to this problem before it becomes
troublesome.

-2--

any further discussion of these matters the
la be the normal center of such conversations.

high Stettinius has of topics to be discussed
1008 not include the question of British dollar
the question to which you refer in paragraph 2 of
be withdrawn, although the Congressman concerned and

more Foreign Affairs Committee are now alerted to the
ou will be advised AS soon as a definite decision
ned, and consulted fully before any information is
ed.

CH

279

TREASURY DEPARTMENT
FISCAL SERVICE
WASHINGTON

BUREAU OF ACCOUNTS
OFFICE OF THE COMMISSIONER

Mt

March 24, 1944

TO MR. D. W. BELL:

The questions raised by the Secretary in connection with
lend-lease were discussed with Major General A. H. Carter,
Lt. Colonel H. W. Burrows, and Mr. Owen Campion by Mr. Maxwell

and myself in General Carter's office. As I now understand,
there are three principal subjects with respect to which questions were raised, as follows:

1. The records on the retransfers of property to
other countries or dominions which had originally
been transferred to the United Kingdom under the

lend-lease agreements;

2. The records on reciprocal aid furnished to the
U. S. by the U. K., especially as related to
property originally lend-leased to the U.K.: and
3. The records of stocks of lend-lease and military
supplies in foreign countries after the war, and
the title to such properties.
All of these items were subject to study by the Interdepartmental Committee appointed to study "Recording and Reporting of

Lend-Lease Transactions and Government Expenditures Abroad." The

situation in connection with these three subjects is briefly
stated as follows:

1. Retrensfers -The U. S. Government has complete records

on all property when transferred to foreign countries under lendlease agreements, including the U. K., but does not have complete

information as to the disposition of such property after it is
turned over to the lend-lease countries.

From the inception of lend-lease, most requests for aid to
the British Empire, with the exception of Canada, have been controlled by the United Kingdom. In addition, requests for aid have
been filed by the U.K., on behalf of other countries such as the
BUY
WAR

280
Belgian Congo, Turkey, and Greece. Transfers resulting from these
requests have been recorded on the books of U. S. Government agen-

cies as an account with the U. K. Information on the ultimate
destination is sometimes available in the files, but such data is
not complete, so that complete records are not available in the
United States as to the ultimate destination and use of transfers
to the United Kingdom.

Section 4 of the Lend-Lease Act provides:
"All contracts or agreements made for the disposition of any defense article or defense information
pursuant to section 3 shall contain a clause by
which the foreign government undertakes that it

will not, without the consent of the President,
transfer title to or possession of such defense
article or defense information by gift, sale, or
otherwise, or permit its use by anyone not an of-

ficer, employee, or agent of such foreign government."

Article III of the British Master Agreement / reads:
"The Government of the United Kingdom will not without

the consent of the President of the United States of
America transfer title to, or possession of, any
defense article or defense information transferred
to it under the Act or permit the use thereof by
anyone not an officer, employee, or agent of the

Government of the United Kingdom." #

Thus, before lend-lease property is retransferred to other
countries, approval must be obtained from the United States. A

blanket authorisation was granted to the United Kingdom to make

retransfers within certain limits, but was rescinded in November

1943. However, blanket authority is still in effect for (a) emergency retransfers by Theater Commanders, (b) allocations by the
United Kingdom to military contingents of foreign nations actively
serving as part of the British operational commands, to merchant

vessels of the Allied nations, and to units of the British Empire
or the British Commonwealth of Nations. Since November 1943,

reports of types and quantities of such retransfers were to be
reported at agreed intervals to the Washington Munitions Assignment Board.2

No agreement was made to report past retransfers.

2. Reciprocal aid - It appears that the question of obtaining the
information on reciprocal aid furnished to the United States by
United Kingdom has been the subject of consideration for the past
two years. The records of such reciprocal aid are only partially
complete and even those available have not been completely summarised.

1 British Master Agreement is printed on pp. 63-65 of Thirteenth Report
to Congress on Lend-Lease Operations, for period ended November 30.

1943 (attached)

2 First report will be for quarter ended March 31, 1944.

281

-3This is partially due to the change in the concept of what constituted reverse lend-lease. At first, only physical property
transfers were considered as reverse lend-lease, but later the
concept was extended to include services, subsistence, and maintenance.

Early in 1942, instructions were issued to the Commanders of

the U. S. Forces in the field, prescribing certain records and
reports to be maintained in connection with reciprocal aid received
from other countries. Because of evaluation problems, in August
1942 Field Commanders were relieved of the requirement of placing

a value upon reciprocal aid received, but were instructed to report

only quantities. Reports received from Commanders overseas on

this basis were very voluminous, consisting of lists of thousands

of items, and no attempt has been made to evaluate or to summarize
these statements. In the last few months of 1942 it became apparent
that the volume of reciprocal aid could never be adequately measured

in terms of numbers of articles, and instructions were issued by the

War and Navy Departments in June and August of 1943, respectively,

requiring reporting of reciprocal aid in monetary terms with estimates
to

be made by the U. S. Commanders if values were not supplied by

local Governments. This instruction has continued in force until
the present time. However, the only summary reports on reciprocal
aid available for figures published by the United Kingdom, New Zealand,
and Australian Governments at the insistence of the United States in
the "white papers" which give in only a few broad classifications
the estimated reciprocal aid furnished the U. S. based upon cash
expenditures.1

Although there undoubtedly are many instances where property
originally land-leased to the United Kingdom has been returned to

the U. S. forces, and considered reciprocal aid, it is understood

that these arise in connection with military operations; for instance, with
where an American plane might stop at a British field and load
gasoline. It is understood that supplies and materials from different origin are commingled so that the identity of origin which is frequently lost. This practice is a matter of military policy In this

accounting or record-keeping system could overcome. con-

no nection, the following quotation from the Interdepartmental Committee's
study (page 60) may be of interest:
"The articles themselves must, however, if they are the
to achieve their land-lease purpose, be used in be
prosecution of the war, and in many cases must
commingled with articles and materials of different United

origin. For this reason accounting by the
agencies for such articles and materials after
States their transfer would be in most instances impracticable.

Underscoring supplied)

1 Copy of this "white paper" will be obtained, if possible.

282

-4A recommendation of the Interdepartmental Committee with

respect to this matter is contained on page 62 of its study,

as follows:

"Recommendation: That in the future transfers be
recorded not only to the account of the government
which at present assumes accountabibity but also
so far as possible to the account of the govern-

ment which is the ultimate recipient."

It would appear that a knowledge of retransfers of military
supplies and equipment would also be of vital concern to the Munitions Assignment Board.

3. Post-war stocks abroad - As indicated in the preceding

section, physical control of the ultimate distribution of articles

transferred under land-lease rests, in most instances, with the
recipient nation. Except for merchant and naval vessels and machine
tools transferred to the United Kingdom and Australia, the United
States has no records regarding the ultimate use or location of
lend-lease articles. Whether records are maintained by the United
Kingdom and other countries to show the end use of such articles has

not been determined, but recommendation was made by the Interdepartmental Committee that provision be made to obtain from foreign
governments current reports on certain durable goods received from
the United States under lend-lease arrangements to show their

location. If this were done, presumably records would be maintained
to show, at the end of the war, the source of stocks of durable
goods on hand.

Aside from the financial and economic aspects of the problem
which large stocks of equipment, tools, supplies, and materials on
hand abroad at the end of the war will create, it would appear that

the disposition of such articles would also involve the serious

problem of future military security. It will be recalled that

although the President has authority under the terms of the Lend

Lease Act to sell, transfer title to, exchange, lease, lend, or

otherwise dispose of any defense articles to a foreign government,
he has the right both under the Lend-Lease Act and under the master
agreements to request the return of any such articles "as shall not have been destroyed, lost, or consumed
and shall be determined by the President to be useful in the defense of the United States of America
or to the Western Hemisphere or to the otherwise use
of the United States of America."

Article V of the British Master Agreement reads:
"The Government of the United Kingdom will return to the
United States of America at the end of the present

--

283

"emergency, as determined by the President, such
defense articles transferred under this Agreement

as shall not have been destroyed, lost or con-

sumed and as shall be determined by the President

to be useful in the defense of the United States

of America or of the Western Hemisphere or to be

otherwise of use to the United States of America."
Conclusion - From the foregoing, it is evident that the records
of the United States Government concerning lend-lease are inadequate

in the following respects:

(1) They do not show the extent to which supplies
or equipment furnished by the United States to
the United Kingdom as lend-lease have come

back to our military forces abroad as reciprocal
lend-lease; and

(2) They do not show the extent to which supplies
and equipment sent to the United Kingdom under

lend-lease have been transferred to another

country for use or diverted to non-military
channels.

General comment - It appears that the records maintained in the
United Kingdom have been the subject of several previous inquiries
in which special missions have been sent to the United Kingdom, but
the data obtained apparently was not entirely satisfactory. At present,
a lend-lease mission (the Reed Mission, headed by Mr. Phillip Reed, who

reports to the President) is in London, which acts as liaison with the

United Kingdom on all lend-lease matters. It is understood that lend- there
are thirty to forty British Government agencies which now obtain ultimate

lease articles, each of which maintains its own records on the

Mejosition of such articles. If this information is correct, the

determination of what records are maintained might require considerable
time.

It is believed that any attempt to obtain information on the
records of the United Kingdom should be cleared through the Foreign the chanEconomic Administration. Probably the Reed Mission would be be able

nel through which any representative of the Treasury would Chief,
obtain the information desired. Brig,Gen. Boykin Wright,
International to Division, War Department, may have some suggestions to with

respect to this subject, although I have not had an opportunity
talk to him.

Your attention is also invited to the fact that the Interdepartmental Committee recommended -

"that early action be taken in designating an agency
as a clearing house for all records and reports concerning international transactions."

284

-6The Committee suggested that the designation of a central
clearing house should be supplemented by the various operating
agencies concerned; that each should designate an office as a
point of interagency contact and intra-agency coordination with

respect to all information on international transactions, whether
derived from financial accounts or from statistical records.
This proposal would facilitate internal coordination and would
provide the clearing house with an initial point of contact in

each agency which presumably would direct its requests for information to the proper office. In some agencies such information
office already exists; in others the matter is somewhat loosely

handled, often with undesirable results. In view of this, the
Committee also recommended -

"that each agency involved in international transactions designate a liaison office for contact
with the clearing house."
The Committee did not recommend which particular agency should

perform this function, although it seemed to be the general feeling
that the Foreign Economic Administration would be the most logical
organization since it already has central records relating to lendlease.

Commissioner of Accounts

Attachments - 2

1. Thirteenth Report to Congress on Lend-Lease Operations
For the Period Ended November 30, 1943.

2. A Report on Mutual Aid
(British White Paper November 11, 1943)

285

A REPORT

ON MUTUAL AID

TEXT OF A WHITE PAPER PRESENTED BY THE CHANCELLOR OF
THE EXCHEQUER TO PARLIAMENT

BY COMMAND OF HIS MAJESTY.

November 11, 1948

BRITISH INFORMATION SERVICES
An Agency of the British Government
Additional copies of this paper may be obtained from the offices of the Agency

at 30 Rockefeller Plaza, New York: 1336 New York Avenue, N. W., Washington;
360 North Michigan Avenue, Chicago: 260 California Street, San Francisco.

A REPORT ON MUTUAL AID

II.-THE RANGE OF MUTUAL AID.

I--THE POOLING OF RESOURCES

The United States.

1. This war is being fought on the significant concepts of mutual
aid and of the pooling of resources. One of the most striking and
far-reaching applications of this principle was the institution of the
system of lend-lease. In March, 1941, the United States Congress

6. On the 23rd February, 1942. the Mutual Aid Agreement with

the United reads
States
signed (Cmd. 6341). Article II of that
Agreement
aswas
follows:"The Government of the United Kingdom will continue to contribute to the defence of the United States of America and the
strengthening thereof. and will provide such articles, services,
facilities or information as it may be in a position to supply."

passed an Act entitled "An Act to Promote the Defence of the United

States," commonly known as the Lend-Lease Act. Under its provisions, the President was empowered to transfer without payment
materials needed for winning the war to the Governments of those
countries whose defence was deemed vital to the defence of the
United States: the consideration for such transfers, to be determined
at a later date, was to be such benefit to the United States, direct
or indirect, as the President might deem satisfactory.

This provision recognised an existing situation. In the early days
of lend-lease our chief contribution was to hold the enemy and,
meanwhile, to supply defence information, bought with our exper-

ience in the war and our intensive research in the immediate pre-war
period: we were only delivering to the United States a small amount
of defence material. But when the United States was in the war,
the picture changed, and our reciprocal aid to the United States grew
monthly as the occasion for it increased.

2. In the first stages of the war, broadly speaking, we were

dependent upon the ordinary peace-time methods of paying for the

war materials we needed. Our liquid financial resources were

becoming exhausted, and we were faced with the danger that the
flow of munitions and food would be reduced through our inability
to pay. Some idea of the strain upon our finances is shown by the

7. The position was further defined in an exchange of notes

between His Majesty's Ambassador in Washington and the United
States Secretary of State on the 3rd September, 1942 (Cmd. 6389),

fact that, despite the help of lend-lease, we have spent some
£1,500,000,000 in the United States since the outbreak of the war on

from which the following is an extract:-

supplies of all kinds. These financial difficulties were relieved by

the passage into law of the Lend-Lease Act.

3. In Canada we had similar difficulties of payment which were
solved by two magnanimous acts, the provision in 1942 of a money
gift of $1,000,000,000 for our war needs and, when that had been
exhausted, the passage of the Mutual Aid Act in May, 1943, which
provides for the transfer to the United Nations without cash charge
of
the goods they may need for the winning of the war, to the value
of a further $1,000,000,000.
4. His Majesty's Government have recognised how greatly mutual
aid assists the efficient prosecution of the war and good relations
between comrades-in-arms. The principle of the transfer of goods
and services without charge or calculation is a necessary part of the
efficient planning of the war from the point of view of strategy and
the economical use of man-power and shipping. It is therefore the

"The Government of the United Kingdom will provide the United
States or its armed forces with the following types of assistance,
as such reciprocal aid. when it is found that they can most effectively
be procured in the United Kingdom or in the British Colonial
Empire:-

O

(a) Military
stores. equipment, munitions, and military and naval
(b) Other supplies, materials, facilities and services for the

United States forces, except for the pay and allowances
of such forces, administrative expenses, and such local
purchases as its official establishments may make other
than through the official establishments of the Government of the United Kingdom.

policy of His Majesty's Government to apply that principle again
wherever possible, not only to the United States but also to other
Allies, and they think it proper to satisfy the public interest in the
subject by now reporting to Parliament in some detail on the scope

(c) Supplies, materials and services needed in the construction

5. This is the first detailed statement that His Majesty's Government have published on the contribution they are making to mutual

(d) Supplies, materials and services needed in the construction

of the various arrangements which are in force.

aid. It is a large and growing contribution, and this record of it

marks a development of the great principle initiated by the President
and the Congress of the United States, of whose lead in the matter
His Majesty's Government are profoundly sensible.

of military projects, tasks and similar capital works

required for the common war effort in the United Kingdom or in the British Colonial Empire, except for the
wages and salaries of United States citizens.

of such military projects, tasks and capital works in

territory other than the United Kingdom or the British
Colonial Empire or territory of the United States to the
extent that the United Kingdom or the British Colonial
Empire is a more practicable source of supply than the
United States or another of the United Nations."

2
3

8. Besides these classes of materials and services for which His
Majesty's Government in the United Kingdom is responsible under

the Agreement, we supply as reciprocal aid a large number of
shipping services. Ships are put at the disposal of the United States:

items transferred in the daily intercourse ofwar
the effort. It
O of
is a decentralised and flexible system designed to meet the needs of
armed forces at war in many scattered countries. Where supplies
are issued in bulk from some central depot in the United Kingdom,

troops and stores are carried on British ships: disbursements of
United States ships are met in British and Colonial ports; bunker oil
from British sources is supplied in these and other ports.
9. By common agreement, raw materials and bulk supplies of
foodstuffs (as distinct from rations for United States Forces) were
at first excluded from the Agreement, since the dollar receipts from
United States purchases were needed to meet our heavy liabilities
on pre-lend-lease armament contracts in the United States, which
were not covered by lend-lease. But now that those contracts are

it would be possible to make a rough estimate of the value of materials

transferred, though there is neither the time nor the manpower to
evaluate each separate item. In other cases the depot may be
thousands of miles away from headquarters, and no information
could reach here for many months. There are also transfers in the
field which may or may not be noted, according to the exigencies of
battle. Therefore, at no particular point in time can we say that
reciprocal aid amounts to so much, or specify all the items which

have been
Forces.

largely fulfilled, and in furtherance of the general pooling of resources,
His Majesty's Government have recently decided to extend reciprocal

14. One of the earliest and most important forms of aid which we
have given to the United States is the steady flow of information
and the fruits of research and practice which we have supplied since

aid to raw materials and foodstuffs purchased by the Government
of the United States from the United Kingdom and the Colonial
Empire which would thus be made available on terms analogous to
lend-lease. In addition, His Majesty's Government in the United
Kingdom will defray the cost of British shipping services for these
materials from all parts of the British Commonwealth Thus a very
wide range of additional products and services is brought into the
scope
of reciprocal aid which is not yet reflected in the statistics
given below.

the earliest days of the war. This is not a service which can be

valued in money, but it has cost more in blood and effort than most

aid, since its value to the recipients lies in the fact that it is the

fruit of battle experience. We have passed on at once all we have
learned of the strong and weak points of the enemy's tactics and
weapons, and of our own: all our establishments, our experiments
and our tests in battle have been open to American experts to watch

10. The cost of reciprocal aid in the Colonies has been entirely
borne hitherto by the Government of the United Kingdom.

11. His Majesty's Government in the United Kingdom are, of

course, not responsible for reciprocal aid as between the Dominions
and the United States. The Australian and New Zealand Governments signed reciprocal aid agreements on the 3rd September, 1942,
simultaneously with our own, and have given reciprocal aid at their
own expense on a scale which is large in proportion to their resources.
The South African Government is giving reciprocal aid without any
formal agreement; and the same is true of the Government of India,
who
bear the cost of reciprocal aid given to the United States Forces
in
India.
12. The goods and services which we furnish to the United States
under reciprocal aid are largely different in kind from what we ourselves receive under lend-lease. The aid we receive from the United
States under lend-lease can for the most part be measured in terms

of large contracts. Our needs for armaments, foodstuffs, raw

supplied or all the services rendered to the United States

O

and learn. While the United States were not yet at war, and later,
before they were actually fighting against the German forces, we
tried out their prototypes and models in actual combat. These trials
helped in the development of the Sherman tank and the Flying
Fortress, among others. The value of this cannot be assessed in
figures; it is enough to say that the lives which it cost to gain this
knowledge have saved American as weir as British lives.

15. In view of the great extent of American production of

weapons of war by the time American Forces began to reach the
battle fronts on any large scale, reciprocal aid has not taken the
form of large assignments of ships, planes, guns or other weapons,
to the United States. Such of these as we could spare from our own
production and stocks were made available to the rest of the Empire,

to the U.S.S.R., to the French, and to the forces of other Allied
Governments working from London. Most of our reciprocal aid to

the United States has, therefore, been "servicing"; it has taken the
form of providing transportation, accommodation, airfields, facilities,
and local supplies, to American Forces in the British Isles and the

materials, &c., are brought together in London, and, in so far as
they need to be met from the United States, are presented in bulk
to the United States Government in Washington. The stores are
procured and transferred to us in bulk. All the items go through a
regular process of requisitioning before they are supplied. Thus
us,
to there
is no great difficulty in listing and evaluating what is supplied

Apart from this, many hundreds of thousands of American troops
have been carried to these islands and to overseas theatres of war
by British troop transports. American naval and merchant-vessels

13. In contrast, our reciprocal aid to the United States is mainly
the provision of services both great and small and of a wide variety

and African waters for other reasons, have also been supplied free,
as reciprocal aid, with the harbour and repair facilities, fuel, stores,

Colonies.

16. Within this country and in the British Colonies all transpor-

tation costs of the United States Forces are met under reciprocal aid.

engaged on these operations, or operating in European, Mediterranean

4

5

food, &c., which they required, in so far as we possessed bases and
stocks suitable for the purpose.
17. In the British Isles, and in British Colonies and Protectorates
overseas, we have made available sites and building materials, and
constructed airfields, barracks, repair shops, vehicle assembly depots,
hospitals, &c., for the accommodation and use of the growing Amer-

or by local purchase, including rations, and their pay in local currency, together with cash for their local purchases, on lend-lease
terms. These arrangements now cover, amongst other things, the
cost of training pilots in India. Sea and land freights for British

installations, adapting them where necessary and we have assumed
the cost of keeping them supplied with light, heat, water, telephone

23. Our arrangements vary according to our Allies' needs and
their resources. Holland, Belgium, Norway and Yugoslavia pay for
all we give them. Certain other Allies are supplied under credits,
but the bulk of military supplies are made available free, only to be

and American lend-lease military supplies to China are also provided.
Other Allies.

ican air and ground forces: we have handed over existing capital

1

and other services.

18. We also provide as reciprocal aid various foodstuffs, in so far
as they are available from local production or stocks, and can more

returned if they still exist and we want them after the war. In

accordance with this principle, we are supplying the Armed Forces
of Greece, Czechoslovakia and the French Committee of National
Liberation without charge, and similar arrangements have been
offered to Poland and Yugoslavia. Military supplies are also being
furnished to Turkey free of cost.

conveniently be provided locally than imported specially by the
American Forces from the United States.

19. Apart from the direct requirements of the United States

Forces, we have furnished freely as reciprocal aid amenities for the
serving man: such as premises for American Red Cross Clubs: many
N.A.A.F.I. canteens: equipment for the American Red Cross and
the Special Services Branch of the American Army, and many other
services and supplies which were needed for similar purposes.
According to a recent American estimate, over 80 per cent. of the
current stocks of American Army Post Exchanges in this country
are being received as reciprocal aid.

24. We have also in the past made available, on special credit
terms, considerable civil and military supplies to other Allies, notably
the French and Turkey. These supplies, though not on lend-lease,
represent a corresponding call on British man-power, production
and finance.

25. We have also on loan to our Allies the following naval vessels:1 Cruiser,

20. Another American estimate is that almost 90 per cent. of

17 Corvettes,
14 Destroyers,
6 Submarines,
16 Motor Torpedo Boats,
17 Motor Launches,
19 Minesweeping Vessels, and
4 Frigates.

American army medical supplies in this country are being received
as reciprocal aid. In addition, hospitals, some specially built and

others, including a large number of civil and military hospitals,
turned over as they stood, have been provided, together with
ambulance trains.
U.S.S.R.

hazardous, naval operation.

China.

22. Arms, munitions and military equipment are being supplied
free to Chinese Forces in China within the limitations of transport
from India, which is at present very restricted. In addition, first in
Burma, and then in India, Chinese troops have been given all that
they required locally, whether by issue from British Army stocks

III.-THE AMOUNT OF MUTUAL AID.
26. Hitherto, His Majesty's Government have not given to Parliament any estimate of that part of the total of mutual aid furnished
by the United Kingdom to which a monetary value can be given.
The amount is now so large that they think it proper to present such
rough estimates as they can make. But some reservations are
necessary.
J

21. War material has been furnished by the United Kingdom to
Russia free of cost since Russia became engaged in the war with
Germany. This was regularised in an Agreement signed on the 27th
June, 1942. As an example of this mutual aid, it may be mentioned
that by the end of May 1943 4,690 complete aircraft (including losses
in transit) had been sent to Russia, with appropriate supplies of
spares, including engines, airframes and other articles of equipment.
We have opened up a route to carry these supplies across Persia,
and have sent large quantities of materials by the sea route to North
Russia, which has frequently involved a major, and indeed a very

27. First, the estimates are necessarily broad and incomplete.
Moreover, they are not up to date. If all forms of mutual aid were
given centrally, it would be easy to measure. But, as has been stated
above, it is a widespread and decentralised process. Furthermore,
it is almost impracticable to obtain information from operational
areas. Where the mutual aid technique is adopted, the services and
supplies are transferred without any price attached to them, and no
attempt has been made to build up any detailed accounts from the
bottom upwards by the introduction for this sole purpose of a process
7

6

the fact that mutual aid does not rest upon the principle of the

creation of mutual indebtedness supported by detailed accounts, the
task of maintaining such accounts would involve a misuse of manpower which could not be tolerated at the present stage of the war.
Detailed accountancy over the whole field of our reciprocal aid to
the
United States alone would require several thousand clerks and
accountants
28. This system does not imply any lack of care in the expenditure

of public money. Our Allies' requirements are in the main bulked
with ours and procured in the same way as ours: and in so far as
they are issued from Service stocks they will have been subject to
normal control during storage and will have been issued only on
proper requisition by an authorised officer.
29. Secondly, if any figures which we give of reciprocal aid to the

(ii) Goods and Services transferred in the United Kingdom.
Up to June 30,
1943.

£ millions.

Military stores, including equipment and clothing
Food and other Army supplies
Aircraft and aeronautical equipment
Industrial and naval supplies
Miscellaneous services

31. With these qualifications the cost to us of reciprocal aid

furnished to the United States can be classified as follows:-

13

82

(iii) Shipping Services.
Up to June 30,
1943.

lead to a serious under-estimate of the British contribution. The

30. The price-levels in the United States of the labor and materials
most in question are substantially higher than ours. Thus American
book costs probably exceed similar British costs by more than 50
per cent. This is not an accurate guide to relative efficiency, after
allowing for differences of wage-levels, since the costs in the two
countries are computed on bases which are widely different in several
respects. But they do afford an approximately accurate corrective
for the book-costs as entered up for the present purpose.

10

20

18

United States lead to comparison with the lend-lease given to us, such
comparison of money values, unless made with circumspection, will

estimates of lend-lease and recipocal aid are made independently by
the two Governments in terms of the actual cost to themselves,

21

£ millions.

Freight services
Disbursements including Bunkers

36
6

of valuation which would not otherwise be required. It will, indeed,
be obvious from the nature of this reciprocal aid that, apart from

42

The above figures relate only to transfers and services in the United
Kingdom and shipments to the United States. They cover on the
average a period of about one year. It was only from July 1942
onwards that Reciprocal Aid became appreciable. The figures relate
only to items known to have been transferred and services known to
have been rendered up to June 30, 1943. They do not include all the
aid actually furnished up to that date.

(i) Capital Installations in the United Kingdom.

(iv) Goods and Services transferred in Overseas Theatres of War.

The total programme which is in course of being carried out is
estimated to cost more than £150,000,000. The estimated value of
work done by the 30th June, 1943, was as follows:-

It is impossible at present to furnish even approximate estimates
for the total value of these transfers. They relate partly to transfers
of war material and partly to a vast number of small items, mostly

£ millions.

Barracks, hospitals, &c.
Air ports

in North Africa. It is expected that it will be another two or three

months before any estimate can be made even of major items such
as tanks transferred in Tunisia.

31
55

Aircraft repairs depot, &c.

5

Others
1

92

(v) Raw Materials, Food-stuffs and associated Shipping Services.
As mentioned in § 9 above, His Majesty's Government have decided

to extend reciprocal aid to raw materials and food-stuffs procured
by the United States Government in the United Kingdom and the

Colonies, together with carriage of such materials by British shipping.
It is not yet possible to make an estimate of the value of such supplies.

8

9

32. The figures of the amounts supplied to Russia under our lendlease agreement with her are as follows:Up to June so,
1943.

£ millions.
93
16
65

5

Vehicles and tanks
Guns, ammunition, &c.
Aircraft and aeronautical equipment
Industrial and naval supplies

O

growing cash expenditure in third countries on military operations
and supplies are outside its scope. This burden, of which the United
Kingdom has had to bear a particularly heavy share, has to be taken
into account alongside mutual aid in considering the financial weight

of the war on this country. Up to the middle of 1943 the total
burden assumed by the United Kingdom, in the form of payments
made to other members of the United Nations in excess of sums
received from them, amounted to over £2,250,000,000. These sums
measure the extent to which the United Kingdom has in this way
burdened her future commerce by parting with gold and other capital
assets
Nations. and by incurring liabilities to other members of the United

179

These figures do not include the very large expenses incurred in

V.--CONCLUSION

33. Most of our lend-lease arrangements with our Allies other

38. The part which the British Commonwealth has borne and is
bearing in the field of mutual aid cannot be measured in terms of
money. Indeed, financial sacrifice is not the most valuable part of
what any of the United Nations is called upon to contribute to total
war. The claims of war against each are the same, that is, that they
should give all they have. Moreover, many even of the items cata-

conveying these stores to Russia, and keeping open the routes,

than the United States and the U.S.S.R. are comparatively new, and

the amount given under them is not yet large; earlier on. most of
the assistance we gave was in the form of credits. Our credits to
all our Allies, other than the United States and the U.S.S.R., up to

the 31st December, 1942, together with such lend-lease assistance as
we gave before that date, amounted to about £186,000,000.

IV.-THE LIMITATIONS OF MUTUAL AID.
34. The amount of mutual aid which a country gives is not a

measure of its war effort. It is only a measure of that part of its

war effort which is applied as a contribution to the war effort

of another country. Some of the United Nations are so close to the
enemy, or have such small resources compared with their vast needs

that almost the whole of their war effort is applied directly. Others,
further off. or with more resources, can best help the general cause
by putting part of their production in the common pool.

35. If the United States send us aircraft for British crews to
fly from British airfields, that is reckoned as lend-lease. If they

send such aircraft complete with American crews who fly them
from the same field, that is not reckoned as lend-lease. No one
would claim that the former was a greater contribution to the Allied
cause than the latter.

logued above cannot be brought together and be stated in a definite

money total, but this should not be allowed to lead to an underestimate of the size of the British financial contribution to the cost
of the war all over the world.
39. In order to indicate the order of magnitude of the external
financial aid now accorded by the United Kingdom, the following
comparisons may perhaps be helpful. In the President's report to
the Congress of the 25th May, 1943, he gave figures to show that
lend-lease expenditures up to that date made up 12 per cent. of
America's total war expenditure. The proportion of British war
expenditure currently devoted to mutual aid is 10 per cent. Thus,
there is a difference in the division of our respective contributions
between our own direct effort and our assistance to our allies. But
there is not so such difference as might have been supposed. This
takes no account of the very large contribution to the external
finance of the war made by the United Kingdom for cash expenditures abroad, as explained in paragraph 37 above. Such contribution

apart, what we give to the United States as mutual aid in relation
to our national income does not fall far short of what the United
States gives to us as lend-lease in relation to their national income.

36. Mutual aid is for the most part confined to the provision by
one country to another of its own produce. It does not cover the
burdens assumed in theatres of operations overseas, particularly in
respect
of
goods. of cash expenditure which cannot be covered by the shipment

37. Thus, mutual aid falls short of a financial pooling of overseas

expenditure In particular, the pay of troops, and the vast and
10

11

286

TEENTH REPORT TO CONGRESS
LEND-LEASE OPERATIONS

de Period Ended November 30, 1943

0000000000000000000000000000000000000000000000000000

THIRTEENTH REPORT TO CONGRESS

ON LEND-LEASE OPERATIONS

For the Period Ended November 30, 1943
0000000000000000000000000000000000000000000000000000

"The President from time to time, but not less frequently than once
every ninety days, shall transmit to the Congress a report of operations
under this Act except such information as he deems incompatible with
the public interest to disclose."
[From Section 5, subsection b of An Act to Promote the Defense of
the United States" (Public Law No. 11, 77th Congress, 1st Session).)

CONTENTS
Chapter

Page

President's Letter of Transmittal
1. The Lend-Lease Program
2. The Soviet Union

5

7

16

3. The United Kingdom

20

4. Africa, Middle East, and Mediterranean Area

24

5. China, India, Australia, and New Zealand
6. Other Countries

31

7. Lend-Lease Petroleum in the War

39

8. Lend-Lease and Farm Machinery

46

35

9. Lend-Lease Appropriations and Transfer Authorizations

50

10. Statistical Tables

54

Appendix
I. Lend-Lease Act

59

II. British Master Agreement
III. . Modus Vivendi on Reciprocal Aid in French
North and West Africa

63

66

IV. Executive Order Establishing Foreign Economic Administration

69

V. Executive Order Establishing Office of LendLease Administration

71

3

PRESIDENT'S LETTER OF TRANSMITTAL

To THE CONGRESS OF THE UNITED STATES OF AMERICA:

I am transmitting herewith, pursuant to law, the Thirteenth
Report of Operations under the Lend-Lease Act.
The coming year will be a year of decisive actions in the
war. By combining their strength, the United Nations have
increased the power of the common drive to defeat the Axis.
We have already beaten back our enemies on every front on
which we are engaged.

At Teheran and Cairo, plans were agreed upon for major

offensives, which will speed the day of victory. With the
closer unity there achieved, we shall be able to strike ever-

increasing blows until the unconditional surrender of the
Nazis and Japanese.

Mutual aid has contributed substantially to the strength of
the United Nations. The flow of lend-lease assistance from
the United States to our allies and of reverse lend-lease assistance from our allies to us has increased the power of our united
offensives. The lend-lease program has made stronger the ties

that bind the United Nations together for common victory
and in common determination to assure a lasting peace.

Each of the United Nations is giving what it can to the
accomplishment of our objectives-in fighting manpower and
in war production. Some countries, like the United States and
Canada, located away from the fighting theaters of war, are
able to make available to other United Nations large quantities
of food and manufactured arms. Others, like the Soviet Union
and China, require virtually everything they can raise and produce in order to fight the enemy on their own soil. And still

others, like the United Kingdom and Australia, can make
available substantial quantities of war material to their allies
5

but must necessarily retain most of their war supplies and food
for their own forces.
Whether food and war supplies should be transferred by one
of the United Nations to another or retained for its own forces
depends on the strategic military necessities of war.

Chapter 1

THE LEND-LEASE PROGRAM

Our common objective is that all the planes and all the
tanks and all the food and other equipment that all the United
Nations together can produce should be used as effectively as

possible by our combined forces to hasten the defeat of the

Lend-Lease and the United Nations
As more American forces move overseas to hit the enemy,

enemy.

the Axis is also feeling with greater and greater force the

The cost of the war to us, and to our allies, is high in any
terms. The more fully we can now mobilize our manpower,
our supplies, and our other resources for the decisive tasks

effects of the lend-lease program. The soldiers of the Soviet
Army who have driven back the Nazi invaders in one of the
greatest offensives in military history are making good use
of the supplies we have sent them. British and allied forces
fighting beside our own forces in the Mediterranean theater
have been strengthened by lend-lease equipment. Lend-lease
aircraft, bombs and other war goods sent to Great Britain are
being used in the effective bombing of industrial Germany by
the R. A. F. The offensive against Japan is being speeded by
our lend-lease shipments to India, China, Australia, and New

ahead, the earlier will victory be ours and the lower the final

cost-in lives and in material wealth.

The United Nations enter the new year stronger and more
firmly united than ever before. Germany and Japan will both
soon learn that to their sorrow.
FRANKLIN D. ROOSEVELT.

Zealand.

The cost of lend-lease aid from March 11, 1941, to November

30, 1943, has been equivalent to 13.5 percent of all United
States war expenditures for the period. The money we have
spent on lend-lease is as much an integral part of the United
States own war effort as the 86.5 percent of our war expenditures that have gone for our own armed forces and for our home

front. Through the lend-lease program, American planes,
tanks, and guns, manned by the soldiers of our allies, and
joined with our own forces, are helping to win victories over
our enemies. Through lend-lease, American steel and machine
tools and other industrial materials and equipment are being
used by the war workers of our allies to produce in their fac-

tories more weapons for use by their forces-and by ours(Filed January 6. 1944, with the Secretary of the Senate and the
Clerk of the House of Representatives as provided in Section 5-b of the
Lend-Lease Act.)

against our enemies. Through lend-lease, American food is
helping to maintain the rations of the Soviet Army, of British
soldiers and war workers, and of others who are engaged in
the war against the Axis either on the front or behind the lines.
7

6

The lend-lease program is an essential element of United
Nations strategy-to win complete victory over our enemies
in the shortest possible time by using to the fullest possible
extent the man-power and industrial resources of all the United

Nations. Our allies fight principally with their own weapons.
Their factories use principally their own raw materials and
equipment. Their peoples raise most of the food they cat.
But lend-lease supplies have been an essential supplement to

their own resources. Without lend-lease weapons, some of
the most important battles that have been won against our
enemies by our allies and by our combined forces might not

have been won so speedily-or won at all. Without supplementary war supplies under lend-lease, factories abroad that
are producing tens of thousands of planes and guns and tanks
to smash German and Japanese bases and production centers
would have been able to contribute far less to the defeat of the
enemy; and millions of men in allied lands who have marched

The upward trend in lend-lease aid has been due in large
part to a sharp rise in the volume of aircraft, ordnance, and
other munitions transferred to our allies. In 1941, munitions
represented 21 percent of total lend-lease aid. The proportion
increased to approximately 47 percent in 1942. It increased
again to about 61 percent in the first eleven months of 1943.
GOODS TRANSFERRED AND SERVICES RENDERED
MILLIONS OF DOLLARS
Total from March 1941
to November 30, 1943

1200

16,136

1000

Goods

Services

2,473

Total

18,609

800

SERVICES

600
400
GOODS

into battle or worked long hours in munitions plants might

200

not have had enough food to carry on.
0

Total Lend-Lease Aid

1941

The rapidly mounting offensive power of United Nations
forces is due in part to the increased flow of lend-lease aid to
our allies.

Total lend-lease aid furnished from the beginning of the
program in March 1941 to November 30, 1943, amounted to
$18,608,553,000. Of this amount, $10,355,820,000 was furnished in the first 11 months of this year, $7,009,129,000 in
the entire year 1942, and $1,243,604,000 in the last 10 months
of 1941.

1943

1942

Chart 1

Lend-lease services to the end of November 1943 amounted
to $2,472,704,000. The rental and charter of ships and ferry-

ing of aircraft constituted the most important services,
accounting for more than half of the value of all services.
Much of the balance consisted of the training of combat
pilots for our allies, the repair of allied men-of-war and merchant-men in our shipyards, the assembly of aircraft abroad, and

Airplanes, guns, raw materials, food, and other goods trans-

ferred have accounted for 87 percent of total aid to date
and services for 13 percent. Transfers of finished munitions
make up 53 percent of the total aid. Industrial items account
for 21 percent and foodstuffs and other agricultural products
for 13 percent of the total.

other similar war services for the United Nations. In addition,
more than $600,000,000 of lend-lease funds have been expended

on gun, airplane, and other war production facilities in the
United States. This represents a substantial addition to our
own industrial capacity. These plants have not been transferred to foreign governments. Some of them are now being
9

8

TOTAL LEND-LEASE AID

Lend-Lease Exports

March 1941 through November 30, 1943
Amount

Figures on transfers of lend-lease goods and services to our
% of Total

allies help to give a complete picture of the amount of aid
furnished under lend-lease, but they do not show to what
theaters of war the goods are sent. Lend-lease exports, on the

Goods Transferred:

Munitions
Industrial Items

Foodstuffs, etc
Total Transfers

other hand, are reported by the country to which they go.

$9,827,519,000
3,931,531,000
2,376,799,000

21.1

Statistics on exports are used in the discussion of lend-lease in

12.8

the various theaters of war in succeeding chapters.

16,135,849,000

86.7

Total lend-lease exports to all areas in the first ten months* of
this year were more than one and one-half times as great as

400,728,000

2.2

exports to each of the principal areas.

1,382,583,000
604,604,000
84,789,000

7.4

The most substantial increase has been in our exports of
munitions. In the first ten months of this year, for instance,

52.8

they were in the entire year 1942. Increases were shown in

Services Rendered:

Servicing and Repair of Ships, etc
Rental of Ships, Ferrying of Aircraft,
etc

Production Facilities in U.S
Miscellaneous Expenses
Total Services

2,472,704,000

Total Lend-Lease Aid

18,608,553,000

3.2

0.5

13.3

WHERE LEND-LEASE GOODS HAVE GONE

100.0%

MONTHLY EXPORTS - MILLIONS OF DOLLARS
1,200

1,200

The above figures are exclusive of the value of goods consigned to United States commanding

generals for subsequent transfer in the field to lend-lease countries. The total value of such
consignments to November 30, 1943, was $438,741,000.

1,000

1,000

Table 1

BREAK-DOWN OF LEND-LEASE AID

800

800

MIDDLE AND
FAR EAST

AND OTHER

1941

1942

Jan.-Nov.

600

600

USSR

1943

400

400

Percent
21.5
21.9

Foodstuffs, etc

Total

Percent
60.7

26.8

46.7
20.9
12.8
19.6

100.0

100.0

100.0

29.8

Services

Percent

200

200

UNITED

21.2

KINGDOM

10.7
7.4
o

Munitions
Industrial Items

De

Table 2

1941

1942

1943

Chart 2

used to produce munitions for our own armed forces. All of
these plants will be available to us after the war for whatever
use we want to put them to in our national interest.

Figures on exports for the month of November are not yet available.
11

10

VALUE OF LEND-LEASE EXPORTS TO ALL COUNTRIES
Thousands of Dollars

1942

Jan.-Oct.

545

2,005,318
1,351,925

3,402,441
2,197,973

5,980,379
3,550,443

95,915

692,026

1,380,358

2,168,299

DISTRIBUTION OF LEND-LEASE EXPORTS

52,219
19,604

641,304
204,186

909,823

1,603,346

MARCH 1941 OCTOBER 1943

318,000

541,790

740,903

4,894,759

8,208,595

13,844,257

1941

United Kingdom
U. S. S. R

572,620

Africa, Middle East, and

Mediterranean Area
China, India, Australia, and
New Zealand
Other Countries
Total

forces overseas had received up to June 30, 1943, from the
British Commonwealth. Reports have not yet been received
for the four months ending October 31, 1943, but up to June
30, 1943, the United Kingdom had reported expenditures for
reverse lend-lease aid to the United States of $871,000,000,
Australia of $196,000,000, New Zealand of $51,000,000 and
India of $56,900,000, a total of $1,174,900,000. These figures

1943

Total

Table 3

BY AREA OF DESTINATION
LATIN
AMERICA

OTHER AREAS

0.8%

3.1%

CHINA, INDIA, AUSTRALIA
AND NEW ZEALAND
11.6%

we exported under lend-lease munitions valued at $4,674,546,000, which represented an increase of 142 percent over

exports in the corresponding period of last year. The comparable increase in industrial items for our allies' war production was 104 percent and in foodstuffs for their soldiers and
war workers, it was 88 percent.

UNITED KINGDOM

AFRICA, MIDDLE EAST a

43.2%

MEDITERRANEAN AREA
15.7%

U.S.S.R
25.6%

Reverse Lend-Lease

With lend-lease assistance, our allies have been able to
strike more damaging blows against our enemies and they are
fighting today more strongly than ever by the side of our own

forces. The war will be much the shorter for it. This is, of
course, the principal war benefit the United States receives

under the lend-lease program. It is a benefit beyond price.
In addition to this benefit, however, the United States is
receiving directly as reverse lend-lease aid, without any payment by us, substantial quantities of supplies provided by our

allies within the limits of their material and financial resources. The President's Twelfth Report to Congress on
Lend-Lease Operations, submitted November 11, 1943, gave
a preliminary report of the reverse lend-lease aid United States

Chart 3

did not include many expenditures by the British for supplies
and services made available to United States armed forces in
North Africa, Sicily, Italy, and elsewhere. Similar lend-lease
aid to our armed forces is being provided by the Belgian Government and the French Committee of National Liberation.
In addition to supplies and services for our armed forces
abroad, the governments of the United Kingdom, New Zealand, and India have agreed to provide as reverse lend-lease,
and without payment by us, raw materials, commodities, and
13

12

foodstuffs previously purchased within their territories by
United States Government agencies; the agreement with the
United Kingdom includes public purchases in Southern Rho-

desia and the Colonial Empire. Similar arrangements are
now under negotiation with the governments of South Africa
and Australia. British shipping to carry these supplies, which

include such strategic and critical materials as rubber, rope

COMPOSITION OF
MONTHLY LEND-LEASE - EXPORTS
100%

enemies on their own soil, and they have plainly not been in
a position to provide large amounts of reverse lend-lease aid.
The real measure of the aid we and the other United Nations
have received from China is the six and a half years during
which our indomitable ally has engaged-and is now continu-

ing to engage-large Japanese armies in China with heavy
losses to the Japanese. The real measure of the aid we and the
other United Nations have received from the Soviet people is

to be found at Stalingrad, Kharkov, and Kiev, and in the
millions of Nazi soldiers killed, wounded, or captured on Russian soil, who will not be there to oppose our forces in western

100%

Europe.

FOODSTUFFS, ETC.

So with all our fighting allies-the British, whose forces

80

80

INDUSTRIAL ITEMS

have fought in the Mediterranean campaigns in considerably
larger numbers than our own; the French who have fought

with us in Tunisia and are fighting now not only in Italy

60

60

40

40

but as a heroic army of underground resistance in France itself.
The money cost of reverse lend-lease aid, great as it is, is in
no sense a measure of the help we receive from our allies.

Our principal allies have contributed fully in proportion
to their resources. Total United States war expenditures,

MUNITIONS
20

20

including those for lend-lease, have increased from approximately one-third last year to one-half this year of our national

income. Both last year and this year the United Kingdom,

o
June

Dec

June

1941

1942

1943

Chart 4

fiber, chrome, benzol, cocoa, tea and vegetable oils, is also
being made available under reverse lend-lease. The French

Committee of National Liberation has similarly undertaken
to supply us, as reverse lend-lease aid, without payment on
our part, strategic materials imported into the United States
from North Africa.
We are also receiving reverse lend-lease aid, as the need

arises, in China and the Soviet Union. Both these nations
have, of course, had to strain their own manpower, transpor-

tation, and other resources to the utmost in fighting our
14

for example, spent more than one-half of her national income
for the war.
The dollar statistics of lend-lease and reverse lend-lease
provide a useful measurement of one phase of our own war

effort and one phase of the war effort of our allies. But
neither lend-lease statistics nor dollar figures of any kind can
measure the relative contributions toward winning the war
of the United States and the other United Nations. We are
fighting this war primarily with men and ships and weapons,

with steel and food, not merely with dollars. The contributions of the United Nations have necessarily differed in
accordance with their varying resources and with the circumstances of the war as it has progressed. Some have been called
upon to give more in weapons or in materials, some to give

more in lives or in ruined cities. All are giving what they

can for victory.
15

VALUE OF LEND-LEASE EXPORTS TO U. S. S. R.
Thousands of Dollars

1942

1941

Jan.-Oct.
1943

Chapter 2
Ordnance and Ammunition

THE SOVIET UNION
Lend-lease shipments to the Soviet Union through October
31, ,1943, totalled $3,550,443,000, or more than one-fourth of

lend-lease exports to all countries. Our aid to the U. S. R.

Aircraft and Parts
Tanks and Parts

176,804

35

149,092
11,020
312,880
184,815

Motor Vehicles and Parts
Watercraft
Industrial Items
Foodstuffs, etc
Total

has been greatly accelerated in 1943. In the first ten months of
this year, shipments were 63 percent higher than in the entire
year 1942.

213,918
303,396

75

435

1,351,925

545

293,531

416,232
39,114
312,164

Total

507,524
719,678
215,953
461,256

75,671

86,691

651,471

964,786

409,740

594,555

2,197,973

3,550,443

Table 4

To help relieve the severe food shortage in the Soviet Union

Aircraft, ordnance and other munitions have constituted 56
percent of the value of exports to the Soviet Union. Industrial
items have made up 27 percent and foodstuffs and other agricultural products 17 percent of our lend-lease shipments to the

resulting from the fact that the Nazis have occupied and
ravaged about 40 percent of the Soviet's most fertile cropland
during the war, we have shipped 1,790,000 short tons of food

and other agricultural products. These have been largely

Soviets. This year, as Table 4 indicates, we have greatly

items in which Soviet production has fallen far short of re-

reduced shipments of tanks, in accordance with reduced Soviet

quirements, including 343,000 tons of wheat and flour, 277,000
tons of sugar, 324,000 tons of canned meat, 441,000 tons of
edible fats and oils, 136,000 tons of dried fruits and vegetables,
and 38,000 tons of dried eggs.
The Soviet Union urgently requested butter for the Red Army
particularly for the use of many wounded soldiers recuperating
in Russian hospitals. We have been able to send 33,500 tons.
No butter has been scheduled for lend-lease export to any other
country since the beginning of the lend-lease program, Last
year we shipped 8,500 tons of butter, or seven-tenths of one
percent of the total 1942 United States supply. This year we
have shipped 25,000 tons, or about 2.7 percent of our supply for
the period. Our butter shipments this year to the Soviet Union
have amounted to one-seventh of an ounce per week from each

requirements, but have increased exports of aircraft and air-

craft parts, ordnance and ammunition, industrial products,
watercraft, and motor vehicles. In the first ten months of
1943 we sent more than twice as much food to the Soviet Union
(in dollar terms) as in all of 1942.

The lend-lease aid we have furnished has been effectively
used in the Red Army's advances in the Ukraine and White

Russia. Through October we sent to the U. S. S. R. nearly
7,000 planes, more than to any other lend-lease country; more
than 3,500 tanks and 195,000 motor vehicles, including trucks,
jeeps, motorcycles, and other vehicles. These have not only

provided the Soviets with important weapons of offense to
supplement their own production, but have also been a
vital factor in maintaining supply services for the 2,000-mile

Russian front.

civilian in this country. At the same time the United States
had received as reverse lend-lease up to June 30, 1943, 8,250
561998-43-3

16

17

tons of butter. This has been furnished to our forces in the
Pacific by Australia and New Zealand as reverse lend-lease and
without payment by us. The amounts being currently supplied

in this way are steadily increasing. The butter received as reciprocal aid has resulted in freeing for domestic use butter that
might otherwise have had to be reserved for overseas use by
American forces.

To help restore the reconquered Soviet agricultural areas as
soon as practicable and possible, and to develop food production in Siberia, we have sent 10,000 tons of seeds for the growing of some thirty staple crops. We have also sent 5,500,000
pairs of army boots and 16,600,000 yards of woolen cloth for
the use of the Soviet armed forces; 251,000 tons of chemicals,
144,000 tons of explosives, 1,198,000 tons of steel, 342,000 tons
of nonferrous metals, and 611,000 tons of petroleum products.

BUTTER
AMOUNT LEND-LEASED COMPARED WITH
CONSUMPTION IN U.S.
JANUARY OCTOBER 1943

II POUNDS

62/5 OUNCES

LEND-LEASED
PER U.S. CIVILIAN

CONSUMED IN U.S.
PER CIVILIAN

Lend-lease exports in January - October 1943

were equivalent to 2.7% of total U.S. supply in that
period.

Chart 5
19
18

Lend-lease exports to the United Kingdom from March 11,
1941 through October 31, 1943, totalled $5,980,379,000, or
43 percent of the shipments to all areas. In 1943, lend-lease
exports to the United Kingdom constituted 41 percent of exports to all areas.
Military items accounted for about 40 percent of the value
of lend-lease exports to the United Kingdom from March 11,
1941 through October 31, 1943. These were divided about

Chapter 3

THE UNITED KINGDOM

equally among the three major categories: ordnance and

With the United States and Great Britain using the United
Kingdom as a major base for attacks on Nazi-held Europe,
the volume of lend-lease supplies sent there from the United
States has steadily increased. More than half of the exports

to the United Kingdom since the inception of lend-lease
moved during the first ten months of this year, as shown in
Table 5. Shipments in this period exceeded those of the
preceding twenty-two months by $824,503,000. Lend-lease
supplies sent to the United Kingdom are used by British and
allied forces on other fighting fronts as well as for offensive
action from Britain and for British war production.
VALUE OF LEND-LEASE EXPORTS TO UNITED KINGDOM
Thousands of Dollars

1941

Ordnance and Ammunition
Aircraft and Parts
Tanks and Parts

Motor Vehicles and Parts
Watercraft

Industrial Items
Foodstuffs, etc
Total

30,761

13,330

1942

250,400
275,752

10,521

35,998

14,559
6,003
165,356
332,090

61,950
604,218
731,094

572,620

2,005,318

Table 5

45,906

Jan.-Oct.
1943

490,115
471,608
443,483
136,556
104,910
785,283
970,486
3,402,441

ammunition, aircraft and parts, and tanks and other motor
vehicles. Industrial items have accounted for 26 percent of
total shipments and foodstuffs and other agricultural products
for the remaining 34 percent.
There has been a sharp increase in the exports of munitions

to the United Kingdom under lend-lease. Shipments of
munitions to this area amounted to $75,174,000 in 1941,
$670,006,000 in 1942, and $1,646,672,000 in the first ten
months of 1943. The value of tanks and parts sent this year
has been more than 9.5 times the combined total for 1941 and

1942. While munitions constituted 13 percent of lend-lease
exports to the United Kingdom in 1941, the percentage rose
to 33 percent in 1942, and to 48 percent in the first ten months
of 1943.

Although the food sent to the United Kingdom was only
about 10 percent of Britain's total food requirements, and was
an even smaller percentage of our own supply, it represented
the difference between having and not having enough to carry

Total

771,276

760,690
490,002
213,065
156,819

1,554,857
2,033,670
5,980,379

on effectively the British war effort. Lend-lease foods have
been mainly of the concentrated varieties high in food value.
We have sent substantial quantities of protein substitutes for
meat, such as dried peas, dried eggs and cheese, as well as pork

and a very little beef. We have also sent other types of concentrated foods, such as dried milk, dried fruit, concentrated
fruit juices, and dehydrated vegetables. These are essential

to the health of the armed forces and workers in munition
industries, yet require a minimum of shipping space. The
British in turn have supplied our soldiers in Great Britain
under reverse lend-lease with fresh vegetables, flour, potatoes,
21

20

cocoa, tea, and other foods that are grown in Britain and
in the Colonial Empire.
Lend-lease aid to the United Kingdom has involved hundreds
of special projects. For example, after studies in London and
Washington revealed a serious shortage of coal for future military operations and essential civilian requirements, lend-lease
funds were made available for the purchase of relatively small
amounts of mining machinery to be used to increase production

of coal in the United Kingdom. British coal has been used
to supply the needs of American and allied forces in the Mediterranean theater and to meet other overseas United Nations

needs. Almost no coal produced in the United States-a
minute fraction of one percent of our production-has ever
been shipped from this country under lend-lease, and none

and conditions and benefits which will be in the mutual inter-

ests of the United States of America" and of the countries
receiving lend-lease aid from us. Lend-lease equipment in-

stalled in airfields abroad will be fully taken into account,
therefore, in the final lend-lease settlements when they are
made.

The question of the future use of airfields in all parts of the
world, both for strategic and commercial purposes, involves
many other factors besides lend-lease, of course. The final
and complete answer can be found only through the continuing
and successful collaboration of the United Nations in international commerce after the war and the development of a system
of general military security in which the interests of both the
United States and the other United Nations are fully protected.

has ever gone to the British Isles.

Ferry routes have been developed by us and the British
jointly to facilitate the delivery of planes to Great Britain,
the Middle East, and the Russian front. Lend-lease funds
were an important factor in building and equipping airports
along these routes and in constructing and maintaining repair
and supply depots to service the planes and keep them in operation. At the same time, the British, under reverse lend-lease,

have built a great number of airfields for our forces in the
United Kingdom.

The British, like us, have spent several hundred million
dollars in building in various parts of the world airfields
essential for carrying on the war against the Axis. These
fields are used by many United Nations forces. Lend-lease
supplies from the United States that have been used in building
or equipping airfields in the lands of our Allies were furnished,

like other lend-lease aid, under the terms of the Lend-Lease

Act. The Act provides that the benefit to the United States
for lend-lease aid "may be payment or repayment in kind or

property, or any other direct or indirect benefit which the
President deems satisfactory." The final determination of

what this benefit may be is deferred, under the Master LendLease Agreements, "until the extent of defense aid is known
and until the progress of events makes clearer the final terms
23

22

Direct Military Aid
The largest single category of munitions shipped to this area

Chapter 4

AFRICA, MIDDLE EAST, AND MEDITERRANEAN
AREA
As the war in Africa and the Mediterranean gained in scope
and intensity this year, resulting in the expulsion of the enemy

from North Africa, Sicily, and southern Italy, lend-lease aid
to this area increased in volume. Shipments through October

31, 1943, totaled $2,168,299,000. In the first ten months of
this year they were 75 percent greater than in the preceding
twenty-two months combined.

As Table 6 shows, about three-fourths of our exports to
Africa, the Middle East, and the Mediterranean region have

been finished munitions. This table does not, however, include munitions consigned to American commanding generals
for transfer in the field to the armed forces of our allies. The
total value of such consignments to all areas up to November

has been ordnance and ammunition, followed by tanks, aircraft, and motor vehicles. Exports of tanks and parts in the

first ten months of 1943 were about six times as large, in
dollar value, as in all of last year.
Lend-lease planes, tanks, and guns helped the British Eighth
Army drive Rommel's forces out of Egypt, Libya, and Tripoli-

tania and to play a major part in the Tunisian, Sicilian, and

Italian campaigns. Lend-lease munitions and planes are
making possible the re-creation in North Africa-the first of
the liberated areas-of a French Army and Air Force of 300,000
men. French armed forces equipped through lend-lease have

already joined with American and British forces in the fighting

in Italy. They will join with the other United Nations in the
liberation of France.
Various units which escaped from the occupied countriesPoles, Yugoslavs, Greeks and others-have gone back into the
fight with the help of lend-lease weapons, and they are fighting
by the side of the British and American forces in this theater.

30, 1943, was $438,741,000.

VALUE OF LEND-LEASE EXPORTS TO AFRICA, MIDDLE

EAST, AND MEDITERRANEAN AREA
Thousands of Dollars

1941

1942

Ordnance and Ammunition
Aircraft and Parts

33,268

173,618

Tanks and Parts

2,022

114,590

30,572
10,758

115,066

1,820
14,683
2,792

95,915

Motor Vehicles and Parts
Watercraft
Industrial Items
Foodstuffs, etc
Total

Table 6

Jan.-Oct.
1943

Total

511,269
357,103
406,502
298,105

10,794
194,138
34,423

304,383
240,491
326,533
172,281
17,959
223,817
94,894

432,638
132,109

692,026

1,380,358

2,168,299

49,397

30,573

Civilian Supplies in North Africa
In addition to arms, we have provided to French Africa vital
civilian supplies under lend-lease, at the request of our military
commanders. This aid has been essential to United Nations
operations in the Mediterranean theater. Through December
19, 1943, 342,000 tons of civilian supplies were shipped to
French North Africa, and 48,800 tons to French West Africa.
These supplies, although furnished under lend-lease, are being

paid for one hundred cents on the dollar by the French
authorities.

Our shipments in recent months have included finished and
semifinished steel for the maintenance of rail and port facilities;

steel and chemicals for essential war production; fertilizers
and agricultural insecticides to increase production of food
for our forces and for the local population; batteries and spark

plugs for idle trucks now returned to service; refractory bricks
561998-43-

24

25

for kilns used in the manufacture of building materials; and
many other products necessary to develop and maintain
North Africa as a major base for military operations. The
basic principle has been to supply that aid which will make
it possible in the shortest time for the liberated people of
French North and West Africa to help themselves and their
Allies.

Lend-lease aid is provided to French North and West Africa

and we receive reverse lend-lease aid from them under an
agreement with the French Committee of National Liberation. Under this agreement we provide both munitions and
essential civilian supplies under lend-lease and are reimbursed

fully in cash for all but military supplies. The French, on
the other hand, make available to us as reverse lend-lease aid,

without cash payment by us, strategic and critical raw materials for our war production and food and essential services

for our forces in the area. We pay for shipments of nonstrategic commodities exported for sale and civilian use in the
United States. The French have already made four cash pay-

ments, totalling $56,340,000 for essential civilian supplies
shipped to them under lend-lease from the United States.
When we landed in North Africa in November 1942 there
was not enough food to carry the people through the winter.
A large percentage of the 1942 crop had been sent to Nazioccupied Europe. By sending 88,000 tons of wheat and flour

in the six months ending June 30, 1943, it was possible to
maintain the bread ration for the people of North Africa,
whose cooperation was so important to us while the allied
forces under General Eisenhower prepared for the Tunisian
campaign which drove the Axis from Africa and opened the
way for the invasion of Sicily and Italy.
Since June 30, 1943, we have shipped no more wheat and

flour to North Africa. Our food shipments since then have
consisted almost entirely of sugar, tea, and dried and evapo-

rated milk.

With the help of lend-lease seeds, fertilizers, and other
farm supplies, French North Africa is again producing enough
of most varieties of food to more than supply its own popula-

tion. The liberated people of French Africa-with lend-lease
assistance-are now providing locally grown food for our own

forces and for the people of the liberated areas of Italy.
American forces have already received thousands of tons of
fresh fruits and vegetables. The French have agreed to provide substantial additional quantities to our forces in North

Africa, Sicily, and Italy. This food is furnished to us as
reverse lend-lease. We do not pay for it. The United States
Government has not bought and is not buying wheat or other
food from the French authorities in any part of French North

Africa for our forces, or for the people in North Africa with
a minor exception. Army procurement officers have from time
to time bought some food locally for individual Army units.
We are now receiving local currency from the French authorities as reverse lend-lease to pay for all such purchases.
North African mines and quarries are back in production,
and strategic raw materials, such as iron ore, phosphates, lead
concentrates, and small amounts of zinc concentrates and antimony have begun to flow to allied countries. French West
Africa, too, has begun to contribute valuable raw materials to
the United Nations. So far, it has shipped sisal and mahogany, and future shipments of peanuts, palm oil, palm kernels,
and small amounts of rubber are expected.

Civilian Gasoline Consumption in North Africa
French North Africa is virtually 100% dependent on imports
for its supply of petroleum products. Thus, when American
and British troops landed in North Africa a year ago to liberate
the first French territory from Axis control, it was a military
and lend-lease problem of the first magnitude to supply all of
the oil and gasoline which was urgently needed for essential
military purposes.
All petroleum products in French North Africa are, and have
been, under strict military control. The Petroleum Section of
Allied Force Headquarters, which is staffed by American and
British military personnel, programs the requirements for all
the military and civilian uses of petroleum products. It is the
Petroleum Section which is responsible for the determination of
27

26

the amount of petroleum needed in North Africa and for the
prompt storage, delivery, and distribution of the petroleum
upon arrival.

Upon arrival in North Africa the petroleum products are
allocated by the Allied Headquarters to the several military
and civilian uses strictly on the basis of need. Civilian needs

naturally have the lowest priority. In North Africa, under
the arrangements now in effect, the French pay the United
States in dollars for all of the petroleum products delivered

for civilian use.

In the first eight months of 1943 Allied Headquarters allocated approximately 140,000 barrels of gasoline for essential

civilian services in Morocco, Algeria, and Tunisia. This was
less than one-fourth of the normal gasoline consumption in
North Africa before the war. Much of this gasoline was used
to help North Africa meet the additional transport needs imposed on the area by the presence of our forces.

French North Africa has 16 million people and covers an

these cars in many cases are not clearly marked as military
vehicles they may lead a casual observer to believe that more
cars are using gasoline for civilian purposes than is the fact.

The Marking of Lend-Lease Goods
The program of lend-lease aid to French North Africa, the
Middle East, and other areas has brought goods of American
manufacture to many parts of the world in enormous quantities.
The hundreds of millions of people living in the Mediterranean
area and in other allied lands are well aware of the American
origin of these supplies, and of the fact that they have been
provided by the United States under lend-lease.
Some lend-lease goods-like the jeep, the General Sherman
Tank, and the Airacobra fighter-of themselves proclaim their

UNITED

area of about a million square miles, one third the area of con-

tinental United States. None of the gasoline allocated for
civilian transport services in this vast area was for pleasure

driving or other non-essential services. In Algeria, for
example, no private cars are allowed to operate at all unless
they are used for essential services by physicians, government

from the
United States
of America

officials, and the like. Algerian police allow only 9,700 private cars to operate in all of Algeria. A survey made in June
of this year in Algeria showed that 25% of the gasoline allocated for civilian purposes was used in trucking food, strategic
materials, and other essential commodities; 46% was used on
the farms to assist in growing more food locally for the people
and our forces; 16% was used in local industries; and 13% for
passenger cars performing essential services.

On the average, less gasoline has been provided for the few

private cars permitted to operate in French North Africa for
such essential purposes as doctors' calls than is permitted to
A-card holders in this country. A large number of the private

cars in North Africa have been requisitioned by the military
authorities for the use of allied military personnel. Since
28

The above reproduction shows three of the labels used to identify lend-lease goods sent to
allied countries. The originals, which are considerably larger than the reproductions, are in
red, white, and blue. The first label (top, left) is used on goods sent to English-speaking coun.
tries, the second (top, right) on goods sent to the U.S.S.R., and the third (bottom) with the
wording in both Arabic and French, on goods sent to French Africa.
Chart 6
29

American origin on the highways and skyways of Europe,
Africa, and Asia. These unique American weapons are selflabelling. Other lend-lease articles and packaged goods
which are not self-labelling, bear one or more labels, markings,

or insignia which establish them as American products.
Lend-lease trucks carry the names of their American manu-

facturers. Still other items, such as machine tools, have the
name of the American manufacturer and the United States
place of manufacture cast into the body of the machine tool

Chapter 5

CHINA, INDIA, AUSTRALIA, AND NEW
ZEALAND

itself.

In order that lend-lease goods may be identified as such by
the widest possible group, practically all consumer items are

labelled as American. Foodstuffs generally carry American
brand names on the containers, or they may be specially packaged. The cartons in which green tea was shipped to North
Africa, for example, were specially designed by the OWI for
the purpose. Cotton cloth is labelled by dropping insert slips
every ten yards as the cloth is wound on bolts; and second-hand
wearing apparel is identified by placing labels in the pockets
or by hooking special tags on the buttons.
The lend-lease labels and markings are of several types. All
of the labels are printed with the national red, white, and blue

Lend-lease exports to these areas from March 11, 1941, to

October 31, 1943, totaled $1,603,346,000. As shown by
Table 7, exports in the first ten months of this year substantially exceeded the combined total of the shipments in
1941 and 1942.

VALUE OF LEND-LEASE EXPORTS TO CHINA, INDIA,
AUSTRALIA, AND NEW ZEALAND
Thousands of Dollars
1942

1941

colors and bear "U. S. A. or "From the United States of

Jan.-Oct.
1943

Total

America'' in prominent lettering. In addition, the American
flag, has a central position on most of the labels. The American eagle and the Statue of Liberty are also used as distinctive
lend-lease markings.

Ordnance and Ammunition
Aircraft and Parts
Tanks and Parts
Motor Vehicles and Parts
Watercraft
Industrial Items
Foodstuffs, etc
Total

9,560
7,995
1,935

165,107
97,139
100,380

149,553

17,856

75,145
2,849

144,152

11,523
3,282

170,155

323,421

30,529

29,404

324,220
305,307
144,646
237,153
23,706
505,099
63,215

52,219

641,304

909,823

1,603,346

68

200,173
42,331

20,789

Table 7

China and India

Combined exports to China and India have totaled
$856,824,000, of which 68 percent were munitions, 28 percent

industrial products, and 4 percent agricultural commodities.
31

30

Because the land routes to China have been closed since Burma

was lost, most of these supplies have been for India. Some
lend-lease supplies have been sent into China by air' and considerable quantities of supplies for China have been stock-piled

in India. They are there, ready to go, when the necessary
routes are reestablished or developed.

In spite of the closing of the land routes since the Burma
Road was cut, we have been able to send into China lendlease planes and other equipment for the Chinese Air Force
and Chinese Army, together with small amounts of tools and
materials for the Chinese arsenals that are continuing to turn
out ground equipment inside China. Chinese fliers are being
trained both in India and in the United States under lend-lease,
and Chinese troops in India under Lieutenant General Stilwell
have been completely equipped with lend-lease weapons and or-

ganized into hard-hitting triangular divisions. India is the base
for operations against the Japanese in Burma who block the

road to China. When the time comes for United Nations
forces in India to strike, the Chinese troops equipped and
organized in India will be prepared to join in the offensive.
Because of India's importance as a producer of industrial
materials and military equipment, and as an exporter of such
strategic items as jute, mica, manganese, graphite, and other

materials vital to the allied war effort we have supplied her
with large quantities of metals, machinery, and tools needed
for her armament factories and the mining, production, or proc-

essing of strategic materials. Surveys have been made of
India's industrial plants and transportation system and help
has been given to increase their efficiency. We have provided
cranes and lighters to move supplies in and out of her crowded
harbors and equipment to expand the capacity of her railroad
system.

Transportation has been a major problem in delivering lend-

lease goods to India as well as to China. After the loss of
Burma in the spring of 1942, India's cast coast ports, including
Calcutta and Madras, were closed for many months by enemy
operations in the Bay of Bengal and lend-lease supplies piled

up in the harbors of India's west coast ports. India's eastern
ports have been reopened, and in addition the opening of the
Mediterranean-Suez Canal-Red Sea route will facilitate the
movement of lend-lease goods for the India-China front.

Australia and New Zealand
Lend-lease shipments to Australia and New Zealand through
October 31, 1943, amounted to $746,522,000 of which 61 percent were finished munitions, 35 percent industrial items, and

4 percent agricultural commodities.

Australia is itself a sizable arsenal of democracy. Aus-

tralian factories produce large quantities of munitions and
other equipment which have been put to good use in the cam-

paign in the Southwest Pacific. We have sent to Australia
machine tools vitally needed for this work. Australia makes
tires for airplanes and motor vehicles; we ship carbon black
and other needed chemicals. Australia builds landing craft;
the engines are made in the United States and shipped under

lend-lease. Australia manufactures shirts, socks, jackets,
and other military clothing; we ship some of the textiles
needed to increase her production.
Both Australia and New Zealand are important sources of
food for the United Nations. They have been in need of additional agricultural equipment to increase production, as well
as tinplate and materials for canning, dehydrating, and pack-

ing vegetables and meats. We have made these supplies
available under lend-lease. With this assistance, Australia
and New Zealand have been able to increase food production
sufficiently to supply almost all the food needed by American

forces in these countries. Thus, for example, Australia and
New Zealand have supplied our forces, under reverse lend-lease,

with almost as much beef and veal as we have exported to all
lend-lease countries. Their aid to us has saved many thousands
of tons of shipping and greatly reduced the amount of food
needed from our domestic food supply by United States armed
forces in the Pacific.

561996-43-5
32

33

In addition to vast quantities of food, Australia and New
Zealand furnish hospitals, airfields, barracks, and clothing
under reverse lend-lease to our forces in the Southwest Pacific.
Their repair shops serve our planes and motorized equipment
and their shipyards keep our troop transports and other ships
in condition under reverse lend-lease.

Chapter 6

OTHER COUNTRIES
The Occupied Countries
The Governments-in-exile-Norway, the Netherlands, Belgium, Poland, Czechoslovakia, Yugoslavia, and Greece-are
all eligible for lend-lease aid. Through lend-lease the United
States has helped to provide equipment and training for some

of their air and ground and naval forces-several hundred
thousand strong-who are fighting beside us against the Nazis

and the Japanese. Great Britain has provided even greater
quantities of equipment for the exiled armies and we have
also joined the British in helping to maintain and repair the
10,000,000 tons of merchant shipping which the occupied
countries contributed to the United Nations shipping pool.
We have sent, in addition, some lend-lease supplies to colonial
areas belonging to the Governments-in-exile which are producing in increasing quantities strategic materials vital to the
war-production program of the United States.
Thousands of Norwegian fliers have been trained at Little

Norway in Canada, using lend-lease trainer planes. Thousands of fliers of the other occupied countries have been trained

in the United States. Hundreds of Dutch fliers, men who
escaped capture by the Nazis in the Netherlands or by the
Japanese in the East Indies, have come to Jackson, Mississippi,

for training under lend-lease and then gone to Australia,
where they are flying fighter and Mitchell bomber squadrons
today under General MacArthur's command. Yugoslav fliers
trained under lend-lease are flying with allied forces in the
Mediterranean theater and one Yugoslav squadron is equipped
with Liberator bombers. The air forces of the other occupied
35

34

countries are flying British and American planes with the
R.A.F. and U. S. A. A. F. from bases in Britain and Africa.
We are being paid in cash for some of the supplies we furnish

the governments-in-exile. This is the case, for example,
with essential supplies other than munitions sent to Dutch

ama Canal.' Brazil and other American Republics have
made available to us air and naval bases in Central America
and along the northern coasts of South America. We have
supplied air and coastal defense equipment under lend-lease.
The Brazilian Air Force, flying American lend-lease planes on

Guiana (Surinam), where an important share of the bauxite
used in the manufacture of American aluminum, is produced.
In the Belgian Congo, where production of vital war materials

Atlantic patrol, has reported the sinking of several enemy

such as rubber, tin, copper, cobalt, fibres and palm oil, has

coastal patrol vessels loaned by us and operated by crews
trained under lend-lease, have taken an active part in convoy
work in the South Atlantic and the Caribbean.

been increased as much as 100 percent, mining and transporta-

tion equipment are paid for in cash.

submarines. Brazil is now preparing to send troops to fight
beside ours in Europe. Brazilian and Cuban naval units, using

The United States has already been reimbursed to the extent
of about $10,000,000 for lend-lease aid furnished to the other
American Republics.

Latin America
Lend-lease aid has been extended to the other American
Republics which are united with us in defense of the Western
Hemisphere and have produced a billion dollars worth of raw
materials essential to our war production.
Substantially all lend-lease aid to Latin American countries
consists of fighting equipment such as guns, aircraft, military
vehicles and small naval craft, together with materials used in
ordnance plants and other installations producing military or
naval equipment

The original arrangements to supply military and naval
equipment to Latin America were approved by General
Marshall, the Chief of Staff, and by Admiral Stark, then Chief

of Naval Operations. All assignments of military and naval
equipment to the other American Republics under lend-lease
have been approved by the appropriate officers of the United

States Army and Navy, acting under the direction of the

Joint Chiefs of Staff.

From March 1941 to October 31, 1943, lend-lease shipments

to Latin America amounted to $116,543,000. Of this total,
a substantial part has gone to Brazil, which General Marshall,

in his biennial report as Chief of Staff of the United States
Army, termed "vitally important to the strategic defense
of the United States'' and "vital to the security of the Pan-

No lend-lease aid is being furnished to the Republic of
Argentina.

Canada

The Canadian and American war-production programs are
closely integrated under the Hyde Park agreement, but Canada
pays cash for all aid for herself that she receives from the
United States. She buys from us for cash a large part of the
requirements for her war production and we buy for cash from
her fighting equipment produced in her factories, as well as
such war materials as nickel, of which she produces more than
90 percent of the world's supply.
Lend-lease exports to and through Canada from the United
States are valued at $350,000,000 since March 1941. These
exports consist of military equipment and its components,
principally for re-export from Canada to the United Kingdom
or other United Nations either directly or after further fabrication in Canadian factories. These goods are transferred by
the United States under lend-lease, not to Canada, but to
the countries of ultimate destination. Other lend-lease ex-

ports to Canada have included trainer planes and small
quantities of other supplies for the use of Norwegian, Polish,
and other United Nations units in training on Canadian soil.
37

36

The balance of lend-lease exports to Canada consists of supplies Canada has purchased for cash in this country for her own
war effort, using the lend-lease procurement machinery.
Canada has her own mutual aid program under which she

is supplying, without payment, to the United Kingdom, the
Soviet Union, Australia, New Zealand, and other United
Nations, $2,000,000,000 of additional war supplies produced
in her own factories and shipyards.
Although no lend-lease agreement has been signed between
Canada and the United States, Canada has adhered, through
an exchange of notes on November 30, 1942, to the post-war

economic principles set forth in Article VII of the Master
Lend-Lease Agreements.

Chapter 7

LEND-LEASE PETROLEUM IN THE WAR
The present war, more than any other war in history, is
being fought with petroleum products. Aviation and motor
gasoline, oil and lubricants are indispensable to modern war.
Petroleum products are consumed in tremendous quantities
by the large and constantly growing fleet of planes, ships,

tanks and trucks of the United Nations and by their war

industries.

The United States was before the war, and is today, the
greatest oil-producing, oil-refining, and oil-consuming country

in the world. Our highly industrialized and mechanized

economy in peacetime was based upon petroleum to an extent

unparalleled anywhere in the world. We are now striving to
make the most effective use of our great refining capacity in
the prosecution of the war. Nevertheless, the United States
is actually exporting now to all countries a smaller quantity
of petroleum products than was exported from the United
States before the war. We are using for our own war industry
and armed forces in this country and abroad about 88 percent
of the oil we produce.
Our allies are also making the most effective possible use of
their own petroleum production and refining facilities-limited
though these are as compared with our own. A considerable
part of the overseas petroleum requirements of the United
States naval, air, and ground forces, and merchant marine is
supplied by our allies under reverse lend-lease.
With the petroleum products we have sent under lend-lease

we have added immeasurably to the striking power of the
United Nations as a whole. The air assault from the United
39

38

Kingdom on Nazi Europe, the Soviet victories over the Nazi
Army, and the allied campaign against Japan in the Pacific
have all been greatly aided by lend-lease supplies of gasoline,
oil, and lubricants.

Lend-Lease and United States Petroleum Resources
Lend-lease supplies of petroleum products furnished to our

allies have used less than one-tenth of the United States
production of crude petroleum. During 1943 it is estimated
that exports of petroleum products and supplies of bunker
oi under lend-lease will total approximately 132 million
barrels, or less than 9 percent of United States production for
the year.

As the above table shows, the additional production of
crude petroleum in the United States since the outbreak of
war and the curtailment of nonessential civilian demands have
not been caused by lend-lease consumption of United States
petroleum products. They are the result, instead, of the large
demands upon domestic petroleum production of our own war

industries and of our own armed forces in this country and
abroad. In fact, a substantial part of the petroleum products
shown as lend-lease exports in the above table are returned
to our armed forces abroad. In addition, large quantities of
petroleum products are furnished to our armed forces under

reverse lend-lease by our allies from their own petroleum
resources.

The total quantity of petroleum products supplied through
commercial exports and under lend-lease to foreign countries
from the United States in 1943 will be substantially less than

the total quantity of petroleum products supplied to foreign
countries commercially in 1938, the year before Hitler plunged
Europe into war by attacking Poland.

The following table gives a comparison of the impact on
United States petroleum resources of foreign consumption of
United States petroleum products in 1938 and 1943:

IMPACT OF FOREIGN CONSUMPTION ON UNITED
STATES PETROLEUM RESOURCES

1943 (esti-

1938

mated)

1,214

1,500

Exports and bunkers to foreign vessels
Lend-lease
Commercial

132

Total

216

47

216

179

Total exports and bunkers to foreign vessels

in percent of U. S. production of crude
petroleum

Petroleum production in the Middle East has already surpassed the level of pre-war production, and current production
is greatly in excess of the production of two years ago when
the whole area was threatened with the danger of falling under

Nazi control. British corporations in the Middle East control
several times the production and refining capacity controlled
by United States corporations in that area and are consequently

supplying several times the quantity of petroleum products
supplied from oil resources in that area controlled by United
States interests.

Millions of Barrels

U.S production of crude petroleum

Expansion of Middle East Production and Refining Facilities

18%

12%

All petroleum refining facilities in the Middle East, as elsewhere, are being utilized to the fullest extent consistent with
the efficient use of tankers and the maximum output of those
petroleum products that are most needed for fighting the war,
such as aviation and other high octane gasoline. For example,
the great refinery at Abadan at the head of the Persian Gulf
is currently operating at its top output under these conditions.
This refinery, a British property, is by far the largest refinery

in the Middle East. Its output of the most vitally needed

war products has already been greatly increased and is being
further increased by additional equipment.

Table 8
41

40

The supply of tankers has been inadequate, however, to
transport to areas where they are needed for war purposes the
entire output of heavier products necessarily produced in the
gasoline manufacturing process. The surplus of heavier products at Abadan has been far too large to be held in storage.

It has instead been disposed of by the unique method of
pumping it back into the oil fields. This has been, from a
commercial standpoint, wasteful to the British, but has resulted in saving space on tankers for carrying aviation gasoline
to American and British forces.

The British Government, which has had a substantial mili-

tary supply responsibility in the Middle East, has greatly
expanded the petroleum facilities in that area. The first
stage of the expansion of the Abadan refinery was begun
in the fall of 1941 and the expansion is continuing. The
capacity of the British-controlled refinery at Haifa is also
being expanded and the refinery at Suez has been operated at

full capacity throughout the period of active warfare in this
area. The expansions of facilities at these refineries are being

paid for by the British. They have not been carried out with

lend-lease funds.

A project has also been undertaken to expand the output of

war products of the refinery at Bahrein, halfway down the
Persian Gulf. This refinery is owned by United States corporations and equipment supplied from the United States for
the expansion project is being paid for by the companies with
the assistance of a loan from the Defense Supplies Corporation.

The United States, with minor exceptions, does not pay for
petroleum products currently obtained from the Middle East.
Practically all bunker oil for United States naval and merchant
vessels in the Middle East is provided by the British Govern-

ment under reverse lend-lease Petroleum products of all
types shipped from the Middle East refineries to Australia,
India, South Africa, and to the Mediterranean area are furnished locally to United States armed forces and merchant
vessels under reverse lend-lease.

Transportation to War Theaters
The effective war use of the combined petroleum resources of

the United Nations has been primarily determined by the
supply of tankers and other forms of transportation to carry
the refined petroleum products to war theaters. Many ocean
and overland routes have been cut off or made dangerous. As

the course of the war has changed the shipping situation,
arrangements for petroleum supply have, of course, been
promptly revised.
There has been a shortage of tankers available to the United

Nations in relation to the needed quantities of petroleum
products and the long distances over which these products
have had to be carried from the refineries to the war theaters.
United States and British controlled tankers have been jointly

programmed to maintain the most efficient operation and
eliminate cross hauls. The shortage in tankers has made it

imperative, in order to maintain the maximum supply of
petroleum products going into theaters of operations, that the
shortest haul be used wherever possible.
Ever since the beginning of lend-lease, the "short-haul"
principle has governed shipments of petroleum products to
the Southwest Pacific except where emergency and strategic
developments have necessitated departures from that principle.
Petroleum products for Eastern Australia and New Zealand
have generally been supplied under lend-lease from the west
coast of the United States and Talara, Peru, because these were

the shortest routes. United Nations naval, air, and ground
forces in Western Australia, the Indian Ocean area, and the
Eastern Mediterranean have depended upon supplies of petro-

leum products from the refineries in the Middle East. The
only petroleum products customarily shipped to these areas
from the United States have been products such as high-grade
lubricants, which are not produced in substantial quantities
outside of the United States, and aviation gasoline when the
output at Abadan was not sufficient to meet all needs.
The allied campaign to liberate French North Africa was
supplied with petroleum products primarily from the Western
Hemisphere because this was the shortest sea route so long as
43

42

the Mediterranean was closed to allied shipping. During the
coming year, however, a much larger part of the petroleum
products for use in the entire Mediterranean theater will be
supplied from British controlled sources.

The war theater to which the greatest quantities of petroleum products are supplied under lend-lease is the United
Kingdom, where these products are used in the aerial bombardment of Nazi Europe, for the allied navies and merchant

marines, the allied ground forces and other war purposes.
Tankers cannot be spared to make the long voyages to the
United Kingdom from the Persian Gulf refineries. The sea
route from Abadan to the United Kingdom via the Cape of
Good Hope is about four times as long as the route from the

United States to the United Kingdom, and the route from
Abadan via the Mediterranean is about twice as long as the
route from the United States.
Most of the petroleum products used by the Soviet forces are
from Soviet petroleum sources, but certain vitally needed petroleum products for the Soviet war effort not refined in sufficient
quantities in the U.S.S.R. have been supplied from the United
States under lend-lease. Under lend-lease several refinery units
have been sent to the Soviet Union in order to enable the Soviet
Union to increase its production of aviation gasoline and other

high-grade petroleum products from her own petroleum re-

petroleum resources. All available supplies of petroleum
products will be required for a speedy and complete victory of
the United Nations over the enemy. In the future, as in the
past, the petroleum resources of each of the United Nations
will be utilized in its own direct war effort and the combined

war effort, in proportion to the maximum ability of each to
produce and efficiently deliver the petroleum products needed
in the prosecution of the war.

After the war the nations of the world, including the
United States, will require petroleum to maintain their industrialized economies. Discoveries of new oil fields will
undoubtedly be made to supplement known oil reserves and,
as in the past, the steady development of technological improvements in oil production will make it possible to draw
on oil reserves which cannot now be tapped. Nevertheless,
as in the case of other natural resources, some nations will
have insufficient oil reserves to meet their petroleum require-

ments. Others will have a surplus. Agreed action by the
nations of the world, as provided for in the master lend-lease
agreements, for the expansion of production, the elimination
of discriminatory treatment in commerce, and the reduction
of trade barriers, will assure to the United States and other
nations fair and equal access to the petroleum produced in
all parts of the world.

sources. The Soviet Union has also received petroleum prod
ucts from British resources.

Outlook for the Future
Every effort is being made to increase the crude-oil production, the refining capacity, and the supply of tankers available

to the United Nations. The over-all petroleum war needs of
the United Nations in 1944 will rise above what they are now
as the magnitude of our offensive increases. The increasing
numbers of planes, ships, and tanks which we are now pro-

ducing and putting into action against the enemy require
increasing quantities of gasoline, oil, and lubricants.
Additional supplies of petroleum products from other areas
will not therefore result in reducing the demands on our own
45

44

from the marshes and hammered out of the rough soil of the

hills in the western counties. These marginal lands, how-

Chapter 8

LEND-LEASE AND FARM MACHINERY

ever, could not be drained, cleared, and converted to food
production without the heavy type of farm power which was
available only in America.
The need of our allies for lend-lease farm machinery was
further intensified by the demands made upon their existing
supply of farm equipment for purely military purposes. Thus,
when Australia was seriously threatened by the Japanese

early in 1942, thousands of Australian farm tractors were
In spite of acute shortages of farm labor and farm machinery,
Great Britain, the Soviet Union and our other allies have made

intensive efforts to increase their production of food. By
doing so they have saved millions of tons of shipping for the
transportation of fighting equipment instead of food and they
have reduced the need for shipping food from the United States.

This achievement would have been impossible without
additional farm machinery. The United States, also, has
experienced shortages of farm labor and farm machinery.

conscripted for the construction of military roads and airfields.

Moreover, British and Australian facilities, which once were
engaged in manufacturing farm machinery, were converted to

ordnance production early in the war. This was done, for
example, with one of the two tractor factories in the United

Kingdom and with virtually the entire farm machinery
industry in Australia.

BRITISH AGRICULTURAL PRODUCTION

We have, therefore, been able to ship to our allies under lendlease less than 3% of the entire United States production of
farm machinery between March 11, 1941, and November 1,
1943-not quite 34 million dollars worth in more than two and

a half years.* The War Production Board has allocated for
domestic agricultural use more than 90% of our production
under the 1943 program and only 3% for lend-lease.
With the help of what we have been able to send them, our
allies have achieved great results in spite of many complicating
factors which made increases in their farm production doubly

difficult.

In England, for instance, many thousands of acres of the
most arable and most easily tillable land have been taken over

for airfields. Flying Fortresses of the United States Army's
Eighth Air Force today take off from the long, level fields
which four years ago were among Britain's best farms. New

farm acreage therefore had to be reclaimed by the British

NOW

PRE-WAR

This increase has resulted from the great efforts of the
British people and lend-lease form machinery and fertilizer.
Chart 7

Excluding crawler-type tractors which are used for military purposes.
47

46

The dependence of our allies on United States farm machincry production has been virtually complete.

We shipped $20,642,000 worth of farm machinery under
lend-lease to the United Kingdom in the period from March
11, 1941, to October 31, 1943. This was less than two percent of our production. With the help of this machinery the
people of the crowded British Isles have brought over eight
million new acres of land into farm production. They have

Smaller amounts of farm machinery have been sent to North
Africa, the Middle East, and other areas. North Africa is now

producing food not only for its own population, but also for
our armed forces and for the liberated people of southern Italy.
Hundreds of thousands of tons of shipping space have been

saved by the increases in food production that have been
achieved by the countries of the Middle East.

increased their home production of food by 70 percent over

what it was before the war. Whereas before the war the
British imported two pounds of food for every pound they
raised at home, now they raise at home two pounds of food

for every pound imported. The British have worked the
tractors we have sent them probably harder than tractors have
ever been worked before. They are passed from farm to farm
and in many cases are worked in night shifts as well as by day.

We have shipped not quite $6,500,000 worth of farm

machinery to Australia and New Zealand in the past 31 1/2
months-about one-half of one percent of our production.
Today the American troops in Australia and New Zealand are
being fed almost entirely by Australia and New Zealand under
reverse lend-lease. This would have been virtually impossible

if lend-lease farm machinery had not been shipped. For
example, in order to meet the needs of both the Australian
civilians and the American troops, Australia was compelled
to diversify its farming and convert a very considerable acreage

from cereal production to the so-called row crops, such as
potatoes and leafy vegetables. Cultivation of row crops on a
large scale, however, requires a tricycle type, or "row crop,

tractor. Since no tractor of that kind had ever been built in
Australia, Canada, or England, the United States was the only

available source.

We have shipped almost $1,250,000 worth of farm machinery
to India in order to assist that country to meet the critical food
shortages caused by the war.

48

49

1941, included provision for munitions as well as essential
non-military supplies. The two appropriations to the PresiChapter 9

LEND-LEASE APPROPRIATIONS AND TRANSFER

AUTHORIZATIONS
By four appropriations there has been made available to
the President $24,683,629,000 for lend-lease use. The first
two appropriations, those of March 27, 1941, and October 28,
LEND-LEASE AID - BY SOURCE OF FUNDS
BILLIONS OF DOLLARS
Appropriations to
the President for

Appropriations to
War and Novy Departments

Lend-Lease Use

287.2

24.7

dent which were made after the United States entered the war,
those of March 5, 1942, and June 14, 1943, provided only for
services and supplies other than finished munitions.
Since our entry into the war lend-lease needs for finished
munitions have been provided for by authorizations for transfer
under lend-lease of articles and : ervices in regular appropriations to the War and Navy Departments. The maximum value
of lend-lease transfers of goods and services, other than ships,
which have been so authorized amounts to $35,970,000,000.

This figure is an authorization only. It does not represent
funds earmarked for lend-lease use. Under this transfer authority about $4,000,000,000 of transfers have actually been made.

Amounts provided for by the various appropriation acts
are shown by Table 9.
The regular Army, Navy, and Maritime appropriation acts
which authorize the President to transfer as lend-lease aid
articles and services procured from appropriated funds make

possible a needed flexibility in the allocation of munitions
and ships. The items procured from such funds may be retained for our own forces or they may be transferred to our
allies, depending on the most urgent need at the time the
munitions and ships become available. The assignments are
Maximum Value

of Transfers

recommended by the military experts serving on the Munitions

Authorized for

Assignment Board, and by the Combined Shipping Adjust-

Lend-Lease-36.0

Total Aid to
November 30, 1943
18.6

Lend-lease aid to November 30, 1943, amounted to 18.6 billion dollars. Approximately
four-fifths of the total came from funds appropriated to the President for lend-lease use and
one-fifth War and from appropriations to the War and Navy Departments. Most of the aid from the

Navy Departments' appropriations and A substantial part of the aid from the appro-

pristions
to the President
was in the form of military items, which accounted for 53 percent
of
total lend-lease
aid.
Chart 8

ment Board, not by those officials who administer the general
lend-lease program.
In order to avoid duplication and to make possible a unified

purchasing program for all war needs, all purchasing of lendlease goods and services has been handled by the regular
Government procuring agencies: military items by the War
and Navy Departments, shipping and shipping services by
the Maritime Commission and War Shipping Administration,
foodstuffs and other agricultural products by the War Food
Administration, and other items by the Treasury Department
Procurement Division. The funds appropriated by Congress
to the President for direct lend-lease use are allocated to the
51

50

various procuring agencies, which let the necessary contracts
for the procurement of the goods and services, and expend the

funds as procurement is completed. An accounting of the
allocation and obligation of funds appropriated to the Presi-

Throughout this report, data on lend-lease aid and exports
include items from funds appropriated to the President as well
as from funds appropriated to the War and Navy Departments
and Maritime Commission.

dent is shown in Table 10, by category and agency.
Allocations of lend-lease funds appropriated to the President
to November 30, 1943, amounted to $20,817,835,000, leaving
a balance of $3,865,794,000 still to be allocated and committed
until July 1, 1944. Obligations by procuring agencies, representing primarily contracts awarded, totaled $17,376,653,000.

ALLOCATIONS AND OBLIGATIONS
Lend-Lease Funds Appropriated to the President
March 1941 Through November 30, 1943
Thousands of Dollars

AMOUNTS OF LEND-LEASE AID AUTHORIZED

Allocations

Appropriation Category

Obligations

The amount of lend-lease aid that may be provided under the various

acts is summarized as follows:

Aircraft and Aeronautical Material
Tanks and Other Vehicles

Lend-Lease Appropriations to the President
First Lend-Lease Appropriation
Second Lend-Lease Appropriation

Third Lend-Lease Appropriation (Fifth Supp. 1942)
Fourth Lend-Lease Appropriation

Watercraft

$7,000,000,000
5,985,000,000
5,425,000,000
6,273,629,000

Miscellaneous Military Equipment
Production Facilities
Agricultural and Industrial Commodities
Servicing, Repair of Ships, etc
Services and Expenses

Administrative Expenses
Total

24,683,629,000

Total

Transfers Authorized From Other Appropriations
War Department-Third Supplemental, 1942
War Department-Fourth Supplemental, 1942
War Department-Fifth Supplemental, 1942
War Department-Sixth Supplemental, 1942
War Department-Military Appropriation Act, 1943
Navy Department-Second Supplemental, 1943
Departments other than War-Third Supplemental, 1942

Maritime Commission and War Shipping
Administration
Treasury Department
Department of Agriculture
Other

35,970,000,000

Note.-In addition to the foregoing, Congress has with certain limitations authorized the
leasing of ships of the Navy and merchant ships constructed with funds appropriated to the
Maritime Commission without any numerical limitation as to the dollar value or the number

Table 10

of such ships which may be so leased. (See for example, Public Law 1, 78th Congress, approved
February 19, 1943, and Public Law 11, 78th Congress, approved March 18, 1943.)

Table 9
53
52

2,245,719

354,047

302,903

1,102,488

1,056,404
8,307,086

10,417,606
26,940

512,421
309,157
23,833

20,817,835

17,376,653

674,112
411,583

Obligations

3,248,828

5,259,809
2,586,427

2,710,014

2,087,330

3,900,160
5,188,086

4,378,022

5,748,395

War Department
Navy Department

Total

Total

2,777,143

Allocations

Procuring Agency

$2,000,000,000
4,000,000,000
11,250,000,000
2,220,000,000
12,700,000,000
3,000,000,000
800,000,000

692,721

1,497,751
2,494,249
627,130

1,684,912
2,676,283

Ordnance and Ordnance Stores

3,046,149

22,352

18,916

20,817,835

17,376,653

Lend-Lease Countries and United Nations-Continued
Declared

Chapter 10
Country

STATISTICAL TABLES
STATUS OF NATIONS

Netherlands

New Zealand

Lend-Lease Countries and United Nations

Nicaragua

Norway
Panama

Declared

Country

Argentina
Australia
Belgium

Bolivia
Brazil
Canada

Chile
China

Colombia
Costa Rica
Cuba

Czechoslovakia

Eligible for
Lend-Lease

Agreement

Aid

Signed

Nov.11, 1941
June 13, 1941

May 6, 1941
May 6, 1941
May 6, 1941
May 6, 1941
May 6, 1941
May 6, 1941
May 6, 1941

Egypt

Nov.11,1941

Ethiopia.

May 6,1941
Dec. 7,1942

Fighting France.
French North &
West Africa

Nov.11,1941

Greece

Mar.11,1941
May 6, 1941

Guatemala
Haiti
Honduras
Iceland
India
Iran
Iraq

Liberia

Signed

Signed

Nations

Feb. 23, 1942
June 16, 1942

Sept. 3, 1942

Jan. ,1942

Jan. 30, 1943

Jan. 1, 1942
Apr 27,1943

Dec. 6, 1941

Mar. 3, 1942
Mar. 2, 1943
June 2, 1942

May ,1941
May 6,1941
July 1,1941

June 14, 1943

Feb. 23, 1942

Sept. 3, 1942

May 6, 1941
June 4,1941

Oct. 16, 1941
July 11, 1942

Aug.28,1941

July 1, 1942

Saudi Arabia
South Africa

Feb. 18,1943

Mar.11, 1942
June10, 1942

dom

Jan. ,1942

Mar.11, 1941

Feb. 23, 1942

United States

Nov. 1941

June 11, 1942

Venezuela

May 6,1941
May 6,1941

Jan. 13, 1942

Yugoslavia

Nov.11, 1941

July 24, 1942

U.S.S.R

Jan. 1, , 1942

Table 11

Jan. 1, 1942

Apr. 6, 1942
Jan. 1,1942
Oct. 9, 1942

Sept. 3, 1942
Sept. 25, 1943

July 10, 1942
Sept.16,1941

Jan. 1, 1942
Jan. 1, 1942
Jan. 1, 1942

Feb. 28, 1942

Jan. 1, 1942

Nov.1 16, 1942

Nov.21, 1941

Nov.11, 1941

Jan. 1,1942

Mar 10, 1942

Sept. 9, 1943

May 1,1942
Mar.10, 1942

June 8, 1943

May 6,1941

Mar.18, 1943

Jan. 16, 1943

Jan. 1, 1942
June 5, 1942
55

54

Sept. 3, 1942

Jan. 1,1942
Jan. 1,1942
Jan. 1,1942

Mar. 18, 1942

Jan. 1, 1942

Feb. 2, 1942
Aug. 9, 1943

Jan. 1, 1942

Nov.11,1941
Nov. 7, 1941

United King-

Uruguay

Jan. 1,1942

Jan. 1, 1942
Jan. 1, 1942
Jan. 1, 1942
Jan. 1, 1942
Jan. 1, 1942

July 8, 1942

Philippines

Jan. 1 1942

Nov. 7, 1941
July 11, 1942
Aug. 2, 1941

Signed

Aug.21, 1941
Nov.11, 1941

Poland

Feb. 6, 1943

Jan. 16, 1942

Signed

Signed

Jan. 1, 1942

Mar. 17, 1942

Agreement

Aid

Sept.20, 1941

Peru

Turkey

Nov.13,1942

Luxembourg

Mexico

Declaration

Nov 11, 1941

Jan. 5,1942
May 6,1941
May 6,1941

El Salvador

United

Reciprocal
Lend-Lease
Agreement

May 6, 1941

Dominican Rep.
Ecuador

Lend-Lease

United

Nations
Declaration

Lend-Lease

May 6,1941
May 6,1941
May 6,1941

Paraguay

Reciprocal
Lend-Lease

Lend-Lease
Agreement

Eligible for

Jan. 1,1942

LEND-LEASE EXPORTS

LEND-LEASE EXPORTS-MONTHLY

March 1941 through October 31, 1943

Millions of Dollars

Millions of Dollars

Mar. 1941

46

1,254

24

19

316

1,035

7,480

459

INDUSTRIAL ITEMS
Machinery

345

354

98

Metals

133

22

952

502

376

123

164

18

1,183

Petroleum Products

423

Other

285

1,555

27

208
965

608

97

61

150

432

111

505

783

29

3,526

69

AGRICULTURAL PRODUCTS

TOTAL EXPORTS

442

2,034
5,980

532

126

62

594

3,550

36
6

132

2,168

27

63

1,603

2,298

12

540

3

1,592

2,838

15

543

13,844

12

107

10

18

Dec

119

1

1,604

236

12

23

12

jan. 1942

105

15

142

Oct
Nov

79

Feb

foreign countries but used in the United States, such as trainer planes for the instruction of
United Nations pilots; (2) some ships which leave the United States under their own power;
(3) some goods consigned to United States commanding generals for subsequent transfer to
lend-lease countries; (4) materials which have been transferred but not yet exported; (5) goods
purchased outside the United States and sent directly to lend-lease countries; and (6) some other

items of relatively small amount.

137
155
175

24

18

13

55

26

22

12

194

47

11

329

17

Mar

149

97

Apr

144

164

45

55

May

144

70

37

47

210

110

35

36

14

405

21

424

Jun

425
8

306

175

103

66

59

150

58

56

18

434

Aug

152
214

102

67

18

472

Sept

71

128

98

82

32

562

Jul

222

Oct
Nov

204

191

95

55

16

561

207

112

97

25

608

Dec

167

178

167

94

74

22

535

Jan. 1943

49

26

529

186

46

58

777

Feb

222

Mar

309
353

Apr
May
Jun

211

132

67
67

29

775

210

116

83

37

848

400

177

151

139

100

101

26

425

31

28

791

1,021

392

230

221

147

313

165

113

Aug

370
397

301

190

Sep

942

263

128

30

356

165

3,550

2,168

1,603

543

5,980

13,844

Oct

TOTAL
EXPORTS

Table 13

Table 12

57

56

86

167

25

Jul

The above figures and those in other export tables do not include (1) articles transferred to

2

1,991

30

1,291

7

2,391

87

33

74

2

156

298

145

Sep

67

3

Watercraft

461

407

14

1

213

216

46

1

490

Motor Vehicles and Parts

Aug

35

72

5

Tanks and Parts

19

2

249

1

305

Jul

49

16

2

357

6

3

720

Total

1

761

1,388
2,392

Other Agricultural Products

9

839

57

5

55

187

1

138

293

Foods

4

219

336

1

171

515

Total

1

256

Ammunition
Aircraft and Parts

Total

26

Jun

Ordnance

5

MUNITIONS

1

Apr
May

81

32

989

1,001

LEND LEASE FOOD EXPORTS IN RELATION TO
SUPPLY AND TO U. S. CIVILIAN POPULATION

APPENDICES
Exports in
Ounces Per

Exports in
Exports

Percent. of

Week per

Supply

United States
Civilian

Jan.-Oct.
1943

(Million
Lbs.)
Year

1942

Jan.-

Oct.
1943

Year
1942

Appendix I

Jan.-

Oct.

LEND-LEASE ACT

1943

Further to promote the defense of the United States, and for other purAll Meats (dressed wt. basis)
Beef and Veal (dr. wt. basis)

1,902.9

6.1

9.5

3.3

5.6

100.7

0.3

1.2

0.1

0.3

96.7

0.4

0.01

0.3

1,705.5

11.9

11.7
15.6

3.3

5.0

3,372.6

3.6

3.3

11.0

9.9

14.5

6.6

13.1

0.01

0.04

181.2
469.1

23.0

33.8
13.6

0.3

0.5

9.7

50.1

0.8

2.7

117.6

23.6

757.8

9.5

Lamb and Mutton (dr. wt.
basis)

Pork (dr. wt. basis)

All Milk Products (fluid milk
equiv)

Dry Whole Milk
Dry Skim Milk
Condensed and Evap. Milk
Butter
Cheese

1.0

1.4

0.05

0.14

12.7

0.7

0.3

11.6

1.6

2.2

909.6

11.0

2.6

197.3

17.6

15.5
23.4

1.8

Canned Fish

0.4

0.6

337.1
231.0

4.1

9.0

0.5

0.9

15.9

21.1

0.5

0.7

70.1

0.9

0.2

Fruits:

Dried Fruits
Vegetables:

Canned Vegetables

1.1

0.2

4.1

10.0

0.3

0.7

7.5

16.4

0.1

0.3

322.6

0.2

0.1

1.4

1.0

1,053.4

0.4

1.1

1.2

3.1

Dried Beans

242.4
108.0

Dried Peas

Corn and Corn Products (grain
equivalent)

Wheat and Wheat Products (grain
equivalent)

1 Assumes the supply for the first 10 months of 1943 as ten-twelfths the total estimated

supply for the entire year.

Not the weight of the finished products as processed and delivered for export. The weight
of all lend-lease foods as delivered for export from Jan. 1, 1943, to Oct. 31, 1943 (not including

non-food agricultural products) was reported by the Department of Agriculture as 8,688.4

million pounds.

Table 14

Be it enacted by the Senate and House of Representatives of the United States of

America in Congress assembled, That this Act may be cited as "An Act to
Promote the Defense of the United States."

Section 2.

Eggs, Dried (shell egg equiv.)
Edible Fats and Oils

Canned Fruits and Juices

poses

As used in this Act(a) The term "defense article" means(1) Any weapon, munition, aircraft, vessel, or boat;
(2) Any machinery, facility, tool, material, or supply necessary for
the manufacture, production, processing, repair, servicing, or operation of any article described in this subsection;
(3) Any component material or part of or equipment for any article
described in this subsection;

(4) Any agricultural, industrial or other commodity or article for
defense.

Such term "defense article" includes any article described in this subsection
manufactured or procured pursuant to section 3, or to which the United
States or any foreign government has or hereafter acquires title, possession,
or control.

(b) The term "defense information" means any plan, specification,
design, prototype, or information pertaining to any defense article.
Section 3.
(a) Notwithstanding the provisions of any other law, the President may,
from time to time, when he deems it in the interest of national defense,
authorize the Secretary of War, the Secretary of the Navy, or the head of
any other department or agency of the Government(1) To manufacture in arsenals, factories, and shipyards under their
jurisdiction, or otherwise procure, to the extent to which funds are
made available therefor, or contracts are authorized from time to
time by the Congress, or both, any defense article for the government
59

58

of any country whose defense the President deems vital to the defense
of the United States.
(2) To sell, transfer title to, exchange, lease, lend, or otherwise dispose of, to any such government, any defense article, but no defense
article not manufactured or procured under paragraph (1) shall in any
way be disposed of under this paragraph except after consultation with
the Chief of Staff of the Army or the Chief of Naval Operations of the
Navy, or both. The value of defense articles disposed of in any way
under authority of this paragraph, and procured from funds heretofore
appropriated, shall not exceed $1,300,000,000. The value of such defense articles shall be determined by the head of the department or
agency concerned or such other department, agency, or officer as shall
be designated in the manner provided in the rules and regulations issued
hereunder. Defense articles procured from funds hereafter appropriated
to any department or agency of the Government, other than from funds
authorized to be appropriated under this Act, shall not be disposed of

in any way under authority of this paragraph except to the extent
hereafter authorized by the Congress in the Acts appropriating such

funds or otherwise.

(3) To test, inspect, prove, repair, outfit, recondition, or otherwise to
place in good working order, to the extent to which funds are made
available therefor, or contracts are authorized from time to time by the
Congress or both, any defense article for any such government, or to
procure any or all such services by private contract.
(4) To communicate to any such government any defense information, pertaining to any defense article furnished to such government
under paragraph (2) of this subsection.
(5) To release for export any defense article disposed of in any way
under this subsection to any such government.
(b) The terms and conditions upon which any such foreign government
receives any aid authorized under subsection (a) shall be those which the
Presidential satisfactory, and the benefit to the United States may be
payment or repayment in kind or property, or any other direct or indirect
benefit which the President deems satisfactory.
(c) After June 30, 1943, or after the passage of a concurrent resolution by
the two Houses before June 30, 1943, which declares that the powers conferred by or pursuant to subsection (a) are no longer necessary to promote
the defense of the United States, neither the President nor the head of any
department or agency shall exercise any of the powers conferred by or
pursuant to subsection (a); except that until July 1, 1946, any of such powers
may be exercised to the extent necessary to carry out a contract or agreement with such a foreign government made before July 1, 1943, or before
the passage of such concurrent resolution, whichever is the earlier.
(d) Nothing in this Act shall be construed to authorize or to permit the
authorization of convoying vessels by naval vessels of the United States.
(c) Nothing in this Act shall be construed to authorize or to permit the
authorization of the entry of any American vessel into a combat area in
violation of section 3 of the Neutrality Act of 1939.

Section 4.
All contracts or agreements made for the disposition of any defense
article or defense information pursuant to section 3 shall contain a clause

by which the foreign government undertakes that it will not, without

the consent of the President, transfer title to or possession of such defense
article or defense information by gift, sale, or otherwise, or permit its use
by anyone not an officer, employee, or agent of such foreign government.

Section 5.
(a) The Secretary of War, the Secretary of the Navy, or the head of any
other department or agency of the Government involved shall, when any
such defense article or defense information is exported, immediately inform
the department or agency designated by the President to administer section
6 of the Act of July 2, 1940 (54 Stat. 714), of the quantities, character,
value, terms of disposition, and destination of the article and information
so exported.

(b) The President, from time to time, but not less frequently than once
ninety days, shall transmit to the Congress 2 report of operations the
every under this Act except such information as he deems incompatible subsection with

public interest to disclose. Reports provided for under this House
shall be transmitted to the Secretary of the Senate or the Clerk of the of
of Representatives, as the case may be, if the Senate or the House
Representatives, as the case may be, is not in session.

Section 6.
(2) There is hereby authorized to be appropriated from time to time, out

of in the Treasury not otherwise appropriated, such amounts as

may any be money necessary to carry out the provisions and accomplish the purposes

of this Act.

(b) All and all property which is converted into money received Direcsection money 3 from any government shall, with the approval of the
tor under of the Budget, revert to the respective appropriation or appropriations article

of which funds were expended with respect to the defense shall be or
defense out information for which such consideration is received, and funds
available for expenditure for the purpose for which such expended funds are

were appropriated by law, during the fiscal year in which such funds so
received and the ensuing fiscal year; but in no event 1946. shall any
received be available for expenditure after June 30,

Section 7.
The Secretary of War, the Secretary of the Navy, and for the the head disposition of the
department or agency article shall or defense in all information contracts or agreements fully protect the rights of such all

of citizens any defense of the United States who have patent rights in and to of any and the

information which is hereby authorized to be disposed the owner
payments article or collected for royalties on such patents shall be paid to

and holders of such patents.
61

60

Section 8.
The Secretaries of War and of the Navy are hereby authorized to purchase
or otherwise acquire arms, ammunition, and implements of war produced

within the jurisdiction of any country to which section 3 is applicable,
whenever the President deems such purchase or acquisition to be necessary
in the interests of the defense of the United States.

Appendix II

Section 9.

The President may, from time to time, promulgate such rules and regulations as may be necessary and proper to carry out any of the provisions of
this Act; and he may exercise any power or authority conferred on him by
this Act through such department, agency, or officer as he shall direct.
Section 10.

Nothing in this Act shall be construed to change existing law relating
to the use of the land and naval forces or the United States, except insofar
as such use relates to the manufacture, procurement, and repair of defense

articles, the communication of information and other noncombatant
purposes enumerated in this Act.

Section 11.

If any provision of this Act or the application of such provision to any
circumstance shall be held invalid, the validity of the remainder of the
Act and the applicability of such provision to other circumstances shall
not be affected thereby.
APPROVED MARCH 11, 1941.

On March 11, 1943, after affirmative votes of 407-6 in the House of
Representatives and 82-0 in the Senate, the President signed the Act extending the Lend-Lease Act for 1 year.

BRITISH MASTER AGREEMENT
Agreement Between the Governments of the United States of America
and of the United Kingdom on the Principles Applying to Mutual Aid in
the Prosecution of the War Against Aggression, Authorized and Provided
for by the Act of March 11, 1941.

Whereas the Governments of the United States of America and the
United Kingdom of Great Britain and Northern Ireland declare that they
are engaged in a cooperative undertaking, together with every other nation
or people of like mind, to the end of laying the bases of a just and enduring
world peace securing order under law to themselves and all nations;
And whereas the President of the United States of America has determined, pursuant to the Act of Congress of March 11, 1941, that the defense
of the United Kingdom against aggression is vital to the defense of the
United States of America;
And whereas the United States of America has extended and is continuing to extend to the United Kingdom aid in resisting aggression;
And whereas it is expedient that the final determination of the receives terms
and conditions upon which the Government of the United Kingdom
-h aid and of the benefits to be received by the United States of America is
in return therefor should be deferred until the extent of the defense aid and
known and until the progress of events makes clearer the final terms United
conditions and benefits which will be in the mutual interests of the
States of America and the United Kingdom and will promote the establishment and maintenance of world peace;
And whereas the Governments of the United States of America and the
United Kingdom are mutually desirous of concluding now a preliminary certain
in regard to the provision of defense aid and in regard to such
considerations agreement which shall be taken into account in determining been in all

and conditions and the making of such an agreement has which it
terms duly authorized, and all acts, conditions and formalities the making
respects have been necessary to perform, fulfill or execute prior to the United

of may such in conformity with the laws either of fulfilled
States of an America agreement or of the United Kingdom have been performed,

or executed as required;

The undersigned, being duly authorized by their respective Governments
for that purpose, have agreed as follows:
63

62

Article I
The Governments of the United States of America will continue to supply
the Government of the United Kingdom with such defense articles, defense
services, and defense information as the President shall authorize to be
transferred or provided.

aid furnished under the Act of Congress of March 11, 1941, the terms and
conditions thereof shall be such as not to burden commerce between the
two countries, but to promote mutually advantageous economic relations
between them and the betterment of world-wide economic relations. To
that end, they shall include provision for agreed action by the United States

Article II

of America and the United Kingdom, open to participation by all other
countries of like mind, directed to the expansion, by appropriate interna-

The Government of the United Kingdom will continue to contribute to
the defense of the United States of America aud the strengthening thereof
and will provide such articles, services, facilities of information as it may
be in a position to supply.
Article III

tional and domestic measures, of production, employment, and the exchange

The Government of the United Kingdom will not without the consent of
the President of the United States of America transfer title to, or possession
of, any defense article or defense information transferred to it under the Act
or permit the use thereof by anyone not an officer, employee, or agent of the
Government of the United Kingdom.

Article IV
If, as a result of the transfer to the Government of the United Kingdom of
any defense article or defense information, it becomes necessary for that
Government to take any action or make any payment in order fully to protect any of the rights of a citizen of the United States of America who has
patent rights in and to any such defense article or information, the Government of the United Kingdom will take such action or make such payment
when requested to do so by the President of the United States of America.

Article V

and consumption of goods, which are the material foundations of the
liberty and welfare of all peoples; to the elimination of all forms of discriminatory treatment in international commerce, and to the reduction of
tariffs and other trade barriers; and, in general, to the attainment of all the
economic objectives set forth in the Joint Declaration made on August 12,
1941, by the President of the United States of America and the Prime Minister of the United Kingdom.
At an early convenient date, conversations shall be begun between the

two Governments with a view to determining, in the light of governing
economic conditions, the best means of attaining the above-stated objectives by their own agreed action and of seeking the agreed action of other
like-minded Governments.

Article VIII
This Agreement shall take effect as from this day's date. It shall continue in force until a date to be agreed upon by the two Governments.
Signed and scaled at Washington in duplicate this 23d day of February,
1942.

For the Government of the United States of America:
SUMNER WELLS,

[SEAL]

The Government of the United Kingdom will return to the United States
of America at the end of the present emergency, as determined by the President, such defense articles transferred under this Agreement as shall not
have been destroyed, lost or consumed and as shall be determined by the
President to be useful in the defense of the United States of America or of
the
Western Hemisphere or to be otherwise of use to the United States of
America.

Acting Secretary of State of the
United States of America.

For the Government of the United Kingdom
of Great Britain and Northern Ireland:
HALIFAX
[SEAL]

His Majesty's Ambassador Extraordinary

and Plenipotentiary at Washington

Article VI
In the final determination of the benefits to be provided to the United
States of America by the Government of the United Kingdom full cognizance shall be taken of all property, services, information, facilities, or
other benefits or considerations provided by the Government of the United
Kingdom subsequent to March 11, 1941, and accepted or acknowledged by
the President on behalf of the United States of America.

Article VII
In the final determination of the benefits to be provided to the United
States of America by the Government of the United Kingdom in return for
65

64

I

Appendix III

MODUS VIVENDI ON RECIPROCAL AID IN
FRENCH NORTH AND WEST AFRICA
The Government of the United States and the French Committee of National Liberation desirous of lending each other the reciprocal aid necessary
to the prosecution of the joint war effort are agreed upon the following
provisional Modus Vivendi which will, following signature, be applicable
in French North and West Africa:
I. With reference to supplies and services urgently needed to maintain the

French war effort, which the United States has furnished to the French
authorities and will continue to furnish, within limitations of need and
supply, it is understood that:
(a) Military aid, including supplies for railroads, docks, public utilities
and other facilities to the extent that such supplies are determined to be
military aid is made available on a straight Lend-Lease basis, in the light
of the considerations set forth in Paragraph V. Such aid does not include
the pay and allowances of French forces. The United States reserves the
right to require the return of any articles furnished under this paragraph
and not lost, destroyed or consumed,

(i) if at any time it is decided that such restitution would be an ad
vantage in the conduct of the war, or
(ii) if at the end of the present emergency as determined by the
President of the United States, the President shall determine that such
articles are useful in the defense of the United States or of the Western
Hemisphere, or to be otherwise of use to the United States.

(b) For all civilian supplies imported from the United States, the French
authorities will pay upon the basis of prices to be agreed. Payment will
be made, currently at convenient intervals, in dollars, to an appropriately
designated account in the United States.
(c) The distinction between civilian and military aid, supplies and services, where such distinction may be necessary, will be made by agreement.

(d) All aid furnished under Paragraph I (a) and I (b) will be made
available by the United States under the authority and subject to the terms
and conditions provided for in the Act of Congress of 11 March, 1941, as
amended (P. L. 11, 77th Congress, 1st Session).
II. With reference to supplies and services urgently needed to maintain
the United States war effort, which the French authorities have furnished

to the United States and will continue to furnish, within limitations of
need and supply, it is understood that:
(a) The French authorities undertake to make available to or for the use
of the armed forces and other governmental agencies of the United States,
as reverse Lend-Lease aid to the United States, on a straight Lend-Lease
basis, when it is found that such aid can most effectively be procured in
territory under their control,
(i) military equipment, munitions, and military and naval stores;
(ii) other supplies, materials, facilities and services for United States
forces, including the use of railway and port facilities, but not including
the pay and allowances of such forces nor the administrative expenses
of American missions;
(iii) supplies, materials, facilities and services, except for the wages
and salaries of United States citizens, needed in the construction of
military projects, tasks and similar capital works required in the common war effort, to the extent that French North or West Africa is the
most practicable source of such supplies, materials, facilities or services;
(iv) such other supplies, materials, services or facilities as may be
agreed upon as necessary in the prosecution of the war, but not including exports of civilian supplies to the United States from North and
West Africa.
While the French authorities retain, of course, the right of final decision,
subject to the obligations and arrangements they have entered into for the
prosecution of the war, decisions as to the most effective use of resources for
shall, so far as possible, be made in common, pursuant to common plans
winning the war.
(b) All civilian supplies exported from French North and West Africa
the United States will be paid for on the basis of prices to be agreed.
Payment to will be made currently, at convenient intervals, in dollars, to an
and
appropriate designated account in the United States.

(c) The distinction between civilian and million enpolies
services, where such distinction may be necessary, will be made by agreement. In order to obtain the supplies and services included within the officials scope
of (d) Paragraph II (a), duly authorized United States officers or other the French
wills submit their requests to the official services dul designated by Casablanca,

authorities. These services will be established in Algiers, and
Tunis, Dakar, and other places where it may be found practicable of
Oran, convenient to establish organizations for facilitating the transfer reciprocal aid.

For use in those exceptional cases, and particularly in cases of local to

(c) of supplies, in which it is agreed to be more practicable by direct
procurement such reverse Lend-Lease supplies, facilities and services in Paragraph

secure rather than by the method of procurement set forth franc account in
II purchase, it is agreed that the French authorities establish a officer of

(b), banking institutions and in the name of a designated aid conthe convenient United States to facilitate the provision of reverse Lend-Lease as
67

66

templated by Paragraph II (a). The French contributions to this account
will be mutually agreed upon from time to time in the light of the changing
needs of the American forces, and other appropriate factors. Such an
account will not be used for the payment of wages and salaries of American
military or civilian personnel, nor for administrative expenses of American
missions. Estimates of the franc requirements of the United States will be
submitted to designated French authorities from time to time, as may be
found convenient. The French authorities will be kept fully and currently
informed of all transactions in this account.
III. In exceptional cases, and when they deem it preferable, the American
military forces, or other agencies of the United States Government, may
continue to use their present practice of acquiring francs against dollars
from the French authorities.
IV. Adequate statistical records will be kept of all goods and services
exchanged as mutual aid under paragraphs I and II above.
V. The provisions of this modus vivendi correspond to a desire to reduce
to an appropriate minimum the need of either party for currency of the other
party. Provisions which call for payments in dollars have been decided
upon in view of the special situation arising from accumulated dollar
balances and availabilities of dollar funds due to the presence of United
States troops in French North and West Africa. Revision of the payment
provisions of this modus vivendi will be made should the situation require.
Signed at Algiers this 25th day of September, A. D. 1943.
For the Government of the United States of America:
/s/ ROBERT MURPHY

For the French Committee of National Liberation:
/s/ MASSIOLI

/s/ JEAN MONNET

Appendix IV
EXECUTIVE ORDER ESTABLISHING FOREIGN

ECONOMIC ADMINISTRATION
By virtue of the authority vested in me by the Constitution and the
statutes of the United States, as President of the United States and Commander in Chief of the Army and Navy, and in order to unify and consoli-

date governmental activities relating to foreign economic affairs, it is
hereby ordered as follows:
1. There is established in the Office for Emergency Management of the
Executive Office of the President the Foreign Economic Administration
(hereinafter referred to as the Administration), at the head of which shall
be an Administrator.
2. The Office of Lend-Lease Administration, the Office of Foreign Relief and Rehabilitation Operations, the Office of Economic Warfare (together with the corporations, agencies, and functions transferred thereto Ecoby Executive Order No. 9361 of July 15, 1943), the Office of Foreign
nomic Coordination (except such functions and personnel thereof as the

Director of the Budget shall determine are not concerned with foreign
economic operations) and their respective functions, powers, and duties
are transferred to and consolidated in the Administration.
3. The Administrator may establish such offices, bureaus, or divisions of
in the Administration as may be necessary to carry out the provisions
this order, and may assign to them such of the functions and duties of the
offices, agencies and corporations consolidated by this order as he may
deem desirable in the interest of efficient administration.

4. The and functions of the Administration shall be exercised
in conformity powers with the foreign policy of the United States as defined Admin- by

the Secretary of State. As soon as military operations permit, the of
istration shall assume responsibility for and control of all activities
the United States Government in liberated areas with respect to supplying
the requirements of and procuring materials in such areas.
All the personnel, property, records, funds (including all unexpended
5. of appropriations, allocations, or other funds now available), con- of
balances liabilities, and capital stock (including shares of stock) of this
the tracts, offices, assets, agencies, and corporations consolidated by paragraph with 2 the

order transferred to the Administration for use in connection In the
exercise are and performance of its functions, powers, and duties. shall be to such case

of capital stock (including shares of stock), the transfer Administrator shall
corporation, office, officer, or person as the such personnel as

agency, The Administrator is authorized to employ Administration
designate. may be necessary in the performance of the functions of the

and in order to carry out the purposes of this order.
69

68

6. No part of any funds appropriated or made available under Public Law
139, approved July 12, 1943, shall hereafter be used directly or indirectly by
the Administrator for the procurement of services, supplies, or equipment
outside the United States except for the purpose of executing general economic programs or policies formally approved by a majority of the War
Mobilization Committee in writing filed with the Secretary of State prior
to any such expenditure.
7. All prior Executive Orders insofar as they are in conflict herewith are
amended accordingly. This order shall take effect upon the taking of office
by the Administrator, except that the agencies and offices consolidated by
paragraph 2 hereof shall continue to exercise their respective functions
pending any contrary determination by the Administrator.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
September 25, 1943.

Appendix V
EXECUTIVE ORDER ESTABLISHING
OFFICE OF LEND-LEASE ADMINISTRATION
By virtue of the authority vested in me by the Constitution and statutes
of the United States, and particularly by the Act of March 11, 1941, entitled 'An Act further to promote the defense of the United States and for
other purposes" (hereafter referred to as the Act), and by the Defense Aid
Supplemental Appropriation Act, 1941, approved March 27, 1941, and acts
amendatory or supplemental thereto, in order to define further the functions
and duties of the Office for Emergency Management of the Executive Office
of the President in respect to the national emergency as declared by the
President on May 27, 1941, and in order to provide for the more effective
administration of those Acts in the interests of national defense, it is hereby
ordered as follows:
1. There shall be in the Office for Emergency Management of the Executive Office of the President an Office of Lend-Lease Administration, at the
head of which shall be an Administrator, appointed by the President, who
shall receive compensation at such rate the President shall approve and,
in addition, shall be entitled to actual and necessary transportation subsistence, and other expenses incidental to the performance of his duties.
2. Subject to such policies as the President may from time to time prescribe, the Administrator is hereby authorized and directed, pursuant to
Section 9 of the Act, to exercise any power or authority conferred upon the
President by the Act and by the Defense Aid Supplemental Appropriation
Act, 1941 and any acts amendatory or supplemental thereto, with respect
to any nation whose defense the President shall have found to be vital to
the defense of the United States: Provided, That the master agreement with

each nation receiving lend-lease aid, setting forth the general terms and
conditions under which such nation is to receive such aid, shall be negotiated by the State Department, with the advice of the Economic Defense
Board and the Office of Lend-Lease Administration
3. The Administrator shall make appropriate arrangements with the
Economic Defense Board for the review and clearance of lend-lease trans- in
actions which affect the economic defense of the United States as defined
Executive Order No. 8839 of July 30, 1941.
4. Within the limitation of such funds as may be made available Assistant for that

the Administrator may appoint one or more Deputy or Assistant
purpose, Administrators and other personnel, delegate to such Deputy or and make

Administrators any power or authority conferred by these orders, to
for such supplies, facilities, and services as shall be necessary the Office

provision out the provisions of this Order. In so far as practicable, services and
of carry Lend-Lease Administration shall use such general business

facilities as may be made available to it through the Office for Emergency
Management. Executive Order No. 8751 of May 2, 1941, establishing the Division revoked. of

Defense 5. Aid Reports and defining its functions and duties, is hereby

FRANKLIN D. ROOSEVELT

THE WHITE HOUSE,
October 28, 1941.
71

70

GOVERNMENT PRISTISS OFFICE.

March 24, 1944 287

10:26 a.m.

Ansel F.

Luxford:

Yes.

Operator:

Go ahead.

L:

Hello, Mr. Secretary.

HMJr:

Luxford, I just talked to Colonel Pasco in
General Marshall's office and he said it's all
right to show the Vice President the material
we got on the Argentine from G-2.
Wonderful.

HMJr:
L:

HMJr:

We have his clearance.

Would Mrs. Klotz send it down to me? Or shall
I come up and get it?
Uh

She has the -- the Falange memo.
HMJr:

Just a minute -- I'll -- I'll -- you just stay

on the wire.

I:

All right.

Operator:
HMJr:

Yes, sir.
Put Mrs. Klotz on this wire.

Operator:

Mrs. Klotz is on the phone, Mr. Morgenthau.

L:

HMJr:

L:

Operator:

Shall I interrupt her?
I can tell her, Miss

You -- uh -- when she's -- well, when I'm
through with this meeting, remind me and I'11
talk to her.

All right.
All right.

TO:

Secretary Morgenthau

This is the memo I told you

about. I am sending it along
anyway.

4s

Fred Smith
Room 290

288

1

289

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE

Secretary Morgenthau

March 24, 1944

FROM Fred Smith

I will now tell you the rest of the story about Procurement, and why we haven't done anything in the Public Relations
way about it.

For two months I have been trying to get a story written
that would explain the efficiency with which Procurement is

operating. I have never been able to get such a story, nor
even the facts to make such a story.
You will recall that we discussed a month or so ago, the

possibility of getting a regular bulletin out of Procurement
to keep everybody, particularly Congressmen, informed con-

cerning what goes on. I could not get the material for that
bulletin.
I have tried to get John to help me develop a story, and
he has continually discouraged any publicity.

I therefore concluded that the reason we can't get any
facts and figures, and the reason we can't tell a good story
about Procurement, is because there isn't a good story there.

I talked to John yesterday for half an hour, and he

finally admitted that such was the case. He says it is getting

290

-2-

better, but it is obvious that it is not getting enough
better.

I then discovered, which I hadn't known before, that
Treasury Procurement is the biggest merchandising business

in the entire world. By last December it was already doing
14 million dollars a month.
Under the present circumstances, we have the biggest
merchandising business in the world being run by amateurs.

I think it is time that you considered turning this job over
to professionals, the way you did the Bond drives.

Before reporting this to you, I decided this morning
to check with Bob McConnell, whom I thought might shed some

light on what other people think of Treasury Procurement.

I find he has reported a number of things to John, and to
Danny Bell, and is greatly worried about the Procurement
situation.
From my own hunches, and from what McConnell says, I

am convinced that we are highly vulnerable politically,
unless an honest effort is made to grow up to the job that
lies ahead.

McConnell suggests that you draft some top merchandising

men to reorganize the shop. I am for that, if for no other

291

-3-

than political reasons. It at least indicates that you are
trying to do the job right, and will make it hard for Clayton
and Jones to move in, not to mention Congress. And I am
convinced that Clayton and Jones and Congress will all move

in if we continue to run a super Sears Roebuck along the
lines of an overgrown peanut stand.

I know this is all very rough talk, and I am sticking
my neck out again. But you are the General and you will take
the rap when hell breaks loose. The least that can happen

is that Clayton will go to Byrnes with a bill of complaints,
asking that Treasury be relieved of Procurement; and with
the pipe-lines to the newspapers which the Jones office has,

it will make a mess for you, it will embarrass you with Byrnes,
and eventually with the President.

I recommend that you step in to this picture and do

something about it quickly. The act of so doing will be our
best Public Relations approach.
Love and kisses,

FBC

292
March 24, 1944
12:01 p.m.
HMJr:

Hello.

John

Sullivan:

Yes, Mr. Secretary.

HMJr:

John, I just want to tell you I want a report from
you Monday at 9:30 on this Procurement. The purpose
is -- calling -- I'm calling half a dozen people in
the Treasury together and I want to know where we

stand.

You mean on the general picture?
HMJr:

On the general picture.
Fine.

HMJr:

I mean I -- I don't know -- before I went away,

which was two months ago, I gave you carte blanche
to go ahead and get anybody you wanted.

S:

That's right.

HMJr:

Now, I want to know what's happened in the last
two months.

I'll be delighted to give you the story.
And I want the facts -- where are we' as of today?
S:

Yeah.

If you please.

That's right. Well, I'm glad, because I was
going to suggest this very thing.
Right.

And I'll want to have Cliff Mack and Loeb and
Fry over too.
HMJr:

Oh, do you want them present?

I think that it would be helpful to you.

Well, if that's who you want, all right.

-Yes, I -- I -- I think that -- I -- I think that

it will give you a better picture of just what's

going on.
HMJr:

Well, I want to -- I want to know what's been
happening in the last two months.

That's right.
HMJr:
S:

All right.
We'll do so.

HMJr:

Thank you.

S:

Thank you.

293

294

March 24, 1944
12:03 p.m.
HMJr:

Hello.

Operator:

I have
Stetson.
and
theMr.
next
in line.He's in charge of the bank

HMJr:

Who?

Operator:

Stetson, S-t-e-t-s-o-n.

HMJr:

Oh, yes.

Operator: All right?
HMJr:

Right. Hello.

Operator:

Go ahead.

HMJr:

Hello.

Mr.

Stetson:

Hello.

HMJr:

Mr. Stetson.
Oh, yes.

HMJr:

This is Henry Morgenthau, Jr.

S:

How do you do, Mr. Secretary?

HMJr:

Fine. How are you?

S:

First rate, thank you.

HMJr:

Mr. Stetson, what I wanted was in a sense both

official and personal, and I wonder if I couldn't

tell you my troubles and then you pass them on to

Mr. Potter?
S:

Yes, indeed.

HMJr:

As I understand, his troubles are all located in

S:

That's right. (Laughs)

HMJr:

So, it's not....

his heel.

-2Unfortunately, and he may have to have another
operation.

Yes. Well, I think you may be familiar with the

way Mr. Potter helped me last year.
Yes, I am.

And I've got another problem now and I'd like
to get some advice both from you and from him.
S:

HMJr:

All right, sir.
You know, the Treasury Department has Procurement

Division which is going to be thrown all this
surplus property.

S:

HMJr:

S:

HMJr:

Yes.

And what we need down here is a couple of very
good merchandising men to help us.
Yes.

I know everybody is busy and all that sort of
thing, but I wondered if you people -- you and
Mr. Potter -- would think over who there is in
the United States who might be available, who

know the merchandising business.
S:

Yes.

And who would not be interested in buying horses

or motorcycles or this or that or the other thing
from the Army or the Navy. You see?

S:

HMJr:

Yes, I see.
But who could sit on the Government's side and

help us and see that it is done in an honest way
and not

S:

That's right.
.... the way it was in the last war.
Right.

And if you would put your heads together and

give me a little line -- not too for distant -I'd appreciate it.

295

296
3- -

I'11 try and phone you sometime on Monday.
Could you do that?

Yes.
I'm going up to see Mr. Potter today -tomorrow

S:

HMJr:

Yes.

or Sunday and I'11 have a talk with him.

S:

In the meantime, I'll give it a good deal of
consideration.

HMJr:

S:

You -- you -- you're somewhat familiar with

it, aren't you?

Oh, yes.

HMJr:

Good. Would it be possible to get a call

S:

I'm not 80 sure about that but I'11 try to.

HMJr:

S:

HMJr:
S:

HMJr:
S:

HMJr:
S:

from you before 9:30 Monday?

Would you? Because I'm having a meeting on it
at 9:30.

Yes, I will.
Right.

Now, may I ask you one question?

Anything you want. Anything you want.
I know you would not want a man like I'm
mentioning now, like the head of Sears Roebuck,

but do you object if I talk to him about this?
That's quite all right.

I mean, because he may know of someone. Don't
you know?

as I say, I don't know whether you'll
Yes, remember, but it was I who brought Mr. Nelson

down here in the first instance.

That's right.

--

297

To help me on Procurement.

Yes, that's right.
And he'd only been here a month when the
President took him away from me.

That's right. Well, now, as a suggestion --

he would -- he would have some pretty good
ideas but I would like, also, your permission
for me to talk to General Wood about this.
HMJr:

Well, I
I wouldn't do it without your permission.
It's all right, but I don't know how sympathetic

General Wood would be.

Well, he'd be very sympathetic with my ideas on

it. I'm sure of that.

Well....
Anyway, leave that on my doorstep.

I'll leave that with you.
I'm -- I get your idea and you leave that on my
doorstep, but I may want to talk to one or two
of the heads of big enterprises to get some idea
from them about it.

You see, the way -- what I'd most like you to
picture it is that a man who is in active business -I don't know whether I could get him. On the other
hand they might be willing to come down and help us

get this thing started.

Well, you see there are a lot of good salesmen today
who are good merchandise men

Yeah.

.... who have no interest in buying.
That's right.
And I had in mind discussing that -- this situation
with one or two heads, like
one
or two of the Cotton
that kind and ask them
of

Mill

heads,

or

-5Cont'd.

if they had some good salesmen who were good

merchandising men that might be interested in

doing a job of this kind. How long would you

want them?
HMJr:

Well, your guess is -- I always like to paint
the picture a little blacker -- I mean.
That's right.

HMJr:

....I'd rather talk to them in terms of a

minimum of a year.
S:

Well, that would be what I would think, a

minimum of a year.
HMJr:

Yes.

And is this a dollar a year job or pay job.
Well, what we can pay, I imagine, is maybe

eight or nine thousand dollars, which is

I see.

....

which may or may not be of interest to

them.

Yes, I see.
HMJr:

Personally, I would much rather pay them.

I think you're right. And then you'r -- it's

a "hire and fire" thing then.
HMJr:

Yes.

S:

All right. Well, I'll -- I've got your idea

about it and I'll get busy on it today and
I'11 talk to him about it either tomorrow or

Sunday and I'11 try and call you before 9:30

Monday morning.

And if you'll call me on District 2626.
District 2626.
Yeah. I have my own telephone operators and
my own private switch board.

298

-6-

S:

Oh, that's fine. Well, I'11 do that.
Thank you so much.

First rate. Glad to hear from you and I hope
we can be of some service, but I don't know,

but I'll make the effort.

And my regards to Mr. Potter.

Indeed I will, Mr. Secretary.
HMJr:
S:

Thank you.

Good bye, sir.

299

Friday, March 24, 1944

300

Luncheon with Harold Smith, (Director of the Budget)

Paul Appleby, D. W. Bell, William Heffelfinger, and Fred Smith.
The purpose of the meeting was to discuss the possibility
of the President taking a stand on Government economy, and to

ascertain the possibility of cutting the deficit for fiscal
year 1944. H. Smith was not very cooperative. He said that
through Blake of the White House (Publicity) they were dis-

cussing the possibility of having the President make public
statements with budget revisions for various departments.
These Budget revisions are being made constantly, and the

President seldom pays any attention to them. However, there

will be some substantial revisions in the future, and this will
be an opportunity for the President to talk about economy.

Both representatives of the Budget discussed the diffi-

If

culties involved in curtailing government costs, to which the
Secretary replied that it was always difficult and always
entailed political problems, but now more than ever it was
worth the trouble.

The Secretary and Bell spoke particularly of such things

as roads, rural electrification, rehabilitation of farms as
being likely subjects for curtailment of expenses during the
Mar. Mr. Appleby said that this would set the President

-

301

March 24, 1944

-2 against certain members of Congress, and would endanger his
relationships.

The Secretary said that the President might be provided

with a list of likely possibilities for curtailment of expenses.
Then the President might discuss these with the Congressmen

involved and then get their cooperation. In this way, there
would be a solid Government front for economy, which would be
8 good thing.

The Secretary asked what was being done by the budget

to find possible economies and Appleby replied that the Budget

had inspectors in all departments. He said some of these were
received cooperatively, and some were resisted. He said that
some money was saved by this method, but he indicated that the

inspectors were more concerned with incidental administration

wastefulness than in the propriety of large expenditures. The
Budget men brought up again that it is very difficult to get
very deeply into the reasons for expenditures, and exercise any
control over them.

The Secretary asked if the Budget was making any inspections
of Lend-Lease, pointing out that some Lend-Lease goods might

be needlessly shipped. Smith said the Budget was informed of
Lend-Lease transactions, but exercised no control over them.

302

are 24, 1944

-3-

H. Smith indicated that much of what the Secretary was

talking about seemed to be in Byrnes' province, indicating,
however, that he did not approve of Byrnes taking this upon
himself.

After the luncheon, the Secretary seemed to think that not
very much progress had been made, but said that a lack of

progress did not discourage him in the least, and that he had
decided to tackle the problem from another angle.
He asked Heffelfinger to make a memorandum pointing out

likely prospects for curtailment of expenditures and have that
ready next Wednesday.

The possibility was also discussed of having Baruch and

Byrnes to lunch to discuss the project.

303
March 24, 1944
2:13 p.m.

HMJr:

Joe.

Joe

'Connell: Yes.
HMJr:
I don't know whether it's available -- this
hearing where they criticise Procurement

0:

Ah

HMJr:

There's been some hearing going on.

0:

Yeah.

HMJr:

Yeah.

0:

Yeah.

HMJr:

0:

Now, if you -- I wish you could find out what
the criticisms are.
Sure.

HMJr:

And list them for me so I can have them Monday
morning when I have this meeting.

0:

Right.

Then I can fire those at Procurement.
0:

Yes. Yes.

HMJr:

I can say, "Now, they said this, they said this,
they said this. What's the answer?"

0:

Right. I can get that for you, I'm sure. That

was before Ways-and-Means Committee yesterday and

the day before.

HMJr:
0:

HMJr:

Are you telling me or asking me?

Oh, no. I'm telling you.
I'm glad -- I'm glad to listen.
All right, I'11 get them for you and I'11 have
them to you tomorrow.
Are you alone?

-2Well, I'm in my outer office. I have someone in
my office, so I stepped out.
I'll see you before I go.

All right, sir. Fine.

304

March 24, 1944
2:21 p.m.
HMJr:

Hello.

Tully:

Hello. Yes, Mr. Secretary.

HMJr:

May I thank you again for your usual efficiency?
Thank you, sir.

HMJr:

Just a little thing -- I think it would be nice
if the President would sign a little sheet of
paper making Pehle formally Director.

T:

HMJr:

Uh huh.

I've written such a thing. Could I send it
over?

T:

Yes. Certainly.

HMJr:

Well, then, I'll send it over.

T:

All right. Fine.

HMJr:

And -- any other news for me?

No, Mr. Secretary, nothing yet.
Right.

I haven't had a chance to talk to him about

that other but I will just as soon as I

HMJr:

Right.

T:

....have a minute.

HMJr:

And I think there's a cable coming over which
Hull and Crowley and I okayed which goes to
Churchill.

T:

Uh huh.

HMJr:

And if that comes to you, 1f you could accelerate

it, I'd appreciate it.
All right. Fine. If you could get it over pretty
soon, I think we could.

305

-2HMJr:

Well, I'll see right now where it 18.

All right. Fine.
MJr:

What
do you call pretty soon -- between now
and three?

Yeah. That would be fine.
HMJr:

Right.

All right, Mr. Secretary. Bye.

306

307
THE WHITE HOUSE
WASHINGTON

March 24, 1944

The appointment of John W.

Pehle as permanent Executive Director

of the war Refugee Board is hereby
approved.

SECRET

MAR 24 1944

ORANDUM FOR THE SECRETARY

Pursuant to your arrangement, Mr. Pehle and I saw
Vice President Wallace this afternoon regarding Argentina.
We outlined to him our concern regarding the
Argentine situation; the substance of the long memorandum
reviewing the situation which we recently prepared; the
material we obtained from General Marshall; and the data
furnished to us by the State Department concerning the

views of the Combined Boards on Argentina.

The Vice President was very sympathetic and well
informed about conditions in Argentina and throughout Latin
America. He stated that no one needed to emphasize to him

the ravity of the Argentine situation. He felt that

centina was a serious threat to hemispheric solidarity

and defense. Using his words, "Unless something is done
about Argentina, we can write the whole of Latin America
off the books".

We pointed out to him that the crux of the economic
sanction program against Argentina pivoted on the food
situation. He stated that in his opinion a ten percent
reduction in our meat rations would not hurt the American

diet in any respect and he felt that it could be sold to

the American public if the issue was made clear.

We told him that State on March 10, 1944 had
requested the Combined Food Board again for its views on

the food situation; that according to Stettinius we had

discovered new facts about the food inventories in Great
Britain, and how important it was for the American representatives on the Combined Food Board to appreciate the
danger inherent in the Argentine situation.

309

-He agreed with us and the question came up as to
was he could do to help. He wondered upon what basis
he could take the matter up with Marvin Jones and concluded that at least he might do so on a personal basis.
Te then suggested that you invite both him and Marvin
Jones over to lunch some day next week and that the two

of you could give Jones the "feel" of the Argentine picture. We told him that this sounded like a good idea and
that we would raise the matter with you.

The Vice President was most cordial. He spent
forty minutes with us and left when he did only because
he was signaled that the Senate was voting on some
measure.

govt

310

March 24, 1944
MEMORANDUM FOR THE SECRETARY

Mr. Blough

From:

Subject: Taxes.

(For your information; no action
required)

1. Drafting of the simplification bill continues.

The end is not yet in sight.

2. There is strong Ways and Means Committee

interest in "doing something" about declarations of
estimated tax in the simplification bill. Several ideas
are in the study stage.
3. Strong complaints, including some from Congress-

men, to the greatly increased "cabaret" tax (formerly
5 percent of total charge, now 30 percent) are being
received by Captain Bliss, head of the Miscellaneous
Tax Unit.

4. Mexican representatives are expected soon
(perhaps are now here) to confer on a treaty to eliminate
double taxation. The British conversations are expected
to begin in London as soon as the Mexican conversations
are completed and transportation can be secured.

Note

311

MERORANDUM FOR THE SECRETARY.

March 24, 1944.

Mail Report

Form W-2 had the spotlight in this week's mail. We
were inundated by letters from officials of endowed col-

leges, charitable institutions, and civic organizations,
(and from one State governor) requesting that charitable
contributions (up to 15% of income) be deductible prior

to the levying of the withholding tax. Many of the let-

ters were evidently part of a campaign by the Association
of American Colleges directed toward providing for this

deduction when simplification measures are adopted.

Other tax mail was in line with that of preceding

weeks. Some asked questions about individual obligations
or refunds that are due, a few objected to present high
rates, and 17 submitted completed returns for 1943.

Around 20 copies of the editorial in Collier's straggled
in, and there were also several letters urging simplified
tax forms. Only now and then did a writer commend the

new form.

Bond mail, though a little heavier this week, was

still colorless. Four or five correspondents enclosed
clippings about Father Coughlin's statement that those
holding bonds in excess of two thousand dollars might
just as well burn them, as they would not be redeemed.
Usually the writers asked denial of his statement, and

some of them demanded that the Government prohibit further

comments from "this agitator" as one writer called him.

Only 49 bonds were submitted for redemption through

this office. The number of complaints about delays was
again exceptionally low, those from personnel of the War
Department amounting to 8.

312

-2- Memorandum for the Secretary.

March 24, 1944.

Much of the miscellaneous mail concerned check prob-

lems of one kind or another. Several of the checks returned to the Treasurer, representing refunds of partial
payments on bonds by members of the armed forces, were
accompanied by a note asking how the check should be

handled as the payee had been killed in action.

Press reports about the Senator McCarran-Treasury -

conference concerning control of black market sales of
liquor prompted several temperance letters and two or
three others that warmly approved the purpose of the conference.

GEFFeburh
for
?

313

General Comments

Phanor J. Eder, Hardin, Hess & Eder, New York 6, N. Y.
One of my personal friends in South America several
months ago, had his bank account in the United States
frozen under the Foreign Funds Control, took appropriate
steps to have his record cleared, and has now been informed at the American Embassy that their report has
cleared up all questions and that they have recommended
that his funds be unblocked. They warn him, however,

that it will take about six months for the authorities

in Washington to give a final clearance after they receive a favorable report, and that therefore he should

be patient. If this is so, (and I can hardly conceive

that either the Embassy or my friend, invoking my assistance, would misrepresent the facts), it would seem

to represent a shocking situation. It is, of course,

understandable that in war time, Foreign Funds Control
should block any account it may have reason to be sus-

picious of -- it might fail in its primary duty if it

failed to do so; but once the suspicion has been removed,
surely action should be so speeded as to minimize the
I respectfully call this situation,
injury done.

if it is as represented to me, to your attention for
such action as you may deem proper.

Wiley Lin Hurie, President, The College of the Ozarks,

Clarksville, Ark. * I recognize you as an able
executive and realize how unselfishly you have given

of your best effort for the service of our country. My
best wishes are with you.

-2-

314

Favorable Comments on Bonds

Private Frank A. Salazar, San Francisco 11, California.
I have just returned from duty overseas, after 14à months

in active service. I would like to let you know, dear
sir; that, before I went into the armed forces, I bought
one thousand dollars worth of U. S. Savings Bonds, and
would like to know if I am eligible for one of these U.S.

Treasury Department Certificates from you. Sure I would
like to have from you one of these certificates, because
it would be very nice to have it with me at home, in order
to show it to my friends and impress them to buy U.S. Savings
Bonds. I wonder if you will send me one of these wonderful

certificates, dear sir. Also, I am still buying more

Savings Bonds for my own future and the future of my own

family. It has been a pleasure for me to have been in the
service with men who are fighting and sacrificing their

lives for our beloved and God's Country. For many weeks
I have wanted to write for information concerning this
wonderful gift from you, and if you send me one of these
U.S. Treasury Department Certificates, I shall encourage
buddies or friends to buy more and more War Savings
my
Bonds, and I know they will be as proud as I am now.

315

-3-

Unfavorable Comments on Bonds

Harry C. Mallon, Belmar, N. J. From September, 1942
to February, 1943, deductions were made from my pay to
be applied to purchase of War Bonds, by Signal Corps,
Camp Evans, N. J. Up to the moment have received no
Bonds or anything else to show for our deductions, other
than a notice posted about every six months asking everyone to have patience and "Do not write to Washington."

If everything is on the up and up, why shouldn't we write

to Washington?

E. R. Rimmels, Garden City, N. Y. (Returning a "citation")
It appears to me that whereas there is a shortage of paper,
civilian help, and great need for economy, that this type

of "glorification" is entirely unnecessary. It is no

"great sacrifice" to buy War Bonds, because it is merely
a saving. However, to waste time, paper, etc., does not

make any sense. What we want is economy, not just throwing

money to the winds. Forgive me, if this little note appears
to be rude, as it is not meant in that vein.
Congressman Milton H. West, Washington, D. C. Enclosed

is a copy of a self-explanatory letter received from

Mr. Brad Smith of Station KRGV, Weslaco, Texas, relative
to the disposition of Army property which is having an ad-

verse affect on the sale of bonds. I have been receiving
an increasing number of such reports, which in face of high
tax rate is causing considerable dissatisfaction among the
people. "I am beginning to detect quite a bit of undercover
dissatisfaction on the part of the general public in connection with more or less minor but troublesome matters. For
several days, maybe longer, there has not been a single box
of soap available in any grocery store in Weslaco or

316
-

Mercedes, without which housewives say they cannot wash
dishes or clothes.
Another thing: A couple of
Valley men have bought a large number of government issue

Army raincoats for 30 cents each. Some folks are beginning
to wonder openly something like this: "What in the h--am I buying War Bonds for? So the Army can buy expensive

raincoats and let somebody have them for a fraction of

their cost?" Also: Army steel tool boxes are being offered
for sale in retail stores at $7.25 each here in Weslaco,

and those heavily made Army 5 gallon gasoline cans are avail-

able at $2.25 each. The public has an eye for things like
these, as well as for the size of Army appropriations. The

public can't be fooled forever, and I'm afraid, not for very

much longer, without asking questions."

Anna Nancy Thomas, Marion, Indiana. Your letter announcing that March 15 would be the date for closing exchange
offerings on bonds reached me the 16th of March. The 16th

the day following finish of the feverish income tax ordeal,
was the day I had set to begin work on this exchange. But
now, I have $13,000.00 that will soon be out of a job, when

I fully expected them to continue in your employment where
they have been for many years. Isn't there some way whereby
I can have them so employed ince the notice failed to reach

me in time? I am a retired school teacher, and I believe
you will agree with me in saying that few groups deserve
more consideration from the public than ours.

317

-5Favorable Comments on Taxation

Mrs. Isal Johnston, Oakland, California. Having

completed computing my income tax and mailed check

for same, I wish to congratulate you on the fine

work of making Form 1040A so concise. I am working

a 48-hour week as supervisor in a vital industry,
therefore, my spare time is limited, but I found

Form 1040A could be worked out very quickly.

318

-6Unfavorable Comments on Taxation

Charles H. J. Barnett, M. D., Philadelphia, Pa. It

seems that each year someone steals the $5.00 stamp
from the window of my car and I am wondering whether

it would not be possible, (if this is going to be in

effect next year), to have a stub with each stamp
showing that one paid for a stamp and avoid a lot of
unpleasant things. I pasted it on my windshield with

good glue, wrote my name and address, license number,

make of car, etc., and still it is gone. The way one

buys a stamp now, you have nothing to show for it.
Hope you will give this some consideration and thought.

Helen L. Archard, New York, N. Y. I am writing to
protest against having to fill out another estimate of
income on April 15, after just having completed, with
considerable difficulty, the March 15 form. I belong
to the class of white-collar workers whose income is
not rising, but whose living expenses most certainly
are. We are not only being bled white, but in addition
are harassed and bedevilled by all these estimates.

What do you think we are, a nation of bookkeepers?

What right has anyone to force a whole nation to fill
out those exasperating forms and to start guessing 8
months in advance what his 1944 income will be? It's

about time this whole matter was brought down to earth.

Leonard M. Dill, Tenafly, N. J. I just finished reading the evening paper, read about the tax bill now in

committee, read where the Government is reducing married
couple's exemption to $1,000, cancelled the earned income

feature, and allows a flat 10% of a man's total income
in lieu of the amounts formerly deductible for local
home tax, interest on mortgage, N. J. unemployment insurance tax of 1%, contributions, and various other taxes

that formerly were deductible. Got sick reading this,

-7went to the kitchen for a cup of coffee, turned on the
radio and listened to the 7:45 P.M. news broadcast.
First comes news that you are jubilant over this new
tax program. I always thought you were a man who had

a

heart. I wrote you a letter after your Boston Anti-

inflation speech some few years ago and received a per-

sonal letter from you. I hold this letter as a personal

prize. I cannot understand how you can endorse this tax
program, especially if you know how terribly bad it is
going to affect millions of American taxpayers like myself, who are struggling to buy a home. My taxes on the
house were just increased $23 a year to make a total of

$288.00. This tax increase is to allow the town I live
in to raise the salaries of all employees 20% I have

to stand this even though my employer, The Whitehead
Metal Products Company of New York City, tells me my

salary is frozen. # # # It now takes my entire income to
live, but I am satisfied only if I can make ends meet
and live. I don't mind working for the net sum of nothing
and I don't mind paying all these taxes, for the common
cause, but Mr. Secretary of the Treasury, these new taxes,

even though you don't call them that, WILL BE THE KNOCKOUT

BLOW FOR ME AND A GREAT MANY OTHERS. I have just made

a rough calculation that this new tax program will drain
another $160 per year out of my frozen salary, which is
now $2,940 per year. I have given you all these facts

not that I want you to feel sorry for me, but to realize
the plight that millions of other Americans are in, esspecially those who have not received the benefits of the
"little-steel formula's 15%." I picked up the Wall St.
Journal the other week and read its columns. If you believe them, everybody has received at least 15% raise
since Pearl Harbor, but Mr. Morgenthau, it's a lie.

319

320
HEADQUARTERS

MILITARY DISTRICT OF WASHINGTON

T. garton

WASHINGTON. D.C.

24 March 1944

MEMORANDUM FOR THE SECRETARY OF THE TREASURY, MR. MORGENTHAU.

Subject: Troops on defense missions.

1. In accordance with your wishes expressed in conference this
date, the following agreement is submitted for your concurrence:
(a) The 255th Engineers now stationed at Fort Myer is relieved from its present mission in defense of the White House.

(b) Insofar as the Secretary of the Treasury is concerned,
the number and location of antiaircraft troops in the District of
Washington is the responsibility of the War Department.

2. The plan for the reduction of personnel on the following missions is being prepared in conjunction with Chief Wilson and will be
submitted to you upon completion for approval:

White House Guard Company, including detachment.
Catoctin Guard Company (Marines).
Hyde Park Guard Company.

Major

Steve

JOHN General, T. LEWIS, U. Lucio S. Army,

Commanding.

-1-

-

3/27/44

Photostat of carbon copy which was
returned to Gen. Lewis.
Gaston.

Photostat also furnished to Mr.

321

322
HEADQUARTERS

MILITARY DISTRICT OF WASHINGTON
WASHINGTON D C

24 March 1944

MEMORANDUM FOR THE SECRETARY OF THE TREASURY, MR. MORGENTHAU.

Subject: Troope on defense missions.

1. In accordance with your wishes expressed in conference this
date, the following agreement is submitted for your concurrence:
(a) The 255th Engineers now stationed at Fort Myer is relieved from its present mission in defense of the White House.

(b) Insofar as the Secretary of the Treasury is concerned,
the number and location of antiaircraft troops in the District of
Washington is the responsibility of the War Department.

2. The plan for the reduction of personnel on the following missions is being prepared in conjunction with Chief Wilson and will be
submitted to you upon completion for approval:

White House Guard Company, including detachment.
Catoctin Guard Company (Marines).
Hyde Park Guard Company.

JOHN T. LEWIS,

Major General, U. S. Army,
Commanding.

have M.n.p.
much 271444
-1-

323
3/27/44

Photostats furnished to
Dr. White
Mr. Smith

324
RIGHT PATMAN

COMMITTEE -

- - Cummer

FIGHT DISTRICT
STATE OF TEXAS

ADDRESS

HOUSE OFFICE BUILDING

Congress of the United States
House of Representatives
Washington, D.C.
March 24, 1944

Hon. Henry Morgenthau, Jr.
Secretary of the Treasury

Washington, D. C.

My dear Mr. Secretary:

I think the speech, which was so ably
prepared by one of your associates, in defense of the

stabilization fund will serve its purpose just as
well as if I had actually delivered it on the floor.

It was rather startling to Dr. Smith to discover that after putting his speech in the Record without delivering it, that I was replying to it the next

minute answering many of the things that were in his
speech that was not delivered.

Any time you can use me, feel perfectly free
to advise me of your wishes.
If you decide to have some of the speeches
printed and sent out over the country to answer Dr.
Smith's propaganda, which could possibly take root,

I shall be glad to cooperate with you to that end.
Sincerely yours,

Wright Patman.

MRS

325
IMEDIATE RELEASE

March 24, 1944
STATEMENT BY THE PRESIDENT

The United Nations are fighting to make a world in which
tyranny and aggression can not exist; a world based upon freedom,
equality and justice; a world in which all persons regardless of race,
color or creed may live in peace, honor and dignity.
In the meantime in most of Europe and in parts of Asia the
systematic torture and murder of civilians - men, women and children by the Nazis and the Japanese continue unabated. In areas subjugated
by the aggressors innocent Poles, Czechs, Norwegians, Dutch, Danes,

French, Greeks, Russians, Chinese, Filipinos - and many others - are
being starved or frozen to death or murdered in cold blood in a campaign

of savagery.

The slaughters of Warsaw, Lidice, Kharkov and Nanking - the

brutal torture and murder by the Japanese, not only of civilians but
of our own gallant American soldiers and fliers - these are startling

examples of what goes on day by day, year in and year out, wherever

the Nazis and the Japs are in military control - free to follow their
barbaric purpose.

In one of the blackest crimes of all history -- begun by the
Nazis in the day of peace and multiplied by them a hundred times in
time of war - the wholesale systematic murder of the Jews of Europe
goes on unabated every hour. As a result of the events of the last few
days hundreds of thousands of Jews, who while living under persecution
have at least found a haven from death in Hungary and the Balkans, are
now threatened with annihilation as Hitler's forces descend more heavily
upon these lands. That these innocent people, who have already survived
a decade of Hitler's fury, should perish on the very eve of triumph over
the barbarism which their persecution symbolizes, would be a major
tragedy.

It is therefore fitting that we should again proclaim our

determination that none who participate in these acts of savagery shall
go unpunished. The United Nations have made it clear that they will
pursue the guilty and deliver them up in order that Justice be done.
That warning applies not only to the leaders but also to their functionaries and subordinates in Germany and in the satellite countries. All
who knowingly take part in the deportation of Jews to their death in
Poland or Norwegians and French to their death in Germany are equally

guilty with the executioner. All who share the guilt shall share the

punishment.

326

-2 Hitler is committing these crimes against humanity in the
name of the German people. I ask every German and every man everywhere

under Nazi domination to show the world by his action that in his hear t
he does not share these insane criminal desires. Let him hide these
pursued victims, help them to get over their borders, and do what he
can to save them from the Nazi hangman. I ask him also to keep watch,
and to record the ovidence that will one day be used to convict the guilty.

In the moantimo, and until the victory that is now assured is
won, the Unitod Statos will porsevero in its efforts to rescue the victime
of brutality of the Nazis and the Japs. In so far as the nocessity of
military operations pormit this Government will use all means at its command to aid tho oscapo of all intended victims of tho Nazi and Jap
executionor - rogardloss of raco or religion or color. We call upon
the froo pooplos of Europo and Asia temporarily to open thoir frontiers
to all victims of oppression. We shall find havens of refuge for them,
and WC shall find the moans for their maintenance and support until the
tyrant is drivon from their homelands and thoy may roturn.
In tho name of justico and humanity lot all freedom loving poople

rally to this righteous undortaking.
000

327

March 24, 1944
12:15 p.m.
To:

Mr. George L. Warren

From: J. W. Pehle

It would be appreciated if the attached

urgent cables relating to the statement issued
today by the President were immediately dispatched

as indicated.
The sending of these cables has been

cleared with the Office of War Information, which

is employing its full facilities in giving publicity
to the President's statement.
These cables have not been cleared with the

White House, and it is assumed that the State

Department will do whatever is necessary in this regard.

328
CABLE TO:(1) MINISTER HARRISON, BERN
(2) MINISTER JOHNSON AND OLSEN, STOCKHOLM
(3) MINISTER NORWEB, LISBON
(4) EMBASSADOR HAYES, MADRID
(5) AMBASSADOR STEINHARD? AND HIRSCHMANN, ANKAHA
(6) MINISTER KIRK, LANDIS AND MIKESELL, CAIRO

The President on March 24 issued the following statement:
THere take in annexed statement J

The War Refugee Board is convinced that it is of utmost importance to
undertake at once an organized and concentrated effort to make clear, by all

appropriate means, to all Axis satellites that the Allied Governments view in
a most serious light their assistance in any form to Hitler's program to exterminate the Jews, and other similar groups, regarding all such acti on as
criminal participation in organized murder. The Board also believes it
necessary to make clear to the satellites by all possible means, its intention
to do everything in its power to rescue such unfortunates who are in danger
of death, or order not only to give the satellites a clear view of the
attitude of this country in the matter, but also of the opportunities which
exist for assisting in the execution of our policy. The Board feels very
strongly that a campaign of this kind must be made through al possible
channels and be constantly repeated at every available opportunity.

You are requested to see that the utmost publicity be immediately given
to the President's statement in local newpapers, radio, and in any other
manner feasible. Please make every endeavor to have this publicity included
on such radio broadcasts for foreign consumption as may emanate from the

country to which you are accredited. It would be extremely helpful if you

could obtain favorable comment from prominent governmental or other personages

with respect to the statement for use in connection with the publicity program.
For your information, in view of the importance of the statement and
the program which it implements, the Office of War Information expects to
employ its full facilities in calling this matter and appropriate comment

thereon to the attention of Axis, satellite, and other countries.

You are requested to report by cable as soon as possible the measures
you have taken to comply with these instructions together with the results

thereof. Significent clippings and official comment should be sent by airmail.
It must be borne in mind that the effecti veness of this statement will depend
in large measure upon the extent to which adequate publicity can be obtained
for it, particularyly in German controlled Europe.
This cable has been cleared with the Office of War Information.
.

This is WRB Ankara cable No. 13

329
CABLE TO AMBASSADOR WILSON AND ACKERMANN, ALGIERS.

The President on March 24 issued the following statements

there take in annexed statement
The War Refugee Board is convinced that it is of utmost importance
to undertake at once on organised and concentrated effort to make clear,

by all appropriate means, to all Axis satellites that the Allied Governments view in a most serious light their assistance in any form to Hitler's
program to exterminate the Jows, and other similar groups, regarding all
such action as criminal participation in organized murder. The Board also
believes it necessary to make clear to the satellites by all possible means,
its intention to do everything in its power to rescue such unfortunates who

are in danger of death, in order not only to give the satellites a clear
view of the attitude of this country in the matter, but also of the opportunities which exist for assisting in the execution of our policy. The

Board feels very strongly that a campaign of this kind must be made through
all possible channels and be constantly repeated at every available

opportunity.

You are Requested to cooperate with the local representatives of the
Office of War Information to see that the utmost publicity is immediately
given to this statement in local newspapers, on the radio, and in any other
manner feasible. Also please make every endeavor to have this publicity

included on broadcasts for foreign consumption such as those emanating from
Radio France and the United Nations Radio. It would be extremely helpful
for use in connection with the publicity program if you could obtain favorable
comment from prominent governmental or other personages with respect to the
statement.

For your information in view of the importance of the statement and
the program which it implements, the Office of War Information expects to
employ its full facilities in calling this matter" and appropriate comment

thereon to the attention of Axis, satellite, and other countries.

=

You are requested to report by cable as soon as possible the measures
you have taken to comply with these instructions together with the results
thereof. Significant clippings and official comment should be sent by at rmail.
It must be borne in mind that the effectiveness of this statement will depend
in large measure upon the extent to which adequate publicity can be obtained

for it, particularly in German controlled Europe.

This cable has been cleared with the Office of War Information,
THIS IS ALGIERS CABLE NO. 1

330
CABLE TO AMBASSADOR WINANT, LONDOS

Further reference is made to our No. 1503 of February 29 and our

No. 1812 of March 10, 1944, which set forth in part the steps which the
War Refugee Board has taken and is prepared to take in implementing its
announced policies.

There is quoted blow the text of a statement issued by the
President on March 24, 1944.
(Here take in annexed statement)

It would be appreciated if you would make this statement available

to the appropriate officials of the British Government, indicating to
them the significance of this step as a means of following up the
objectives which the War Refugee Board is trying to accomplish. At the
same time you should emphasize to the British authorities the extreme
importance which this Government attaches to the program outlined in air
No. 1812 with specific reference to the value of a psychological program

designed to change the actions and attitude of ourenemy, and particularly

his satellites, functionaries and subordnates.
This statement should also be called to the attention of the
representatives in London of the governments-in-exile and they should be

advised of our desire that it be given the widestpossible publicity.
JED:bbk - 3/24/44

331
CABLE TO AMBASSADOR HARRIMAN, MOSCOW

Please refer to our circular at rgram of January 26, 1944, with
reference to the instituation of the War Refugee Board and to our

No. 554 of March 11, 1944 setting forth the aims of the Board. In
this cable we stressed the importance of bringing home to the
people in German controlled Europe the seriousness with shich the

United Nations view this matter.
There is quoted below the text of a statement issued by the
President on March 24, 1944.
(Here take in annexed statement)

It would be ap preciated if you would make the statement

available to the appropriate officials of the Russian Government,

indicating to them the significance of this step as a means of
following up the objectives which the War Refugee Board is trying
to accomplish. At the same time you should emphasize to the
Russian authorities the extreme importance which this Government

attaches to the program outlined in our No. 554 with specific
reference to the v a lue of a psychological program designed to

change the actions and attitude of our enemy, and particularly

his satellites, functionaries, and subordinates.

TELEGRAN SIGN

332
PLAIN

Refugee Board

March 24, 1944
PLAIN

AMREP

ALGIERS,

893, Twenty-fourth,
FOR CHAPIN AND ACKERMAN.

This War Refugee Board's no. 1.

The President on March 24, issued the following
statement:
QUOTE: (TEXT OF THE MESSAGE IS ATTACHED HERETO) UNQUOTE

The War Refuree Board in convinced that it is of
utmost importance to undertake at once an organized and

concentrated effort to make clear, by all appropriate
means, to all Axis satellites that the Allied Governments
view in a most serious light their assistance in any form
to Hitler's program to exterminate the Jews, and other

similar groups, regarding all such action as criminal
participation in organized murder. The Board also

believes it necessary to make clear to the satellites by

all possible means, its intention to do everything in its
power to rescue such unfortunates who are in danger of

death, in order not only to give the satellites a clear
view of the attitude of this country in the matter, bist
also

333

893, 34th, to Algiere

-2also of the opportunities which exist for assisting in
the execution of our policy. The Board feels very
strongly that a campaign of this Kind must be made
through all possible channels and be constantly

repeated at every available Opportunity.
You are requested to cooperate with the local

representatives of the Office of War Information to

see that the utmost publicity is immediately given to
this statement in local newspapers, on the radio, and
in any other manner feasible. Also please make every

endeavor to have this publicity included on broadcasts
for foreign consumption such as those emanating from

Radio France and the United Nations Radio. It would
be extremely helpful for use in connection with the
publicity program if you could obtain favorable comment
from rpominent governmental on other personages with

respect to the statement.

For your information in view of the importance of
the statement and the program which it implements, the
Office

334

893, 24th, Algiers,

-3Office of War Information expects to employ its full

facilities in calling this matter and appropriate
comment thereon to the attention of Axis, satellite,
and other countries.
You are requested to report by cable 28 soon as
possible the measures you have taken to comploy with

these instructions together with the results thereof1
Significant clippings and official comment should be

sent by airmail. It must be borne in mind that the
effectiveness of this statement will depend in large
measure upon the extent to which adequate publicity

can be obtained for it, particularly in German
cont:olled Europe.

This cable has been cleared with the Office of
War Information.
HULL
(GLW)

WRB:GLW:AMM

3/24/44

WE

SA/M

TELEGRAM SENT

335
PLAIN

March 24, 1944
AMEMBASSY,
LONDON.

2273, twenty-fourth
FOR THE AMBASSADOR FROM THE WAR REFUGEE BOARD

Refer our 1503 of February 29 and our 1812 of

March 10, which set forth in part the steps which the

War Refugee Board has taken and is prepared to take in
implementing its announced policies.

See tonight's radio bulletin for text of statement

issued by the President today.

This statement was made available in advance to the
British Embassy here, which has been advised by the Foreign office

that the BBC has been instructed to report the statement fully in
all languages as reaffirmation of the attitude of the United
Nations and in particular of his Majesty's Government as
well as the United States Government toward the Nasi and
Japanese war crimes and atrocities. You are requested to

suggest to the British Government the significance of this
step as a means of following up the objectives which the
War Refugee Board is trying to accomplish. At the same
time you should emphasize to the British authorities the
extreme importance which this Government attaches to the

program outlined in our 1812 with specific reference to
the value of a psychological program designed to change

the actions and attitude of our enemy, and particularly
his satellites, functionaries and subordinates.
Please ask Scheenfeld to call this statement to the
attention of the representatives in London of the
governments-in-oxile to which he is accredited and to
advise them of our desire that it be given the widest
possible publicity.
HULL
(GLN)

WRB:GLN:VHJ

3/26/44

BC

S/CR

SA/M

336
TO CONSUL GENERAL, JEHUSALEM. FOR ARTER BENELINESE, TELAVIV,
FROM WAR REFUGEE BOARD

Please deliver the following message to Aryeh Benelieser.
35 Rashi Street, Telaviv, from the War Refugee Board.
QUOTE Imperative you proceed Turkey immediately take

charge our rescue activities there very urgent STOP cabled expenses
thousand dollars via American Express STOP cable reply. STOP
will Rogers Peter Bergson Chairmen Emergency Committee. UNQUOTE
JHM:db

Delivered by Mr. Mann

March 24, 1944
10:00 am.

It will be appreciated if you will have the attached
cable dispatched at once to Mr. Aryeh Beneliezer, 35 Rashi Street,
Telaviv, from Mesers. Will Rogers and Peter Bergson, Chairmen

Emergency Committee, and bill the latter for the cost of the
message.

Mann:db 3/24/44

337
March 24, 1944
5:00 p.m.
PROPOSED CABLE TO THE AMERICAN CONSULATE, JERUSALEM

War Refugee Board requests you to deliver the following
message from Israel Mereminski, New York, to Schaul Meyerow,

General Federation of Jewish Labor, 115 Allenby Rd. Tel-Aviv:
QUOTE Please make available to American Consulate
for transmission to me through War Refugee Board

fullest possible details of more recent activities
and any suggestions for action from here. UNQUOTE

LSLessertals 3/23/44

338
No. 548

near the Polish Goverment
LONDON, March 24, 1944.

Subject: Present position of
Polish victima of
Nasi persecution:
supplementary informa-

tion regarding pass-

port difficulties.

The Honorable

The Secretary of State,
Washington.

Sir:

Referring to the Department's instruction No. 634
of January 28 regarding measures for the rescue and

relief of victims of Nazi persecution and to the

Embassy's Despatch 539 of March 2 regarding the present

position of Polish refugees, I have the honor to report

that the Embassy is now informed by Count Emeryk ButtenCzapski, Head of the Refugee Department of the Polish

Ministry of Foreign Affairs, that the governments of
Paraguay and Chile issue passports to Polish citizens
to help them flee from countries collaborating with
Germany or from Germany itself but that Peru, Ecuador
and Venezuela have adopted an unfavorable attitude in
such matters.

It will be recalled that in the conversation reported in our Despatch No. 539 of March 2, Count Czapski
expressed the opinion that one of the most important
things that could be done immediately to assist the
rescue of Nazi victims was the provision of more passports entitling refugees to go to South American

countries and that he further stated that some of the

South American countries had recently tightened up on
issuing these passports.
Respectfully yours,
Rudolf E. Schoenfeld,

Charge d'Affaires ad interim.
To the Department in original and hectograph.
JS:PS

cc: Miss Chauncey (For the Sec's), Abrahamson, Akain, Bernstein, Cohn,
DuBois, Friedman, Gaston, Hodel, Laughlin, Lesser, Luxford, Mann, Mannon,
Marks, McCormack, Murphy, Paul, Pable, Polisk, Rains, Sargoy, Smith,
Standish, Stewart, Weinstein, E. a. White, Piles

339

AIRGRAM

FROM American Embassy

Madrid, Spain
March 24, 1944

Rec'd. April 1, 10:00 a.m.

Secretary of State,
Washington.

Confidential A-119, March 24, 1 p.m.
210 French refugees from Spain sailed from Gibraltar March 22

for North Africa. This brings to 472 total number of such refugees
evacuated from Spain since beginning of year, 262 having been

evacuated by same route during February. It is estimated that less
than 409 French refugees remain in Spain as of this date.
HAYES

Isf
Copy to Algiers

cc: Miss Chauncey (For the Sec's) Abrahanson, Akain, Bernstein, Cohn,
DuBois, Friedman, Gaston, Hodel, Laughlin, Lesser, Luxford, Mann,
Kannon, Marks, McCormack, Murply, Paul, Pehle, Pollak, Rains, Sargoy,
Smith, Standish, Stewart, Weinstein, H. D. White, Files

340
TELEGRAM SENT
PLAIN

March 24, 1944

AMLEGATION,
BERN.

980, Twenty-fourth
FROM WAR REFUGEE BOARD.

Following for Rene Bertholet, Waserstrasse 1".
Zurich, from International Rescue and Relief
Committee:

QUOTE We receiving helpful cooperation
of War Refugee Board and ask you transmit
important messages which may otherwise be

delayed via American Legation Bern and
addressed to John W. Pehle for International
Rescue and Relief Committee UNQUOTE
HULL

(CLW)
HULL

WRS:GLW:AMM

3/23/44

341

PARAPHRASE OF TELEGRAM SENT
FROM:

SECRETARY OF STATE, WASHINGTON

TO:

ANLEGATION, BERN

DATED:

MARCH 24, 1944

NUMBER: 983
CONFIDENTIAL

The message given below refers to your telegram 60f
March 4, 1944, nos. 1304 and 1321.

with respect to paragraph number four of the SternbuchRubinfield-Rosenbunm reports contained in your cable no. 1321,
you are informed that the confidential statements made in that
report are not necessarily inconsistent with the Swiss Government's official statement contained in your cable no. 1304.

The interpretation which the Swiss authorities, including the
Swiss Department of Foreign Police, placed on the phrase
"political refugees" and the persons considered in such
category by those authorities would seem to be the pertinent
consideration. We suggest that the appropriate Swiss Government officials approached to determine as definitely as
possible the extent to which the Swiss authorities, including

the border guards and cantonal police, the Swiss Foreign Police
Department and any other authorities concerned consider the

following as political refugees: one, stateless Jews, including those of military age; two, nationals of the United Nations

countries now occupied by the Germans who are of Jewish descent;

three, nationals of German satellite countries who are of
Jewish descent; and four, nationals in general of the United
Nations countries now occupied by Germany.

The

342

-2The many problems with which Switzerland has had to con-

tend, as mentioned in your 1304, are appreciated by this

Government but it believes that persons falling within all

four of the categories mentioned above should, prima facie,
be considered political refugees and as such should be afforded,
after required security checks, temprary refuge without considering whether they have close relatives living in Switerland
and without regard to age or sex. You may determine to what
extent the foregoing should be communicated to the Swiss after

considering the replies to the specific inquiries, set forth
above, you/ receive from the Government of Switzerland.

We suggest that you may desire to bring to the Swiss
Government's attention the fact that the Jewish people of
Europe are refugees because of Germany's political action and
the political action of her satellites and that therefore they
are political refugees in every sense of the term.
It is requested that you inform the Department of such
views as the Swiss Government might express regarding the matter
under reference and of any developments resulting from your

negotiations with the Swiss Government.

HULL

343
TELEGRAN SENT
PLAIN

March 24, 1944
AMLEGATION,
BERN,

991, Twenty-fourth
FOR THE MINISTER FROM THE WAR REFUGEE BOARD

Tonight's radio bulletin contains an important
statement by the President on refugees and Nazi
persecutions.

The War Refugee Board is convinced that it is of
utmost importance to undertake at once an organized

and concentrated effort to make clear, by all appro-

priate means, to all Axis satellites that the Allied
Governments view in a most serious light their assistance

in any form to Hitler's program to exterminate the Jews,
and other similar groups, regarding all such action as
criminal participation in organized murder. The Board

also believes it necessary to make clear to the satellites
by all possible means, its intention to do everything in
its power to rescue such unfortunates who are in danger

of death, in order not only to give the satellites a
clear view of the attitude of this country in the
matter, but also of the opportunities which exist for
assisting

344

- 2 - #991, Twenty-fourth, to Bern

assisting in the execution of our policy. The Board
feels very strongly that a campaign of this kind must
be made through all possible channels and be constantly

repeated at every available opportunity.
You are requested to see that the utmost publicity
be immediately given to the President's statement in
local newspapers, radio, and in any other manner feasible.
Please make every endeavor to have this publicity included
on such radio broadcasts for foreign consumption as may
emanate from the country to which you are accredited.

It would be extremely helpful if you could obtain favorable comment from prominent governmental or other personages

with respect to the statement for use in connection with
the publicity program.

For your information, in view of the importance of the
statement and the program which it implements, the

Office of War Information expects to employ its full
facilities in calling this matter and appropriate comment

thereon to the attention of Axis, satellite and other
countries.

You

345
-3- #991, Twenty-fourth, to Bern

You are requested to report by cable as soon as
possible the measures you have taken to comply with

these instructions together with the results thereof.
Significant clippings and official comment should be

sent by airmail. It must be borne in mind that the
effectiveness of this statement will depend in large
measure upon the extent to which adequate publicity can

be obtained for it, particularly in German controlled
Europe.

This cable has been cleared with the Office of War
Information.
HULL
(GLW)

CODE ROOM:

Please repeat the foregoing telegram to;
as #502

STOCKHOLM / with the following opening sentence: "FOR THE
MINISTER AND OLSEN FROM THE WAR REFUGEE BOARD"

as #850

LISBON / with the following opening sentence: "FOR THE
MINISTER FROM THE WAR REFUGEE BOARD"

as #817

MADRID / with the following opening sentence: "FOR THE
AMBASSADOR FROM THE WAR REFUGEE BOARD"
ANKARA

346
-4- #991, Twenty-fourth, to Bern

as #253

ANKARA / with the following opening sentence: "FOR THE
AMBASSADOR AND HIRSCHMANN. WAR REFUGEE BOARD'S NO. 13"
GREEK SERIES NO46

CAIRO with the following opening sentences/"FOR THE
AMBASSADOR LANDIS AND MIKESELL FROM THE WAR REFUGEE
BOARD"

THB:GLN:GER

3/24/44

WE NOE SE

NE

NEA

346-B
Secret
AIRGRAM

FROM

Managua

Dated April 24, 1944

Rec'd Apr 28 4pm
Secretary of State,
Washington.

A-177, April 25, 10:30 a.m.
Embassy's despatch no. 2137, dated April 17, regarding Nicaraguan passports held by Europeans in Occupied

Europe.

The Nicaraguan Foreign Office informs the Embassy

of its dispatch of the following telegram to the Swiss
Foreign Office on April 22, 1944 (translation):

"I request Your Excellency to address himself to the German Government asking that international conventions covering prisoners of war
be applied to all internees in concentration campa
who are the bearers of Nicaraguan passports. Ac-

cept, etc."
FINLEY

HDF/SP

345-A
PARAPHRAS OFFELBORAN RECEIVED
FROM:

AMERICAN LEGATION, BEEN

TO:

Secretary of State, Washington

DATED: March24, 1944
NUMBER: 1825

SECRET

1. A note was handed by me to Mr. Pilet-Golat informing him of thesubstance of your telegram of March 18, 1944,
no. 891 which has also been communicated to Zurich Consulate
General and other Consulates in accordance with directions.

It was pointed out by Mr. Pilet, after reading my note
and stating that hewould make reply, thatentry into Switzerland was allowed for refugee children. Mr. Pilet alsorecalled the Swiss continuing desire to receive children for purposes of rehabilitation. Reference was made by him to the
proposal of Dinglefoot that an asylum be given to 100,000

Refugees'
onobtain
States
Governments
from
had
here
in abeen
fewreturn
efforts.

Vichymatter
and/ or
for
It was opposition
children as well as International Government Committee for

has to Pilet
permission permission beexpected. indicated days taken request that he up for would attempts by for by them With past exit Minister behalf report tocome respect experience permits be of madeby Tucki the British to to Switzerland. results for and financial the that 5000 and upon Swiss German of United children his his aid,Mr. to This

believed thatthere would be no need for this. There might
be a need for wool, cotton, et cetera, for clothing except
shoes.

2. It is stated by areliable authority in welfare

organization familiar with general problem of child refugees
in Switzerland that he estimates that less than 100 refugee
children have arrived in Switzerland from France from Janu-

ary 1 to date. This is subject to confirmation.

Furthermore, there is some doubt whether there will be

is possibility of filling more than lesser percentage of
quota allotted for present quota yearunless facilities for
clandestine movements in France can be improved.

HARRISON

347

PARAPHRASE OF TELEGRAM RECEIVED

FROM:

American Legation, Bern

TO:

Secretary of State

DATED:

March 24, 1944

NO:

1828

CONFIDENTIAL

Reference is made herewith to the Department's
telegram of March 20, 1944, no. 916 and previous.

The following is a summary of inquiry for War
Refugee Board from International Committee of Red Cross:
If funds can be made available by Jewish organiza ions,
Intercross desires to purchase certain food products in

Portugal for relief of groups of Jewish refugees not
included in the plan transmitted in the Legation's
telegram of March 4, 1944, no. 1334. Intercross desires
to take such action in view of the increasing difficulties
of purchasing food in central Europe which is further
complicated by recent events in Hungary. In particular
Intercross wishes to aid three refugee camps in Croatia
where the delegate reports that food conditions are precarious. Intercross proposes to ship from Lisbon to
Marseilles via Intercross ships as transportation from
Portugal is expensive and slow. It would be necessary
to obtain navicerts and Intercross asks whether approval
of blockade authorities could be obtained by War Refugee
Board.
HARRISON

348

TELEGRAN SENT
PLAIN

March 24, 1944

AMLEGATION
STOCKHOLM.

496, Twenty-fourth
FROM WAR REFUGEE BOARD

Following for Elise Ottesen Jensen, 39 Kungegatan,
Stockholm, from International Rescue and Relief
Committee:

QUOTE We receiving cooperation of War
Refugee Board and ask you transmit important
messages which may otherwise be delayed via
Iver Olsen American Legation Stockholm and

addressed to John W. Pehle for International
Rescue and Relief Committee Stop Answer
immediately received no recent cables from

you

UNQUOTE
HULL
(GLW)

WRB:GLW:AMM

3/23/44

SWP

HULL

DIGINAL TEXT OF TELEGRAM SENT

Senretary of State; Wahhington

American Tabasay, Ankara

larch 24, 1944

250
SECRET

FLOO THE WAR REFUGER BOARD FOR THE AMBASSADOR AND
.IRSCHMANN.

Refer your No. 501 March 21. You are authorized to enter
into charter party for SS TARI at price indicated. Place
insurance in Turkey. Advise us total amount 6f funds needed

for charter and insurance and form in which such funds should
be remitted.

Although the price indicated seems to be almost double
that at which other neutral vessels have been chartered, it
is assumed that you have consulted with Myron Black who has
had much experience in similar negotiations and that you feel
that we cannot do better under the circumstances.

You are also authorised to confirm to the Turkish Govern
mont that the guarantee of replacement given in the case of
SS VATAN is applicable to SS TARI. That is if the SS TARI
if lost on the projected voyage the United States Government
will replace her with a cargo vessel of comparable tonnage and
age.

It is assumed that there is some assurance that when the
voyage is undertaken there will be refugees available for

evacuation. In view of your estimate as to possible duration
of voyage, it is also assumed that the Board's liability
under the charter will not be unlimited as to time.
THIS IS WRB ANKARA CABLE NO. 11

349

350
CABLE TO AMBASSADOR STEINHARDT AND IRA HIRSCHMANN, ANKARA, TURKEY

Refer your No. 501 March 21. You are authorised to enter into charter
party for SS TARI at price indicated. Place insurance in Turkey. Advise
us total amount of funds needed for charter and insurance and form in which
such funds should be remitted.
Although the-price indicated seems to be dmost dai bas that at which
other neutral vessels have been chartered, it is assumed that you have
consulted with Myron Black who has had much experience is similar
negotiations and that you feel that we cannot do better under the
circumstances.

You are al so authorized to confirm to the Turkish Government that the
guarantee of replacement given in the case of SS VATAN is applicable to
SS TARI. That is if the SS TARI is lost on the projected voyage the
United States Government will replace her with a cargo vessel of
comparable tonnage and age.

It is assimed that there is some assurance that when the voyage is
undertaken there will be refugees available for evacuation. In view of
your esti mate as to possible duration of voyage, it is also assumed that

the Board's liability under the charter will not be unlimited as to time.

THIS IS WRB ANKARA CABLE NO. 11

JBF:bbk - 3/23/44
Delivered by Mr. Mann

H

March 24, 1944
9:15

Please transmit the attached urgent cable from the War Refugee
Board to Ambassador Steinhardt and Hirschmann. The commitment to
replace the Turkish vessel has the approval of Admiral Land,
Administrator of the Far Shipping Administration, and Lee T.
Crowley. Administrator of the Foreign Economic Administration.

351

March 24, 1944
11:25 a.m.
TO:

Mr. Warren

FROM:

J. W. Pehle

It will be appreciated if you will have the attached
cable despatched at once to Jacob Griful, Hotel Continental,
Beyuglu, Turkey, from the Vaad Hahatzala Emergency Committee,

132 Nassau Street, New York 7, N.Y., and bill the Vaad
Hahatzala Emergency Committee for the cost of the message
and any answer thereto.

Attachment.

FH:lab 3/21/44

352

CABLE TO ANKARA

From War Refugee Board to Steinhardt

Please deliver the following message to Jacob Griful,
Hotel Continental, Beyuglu, from the Vaad Hahatzala Emergency
Committee:

"Our Vaad Hahatzala Emergency Committee ready transmit

financial aid for your rescue work Stop Consult Louis
Kastner other Orthodex leaders in Turkey and organize

strong committee Stop Give us constructive plan of proposed rescue operations and we will supply necessary funds Stop
Contact Isaac Sternbach and Switzerland committee we have

cabled him money and instructions Stop They ready give
you fullest cooperation Stop Contact American Legation
receive and follow Legations instructions and advise us
through Legation Rabbis Israel Rosenberg, KL Silver, Jacob
Levinson, Aron Kotler and Abraham Kalmanowitz"

THIS IS WRB ANKARA CABLE NO.

12

353
TELEGRAN SENT

PLAIN

March 24, 1944
AMEMBASSY,
MOSCOW.

699, twenty-fourth
FOR THE AMBASSADOR FROM THE WAR REFUGEE BOARD.

PLEASE refer to our circular airgram of January 26,

1944, with reference to the institution of the War Refugee
Board and to our No. 554 of March 11, 1944 setting

forth the aims of the Board. In this cable we stressed

the importance of bringing home to the people in German
controlled Europe the seriousness with which the United

Nations view in this matter.

There is quoted below the text of a statement issued
by the President on March 24, 1944.
QUOTE: (TEXT OF THE MESSAGE IS ATTACHED HERETO)
UNQUOTE.
0

A copy of this statement was communicated to the
Soviet Ambassador here. for transmission to his Government,

prior to its issuance by the President.
It would be appreciated if in addition you would
make this statement available to the appropriate officials
of the Russian Government, indicating to them the

significance of this step as a means of following up the
objectives which the War Refugee Board is trying to

accomplish.

At the same time you should emphasize to
the Russian authorities the extreme importance which
this Government attaches to the program outlined in

our No. 554 with specific reference to the value of a
psychological program designed to change the actions

and attitude of our enemy, and particularly his
satellites. functionaries and subordinates.
HULL

(GLW)

3/24/44

- - TELEGRAM RECEIVED
MISCUE

SECURITARY OF STATE, WASHINGTON
DATED:

MARCH 24, 1944

NUMBER:

1020

CONFIDENTIAL

On March 21 a memorandum setting forth United States

Government's policy as contained in the first paragraph of
the Department's circular dated January 26, 7 p.m., was handed
to Vyshinski by me. Attention was called in the memorandum to
the cooperation solicited of the Soviet Government in requesting an assurance of safe conduct for the TARI (see my telegram
of March 26, 1944, no. 935) and it went on to say that in the

future similar specific problems will doubtless arise, in the
solution of which the assistance of the Soviet Union will be

sought. The memorandum closed with a reference to the effect
that the great work which the Soviet Government has done in
saving the lives of many refugees is well known to the United
States Refugee Board and it would appreciate the Soviet Government's cooperation in its work.

Also I orally stated that I wish to explore the manner in

which the US and Soviet Governments might work together on this
question after the memorandum had been studied by him. Reference
was made by me to the parallel action which both nations had
taken and could take in trying to impress on Germany and

satellite countries that they would be held accountable for

the inhuman actions against the Jews and other similar groups.
It was stated by me that such pressure on satellite countries
might aid in the evacuation of refugees from Hungary, Rumania
and Bulgaria,
I stated that with the Red Armies' advance the Black Sea

area offered promising possibilities for accomplishing the
rescue of refugees and in this respect I referred to my recent
request for expeditious consideration of the TARI case.
I stated in conclusion that the President was extremely
interested in the matter and that public sentiment in the

United States was supporting my Government in doing everything

possible for these unfortunate people. I added that a great
deal of good effect would result in both the Soviet Union and
the United States by working together in this manner, especially
if this collaboration were publicly known.
Vyshinski stand to be sympathetic to If approach. It was
stated by him that he would like to study the sesorandum and

then discuss the question with - further.

It will be noted by the Department - 2 did ront Sincerely
specifically upon amount of the pointe naised in the Depart=
mentio selegram of March 11, 194h 9% 556 ant 555 consenting

(a) . posttien taken by the Sevined with to supporting

355

-2refuge on Soviet soil for refugees transported from Balkan
countries across the Black Sea and (b) an indication of the
willingness of the Soviets to accept after the MAT refugees
admitted temporarily into Switzerland and other countries
during the war. It was felt by me that these questions can be
dealt with more appropriately after a general agreement in
principle is reached for cooperative action and perhaps on
the basis of such specific problems as may arise, in the
handling of which we would desire the Soviet Government's
cooperation.

HARRIMAN

CO:

Miss Chauneet (for the
Secry Conn, Houel, Laughlin, Pehle, Abrahamson, Akzin, Berastein, DuBois
Friedman, Gaston, Lesser, Luxford, Mann, McCormack, Paul, Pollak, Rains,

Sargoy, Standish, Stewart, H. D. White, Files,

60

356
25

NOT TO BE RE-TRANSMITTED

MAR

1944

COPY NO

11

TOP SECRET

OPTEL No. 96

Information received up to 10 A.M. 24th March 1944.

1. NAVAL

Home Waters. Early 24th Aircraft and Coastal Craft damaged
large enemy ship heavily oscorted off CALAIS. One escort sunk, another
damaged.

2. MILITARY

Italy Slow progress maintained in CASSINO with severe
fighting.
Russia Between TARNOPOL and PROSKUROV, Russians have advanced

between 20 and 30 miles and also made progress ST
of CREMENETS, West of VINNITSA in Bridgehead South of MOGILEV-PODOLSKI
and towards NIKOLAEV.

3, AIR OPERATIONS

are

Western Front 22nd/23rd. 3,116 tons dropped on FRANKFURT.
23rd. U.S. Heavy Bombers attacked BRUNSWICK
425 tons; HANDORF Airfield 144 tons; HAMM, MUNSTER, OSNABRUCK and other

targets in GERMANY 952 tons. Enemy casualties by fighters 21:1:10 for
28 bo bers and four fighters missing. Escorted medium bombers dropped
341 tons on CREIL Railway centre and 241 tons on wagon and locomotive
works at CHARLEROI with good results on both targets. Six Beaufighters
hit a 3,000 ton ship off NORMAY ith large explosion.

23rd/24th. Aircraft despatched : LAON Marshalling Yards 143,
Motor Vehicle Factory LYONS 20, DORTMUND and OBLIGHAUSEN 15, Intruders 23

(2 missing) Leaflets 11, Anti-shipping 9. 17 enoney sircraft (one
destroyed) operated over South East ENGLAND, five penetrating to Louisour

region where one factory me aurinually damaged that canalties slight.

Italy 20ml. Henry basiers reapped 26) suns on Amilway centre

at VINGINA and 196 tons at BOLOGA 71 Merican burbers
atianted station sungets in CERTIFIED ITAME.