Full text of Diaries of Henry Morgenthau, Jr. : Volume 756 : Part 2

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

261

UNITED NATIONS MONETARY AND FINANCIAL CONFERENCE

Executive Plenary Session

Friday, July 21, 6:30 pm

I

REPORT OF COMMISSION II-BY THE REPORTING DELEGATE

Secretary Morgenthau:

This Plenary Session will consider the reports on the work

of Commissions II and III. We shall take up first the report of
Commission II, and I request the Reporting Delegate, Mr. Georges

Theunis, of Belgium, to aderephone-and present his
report.

(Following the presentation of the report, he will move

its adoption.)
Secretary Morgenthau:

Congratulate
muchtoo little Height get little time the
so Keynes
You have heard the report of Commission II. Do I hear a

second?

I recognize the Chairman of Commission II, Lord Keynes,
Delegate of the United Kingdom.

(Lord Keynes will make a statement.)
Sedretary Morgenthau:

The motion has been moved and seconded that the report of

Commission II be approved, that the Articles of Agreement be

adopted, and that they be incorporated in the Final Act of the
Conference. Are you ready for the question? (Pause)
Secretary Morgenthau:

There being no further discussion, all those in favor of
approving

262

-2-

approving the motion concerning the report of Commission II
please say "Aye". (Pause) Those opposed, "No". The "Ayes"

have it, and the motion is carried.
II
REPORT OF COMMISSION III BY THE REPORTING DELEGATE

Secretary Morgenthau:

I now recognize the Reporting Delegate of Commission III,

Fussell
Mr. D.
Picker, of New Zealand.
Inssell

(Mr. Fisher will present the report, and then move its
adoption.)
Secretary Morgenthau:

You have heard the report of Commission III, and the motion

to adopt it. Do I hear a second?
I recognize the Chairman of Commission III, Mr. Eduardo
Suarez, of Mexico.

(Mr. Suarez will make a statement and second the motion.)
Secretary Morgenthau:

The motion has been moved and seconded that the report of

Commissi on III be approved. Are you ready for the question?
(Pause)

Secretary Morgenthau:

There being no further discussion, all those in favor of
approving the motion concerning the report of Commission III
please say "Aye". (Pause) Those opposed, "No". The "Ayes" have

it, and the motion is carried.

III

263

-3-

III
REPORT OF THE COORDINATING COMMITTEE

Secretary Morgenthau:

I now recognize the Delegate from China, Dr. Kuo.

(Dr. Kuo will present the report regarding a summary of
agreement. )

Secretary Morgenthau:

You have heard the motion. Do I hear a second? (After
hearding a second) The motion has been moved and seconded.
Are there any comments?

There being no further discussion, I shall now put the motion

to a vote. All those in favor please say "Aye". (Pause) Those
opposed, "No". The "Ayes" have it, and the motion is carried.
Secretary Morgenthau:

The Final Plenary Session will be held tomorrow evening, at

ten o'clock, immediately after the Farewell Dinner.
There being no further business to transact, I declare the
meeting adjourned.

264

Bretton Woods

July 21, 1944
9:15 p.m.
PLANS FOR CLOSING SESSION

Present: Mr. White

Mr. Smith
Mr. Sweetser
Mrs. Morgenthau

Mrs. Klotz

Mr. Acheson
Mr. McDermott

Mr. Kelchner
Mr. Coe

H.M.JR: Keynes said that as far as his country was
concerned it was a very popular issue, and the thing was
constantly coming up in Parliament; it was a controversial
issue, but he would be glad to see you take it on.

MR. WHITE: I just thought it would frighten all the
bankers. That is one of the fears of the Bank, and it would
be sort of giving them something very definite to peg their

hat on.

H.M.JR: Well, Keynes felt--I got the feeling it was
something that the people would like, and I think in the
final analysis I want to give an argument to the people
as to why this is good, and I would just as leave take
them head-on.

MR. WHITE: Except that interest rates there may be
good, because they would be paying them, but our people are

the foreign investors, so they would be the people getting
interest rates.

H.M.JR: All I am saying is moderate interest payments-(Mr. Coe and Mr. Kelchner enter the conference)

H.M.JR: Mr. Kelchner, this meeting is called in your
honor. Would you tell us what you had in mind?

265

-2MR. KELCHNER: Well, the question is, for the program
tomorrow evening for the closing Plenary Session, are there
any special individuals whom you desire to appear on the

program with you?

H.M.JR: I think Mr. White has some suggestions.
MR. WHITE: I thought that Keynes wanted to make a
statement, a speech, and I think he would make a very

excellent one. I think he ought to be on the program.

I just met Wright, and he said that they had hoped
that Souza Costa would talk, but I don't know. Those
are the only ones I have in mind.
MR. KELCHNER: We have down here an address and motions

by Lord Keynes, accepting the Final Act, to begin with.
Seconding or supporting, possibly Canada, Poland, and
South Africa.
MR. WHITE: Certainly not Poland and South Africa.
MR. KELCHNER: They both asked to appear on the program,

and I think it would be very difficult to turn them down.
They made a special point of it, and the Canadians have

indicated they would like to.

MR. WHITE: I should think the Canadians could second
it if Lord Keynes made the motion.
MR. SWEETSER: You can't have two Dominions very well.
MR. KELCHNER: That can be switched.

MR. WHITE: I think it is too important an occasion
to let the Poles-MR. COE: Canada has made a special point with one

of its Parliamentary men up here.

MR. WHITE: But not right after Keynes.

266

-MR. COE: No, somewhere--

MR. KELCHNER: Oh, yes, surely.

H.M.JR: You are going a little bit too fast. Keynes
is going to move--this is at the dinner?
MR. KELCHNER: No, the Plenary Session after the

dinner.

H.M.JR: There will be no speaking at the dinner?
MR. KELCHNER: None, except your own.

H.M.JR: Am I to speak?
MR. KELCHNER: I should think you would wish to just

say a few words at the close of the dinner, and then invite
everybody to the auditorium to attend the closing Plenary
Session.
MR. SMITH: Not a speech.

MR. KELCHNER: Just a few remarks-- couple of minutes-as host.
MR. SMITH: Thank everybody for working so hard.
MR. KELCHNER: There can be any number of speeches

after.
I should think that most people have heard enough
talking.

H.M.JR: May I just interrupt you a minute? I think
it would be very nice if we asked one of the foreign delegates
to get up and propose the toast to the President of the
United States.
MR. WHITE: That is easy enough to arrange.

H.M.JR: Don't you think so?
MR. SWEETSER: Yes, and you will have to have some of

the foreign
Conference.

delegates thank the U. S., also, for calling the

267

-4MR. KELCHNER: That is later on in the closing session.

H.M.JR: But after dinner we are there, and I think-I mean, if some delegate gets up and proposes it, then I
can make a few remarks and propose a toast to all the

United Nations, and so forth, and so on. And I think it
would be a nice thing if some of the foreign delegates got
up and did it.
MR. KELCHNER: Do you have any preference?

- H.M.JR: Yes, I have a preference. If you haven't

the Russians down for something, I would suggest the

Russians.

MRS. MORGENTHAU: Then it will be in Russian.

MR. COE: No, they.can do that.

H.M.JR: They will have a fellow whispering there,

but I think if the Russians would get up, I think it

would be nice. They could propose a toast, and then I

could answer and make a few remarks. What do you think?
MR. SWEETSER: Fine.

H.M.JR: Does anybody disagree?
(No response)

H.M.JR: Don't you think it would be nice?
MRS. MORGENTHAU: Yes, I do.

H.M.JR: After all, he is running for office. We

have to begin to campaign!

MR. WHITE: And Russia has one hundred and seventy

million votes.

H.M.JR: Now, go on with the next thing.
MR. SWEETSER: You will have to call the meeting to

order, then, I should think, Mr. Secretary, to give him an
opening to do it.

268

-5H.M.JR: No, I have seen it done at dinners that Mr.
Hull had, where some foreigner would get up and tap the
glass or something and call attention, and everybody
listens. He says, "I propose a toast." Then whoever
the host is thanks him.

MR. WHITE: I think it is an excellent way. Wouldn't
that give an opportunity for a lot of ad lib speaking?
Instead of having a lot of speakers at the dinner where
they will make lengthy speeches, why don't you give a half

dozen people a chance to speak a few minutes at the table?
time.

MR. KELCHNER: I don't think there will be that much

MR. WHITE: Then it will hurry them up; it will

shorten them.

MR. KELCHNER: The service, as you know, is slow, and

with the entire crowd there, numbering between five hundred

and fifty and six hundred people, it is going to take considerable time to get through the dinner. The management

has requested that if we want to get out by ten o'clock
there be no lengthy speeches. They can't complete the
service and get out before ten o'clock.

MR. COE: Have two-minute speeches, or three-minute
speeches.

MR. SWEETSER: Aren't you going to have to be out

before ten o'clock in order to reconvene in the auditorium
and allow these other speeches to get out of the way?
MR. KELCHNER: We have arranged to have the dinner

completed at nine-thirty. That will mean that it will
carry on a little bit longer, but give ample time to get
into the auditorium to start at ten o'clock. I understand
the radio will carry part of it.
MR. SMITH: At ten forty-five the Secretary goes on
the air. Everything has to be cleared out of the way by

then.

H.M.JR: We have worked for a week on the speech to

get it just right, and on this radio time, it is like any

269

-6other public dinner, whenever the man from the Columbia

Broadcasting station says it is ten forty-five, I start.

I have just exactly thirteen and a half minutes.
MR. WHITE: Does that speech end or begin?

MR. SMITH: That will end. In other words, if you

have Keynes and three others on there, they all have to

get on and off in not more than thirty-five minutes to
leave us--

MR. WHITE: Well, that is too short a time, you have
push up the dinner. They will never get through in
thirty-five minutes.

to

H.M.JR: They can talk afterwards.
MR. WHITE: That is what I am wondering. Why does
the radio broadcast have to be the closing speech?

MR. SMITH: It doesn't have to be.
MR. KELCHNER: It should be.

MR. SWEETSER: It ought to be the closing thing, if
you could make it that way.

H.M.JR: I can explain. After all, everybody knows
that you get radio time at a certain time.
MR. SWEETSER: Mr. Secretary, you have a good speech

there, and it is the big substantive speech of the dinner.
The others are just fill-ins, anyway, and it seems to me to
end with that, and end sharp at eleven o'clock-- there is a
great deal to be said for it.
MR. WHITE: The importance of this speech is not on
the delegates.

MR. SWEETSER: No, but it winds it up. It is the

closing of the thing. If you make it, and a lot of

others trail along after you, then you have to make another
speech and say good-bye.

270

-7H.M.JR: I am going to have to argue with you a little
bit. I very much want my full fifteen minutes on the air.

On the other hand, people are accustomed to radio. We

couldn't pick the time; he gave it to us, and I would
rather not be so formal, even if it peters out and becomes
uninteresting. I mean, if some people have to speak, I
would rather have them speak after me, even though it isn't
the way you would formally do it. You are right.
MR. SWEETSER: I was wondering if you couldn't accom-

plish that by pushing the dinner up still a little more.
H.M.JR: It is all right with me.
MR. SWEETSER: And you could perhaps cut down the

number of extra speakers.

MR. WHITE: The difficulty a bout that is, there is
a strain all through the dinner, wondering whether they are
going to get through.
MR. COE: I wonder if when you come to the requirements
of the Conference-MRS. MORGENTHAU: It is eight o'clock.

H.M.JR: Why can't it be seven?

MR. KELCHNER: It is rather difficult at this stage.
H.M.JR: Why?

MR. KELCHNER: The hotel has made the arrangements,

and they had to adjust their schedules.

H.M.JR: I wouldn't pull the Presidential Powers Act

on them, but--who was it, Mr. Acheson, who said, "How
did you ever remember that?" Since then I haven't been

able to remember the correct name. Idid that today, but

not since then. It just popped out, and I threw it at the
poor fellow. Oh, I think they can move it up to seven. At
least we can try. It would make it so much easier.

271

-8-

MR. WHITE: I think it is better, Mr. Secretary,
not to worry a bout when it opens and closes, but that that hour
is reserved for the speech. Everybody knows it is a broadcast. Whether it comes at the middle or the end or in the
first part, the important thing is not the delegates. They

will understand.

MR. KELCHNER: How about the other delegates?

MR. WHITE: I would have Keynes after, because Keynes

might take more than thirty-five minutes.

MR. KELCHNER: No, he said it would be very, very short.

MR. WHITE: Well, that is different.
MR. KELCHNER: The others--

H.M.JR: Don't you want to make it definite with the
hotel for seven o'clock?
MR. KELCHNER: We were going to try to get into the

dining room at seven-thirty and have the first course on
at quarter of eight.
H.M.JR: Couldn't we try to get in the dining room
at seven and then we could have a little speaking at the
dinner; or if you get through earlier, c onvene earlier at
the Plenary Session and give these people an hour to speak
before I do.
MR. COE: Mr. Secretary, in thinking about that, I
think that is a good idea, because I think that China
would like to speak. They have talked to me. I think
we ought to have a Latin American country speak.
MR. WHITE: Brazil?

MR. KELCHNER: I would prefer to see this--and it is
a plan that has been followed rather successfully-that is to have one speaker in behalf of the other delegations,
and then there is an answer to everybody.

272

-9MR. WHITE: Oh, I think there is something to be said
for letting them speak. Back home it means more to them,
and what is the difference, another hour's speech? I think
the important thing is to keep them down to five minutes.
If you have different speakers and each on short time, it
is interesting. It is when you have severe long speakers
that it becomes-H.M.JR: Who is going to preside at the dinner.
MR. KELCHNER: You, sir.

H.M.JR: I will pull their coat-tails if they don't

sit down.

MR. WHITE: I think the thing to do is to tell them

ahead of time.

MR. KELCHNER: Those who have mentioned it have said

very short speeches, three or four minutes.
MR. WHITE: You can handle fifteen or twenty on that

basis.

MR. SWEETSER: How many do you have now?

MR. KELCHNER: Brazil, Poland, Canada, South Africa-MR. COE: You ought to have Cuba, the Russians, and

the Chinese.

MR. KELCHNER: If you have the Russians, you have to

have the French. They are insisting upon that, if the
Russians speak; they insist upon that.

MR. COE: They are good speakers.

MR. WHITE: They are coming up in the world.

H.M.JR: The person I would like to suggest is this
Norwegian.

MR. WHITE: Keilhau? He is a very emotional

speaker. If he can speak in five minutes, he will be all
right.

273

- 10 MRS. MORGENTHAU: Is this the dinner or the Plenary
Session?

H.M.JR: Anywhere. He has made a real contribution
to this Conference; the Poles haven't.
MR. WHITE: Cuba has given us more help than all the

others combined.

MR. KELCHNER: Anyone else?

MR. COE: China.
MR. SWEETSER: Holland.

MR. SMITH: I like the Ethiopian. He is a lovely
man, really.
MR. KELCHNER: He is a delightful person.

MR. SMITH: Can I please have the Ethiopian? I don't

ask for much.

MR. WHITE: I think that would be a nice gesture.
MR. COE: What about the Russians, Mr. Secretary?

H.M.JR: We are going to have him make a toast to the

President. That is a pretty important spot, isn't it?
I should think that would take care of him. He can make
his talk then.
MR. WHITE: He can end with a toast. He needn't
get up and merely make a toast, but make a statement
about the Conference and wind up with a toast to the

President.

H.M.JR: At the dinner?
MR. KELCHNER: Then you would like to have several
speeches at the dinner?

274

- 11 H.M.JR: You said you were going in the dining room at

seven-thirty. Then I think that the bulletin board should
put the dinner at seven-thirty. If we go in at seventhirty, that gives us two and a half hours.
No, I only thought we would have the one toast at the
dinner and then save the rest for the Plenary Session.
MR. SMITH: I think that would be wise, because then
you won't be worried about getting over there.

MR. SWEETSER: If it is in the auditorium, it is on
the record that it won't be in the dining room.
H.M.JR: I think just the one toast and then he can
say a little bit and announce that it is going to be at
seven-thirty. Then we move in for a Plenary Session. At
the Plenary Session you have how many people?

MR. KELCHNER: Ten, at least; eleven with yourself.
them.

H.M.JR: Too many. I would cut off about three of
MR. KELCHNER: I would cut off seven or eight of them.
MR. WHITE: It always depends on the objectives, Mr.

Secretary; it is not to give the delegates a good time.
The objectives are for the fact that they will make these

statements; there are bound to be some excellent statements.

They will be printed in English, distributed, and they
will go to these countries. As far as the delegates are
concerned, they can go to sleep. They probably will, many
of them.

MRS. KLOTZ: He is right.
MRS. MORGENTHAU: What else happens at a Plenary

Session besides having the speeches?
MR. KELCHNER: They merely accept the Final Act and

propose a resolution of thanks, which is the customary
one, to the President of the United States and President
of the Conference.

275

- 12 H.M.JR: You know, I never thought, but I wonder if
Roosevelt wants to send a message. It is too late to ask
him now, I guess. I never thought of it.
nice.

MR. COE: A one-paragraph message would be awfully
MR. WHITE: Even a two-sentence one.

H.M.JR: If you people will draft a suggestion, we
can get it through on the wires and have it the first
thing tomorrow morning.

MR. SWEETSER: Where is he, Mr. Secretary?

H.M.JR: I can't say, but if I got a message tonight,
I know how I would get it to him so he would have it at
breakfast tomorrow morning.

MR. COE: It could be something in which he said he
was thrilled at the complete agreement reached here.

H.M.JR: If you people would get something, I will
tell you how we can get it to him so that he will have it
for breakfast, and he can say yes or no.
MR. WHITE: Right after we adjourn we will do that.
MR. KELCHNER: Why not have Brazil propose the resolution
of thanks to the Government and the President of the

Conference?

H.M.JR: May I suggest these countries? I would
suggest Brazil for this hemisphere, Canada, and Cuba.
And then have France, China, Norway, U.K., and Russia will

make the toast. Is that all right with the rest of you?

MR. WHITE: Yes, I think when he tells Russia, indicates
that he says a few words and ends with a toast-own.

MR. KELCHNER: That leaves seven, and eight with your

276

- 13 -

H.M.JR: Is that all right with you, Sweetser?
MR. SWEETSER: Yes.

MR. KELCHNER: What are we going to tell Poland and
the Union of South Africa?

H.M.JR: You just haven't room for them.
MR. COE: Tell them the number was so great.
H.M.JR: Between now and tomorrow night there will be

forty other nations that want to make a speech.

MR. WHITE: Yes, two more important countries than

those two--

H.M.JR: You talk about the effect of the poor people
of Poland hearing it, and the people of South Africa-MR. WHITE: There is a Plenary Session of Commission
Four downstairs. Maybe they can make their speeches there!

H.M.JR: Do I have to answer each one of these people?
MR. KELCHNER: No.

H.M.JR: Just introduce them. I don't have to try
to give a flowery introduction, do I? I ran out of all
flowers this afternoon.

MR. KELCHNER: No.

MR. SWEETSER: You haven't any East-European, and

you have three Americans. You have three American states
plus ours.
MR. WHITE: Russia takes up Eastern Europe.

H.M.JR: What do you have in mind, Mr. Sweetser?
MR. SWEETSER: I was thinking about Poland. If you

have three American states, I should think you ought to

have somebody from Eastern Europe.

277

- 14 -

MR. WHITE: Poland is interested in it for purely
political reasons, to give her great prestige here.
MR. KELCHNER: She hasn't had anything. I have a

list of people who have had consideration; Poland has

very little.

MR. WHITE: Why don't you let Poland get up at
the dinner and make a toast to Russia?

MR. KELCHNER: There ought to be a little spread, if
possible.
MR. SWEETSER: Czechoslovakia, Yugoslavia, and Greece.

MR. COE: France is on that list, isn't it?
MR. KELCHNER: Yes.

MR. WHITE: It had better be Istel or Mendes-France.
MR. SWEETSER: You have none of the Moslem states.

MR. WHITE: Let's give it to Iran; he is good.
MR. KELCHNER:

India has a chairmanship.

H.M.JR: I don't care. You think it over, Mr. Kelchner,
and if you want to add one or two, it is all right with me.
I will give you that much leeway. Is that all right?
MR. KELCHNER: All right.

MR. WHITE: It is better to have more and have them

brief.

H.M.JR: If you want to add a couple, use your good
judgment.

MR. SMITH: Then you are going to give each five

minutes, and we are going to break in for the radio
broadcast.

278

- 15 -

MR. KELCHNER: We will try to finish it by then.
MRS. KLOTZ: You won't be able to.
(Mr. Acheson and Mr. McDermott enter the conference.)

H.M.JR: We are just breaking up.
MR. ACHESON: Mac and I are completely Russian now.

H.M.JR: Do you want to tell them before we break
up what we have done?

MR. KELCHNER: This is the plan for tomorrow evening:

The Secretary suggested that if the Russians were to propose a toast at the dinner, it would give the Secretary
a chance to reply.

H.M.JR: A. toast to the President of the United States.
MR. KELCHNER: That would be all for the speaking at
the dinner. Then at the Plenary Session, Lord Keynes--

H.M.JR: Excuse me--it would be a toast to Roosevelt

and Truman.

MR. KELCHNER: Lord Keynes would open, and then the

following Delegates were suggested to give brief remarks,
either supporting that or in the thank-you resolution, and
so forth: Brazil, Canada, French Delegation, Norway, Cuba,
and China. And then, of course, we would have the Secretary's
closing address which will be broadcast.
There was a question about Poland. Poland is very
much interested in appearing, and I think everyone agreed

that all of these should be brief, three or four minutes.
MR. ACHESON: I should think so.

H.M.JR: Harry White announced that nobody was coming

after a good time, anyway, so he wanted to be sure they
didn't enjoy themselves.

279

- 16 MR. McDERMOTT: This toast to the President of the

United States--i is perfectly proper, but the Russians
will expect a toast to Stalin in return. That opens
the thing for forty-four nations.
MR. WHITE: It opens up the whole eastern front!

H.M.JR: No, I thought that would give me a chance to
make a toast to the forty-four United Nations.
MR. McDERMOTT: All to be included in one toast?

H.M.JR: That is what we intended, toast the forty-

four United Nations and the Conference.

MR. WHITE: Roosevelt is being toasted as the host.
MR. McDERMOTT: But coming from the Russians--the

Russians always toast Roosevelt and Stalin. They feel it
is almost obligatory.
MR. WHITE: It is Roosevelt and Truman now.
MR. KELCHNER: We might have the Canadians-MRS. MORGENTHAU: Then you would have no difficulty,

because they wouldn't expect you to--

H.M.JR: Who? I don't think it has quite the significance.
MR. COE: And on the other hand, I think it won't
be so satisfactory to the Canadians.
H.M.JR: I am not worried; I am going to toast the
forty-four United Nations.
MR. McDERMOTT: That is all right.

H.M.JR: Are you agreeable to that?
MR. McDERMOTT: Absolutely.

280

O

- 17 MR. ACHESON: There is one thing that has disturbed

me this afternoon somewhat, and that is the resolution on
the Report of the Coordinating Committee. I think that we
have to find out exactly what the Australian is going to
do; and if the Australian is going to sign on the basis of
our telegram then I think we can't have that Coordinating
Committee's Report in the Final Act.
MR. WHITE: Why?

MR. ACHESON: Because it is exactly what we cabled the

Australians we weren t going to do, that is, to recommend
that the various countries adopt these.

MR. COE: No, sir, it doesn't say that. It says that
the Articles of Agreement drafted here, the projects, will

now
be submitted to the Governments. It doesn't say who
submits them.

MR. ACHESON: I understand that, but there is a lot
before
that
about the Conference agreeing that these things
should be
done.
MR. COE: That is true.
MR. WHITE: That is what they have been here for three

weeks doing.

clear.MR. ACHESON: I just want to be sure, to be perfectly

H.M.JR: Would you mind, Dean, very much -- I am trying

to finish up my little talk-- if you and Coe and whoever
is working on this--you don't need me on this, do you?
MR. ACHESON: We don't, if I agree with what these
fellows want todo.

H.M.JR: If you don't agree, t elegraph Moscow for

instructions. (Laughter)

281

JULY 21, 1944
TO SECRETARY MORGENTHAU

FROM THE PRESIDENT

PROPOSED DRAFT OF TELEGRAM TO BE SENT TO UNITED NATIONS
MONETARY AND FINANCIAL CONFERENCE AT BRETTON WOODS
APPROVED.

F.D.R.

END

RECD 1225A JULY 22,1944

282

To:The President
From:

THE WHITE HOUSE

Secy margenthere WASHINGTON
Bretton Woods
July 2I, I944

As president of the united nations monetary and financial
conference at Bretton Woods
) please convey to the
representatives of the 44 nations gathered there my
heartiest congratulations on successful completion of

their difficult task. They have prepared two further
foundation stones for the structure of lasting peace and
security. They have shown that the people of the united
nations can work together to plan the peace as well
as fight the war. As the inkaginax delegates and technicians
depart for their various countries, express to them my
heartiest appreciation for the efforts they have made in
coming here.

Dictated by Frederick Smith from Bretton Woods
II20 PM

o

283

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

DATE July 21,
1944
TO

Secretary Margenthau

FROM

Mr. Haaa

Subject Security Market and Banking Developments During
the Fifth War Loan

I. Prices of Taxable Government Securities
Show Little Change

Prices of taxable Government securities were relatively
firm during the period of the Fifth War Loan drive and have
since registered modest gains. Prices are now moderately
above their levels immediately preceding the opening of the
drive, except in the case of the earliest bond maturities
which have declined slightly.
The partially tax-exempt issues have been subject to
somewhat greater price swings since the beginning of the
Fifth War Loan. The shorter maturities registered declines,

which only partly reflected the run-off in interest, and the
longer maturities improved, reaching a peak on July 10.
They have since declined, but continue to sell at prices
well above their pre-drive levels.

The three new issues of marketable securities offered
during the Fifth War Loan drive were quoted for the first
time on Monday, July 10. At the close of that day, the
certificates were quoted on an 0.80 percent basis, bid
(slightly above par); the 1-1/4 percent notes of March 1947
at 100-8/32+; and the 2 percent bonds of June 1952-54 at
100-8/32. These quotations compare with current (Friday
opening) quotations of 0.78 percent for the certificates,
100-10/32+ for the 1-1/4 percent notes, and 100-10/32+ for
the 2 percent bonds.

The reopened, restricted 2-1/2's of 1965-70, which
were quoted at par, bid, during and immediately preceding
the drive, moved up to 100-1/32 on Monday, July 10, and are
now quoted at 100-4/32 bid. The current quotation for this

issue is slightly out of line with (higher than) earlier
maturities of restricted 2-1/2's.

284

Secretary Morgenthau - 2

II. Excess Reserves Rise as Result of Fifth War Loan
Payments for drive securities through the medium of War

Loan Deposit Accounts, and the consequent release of member

bank reserves, have resulted in a sharp increase of member
bank excess reserves. From a low between drives of $630 mil-

lions, and from a level of $711 millions on May 31, excess
reserves had advanced to $1,462 millions on July 19, the
most recent statement date Chart I).
The release of member bank reserves has also resulted

in an improvement in the reserve ratio of the Federal Reserve
Banks, as member banks have drawn on their excess reserves
to repurchase Treasury bills from the Reserve Banks. The
Federal Reserve ratio, which touched a recent low of 55.5
percent on June 21, had risen to 56.5 percent by July 5,
where it also stood on July 19.

III. Large Proportion of Drive Securities
Financed by Bank Credit

Total loans of weekly reporting member banks reached

a low following the Fourth War Loan of $10,081 millions on
May 31 (Chart II). During the six-week period from May 31
to July 12, total loans of these banks increased by $2,250
millions. The greater part of this increase was accounted
for by loans to purchase or carry Government securities.
Details are shown in the following table:

In millions of dollars
Commercial loans

Security loans:
For purchasing or carrying
Government securities
Other security loans

All other loans
Total

+194

+1,907

+114
+35

+2,250

About 60 percent of the increase in total loans occurred in
reporting banks in New York City.

During the same period, all weekly reporting member

banks increased their investments by $4,973 millions, of
which $4,888 millions consisted of holdings of Government

285

Secretary Morgenthau - 3

securities. About 35 percent of the increase in Government
security holdings was accounted for by banks in New York City.
Details of the increase in investments of weekly reporting
member banks, from May 31 to July 12, are shown in the following table:

In millions of dollars
Government securities:

Bills
Certificates

+1,324
+2,212

Bonds

+1,012

Notes

Guaranteed

Other investments
Total

+6

+4,888
+85

+4,973

The foregoing figures indicate an increase in the loans
and investments of these banks, during the six-week period,
of about $7.2 billions. Almost all of this increase represents the direct or indirect bank financing of securities
offered during the drive (including, of course, in addition
to the drive securities proper, the increase in Treasury
bills and the sale of bonds to commercial banks for the
investment of time deposits). Inasmuch as the above figure
of $7.2 billions applies only to weekly reporting member
banks in 101 cities, it is to be presumed that the total
bank financing of Treasury borrowing during this period
was substantially larger. The increase in loans and investments of weekly reporting member banks during the corresponding six-week period of the Fourth War Loan (during which
the Treasury bill volume was unchanged) was only $3.5 billions,
or about half of that during the Fifth Loan.
IV. Fifth War Loan Results in Movement of Treasury
Bills from Federal to Commercial Banks
Following June 26, the payment date for the market issues
offered during the War Loan drive, the movement of Treasury
bills, which had been predominantly in the direction of the
Federal Reserve Banks, was reversed; and bills began to flow
on balance into the member banks. In the three statement
weeks ended Wednesday, July 12, Treasury bill holdings of

286

Secretary Morgenthau - 4

the Federal Reserve Banks decreased by about $600 millions.

Bill holdings of weekly reporting member banks in leading
cities increased in the Baine period by nearly $1,250 millions
(more than half of which increase was accounted for by reporting banks in New York City and Chicago). Acquisitions by
these banks were thus more than enough to absorb the securities disposed of by Federal and the $600 millions increase
in the outstanding supply during the three-week period.
This emphasizes the secondary reserve characteristio
of Treasury bills. To the extent that payment by bank depositors for their purchases of drive securities was effected
through the banks, the result was not a transfer of cash, but
a substitution of War Loan Deposits, against which no reserve
is required, for individual deposits, which do require a reserve. The banks invested some part of the reserves thus released (member bank reserves decreased by $909 millions in the
three weeks ended July 12) in Treasury bills and other Treasury
securities, which they can sell to the Reserve Banks in the
future, as withdrawals of War Loan Deposits and the growth of

individual deposits call for additional reserves.

Since May 10, the outstanding bill volume has increased
by $1.8 billions. During the same period, Federal Reserve
holdings of bills have increased by $1.2 billions. Something
of this order of magnitude was to have been anticipated. As
had been expected, the principal result of the bill increase
has been a check in the attrition of bank secondary reserves
which had been going on since the bill volume became stabilized
in mid-1943. Commercial banks have been enabled by the increase to obtain additional reserves without depleting further
their aggregate Treasury bill holdings.
V.

War Loan Drive Restrained Growth

of Money in Circulation

Money in circulation increased by $449 millions during
the period May 31 to July 12. This is about $150 to $200
millions less than would have been expected during this

period, allowing for all influences other than that of the
drive itself. It is, therefore, probable that the drive
held down the rise in money in circulation by this amount.
VI. Final Results of Canadian Sixth Victory Loan
The final results of the Canadian Sixth Victory Loan,

which was offered April 24-May 13 with a goal of $1,200
millions, were announced recently. Subscriptions totaled

287

Secretary Morgenthau - 5

$1, 408 millions -- the equivalent on the basis of population
of $16,200 millions in this country. This constituted the
largest cash loan ever floated in Canada, exceeding slightly
the $1,383 millions of new money obtained in the Fifth
Victory Loan last fall. It was almost double the amount,
$730 millions, of cash subscriptions to the First Victory
Loan in June 1941.

The number of applications received likewise has increased with each new drive and reached a total of 3,770,000
in the latest campaign, compared with slightly less than one

million in the First Victory Loan.

Attachments

288

Chart I

MEMBER BANK EXCESS RESERVES
DEC

FEB

APR

JUNE

1945

1944

1943
AUG

OCT.

DEC

FEB

APR.

AUG

JUNE

OCT.

DEG

FEB.

APR.

JUNE

DOLLARS

DOLLARS
Billions

Billions
2.8

2.8

2.4

2.4

2.0

2.0

All Member Banks
1.6

1.6

1.2

1.2

.8

.8

.4

.4

O

O

.8

.8

.4

remain

.4

New York City Banks

o

O

-4

-.4

.4
.4

Chicago Banks
o
o

-.4 1111

DEC

.4

FEB

1942
Office of the Secretary of the Treasury
Division Research and Relates

APR.

JUNE

1943

AUG.

OCT.

DEC.

FEB

APR.

JUNE

1944

AUG.

OCT.

DEC.

FEB.

APR.

JUNE

1945

F-251-C

289
Chart II

LOANS OF ALL WEEKLY REPORTING MEMBER BANKS
1937

DOLLARS
Billions

1938

1939

1940

1941

1942

1943

1942

1944

TEE

1944

1943

DOLLARS

DOLLARS

Billions

Billions

MONTHLY

WEEKLY

13

12

13

13

13

12

12

12

Total
11

10

11

11

11

10

10

10

Total
9

9
9

9

8

8

8

8
7

7
7

7

Commercial
6

6
6

6

Commercial
5

5

5

5

4

4

4

4

All Other

All Other

3

3
3

3

Loans on Securities

2

2

2

Loans on Securities

I

I

2

I

I

Hm
o
o
o

M
A

A

J

J

F

J

D

1942

M

1943

o

S

1944

N

1943

D

1942

J

1941

F

1940

M

M
A

J

1939

J

1938

N

A

0

S

D

o

1937

1944

Office of the Secretary of the Treasury
Devides Research - Statistics

F-342

290

MEMORANDUM FOR THE SECRETARY.

July 21, 1944.
Mail Report

The week's mail offered little that was quotable,
for it was made up in great part of briefly stated
requests and inquiries. In the Letters that contained opinions, disapproval was the common note;

thus it happens that nearly all of the excerpts, in
the pages that follow, fall under the heading
"unfavorable". A few especially vigorous protests

accompanied clippings of news articles that reported
destruction of quantities of American-owned goods in
Canada, or that told of use of gasoline and of public
funds to provide special entertainment for prisoners
of war. Now and then a writer objected to some phase
of the International Monetary Conference, but the
Conference still received surprisingly little comment.
Except for 20 sharp demands for refunds, tax
mail was colorless. Several Members of Congress forwarded copies of a letter from The Lincoln Electric
Company asking Congressional aid in preventing collection of additional income taxes assessed by the
Treasury. Two or three letters, similarly worded,
inquired whether or not Montgomery Ward had been

allowed to deduct its large advertising expenses
from its income tax returns, and, if so, why the
International Latex Company had not been granted
such deduction.

Reports of rumors that War Bonds will soon be

frozen, or will be invalidated at the end of the war,
continue to arrive in each week's mail, and often

they are said to have originated among service men
stationed abroad. The 82 bonds submitted for redemp-

tion represented a higher than average figure.

Increased living costs, difficulties with service

291

-2Memorandum for the Secretary.

July 21, 1944.

allotments, and failure to receive tax refunds were
the chief reasons for cashing bonds, as given by
those who replied to the slips enclosed with checks
for redeemed bonds. Other bond mail, quite heavy,
related to routine procedures, or to suc cesses of
the Fifth War Loan Drive.

Seven donations, ranging from an old, large-sized

five dollar bill to five hundred dollars in bonds,

were made for furtherance of the war.

G. E. 7mbuch

by Ray Peason

292

General Comments

Albert F. Auerbach, Lowell, Massachusetts. I am sending you, under separate cover, $500.00 in U. S. War
Savings Bonds which I am returning to the Treasury as
my contribution for the Victory March of our brave
and daring Armed Forces. I know that the cost of this
war has been terrific and believe that every American
should do his share to help reduce our war costs in
order to bring about a balanced economy. After all,
lives are more precious than money.
Miss Angel Understanding, New York City. PEACE
Enclosed please find $5.00 in cash and $125.00 in

five Defense Bonds, all a free gift to Uncle Sam sent
through the mind and spirit of Father Divine, whom
you will please inform. That we may have a speedy
Victory, I remain, Sincerely, Angel Understanding.

E. H. Fischer, Jr., Rochester, New York. Perhaps

the reporting of the Bretton Woods money conference

in today's New York Herald Tribune is inaccurate or
incomplete, nevertheless there is no mention of our

very loyal Allies, the Italians, as having any part,
now or later, in currency stabilization or international
trade. * * * It certainly could not be that we are considering the economic isolation of a group who are just
as devoted to the cause of world security and national
stability as any of our other allies and who are only

too willing to join in its fulfillment. It would seem

that a great blow against the Axis could be dealt by
giving Sforza and the Italians the same consideration
in our plans as we have granted De Gaulle and the Free

French.

293

-2J. Stanley Robinson, St. Louis, Missouri. I'm sure the
general public as well as our neighbors and ourselves,
read with interest your recent episode with the price
of a sandwich at a Chicago lunch counter. Wish to
emphasize that it was a lot of satisfaction to note
that an adjustment was made in the prices following

your visit It is certainly gratifying when a just
criticism results in justice, is it not? Incidentally,
if you have occasion to visit in the fair city of

Houston, Texas, in the great southwest, I wish you

would try to find time to eat at a certain cafe across
the street from the Texas State Hotel and let me know

if they are still charging thirty cents for a plain

beef sandwich and seven cents for a small glass of
buttermilk (uniced). Congratulations on the success
of the United Nations Monetary Conference, I'm sure
that we all wi sh that your forecast of the Conference
being "an omen of the international cooperation we may
expect when we sit around the peace table", will come
true sooner even than we had hoped.

294

-3Unfavorable Comments on Bonds

B. Bennett, Putnam Mills Corporation, Textile Manufacturers, Putnam, Connecticut. May I call your
attention to a loss or theft of two $5,000 28% coupon
bonds due 1965 and 1970. * * * Mr. S. Mortimer Bloom,
to whom I have sold these two $5,000 bonds, received
them from our bank, Cargill Trust Company, at Putnam,
Connecticut, on Saturday, July 8, has either lost them

or they were stolen. I immediately notified our bank,
and they in turn notified the Federal Reserve Bank in
Boston, telling them of this loss, and their answer
to him was not exactly in these words, "Well, that's
just too bad -- it is just as if Mr. Bloom had lost
two $5,000 bills out of his pocket". Now it seems to
me that while I know these bonds are not registered,
there surely cannot be any harm notifying all banks,

or whatever method you have, if these bonds were stolen
from the Government to try and stop payment, as long

as we have serial numbers. It just doesn't seem fair
to receive an answer of "it's just too bad", on a
$10,000 loss; and I am quite sure that with a little
assistance, some time or other these bonds may show

up, and be returned to the proper owner with the
Government's assistance. * # *

H. N. Meashan, Glendale, California. By accident
I tuned in on Harold (alias Boak) Carter and heard
him broadcast Thursday that the loan was subscribed
and there was no reason to strain any longer to buy

bonds, although the Los Angeles quota was way behind,

and slackers gave Carter's broadcast as a reason not

to buy. It looks to me like Boak Carter is subversive.

E. J. Welsch, Cashier, First State Bank, Mendota,

Illinois. During the Fifth War Loan Drive, as well as

the previous Drives, the banks were not allowed to enter
subscriptions for various issues of bonds. We as a

295

-4bank entered into these Drives willingly and wholeheartedly, devoting our time and energy to making
them a success. Now that the Fifth War Loan Drive is
closed on some of the issues, we as a bank can purchase these bonds on the open market at a handsome

profit of someone, within twenty-four hours after
the close of the Drive. What puzzles me is where do
these bonds come from that are now sold on the open

market in such a short time? The particular issues
I have in mind are the 2% 1952-54's and the 11-1947's.
Subscription on these issues closed on July 8th. On
July 10th the 52-54's were quoted on the open market
at 100-10/32. 100-12/32, and the 11 were quoted at
100-10/32. I would like to be enlightened as to the
reason why the banks cannot subscribe for a reasonable
amount of these issues at par.
Walter L. Bachrodt, Superintendent of Schools, San Jose

Unified School District, San Jose, California.

I have worked and have attempted to work in every one
of our War Loan Drives. I was Chairman of one of them
and have been a very active part of all of them. Here
is my complaint. We do everything that we know how to
sell "E". "F", and "G" Bonds. We hammer and we pound
just as hard as we know how. We fill our local press
with a constant flow of statements concerning the fact
that we are not selling enough "E" Bonds, according to
the quota assigned to us. Then-just in the midst,
when we are attempting to arouse our small bond pur-

chasers to really do their duty, we hear the official
announcement of the Treasury Department on the radio

that the Fifth War Loan is a success and has gone over
the top. You know and I know that this is not true.
You set a certain quota for "E" Bonds and the Nation

fell far short of that quota. The big fellows did their

duty and the total Drive went over, but the part of the
Drive that takes the time and energy is a miserable
failure. You destroy, by not announcing a complete
story from Washington, all the effect of our local
campaigns. Here is my proposal: When the next War

296

-5Loan comes along let's set the War Loan that the big
fellows buy a month ahead of the "E" "F", and "G"
Bonds. Let's have an over-subscribed War Loan by the
big fellows and then hammer home to the small bond purchasers that they must also do their duty. Let's have
a quota for small bond purchasers only, and if we fail,
let's be big enough and strong enough to announce that
we failed. You are completely destroying the morale
and the work ability of the hundreds of doorbell ringers
that we recruit for each one of the War Loans.

Senator Harry Flood Byrd transmits the following letter
he has received from Mr. Allen G. Roach, Executive
Secretary of the Citizens' Temperance Foundation,
Richmond, Virginia: "While in the city of Lynchburg
during the recent War Bond Campaign, I observed that
the contents of a mercy bomb -- a bomb which apparently
is provided by money invested in "E" Bonds -- were
tangibly displayed in the window of - the building where
bond headquarters were maintained. Among other items,

I noticed that a pint bottle of liquor was featured as

one of the most conspicuous items of the bomb kit. Now,
Mr. Byrd, I should like to know whether or not the
"E" Bond money or the money derived from the sale of
any other type of bonds is really being used to provide
mercy kits, with liquor included, for the men and boys

who are fighting in defense of our country. I want to
know if the inclusion of liquor in said bomb kit is
sanctioned and endorsed by the Government. Therefore,

I am respectfully asking that you please advise as to
the facts concerning the subject.
If

I have two of my
F. A. Shailer, New York City.
very best friends interned in the Santo Tomas Camp in
Manila. True Americans they are, too, and would have
been among the first to buy bonds if they could.
I wanted their names on the list and tried to buy a
bond for each of them. The bank found that Regulation
No. XYZ prohibited that because they are now in enemy

297

-6territory. It was suggested that a New York address
would suffice. I couldn't do that because their
residence is Manila and has been that for over thirty

years. It was then suggested that if I would

certify that they were American citizens and that
I would hold the bonds until they returned to this
country, the bonds might be issued. I wrote the
bank to that effect, but then found that Regulation

PQR prohibited that. In its effort to be helpful,

the bank thought the bonds might be issued and frozen
for the duration by some Governmental Agency, prob-

ably a part of your Department, but I anticipated so
much trouble in thawing them after the duration that
I

simply asked for my money back.

The regula-

tions should not apply in this case. I would like

to know what danger lurks in one American's buying a
registered War Bond in the name of another American

unfortunate enough to be interned. In the first
place, I am not so stupid as to try to mail the bond
to Manila. The military authorities would not be so
careless as to let it go. And if it were in the hands
of a
Jap, what could he do with it? It seems to

me there is a much greater danger of invasion money

getting over the lines. * * If I did not feel so

intensely the disappointment of not buying these bonds,
I would not have written at such length to a very busy

public servant, but as a tax-paying citizen, I thought
I would be justified in doing so.
C. H. Vincent, R. R. 1, Avoca, Michigan. During the
past two and one-half years I have been investing

about 25% of my income in defense bonds, savings bonds,

etc., and leaving them in the Federal Reserve Bank
(Detroit Branch) for safe keeping. Last week I mailed
them a $500.00 savings note and was astonished to have

them return it with the explanation that their vault
capacity would not permit their storing anything except

what they termed "defense savings or war savings",

which seems to be a fine point of differential. Their

298

-6-

explanation of limited vault facilities is so
ridiculous that no intelligent official would ad-

vance it -- a $500.00 savings note occupying less
space than, say, twenty $25 bonds. It is merely an
attempt to influence the type of bonds purchased,

and is right in line with much of the thinking that

has emanated from Washington during the past ten years.
Personally, I shall purchase no more Government Bonds

of any kind until they make provision for safeguarding
them as promised.

Harry B. Vickers, Postmaster, Brunswick, Georgia.
For some unknown reason the shipyard workers in this
city are cashing a tremendous amount of bonds. To

give you an idea of those certified in three days
alone by this office, the figures below are supplied
from an accurate count.

647 $25 Bonds amounting to $16,175.00 (Maturity Value)
63 $50
24 $100

Total:

If

"

$ 3,150.00
2,400.00

$21,725.00

At the above rate it appears that the amount of bonds
being cashed of the series "E", other than the Bond

Drive, is equal to the amount of sale of this type
bond. In recent weeks something appears to have

agitated the colored race and they too are unloading
stacks of bonds, and so far, I have been unable to
ascertain any cause for such action. I am sure that
there will be a certain amount of these bonds cashed
every day in the year, but when there appears to be
no reason for such action, either from the point of
income tax, or otherwise, then there must be some

agitation bringing this about. It is either propaganda
from the Fifth Columnist or possibly the work of our

local loan sharks which appear to take great interest
in this type of person cashing his bonds in order
that they may reap big percentages which they obtain
from advanced loans on the sale of these bonds.

299
7-

Unfavorable Comments on Taxation

Senator William Langer, (North Dakota), sends the
following letter he has received from James F. Lincoln,
The Lincoln Electric Company, Cleveland, Ohio: "I am
appealing to you after having exhausted every other method

available for our protection. Our problem is of national
importance. The Treasury Department does not understand

our incentive system. Because of its lack of understanding, it has assessed us for the years 1940-1941
over $1,600,000. This amount is actually a large part
of the compensation of our men during that period. The
Treasury Department says we can't call it compensation

although their stabilization branch allows it as such.
The Treasury Department refuses to understand the fact
that because of this incentive system the wages paid

per piece produced is less than one-third that of any

other manufacturer in the country making a comparable
product. The Treasury Department merely says no man
who works with his hands can be paid that much, regard-

less of what he does. * If the assessed penalty

against us for the years 1940-1941 is repeated in the
following years, which undoubtedly will be done if the

Treasury is successful in collecting this first assess-

ment, it means insolvency for The Lincoln Electric
Company. Since we are the outstanding example of incentive wage payment, such an outcome must eliminate

all incentive throughout American industry."

N. Jerome Kaplan, President, Retail Dry Goods Employees

Union, New York City. For the past three years the

Montgomery Ward & Company has carried on a political

campaign against the policies of the United States
Government in part through a series of advertisements
placed in the newspapers throughout the country. In

an official report to the stockholders, Mr. S. L. Avery
recently stated that the Montgomery Ward had expended

the sum of $640,000 in the type of newspaper advertising referred to above in a short period. The expenditure of these sums has been duly criticized by many
stockholders of Montgomery Ward & Company as an unnec-

essary expense. In the name of our 2000 members we

300

-8request the Treasury Department to advise us or
state publicly whether or not these sums are now
permitted to be deducted from the corporation's taxable income under the present existing Internal
Revenue Statutes. If this company is permitted to
now deduct the sums being currently expended in its
political campaign to intimidate the House Investigating Committee, we would appreciate being advised as
to the distinction between this expenditure and that
of the International Latex Company whose expenditures

for advertising in the public interest has recently

been denied tax exemption as a proper business expense.

301
FOR VICTORY

OFFICE OF

TREASURY DEPARTMENT

BUY
STATES

WASHINGTON 25
STAMPS

THE SECRETARY

July 21, 1944

MEMORANDUM TO THE SECRETARY

I am enclosing a list of the
special items valued in excess of $50,000

as of July 17, 1944.

blow

E. L. Oirich
Assistant to the Secretary
Enclosure

PROPERTY FOR DISPOSAL

SPECIAL ITEMS VALUED IN EXCESS OF $50,000

AS OF JULY 17, 1944

Quantity

Unit Cost

1,089,733

$

Cost to Govt.

Gasoline Cans, 5, 71 Gal.

Three lots of cans designed to
transport gasoline in small
quantities to point of use. None

1.75 (av.) $ 1 910 000

is a standard "Blitz" can. Each
has special characteristics; each
type is different from the popular
"Blitz" model.
Batteries, Dry Cell and Packs

50 types in varying quantities.
Ranging in cost from $.05 to $5.80
each. Over-age for Army use. A

maximum of $246,000 worth (cost to

gov't.) in undetermined status. A

large percentage are believed to be
sold. Another large percentage now

on invitations to bid. Report will

be current by August 1.

50 000

Page 2

Quantity

303

Unit Cost

Cost to Gov't

Incinerators, new
For human excretion only.
Capacity 2000 lbs. per hour.
No market in sight.

34

$

98.18

$

333 812

Furnaces, Hot air, 011 fired
New, for homes. Cannot be installed in new homes because of

659

69.25

51 058

8640

4.60

53 206

fuel regulations. An offer from

the trade is believed on the way,
looking towards use for replacing

worn-out furnaces.

Sinks, Enameled, Cast Iron

Kitchen sinks, ranging in size

(sinks only)

from 12" square to 24" square;

with 9813 cast iron traps. No

Gov. agency interested. Region
will propose issue of bid

invitations.

Wood Screws, Brass, new

Bid invitation are now out.
Will be opened July 21st.

500 tons
1634 items

357 000

Page 3

Quantity

Unit Cost

Cost to Govt.

Rubber Gloves

Anti - gas and commercialhousehold types. Anti-gas
gloves are probably long sleeve
type - sample not available.
Household type are black, and

210,751 pr.

$

56 142

are standard. Offer of 35c per
pr. for latter has been received.

Hats, Army Service

The old style, broad brimmed,
campaign hat. List of re-makers

119,928

$ 3.00

359 784

is being obtained. Item will be

offered to them for reprocessing.

An offer of 25c each was made by
chain store group Hn Arizona.
Brims are too wide and sizes are
too big for Boy Scouts, who have
discontinued the style, anyway.
Leggings

Spiral wool and laced canvas types.

Old and in poor condition. Bid
invitations are being sent out.

213,280 pr.

109 833

Page 4
305

Quantity

Unit Cost

Cost to Govt.

1,400,312

$ 0.075

$

Sand Bags, New

Some osnaburg - some burlap.

Invitations to bid are out on

109 814

balance shown.

W. A. C. Caps

Appears to be a salvage item

76,712

2.20

168 766

464,676

5.70

2 648 653

464,000 sets
Two piece, enameled iron rods,
screwing together to make "T"
shaped support for one end of
mosquito bar. Two pairs (4 pcs) are need
for each mosquito bar.

0.21

97 444

54 in. to 72 in., rolls. We are
contacting shoe mfrs. before sending
invitations to bid.

2.00

326 172

Mosquito Bars, new

Rectangular tents of netting.
Excellent quality. Some commercial
interest has developed since news

release was issued. No definite
offers.
Rods for Mosquito Bars

Filter felt (new)

163,086 yds.

Page 5

Quantity

Unit Cost

Cost to Govt.

Cotton Duck, #4

42" fire, water and weather
resistant. New item; no action

$ 115 879

76,741 yds.

as yet.

Shoes, mens, Army types

Sale was negotiated with two

mfrs., for repurchase. Last

145,000 pr.

$

3.50

507 500

Saturday Army withdrew 10,000

pairs of the best sizes, making
it necessary to re-contact the
two mfrs. who had agreed to re-

purchase.

Shoes, nurses, new

Office of Civilian Requirements
(W.P.B.) is to hold a meeting of
shoe mfrs. and retailers in
regard to this item. Their answer
is due Wednesday of this week.

42,000 pr.

3.00 (av.) 126 000

Page 6

Quantity

307

Unit Cost

Cost to Govt.

Shearlings
Tanned sheepskin with wool

left on. This is remainder

900,000 sq.ft. $ 0.50(est.) $ 450 000

of approximately 11 million
sq. ft. which have been sold
to F. E. A. and public at
prices averaging 29c per sq.
ft., which is above present

market price.

Dichlorimine T. (antiseptic)
World War I item, called Dakin's
antiseptic. Has no marketable
value. Has oil base that may be
rancid. Being tested by American

298,646 pts.

1.67

498 738

Pharmacentical Assn.

Medicines and Medical Supplies
Non-standard and obsolete items

in New York depot. An outlet for

instruments is being developed
through F.E.A. Deteriorated
medicines remain a problem.

52 288

Page 7

Quantity

Unit Cost

Cost to Govt.

Dental supplies and equipment
$

Veteran's Administration stock

100 000

at Perry Point, Md. List is being reviewed by Lend Lease to determine what
can be used abroad.
Hydrogen Peroxide, 8%

In pound bottles. Barber and Beauty

351,022 lbs. $ 0.35

122 813

Shop Assn. is circularizing its

membership in regard to its use at
this strength.
Talc

A coarse grade of talc made for use
as a gas decontaminating agents.

5,759 tons

200 000

2386 tons in 41 lb. pkgs. 3373 tons in
50 lb. packages. Sales have been made

in regions previously at prices ranging from $1.00 to $9.00 a ton.

Surgical Supplies and Instruments

Louisville Army Depot declaration.
List has been screened through the
medical trade associations. Many items

obsolete. Advise is that its sale will

not upset the trade. The Region is to
S and out invitations for bids.

250 000

Page 8

Quantity

Unit Cost

67,600

$ 10

Cost to Govt.

309

Smoke Generators

Obsolete, individual smoke
pots with chimneys. Has been

"on bid", with no offer over

676 000

$

&

7/19/44

$.11 each. They consume too much
011 and make too much smoke for use as

226460

3 + modian of 10.00

smudge pots for agricultural use.
Smoke generator, vehicular, parts

Motorized generator piping, valves,

fittings oil filter cartridges, etc,

in great quantities. New declarations
just received. No action, as yet.

These are standard parts that can be
sold in hardware stores.

277 000

Platform trucks, steel, new

Steel trucks, on casters. Size
6'x4'. Designed to move airplane
engines on air field. Quartermaster
will cancel request for withdrawal,
since size is wrong for their use.

Quantity represents 3 years production

of this type truck. Sales are being

made to test the market.

13,287

75

996 525

Page

Quantity

Unit Cost

Cost to Govt.

Diesel Engines, Complete

Air cooled, nine cylinder redial type.

$ 2 300 000

131

This Division has asked Army to withdraw the property and re-sell the
engines to their maker.

Engines, Cadillac Automobile

125 H. P., with spare parts and
panel units. Without transmissions.
Region has been notified that Army
may withdraw the engines for installa-

260

$ 355

126 062

(engines only)

tion in light tanks.

Cameras, Aircraft
Each camera has great variety of
collateral equipment. Obsolete

307 386

96

type. Physical inspection being
made. Informal negotiations with
Fairchild Camera Co. in process.

Disc. Wheels for gun carriage

Disc wheels, rims, and tires for 105
mm gun rolling carriage. Used. In
good condition. The special size tire
(5.50 x18.00) resulted in refusal by
Lend-Lease. It is proposed to remove
tires and dispose of them as part
0 the tire and tube program.

7,417

12 (est)

89 000

Page 10

Quantity

313

Tires, Rubber, Truck & Bus
Tubes, Inner, Truck & Bus

Unit Cost

70,164
26,037

Cost to Govt.
$

2 228 150
246 310

New and used. Disposal program

has been presented by specialist.
Decision awaited.
Spare Parts, automobile, new and
Used

3 000 000

Two declarations - Fort Crook, Neb.
and Richmond, Ky. Consultations
with representatives of the 4
manufacturers being held currently,

with W. P. B. participation. Con-

tracts are still in "talking" stage.

Scabbords, bolo

An obsolete scabbord for a bolo
knife. Made of hickory, duck covered,
trimmed with calfskin, with web belt.
Has no value except for use with a

114, 290

$ 1.60

190 864

particular knife none of which is

available.

Ammunition Boxes, Wood

Small size - 1 cu. ft. capacity,

fastened with wing nuts. Larger
quantities were sold favorably at
recent date. This lot has been offered
meat pakers through W. F. A.

85,000

0.75 (est)

63 500

Page 11

Quantity

Unit Cost

Cost to Govt.

372

Imprinting Machines, new
An Addressograph plate press,

20,000

$

21.95

$

439 000

portable, used to obtain impression of soldier's "dog tag"
in the field. Four oil companies
studying possibility of using
device in service stations to obtain
impression of customers' "charge-aplates."

Bicycles, new

Specialist recommends that regions

be instructed to contact federal,

2,000

28. (av)

56 000

state and local agencies to move this
balance. All agencies in Washington
area have been solicited.

Belt Pockets for cartridge Clips
Web pocket with fastener. A radio
advertiser has taken option on lot
after purchasing a small lot at $0.06.

1,000,000

0.10

100 000

Spurs, new and used

Radio advertisers decision is expected
this week, on quantity purchase for
novelty "give-away."

261,000 pr.

1.40 (av.) 365 400

Page 12

Cost to Govt.

Quantity

Unit Cost

37,000 pr.

$ 4.25

5,744 pr.

14.50

93 288

9.00

105 654

313

Snowshoes, Emergency

Paratrooper's special type.
Has no value as sports item.

$

157 250

Skiis, laminated

7 ft. and 71 ft. hickory, ridge-

top, laminated skiis with steel
edges, Painted white. 71 ft.
size not popular for general sport

use.

Snowshoes, used

Serviceable, trail and bear paw
type snowshoes. New declaractionno action as yet.

11,745

Cots, wood and metal

Single and double deckers, and bedsteads, such as used in cantonments.
Marketing plan in process.

15,000

60 000

Bed Parts

Springs, metal fabric, heads, feet,
and side rails, etc. We are working
with bed mfrs., looking towards repu chase.

50 000

Page 13

Quantity

374

Unit Cost

Cost to Govt.

Cuspidors

Three types, large medium and

70,000

small. Sales plan to dispose of
item through chain stores in

$

.80

$

56 000

"Saturday night" towns is being

devised.

Pillows, new and used

Some cotton; some father pillows.
134,710 new; 449,313 used. Plan

584,027

0.73

426 339

is being formulated to distribute

new merchandise nationally in areas

where a market exists for the particular type of article. No sound method
yet devised for sale of used pillows
needing sterilization.
Mattresses, new and used

182,879 new (all in one region).
850, 542
667,663 used. Plan is being formulated
to distribute new merchandise nationally
in areas where market exists for the

particular type of article. The salvage

value of cotton is high enough to make it
feasible to scrap used mattresses if no
other outlet appears.

5.50 (av.) 4 677 981

Page 14

Quantity

Unit Cost

Cost to Govt.

Dragline excavators, used
Earth moving machines weighing

250,000 lbs. each. Obsolete.
Bad condition. Located 25 miles
from rai lway over bad roads. Will

3 pieces

$30,000

$

90 000

cost $3000 each to dismantle and

reassemble. No offers in sight.
Ice Grousers, new

Ice gripping shoes to be attached to
special rubber tired treads of high
speed military tractors. Each grouser
weighs 6 lbs. A tractor needs 296.
There is no known application on

76,726

2.70

207 160

1,000 (av)

84 000

standard machines, no market, except
for scrap.
Snow Plows, V Type

Designed for use with motor graders.

Excellent condition. 59 are new.

84

Applicants to WPB for this equipment

will be referred to our Region 8.

Total

$26 523 771

Surplus Truck Report
For 7 Days and Period Ended July 15, 1944
(Period Began Jan. 1, 1944)

316

Period to Date

7 Days to July 15

Total trucks Declared

21 021

417

Less Declarations Withdrawn
Less Loans to Other Federal Agencies
Less Transfers to Other Federal Agencies
Net Trucks Declared for Sale

836
121

6

o

155

2357

161

256

Less Trucks Sold
Balance of Trucks on Hand

3 314
17 707
9 212
8 488

922

ANALYSIS OF INVENTORY

6 670
18 18
8 488

Inspected and Ready for Sale
Not Inspected
ANALYSIS OF DISPOSAL ACTIVITY

Declarations

Period Ending July 1st.
7 Days to July 8th

20 311
293
XX08XX
417

Disposals
10 300
1 150
XXXXX

1 083

Inventory
End of Period
10 011
9 154
8 488

Inventory
Change

-857
-666

SURPLUS MOTORCYCLE REPORT

For 7 Days and Period Ended July 15, 1944
(Period Began Jan 1, 1944)
Period to Date

7 Days to July 15,

4 833

289

Total Motorcycles Declared
Less Declarations Withdrawn
Less Loans to Other Federal Agencies
Less Transfers to Other Federal Agencies
Net Motorcycles Declared for Sale

o

1

o

o

-o

209

o

210

289

4 623

1

3 893

Less Motorcycles Sold
Balance of Motorcycles on Hand

730

ANALYSIS OF INVENTORY
96

Inspected and Ready for Sale
Not Inspected

634
730

ANALYSIS OF DISPOSAL ACTIVITY

Declarations

Period ending July 1st.
7 Days to July 8th
7 Days to July 15th

Disposals

4518

4102

26

o

289

1

Inventory
End of Period
416
442
730

Inventory
Change

t 26

t 288

SURPLUS USED CAR REPORT

For 7 days and Period ended July 15, 1944
( Period Began Jan 1, 1944)
Period to Date

7 Days to July 15
Total Used Car Declared
Less Declarations Withdrawn
3
Less Loans to Other Federal Agencies
Less Transfers to Other Federal Agencies 6
Net Used Car Declared for Sale
3

290

3 195
59
19

0

Less Used Cars Sold
Balance of Used Cars on Hand

539

9

617

281

2 578

257

1 922
656

ANALYSIS OF INVENTORY

Inspected and Ready for Sale
Not Inspected

426

230
€56

8

ANALYSIS OF DISPOSAL ACTIVITY

Declarations

Period Ending July 1st.
7 Days to July 8th
7 Days to July 15th

Disposals

Inventory
End of Period

2 864

2 013

851

41

260
266

632
656

290

Inventory
Change

-219

t 24

319
sam n/2 reak

July 21, 1944

MEMORANDUM FOR THE SECRETARY:

Lt. General MacFarlane (British) has resigned
as Chief Commissioner for the Allied Control

Commission in Italy. The public reason was illness.

The fact is that General MacFarlane was kicked

out by Churchill. The immediate cause of this action was that General MacFarlane told the Italian

Government that on August 15 they could go into

Rome and that the territory under their control
would be expanded to include the Rome region. This
action was not cleared with Churchill, and evidently
Churchill disagreed.
General MacFarlane was in conflict with
Churchill before. In each case General MacFarlane
took a more sympathetic attitude towards the
Italian Government than Churchill wished.

Hrs.

AWB

320

PARAPHRASE OF TELEGRAM RECEIVED

FROM:

American Mission, Algiers,

TO :

Secretary of State, Washington.

DATED:

July 21, 1944.

NUMBER 2478
CONFIDENTIAL

Murphy sends the following message.
Request has been made by Dr. Schwartz of

the American Joint Distribution Committee (and I
have recommended to AFHQ that his request be

approved) for authorisation by AFHQ of an addi-

tional representative of his organization to
assist, in central Italy, Jewish refugees and
communities,
CHAPIN

DCR;LCW

7/24/44

321
SECRET BY COURIER

A-b229

5:40 pm

July 21 , 1944
AMEMBASSY,
HABANA

The-Following is from the War Refugee Board.
The Department and the Board are highly gratified by the

results reported in your A-1294 of June 16. Please convey
the appreciation of this government to the Cuban authorities.
The substance of your communication is being transmitted to the
American Limbassy, Madrid , with a request to support the
Cuban desires.

The only question in connection with your message arises
from the fact that Cuba's protecting power vis-avis Germany
is Switzerland whereas instructions are being sent to Cuban
Embassy in Madrid. Please clarify this and advise. would
also appreciate learning the dates when the promised ine
structions were actually sent.

Hull
ghw

WRB:MMV : CMH

7/19/44

322

CABLE TO AMBASSADOR WINANT AT LONDON

REFERENCE your 5598 of July 15, 1944.

You may in your discretion advise Mr. Kosiebrodski and Dr.
Lachs that the making of appropriate representations to the Germans
by American republics whose passports are held by persons removed
from Vittel has already been suggested to such governments.

9:10 a.m.
July 21, 1944

LSLesser:tmh 7-20-44

323

PARAPHRASE OF TELEGRAM SENT
TO:

American Embassy, London

FROM:

Secretary of State, Washington

DATE:

July 21, 1944

NUMBER: 5709
SECRET

War Refugee Board sends this message to Ambassador Winant, London.

Please deliver the following message to Barou and Easterman, 55
New Cavendish Street, London, W.I. from Dr. Kubowitzki, World Jewish
Congress:

Joint Relief Committee in London has recently approached International Committee of Red Cross with a proposal for shipment through blockade of food parcels for distribution under Red Cross supervision to
refugees in internment camps. FEA has felt heretofore that Intercross
has not had adequate staff to insure proper distribution in Axis-Europe.

It is requested that you follow developments of this project and assist
where possible to insure success of this matter.
HULL

324

ORIGINAL TEXT OF TELEGRAM SENT
FROM:

Secretary of State, Washington

TO:

American Embassy, London

DATED:

July 21, 1944

NUMBER: 5723
CONFIDENTIAL

Please refer to your 5637 of July 17 concerning the recommendation transmitted by the Inter-governmental Committee repre-

sentative in Algiers that the refugee camp at Fedhala be closed.
The War Refugee Board is in full agreement with Sir Herbert
Emerson that a decision to close Camp Lyautey now would be highly

premeture. In our opinion the international situation has not
(repeat not) become stabilized to such a degree as to justify
the taking of an irrevocable step such as that suggested. More

over, such a suggestion is difficult to understand, in view of
the necessity of caring for increasing numbers of refugees
escaping from enemy territory, and the recent decision to expand

at once existing refugee facilities in the Middle East and to
open new camps in French North Africa, Tripolitania and Oswego.
New York.
HULL

325

ORIGINAL TEXT OF TELEGRAM SENT
FROM:

Secretary of State, Washington

TO:

American Embassy, London

DATED:

July 21, 1944

NUMBER: 5724
CONFIDENTIAL

Please deliver the following message to Mr. Ernest Frischer, 100
Oakwood Court, London W.14, from Dr. Kubowitzki of the World Jewish
Congress:

"At the present time the Joint Distribution Committee is
sending 16,000 parcels a month to internees in Theresienstadt along,
and authorization has been given to its office in Lisbon to send
parcels to the internees in Birkenau. In addition, the Czechoelovak
representative in Lisbon, with whom the JD6 clears its addresses,
has sent such parcels to individuals who, the JDC believes, are
mainly non-Jewish. Whether their 6342 addresses in Theresienstadt
are different from the 8,000 addresses that the JDC has, the JDC

does not know. It is not clear from the letter whether the

Czechoslovak Relief Action would continue to supply 3,000 pounds

a month for their activity, and if, in addition thereto, 9,000

pounds for a one-time transfer has been given. Obviously, the
JDC cannot operate on a license issued by the British Treasury.

TheJDC's licenses are secured from the United States Treasury.
and Dr. Schwartz is authorized to send parcels to every person
known to be in Theresienstadt whose address is made available to him
from any source whatever. The JDC is sending on to its Lisbon

office the gist of your communication in order to secure a report

on it. The JDC notes that Dr. Schwartz has been approached on

this matter, but due to the fact that he is in the Near East he

has not communicated with the JDC concerning it.' #
HULL

MAE-546

PLAIN

London

Dated July 21, 1944

Rec'd: 8:21 p.m.
Secretary of State,
Washington.

5787, Twenty-first
New STATESMAN AND NATION of July 22 carries an

article entitled "Hungary and the Jew" strongly critical
of what the writer considers the inept manner in which
the BBC has attempted to bring home to the Hungarian

Government British feelings regarding the persecution
of Jews in Hungary.

The article does not accept the thesis that the
present wave of Jewish persecution in Hungary is a
departure from earlier Hungarian policy and takes issue
with Eden's recent statement that "the previous record
of the Hungarian Government makes this so much more

terrible a story". It asserts that Horthy bears a

heavy and long standing responsibility for outbursts
of anti-Jewish terrorism, "like the massacres of Siofok
and Orgovany, which he actively encouraged during the
counter-revolution".

The writer concedes that under the Kallay Government the position of the Jews in Hungary up to March

19 of this year compared favorably with that in most

German dominated countries, but claims that humanitarianism was far from being the motive of this comparative

leniency. He states that on May 29 last year Kallay

himself in a speech which was repeatedly acclaimed as

a definite statement of Government policy said that
final solution of the Jewish problem could only be deportation of the Jews. This solution remained untimely
only so long as the Hungarian Government was playing

its double game of assisting the Germans and "reinsuring

itself" with the Allies.

The article severely criticizes the "vague and
unctuous" protests of the Catholic and Protestant
Churches in Hungary against ill treatment of the Jews,

contrasting them with the unequivocal condemnation by
Catholic ArchBishop Czapik of "British-American terror
bombing" and the violent anti-Russian exhortations

of Calvinist Bishop Ravasz. It also lays responsibility
on the BBC itself, stating that it "by its feeble, often

appeasing, attitude towards the Horthy regime, is
particularly to blame for the present complete lack

of active

326

327

-2- #5787, Twenty-first, from London

of active resistance by the Hungarian people either
to the Germans or to their own rulers, for it has
never made it clear how far such assistance would

have Britain's moral support." Pointing out that it
may still be possible to save some survivors of "this
monstrous slaughter" of Jews in Hungary, it hopes that
in future broadcasts to the Hungarian Government the

BBC "will put the matter in its right historical
perspective".

WINANT
HTM

328
ORIGINAL TEXT OF TELEGRAM SENT
FROM:

Secretary of State, Washington

TO:

American Embassy, London

DATED:

July 21, 1944

NUMBER: 5725
SECRET

Reference your 5598 of July 15, 1944.

You may in your discretion advise Mr. Koziebrodzki and Dr.

Lachs that the making of appropriate representations to the
Germans by American republics whose passports are held by persons

removed from Vittel has already been suggested to such governments.

HULL

329

ORIGINAL TEXT OF TELEGRAM SENT
FROM:

Secretary of State, Washington

TO:

American Consul, Naples
July 21, 1944

DATED:

NUMBER: 401
SECRET

The following message has been received from Emerson, IGC:
QUOTE A message has been received recently from our

representative in Italy which states, in effect, that there

have been discovered records which are now available in
Italy and which give complete lists of names of more than
15,000 individual refugees--Xugoslave who are not Jews,
Jews, and other people--who have been, at one time or another

since the start of the war, in Italy. To trace many of

them now is impossible. Other data is available which gives
the names of refugees at free detention places and those
held at certain camps at certain times. Our representative
suggests that notification be given the Axis authorities

that this information is in the possession of the Allies

and that due punishment will be inflicted upon those
responsible for the 111 treatment or death of these people.
I am referring this matter to you, since agreement has
been reached with Washington that the field of action of
the Inter-governmental Committee does not cover psychological

action of this kind. Since it would possibly be of special

interest to the War Crimes Commission, the information
has also been sent to the British Foreign Office. UNQUOTE

Please consult Heathcote-Smith, IGC Representative. If
possible examine records to determine their usefulness either for

psychological purposes as indicated, or for purposes of initiating
action that might result in the rescue or relief of persons whose
names and whereabouts may be available.

THIS IS WRB CABLE TO NAPLES NO. 36.

HULL

330

SECRET

No. 2302

Asuncion, Paraguay

July 21, 1944

Subject: Paraguayan Government requests German

Government to permit access of Inter-

national Red Cross Commissioners to
Concentration Camps.
The Honorable

The Secretary of State,

Sir:

Washington.

I have the honor to refer to the Department's secret
airgram of June 26, 1944, 1:00 p.m., stating that there

are concentration campa situated in Germany and German-oon=

trolled territory to which the Protecting Powers and the

International Red Cross have been granted no access or else
such extremely limited forms of access that they have been

unable to assist the nationals of the United States and

other American republics who are held there, mentioning
certain specific GRAPE, and requesting that the situation
be reported to the Paraguayan Government with the suggestion

that it ask its Protecting Power to investigate this situ-

ation and that in other camps and establishments under control of German-dominated authorities.

This matter was presented to the Ministry of Foreign
Relations in this Embassy's Note No. 303, July 6, 1944,
and there is transmitted herewith a copy of that Ministry's
reply. Note No. 637, July 17, 1944. The reply states that

the Paraguayan Government has requested the Spanish Govern-

ment to take appropriate stops in its name with a view to
permitting the Commissioners of the International Red Cross
to visit such concentration campa and to report regarding
the possible claims to Paraguayan citizenship which may be
made by persons held there.
Respectfully yours,
Enclosure:

Copy of Note 637, July 17,
1944, from Paraguayan Ministry
of Foreign Relations

Lealie B. Reed

Charge d'Affaires a.i.

848

LER:pa

NOTE: Enclosure in Spanishysufficient information in covering
letter to make translation unnacessary. DR

331
AIR WAIL

No. 760
EMBASSY OF THE

UNIVED STATES OF AMERICA

Lisbon, July 21, 1944

UNRESTRICTED

Subject: The Release of Refugees from Prison in
Portugal
The Henorable

The Secretary of State
Washington

Sirs

I have the honor to transmit herewith a copy of a note verbale
recently sent to the Pertuguese Ministry of Foreign Affairs, requesting
consideration by the Portaguese Government of the watter of release of
refugees from prison.

A note on the same subject, couched in different language but covering
the same points, is being submitted at the same time by the British Estassy,

It is the intention of both Embassies to pursue the matter if a reply
is not received to the notes within a reasonable time.
It is believed that this despatch and the enclose note would be of
interest to the Mar Refugee Board, and If the Department perecives no

objection, it is requested that copies be transmitted to the Board.
Respectfully yours,
For the Rebecenders

Beward s. Credit

Commiter of
Inclusives

Cow of note verbale to Partiguese Ministry
of Foreign Affairs.
RCD :ew

332
Enclosure to despatch No. 760, dated July 21, 1944 from
the Embassy at Lisbon.
EMBASSY OF THE

UNITED STATES OF AMERICA

No.464

The Enbassy of the United States presents its compliments

to the Ministry of Foreign Affairs and has the honor to bring
to the attention of the Ministry a matter concerning the
treatment of refugees in Portugal regarding which the United
States Government ventures to bespeak the cooperation of the
Government of Portugal.

As the Ministry has already been informed, the President

and the Government of the United States have solemnly pledged

themselves to do everything possible to alleviate the condition of political and racial refugees from Germany and the
occupied countries. Recent statements both by the President
and Congress make this abundantly clear.

In this Immunitarian effort the United States Government
has had most effective cooperation from the Government of
Portugal.

Unfortunately many refugees are necessarily without papers
and attempt to enter Portugal without visas. Such refugees are
frequently placed under arrest and must spend some time in

prison. The majority of these individuals are released after
a period of detention to fixed residences, for example, to

Ericeira and Caldas da Rainha.

Others, however's are apparently retained in confinement for

long periods and it is on behalf of such of these as are

genuine refugees that this Embansy bespeaks the further cooperation

of the Ministry and the Portuguese Government. It is the
policy of the United States Government to offer every possible
assistance to mar viotins and in this connection this Enhassy is
willing to take up the question of support with the various
agencies of all gemine r refugees coming to Portugal of whatever

nationality OF religion as long as they are bone fide viotine of
oppression. Since the numbers of such r cleased refugees would
be small and the resources of the agencies are adequate, there
is every reason to assume that all would be eared for in-reason=

able comfort. In addition this Enbassy agrees to do all possible

to remove such refugees to places of permanent residence, although

this is recognized to be a difficult problem at the present time.
In view of the foregoing considerations the Enbassy of the
United States requests the good offices of the Ministry to the

333

find

residence

-

be give
of release of
in to the auther
to
Partigal

be

places of

of - intended release,
to
make
the I
It Beloway arrange is advised approved prevision by the police. it.ill, with the If - assis- this -

the prinate agencies for the support of those released
forofthat
ultimate exigration

- July 23, 2944

334

CABLE TO AMBASSADOR NORWEB AT LISBON FOR DEXTER

(1) The Joint Distribution Committee is extremely ammious
that Pilpel get in touch with members of the group of Hungarians who

arrived recently in Lisbon in order to ascertain if possible whether
they have any views as to how evacuations my be increased. Please
so advise Pilpel, making it clear that such contact as he may make

with such persons is purely unofficial and is not to be regarded as
being pursuant to governmental instructions or directions.
(2)

The War Refugee Board is extremely anxious to secure

such information as the persons referred to above may be able to

supply and to this end Dexter is requested, if possible, to interview

Ferenc Chorin and Baron Mirtiz Kornfeld. As a possible means of securing their confidence, Dexter should advise Chorin and Kornfeld that
Ernest Wiltman implores them to give Dexter any information that they
may have which might be helpful in securing the release or otherwise
bringing relief to persecuted persons from Hungary, including the
names of persons who might be appreached with some hope of success

and indicating the nature that such approached might take.

2:30 p.m.

July 21, 1944
LSLesser:tmh 7-21-44

61

.

THIS IS WRB CABLE TO LISBON NO.

335

Distribution of true

July 21, 1944

reading only by special
9 p.m.

arrangement (SECRET w)

AMEMBASSY,

LISBON.
2056

The WRB cable 51 below is for Dexter.

Please deliver the following message to Robert Pilpel,
c/o American Embassy, from Moses A. Leavitt of the American

Jewish Joint Distribution Committee!
QUOTE Assume you in touch with Hungarian women

recently arrived Lisbon Stop Can you send us report
through Legation how they were evacuated also what possi-

bilities increasing flow Stop Have they any suggestions
for rescue or relief Hungarian Jewe? UNQUOTE
Following for Dexter from War Refugee Board:

In view of Stockholm's No. 12 to you dated June 30
and WHB No. 50 of July 5, you should advise Pilpel of
action you may have taken and ask Pilpel to keep you
informed.
HULL
(GLW

WEB:MMV:KG

7/10/44

WE

BE

A-B S/GA

336
July 21, 1944
BE

Distribution of true

10 Polic

reading only by special
distribution. (SECRET w)
AMEMBASSY,

LISBON.
2057

The following WRB cable 52 is for Dexter.
Reference Stockholm's 12 of June 30 to you and WRB's

50, Department's 1925 of July 5, please deliver the
following message from the War Refugee Board to Fereno

Chorin and Baren Morits Kornfold, Avenida Palace Hotel.
Lisbons QUOTE In the name of all our mutual friends I
urge you earnestly to cooperate with Doctor Dexter of
the War Refugee Board disclosing to him all information
concerning your departure and any other information that

may be of assistance in saving the lives of others.

Please advise Doctor Dexter who in Budapest can be
approached with some hope of success and the basis upon
which such approach should be made. Best greetings to
all of you. Signed Ernest Wittmann. UNQUOTE.

HULL
(GHW)

WRB:MMV:KG

WE

SE

s/cr

7/10/44

o

337

RA-550

Distribution of true
reading only by special
arrangement. (SECRET w)

Little
Dated July 21, 1944

Rec'd 6:35 R.M.

Secretary of State
Washington

2262, July 21, 7 p.m. to
Reference your 2033, July 20. This WRB 109.

Channels open are dissident Hungarian officials
here. Despatches mentioning them are 690, 704 and
736.

NORWEB

RR: WSB

338
July 21, 1944

of

BAS

Distribution by true

reading only by special

8 P.M.

arrangement. (SECRET w)

MADRID

2051

The following is from War Refugee Board.

Department and Board gratified by your 2389 of July 9.

In view of critical situation in all enemy controlled areas

please do your utmost to secure increasing and speedy Spanish
efforts on behalf of victims of enemy persecution by all means
at Spain's command.

In addition to information contained in Department's
1979 of July 14 regarding Belivia and Paraguay, Department is
now informed by Amembassy Habana that Cuban embassy Madrid

has been instructed to request the protecting power to inform
the German government that the Cuban government will not

(repeat not) permit the validity of its passports to be quest-

ioned by Germans. The Cuban embassy Madrid has also been

instructed to have the protecting power request German govern
ment to accord holders of documents issued in Cuba's name the
same treatment that Germany hopes will be received by here
nationals in Western hemisphere. Guban government also agreeable to all holders of documents issued in Cuba's name being
considered exchange material for German nationals held in
Western hemisphere.

In view of foregoing, please approach Ouban embassy, and,

if necessary, Spanish officials, with a view to ensuring

speedy action for the protection of holders of Ouban documents
anywhere in German-controlled territory.

For your information, while Spain is Germany's protecting
power in Cuba, Guba's protecting power is Switzerland and not

(repeat not) Spain, and instruction to Cuban embassy Madrid may
have been intended merely for transmission to Bern. Please
as certain and advise.
HULL
(GHW)

HULL

S/OR
WEB:MMVs OME

7/19/44

WE

CCA

339

o

DSH-490

Stookholm

true reading only by

Dated

July 21, 1944

(SECRET w)

Reo'd

5 p.m.

Distribution of
special arrangement.

Secretary of State,
Washington.

2716, July 21, 5 p.m.
THIS IS OUR NO. 58 FOR WRB.

Have heard nothing further concerning remittance
of $10,000 mentioned in WRB 58 (Department's 1313

of July 1, 9 p.m.). Also nothing further concerning
$50,000 mentioned in WRB 41 (Department's 1353 of

July 7, 7 p.m.). Chief Rabbi Ehrenpreis has heard
nothing concerning $10,000 mentioned in WRB 44

(Department's 1351, July 7, 5 p.m.). Please advise
if there has been any change of status as to the

availability of these funds.
Wallenburg has now been in Budapest for approximately a week.
JOHNSON
RB

WTD

340

PARAPHRASE OF TELEGRAM SENT
TO:

American Legation, Bern

FROM:

Secretary of State, Washington

DATE:

July 21, 1944

NUMBER: 2480
CONFIDENTIAL

WRB sends following for McClelland.
WRB No. 79.

Please deliver the message given below to Dr. Gerhart
Riegner, 37 Quai Wilson, Geneva, from Dr. Kubowitski of the

World Jewish Congress:

Joint Relief Committee in London has recently made a proposal
to International Committee of Red Cross for shipment of food parcels to
refugees in internment camps through blockade for distribution under Red
Cross supervision. Foreign Economic Administration questioned whether
Intercross has had adequate staff to insure proper distribution in enemy
countries. Developments in this project should be followed by you and to
insure its success please assist wherever possible.
HULL

341

ORIGINAL TEXT OF TELEGRAM SENT

Secretary of State, Washington

FROM:
TO:

Ameri can Legation, Bern

DATED:

July 21, 1944

NUMBER:

2484
SECRET

FOR MCCLELLAND

There follows for your information and guidance the substance

of an airgram received from the Amembassy San Slavador:

QUOTE The note of April 17, 1944, From Dr. Arturo Ramon

Avila, at that time Foreign Minister, to the Spanish Minister
(in charge of German interests) reads in translation as follows:
INNERQUOTE The Minister for Foreign Affairs of E1
Salvador begs His Exellency the Envoy Extraordinary and

Minister Plenipotentiary of Spain and Representative of the
Interests of Germany in this Republic, if he perceives no

objections, that he interest himself, with a view to safe-

guarding the lives of all those persons who bear Salvadoran
passports or who claim (pretendan) to hold Salvadoran citisenship, in order that the German Government, for humanitarian

reasons, extend to the said persons all the privileges, rights
and immunities granted to interned civilians in conformity

with the Convention of Geneva on Prisoners of War. Arturo
Ramon Avila thanks in advance His Excellency the Duke of

B ailen for his courtesy in taking this action, which, if it

appears opportune to him, he would appreciate done by cable,
and renews to him the assurances of his distinguished consideration. San Salvador, April 17, 1944. END OF INNERQUOTE

The note of May 20, 1944, from Dr. Julio Enrique Avila,
the present Foreign Minister, to the Sapnish Minister, reads in
translation as follows:
INNERQUOTE The Minister for Foreign Affairs of E1
Salvador begs His Excellency the Envoy Extraordinary and

Minister Plenipotentiary of Spain and Representative of the
Interests of Germany in this Republic, to consider as
modified the request referred to in the note verbale
addressed to him by (the Foreign Minister's) predicessor,

Dr. Arturo Ramon Avila, that he interest himself, if there
are no objections, with a view to safeguarding the lives of
all those persons who bear Salvadoran passports or who

prove (justifiquen) that they possess Salvadoran citizen
ship, in order that the German Government, for humenitarian

reasons, extend to the said persons all the privileges,
rights and immunities granted to interned civilians in conformity

342

2-

with the Convention of Geneva on Prisoners of War. Julio
Enrique Avila thanks in advance his Excellency the Duke of

Bailen for his courtesy in taking this action, which, if it
appears opportune to him, he would appreciate done by cable,
and renews to him the assurances of his distinguished consideration. San Salvador, May 20, 1944, END OF INNERQUOTE.

The modification consists in the change of the words
QUOTE persons who bear Salvadoran passports or who claim (pretendan)
to hold Salvadoran citizenship UNQUOTE to QUOTE Persons who bear

Salvedoran passports or who prove (Justifiquen) that they possess

Salvadoran citizenship. UNQUOTE

The Embassy unsuccessfully tried to have the present Foreign

Minister send a note verbale identical with that of his predecessor,
but Dr. Avila insisted on making the modification. He informs me
that he is contemplating no new steps.
The Spanish Minister confidentially informed me that he
had not bothered to transmit the second request as he considered

it so similar to the first. The Swiss Government is therefore
undoubtedly still working under the more liberal terms of the first
request. It is consequently strongly suggested that no further

action be taken unless the situation changes. END OF QUOTE.
THIS IS WEB BERN CABLE NO. 87.
HULL

343

ORIGINAL TEXT OF TELEGRAM SENT
FROM:

Secretary of State, Washington

TO:

American Legation, Bern

DATED:

July 21, 1944

NUMBER: 2485
SECRET

FOR McCLELLAND

The matter referred to in your 4025 of June 23rd has been

discussed with the Foreign Minister of Haiti. The following is
the substance of the Minister's reply as transmitted by
Amembassy Port-au-Prince:

QUOTE The Haitian Government will issue instructions
to the Legation at Bern to inform the German Government

through the Swiss authoritities that Haiti considers all of

its passports held by persons in enemy or enemy-occupied

territory valid until an examination of each case shall have
been made. This applies to those persons who were unable
to comply with the Decree-Law of February 4, 1942, as well
as to those persons holding documents whose validity is
open to doubt.

QUOTE The Minister stated that this decision, which

he will confirm to me in writing, will require the approval
of the Council of Ministers, a meeting of which will be

held soon, but that he does not anticipate any objections
from that body.

QUOTE He added that it is purely a humanitarian
measure and that the Haitian Government considers that

many of the persons who will benefit by it are undesirable.
I gathered that, after the conclusion of hostilities, unvavor-

able decisions will be reached in many cases. UNQUOTE
THIS IS WRB CABLE TO BERN NO. 88.
HULL

344

ORIGINAL TEXT OF TELEGRAM SENT
FROM:
TO:

DATED:
NUMBER:

Secretary of State, Washington
American Legation, Bern
July 21, 1944
2486
SECRET

The suggestion has been made to the Board from several

sources that the issuance to Hungarian Jews, particularly children
and families with children, of Palestine certificates, American

and neutral visas in quantity might result in the saving of
lives. The Board is considering the practicability of such a

program in terms of the remaining balance of available Palestine

certificates, 5,000 United States visitors visas, additional

United States immigration visas to persons entitled to nonquota or preference status and to persons to whom United States
immigration visas now expired were issued after July 1, 1941,

and a comparable number of visas of the other American Republics,
British dominions and neutrals. The suggested program has not
(repeat not) as yet been cleared with the State Department.
The Board would appreciate receiving as soon as possible your
views and recommendations as to the practicability of the suggested program based upon such information as is available to
you. The Board would also appreciate the informal views of
informed persons in the Swiss Foreign Office if you consider it
appropriate to discuss this matter with them.
In the meantime, and as an experiment to ascertain whether

the availability of American visas will facilitate the egrees
from enemy-occupied areas of members of persecuted groups,

American consular officers in Turkey have been authorized to
issue visas to the following children now in Romania upon their

arrival in Turkey and application therefor: Alexander Schleifer,
age 15; Otto Schleifer, age 13; Judith Schleifer, age 11; and
Noemi Schleifer, age 7. The children are under the guardianship of Avrum Schleifer, age 29, their father's brother, and

Margarete Neulander, age 28, their mother's sister. Last known
address of group is No. 11 Strada Tribunal Dobrea, Arad, Romania.
Advisory review procedure has been waived in cases of these

children and since their parents, David and Ida Schleifer, are
in the United States, the public charge provisions of Section 3
of the Act of February 5, 1927 do not apply to them. Palestine
Government has issued immigration certificates to the four children
and two adults numbers M/438/43 () 1/204, M/438/43 () 1/150.

Please request the appropriate department of the Swiss
Government to approach on behalf of the United States competent

345

-Romanian and Bulgarian authorities and to request, in the case
of Romania, that exis permits be issued to the four children

and two adults, and in the case of Bulgaria that transit visas be
issued to them. In support of such request, the Swiss should
advise both the Romanians and the Bulgarians that the issuance
of American visas to the four children ha S been authorised upon

their arrival in Turkey and that the Palestine Government has
issued immigration certificates to the two adults who act as
their guardians.

It is not clear whether the group has Turkish transit visas,
but Amembassy Ankara has been requested to investigate and to

request the issuance of such visas to the group if currently
valid visas for them are not now outstanding. You will be kept

advised. Please keep the Department and Board informed of all
developments promptly.
THIS IS WRB BERN CABLE NO. 84
HULL

346
ORIGINAL TEXT OF TELEGRAM SENT
FROM:

Secretary of State, Washington

TO:

American Legation, Bern
July 21, 1944

DATED:
NUMBER:

2490
SECRET

FOR McCLELLAND AND HARRISON.

1. Please express to the Swiss Foreign Office the Department's and the Board's sincere appreciation for its cooperation
and efforts as reflected in your 4223 of July 3. Please consult
with appropriate officials of the Swiss Foreign Office in an
urgent endeavor to secure their prompt further assistance by
intervention and otherwise in rescuing the Malkowsky, Frunkin
and Gerlin families from QUOTE general treatment accorded to
eastern Jews UNQUOTE which according to your 4295 of July 6 and

all other available information is but an euphemism for coldblooded slaughter.

2. Please continue making representations in strongest
terms on behalf of these families and all others to whom documents
have been issued in the name of any American republic. It is
considered by this Government that German action in declaring

some documents invalid is arbitrary and inconsistent with
generally accepted rule but the question as to validity of pass-

ports is to be determined by the Government in whose name they
are issued, therefore only the government in whose name documents
are issued can deny validity, not Germany. This Government furthermore considers untenable the distinction sought to be drawn
between issuees of such documents who are not in internment
camps and those issuees who are elsewhere, and this is without
regard to whether such persons have a knowledge of Spanish or

any other language or were settled in Poland or any other country.

Accordingly, this Government takes a most serious view of German
consignment of any persons to whom documents have been issued in
the name of an American republic to the QUOTE general treatment
accorded to eastern Jews UNQUOTE and must insist upon the return
by the Germans to internment camps reserved for nationals of
American republics of all persons to whom such documents have been
issued who have been removed from such camps for consignment to
such QUOTE treatment UNQUOTE or similar treatment.

3. Please endeavor through any unofficial channels that
may be available to you to convey the sense of the following to
appropriate German and satellite officials in foreign offices

and foreign police: Foreign office and other officials who

bear any responsibility for the consignment of persons to whom
documents have been issued in the name of an American republic
to the QUOTE general treatment accorded to eastern Jews UNQUOTE

or similar treatment must expect personally to bear the consequences.
If American

347

-2- -

If American republics, horrified by the bestiality and brutality

of Nazi mass-slaughter accord to some persons the protection of

their passports or other documents, individual officials of the
German and catellite foreign offices and foreign police ought

to be anxious to avail themselves of such or any other opportunity

to save innocent lives. If, instead, they indulge in fine

reasoning and take action which is tantamount to sentencing such
persons to persecution or death, they thereby assume the

responsibility and invite the consequences therefor. Furthermore,

their failure to seize every available opportunity to save lives

will be considered as strong evidence of their concurrence with
the policy of mass-slaughters of Jews and other civilian populations and their participation in such crimes, the consequences
for which formed the subject of President Roosevelt's statement
of March 24.

4. The Department and Board are confident that the Swiss

Foreign Office recognizes that although the safety of citizens of
the United States is the paramount concern of the American

Government, the American people and Government are gravely concerned

with the safety of the victims of Nasi persecution without regard

to the nationality or stateless status of such victims. This

grave concern has been manifested in many ways including the
creation by the President of the War Refugee Board, and in the
solemn warnings heretofore issued by President Roosevelt, Secretary of State Hull, the Senate Foreign Relations Committee and
the House of Representatives Foreign Affairs Committee. As a
consequence of this concern, and in view of Germany's open

espousal of a policy of exterminating Jews and other civilian
peoples, the Swiss Foreign Office will understand why this Govern-

ment is unable to accept the German view that removal of persons

claiming nationality of an American republic from internment
camps for subjection to the QUOTE general treatment accorded to
eastern Jews UNQUOTE involves merely QUOTE internal German
police measures UNQUOTE. Knowing Switzerland's humanitarian

traditions, the Department and Board are confident that the Swiss
Foreign Office will find a way to intercede further on this score
of
to secure from the Germans adequate assurances for the safety
all persons to whom passports and other documents have been
issued in the name of an American republic whether such persons
are in internment camps or elsewhere or have been in internment
camps and removed therefrom. Please also request the Swiss to

attempt again to secure for the Board a list of all those claiming

nationality of an American republic who have been deported from
Vittel and similar camps. Assume your airmail 8466, June 12,
sontains list of 238 names supplied by you to Swiss as well
as list of 163 names supplied by Swiss consulate, Paris. The

importance of securing such lists, as well as the taking of the

other measures indicated herein is emphasized by the fact, called
to your attention by the Department's 2046 of June 16, that Anna
Frumkin is the wife, Hermine Frumkin, the daughter and Eugenia

Gorlin, the sister of a citizen of the United States.

5. Regarding

348

-3- 5. Regarding Section four your 4223, July 3, notice number
two Part E, this Government's position against German determination on QUOTE merits of individual claims of persons holding

United States or Latin American documentation UNQUOTE relates

not (repeat not) to priority of exchange or method of selection
of individuals to be exchanged, but rather to the recognition

of persons making such claims as being eligible for exchange, and
the extension to them of treatment to which nationals of countries

of which they claim nationality are entitled.
6. Regarding notice number two, Part F, refer Department's
2407 of July 13, WRB's 64 and Department's 2316 of July 6, 1944,
WRB's 71. Further efforts being made to obtain various governments protected by Switzerland or Spain to request suitable
action in Bern or Madrid. But without awaiting such requests,

efforts should be persistently continued to obtain results on
basis of this Government's attitude, and of attitude of such

governments as have already communicated with Switzerland. In

this connection, please discuss with Swiss officials informally
the desirability of construing as liberally as possible, and

of acting as speedily as possible upon any communications from
any American republic touching upon the protection of persons

from cruelty and persecution. Swiss officials certainly understand that the sole object involved is to save people from unprecedented bestiality and that delays in action brought about
by a strict adherence to technicalities proper enough under
ordinary circumstances merely result in these extraordinary times,
in an additional number of innocent people being ruthlessly done
to death.

7. In view of the situation in Hungary, special efforts

should be devoted to obtaining German and Hungarian assurances

with regard to the protection, eligibility for exchange, etc.,
of any persons in Hungary to whom documents in the name of an

American republic have been issued. You are authorised to
request Swiss authorities to make all necessary representations

to this effect. In this connection, note is taken of your

recommendation in last paragraph of notice one of your 4223.
THIS IS WRB CABLE BERN NO. 78.

HULL

RA-482

349

Bern

This telegram must be
paraphrased before being

Dated July 21, 1944

communicated to anyone

other than a Government

Rec'd 5:15 p.m.

agency. (RESTRICTED)

Secretary of State
Washington

4659, July 21, 8 a.m.
FOR WRB FROM MCCLELLAND,
on

FOR KUBOWITZ KI, WORLD JEWISH CONGRESS FROM RICHARD LICHTHEIN:

"Have received your message concernin g holders
of South American passports and Palestine immigration

certificates. We sum up situation by following 3 points:

(1) Aware that exchange these two categories
must be separately by American and British governments.

This is also viewpoint British authorities. An exchange
of 283 holders of Palestine certificates has now
successfully been completed Istanbul. Jewish agency
offices here and London will attempt to make it possible

for further exchanges. In this respect no action from

your end is required.

(2) Position holders of South American passports

will largely depend on actual exchange of at least

part of them against Germans in North or South America.
While recognition of these passports by American

Governments was certainly useful, it will in long
run not protect bearers if no actual exchange is
forthcoming. If American states are willing to

save a certain number of jews they should not only
recognize their passports and declare bearers eligible
for exchange, but should arrange for actual exchanges.

Please investigate possibilities this respect.

(3) List of exchanges should be communicated
through American Legation to Swiss Government holders
without protecting bearers of American passports as
shown by fate of Polish group of holders such pass-

ports in Vittel deported despite fact that Palestine
immigration certificates had also been granted to

them. Germans are only interested in possibility of

exchange. Having already thousands of holders of

Palestine immigration certificates in their hands
and knowing Great Britain's difficulties in finding
adequate number of Germans in British territories
they do not want to see number of certificate holders
increased indiscriminately and certainly not by people

who have been presented to them as being eligible for
exchange against Germans in America. Please make posi-

tion clear to all concerned."

HARRISON
JMS:WFS

**************

350

PARAPHRASE OF TELEGRAM RECEIVED

FROM:

American Legation, Bern

TOP

Secretary of State, Washington

DATED:

July 21, 1944

NUMBER

4665
SECRET

In view of the information with reference to
Uruguay and Chile which was contained in messages from
the Legation of July 14th, Number 4518 and Number 4502

the inquiry which was contained in the last paragraph of
message of July 13, from the Department, Number 2407, was

not forwarded to the Swiss.
HARRISON

DCR2LCW 7/22/44

351
PARAPHRASE OF TELEGRAM RECEIVED

FROM:

American Legation, Bern

TO:

Secretary of State, Washington

DATE:

July 21, 1944

NUMBER:

4666

CONFIDENTIAL

McClelland sends the following for WRB, from Riegner for
attention World Jewish Congress.

Information has been received by Czechoslovak official

at Geneva to effect that there is a disposition on part of
Slovak resistance movement to assist in rescue of Jews
from Hungarian dominated territories by bringing them to

Slovakia to be enrolled in Slovak Maquis or to be hidden.
We are cooperating with action being undertaken (?)

dnazidov Bratislava. $30,000 is required by program for
expenses which will be covered by various sources;

participation of Congress ten thousand dollars to be
transferred urgently to Geneva in Swiss francs is being
asked. This is most serious proposal and we are awaiting
your urgent reply.
Note by Legation: This proposition has been discussed

with Minister Kopecky and consider that support is merited.

Initial contribution equivalent ten thousand dollars from fund
of WRB in Swiss francs is being made. Francs will be deposited
to account of Czech resistance movement in Switzerland.
HARRISON
DCR:BBH

& 7/24/44

PARAPHRASE OF TELEGRAM RECEIVED

Date:

American Legation, Born
Secretary of State, Washington
July 21, 1944

NUMBER:

4670

FROM:

TO:

SECRET

MoClelland sends following for WRB from Kuehl, Donnebaum, and
Sternbuch for Union of Orthodox Rabbies

Continuous contact is being maintained by us with Laiffel.
We have informed him that if possibilities of rescue work
increase he will receive another hundred thousand Swiss franos,
and have requested that he undertake transportation of refugees

to Turkey from Bucharest. Places on ships are greatly lacking,
and in view of development of situation soon anticipated it
would be most important to counteract this lack. One thousand
Swiss franos is still cost of a passage nowwa-days.
We are forwarding a report shortly regarding rescue work
for Italy and France.
One hundred thousand Swiss francs for general support

have been sent by us to Freudiger. In addition we are in

contact by telephone with the Wischnits Rabbi Chaismeirhager
at Bucharest. A committee of several personalities has been
formed by this Rabbi. Some time ago we also transmitted one
hundred thousand franos for the management of this rescue

work from Hungary to Rumania,

Twenty=three persons were brought to Bucharest lately.
Among other Rabbis who have arrived at Bucharest there was the
Bobower Rabbi Schloime and his son. Search is being made for

the other members of this family. At the present time couriers

are on route to Budapest from Buoharest in order to bring some

more personalities back. It is felt that this is the best way

to save various personalities at least. Three to five thousand
france is cost for one person. To avoid break in their rescue

work an additional five hundred thousand france is urgently
requested by the Committee.

One hundred fifty thousand france have been sent by us

to Rabbi of Neutra. Latter is directing rescue work from
Poland and Hungary to Slovakia and as regards support and

resoue he has heavy obligations to fulfill. Just received
wire from him in which he states that if we do not provide him
with larger sums immediately he will hold CEO responsible for
consequences since if he is not able to render sufficient help

people run risk of deportation to Poland. He is referring to

approximately eighteen hundred persons of whom greater part

are in camps at present time.

Various plans

352

353
#4670, From Bern, July 21, 1944
Various plans are being worked out as regards Hungary,

which have support of joint representative in Budapest also.
In addition negotiations to save larger group are proceeding
and may be concluded any day. We shall (*) money immediately
as soon as guarantee is received that an agreement will be

strictly fulfilled. We promised sum of one million france to

Freudiger's group for this purpose to begin with.

Our relations with MoClelland are of the best. He willingly

grants every possible help to us and all Jewish organizations.
Whether or not letters of Foreign Consulates are of any
use we do not know, but perhaps they would be if respective

states would grant protection. Such letters are at any rate
only of use if they are passed on to me by Consulates of

South American states in Switzerland at once. Reported
resouing people are getting smaller and situation is becoming

progressively more oritical in this respect.

HARRISON

()

apparent omission

LOR:EBH

7/26/44

354

LL-596

Ankara

true reading only by

July 21, 1944

[SECRET W)

Rec'd: 9:57 p.m.

Distribution of
special arrangement.

Secretary of State,
Washington.

136, July 21, 4 p.m.
FOR PEHLE, WRB, FROM HIRSHMANN, ANKARA NO. 103

A report received by us from the Vaadhatzala
Committee in Istanbul, dated July 17, states (REURTEL

59, July 1) that no part of the $25,000 transferred to

them by Vaadhatzala, New York, was expended up to June

1. The only disbursement made since that date was the
payment of 12064.57 Turkish pounds to the firm of
W. F. Henry Vanderzee, Istanbul for the transportation

of refugees from Constanza to Istanbul. A written

report concerning this disbursement is being forwarded
to you by mail.
KELLEY

JT
BB

355
BE

Distribution of true
reading only by special

July 21, 1944

7 p.m.

arrangement (SECRET w)

AMEMBASSY,
ANKARA.
650

The cable below is no 81 from War Refugee Board. Department

joins in the instruction.

Reference your 1249 of July 10, your 93 to WRB and Depart-

ment's 553 of June 20, WRB's 56. As an experimental matter and

in an effort to ascertain whether the availability of American
visas will be of assistance in securing the release of members
of persecuted groups from enemy controlled areas, consular

officers in Turkey are authorized to issue visas to the following
children now in Rumania upon their arrival in Turkey and applica-

tion therefor, subject to their meeting the statutory immigration
requirements of Section 3 of the Act of February 5, 1917, except
that they may be considered to meet the public charge requirements

since their parents are in the United States: Alexandre Schleifer,
age 15; Otto Schleifer, age 13; Judith Schleifer, age 11; and
Noemi Schleifer, age 7. The children are under the guardianship
of Avrum Schleifer, age 29, their father's brother, and Margarete

Neulander, age 28, their mother's sister. For your information,
the Palestine Government has issued immigration certificates to
the four children and two adults numbers M/438/43 () 1/204,

M/438/43 () 1/150. Last known address of group is No. 11 Strada
Tribunal Dobrea, Arad, Rumania.

On the basis of the foregoing, please request appropriate
Turkish

356

#650, July 21, 7 p.m. to Ankara
-2-

Turkish officials to arrange for the issuance of Turkish transit
visas to this group of six, if such visas have not already been
issued.

For your information, Amlegation Bern is being instructed
to request Swiss authorities to intervene with Rumanian and
Bulgarian Governments in an effort to secure necessary exit and

transit visas for the four children and two adults.
The advisory opinion procedure is hereby waived in the
cases of the four children named.
Please advise Department and Board promptly as to whether

group has Turkish visas and if not whether and when Turks will
issue them.

HULL
(GHW)

WRB:MMV:KG

7/17/44

S/CR

NE

WE

SE

VD

357

KEM-626

This telegram must be
paraphrased before being

Ankara
Dated

July 21, 1944

Rec'd

11:24 p.m.

communicated to anyone

other than a Government
agency. (RESTRICTED)

Secretary of State,
Washington.

1332, July 21, 11 a.m.
FOR PEHLE WAR REFUGEE BOARD FROM HIRSCHMAN.

Ankara N. 101.

For your information it is reported in Istanbul
the Hungarian Government has decided that for the

present there will be no further deportation of the
Jews from Hungary, that all Jews holding certificates

for Palestine will be permitted to have exit permits
from Hungary, and that all children up to the age of ten
will be permitted to leave Hungary provided satisfactory
arrangements can be made for them by rescue organisations.

I am endeavoring to obtain further information and
details regarding the above and will report such
information together with the steps deemed advisable

to be taken from here to effect the resoue of these
refugees.
WMB EH

KELLEY

358

MJB-632

Ankara

This telegram must be
paraphrased before being

Dated July 21, 1944

communicated to anyone
other than a Government
agency. (RESTRICTED).

Rec'd 11:39 p.m.

Secretary of State,
Washington.

1334, July 21, 2 P.M.
Department's 622, July 10, 7 P.M.
The Embassy is informed that David Schweitzer now

represents the HIAS organisation in Istanbul. However,
inasmuch as Schweitser intends to leave Turkey in the
near future, the Embassy perceives no objection to
Jacobson's coming to Turkey as director of refugee

immigration activities for the HIAS.
KELLEY
WMB WFS

359

HM-911

Ankara

reading only by special

Dated July 21, 1944

Distribution of true

arrangement. (SECRET w)

Rec'd. 6:35 p.m. 22d.

Secretary of State,
Washington.

1335. July 21, 3 p.m.
FOR PEHLE WRB FROM HIRSCHMANN. Ankara no. 102

If you deem it advisable I would like to be
informed regarding the proposal received through
Stockholm and Born referred to in paragraph numbered

eight of your 614 July 7.

KELLEY

BB

360

0
FBM-619

Ankara

Distribution of true
reading only by special

Dated

July 21, 1944

Rec'd

11:05 p.m.

arrangement. (SECRET w)

Secretary of State,
Washington.

1355, July 21, 3 p.m.
FOR PEHLE, WRB, FROM HIRSCHMANN, ANKARA NO. 102.

If you deem it advisable, I would like to be
informed regarding the proposals reserved through
Stookholm and Bern, referred to in paragraph numbered

eight of your 614, July 7.
KELLEY

JT BB

361

CABLE TO THE CONSUL GENERAL, ISTANBUL FROM WAR REFUGEE
BOARD

Please deliver following message to Dr. Joseph
Schwartz from M. A. Leavitt, American ewish Joint Districe
bution Committeet

QUOTE Due difficulties in working out lira
clearance we applied for license remit 3,000,000

lira which hopeful will be issued near future
Stop Meanwhile please instruct Central Bank cable
us total amount advanced also number of persons to
whom advances made. UNQUOTE

4:55 p.m.

July 21, 1944

FHodel/eg 7/21/44

362

DEPARTMENT

INCOMING

OF
#

STATE

STARTMENT

TELEGRAM
CORRECTION

DIVISION OF

COMMUNICATIONS
AND RECORDS

DIVISION OF
41

MJB

28 1244

COMMUNICATIONS

PLAIN

July 21, 1944

MARIA HE Beena

In telegram from London number 5704 dated 19th
2

page/line 9 insert "would take place" so as to read
"plenary session would take place on Saturday". Page

2, line 18, insert "are" so as to read "that they are
little interested".
DIVISION OF COMMUNICATIONS AND RECORDS

NOTE: Correction from the Embassy
MEV

o

363
DEPARTMENT

DIVISION OF

INCOMING

OF

COMMUNICATIONS
AND RECORDS

TELEGRAM

STATE

LFG-577

PLAIN

London

Dated July 21, 1944
REC'D 9 p.m.

Secretary of State,
Washington.

DEPARTMENT

OF

STATE

JUL 22194

5800, Twenty-first
FOR SECRETARIES OF STATE AND TREASURY.

The FINANCIAL TINES, FINANCIAL NEWS, MANCHESTER

GUARDIAN and NEWS CHRONICLE of July 21 carry reports

of the Monetary Conference.
The FINANCIAL TIMES captions its article with "money
talks at a CEACLOCK" and gives the Russian demand for a

reduction of its subscription to the World Bank as the
reason for the deaclock.
The article claims that the hitherto unenthusinstic
Latin American countries were "mollified by a concession

calling for the banks allocation of a 'equitable'
percentage of loans for the development of unexploited
natural resources".
The FINANCIAL TIMES mentions that a NEW plan has

been proposed by the special commission which would

attempt to prevent the Germans from shifting stolen
wealth

364

-2- #5800, Twenty-first, from London
wealth and which would also EXCLUDE from membership

in the fund or bank any country that had not previously
SEVERED its relationship with the Bank for International
Settlements. The article states "most CElEgatEs (***)
appear to regard the BIS as an instrument useful to Germany

in perpetuating her financial power."
The article reports that the British rEcommendation
that the interest rates of the World Bank should be
uniform was overruled by Russia and the United States.

A list of the distribution of the votes to members of the
stabilization fund is given.
The FINANCIAL TIMES also prints a denial by the
Egyptian, Indian and British CElEgatEs to the Conference

that any direct invitation have been given by Britian
for a conference on the problem of blocked sterling
balances.

The FINANCIAL NEWS gives a complete list of the

distribution of votes to the members of the fund, outlines
the new proposal relating to the Bank for International
Settlements and gives the French reaction to the proposal
which provides for the deferment of payment of 25 percent
of the initial contribution to the bank.
With reference

365

-3- 5800, Twenty-first, from London
With reference to the BIS proposal, the article
states "asked whether Britain was opposed to this clause,
the official spokesman said: 'you can guess the attitude
of Great Britain and the Netherlands'. It is believed
that both countries still have certain interests in the
bank".

It is pointed out that SOME Celegates have mistakenly
thought all along that countries would have to SEVER

relations with the BIS before they could participate in
the fund and the bank. The article adds "this is clear ly
impossible as in SOME CASES SEVERANCE with the BIS involves

complicated legal dealings'.
The article reports that the committee has agreed
to the proposal which gives European countries five

years in which to pay 25 per cent of the initial
contribution to the bank and mentions that the French
delegates were disappointed because "it represents

C. comparatively infinitesimal sum, and therefore was
of small help to France and others who need most of their

gold for the immediate rEconstruction of their devastated
areas.

The FINANCIAL NEWS headlines the report of Lord

o

Keyne's heart attack, which, according to a United
Kingdom

366

-4- #5800, Twenty-first, from London
Kingdom spokesman, is "not serious".
The MANCHESTER GUARDIAN devotes an article to an

analysis of the sources of the "bitter" propaganda campaign
which is being carried on by "American Conservatives
against the monetary pacts and outlines the chief arguments
presented. The opposition is said to COME from orthodox

bankers and political isolationists who USE three principal
arguments; "(1). cheap money policy on the part of other
countries would drain off United States gold; (2) debtors
would repudiate their obligations and the other
underwriting countries would repudiate their guarantees,

leaving the United States saddled with the responsibility;
(3) no suggestion is made of any authority which would
require debtor countries to 'put their houses in order
and therefore funcamental problems will remain unsolved

and the money will be poured Cown a rathole's.

As to the significance of this propaganda, the
article states "it is hard to say how seriously these
propaganca Efforts should be taken. Most Americans do
not understand these complicated financial questions

and are likely to believe whatEver they are told. The
opponents of the plans are numerous and active, while

o

the

367

-5- #5800, Twenty-first, from London
the defenders are few and are limited almost entirely
to the Liberal press, such as the 'NATION' 'PH', the
Chicago 'DAILY SUN', and the St. Louis 'POST DISPATCH'.

However, it is Congress which must ratify the proposals.
Economic literacy is higher there than in the country
as a whole, and Congress is on the whole inclined to favor
anything to which Wall Street is opposed".
The financial Editor of the MANCHESTER GUARDIAN

states that the Norwegian proposal relating the Bank
for International Settlements SEEMS to be "highly
popular" and adds that Dr. Beyen the Dutch delegate

strongly objected when "s suggestion that the British
and Dutch delegates might take a different view" was MACE.
It is ACCEC that no statement on this point has been
made by the British delegation but he points out that
"s year or two ago it was still thought by SOME financial
authorities here that the bank might be useful as a
ready made instrument of transitory finance at the End
of the war. There was, however, never any strong feeling
about the matter". The MANCHESTER GUARDIAN also carries

an article on the proposal relating to Axis assets hidden
abroad.
The NEWS CHRONICLE

368

-6- #5800, Twenty-first, from London
The NEWS CHRONICLE mentions the proposal concerning

the safeguarding of assets stolen by the Nazis and
reports Lord Keyne's heart attack.
The DAILY MAIL also has an article dealing with
developments at Bretton-Woods which featured "plans for
'unfsathering' the nests of Axis lenders".
WINANT
HTM

DEPARTMENT

369
DIVISION OF

INCOMING

OF

COMMUNICATIONS
AND RECORDS

TELEGRAM

STATE

BJR - 736

PLAIN

Ankara

Dated July 21, 1944
Rec'd 10:14 a.m. 22nd.

Secretary of State,
Washington.

DEPARTMENT OF STATE

1340, Twentyfirst
PRESS

JUL2219.11
DIVISION

OF
&

RECORDS

COMMUNICATIONS

Embassy's 1244, Eighth
Monetary Conference

Zal in VATAN twentieth: period preceding present war was most unhappy one which with its currency
restrictions and compensation systems was undermining

international collaboration in trade and paralyzing
world credit system. It's most gratifying that
concrete solution should have been found to this Evil
while war isstill going on and that full agreement
on principles should have been reached in this matter.
This is one of first good tidings pointing towards
realization of dream of better world, Consequently
decisions reached at Bretton Woods for world monetary

union may well be qualified as historical EVENT justifying general satisfa ion and supporting optimism
regarding future.
KELLEY
RNK

370

NOT TO BE RE-TRANSMITTED
COPY NO.

11

SECRET

OPTEL No. 232

Information received up to 10 a.m., 21st July, 1944.
1. NAVAL

NORMANDY. Two of H.M. Cruisers successfully bombarded

German mortar positions 19th. One of H.M. Canadian frigates was
damaged by aircraft off BREST yesterday and is being towed to port.
Yesterday and last night aircraft sighted 5 U-boats about 250 miles
west of LOFOTEN Islands and attacked 4 of them. Wreckage and a raft
were seen after one attack.
2. MILITARY
NORMANDY. U.S. patrols have reached the PERIERS-ST. LO road

just west of latter while reconnaissance troops are moving forward
from ST. LO. U.K. 50th Division has made slight gains S.E. of HOTTOE,

S.E. of CAEN, BOUGERBUS and FRENOUVILLE have been captured. Otherwise

no appreciable change.

ITALY. Polish and Italian forces are now firmly across the

ESINO, N.W. of ANCONA former have taken MONTE MARCHIANO and MONTE

SAN VÍTO and latter JEST. U.K. and South African formations have

made progress north of AREZZO and have captured MONTE SAN MICHELE,

4 miles S.E. of GREVA.

RUSSIA. Russians have cut the railway running west from

DVINSK have continued their general advance between GRODNO and
LWOW, and have broken through in another sector from The Kovel area

on a front of 90 miles to a depth of 30 miles reaching River BUG.

They have captured RAVA RUSKA, 3A miles N.W. LWOW, and are hemming
in a German group surrounded west of BRODY.
3. AIR OPERATIONS

WESTERN FRONT. 20th. 1,280 Fortresses and Liberators sent

to attack aero-engine factories, aircraft M.T. and ball bearing
works, synthetic oil plants and other objectives in Central Germany
dropped 2,637 tons. Weather varied from clear to complete cloud.

Results generally good. 438 Bomber Command aircraft were sent to
bomb 8 flying bomb sites. A.E.A.F. to mbers dropped 63tons on 2
fuel dumps and 3 railway centres in Northern FRANCE and fighters
flew armed reconnaissances and defensive patrols. German casualties

22, 1, 6. Ours - 20 heavy bombers and 13 fighters and fighter
bombers missing.
20th/21st. 951 aircraft despatched: COURTRAI railway
centre 317 (9 missing); synthetic oil plants BOTTROP 166 (10 missing);

and HOMBERG 157 (20 missing); flying bomb sites 87 (1 missing);
HAMBURG 26 (1 missing); diversionary sweep bomber support, etc. 198.
At COURTRAI, BOTTROP and HOMBERG weather conditions and marking

were good resulting in accurate and concentrated bombing.

ITALY. 19th. 18 medium bombers and 311 fighters attacked
communications in Northern Italy and the battle area.
SOUTHERN GERMANY. Yesterday Fortresses and Liberators

from Mediterranean dropped 312 tons on an airfield 70 miles S.W. of

MUNICH; 225 tons on another near FRIEDRICHSHAFEN;11 to ns on
Zeppelin Works and 262 tons on Mayback aero engine works FRIEDRICH-

SHAFEN. Enemy casualties 19, o, 2. Ours 9 bombers, 2 fighters

missing.

4. GERMAN ACTIVITY

During 24 hours ending 6 a.m. 21st, 90 flying bombs plotted.