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DIARY
Book 771
September 9-14, 1944
ABook
American Forum of the Air
See Post-War Planning: Bretton Woods Conference
Page
-cChase National Bank
See Foreign Funds Control
Cherwell, Lord (formerly Professor Lindemann)
See Post-War Planning: Germany (Quebec Conference)
China
Kung letter concerning reimbursement for United States
military expenses - 9/9/44
a) Treasury reply - 9/20/44: See Book 773, page 93
b) War Department (Major General Clay) reply -
771
9/20/44: Book 773, page 97
Kunming and Chengtu trip reported by Friedman - 9/14/44..
a) Communist-Kuomintang relations discussed
87
232
Coast Guard
Plane for HMJr's use: See Morgenthau, Henry, Jr.
Cuba
See Post-War Planning: Bretton Woods Conference
-FFinancing, Government
Security Market - current developments in: Haas memorandum 9/9/44
63
War Savings Bonds: Gehle, Frederick W., appointed
chairman of New York Committee - 9/12/44
146
Ford Motor Company
See Foreign Funds Control
Foreign Funds Control
Ford Motor Company, Chase National Bank, J.P. Morgan & Co.:
Privileged position in France during German occupation
indicates need for investigation of activities of
subsidiaries of large American firms - 9/12/44
a) HMJr agrees
141
b) Saxon suggested as Treasury representative 9/19/44: See Book 772, page 132
Friedman, Irving S.
See China
G-
Gehle, Frederick W.
See Financing, Government: War Savings Bonds
Germany
Quebec Conference: See Post-War Planning (Germany)
Gregory, Nicholas P. (Philadelphia Inquirer)
See Morgenthau, Henry, Jr.
142
-LLatin America
Cuba: See Post-War Planning (Bretton Woods Conference)
Book
Page
Lend-Lease
U.S.S.R.
Availability of cargo for September - 9/9/44
Soviet Aid Program: Report on status as of
June 30 - 9/9/44
July 31 - 9/15/44: See Book 772, page 39
September 11 - Crowley resume: Book 772. page 275
771
89
91
United Kingdom
Federal Reserve Bank of New York statement showing
dollar disbursements, week ending August 30, 1944 9/9/44
94
Quebec discussion (FDR and Churchill) - 9/14/44
223
a) Cherwell's letter to HMJr clarifying phrase
"or sold for profit" - 9/16/44: Book 772, page 61
1) Discussion by Treasury group - 9/19/44:
Book 772, page 218
2) Discussion by HMJr, Hull, and Stimson 9/20/44: Book 773, page 5
Lindemann, Frederick Alexander (Lord Cherwell)
See Post-War Planning: Germany (Quebec Conference)
-NMontoulieu, Edouardo I. (Minister of Finance, Cuba)
See Post-War Planning: Bretton Woods Conference
Morgan, J. P., & Company
See Foreign Funds Control
Morgenthau, Henry, Jr.
Gregory (Philadelphia Inquirer) story "HMJr May Head
Allied Rescue of Jews" and Fred Smith memorandum
thereon - 9/9/44
Coast Guard plane approved by Forrestal - 9/14/44
61
228
-0Odegard, Peter H.
Letter from London concerning experiences in European
Theatre of Operations, and HMJr's reply - 9/9/44
Oswego, New York, Emergency Refugee Shelter
See War Refugee Board
-PPehle, John W.
See Post-War Planning: Germany
69
- P - (Continued)
Book
Post-War Planning
Bretton Woods Conference
Page
Cuba: FDR-Minister of Finance Montoulieu exchange of
correspondence, following Harvard 1904 class reunion 9/9/44
771
American Forum of the Air: Reprints of broadcast
sent to HMJr by Granik - 9/14/44
79
229
Germany: Treasury Plan
Quebec Conference
Plan discussed by group - 9/9/44
a) McConnell post-surrender program dealing with
German industry
1
17
1) "Reparations mean a powerful Germany"
2) "Economic restitution by Germany to
United Nations
3) "German Militarism cannot be destroyed by
destroying Nazism alone"
4) "It is a fallacy that Europe needs a
strong industrial Germany"
18
20
22
23
5) "How British Industry would benefit by
proposed program"
6) "Why the resources of the Ruhr should be
locked up and the equipment removed"
7) "Controls over development of German
economy
26
27
28
8) "What to do about German re-education"
FDR-HMJr-Stimson-Hull-Hopkins conference reported to
Treasury group - 9/9/44
29
41
a) Trusteeship for Ruhr, Saar, and Kiel Canal
suggested by FDR
b) Partitioning immediately favored by FDR
c) "Fallacy that Europe needs strong industrial
Germany" - idea approved by FDR
42
d) Agricultural status also approved by FDR
e) Hull reiterates approval of entire Treasury plan
f) Stimson's memorandum giving reaction to
discussions thus far
43.50
HMJr summoned to Quebec by FDR - 9/12/44
140
Cherwell, Lord (at Quebec with Churchill): Goodhart's
evaluation of - 9/14/44
220
a) See letter dated 9/16/44 clarifying "or sold for
profit" in Lend-Lease discussion of FDR and
Churchill: See Book 772, page 61
1) HMJr explains that Lord Cherwell dictated
afterward from memory and FDR and Churchill
initialled: Book 773, page 38
2) FDR thanks HMJr for copy of Cherwell
memorandum - 9/30/44: Book 777. page 188
b) Assists HMJr to understand Churchill: Book 772,
page 210
- P - (Continued)
Book
Page
Post-War Planning (Continued)
Germany: Treasury Plan (Continued)
Pehle memorandum supporting and enlarging upon present
771
Treasury plan - 9/12/44
Surplus Property, Disposal of: Surplus War Property Policy
Board - monthly status report, July 1944, transmitted
by Olrich - 9/11/44
144
116
-qQuebec Conference
See Lend-Lease: United Kingdom
Post-War Planning: Germany
Saxon, James J.
See Foreign Funds Control
Security Market
See Financing, Government
Surplus War Property Policy Board
See Post-War Planning: Surplus Property, Disposal of
-UU.S.S.R.
See Lend-Lease
-WWar Refugee Board
Report for week ending
September 2 - 9/12/44
9 - 9/20/44: See Book 773, page 106
16 - 9/26/44: Book 775, page 191
23 - 10/2/44: Book 778, page 37
171
Oswego, New York, Emergency Refugee Shelter:
War Refugee Board approves recruiting of farm labor in
real emergencies - 9/13/44
Mrs. FDR-Mrs. HMJr visit discussed by HMJr, Abrahanson,
and Pehle - 9/25/44: Book 774, page 161
198
1
September 9, 1944
9:55 a.m.
Operator:
New York is ready with the call and I'd like to
HMJr:
Okay.
Operator:
In the interest of National Security you are
requested to refrain from discussing the
departure or arrival, name or location of ships,
military topics of any kind, technical weather
information, or any information which might be
of aid or comfort to the enemy. Thank you, sir.
HMJr:
All right. Go ahead. Hello. Hello. Hello.
Operator:
HMJr:
Go ahead, sir.
Hello.
Operator
Overseas:
Go ahead, please.
L. C.
give you the Government regulations.
Aarons:
Hello.
HMJr:
Hello.
A:
Mr. Secretary.
HMJr:
Go ahead.
A:
HMJr:
A:
I have to repeat the censorship warning that
the enemy is recording your conversation and
will compare 'it with previous information in
its possession. . Great discretion is necessary
and any indiscretion will be reported by censors
to the highest authority.
Okay.
Mr. Secretary, I wanted to know whether you
knew of the request that I have received to
return.
HMJr:
What's that?
A:
I wanted to know whether you knew about the
request that I had received to return home.
2
-2HMJr:
No, I know nothing about it.
A:
You do not?
HMJr:
No.
A:
It comes from Hannegan.
HMJr:
What's that?
A:
From Hannegan.
HMJr:
Hannegan?
A:
Yes.
HMJr:
What about Hannegan?
A:
I received a request to return home from him
and I wanted to know whether you knew about
1t.
HMJr:
Well, who is this talking?
A:
Aarons in London.
HMJr:
Aarons, Hannegan asked you to return?
A:
Yes. And the Chief said that you knew about
1 t.
HMJr:
A:
HMJr:
Hello. Well
Would you ask him about it, Mr. Secretary?
I don't know why they asked you. The person
they wanted to come back is Isbey -- Frank
Isbey.
A:
Oh, good Heavens! Well, then the whole thing
HMJr:
Well, how did they ever get you?
A:
It was addressed to me.
HMJr:
What?
has been a mistake.
-3A:
It was addressed to me.
HMJr:
Well, don't they mention Frank Isbey?
A:
No, sir, they do not.
Well, that's the stupidest thing I've ever
HMJr:
heard of.
A:
Well, do you want me to pass this on to Frank?
HMJr:
A:
Yeah, the thing is it's Isbey that they want.
I see. Well, I couldn't understand it.
HMJr:
Now, do they explain why they want Isbey?
A:
Yes, sir; but Isbey's name is not mentioned in
the telegram.
HMJr:
Well, I can't understand -- well, anyway, it's
Isbey that they want, and do they say in the
telegram why they want him?
A:
Yes, sir.
HMJr:
Do you know where Isbey is?
A:
Yes, I can reach him right away.
HMJr:
What?
A:
HMJr:
A:
HMJr:
I can get hold of him.
Well, you get hold of Isbey and as long as I'm
talking to you, you tell him that I hope that
he will do it.
Righto. I'11 do that.
Well, the telegram's an open telegram -- what
does it say?
A:
It says that you and Jones, McCloy and Crowley
join him -- join the President in requesting
that you return at once to accept chairmanship
of the Finance Committee
HMJr:
I see.
3
4
-4 for the Democratic National Campaign.
A:
HMJr:
Yeah.
A:
And I couldn't understand why 1 t was addressed
HMJr:
No. (Laughs)
A:
You see my difficulty.
HMJr:
(Laughs)
A:
I'll tell Isbey this is intended for him.
HMJr:
Yeah.
A:
Do you intend to confirm that in any way?
HMJr:
I?
A:
No, I mean, someone -- to make it Isbey ....
HMJr:
Oh.
to me.
A:
or should I
HMJr:
you just tell him you talked to me on the
phone and that there was some -- some person
made a mistake.
HMJr:
Yes, sir.
And that 1t.1e meant for him.
A:
All right. I'11 do that.
HMJr:
Where is Isbey?
A:
He's -- he's here in London, now.
HMJr:
All right. You know we -- we've fixed the rate
A:
Fine.
HMJr:
Have you heard about it?
A:
on the mark.
-50
A:
Pardon?
HMJr:
What?
A:
I didn't hear you.
We've fixed the rate for the mark.
HMJr:
A:
Oh, yes, sir. I heard about it yesterday.
HMJr:
You did?
A:
Yes.
HMJr:
Everybody, I suppose, is happy over there.
Yes. Is Taylor coming back?
He's had no baby yet.
A:
HMJr:
A:
Oh, goodness!
HMJr:
Is he
A:
Well, that's too bad.
HMJr:
Yeah.
A:
Well, thank you very much, sir.
HMJr:
All right.
A:
Thank you.
HMJr:
Bye.
5
6
September 9, 1944
10:05 a.m.
MATERIAL FOR QUEBEC CONFERENCE
Present:
Mr. D.W. Bell
Mr. Gaston
Mr. Pehle
Mr. White
Mr. O'Connell
Mrs. Klotz
Mr. McConnell
Mr. Bernstein
Mrs. Gold
Mr. Adler
Mr. Nathan
Mr. DuBois
Mr. Glasser
Mr. Ostrow
Mr. Bittinger
Mr. Minskoff
Mr. Taylor
MR. McCONNELL: Do you want to go into this indus-
trial aspect?
H.M.JR:
Yes,
I don't see any sense in bringing
Baruch
in at the
start.
MR. McCONNELL: This is very simple. (Hands the
Secretary attached memorandum of September 10)
H.M. JR: I don't think that this answers it. Last
night I read the title and it is very interesting. Is
there a book now? Where is Taylor? Is this number one
different from what it was?
MR. TAYLOR: It is slightly shorter, sir.
H.M. JR: "The program to prevent Germany from starting
a World War." There is nothing new in that?
MR. DuBOIS: Nothing new - just a little bit taken
out to make it shorter.
H.M.JR: Well, I have had that so there is no use
going into that.
-2-
7
"Reparations mean a powerful Germany" - could somebody
read that out loud?
MR. WHITE: I will get a set of duplicates.
H.M.JR: Here, take it and read it out loud.
(Mr. White reads Attachment A)
H.M.JR: Unless somebody has some violent objection -
I have just got to go through this thing to see what is in
here. Do you see what I mean? I haven't got very much time.
The next thing is "Economic restitution by Germany to the
United Nations." Is this new?
MR. WHITE: There are no new ideas, Mr. Secretary, but
there are some added items. I can attempt to state them as
briefly as possible.
H.M.JR: Read this one, or let Pehle read it.
(Mr. White reads Attachment B)
MR. WHITE: There is one here that I don't think you
are familiar with that you might want to hear next: "German Militarism cannot be destroyed by destroying Nazism.
H.M.JR: Well, anything that is new.
(Mr. White reads Attachment C)
MR. WHITE: "How British industry would benefit by
proposed program."
H.M.JR: That is new. Who are the men or women who
worked on that?
MR. WHITE: Harold Glasser.
MR. GLASSER: We all worked on it.
H.M.JR: Let Taylor read it.
MR. WHITE: It is missing. Will you (Dubois) see where
that is? (Mr. DuBois left the conference temporarily)
8
-3MR. WHITE: "It is a fallacy that Europe needs a strong
industrial Germany." I wonder if you will read that, John?
MR. PEHLE: Sure.
MR. GASTON: That is important. I think you will have
to meet that.
(Mr. Pehle reads Attachment D)
H.M.JR: What was that figure between the best and worst?
MR. PEHLE: Thirty-two million tons.
H.M.JR: You gave me the figure, McConnell, the other day
between the low and the high.
MR. TAYLOR: About sixty million tons. The high point
was reached in 1913.
H.M.JR: Mrs. Klotz, tell Haas to follow up on those figures.
MR. GASTON: One point that might be made there is that
the dislocation - which might be the chief disadvantage of any
change in the streams of trade - that the temporary dislocation has already been written off in the five years of war.
MR. WHITE: That is the real point, yes. It is different
than if you were starting from before the war.
MR. GASTON: Yes, if you were starting before the war-MR. WHITE: There has been no trade between Germany
and these other countries. There will be none.
MR. BERNSTEIN: "How British industry would benefit from
the program." (Mr. Bernstein reads Attachment E)
H.M.JR: Be sure to put on the outside of the book,
"For the Quebec Conference.
MR. WHITE: The President's name, and "For the Quebec
Conference"?
H.M.JR: Yes.
9
-4MR. WHITE: "Why the Resources of the Ruhr should be
locked up and equipment removed."
H.M.JR: Yes.
MR. WHITE: I will read that.
(Mr. White reads Attachment F)
H.M.JR: That is wonderful.
MR. WHITE: I feel we have exaggerated.
H.M.JR: That is all right. But I mean, the effect
this has on me is that if anything like this is in project
I think it would be the greatest boon for England that she
has ever seen in her whole history. All of Mr. Churchill's
fears could be laid away. He could put his mind on licking
Japan - helping us to. He could put his mind on going to
work to help us to lick Japan and stop worrying about their
economic future.
MR. GASTON : Is much of that English coal, coke?
MR. McCONNELL: Practically all.
MR. GASTON: I asked whether that English coal was
much of it coking coal and Mr. McConnell says practically
all of it. In other words, steel-making coal.
MR. NATHAN: Yes, for coke purposes. We checked up
on that very carefully. The British could supply all the
coal that would be lost in the world.
H.M.JR: Say it again, please?
MR. NATHAN: We checked on it very carefully. The
British could supply all the coal for coking purposes if
we lose the coal mines in the Ruhr.
MR. WHITE: On this list of leading Nazis - we decided
not to include that list, and we put "being compiled" because
10
-5there are a lot more to be added to them. So that is not
in here.
H.M.JR: I tell you what I. would do, I would put in a
preliminary list.
1935.
MR. WHITE: These are the Nazis who were living in
H.M.JR: As a matter of fact, don't you think that
particular part might be rather fortuitous? I think we
are really stepping out of our role on that one.
MR. WHITE: Would you (to Mr. Ostrow) mind telling
them to delete that number 12, please? Just do the Table
of Contents over without the 12. Thank you.
(Mr. Ostrow leaves the conference temporarily)
MR. WHITE: "The well-being of the German economy is
the responsibility of the Germans and not of the Allied
Military Authorities."
We really are making just a series of statements, but
I will be glad to read it. It is brief.
H.M.JR: Long?
MR. WHITE: It is brief.
Let me go over the others and then you can choose:
"What to do about German re-education, 11 Punishment of
war criminals," " we modified that slightly -"Controls over
development of German economy" - that is very brief and
should be expanded.
H.M.JR: Let's hear that.
(Mr. White reads Attachment G)
MR. WHITE: We easily could expand that. We will
go ahead and prepare another draft. If we are able, we
will put it in.
11
-6-
MR. PEHLE: "What to do about German re-education."
(Mr. Pehle reads Attachment H)
MR. WHITE: I want to comment on a couple of changes
in the preliminary general principle which we made. It
won't be necessary to read the whole of it again.
One is, we thought it better to delete the matter
of insignia. We left only the uniforms. The insignia was
their own addition and they seemed to object to it. We
can add that later.
Secondly, we cut out much of the United States'
responsibility. We shortened that, and merely said that
it ought to participate in the administration, but the
program we have would permit of a very rapid withdrawal
of U.S. troops.
Joe, can you think of other things to mention?
MR. DuBOIS: A little bit out of the Ruhr section you recall, where we had the three stages of destruction -
we eliminated the three stages.
MR. WHITE: We made it briefer.
H.M.JR: Where did you leave the Saar?
MR. WHITE: The Saar with France. It would be unfortunate if that were not done.
H.M.JR: What else do you have, Harry?
12
-7MR. WHITE: There are some charts back there, but
really they are not very effective. All they show is the
coal production and the iron production of the various
countries, and-- Oh, you have a copy?
(Mr. Nathan gives the Secretary copies of charts)
H.M.JR: You didn't include the Saar, did you?
MR. BERNSTEIN: Which one is that?
H.M.JR: "Production of coal, iron, and steel in the
various countries."
MR. BERNSTEIN: We couldn't separate it, from the
figures available.
H.M.JR: Now, when you speak of the Ruhr - after all,
the Ruhr runs clear across Germany into Belgium. Are you
just talking about that part which is in Germany?
MR. NATHAN: Yes, we took that alone, Mr. Secretary.
H.M.JR: But it does run clear across there.
MR. NATHAN: There are special figures for what is
called the Ruhr, but not for the Saar, no.
H.M.JR: Too bad. Well, the steel produced in the Saar
would fall under what?
MR. NATHAN: According to our scheme it would fall to
France.
H.M.JR: But this production of coal - you have the
Ruhr, so much steel; and you have France, Belgium, United
Kingdom, but you don't show what is produced-MR. NATHAN: What has been produced in 1937 in the Saar
is not shown on this chart, Mr. Secretary. We were interested
to show the relationship between production in the Ruhr and
the Western European countries.
13
-8H.M.JR: That is the purpose?
MR. NATHAN: Yes.
H.M.JR: Could you do another one for me with the Saar?
MR. NATHAN: I shall try to.
H.M.JR: I mean the same way. This gives me what I
want. It shows the Ruhr in relation to the rest of the
world.
MR. NATHAN: I shall make the same one for the Saar.
H.M.JR: Will these-MR. WHITE: That merely shows how the coal production
of the kuhr shot up during the war period.
H.M.JR: Will these be in the book?
MR. WHITE: Yes, and there are also two maps in the
book; one map which you have seen a number of times, showing
the boundries which you are suggesting, and another map
which is a small edition of that large map on the location
of coal deposits in the Ruhr that you had here.
H.M.JR: Well, I think, considering the time that you
people had, it is a perfectly amazingly good job, and I
want to congratulate all of you. I realize perfectly that
it isn't the last word, and I am a little bit timid about
giving copies to Mr. Stimson and Mr. Hull, but I am going
to do it anyway.
Now, the only thing I suggest is that you people
keep working at this, and if we find that we have made
mistakes, or we can improve the thing, we will ask them to
give us back certain sections and we can substitute, and I
will explain when I present this at twelve o'clock today
that this is a job done wholly within the Treasury, without
consultation or benefit of what other Departments have,
that this may be duplication, and so forth.
14
o
-9MR. WHITE: And that it was done in a very brief time.
H.M.JR: But it does give me an opportunity, and as
far as I know it is the only thing, unless the President
has something he hasn't told any of us about, which does
give him the picture - and I listened last night to the
whole speech of Mr. Dewey, and I think, in the light of his
speech - and I recommend that everybody in this room read
it - did any of you hear it?
(Mrs. Gold nods her head)
H.M.J.R: Well, the transition period where he stops and
goes from his economic philosophical talk, into the political,
is the he?
most amazing thing. He changed his whole voice,
didn't
(Mrs. Gold nods her head)
MR. WHITE: Which way?
H.M.JR: He suddenly started entirely differently.
It is here where he started (points to Times write-up).
He ended up, "There will be for each of us, not only
as nations, but as individuals, the daily task of getting
along with out neighbors, wherever they are" - very quiet then he starts in entirely differently - "By this'T do
not me an getting along with the philosophy of Washington
wasters. They have been proposing that America should try
to buy the good-will of the world out of the goods and labor
of the American people. They propose to buy themselves
international power out of our pocketbooks.
Now, what the hell he means by that, I don't know.
I don't know what he is talking about.
MR. WHITE: They are giving money away in Lend-Lease
and giving it to Latin-American countries.
H.M.JR: He talks of the WPA of the world - but the
15
o
- 10 -
rest of the talk was very good. Didn't you think it was
good?
MRS. GOLD: Yes, I was amazed at what he had in it.
H.M.JR: It puts the Administration very much on the
defensive.
MR. O'CONNELL: Only in the last five minutes.
H.M.JR: No, I mean the whole talk; it was the whole
talk. It doesn't satisfy me, but it goes much further than
anybody has for Mr. Roosevelt. And it may be good, because
we will have to go further than he does. The net result,
after thinking about it all night - I think it was good, be-
cause after that, Mr. Roosevelt, or somebody, has to do better.
MR. WHITE: Is he specific at all?
H.M.JR: Yes, and his delivery was very quiet, and
everything. Of course, I think he made a great mistake
that he didn't end before he went into the political stuff.
I think he would have been much, much more effective. He
would be very hard to answer if he just had stopped on that
part there about our neighbors.
MR. GASTON: He makes it appear that his whole nego-
tiations with Dulles, and so. forth, was for the purpose
of making political ammunition and political fire.
H.M.JR: He didn't, up to that one point.
MR. GASTON: That is what I mean.
H.M.JR: I am very glad we are doing what we are.
I should think it would be very useful to the President
at Quebec. Please don't stop. Please keep right on.
It is very, very necessary. And out of this thing, what I
am hoping is, there will come a directive from the President as to his policy. That is what I am hoping for.
15
- 10 -
rest of the talk was very good. Didn't you think it was
good?
MRS. GOLD: Yes, I was amazed at what he had in it.
H.M.JR: It puts the Administration very much on the
defensive.
MR. O'CONNELL: Only in the last five minutes.
.M.JR: No, I mean the whole talk; it was the whole
talk. It doesn't satisfy me, but it goes much further than
anybody has for Mr. Roosevelt. And it may be good, because
we will have to go further than he does. The net result,
after thinking about it all night - I think it was good, be-
cause after that, Mr. Roosevelt, or somebody, has to do better.
MR. WHITE: Is he specific at all?
H.M.JR: Yes, and his delivery was very quiet, and
everything. Of course, I think he made a great mistake
that he didn't end before he went into the political stuff.
I think he would have been much, much more effective. He
would be very hard to answer if he just had stopped on that
part there about our neighbors.
MR. GASTON: He makes it appear that his whole nego-
tiations with Dulles, and so forth, was for the purpose
of making political ammunition and political fire.
H.M.JR: He didn't, up to that one point.
MR. GASTON: That is what I mean.
H.M.JR: I am very glad we are doing what we are.
I should think it would be very useful to the President
at Quebec. Please don't stop. Please keep right on.
It is very, very necessary. And out of this thing, what I
am hoping is, there will come a directive from the President as to his policy. That is what I am hoping for.
16
- 11 -
MR. WHITE: Of course, there is a lot of material, for
example, that Bob McConnell has, and is gathering, which
would be extremely useful if we had to expand the questions
of economic controls. that would be vital.
H.M. JR: Well, as I say, what I would like to do could you get together one more and leave it with Fitz?
And then I am going to sit here and read it.
MR. WHITE: I will get it right back. We don't have
complete copies of the maps, and so forth, but the President's copy will be complete.
H.M. JR: Neither Mr. Hull nor Mr. Stimson will look
at this thing now, anyway.
I congratulate all of you.
17
Sept.10,1944
Secretary Morgenthau
R. E. McConnell
In the post-surrender program which will effectively
forestall a third German war, it will be necessary to deal
with German industry, and the following procedures should
become an integral part thereof.
If these three procedures were adopted, Germany would
be rendered impotent to conduct another war. If the Allied
Nations continued to maintain the status suggested, Germany's
war potential will continue to be zero.
(1) Eliminate 100% of all synthetic oil capacity (which
would destroy 80% of Germany's internal oil resources) and
prohibit the reconstruction of plants and the importation of
oil beyond normal peacetime inventories.
(2) Eliminate 75% of Germany's synthetic nitrogen plant
capacity (which would leave a capacity in Germany ample for
peacetime nitrogen requirements) and prohibit reconstruction
of plant and all importation of nitrogen compounds.
(3) Eliminate 50% of Germany's steel-making capacity
in those categories of plants which are most capable of producing essential war material such as heavy forging, electro-
lytic and high alloy steels. Also prohibit importation of
iron ore, flux material, steel and steel products beyond normal
peacetime inventories.
While either one of the above three procedures will effectively accomplish the objective, the other two will add
insurance.
REM:ESD
A
18
Reparations mean a powerful Germany.
If we were to expect Germany to pay recurring reparations,
whether in the form of money or goods, we would be forced at
the very beginning to start a rehabilitation and reconstruction
program for the German economy. For instance, we would have to
supply her with transportation equipment, public utility repairs,
food for her working population, machinery for heavy industry
damaged by bombing, reconstruction of housing and industrial raw
materials. No matter how the program would be dressed up, we
would, in effect be doing for Germany what we expect to do for
the liberated areas of Europe but perhaps on an even greater
scale, because of Germany's more advanced industrialization.
When reparation deliveries cease Germany will be left with
a
more powerful economy and a larger share of foreign markets
than she had in the Thirties.
Therefore, a program of large-scale reparations must be
rejected for the following reasons:
1. Politically it would be very difficult to persuade
people of liberated Europe and of the other United
Nations, including the U.S., to accept a program
of immediate reconstruction of the German economy.
2. If liberated Europe becomes economically dependent
on Germany for reparations, her economic dependence
cannot be broken off when reparations cease. The
rest of Europe would continue to be dependent on
Germany as a source of supply and as a market. These
economic ties would also mean political ties. Germany
would be right back where she was in the Thirties when
she was able to dominate the rest of Europe economi-
cally through her industrial power and to exert her
economic power to achieve political dominations.
3. An economically powerful Germany ipso facto constitutes
a military threat to world security.
4. The payment of reparations is directly competitive
with the export industries of the U.S., the U.K.
and France and would create political dissensions
among the United Nations.
(a) Whatever the recipient countries get in
reparations they will not buy from the
Allied industrial powers in the post-war
period.
19
20
(b) If Germany is placed on a reparations basis
she will have to export industrial goods to
non-European markets in order to get the
necessary foreign exchange to import the raw
materials for her industry. Therefore, she
will again compete with England and the
United States in the Latin American, African
and Asiatic markets.
5. An economically powerful Germany would be able to
compete more effectively with other countries as
and when the payment of reparations ceases.
A reparations program for Germany after this war holds
no greater promise of success than the Dawes and Young plans
tried after the and of the first World War.
B
Economic restitution by Germany to United Nations
L
In lieu of recurring reparations payments the nation
entitled to such payments will receive from Germany a lump
sum payment in the form of German material resources, German
human resources and German territory.
This lump sum payment, which may be described as
restitution rather than reparations will be effected in the
following manner:
(a) The transfer of German territory to liberated
countries including the industrial installations
located there. It is proposed that the great
industrial areas of Silesia be transferred to
Poland and the industry of the Saar and the
adjacent territories be transferred to France.
These territories will represent enormous wealth
to the recipient countries.
(b) By removal and distribution among devastated
countries, of industrial plants and equipment
and transportation facilities including rail-
roads, situated within the remaining German
territory and the Kuhr. It is expected that
complete factory units, machinery, equipment,
stocks of raw materials, railroad and shipping
will be transferred to the devastated countries
and will constitute a real basis for the reconstruction and industrialization of liberated
Europe to the extent possible the whole industry
of the Ruhr will be 80 transferred.
(c) By the creation of German labor battalions to
be used for reconstruction work outside Germany.
(d) By confiscation of all German foreign exchange
assets of any character whatsoever.
The type of restitution described above will be
more beneficial both politically and economically to
recipient countries than would be any form of recurring
reparations payments.
Benefits will be realized almost immediately by
the receipt of machinery, equipment and manpower, and
the economies of the recipient countries will be
strengthened absolutely as well as relatively to that
of Germany.
20
21
To the extent that the need of these countries for
industrial products is supplied by U. S. and U. K. instead
of by Germany, the receiving nations benefit by obtaining delivery more rapidly in the immediate post-war period.
Also by supplying such goods U. S. and U. K. enjoy expanded
foreign post-war markets.
C
German Militarism cannot be destroyed by destroying Nazism
alone.
(1) The Nazi regime is essentially the culmination of the
unchanging German drive toward aggression.
(a) German society has been dominated for et least three
generations by powerful forces fashioning the German state and
nation into a machine for military conquest and self-aggrandise-
ment. Since 1864 Germany has launched five wars of aggression
against other powers, each war involving more destruction over
larger areas than the previous one.
(b) As in the case of Japan, the rapid evolution of a
modern industrial system in Germany immeasurably strengthened
the economic base of German militarism without weakening the
Prussian feudal ideology or its hold on German society.
(c) The Nasi regime is not an excrescence on an otherwise healthy society but an organic growth out of the German
body politic. Even before the Nazi regime seizci power, the
German nation had demonstrated an unequalled capacity to be
seduced by a militar ist clique offering the promise of economic
security and political domination in exchange for disciplined
acceptance of its leadership. What the Nazi regime has done
has been to systematically debauch the passive German nation
on an unprecented scale and shape it into an organized and
dehumanized military machine integrated by all the forces of
modern technique and science.
(2) The dissolution of the Nazi Party will not, therefore,
by itself ensure the destruction of the militaristic spirit
Instilled into the German people over generations and given
an overwhelming impetus in the last decade. This will of
necessity be an arduous process, and for a long time to come
it would be gambling with the very destiny of civilization
to rely on an unproven German capacity for self-regeneration
in the face of its proven capacity for creating new weapons
of destruction to be used in wars of aggression. Therefore,
in addition to disarming and weakening Germany as a military
power, the interests of world security will best be promoted by:
(a) Forcibly reducing Germany's industrial capacity
so that she will cease to be a major economic, military and
political power.
(b) Strengthening all Germany's neighbors politically
and economically relatively to Germany. The more likely she
is to realise the futility of the militarist philosophy from
which aggression ensues.
22
23
It is a fallacy that Europe needs a strong industrial
Germany.
1. The assumption sometimes made that Germany is an indis-
pensable source of industrial supplies for the rest of Europe
is not valid.
U.S., U.K. and the French-Luxembourg-Belgian industrial
group could easily have supplied out of unused industrial
capacity practically all that Germany supplied to Europe
during the pre-war period. In the post-war period the expanded
industrial capacity of the United Nations, particularly the
U.S., can easily provide the reconstruction and industrial
needs of Europe without German assistance.
Total German exports to the entire world in 1938 were only
about $2 billion, of which machinery steel and steel products
amounted to about $750 million, coal $165 million and chemicals
$230 million.
These amounts are trivial in comparison with the increased
industrial potential of the U.S. alone, or of the U.K. Onefifth of our lend-lease exports of 1943 would be sufficient to
replace the full exports of Germany to the whole world.
2. A claim has been made that Europe is dependent upon Ruhr
coal. The French-Belgian steel industry and some of the new
industrial units which will arise in Europe after the war will
need imported coal supplies. However, the British coal
industry which suffered from German competition before the war
will be able to supply a major part if not all of these needs.
The coal industries of France, Poland, Silesia and the Saar
are also capable of further expansion if the competition of
the Ruhr is eliminated. Further supplies if necessary could
be obtained from the United States though at a much higher
price. The different quality of the substitute coals may
require some technological changes but the adjustment can be
made.
Germany had a net export of coal of 32 million tons in
1937. The difference between the British coal production in
a good year and a depressed year was more than the total German
exports of coal. Moreover, at no time in the last 25 years
has the British coal industry worked at full capacity.
3. Germany has been important to the rest of Europe as a
market principally for surplus agricultural products. In
1937 Germany's food imports from the world were $800 million,
of which Europe supplied $450 million. Total German purchases
of raw materials from Europe in 1937 were about $850 million.
The less of the German market will be largely compensated for
by the following developments:
24
-2If German industry is eliminated, no doubt the
bulk of the industrial raw materials which Germany
(a)
used to purchase will now be bought by other European
nations which will henceforth produce the industrial
commodities which Germany exported before to Europe.
(b) The industrialization and the heightened standard
of living of the rest of Europe will absorb a part of
the food surpluses which formerly went to Germany.
(c) Those parts of Germany which will be added to
other countries (the Rhineland, Silesia, East Prussia)
may have as high a volume of food imports as before,
perhaps higher.
(d) The remaining part of Germany will continue to
import some food, perhaps 25%-50% of former food imports.
4.
Germany was important to the rest of Europe as a
market to the following extent:
Percentage of each country's exports to
Germany
1938
United Kingdom
France
4%
6
U.S.S.R.
Belgium
12
Norway
13
Italy
Czechoslovakia
Netherlands
7
15
15
15
Denmark
20
Poland
24
Yugoslavia
38
Greece
38 %
The U.K. exported principally coal and textile materials
to Germany and the principal French exports were iron ore and
wool. The elimination of German industrial exports will provide adequate markets for these exports and more.
The loss of the German market may be important to the
Balkan countries. Agricultural exports of these countries
to Germany were abnormally large in 1938 because of Germany's
unscrupulous exploitation through clearing agreements and
other devices. These countries will find markets for part of
25
-their food surplus through industrialisation and a higher
standard of living within their own country. German areas
will continue to import some food from them. However, there
may be a net loss of markets to Denmark, Holland, and
Yugoslavia, and these countries will need to make an adjust-
ment in their economies which should not be difficult in the
period of greater adjustments which will come with liberation.
5. In short, the statement that a healthy European economy
is dependent upon German industry was never true, nor will
it be true in the future. Therefore the treatment to be
accorded to Germany should be decided upon without reference
to the economic consequences upon the rest of Europe. At the
worst, these economic consequences will involve relatively
minor economic disadvantages in certain sections of Europe.
At best, they will speed up the industrial development of
Europe outside of Germany. But any disadvantages will be
more than offset by real gains to the political objectives
and the economic interests of the United Nations as a whole.
0
E
How British Industry Would Benefit by Proposed Program
1. The British coal industry would recover from its thirty
year depression by gaining new markets. Britain would
meet the major portion of the European coal needs formerly
met by the annual Kuhr production of 125 million tons.
The consequent expansion of British coal output would
allow for the development of a coherent program for the
expansion and reorganization of what has been Britain's
leading depressed Industry since 1918 and facilitate the
elimination of the depressed areas.
2. The reduction in German industrial capacity would eliminate
German competition with British exports in the wor Id market.
Not only will England be in a position to recapture many
of the foreign markets she lost to Germany after 1918, but
she will participate in supplying the devastated countries
of Europe with all types of consumer and industrial goods
for their reconstruction needs in the immediate post-war
years.
3. Transference of a large section of German shipping, both
commercial and naval, and shipbuilding equipment to
England will be an important Item in England's program
of post-war economic expansion of restitution.
4. Britain's foreign exchange position will be strengthened
and the pressure on sterling reduced by the expansion of
her exports and shipping services.
5. The assurance of peace and security would constitute
England's greatest single economic benefit from the
proposed program designed to put Germany in a position
never again to wage effective war on the continent.
England would be able to undertake the program for
economic and social reconstruction advanced in the
Beveridge plan and the Government program for full
employment without having to worry about the future
financial burdens of maintaining large army and huge
armament industries indefinitely.
6. Britain's political stability would be reinforced by
her increased ability to meet the insistent domestic
demands for economic reform resulting from the assurances
of security and of an expansion of her exports.
26
27
Why the resources of the Ruhr should be locked up and the
equipment removed.
During the last hundred years the basis of modern German
militarism has been the industrial capacity of the Ruhr. Very
large resources of high quality coal that lends itself particularly well to the production of coke and a fortunate
geographic location which facilitated the importation of iron
ore, were the foundation of an industrial apparatus that is
unique throughout the world and the development of which has
been deliberately guided by military objectives.
The elimination of this industrial apparatus is indis-
pensable to rendering renewed German aggression impossible
for many years to come. No other device could serve this main
objective of the United Nations with the same effectiveness.
Dismemberment of Germany alone would not suffice since
political developments several decades hence may make a
reunion of the several German states possible. In that case
the reunited German State would immediately possess a huge
industrial potential unless the Ruhr industry were destroyed.
If the Ruhr industry were eliminated, new iron and steel
industries would unquestionably be built up in the rest of
Europe to provide for those needs in iron and steel which the
Ruhr used to satisfy, and to make use of the French iron ore
production. Coal would become available from the Saar, from
Increased production in France, Great Britain, Silesia and
Poland. The elimination of the Ruhr would hence be a welcome
contribution to the prosperity of the coal industry of several
United Nations. Great Britain has very large reserves of coal;
her proved reserves are held to represent, at the present rate
of extraction, about 500 years' supply.
Britain's coal production has severely declined in the
inter-war period and never again reached its maximum of 1913
(293 million metric tons). The level of production in the
years preceding this was that of the turn of the century, the
increase between 1900 and 1913 having been lost. The produc-
tion in 1938 was 60 million tons lower than in 1913.
The new iron and steel industries which will arise in
Europe to take the place of the Ruhr will have such a powerful vested interest that they will constitute a permanent
and effective barrier to the re-industrialization of the Ruhr.
28
Controls over Development of German Economy
A long range program should be put into effect for the
purpose of controlling the strategic elements in the German
economy for a prolonged period, at least 20 years. The
elements which should be controlled are:
1. German foreign assets, including patents and
copyrights.
2. German foreign trade.
3. Clearing and trade agreements with foreign
countries.
4. Capital imports and capital exports.
5. Industries producing strategic materials other
than those for which special provision has been
made.
6. The German commercial and fishing fleet.
7. Inland navigation, e.g., canals and rivers.
It is essential that the foregoing strategic elements in
the German economy be controlled lest through their use, the
Germans once again proceed to build up various aspects of their
industrial and economic structure for future militaristic and
aggressive purposes. Germany has been the leader in the world
in using customs tariffs, trade preferences, foreign exchange
control, control over transit trade, import quotas, international cartels, patents and copyrights for discriminatory and
unfair trade advantages against her neighbors. It has been the
focal point for many of the festering sores and competitive
trade wars throughout the 1920's and 30's.
H
29
What to do about German re-education
The militaristic spirit which pervades the German people
has been deliberately fostered by all educational institutions in Germany for many decades. Schools, Colleges and
Universities were used with great effectiveness to instill
into the children and the youth of the nation the seeds of
aggressive nationalism and the desire for world domination.
Re-education of the German people must hence be part of the
program to render Germany ineffective as an aggressive
power.
Re-education cannot be effectively undertaken from outside the country and by teachers from abroad. It must be done
by the Germans themselves. The hard facts of defeat and of
the need for political, economic and social reorientation must
be the teachers of the German people. The existing educational
system which is utterly nazified must be completely reorganized
and reformed. The chief task will be to locate politically
reliable teachers and to educate, as soon as possible, new
teachers who are animated by a new spirit.
A United Nations Commission of Education should be
created which will have supreme authority in all matters of
education and organs of public opinion. All educational
institutions of any type and character will be closed. Their
reopening will depend (1) upon the possibility of assembling
faculties in whom political confidence can be placed; (2) upon
reorganization of curricula; (3) upon the completion of new
text books to replace the utterly unusable books of the past.
During a preliminary period only appointments to faculties of
educational institution should be subject to the approval of
the United Nations Commission of Education. While it may be
possible to reassemble faculties for primary schools after
relatively short time, all institutions of higher learning,
the chief centers of militaristic, pan-German propaganda in
the past, may have to remain closed for a number of years.
a
30
September 9, 1944
11:43 a.m.
HMJr:
Hopkins?
Operator:
Right.
HMJr:
Yes.
Operator:
Go ahead.
HMJr:
Hello.
Harry
Hopkins:
Henry.
HMJr:
Yes, Harry.
H:
I want to tell you what I know more about that
suggestion you made about the personnel.
HMJr:
Yeah.
H:
First, the job was offered to Byrnes.
HMJr:
Yeah.
H:
He is turning it down.
HMJr:
Really?
H:
Yeah. Now, in between then, when I knew that
HMJr:
Yeah.
H:
.... and -- I went over to see Hull to make
certain that Hull would not jump the traces.
HMJr:
Yes.
H:
Hull is quite agreeable and, indeed, anxious
and said to me, amongst other things, "Do you
think we can depend on Winant to be tough?" 11
HMJr:
Yes.
H:
I said I thought so.
HMJr:
Uh huh.
H:
Now -- then Hull said to me, "Well, 1f you'll
find out from the President the lay of the land...."
31
-2HMJr:
Yeah.
H:
I didn't tell him that you had -- you know
HMJr:
Good.
had been in on this. -- "
H:
I will
speak to the President. II And now, bear in mind
the way it lies now
HMJr:
Yeah.
that Jimmy is not going to take it
H:
HMJr:
Yeah.
although it was put up to him very badly.
H:
HMJr:
Very badly?
H:
Oh, God, it was terrible.
HMJr:
In what way was it "badly"?
H:
Well, the Department -- State Department sent
HMJr:
Oh, for God's sake.
H:
And, in effect, they -- to tell him what the
a man over to see him.
job was about, you see?
HMJr:
H:
Yeah.
And they outlined to him this job which they've
got on the chart
HMJr:
Yeah.
H:
....
HMJr:
Oh.
H:
Uh
HMJr:
Oh.
H:
of the European Advisory Commission chart.
for the Economic Control Commission
which is, as I understand it, is an outfit
that comes under the High Commission. See?
-3HMJr:
I see.
H:
And they didn't talk to him about the High
Commissioner.
HMJr:
Oh, for Heaven's sake!
H:
And Hull said to me -- well, he said, "I have
been assuming all along that you were going to
have that job. Meaning me, see?
HMJr:
Right.
H:
But I had a very frank talk with Jimmy about
it and told him I had thought that they had
intended to offer him the job of High Commissioner and he said, "Well, that wouldn't make
any difference because it would be, in effect,
the same kind of a job. If
HMJr:
Yeah.
H:
If he was High Commissioner, he'd have control
of the economic business and it was the type
of an administrative job that he was not going
to do.
HMJr:
Yeah.
H:
He was appreciative of the offer.
HMJr:
Yeah.
H:
Now, he would take the job of Ambassador.
HMJr:
To England?
H:
Yeah. What?
HMJr:
To England?
H:
Yeah.
HMJr:
He would?
H:
Yeah.
HMJr:
You -- you've talked to him?
32
33
-4H:
Certainly.
HMJr:
Yes.
H:
HMJr:
I wanted to -- if we're really going to move
on this
Yes.
I want to be sure that we can get home.
H:
HMJr:
Yeah.
H:
He knows nothing -- I told him I have no idea
what the President would say.
HMJr:
H:
HMJr:
H:
HMJr:
H:
HMJr:
Yes.
See? About it. But, it -- well, now, that's the
way the thing lies at this minute. Now, I have
not talked to the President, myself.
Well, when are you going to talk to him?
Well, I thought I'd try to get a chance either
right after this meeting
Yeah.
Now, you -- you're inclined to think he'll be
favorable to this?
Well, from my. discussion with him, I - I sort
of gathered he kind of liked it.
H:
Yeah.
HMJr:
See?
H:
It's the best thing I could think of; although
now you realize the situation is that Byrnes is
not going to take the job.
HMJr:
H:
Yeah, but
But the minute he doesn't take it -- uh -- you
see -- and I don't think he's told the President
yet. Well, God damn it, they '11 come up with
somebody else
34
-5-
H:
Well, the point ....
that's far worse, you see?
HMJr:
Yeah, well, the point is this, Harry: I think
H:
Well, I think that's one thing and I -- I think
HMJr:
Yeah.
H:
That Winant has done a fine job in England and
that Byrnes would do a good job.
HMJr:
Yeah.
H:
That Byrnes' -- uh -- relation to the Senate
later
HMJr:
Yeah.
HMJr:
the President right now -- his immediate interest
is to find a place for Byrnes.
he could be persuaded quite easily that Winant
could do this job.
H:
on the peace treaty would be very helpful
to him.
H:
That's right.
At some point -- and we're going to need a lot
HMJr:
I think it's a natural.
HMJr:
H:
of help.
And that we could lay this out to Winant in a
way that Winant would take it. Winant will do
whatever the President tells him
HMJr:
Yeah.
H:
it on a little thick to Winant, but I don't care
to do. Now, the President may have to lay
how thick he lays it on.
HMJr:
Well, I hope that in doing it you'll keep it in
mind that I would feel very much reassured and
I
H:
If Winant were the man?
35
-6HMJr:
Yeah. And if he would take a man like John
H:
Well, I think he'd be very reasonable about
Pehle with him
taking people.
HMJr:
Well, I think -- well ....
H:
Don't you?
HMJr:
Yes, but I think
And later -- but we can't sew that up at this
H:
moment.
HMJr:
No, but I want to keep -- to have you -- have it
in your mind.
H:
Sure. Well
HMJr:
You need a tough guy like Pehle.
H:
What I thought is that as soon as we could get
HMJr:
Yes.
this settled
then we'd proceed, sort of between us, and
H:
see if we couldn't make -- suggest three or four
different people that he'd take with him.
HMJr:
Yeah.
H:
See?
HMJr:
Because -- now, you take this Colonel Chandler
who has been over here on this handbook.
H:
Yeah.
HMJr:
H:
I don't know whether you know him or not.
Yeah. He used to be LaGuardia's ....
HMJr:
Yes.
H:
HMJr:
counsel.
Well, he was in here the other day and he was
talking to our boys about this directive
-7Yeah.
H:
HMJr:
and what Eisenhower should say and what
he shouldn't say.
H:
Yeah.
HMJr:
He said, "Well, after all, If he said, "the
German troops are disciplined. You've got to
remember that. They're not like the American
soldiers. =
H:
(Laughs)
HMJr:
Now, those are the kind of people
H:
Yeah.
HMJr:
H:
in fairly important positions who are
handling these directives.
Do you know whether -- whether Harry White
has put his mind any more on the language in
that Section H of that first -- thing the State
Department gave him?
HMJr:
That I don't know, but I've got a whole book
that I'm going to give to the President. We've
gone much, much further. And I'm giving each
of the rest of you copies, but it's just dry
now. I haven't had a chance
H:
No.
HMOr:
.... to circulate 1t.
H:
I see.
HMJr:
But this is an amazing job that the boys have
H:
Yeah. Is that the job McConnell was on?
HMJr:
Well, only in part -- small part.
H:
Yeah. I see.
HMJr:
But
H:
Yeah.
done over night here.
36
- 00 -
he -- only the small part.
HMJr:
H:
Yeah.
HMJr:
But we've got a job which the President can
H:
Uh huh.
HMJr:
....
H:
We're
HMJr:
What?
H:
HMJr:
take with him
and we've
....
How far do you think we can get today -simply an extended discussion of the other day?
Well, what I'm hoping is that the President will
turn to the four of us and say, "Will you give -concoct for me a directive which will express the
H:
Administration's policy towards Germany?"
Yeah. Yeah.
HMJr:
See?
H:
Yeah.
HMJr:
That's what I'd like to get.
H:
That's as far as we get this morning?
HMJr:
If we.got that, that would be wonderful.
H:
All right.
HMJr:
What do you think?
H:
That's all.
HMJr:
What?
H:
That's as far as I'm sure we can get.
HMJr:
Yeah.
H:
HMJr:
Uh -- I hope we can get into a little discussion
about ptition this morning.
parWell, I hope so, too.
37
-9 H:
Irrespective of that
HMJr:
Now I heard Dewey
H:
....
On its own -- on its own merits ....
HMJr:
Did you hear Dewey last night?
H:
No, but I read it this morning.
HMJr:
Well, you should have heard him.
H:
Yeah.
HMJr:
Now, the first twenty-five minutes that boy
was good.
H:
Yes.
HMJr:
Then when he got into the Washington wasteful-
ness, from then on he got straight political.
H:
Yeah.
HMJr:
But the first twenty-five minutes that boy was
good. We've got to be "gooder".
H:
Yeah. Yeah.
HMJr:
A damn sight better than he was.
H:
Oh, yes. All right.
HMJr:
What?
H:
Oh, yeah, All right.
HMJr:
And he isn't giving us much time to move.
H:
No.
HMJr:
But that's very interesting about Jimmy.
H:
Yeah. Well, now, it's, I think, it's sitting
all right if the Boss will -- will go through
with itit.and I know Hull is sitting all right
about
HMJr:
Yeah. Well, I think he will.
38
- 10 -
39
40
H:
Hull doesn't want to go over there with a
recommendation on this unless he's pretty
sure he's going to get home.
HMJr:
H:
I think it's something that the President
should offer to Jimmy himself.
he would. The President would handle
Oh,
it, but
HMJr:
But you say
H:
.... Hull ought to get in it now, see, and
HMJr:
H:
say, "I'd like to see this done. 11
Yeah. He's very funny on these things.
Yeah, he is and he's got to be handled
carefully.
HMJr:
Yeah.
H:
I don't like to have him in the position of
saying, "Well, the President picked this
fellow and hence I have nothing to do with it."
HMJr:
Yeah.
H:
You see?
HMJr:
Yeah.
H:
But I think, perhaps, we'd better not talk
about that with all these people préseht.
HMJr:
Oh, no.
H:
Unless the President brings it up and then
the thing to do is to go after it hard.
HMJr:
That's right.
H:
All right.
HMJr:
Keep me posted.
H:
Yeah. Bye.
HMJr:
I thank you.
41
1
September 9, 1944
3:30 p.m.
GERMAN PARTITION
Present: Mr. D. W. Bell
Mr. Gaston
Dr. White
Mr. McConnell
Mr. Pehle
Mrs. Klotz
H.M.JR: Well, again, I don't suppose it is necessary
for me to emphasize the confidential nature of these
discussions, but the gist of this thing is this:
I understand Hopkins brought up the question of
partition, and he seemed to be the devil's advocate for
it. Hopkins did say he had had a long talk with Jimmie
Dunn, who was against partition, and Isaiah Bowman, who
is against partition.
Then the President said he would go along with the
idea of Trusteeship for the Ruhr, the Saar, and the Kiel
Canal. The President also said he is in favor of dividing
Germany into three parts.
MR. McCONNELL: May I ask a question? Is that
Trusteeship all the way up the Rhine to the Saar?
H.M.JR: No, just the Trusteeship for the Ruhr, the
Saar, and the Kiel. Hopkins kept pressing the point
about partitioning Germany, and I frankly don't know
where he stands. Hopkins put the question to the
President, "Would it be correct to define your position
saying you agree to partition?" The President said, "Yes."
The President said, "Yes," but he is in favor of
doing it now and not waiting. Then during the discussion
Stimson said that we must get along with Russia; it was
terribly important.
42
-2The President kept looking through the book, wanting to know whether I had the part put in about uniforms
and marching. I said it was there.
This is the most significant part of all. The
President kept reading this thing, you see; this interested
him very much. The President then read aloud, "It Is
a Fallacy that Europe Needs a Strong Industrial Germany,"
and the President said, "That is the first time I have
seen anybody say that. He says, "All the economists
disagree, but I agree with that.
MR. GASTON: That is the most important thing in the
book, in my opinion.
H.M.JR: The President says, "This is the first
time I have seen this stated. Everybody seems to disagree on that point but I agree with the idea.' Then
he says--get this-- Furthermore, I agree in an agricultural
Germany. I don't see how he could come much further.
MR. PEHLE: He said that on reading the title?
H.M.JR: Yes, he got down as far as "Four." He
read this first part, and then he said, "Oh, yes, I see
you have the uniforms in Number Twelve. That is good,
that is good." Then he was crazy to read this thing.
Half the time the other people were talking he was reading this memorandum. When he read, "It Is a Fallacy that
Europe Needs a Strong Industrial Germany, he said, "I
agree, but nobody else agrees." He says, "As far as
I
am concerned, I'd put Germany back as an agricultural
country." As far as I am concerned, he doesn't have to
say any more. In other words, he has come, come, come,
all the time.
MR. BELL: What does he mean by a Trusteeship for
the Ruhr and Saar, and at the same time turn it back to
an agricultural country?
H.M.JR: The President hasn't had a chance to read
much since I gave him that original memorandum a couple
of weeks ago. He read that very carefully. He hasn't
had a chance to do much since then.
43
-3DR. WHITE: He is apt to read some of the things
in that book, don't you think?
H.M.JR: I have taken steps to see that the book
goes with him. That has been taken care of.
Now, the other part is that Hull turned to me and
said, "All I can see that is in this book is an amplification of the things you and I stand for." I said, "That
is right."
MR. GASTON: Hull said that?
MR. BELL: Hull said what?
H.M.JR: Yes. He said, "All this is just an amplification of what you and I stand for."
MRS. KLOTZ: What did Stimson say?
MR. PEHLE: That is an important remark.
so
H.M:JR: I haven't read Stimson's memorandum, so I
don't know what he said.
MR. WHITE: Well, do you want me to summarize it?
MR. GASTON: A new one?
H.M.JR: Yes.
MR. WHITE: What he says is your major point, namely,
the complete destruction of the Ruhr, and he says that he
is unalterably opposed to that and thinks it would be a
serious error to deprive the people of Europe of the
products that that area could produce. He says that you
would go even further than that, apparently; you would
extend the obliteration of industry throughout Germany, or
virtually obliteration, because the way it is phrased,
you speak not only of armament industries, but even those
industries which might be regarded as key industries.
And he said he is doubtful about partition. He has an
open mind on that. And, likewise, he is willing to agree
44
-4that the Ruhr might be internationalized, but be used
for the purpose of providing reparations and products
for the rest of Europe.
He went on to say that he thinks that some of your
demands for treatment of criminals needs to be drastically
changed; that you have to have a legal procedure which
provides that individuals can make their case and be
tried, and so forth.
But he bases the main argument on that he doesn't
agree with you that industry needs to be, and certainly
should be, greatly destroyed. He says that is unnatural.
MR. McCONNELL: He said that he agreed with you that
it should be controlled, but not destroyed.
MR. WHITE: That you could obtain the same objective
by controlling.
MR. BELL: He said one other thing, too, about the
Saar. I don't know that he said that you suggested it,
but he said that it had been suggested that the Saar be
given to France. He raised some question about that. He
said that he agreed that all Alsace-Lorraine should go
back to France, but he didn't think that France ought to
get any more territory, particularly a territory where
they control minority groups and form a basis for future
dissensions in war.
H.M.JR: I understand from the boys it is you (Bell)
who wants to give the Saar to France.
MR. BELL: No, I want to give the Ruhr and the Saar
to England, in perpetuity.
MR. PEHLE: He said France had suffered a lot from
the war.
MR. BELL: It is just the other way around.
H.M.JR: We are kidding Mr. Bell.
MR. BELL: I said I didn't see where France had con-
45
-5tributed anything in this war, and I didn't see why they
should get the Saar.
(The Secretary holds a telephone conversation with
Miss Grace Tully)
H.M.JR: Apropos of nothing, the train came in three-
quarters of an hour late. I said to the Pullman conductor,
What are you so late for?"
He said, "We stopped out in the sticks. We have only
got one conductor and we had to stop there to count noses and
pick up tickets." "
He said, "We lost money and I'm a stockholder of the
New York Central and the stock is less than I paid for it
and we are going to stop until we get it paid for."
Forty-five minutes out in the sticks they stopped to
take up the tickets.
MR. WHITE: Was the President on it?
H.M.JR: No, this was just me. This was when I came
down from Malone. The conductor couldn't get through the
train so before we got to Malone he stopped the train for
forty-five minutes to take up the tickets for fear he
wouldn't get them.
MR. BELL: He is not only a good stockholder, but a
good conductor.
JR: They gave our meeting today a much better twist
on theH.M.
ticker.
MR. WHITE: Did Stimson say anything?
H.M.JR: Sure, he took fifteen or twenty minutes at a
time trying to get over the fact that he was answering the
Treasury, and how did I know that he was going to bring in
something new. So all he was trying to do was to answer
something that went before.
46
-6Hull kept saying, "Well, we will get the President
to do something. So twice I tried to get the President to
agree that he had asked the three of us to draw up a
declaration of policy of the United States Government towards
Germany, and I couldn't get anywhere. And Hull wouldn't
back me up except nudging me like this (indicating) - "Go
on, give the President your papers. Go on, Henry.
MRS. KLOTZ: Then you were right that Stimson would
object to your bringing in these papers, but Hull didn't.
H.M.JR: Then the thing, of course, that just cooked
Stimson's goose for the rest of the time he was here, the
President said, "Has anybody talked about partition?"
So Stimson said, "Yes, Welles has; I have just been
reading his book."
Oh boy! Anything he says from now on is no good as
far as Hull is concerned. Stimson said, "I just got a
copy of his book."
Another thing that seemed to upset Stimson, Hull
said, "I sent you the economic report of the State Department on Germany. I'm waiting for an answer from you,
Colonel Stimson."
And. Stimson said, "Sir, Mr. Secretary of State, I
have not received it.
Hull answered, "Colonel Stimson, I sent it to you."
I don't know what Hull is talking about. Is there a
report of the State Department?
MR. WHITE: I don't know about it.
MR. PEHLE: That is an old mimeograph that they sent
to Winant, probably.
MR. WHITE: He may be referring to that, I don't know.
I see where the War Department is going to be busy Saturday
and Sunday trying to answer those arguments.
47
7-
H.M.JR: Well, I think that is about all. But to
me - we have gone inch by inch all week, and the fact that
the President now believes it is a fallacy that Europe needs
a strong industrial Germany--
it.
MR. WHITE: Having read the title, he is convinced of
MRS. KLOTZ: Wait until he goes into it.
MR. WHITE: He won't go into it. He stops with the
title because he agrees.
H.M.JR: What about a few maps and a few "filler-ins"
for me?
MR. WHITE: They are making some more.
H.M.JR: Could I have a complete set? I am coming to
a movie at eight o' 'clock tonight. Do you suppose it
could be here for me?
MR. WHITE: Oh, yes.
H.M.JR: With Fitz, please.
MR. WHITE: We will make up a book like the President
had, if that is what you want.
H.P.JR: I would like to take it with me on the train.
I feel pretty good.
MR. GASTON: You should.
MR.
PEHLE: He is going to the Conference in the right
frame of mind.
MR. WHITE: Stimson isn't going to be on the train, I
guess.
H.M.JR: I am only going as far as Hyde Park.
48
-8MR. WHITE: who is he taking with him?
H.M.JR: I will know tonight.
MR. GASTON: This doesn't mean you have written the
ticket, but it certainly looks like you have given a push
in that direction.
MRS. KLOTZ: Did anything happen on the appointment
to Germany, do you know?
H.M.JR: No.
did.
MR. PEHLE: Murphy saw the President just before you
H.M.JR: Yes, I know he did.
MR. BELL: The paper indicated he would go to the meeting with the President.
H.M.JR: Who?
MR. BELL: Murphy. It wasn't positive.
H.M.JR: I don't think so, because he asked to see
me Tuesday. No, I gathered it was just his military entourage; nobody else.
MR. GASTON : Leahy?
H.M.JR: Leahy, Watson, Steve Early - just his regular
military group - I suppose Admiral Brown.
Don't you feel pretty good about it, Herbert?
MR. GASTON: Yes, I do.
H.M.JR: Cheer up, McConnell.
MR. McCONNELL: You know, if you are going to include
49
-9the Saar in your international zone, it ought to go with
Lorraine.
MR. WHITE: You mean you wouldn't give Lorraine back
to France?
MR. McCONNELL: No. .
MR. WHITE: Start another war tomorrow.
MR McCONNELL: They should go together.
H.M.JR: O.K.
SECRET 7mm Stimam toF.I. R. 50
copy
for
September 9, 1944
Our discussions relate to a matter of method
entirely; our objective is the same. It is not a
question of a soft treatment of Germany or a harsh
treatment of Germany. We are all trying to devise
protection against recurrence by Germany of her
attempts to dominate the world. We differ as to
method. The fundamental remedy of Mr. Morgenthau
is to provide that the industry of Germany shall be
substantially obliterated. Although expressed only
in terms of the Ruhr, the fact of the matter is that
the Ruhr and the adjacent territories which Mr. Morgenthau
would include in his program constitute, particularly
after the amputations that are proposed, the core of
German industry. His proposition is
"the total destruction of the whole German
armament industry and the removal or destruc-
tion of other key industries which are basic
to military strength."
In speaking of the Ruhr and surrounding industrial
areas, he says:
"This area should not only be stripped of all
presently existing industries but so weakened
and controlled that it cannot in the foreseeable future become an industrial area--all
industrial plants and equipment not destroyed
SECRET
SECRET
-2-
by military action shall either be completely
dismantled or removed from the area or completely destroyed, all equipment shall be removed
from the mines and the mines shall be thoroughly
"recked."
I am unalterably opposed to such a program for
the reasons given in my memorandum dated September 5
which is already before the President. I do not think
that the reasons there stated need again be elaborated.
In substance, my point is that these resources consti-
tute a natural and necessary asset for the productivity
of Europe. In a period when the world is suffering
from destruction and from want of production, the concept
of the total obliteration of these values is to my mind
wholly wrong. My insistence is that these assets be
conserved and made available for the benefit of the
whole of Europe, including particularly Great Britain.
The internationalization of the Ruhr or the trusteeship
of its products--I am not prepared at the moment to
discuss details of method--constitutes a treatment of
the problem in accord with the needs and interests
of the world. To argue that we are incapable of sustained effort to control such wealth within proper
channels is to destroy any hope for the future of the
SECRET
51
52
-3-
world. I believe that the education furnished us by
the Germans in two world wars, plus the continuity of
interest which such a trusteeship would stimulate is
sufficient insurance that we can be trusted to deal
with the problem. The unnatural destruction of this
industry would, on the other hand, be so certain, in
my judgment, to provoke sympathy for the Germans that
we would create friends both in this country and abroad
for the Germans, whereas now most of the peoples of the
world are thoroughly antipathetic to them.
The other fundamental point upon which I feel we
differ is the matter of the trial and punishment of
those Germans who are responsible for crimes and depreda-
tions. Under the plan proposed by Mr. Morgenthau, the
so-called arch-criminals shall be put to death by the military without provision for any trial and upon more identification after apprehension. The method of dealing with
these and other criminals requires careful thought and
a well-defined procedure. Such procedure must embody,
in my judgment, at least the rudimentary aspects of
the Bill of Rights, namely, notification to the accused
of the charge, the right to be heard and, within reasonable limits, to call witnesses in his defense. I do not
53
SECRET
-4-
mean to favor the institution of state trials or to
introduce any cumbersome machinery but the very
punishment of these men in a dignified manner con-
sistent with the advance of civilization, will have
all the greater effect upon posterity. Furthermore,
it will afford the most effective way of making a
record of the Nazi system of terrorism and of the
effort of the Allies to terminate the system and prevent its recurrence.
I am disposed to believe that at least as to
the ohief Nazi officials, we should participate in an
international tribunal constituted to try them. They
should be charged with offences against the laws of
the rules of war in that they have committed wanton
and unnecessary cruelties in connection with the prose-
aution of the war. This law of the Rules of War has
been upheld by our own Supreme Court and will be the
basis of judicial action against the Nazis.
Even though these offences have not been committed
against our troops, Iffeel that our moral position is
better if we take our share in their conviction. Other
war criminals who have committed crimes in subjugated
SECRET
54
-5-
territory should be returned in accordance with the
Moseow Declaration to those territories for trial by
national military commissions having jurisdiction of
the offence under the same Rules of War. I have great
difficulty in finding any means whereby military commissions may try and convict those responsible for
excesses committed within Germany both before and during
the war which have no relation to the conduct of the
war. I would be prepared to construe broadly what con-
stituted a violation of the Rules of War but there is
a certain field in which I fear that external courts
cannot move. Such courts would be without jurisdiction
in precisely the same way that any foreign court would
be without jurisdiction to try those who were guilty of,
or condoned, lynching in our own country.
The above are the two main points with which I
differ from the proposed program submitted by the
Secretary of the Treasury.
Partition
I have an open mind on partition and although I
have given the matter substantial consideration I have,
55
-6-
as yet, come to no conclusion as to wisdom or method
of partition. I feel we cannot deal effectively with
that subject until we have had an interchange of views
with the English and the Russians. I, myself, seek
further light on this subject. I, certainly, would not
discourage any spontaneous effort toward separation of
the country into two or more groups.
Amputation
I understand that there is some general recognition
of the probability of Russia or the Poles taking East
Prussia and some parts of Silesia. I suggest that we
interpose no objection to this but that we take no part
in the administration of the area. On the Western border
the primary question is the matter of dealing with the
Ruhr but it has also been suggested that the Rhinoland
and the Saar be delivered to France. Naturally I am
in favor of the automatic return of Alsace and Lorraine
to France but though my mind is not irrevocably closed
against it, I feel that the burden of proof lies on
those who suggest giving France more territory. She
will come out of this war with her Empire practically
intact, with a reduced population and already possessing
56
SECRET
-7-
a very valuable bit of ore in the Longwy Briey area.
To give her a substantial territory of German-speaking
and German-bred people would create another problem in
the balance of Europe. To counteraot this, I would give
France a share in the benefits of the internationalization of the Saar and the Ruhr and the advantage which
this gives of what would in effect be an international
barrier between France and Germany.
There are certain other methods of punishment
affecting the personal lives of individual Germans proposed by the Secretary of the Treasury to which I am
opposed as constituting irritations of no fundamental
value and, indeed, of considerable danger, but these
are primarily matters of administration which I think
need not be discussed at this time. In some part, at
least, they had best be determined by those who have the
primary responsibility for the administration of the
occupation.
As a suggestion, I propose that during the interim
period, which is all that we can deal with at the
moment, the President be recommended to approve a program.
generally in accord with the memorandum submitted by
SECRET
SECRET
-8-
the Secretary of State at the meeting of the Cabinet
Committee on Tuesday, September 5, except for a modification of subparagraph 2(h) of that memorandum and
certain other conditions on which I hope we can all
agree, which suggested changes I append hereto.
Sir Hany h Stimum
SECRET
57
SECRET
58
Trum Shinson to F.D.C.
September 9, 1944
SUGGESTED CHANGES IN CABINET COMMITTEE RECOMMENDATIONS
AS STATED IN PAPER SEPTEMBER 4 1944.
To paragraph 2(a) should be added the following:
"At least for an indefinite period Germany shall
be denied the means or power to manufacture or design aeroplanes
or gliders of any sort whether military, commercial or private,
and Germany shall have no license to operate my airlines.
During this period no schools or courses for the study of air
flight in any form shall be permitted.
All machines, plants and other instruments which
are peculiarly adapted to the manufacture of arms and lethal
weapons of any aort shall be dismantled or destroyed."
Paragraph 2(b) should be rewritten to read BE follows:
"All members of the Gestapo, vis., the so-called
security or political police, prominent Nasis in whatever activity they may have operated, substantially if not all members
of the S.S. organizations, and others who are suspected of having
taken part in or had responsibility for the perpetration of war
crimes, should be apprehended and held for further disposition.
Prompt and summary trials shall be held of those charged with
such crimes and punishment should be swift and severe.
Studies should be instituted at once to determine
SECRET
Insert at beginning of rewige paragraph 2 (b)
"Dissolution of the Nasi Party and all its
affiliated and associated organizations should be effected
immediately and
SECRET
-2-
the procedures to be followed in such trials, and they should
be cleared with the British, Russians, and French as quickly
as possible, 80 that they can be communicated to the appropriate
occupying authorities without delay.
All laws discriminating against persons on grounds
of race, color, creed, political activity or opinion, should
be annulled."
To Paragraph (e) should be added the following:
"The territories of Germany which are to be ceded
to other countries are understood to be all or most of Fast
Prussia and some parts of Silesia. The question of the Rhineland and the Sear is closely connected with the treatment of
the Ruhr. We recommend 85 the present view of the United States
that a strong control over the products of this area must be
maintained by means of some form of international trusteeship
of its products and resources. It. should not be oblitarated
as an industrial productive center, but it must be actively
managed by others than Germans and otherwise completely taken
from German domination.
On the other hand no efforts shall be made to
rebuild any of the destroyed plants in Germany until permission
is given by appropriate Allied or United Nations authority."
SECRET
59
SECRET
Substitute for paragraph (h) the follewing:
"The primary objectives of our economic policy
are: (1) the permanent elimination of German economic domination
in Europe and (2) the conversion of German economic capacity
in such manner that it will be so dependent upon imports and
exports that Germany cannot by its own devices reconvert to
war production."
SECRET
60
61
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
TO
Secretary Morgenthau
September 9, 1944
Fred Smith Fs
Regarding Gregory's story:
I talked to him. He figured this all out himself.
He said your father was a great humanitarian, and that
you are a great humanitarian, and that you have been the
leading light in the War Refugee Board. He said that obviously,
the Jews abroad would have to have some reputation so that they
could get restitution from the Germans for what the Germans
did to them, and that this was a logical job for you to take on.
He further said that through the War Refugee Board and
Foreign Funds Control, you had a complete plan for restitution,
and this is evidence, to his way of thinking, that you are
going to undertake the job of seeing that restitution is made.
He said that with all this evidence, he was certainly
justified in assuming that he had stumbled onto a great story.
He assured me that he is a friend of yours, and that he felt
that securing restitution for these people was a job more important than being Secretary of the Treasury.
I think he has been reading too many bum detective stories.
PHILADELP? IA I' UNIFER - So tember 8, 1944
Morgenthau May Head
Allied Rescue of Jews
By NICHOLAS P. GREGORY
Inquirer Washington Bureau
WASHINGTON, 7.-Secretary of the Treasury Henry Morgenthau, Jr. may become head of a new world organization,
supported by the United Nations, designed to use its enorts to
rescue the Jews against-whom
caniza time probably will demand
economic, financial and resettle
have perpetrated some of the ment reparations.
SET UP TO AID VICTIMS
foulest crimes in history against
The War Refugee Board which
any race, It was learned today.
Mr. Morgenthau heads was estabThe Secretary conferred with
the Nazis and their satenites
President Roosevelt yesterday and
today and, It was learned, presented
to him a blueprint of the new organization Attending the confer
ence yesterday were Secretary of
War Henry L Stimson and Secretary of State Cordell Hull. who together with Mr. Morgenthau*con
stitute the War Refugee Board.
INFORMATION ON LOOTING
Preliminary work in connection
with handling war refugees already
has been undertaken and Mr. Mor:
genthau has taken the most prominent part in this field as head of the
War Refugee Board In addition
the Treasury Department has ob
tained extensive information with
regrid to the real and personal
prqjerty the Nazis have looted from
the uprooted Jews in Germany.
Hungary, Rumania Poland Greece,
Jugoslavia, Denmarl: and Holland.
Mr. Morgenthau, It is said, is de-
termined to play an important part
in a scheme to save world Jewry.
which in the last 20 years has been
under constant attack. With the
Allied armies poised on the German
borders and early occupation of Ger
many predicted the need for a new
organization to begin the rehabilitation of world Jewry becomes apparent.
TIME TO COLLECT FACTS
The defeat of Germany will re.
move the most virulent forms of
anti-Semitism, and the time. It is
felt, is ripe to begin to collect and
establish facts concerning the actual
conditions of the uprooted European
Jews, and possibly to help create
the necessary agencies for their re-
settlement.
For example more than 500.000
Jews alone have escaped to Russia
while millions have been murdered
by the Nazis and all apparent traces
of their origin, wealtn and posses.
signs have been oblite rated In man
cases the Nazis have stripped Jews
In other countries of all their personal and real wealth. The new or-
lished by executive order on Jan. 22
1944 to take all measures possible
to rescue the victima of enemy oppression who are in imminent danger of deal! and otherwise to afford
such victims all possible relief and
assistance consistent with the successful prosecution of the war
The functions of the board in-
clude the development of plans and
programs and the inauguration of
effective measures Ln rescue trans-
port maintain and aid all of the victims of enemy oppression. It is also
charged with the duty of establishing havens of temporary refuge for
such victims.
HELD POST SINCE 1934
The uprooted Jews of Europe
perhaps represent the largest ele.
ment in forced migration
Mr Morgenthau has held the
post of Secretary of the Treasury
since Jan. 1. 1934. longer than any
Secretary of the Treasury in the history of the United States
He has never been identified with
any Jewish organizations which in
recent years have been involved in
disagreements over the question of
resettling he Jews in Palestino
II he LA kes the new post MI
Morgenthalt may resign as Secretary
of the Treasury. although this IS not
certain
63
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE Sept. 9. 1944
TO
Secretary Mobgenthau
FROM
Mr. Haas
Subject Current Developments in the High-grade Security
Markets
I.
Taxable Treasury Bonds Strong; Partially
Tax-exempt Bonds Decline During August
During the month of August, and 80 far this month, taxable issues of Treasury securities have been strong. Taxable issues as a whole are at or near their highs for this
year. The Federal Reserve has had occasion, during this
period, to dispose of about $65 millions of taxable 2 per-
cents in the interest of maintaining the pattern of rates.
In con trast with the behavior of taxable issues, partially tax-exempt Treasury bonds not callable for five years
or longer (whose prices are not greatly influenced by the
approach of maturity) have declined, on the average, by
about 14/32 since the end of July, although the behavior of
individual issues has varied widely. One reason advanced
in the press for this decline of partially tax-exempts,
which hitherto have been rather strong due to their growing
scarcity, is that these issues have been pushed 80 high in
price that, for taxpayers not currently paying an excess
profits tax, the price exceeds the value of the exemption,
80 that many such taxpayers have ceased buying, and have,
in some cases, disposed of some of the partially tax-exempts
they already held. Another likely reason is apprehension on
the part of holders of these securities that the corporation
income tax may be repealed or drastically reduced after the
war, thereby wiping out or greatly curtailing the value of
the partial tax-exemption privilege.
II. Excess Reserves Decline
Excess reserves of member banks reached their peak in
the Fifth War Loan on July 12, when they stood at $1,563
millions (Chart I). From that level, they have declined
to $846 millions on September 6, the latest weekly report
date. Principal causes of this decline have been an increase of about $1,090 millions in required reserves resulting mainly from the transfer of funds from war loan to
private deposits, and an increase of about $870 millions
64
Secretary Morgenthau - 2
in money in circulation, which, following a temporary check
in July, has resumed its upward movement. Federal Reserve
purchases of Government securities offset approximately
$1,210 millions of this drain.
III. Movement of Treasury Bills to
Reserve Banks Resumed
The increase of war loan deposits against which no
reserves are required, during the Fifth War Loan, increased
the excess reserves of member banks so that they were able
to increase their investments in Treasury bills, which
reached a peak during July. Figures for all commercial
banks reporting to the Treasury Survey of Ownership of
Government Securities are shown on a month-end basis in
Chart II, and reveal commercial bank holdings continuing
upward to the end of July; but figures for weekly reporting
member banks in 101 leading cities (which hold about two-
thirds of the bills held by all commercial banks) indicate
that the peak related to the Fifth War Loan was actually
about July 19, when the weekly reporting banks held $3.9
reserves, as the proceeds of the War Loan are spent and
are redeposited as private deposits against which reserves
billions of bills. Since that date, the rise in required
are required, has resulted in a decline in the bill holdings
of weekly reporting member banks of $0.8 billion by August 30.
In the same period, the outstanding bill volume increased by
$0.6 billion. These two movements were approximately balanced by an increase in the bill holdings of the Federal
Reserve Banks by about $1.5 billions.
IV. About Half of Fifth War Loan Increase of
Security Loans Now Liquidated
From a pre-drive level of $901 millions on May 31, loans
of weekly reporting member banks, for the purpose of carrying
Government securities, increased to $2,817 millions on
July 12. This is a rise of $1,916 millions, or more than
200 percent. As of the latest report date, August 30, more
than one-half of this increase had been liquidated and loans
of weekly reporting member banks against Government securities
stood at $1,714 millions.
It is also interesting to note that practically all the
activity in bank loans in recent months has been in these
65
Secretary Morgenthau - 3
security loans. Commercial loans of weekly reporting member
banks amounted to $5,984 millions on August 30, only $138
millions above their low for the year which they reached on
May 31.
V. About 86 Percent of September Notes Exchanged
The offer, open August 24-26, to the owners of the two
issues of Treasury notes due September 15, to exchange for
them an additional issue of the 1 percent Treasury note due
March 15, 1946, was accepted by the holders of about 86 percent of the maturing issues. Details are shown in the
following table:
Amount
Amount
Percent
outstanding
exchanged
exchanged
:
Maturing issue
(In millions of dollars)
3/4 percent
taxable note
635
602
95
1 percent
tax-exempt note
283
185
65
Total
918
787
86
It was, of course, to be expected that the exchange of
a wholly tax-exempt note into a taxable note would be smaller
than that of the taxable maturity. The exchange, however,
was somewhat less than in the case of the similar transaction
in March.
The March 1946 note has behaved well in the market
during the operation. It is currently quoted at 100-5/32+
bid, as compared with 100-6/32+ bid on August 23, the day
before the exchange was announced.
66
o
Secretary Morgenthau - 4
VI. New Corporate and Municipal Financing
Revives in August; Mostly Refunding
Following the close of the Fifth War Loan, there was
a sharp rise in the volume of new bond flotations in the
New York market. During the five weeks ended September 1,
such offerings to the public amounted to $191 millions, of
which about $140 millions were corporate issues and $51 mil-
lions municipal issues. About $144 millions, or 75 percent,
of this financing, consisted of refundings and most of the
new money financing was in the municipal field.
A $65 millions offering of bonds of Armour and Company
was announced on Thursday, September 7, and some large finan-
cing operations are in prospect in the near future, including
$100 millions of bonds to be offered by the Great Northern
Railway Company, $55 millions by the Oregon-Washington
Railroad and Navigation Company, and $155 millions by Common-
wealth Edison Company. All of the issues named are refunding issues, and do not, therefore, indicate potential
interference with Treasury war finance operations. They
reflect a current ease in the money market which is favorable
to the continued success of Treasury financing operations.
VII. Corporate and Municipal Bonds at
High Levels
High-grade corporate bonds are currently quoted at
price levels close to their all-time peak. The Treasury
average of the yields of such securities, moving inversely
to prices, stood at 2.55 percent at yesterday's close, a
level attained twice before (early in 1941 and in the summer
of 1943), but not surpassed on either occasion. High-grade
municipals are now priced slightly below their all-time
highs, which were reached early in August.
CHART I
MEMBER BANK EXCESS RESERVES
1943
DEC
DOLLARS
FEB
APR
JUNE
1944
AUG
OCT
DEC
FEB
APR
JUNE
1945
AUG
OCT.
DEC
FEB
APR.
JUNE
TT
Billions
DOLLARS
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
.4
New York City Banks
o
0
-4
-4
.4
.4
Chicago Banks
o
o
.4 1111
DEC
FEB
1942
APR
JUNE
1943
AUG.
OCT
DEC.
FEB
APR
-.4
JUNE
1944
AUG
OCT.
DEC.
FEB
APR
JUNE
1945
Office of the Secretary of the Treasury
- - Relation
F-251-C
CHART II
OWNERSHIP OF TREASURY BILLS, BY TYPE OF INVESTOR
End of Month Figures
DOLLARS
Billions
6
o
A
A
0
F
D
A
1942
J
2
A
o
F
D
A
A
J
8
All Others
0
D
Commercial Banks*
1944
1943
F
DOLLARS
Billions
A
J
1945
DOLLARS
4
Billions
Total
14
2
12
o
A
A
O
D
A
F
1942
A
J
O
A
A
D
0
D
1944
1943
F
A
J
1945
10
DOLLARS
Billions
Federal Reserve Banks
8
8
6
6
4
4
2
2
o
O
J
A
1943
A
O
D
F
1942
F
A
J
D
1944
A
0
D
F
o
A
1945
J
A
A
J
A
1942
0
D
F
A
J
1943
A
o
D
F
A
J
1944
A
O
F
D
A
J
A
1945
*Banks reporting to Treasury Survey
Office of the Secretary of the Treasury
Division of Research and Statistics
F-339
69
SEP 9 1944
Dear Peter:
It was good to have your letter of September 1
and I am pleased to hear that you are so favorably
impressed with conditions as you find them. I have
heard that you and your group are getting along
very well and I am sure you will be able to make
a real contribution to the situation in ETO.
I hope you have had an opportunity to talk with
Major Brownley, the special service officer attached
to General Doolittle's staff. He has handled a bond
campaign for the Eighth Air Force with what appears
to me to be great efficiency and effectiveness.
He is, therefore, in a position to give you some
first-hand reports on the way men react to bond
promotion. I am very glad that you are having
an opportunity to see conditions at first-hand in
London and among our Forces. It is certainly
a stimulating experience and one that those of us
who have it will not soon forget.
Mrs. Morgenthau has been trying to get a few
fall days on the farm, but we shall soon be back
here and in the regular routine. She joins me in
sending warmest regards,
Sincerely,
(Signed) Henry
Mr. Peter Odegard
c/o United States Embassy
London, England
GEF/fw 9/9/44
70
September 7, 1944
Dear Peter:
I have heard that you and your group are
getting along very well, and I am sure you will
be able to make a contribution to the situation
in ETO.
I hope you have had an opportunity to talk
with Major Brownley, the special service officer
attached to General Doolittle's staff. He has
handled a bond campaign for the Eighth Air Force
with what appears to me to be great efficiency and
effectiveness. He can give you some first-hand
reports on the way men react to bond promotion.
I am glad you are having an opportunity to see
conditions at first-hand in London and among our
Forces. It is excellent experience.
Mrs. Morgenthau sends her best regards.
Sincerely,
Mr. Peter Odegard
c/o United States Embassy
London, England
FS:mlf
FS
71
PORVICTORY
TREASURY DEPARTMENT
BUY
WAR
WASHINGTON 25
LONDON
AIR MAIL
September 1, 1944
AIR POUCH
Dear Mr. Secretary:
We have been on your trail and the fact that you
were here before us has helped immensely. The men in the
Eighth Air Force were particularly enthusiastic and expressed regret only that you could not stay longer. We have
been working with and through General Cobbs' staff and hope
within the next few weeks to have a fairly good understanding of the situation in ETO. We have hesitated to make any
recommendations or any formal report until we are sure of
our position. From what we have seen thus far, however, I
am persuaded that we can be of considerable help.
It has been a privilege to come here and see conditions
at first hand, and we are grateful to you for the opportunity.
Please give my best to Mrs. Morgenthau.
Sincerely yours,
Peters H. Odeyand
Peter H. Odegard
Hon. Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D. C.
72
SEP 9 1944
My dear Mr. Mayor:
On my return to Washington after a brief absence
I have read with great care your letter of August 29
in which you refer to Mr. Olrich's testimony of the
previous day before a Congressional committee, and I
have of course made appropriate inquiries.
It is apparent that in writing your letter you
had available only inadequate reports from the morning
papers and did not have before you the information
which Mr. Olrich presented to the committee. I am
sending you a stenographic transcript of his testimony
and I think you will find that it was limited to a
purely factual account of the results of an investigation of statements you made on August 22 before the
Senate War Investigating Committee. If there is any
error in his statements I know that he would appreciate,
as I would, being informed about it.
There may of course be flaws in our pricing policy,
but I feel sure that there is no warrant for the belief
which you seem to consider credible that a plan is being followed of high catalogue pricing for the purpose
"of discouraging sales to legitimate purchasers, then
dumping to speculators." Our records certainly do not
support any such suspicion, for they show a rather
close correspondence between catalogue prices and actual
sales.
I realize that in your Congressional appearance you
were interested principally in advocating preferential
treatment to state and local governments in the acquisition of surplus war materials. The controlling policy
in that regard will, as you know, be settled shortly by
Congress as a part of the surplus property legislation
which is now in conference. I am asking Mr. Olrich,
73
-2as soon as we know what legislation we will have, to
discuss the problem with your representatives in an
attempt to have a little better understanding in the
future as to our respective needs and objectives.
Moreover, Mr. Clayton, who presently directs all
policies as to surplus property disposal, will doubtless be interested in gaining the benefit of your
views.
to him. I am therefore sending a copy of this letter
Sincerely yours,
(signed)
M
Morgenthan, J7.
Secretary of the Treasury.
The Honorable Fiorello H. LaGuardia
Mayor of the City of New York
New York, New York
TJL
HEG/mah
CITY OF NEW YORK
OFFICE OF THE MAYOR
NEW YORK 7. N.Y
August 29, 1944
Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. C.
My dear Mr. Secretary:
According to the press this morning, carrying testimony
of a Mr. Olrich, representing your department, I think you should know that
his facts were inaccurate and his conclusions erroneous. I will ignore entirely his characterization which is typical of anyone having something to hide.
Why did Mr. Olrich refrain from giving the Committee more
information concerning the Knickerbocker Building and Mortgage Company? Why
did he not discuss Friedhoff and Grossmon? His defense was an attack on the
Mayor who was called before the Committee and who testified in the public
interest.
It seems to me that the Treasury Department should be
aiding reputable denlers and agencies of government and incidentally our own
police department in checking sales and methods of purchasing surplus supplies,
instead of resorting to abuse, misstatements and misrepresentations to Gloss
over a very bad situation.
I know how busy you are but I deem it necessary in the
public interest that a check be conde in your own department as to the methods
employed, the destination of supplies and the business stending and character
of individuals who seemingly have an "in" with agencies disposing of surplus
supplies.
How is it possible for a concern, not usually engaged in
merchandising, to have samples when the treasury representative says that the
article has not yet been released? Yet a definite offer was made end samples
exhibited and delivered.
Two hundred thousand cases of milk were offered for sale.
What does Mr. Olrich do with that. He simply Closses over it and says that the
milk was sold for manufacturing purpose and "not for human consumption."
This quote is taken verbatim from a quotation in the press. If this milk was not
intended for human consumption then how is it that the government did not take
the necessary preomition that it would not be peddled for human consumption.
Will Mr. Olrich testify that this milk did not find its way into ice cream? I can
assure you, 12. Secretary, it did not in lieu York City for we nipped it. We exposed the culprit. Instend of abusing the linvor why did Mr. Olrich not devote
a little time to trace the milk and escertain if it was actually sold and used for
hwaan consumption. Incidentally the milk was probably sold by the Wer Food
Administration, but it seems Mr. Olrich was not aware of that.
Cataloguing of surplus. supplies by the Treasury Department,
think you should know, is so presented as to discourage legitimate purchasers;
I
the plan being, I on informed, to roll un C record of refusals and establish a
record of inability to sell and then to sell at junk value. This gives the boys
on the inside an opportunity to writ and then make a killing.
For instance on August 1st, 1944 your catalogue lists, under
Class 38 TO new Addressograph Multigraph Michine, Model 904 B, 110-V,DC, at a price
of $174.68, F.O.B. shipping point. The Addressograph Company offers the same
machine delivered at the same price, with one year gueranty, with choice of either
DC or AC no recuired.
Then there is the April 15, 1944 offer of Automobile Wnx London
Coach, "Thiz" (Groun 18) nt 66 cents a pound, F.O.B. shipping point, while the
same may be purchased from the nonufacturer, R. M. Hollingshead, at 48 cents a
pound delivered. This wax and other articles will eventually be sold as junk after
a record is piled up of inability to sell to the legitimate trade.
I now submit a list of items offered by your Department with
prices at shipping point with a comparison of market prices delivered. This is
not at nll accidental. It is in keeping with the plan I have indicated of discouraging sales to legitimate purchasers, hen dumping to speculators on the theory
that no market was available. Here is the list:
Treasury Catalog of Available Property
Region No. 2, July 1. 1944
Class
14
Description
Toilet Tissue
Rolls
25
Pa.
Unit
hundred
Treasury
Unit Price
n.y.city
Dept. of
Purchase Unit Price,
$ 5.24
$ 4.73
.25
18
6.55
5.25
Clips, cable,
1.11 U-Shape
25
Shipping
Point
N.Y.
each
Pa.
keg
Nails, Flooring
Cut 8D
-319
26
27
Description
Insulators,
porcelain pin
5000 V. 14 thread
Shipping
Point
Unit
Treasury
Unit Price
Dept. of Purchase
Unit Price
Pa.
each
.15
.1452
Glass, Clear
Pa,
each
.07
.6899
Bases, Porcelain
Cut-out Plug
Pa.
each
.58
.55
Pa.
each
each
each
.34
.55
.3149
.5117
.8266
each
each
each
1.68
3.50
3.50
1.57
3.28
3.28
.69
.06
.81
.64
.05
.76
Insulators, Hemingway No. 19,
32
32
Electrolets
1⑉ Killark, OUB-1
1" Killark, HOUB-3
11" threaded
Killark HOUB-4
2n Killark OLT-6
as" Killark OLI-7
24" Killark OIR-7
32
65
66
pa.
Pa,
Pa.
Mogul base, 6000 watt
Pa.
each
each
each
Kercury in ironpipe
vials
Pa.
1b.
.88
Pa.
2.16
2.05 (U.S.P.)
Polish, stove,
N.J.
each
N.J.
each
2.06 (used)
2.98 (new)
N.Y.
dozen
2.76
2.65
N.J.
each
.05 (2) oz.can) .06 (6 oz.bot
Colanders, Retinned,
Chinaware, soup
plate, white, 9"
51
Pa.
G.E. service, clear,
floodlight, 250 watt
Inside frost, 15 watt
161"
77
Pa.
Lamps
Black Beauty
75
Pa.
Pots, sauce, 25 gal.
etc.
(The catalog de-
scription is the
same as L. & G. No.
72 which is the
standard one bought
by the Dept. of Purchase)
41.06 (used)
15.90 (new)
BS
14
Shipping
Point
Description
Lens tissue
Treasury
Unit
Unit Price
.06
.04
each
N.Y.
Dept. of Purchase
Unit Price
(Treasury charges .04 for books of 25 sheets, 32" x 51".
Department of Purchase pays .06 for books of 50 sheets, 4" 3 6".)
41
Tubes
X-ray, Coolidge
Universal broad
focus, 7"
X-ray, Coolidge,
N.J.
each
61.88 (used) 80.00 (new)
N.J.
each
61.88 (used) 80.00 (new)
Universal fine
focus
(The Treasury description is unclear. It apparently relates to bulb-type tubes on
which the trade-in allowance for used tubes is $15. Used x-ray tubes seldom
give long service.)
Treasury Catalog of Available Property
Region No. 2. August 1. 1944
Class
Description
Shipping
Point
Boards, Arch
(Clip Board)
79
Unit
Treasury
Unit Price
Dept. of Purchase
Unit Price
Pa.
each
.36 (used)
.275 (new)
Pa.
each
.18
.145
Pa.
each
.18
.1575
.18
.18
.145
.145
Ribbons
Typewriter-BlueRemington
Typewriter-BlueRecord
Noiseless-Medium
38.
Inked-L.C.Smith
Pa.
each
Underwood
Pa.
each
Diotaphone
Model A12
N.Y.
each
105.88 (used)
192.50
(new)
(The Department of Purchase can buy rebuilt machines, delivered, with a one-year
guarantee, for approximately $125.)
(Millivoltmeters are offered by the Treasury at $84. each while anyone oan buy
the same meter from Weston Electrical Instrument Corporation, according to their
catalogue 12 A, page 50g for $20. each.)
72
Cards, guide, daily
1 to 31, 5 X 8", buff,
1/5 out
Pa.
(Dept. of Purchase cards are 143 1b. index bristol,
the heaviest index bristol cards manufactured.)
set
.49
.28
-5-
Now, Mr. Secretary, I know that the whole list above cited
is but an infinitesimal part of a fraction of one percent of what is now
declared surplus. It indicates however, how, from the method now employed
abuses running into renl Big figures will be possible leter, unless this
method is immediately changed and the individuals with whom the government
does business more carefully scrutinized,
I could go on indefinitely, and I will be very happy to go
through all of your catalogues for similar comparisons, if that should be
necessary, in order to convince you that the gentleman testifying before
the House Committee yesterdey was obviously, knowingly inaccurate as
well as to demonstrate the unbusinesslike and destructive policy now being
operated in the sale of surplus supplies.
There is no doubt in my mind that you do not countenance such
practise and I feel very free to say that the quicker this condition is
corrected the better it will be.
Very truly yours,
Mayor
Treasury Department
79
Division of Monetary Research
Date September 9 1914
To:
From:
Secretary Morgenthau,
Mr. White
You will be interested in
reading Mr. Montoulieu's letter.
80
SEP 9 1944
My dear Mr. Presidents
In accordance with your request of September 4,
1944, I am enclosing a proposed reply for your signa-
ture to the letter of Mr. Montoulieu dated August 24,
1944.
Mr. Montouliou's letter is returned herewith.
Faithfully yours,
(Signed) W. Morgenthaw. Jr.
Secretary of the Treasury.
The President,
The White House.
Enclosures.
EMBalr 9/8/44
Ret to@m5323
81
by dear Mr. Minister,
I am glad to have your letter of August 24, 1944, on
these matters which are of so much interest to -
I wish it had been possible for no to be present at
the Harvard Club of Boston to join with you and the others
in colebrating the fortieth reunion of the Class of 1904.
Pressure of public business, as you understand, made it
impossible this time. when the war is over, I hope I shall
have the pleasure of participating again in the reunions
of our college class.
It is gratifying to hear from you about the success
of the United Nations Monstary and Financial Conference and
your view of the importance of the International Monstary
Fund and the International Bank for Reconstruction and
Development. The United Nations have shown at Bretton
Woods that they are determined to work together for peace
and prospority as they now fight together for freedom and
demoracy.
Secretary Morganthau has informed ISS of the splendid
spirit of cooperation that - manifested throughout the
Conference. He has apoltan of the excellent work of the
representatives of the American Republics, and particularly
of the delegations of Cube, Mexico and Brasil. I have faith
that this same spirit of cooperation will bring an era of
peace and prosperity to all countries, great and small.
Sincerely yours,
Honorable Eduardo I. Montouliou,
Regublica de Cuba,
Conision de Forento Nacional,
Havans, Cuba.
82
Mr what
THE WHITE HOUSE
WASHINGTON
September 4, 1944.
MEMORANDUM FOR
THE SECRETARY OF THE TREASURY
FOR PREPARATION OF REPLY
FOR MY SIGNATURE.
F. D. R.
REPUBLICA DE CUBA
COMISION DE FOMENTO NACIONAL
Havana, August 24, 1944.
My dear Mr. President:
After attending the forty-year reunion of our
Class of 1904 at Harvard, and listening to your very cordial message as read by Eddy Taft at the dinner in the
Boston Harvard Club, I went to Bretton Woods as Chairman
of the Cuban Delegation for the International Monetary
Conference, in my capacity of Minister of the Treasury of
Cuba.
It was my priviledge and pleasure to cooperate
with the American Delegation at every opportunity that arose
and I feel confident that in its very important and lengthy
deliberations the Conference accomplished the unbelievable,
that is, the unanimous approval by the representatives of
forty four nations of a set of rules and regulations which,
when observed, will stabilize the currencies of the world
and will make possible the reconstruction of devastated
countries and the development of the productive resources
of underpriviledged countries.
By a mere coincidence, it was the Cuban Delega-
tion that opened the Conference with the report on credentials
and, also, the nation that closed its sesions by supporting
the motion of thanks proposed by the Delegation from Brazil,
and it was on this occasion that I had the opportunity to
state that it was only your prestige that could work the miracle of making unanimous the agreement on the deliberations
of these forty four nations on such difficult and technical
matters.
May I not add a word of congratulation on this
momentous occasion in which, besides the triunphal advance
of the Allied Troops in all fronts, the United and Associated Nations signed this agreement, and your political party
nominates you to again rule the destinies of the United
States and, withal, inspire and guide those of the world?
Very sincerely and cordially yours,
E
Eduardo I. Montoulieu
Harvard, 1904
The Honorable Franklin D. Roosevelt
President of the United States
The White House
Washington, D. C.
EIM/fhs.
84
FOREIGN ECONOMIC ADMINISTRATION
WASHINGTON
September 9, 1944
Dear Secretary Morgenthau:
Thank you very much for your letter
of September 8 on the question of informing the
public on the Fund and the Bank.
I will be glad to talk to Harry White
some more along the lines indicated in my letter
of July 26.
Sincerely yours,
Oscar lox
The Honorable Henry Morgenthau, Jr.
The Secretary of the Treasury.
85
Treasury Department
Division of Monetary Research
Date 9/11/44
To:
19
Mrs. McHugh
Handed to the Secretary by
Dr. Kung at 3:15, Sept. 9th.
Mr. White wanted this returned
to you; we have copies.
L. Shanahan
MR. WHITE
Branch 2058 - Room 214)
TO: 3:15
86
A J. Kung
T. L. soong
hiu Chi. minister
Plenipotentiary
Counseln of Embary
C.T. Chi asst to
Dr. Kung
From: Mr. FitzGerald
87
MINISTRY OF FINANCE
NATIONAL GOVERNMENT OF CHINA
September 9, 1944.
The Honorable Henry Morgenthau
Secretary of the Treasury
Washington, D.C.
Dear Mr. Morgenthau
Since our conversations at Bretton Woods, additional
information was received from China substantiating the fact
that the cost of the construction of the Chengtu airfields was
always regarded as constituting a separate account, which the
United States Government undertook to pay. In a memorandim,
No. 111, dated January 8, 1944, General Hearn referred to a
reply from General Marshall to his inquiry which stated that
"The United States will bear the cost of labor and material
for Chengtu airdrome construction at a rate of exchange to be
arrived at under negotiation now.in.progress." On January 12,
General Stillwell transmitted to Generalissimo Chiang a telegraphic
message from President Roosevelt with reference to the Chengtu
airfields, part of which reads: "I'll undertake to make available
the necessary fund through lend-lease appropriation if that will
hasten the completion of the work on the desired schedule."
The difficulty that has prevented a settlement of the
problem of regular military expenses as well as special accounts
for airfields constructions of the U.S. armed forces in China is
88
MINISTRY OF FINANCE
NATIONAL GOVERNMENT OF CHINA
PAGE 2
the rate of conversion. Some of the advances were made by
the Chinese Government and others were borrowed from the
Central Bank of China. Since we cannot alter our exchange
rate at present without weakening confidence in our currency
and boosting up prices further, we have been trying to find
other ways of settling the problem.
After considering various alternatives, it appears
that the simplest way of settling the problem is for the
United States Government to reimburse China according to
the official rate of exchange and receive in addition a
pro rata contribution from the Chinese Government the exact
amount of which to be agreed upon by the two governments.
Since my Government desires that I return soon to China and
since one of the purposes of my trip here is to settle this
problem with you personally, I will deeply appreciate it if
a settlement can be made at the earliest possible moment.
With best personal regards,
Sincerely yours,
PET
89
SEP 9 1944
My dear Mr. President:
There is attached a report of Lend-Lease
purchases made by the Treasury Procurement
Division for the Soviet government indicating
the availability of cargo for September.
The inventory of material in storage as
of September 1, 1944, was 204,356 tons OF
3,758 tons less than the August 1st inventory.
Production scheduled for September shows an
increase of 44,628 tons as compared with
August.
Faithfully yours,
(Signed) H Morgenthan. Jr.
The President
The White House
WFBrennan/jj
(9-8-44)
TREASURY DEPARTMENT - U. S. S. R.
MATERIALS AVAILABLE FROM STU RACE AND PRODUCTION DURING SEPTEMBER 1944
(IN 2000 LB. TONS)
PRIORITY CARGOFS
FOR PORT AREAS
STORAGE
COMMODITY
PRODUCTION
SPECIFIED TO DATE
SEPTEMBER 2, 1944 DURING SEPTEMBER TOTAL AVAILABLE
ALUMINUM
4,199
AUTOMOTIVE EQUIPMENT
AND PARTS
BEARINGS
334
BRASS AND BRONZE
CHEMICALS
CLOTHING AND T'XTILES
CONSTRUCTION MACHINERY
COPPER IN VARIOUS FORMS
FERRO-ALLOY
GRAPHITE PRODUCTS
HAND AND CUTTING TOOLS
INDUSTRIAL MACHINERY
LEAD AND LEAD ALLOYS
NICKEL AND NICKEL PRODUCTS
NON-FERROUS METALS, OTHER
NON-MFTALLIC MINERALS
PAPER AND PAPER PRODUCTS
PLASTICS
RUBBER
STEEL, ALLOY AND SPECIAL
STEEL, CARBON
STEEL, PIPE AND TUBING
STEEL, RAILS
TIN PLATE
ZINC
16,733
12,168
17,014
1,179
5,378
86
86
673
1,007
16,736
12,954
3
786
399
399
441
441
6,727
23,741
203
1,007
16,736
8,588
8,680
435
1,291
34,830
13
1,291
83,905
36,310*
13
53
784
837
165
247
412
112
35
35
35
2,694
4,424
2,941
8,108
14,427
99,706
44,442
13,810
5,854
2,184
1,730
2,941
1,625
7,319
30,659
40,231
13,581
5,854
6,483
7,108
69,047
4,211
229
24
TOTAL
829
203
435
49,075
FOR SEPTEMBER
204,356
137,253
4,816
14,427
27,720
1,556
13,810
3,696
24
24
341,609
141,030
*In addition, all available tonnage applicable to the Oil Refinery Program is classed as priority
cargo for prompt shipment to ports.
91
25
September 9, 1944.
Ny dear General Wesson:
The Secretary has asked - to saknov1edge your memorandum of September 5, which
encloses the peoplet entitled, #Status of
the Seviet A14 Program's
- No is very glad to have the facts and
figures contained in the leaflet, and appreetates year sending it to him.
Sincerely yours,
Signed H. S Kint.
H. S. Klets,
Private Secretary.
Major General C. M. Wesson,
Director, Division for Service Supply,
Foreign Neonomic Administration,
Washington 25, D. 0.
GEF/dbs
92
FOREIGN ECONOMIC ADMINISTRATION
WASHINGTON 25, D. C.
September 5, 1944
MEMORANDUM
To:
The Honorable Henry Morgenthau
From:
Maj. Gen. C. M. Wesson Cnew
Director, Division for Soviet Supply
Subject:
Status of the Soviet Aid Program
Attached hereto is your copy of the Status of
the Soviet Aid Program as of June 31, 1944. This
report sets forth the performance of the United States
in fulfilling its obligations under the Third Soviet
Protocol and summarizes the aid furnished the U.S.S.R.
during the period of the three Protocols, October 1,
1941 to date.
93
SECRET
Copy TRA
STATUS OF THE SOVIET AID PROGRAM
AS OF JUNE 30, 1944
Prepared for the President's Soviet Protocol Committee
by the Foreign Economic Administration
August 30, 1944
SECRET
STATUS OF THE SOVIET AID PROGRAM
THIRD PROTOCOL PERFORMANCE
The Third Soviet Protocol which went into effect on July 1, 1943 terminated on June 30,
1944. During the twelve month period the United States exceeded its shipping commitment by
aiding in the shipment from North America to the U.S.S.R. of 5,899,000 long tons of cargo,
1,346,000 long tons or 30 percent in excess of protocol promises and 57 percent of the total
cargo shipped under the first three protocols, October 1, 1941 to date.
In nearly all instances U. S. commitments to make supplies available for shipment were
met in full. In some instances the increase in shipping allowed increases in production be-
yond the quantities promised.
Stocks on hand on June 30, 1944 amounted to approximately 815,000 long tons of cargo
as compared with stocks estimated at 1,100,000 long tons on June 30, 1943.
Cargo shipped during the Third Protocol period and during the month of June 1944 is
summarized as follows:
July 1, 1943 to
June 1944
Long Tons
June 30, 1944
Percent
Long Tons
Percent
U. S. SUPPLIES
Trucks and Other Vehicles
Metals
Chemicals and Explosives
Potroleum Products *
Machinery and Equipment
Food
Other U. S.
U.S. TOTAL
BRITISH AND CANADIAN SUPPLIES
TOTAL
*
64,100
122,600
27,800
88,100
60,500
81,800
43,200
12
679,100
12
23
1,009,500
17
5
16
11
15
8
441,500
606,900
488,300
10
1,734,000
29
602,400
10
94
488,100
90
5,561,700
55,400
10
337,500
543,500
100
5,899,200
8
8
6
100
Includes clearance through the Persian Corridor of 21,000 long tons in June and
153,500 long tons July 1943 through June 1944 of Petroleum Products supplied by
the U.K. at Abadan and replaced to U.K. areas by the U.S.
Noteworthy among the individual items shipped during the Third Protocol were: 5,763
Aircraft, 1,758 Medium Tanks, 4,137 Other Combat Vehicles, 1,138 Ordnance Service Trucks,
143,065 Cargo Trucks including 21,012 Jeeps, 12,716 Motorcycles, 2,610 Artillery Tractors,
162,069 tons of Explosives exclusive of Ammunition, 339 Locomotives, 1,640 Flat Cars, 3,213
Marine Engines, 1,760,750 short tons of Foodstuffs, $442,445,000 of Machinery and Equipment,
85,236 short tons of Aluminum, 142,718 short tons of copper and its basic products, 784,254
short tons of Steel and 302,981 short tons of Chemicals.
of the 5,763 U.S. manufactured Aircraft sent to the U.S.S.R. during the period 3,233
were flown from Fairbanks, Alaska, 306 were shipped by water to North Russia, 1,732 were
shipped by water to the Persian Gulf for assembly at Abadan, 463 left Miami for flight-
delivery via North Africa and Abadan and 29 were Navy Patrol Bombers flown from the U.S.
by Soviet crews. Of the total departed 1,732 were in fulfillment of U.K. Protocol commit-
ments.
Aid to the U.S.S.R. continues without interruption in accordance with schedules formulated for a proposed Fourth Protocol to run from July 1, 1944 to June 30, 1945.
0-3323
SECRET
Sheet 2
PERFORMANCE UNDER THE FIRST THREE PROTOCOLS
OCTOBER I, 1941 TO JUNE 30, 1944
From the beginning of the Moscow (First) Protocol period October 1, 1941 to the end of
the Third Protocol period a total of 10,386,000 long tons of cargo have been shipped from
North America to the U.S.S.R.
First Protocol
Second Protocol
Third Protocol
Total
1,564,000
2,923,000
5,899,000
10,386,000
Over 90 percent of the cargo shipped was comprised of supplies made available by the
U.S. in fulfillment of its Protocol obligations.
Notable among the individual items shipped during the period of the three Protocols
were: 10,890 Aircraft, 4,986 Tanks, 5,382 Combat Vehicles, 1,518 Ordnance Service Vehicles,
279,951 Cargo Trucks including 43,462 Jeeps, 24,116 Motorcycles, 4,503 Artillery Tractors,
246,020 tons of Explosives exclusive of Ammunition, 339 Locomotives, 1,640 Flat Cars, 4,800
Marine Engines, 3,079,689 short tons of Foodstuffs, $655,589,000 worth of Machinery and
Equipment, 294,000 short tons of Copper and its basic products, 155,761 short tons of Aluminum, 1,694,978 short tons of Steel and 460,411 short tons of Chemicals.
Of the 10,890 U.S. manufactured Aircraft shipped, 4,307 were flown from Fairbanks,
Alaska, 1,483 were shipped by water to North Russia, 4,036 were shipped by water to the
Persian Gulf for assembly at Abadan, 1,035 left Miami for flight-delivery via North Africa
and Abadan and 29 Navy Patrol Bombers were flown from the U.S. by Soviet crows. of the
total departed, 2,727 were in fulfillment of U.K. Protocol commitments and 176 were for reimbursement to U.K. account for planes diverted to U.S. Forces.
Foreign Economic Administration
AUGUST 30, 1944
0-8888
SHIPMENTS TO U.S. S. R.
(FIGURES SHOW GROSS LONG TONS SHIPPED TO JUNE 30,1944)
213,000
2,240,000
Ve
4,235,000
Status of Total Shipments
As of June 30, 1944
Route
W
North Russia
Persian Gulf
Soviet Far East
Soviet Aretic
Total
Shipped Arrived En Route Lost
100.00
100.0
100.0
100.0
100.0
83.5%
3.5%
13.0%
85.4
92.6
86.8
10.2
4.4
6.8
0.6
13.2
0.0
86.0
7.4
4.5
3,698,000
Represents quantities diverted to U.K.
NOTE: SHIPMENTS TO THE PERSIAN GULF ARE MADE BY SEVERAL ROUTES. THE TONNAGE SHOWN IS THE TOTAL FOR ALL ROUTES.
-
SECRET
SHIPMENTS TO U. S.S.R.
SHIPMENTS, ARRIVALS AND LOSSES
10
10
LOST
EN ROUTE
8
8
OF
6
6
EXPORTED
4
4
2
2
ARRIVED
o
o
Jul
1944
1943
1942
1941
NUMBER OF SHIPS
SAILING EACH MONTH
THIRD PROTOCOL CLEARANCES
FROM U.S. PORTS
100
6
5
80
ACTUAL
4
60
3
40
PROTOCOL RATE
2
20
o
o
Jul
1943
1942
e
Foreign Economic Administration
1944
s
194 s
And
1943
1944
SECRET
EXPORTS AND AVAILABILITY OF SELECTED ITEMS
CUMULATIVE SINCE OCTOBER I, 1941
Exported
Lost
Quantity made available of
U.S. centers of production
P
P
P
En Route
Arrived
PURSUIT PLANES
BOMBERS
(FOR U.S. PROTOCOL ACCOUNT
5,000
4,000
4,000
3,000
3,000
2,000
2,000
1,000
1,000
0
0
1942
1944
1943
1942
1944
1943
ANTIAIRCRAFT GUNS 37 8 40 mm
MEDIUM TANKS
6,000
4,000
5,000
3,000
4,000
3,000
2,000
2,000
1,000
1943
1942
1942
1944
1943
1,000
1944
TRUCKS (EXCLUDING JEEPS)
JEEPS
50,000
250,000
40,000
200,000
30,000
150,000
20,000
100,000
50,000
10,000
o
1943
1
1942
Foreign Economic Administration
1944
1942
1943
944
SECRET
EXPORTS AND AVAILABILITY OF SELECTED ITEMS
CUMULATIVE SINCE OCTOBER I, 1941
Exported
Lost
Quantity mode available of
U.S. centers of production
En Route
Arrived
ARMY BOOTS
FIELD TELEPHONES
400
10
8
300
PR
6
4
100
2
0
o
P
1
1942
200
1944
1943
1942
STEEL AND STEEL PRODUCTS
1943
1944
ALUMINUM AND DURALUMINUM
2,000
200
1,500
150
Cumulative to June 30,1944 (Short Tone)
Total Production for U.S.S.R 2,070,535
Released for Redistribution
78,807
1,694,978
96,750
OF
1,000
100
500
50
1944
1942
CHEMICALS AND EXPLOSIVES
800
3,200
600
2,400
200
FRONS
o
1943
-
Foreign Economic Administration
1944
1944
FOODS
400
1942
1943
PR
1942
1943
1944
TONS
OF
1,600
800
0
1943
1942
TONS
o
Balance Avoidable for Export
0
Exported to U.S.S.R
SECRET
PROGRESS OF INDUSTRIAL PROJECTS FOR THE U.S.S.R.
As of June 30, 1944
TIRE PLANT This $10,000,000 project, approved for procurement in November 1942, was designed to permit the
production of a minisus of 1,000,000 military tires a year from U.S.S.R. supplies of synthetic
rubber and natural rubber obtained from shrube. To utilise idle American equipment, the tire plant of the
Ford Motor Company was purchased. The basic elements of the Ford plant have been supplemented with new
equipment necessary to complete the production cycle for large size military tires. A power plant to supply
the necessary steem and electrical power has been supplied at a cost of $1,204,000.
Tire production equipment valued at approximately $8,500,000 has been made available by suppliers, of
which approximately $7,255,000 has been exported.
PETROLEUM REFINERY PROJECT This project, approved in September 1942, was developed to replace Soviet re-
fining facilities destroyed by the German Army. It was designed to produce
aviation gas, motor gas, and lubricating oils. The entire project is valued at $39,600,000, nearly all of
which has been exported. Nineteen U.S. engineers are now in the U.S.S.R. aiding in construction. Additional equipment is being supplied as requested by the engineers.
Orders have gone forward for additions to supplement the facilities already supplied. This additional
equipment, approved in April 1944, is valued at $27,140,000. Contracts for the additions have been placed
and fabrication has begun.
R.R. BLOCK SIGNAL SYSTEM This project, approved in January 1943, is to permit automatic signal operation
of a portion of the U.S.S.R. railroad system. When installed it will increase
the carrying capacity of existing rail facilities without increase of rolling stock. The system, valued at
$10,961,000, will provide signal and signal operating equipment for 3,000 Kn of track. Equipment valued at
$6,464,000 has been made ready for shipment of which $2,415,000 has been exported.
In addition, 42 power plants of 40 KW each, all valued at $434,000, have been furnished to provide the
necessary electricity to operate the system. Most of the power plants have been exported.
POWER PROGRAM Under the Second Protocol program 320,000 KW of stationary steam generating equipment has
been made available. This includes nine units with a total capacity of 40,500 KW furnished
with the petroleum refinery project, and two units totalling 11,000 KW furnished with the tire plant. The
remaining units of the Second Protocol program totalling 268,500 KN are rated from 250 KW to 35,000 KW and
are for installation as power utility plants. Over 90% of this equipment has been exported.
Diesel generating equipment totalling 162,000 KW and 59 industrial steam boilers have been made available for export.
Power equipment approved under the Third Protocol is now being made available. The program consists
of generating equipment as follows:
Stationary Steam Generating Equipment
Mobile Steam Generating Equipment
Stationary Diesel Generating Equipment
166,500 KW
217,000 KW
106,925 KW
Mobile Diesel Generating Equipment 32,000 KW
Rydro-Electric Equipment
68,150 KW
Total
590,575 KW
Thirty-two industrial steam boilers and transmission equipment valued at $5,000,000 are also being
supplied.
ROLLING MILLS An aluminum rolling mill to supply aluminum sheet for the U.S.S.R. aircraft industry was
approved for procurement in December 1941. of the total valued at $6,377,000, equipment
valued at $6,305,000 has left manufacturers and $5,040,000 has been exported.
An 18* merchant mill valued at $3,620,000 was placed in procurement in November 1942. Equipment
valued at $2,982,000 has been made ready for shipment but none has been exported.
A pipe fabricating mill was approved in February 1943, at a cost of $1,252,000. Equipment valued at
$600,000 has been manufactured but none has been exported.
A blooming mill, rail and structural mill, and a R.R. tie plate and splice bar mill, all estimated to
cost $14,000,000, were placed in production in November 1943. None of this equipment has been made available to date.
STEEL EXPANSION PROGRAM Since December 1942, auxiliary equipment for expansion of existing U.S.S.R. steel
facilities has been approved for procurement. The equipment, when installed in
the U.S.S.R., is expected to increase Soviet production of carbon steel ingota by 2,500,000 tons a year.
To date, equipment valued at $13,300,000 has been placed in production, $3,768,000 has been made
available at suppliers and $925,000 has been exported.
Made
Wall Board Plant
11/17/42
Glass Bulb and Tubing Plant
3/17/43
4/22/43
11/27/42
5/29/42
Voltol Pilot Plant
Nitric Acid Plant
Hydrogen Gas Plant
Hydrogen & Catalyst Plants
11/9/42
Available
in U.S.
$ 537,000
$ 524,000
1,468,000
532,000
75,000
73,000
447,000
532,000
2,617,000
1,157,155
73,000
528,000
Note: Above data have been adjusted to eliminate estimated costs of
engineering and services.
Exported
73,000
394,000
67,000
0
Approved
Cost
0
Date
0
OTHER PLANTS
SECRET
STATEMENT OF VESSELS SAILED TO U.S.S.R.
As of June 30, 1944
-
-
-
-
3
-
1
-
-
1
3
1
-
1
1
-
2
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
-
1
9
95
2
1,422
1
67
-
-
-
1,642
-
753
-
9
64
1
-
76
-
-
-
4
-
27
76
-
7
-
-
49
40
43
-
59
-
60
2
52
25
-
55
2
4
5
465
-
24
-
36
51
18
-
35.
82
52
-
21
83
1
1
16
27
19
-
-
Mar
-
Feb
16
-
7
26
17**
1
-
-
30
-
4
21
-
-
8
29*
1
4
-
Dec
39
2
87
32
1
-
76
89
27
25
-
-
61
77
25
20*
8
8
-
62
10
-
2
5
-
77
20
2
-
67
77
-
-
69
1
57
38
-
24
16
2
54
-
54
57
3
-
8
5
-
-
45
-
-
62
-
54
63
-
55
44
-
37
-
44
-
1
46
1
26
Nov
360
1
6
6
36
-
9
38
58
Sep
Total Oct. 1941
to June 30, 1944
-
46
Oct
Jun
-
22
50
Apr
7
-
-
38
10
1
7
39
16
1
-
32
27
May
-
32
34
24
1944 Jan
4
32
17
Aug
6
19
6
2
6
-
6
29
19
15
4
9
-
-
29
28
7
-
4
4
17
12
18
1
33
24
23*
-
34
36
11
4
35
26
3
12
19
2
-
27
19
13
6
-
34
9
-
21
1
31
3
1
Jul
7
Jun
-
May
-
Apr
46
16
13
12
32
78
4
Dec
-
Nov
43
10
by
Month
-
Oct
19
16
in U.K.
3
Sep
Mar
11
11
24
19
15
Lost
1
Jul
Feb
-
Jun
10
22
5
14
12
25
3
May
13
-
Apr
62
14
-
31
June 30
Disch.
-
Mar
Total
Losses
Cargo
-
13
Soviet
Far East
as of
1
20
Feb
1943 Jan
Arctic
Gulf
14
1942 Jan
Aug
Soviet
10
Nov
Dec
Persian
Arrived
1
1941 Oct
North
Russia
En Route
For
-
Date of Sailing
For
For
For
-
Number of Vessels Sailing
52
73
73
Includes one tanker from U.K. for U.S. Protocol Account.
** Includes two tankers from U.K. for U.S. Protocol Account.
of the 1,642 sailings from October 1, 1941 to June 30, 1944, 781 were made by American vessels,
533 by Soviet vessels, 302 by American vessels transferred to Soviet registry, 25 by British vessels
and 1 by a Swedish vessel. In addition to the 1,566 sailings, there were 107 shipa that loaded
partial cargoes in the U.S. for the U.S.S.R. In addition to the 73 ships shown above as lost,
several ships have been sunk on their return voyages.
ACTUAL SHIPMENTS COMPARED WITH PROTOCOL SHIPPING OBJECTIVES
July 1943 June 1944
FIGURES IN LONG TONS
Protocol Objective
Shipments
Shipments in % of Objective
Atlantic
Pacific
Route
Route
2,142,852
3,310,200*
154.5%
2,410,716
2,589,000
107.4%
Total
4,553,568
5,899,200
129.5%
Includes 154,000 tons of petroleum products from Abadan for U.S.
Protocol account, the material being replaced to U.K. from the U.S.
0-3200
.
SECRET
STATEMENT OF CARGO SHIPPED TO U.S.S.R.
As of June 30, 1944
(Thousands of Gross Long Tons)
Cargoes
48
17
65
41
14
58
55
-
Dec
50
11
71
63
-
-
-
-
106
178
165
-
9
-
-
123
244
237
4
-
275
345
477
463
313
519
519
-
181
451
442
-
229
579
571
-
262
653
639
611
608
354
346
-
-
176
-
13
-
100
-
-
Jun
187
-
21
347
428
424
-
-
20
368
-
287
-
May
91
134
264
571
347
224
307
543
77
466
4,232
10,386
14
7
19
4
2,240
3,395
154*
149
213
3
to June 30, 1944
-
Total Oct. 1941
28
8,929
697
279
481
Petroleum products by rail ex Abadan for U.S. account, replaced to U.K. from U.S
DISTRIBUTION OF TONNAGE SHIPPED TO JUNE 30,1944
BY
REGISTRY OF SHIPS
Other
369,000 tons
3.6%
Soviet Ships
2,248,000 tons
21.7%
U.S. Ships
Transferred to
Soviet Registry
2,289,000 tons
22.0%
DATA ARE GROSS LONG TONS
U.S. Ships
5,480,000 tons
52.7%
22
8
15
275
3
152
Apr
14
-
1
11
14
8
4
6
8
10
14
3
345
261
8
152
32
15
9
58
16
9
110
343
9
-
Mar
350
275
7
4
114
216
229
-
-
202
127
330
-
9
-
222
Feb
337
1
1944 Jan
194
14
-
9
167
246
7
5
-
214
263
-
Dec
-
11
10
187
194
123
-
194
66
150
9
Sep
145
48
178
8
10
173
Nov
210
342
7
13
16
Aug
Oct
258
129
-
116
-
25
98
-
5
112
Jun
17
13
-
-
May
65
7
138
114
22
-
9
-
131
Apr
Jul
229
-
Mar
-
40
229
79
-
83
173
-
73
Feb
179
-
Jan
-
83
179
108
12
66
29
2
Dec
-
Nov
197
-
63
109
174
219
38
55
7
28
183
59
83
52
56
8
Sep
46
19
139
42
2
25
141
46
128
2
25
40
212
195
1
39
69
33
31
-
8
7
13
Aug
Oct
-
Jul
18
40
-
-
84
267
-
-
79
55
163
435
-
92
Jun
214
-
4
May
25
38
16
15
2
1
-
-
21
-
17
376
76
-
171
Apr
72
-
Mar
89
91
9
1
-
-
20
7
-
-
26
5
3
63
66
-
Feb
10
62
5
Cargoes
by
Month
in U.K.
1
Abadan
June 30
Losses
9
Cargoes
Partial
Full
Cargo on
Hand or
Diverted Lost
8
From
Total Arrived
as of
NOV
1942 Jan
1943
Arctic
Partial
En Route
3
Full
Fat East
3
Soviet
Cargoes
1941 Oct
For Soviet
For
3
For Persian Gulf
For
North
Russia
18
481
SECRET
AIRCRAFT DELIVERIES TO U.S.S.R.
October 1941 to June 30. 1944
Protocol requirements are filled upon delivery of aircraft from factories.
Departure points from North America are: U.S. ports for water shipments, Fairbanks for flight-deliveries via the Alaskan Sibertan Ferry Route,
and Miami, Florida or adjacent fields for flight-deliveries via the South Atlantic. Planes shipped by water to North Russia are considered
delivered upon arrival at Murmanak or Archangel. Planes shipped by water to the Persian Gulf are assembled at Abadan and with planes arriving
there over the South Atlantic Ferry Route are delivered at Abedan to U.S.S.R. pilots. Alaskan-Siberian Ferry Route planes are delivered to
Seviet pilots as Fairbanks.
with the exception of 59 P-40 fighters shipped from U.S. ports is September, 1941 and arrived in North Russia is November and December 1941,
this schedule includes all aircraft departed from the U.S. for direct delivery to the U.S.S.R. Aircraft shipped from the U.S. intended for
use in the United Kingdom but retransferred from the United Kingdom to the U.S.S.R. are not included.
Lost in
In North America
Delivered
June 30, 1944
North America
In Canada
In Canada
at
Factories
In U.S.
and
In U.S.
and
En Route
Lost
Departed
After
Depart
North
America
ure
Diverted
to
Others
Alaska
Alaska
N.A. to
Destine.
tion
6/30/44
Delivered
to U.S.S.R.
Arrived
at
Destine.
tion
at
Destination
BI ROUTES
310
4,036
236
10,861
45
77
589
2
0
4
o
o
1
o
o
132(62)*
1,483
0
11,405
Total
43
0
56
290
o
4,093
1,035
o
Water to Persian Oulf Assembly at Abadan
4.307
45
16
0
1,483
60
0
Water to North Bussia
132(62)*
230
1,055
4,307
4,307
0
4.774
4
Alaskan-Siberian Ferry Route
South-Atlantic Ferry Route to Abadas
987
943
1,169
146
3,654
1,169
3,438
153
10,117
9,857
BY TIPE OF PLANE
Pursuit Planes
LB
(1)**
1,003
10
(1)**
830
188Lb
(1)**)
121
0
0
0
0
0
0
0
0
0
83
58
o
0
0
0
0
0
0
0
0
0
,
0
0
0
0
0
,
5
0
10
,
o
o
o
0
146
1
0
0
0
0
0
o
0
0
o
0
0
0
0
o
,
0
3
0
o
0
o
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3
0
0
0
0
3
0
0
0
0
3
417
30
28
28
60
12
7,028
o
35
0
3
155
50
30
,
7
37
0
53
121
0
38
893
27
50
3
0
0
o
111(60)*
0
1,051
27
0
28
1,499
0
35
799
0
0
261
57
799
1,499
0
0
0
7,472
11(2)*
0
52
o
27(18)
58
85
63
27
300
o
41
1,499
17
(3)**} 926b
737
66
0
121
799
13
28
900
0
Total Pursuit Planes
41(26)*
893
54
300
48
900
0
0
P-63 Alsib
0
1,051
197
0
28
0
35
857
o
0
57
P-63 North Russia, Water
P-63 Alaib U.K. Account
0
P-47 Persian Gulf, Water
o
30
P-47 Alsib
P-47 North Russia, Water
0
P-39 North Russia, Water-U.K. Account
F-39 North Russia, Water-Reis. Acct.
P-39 Persian Gulf, Water
P-39 Persian Gulf, Water-U.K. Acct.
P-39 Persian Gulf, Water, Reis. Acct.
1,637
0
P-39 Alaib-U.K. Account
P-39 Alsib-Reiaburesment Account
P-39 North Russia, Water
32(14)*
43
52
0
895
2
P-39 Alaib
15
300
0
872
0
1,149
P-40 Persian Oulf, Water
P-40 Persian Oulf, Water-U.K. Account
248
1
P-40 North Russia, Water
48
1,149
0
50
0
P-40 Alaib
6,464
(6)**6,258
1,225
1,225
Light Bombers
2,934
9
:
0
38
157
1
0
0
0
18(0)*
27
79
4
o
0
D
3,026
637
0
637
165
0
o
39
o
165
863
1
907
16
of
Total Light Bombers
1,225
22
o
A-20 South Atlantic
A-20 North Russis, Water
A-20 Persian Gulf, Water
18(0)*
23
927
0
1,297
819%
4
A-20 Alaib
126
126
(7)**
558
550
(7)**2,720
2,772
Medium Bombers
124
0
0
,
512
512
1
1
0
0
0
o
0
5
516
124
5
4
0
1
0
0
o
1
o
o
1
o
0
0
0
0
5
1
0
la
0
Heavy Benters
B-24 Alaib
2(1)*
c
520
4
Total Medium Bombers
128
283
38)
0
B-25 North Russia, Water
383
d
0
B-25 South Atlantic
2(1)4
0
387
128
0
B-25 Alaib
Cargo Planes
0
0
0
0
,
0
c
g
2
0
0
o
0
o
o
0
1
0
30
322
0
Observation Planes
0-52 North Russia, Water
1(1)*
11
30
0
326
0
C-47 Alaib
322
322
19
19
Advanced Trainers
o
0
30
22
,
8
0
0
0
0
0
0
0
0
0
0
0
a
30
22
5
Total Advanced Trainers
22
5
AT-6-C North Russia, Water
AT-6-C Persian Gulf, Water
27
(1)**
20
(1)** 25
Patrol Bombare
48
19
0
PEN Patrol Bombers
At Fairbagks
Water shipments received at Abadan washed out before delivery to U.S.S.R. pilote.
a One heavy bomber carrying . U.S. Mission became stranded in Siberia and was treasferred to the Seviet Government.
As of June 30, 1944, 1,369 A-20's 926 P-40's, 1,884 P-39's were reported departing Abedan with U.S.S.R. pilots.
One B-26_previously refused by U.S.S.R. at Fairbanks and returned to Great Falls for adjustments BOW enroute to Fairbanks.
s/
One B-25 previously refused by U.S.S.R. at Fairbanks and returned to Great Falls for adjustments now returned to Fairbanks.
Not included in totals above. No information available after departure from North America.
a
-
EXPORTS AND AVAILIBILITY
SECRET
As of June 30, 1944
Sheet 1
Third Protocol
Performance
Cumulative Performance lat. 2nd, and 3rd Protocols
Exported
July 1, 1943
October 1, 1941 to June 30, 1944
June 30, 1944
Item
Third
During
Made
Prototol
Available
June,
offering
To Date
1944
Pursuit Planes
2.400
2,396
Light Bonbers
1,200
1,205
7/1/L36/30/44
Diverted
Made
Available
Arrived
Exported
After
Lost
Export
In K.
Balance
Awaiting
Forwarding
6/30/44
4
.
r
AIRCRAFT AND
Enroute
Aircraft
(For U.S. Protecol Account)
300
300
240
246
34
Heavy leaters
4,343
4,125
3,026
2,934
310
520
516
326
322
4
29
0
Transport Planes
Flying Boats, FIN
2,337
1,212
a
239
12
4
29
21
Observation Planes
30
30
0
18 Advanced Trainers
0
10
o
I
Medium Beaters
157
30
30
o
(For U.E. Protocol Account)
See Detailed Schedule
(Under Reciprocal Agreement)
I LA Pursuit Planes
1,800
1,800
1,732
168
2,950
2,727
179
176
(For Reimbursement Account)
0
0
0
0
0
0
o
0
o
o
0
0
0
o
o
o
0
0
5
5
0
5
3,293
3,293
3,293
1,660
1,680
1,237
443
3,350
3,306
2,816
405
650
650
0
0
3,293
0
0
3,293
10
0
0
10
0
0
0
I
ac. feet)
0
64 Link Trainers
68 Aircraft Landing Mats (1000
0
I 14 Pursuit Planes
0
II MILITARY SUPPLIES ,
Combet Vehicles
5,895
11,202
10,368
8,933
54
218
0
0
0
227
26
22
1,120
0
2,436
0
664
2,835
0
760
3,568
0
797
1,921
0
6,722
76
997
0
1,000
0
1,000
0
1,000
52
0
7,100
100
411
in
2,641
52
52
100
181
o
o
462
so
100
85
0
o
600
4,500
Universal Carriers
Total
o
1,000
650
0
0
0
Half Tracks
Arsored Seout Care
II-10
II-10
0
100
II-185 self-Propelled Dans, AA .50 Cal.
0
so
II-184 Self-Propelled Ques, AA .37 -
650
o
650
0
II-182 Self-Propelled Ouns, AT 17 -
II-183 Self-Propelled Ouns, AT
1,758
52
0
0
0
1,814
2,000
11-180 Self-Propelled Ouns, AT 76 -
0
Medium Tanks
0
II-1A1 Light Tanks
II-JAZ
317
Ordnance Service Vehicles
130
284
256
.
56
1,138
1,695
20
1,518
1,453
23
0
1,067
130
0
0
1,095
1,104
136
376
o
Total
1,183
208
0
276
34
#
0
II-20 Tank Treasporters (204 40 ton)
3
136
130
800
"AR
683
II-28 Tank Recovery Delta
0
II-2A Field Repair Trasks
42
0
Tracks
598
6,316
1,826
1.445
8,258
4,176
704
3,418
6,866
651
138
468
214
852
906
870
498
54
54
0
517
o
58
o
53,304
906
2
14,232
2,400
2,559
485
(3,065)
(3,432)
(3,332)
(0)
(0)
295,486
279,951
236,477
14,233
4,506
12,716
26,332
5,607
24,116
20,018
1,770
1,100
4,503
3,971
242
2,610
86
(3,500)
143,065
(0)
(100)
19,869
4,866
o
12,000
(238)
11,331
6
364
1,228
0
0
146,654
2,931
0
(2,977)
156,000
951
437
92.773
56,388
4,290
630
1,376
93,612
4,112
55,913
108,768
3,657
0
Other Vehicles & fresk-Lazing Tractors
II-CAT Motorcycles
II-482 Tractors, Prime Mover Type
2,263
12,033
0
Total Trucks
34,676
2,800
15,640
110,619
0
(Enginee for Trucks)
40,662
3,012
18,130
113,050
115,289
.
Truck Tractor Trailers
II-38
44,794
2,798
10,992
53,607
Trucks. Special Purpose
11.32
18,214
0
132,000
625
1,817
0
II-30
225
3,010
13,326
0
II-382 Trucks, 3/4 ton
II-382 Trucks 1) ton
II-383 Trucks, 23 ton
II-30
Trucks, ten and over
0
19,262
24,000
II-342 Jeeps, Anchibdam
o
II-3A1 Jeeps a ton 4x6)
290
Artillery and Ammunition
23,190
1,500
1,150
500
0
4
4
o
0
o
o
0
0
0
o
0
0
o
o
0
11-50
Smoke Pote
II-52
Rocket Leunchers
Notes:
. U.S.S.R. selections free U.S. offerings were in excess of the aggregate of shipping consiteents and necessary stocks. Although shipping exceeded
commitments, production control provisions of the Protocol were exercised and reduced quantities made available below offerings is BOBS instances.
From production or assignments is addition to cuentities made available but not exported at the and of the Second Protocol period and after
deductions of cuentifies repossessed or diverted before export.
From production or assignments (Land-Lease and cash purchases) after deductions of quantities repossessed or diverted before export.
871,539
3,000
3,000
777,527
3,000
0
0
0
0
0
b
.
4 Includes shipments for clearance through the Persian Corridor reported arrived in the Persias Mir.
Date on discharge operations is U.S. incomplete.
r Armsent, spare parts and other equipment supplied is accordance with U.S. standards.
0
946,355
94,018
0
866,539
0
49,218
a
941,355
0
o
0
0
30
0
111,293
11,000
0
135,633
13,000
0
140,122
13,000
13,000
0
28
35
o
0
0
0
0
0
63
0
0
500
63
2,850
384
400
0
1,525
20
68
o
1,925
16
0
2,000
1,125
196
0
340
4
424
o
424
0
4,815
0
7,500
196
5,395
o
II-57 Mortars
0
II-501 Pistols and Revolvers
1,200
5,055
224
0
II-5A7 M Duns, 4.7
11-582 AT Duns, 37 m
II-584 AT Dune, 57 m.
II-503 Subsechine Oune, 45 Cel.
224
5,581
8
II-5A4 AA Machine Dune, 50 Cal.
136
5,320
0
II-SAJ a Dune, 37 m
5,401
o
120
II-5A2 AA Oune, 40 -
0
II-5A1 as Guns, 90 -
.
SECRET
Sheet 2
Third Protocol
Performance
Camulative Performance 1st, 2nd, and 3rd Protocols
Exported
October 1. 1941 to June 30. 1944
Third
During
Made
Protocol
Available
June,
offering
To Date
1944
7/2/13
Made
Available
6/30/44
Arrived
Exported
Lost
Diverted
In U. K.
Balance
After
Export
Ameliting
Enroute
Forwarding
6/30/44
.
Item
.
July 1. 1943
June o, 1944
4
.
II MILITARY SUPPLIES
(cont.)
Explosives (tone)
72,700
88,721
1,420
81,464
135,225
2,083
yrr
1,509
2,083
II-643 Other Powder
11-644 Cordite Powder
531
636
636
12,346
12,306
22,173
98,336
18,617
85,021
18,611
GOT
1,028
1,486
1,385
1,147
694
8,136
5,460
3,505
Pierte Agid
919
100
64,468
4,123
11-68 Collaxylis, (Sitronellulose is
Alcohol) ($1000)
357
3,849
9,216
250
0
100
35,840
11-60 Amounts. (Sysmite)
11-60
1,930
..
..
92
1,339
146
0
T.N.T.
4,910
0
II-68
109,137
1,078
119,977
1,609
0
Stick Powder
11-642
0
11-643 Backeless Powder
86
461
69
0
11-68 Deturnators, Blesting Supplies,
0
0
219,141
246,020
..
0
162,069
10,190
0
..
6,277
103,947
108,540
336
0
etc.) ($1000)
11-60 (Other Explosives and Components)
Total Explosives
16,284
69
Wireless Communication Equipment
2,478
15,338
..
..
113
6
19
..
36
..
-
..
64
633
..
..
..
..
..
..
..
..
11
25
32
32
..
10
276
288
2%
..
2,400
2,434
..
be
3,000
1,008
1%
1,285
1,015
225
816
11-712 Radio Meas. & Test. Equip. ($1000)
2,976
202
..
-
..
2,576
2,452
..
1,010
836
25
49
..
..
0
($1000)
..
31
..
Radio Components, Parts & Access
11-71
-
38
16
150
3,626
o
II-78 Radio Tubes (1000 units)
..
1,603
..
..
0
Radio Beacons
32
0
Radio Direction Finders
Radio Altimeters
11-70
822
o
2,230
3,169
386
..
..
o
3,291
II-703 Radio Locators, Aircraft
II-78
24,578
-
II-701 Radio Locators, Marine
II-702 Radio Locators, Ground
11-77
27,034
..
..
0
11-702 Radio Receivers, Other
..
..
..
o
..
**
15,728
..
..
11
11
Radio Receivers, Marine
II-701
**
..
0
II-781 Radio Stations 1 ** and Under, Verine
II-782 Radio Stations,1 KW and Under, Citer12,
..
..
11
22
63
0
11-711 Radio Stations over ER. Mari
II-742 Radio Stations over KV. Other
118
172
Construction Machinery ($3.00)
1,955
1,665
108
0
2,468
0
1,597
0
323
502
0
323
609
o
97
670
635
o
0
1,445
163
491
o
Total
55
o
26
0
360
108
a
411
o
429
417
$
o
606
557
0
606
417
o
526
0
11-80 Mixers and Pavers
11-80 R.E. Construction Equipment
526
531
6
II-BA Road and Airport Construction Equip.
11-88 Tractor Mounted Construction Equip.
107
182
0
R.R. Transportation Equipment
o
0
0
0
1,742
60
o
0
13,962
97
97
2,126
3,827
30
0
12,000
2,126
60
234
54
20
50
100
97
296
273
1,352
o
10,500
3,757
339
1,640
370
50
30
601
2,756
o
370
II-983 Tank Care
339
1,640
20
0
II-982 Due Cars
Total
60
216
6
601
2,756
0
500
10,000
o
II-981 Flat Cars
o
11-9A1 Steam Locumotives
324
Medical Supplies ($1000)
II-10 Medical Supplies
..
..
..
..
..
15
15
..
..
..
..
(Protocol Items Only)
Other Military Items
100,000
0
100,000
100,000
75,000
0
15,000
0
45,000
0
15
15
15
o
II-114 Cableway Bridgee
II-110 Portable Pipeline
II-110 Flashlights") Dry Calls
III NAVAL AND MARINE EQUIPMENT
thing, Except Contact
III-IA Dry Cargo Vessels, Transferred
18 Tankers, Transferred
10 Icebreakers, Transferred
60g
60g
12h
12h
Steam Schooler
3,000
0
3
7
0
0
0
3,000
0
3,000
0
0
10 Panuatie Postoons
0
19
(-)
0
Combat Shipe
45
61
45
o
10
10
10
40
0
0
40
as
30
30
30
0
o
10
10
20 Landing Craft
49
0
76
23
47
0
0
20 Torpedo Boats
20 Minesweepers
23
63
6
23
47
63
0
11
23
29 Submire Chasers, 65
0
III-2A Submarine Chasers, 110
Marine Propulsion Machinery, etc.
1,082
3,479
1,048
1,300
900
46
900
230
320
65
0
1,321
3,640
0
750
0
1,670
2,241
0
972
300
0
200
1,787
1,100
0
1,320
0
156
0
773
Outboard Motors
0
o
30
0
33 Marine Gasoline Enginee
0
III-JA Marine Diesel Engines
38 Shafting and Ship Propellers
69
16
22
20
o
0
6
31 Parts and Equip. for Marine
0
Propulation Mach. ($1000)
430
134
430
57)
573
385
"
0
22
13
0
69
53
o
69
15
0
Steering Gears ($1000)
Storage Batteries for Submarineal
0
(01000)
IF
175
Notes: All tons are short tons (2000 lbs. each) net weight.
Date not available.
U.S.S.R. selections from U.S. offerings were in excess of the aggregate of shipping centiments and necessary stocks. Although shipping exceedat
commitments, production control provisions of the Protocol were exercised and reduced quantities made available below offerings in some instanded
Free products Lon or assis greate in addition to stities made available but not exported as the and of the Second Protocol period and after
deductions of quantities repose seased or diverted before export.
From production or assi greate (Land-) and cash purchases) after deductions of quantities repossessed or diverted
Includes shipments for classeste through the Persian Corridor reported arrived is the Persian Dair.
Date on discharge arations is U.K. incomplete.
before
export.
Armsent, spart parts and other equi past supplied is accordance with U.S. standards.
66 Dry ourge vessels treasferred of which 6 were returned to the U.S. during Third Protocol period.
16 Tankers transferred of which 4 were returned to the U.S. during Third Protocol period.
-
SECRET
Sheet 3
Third Prototol
Performance
Cumulative Performance 1st, 2nd, and 3gd Protocols
Exported
October 1, 1941 to June 30, 1944
July 1, 1943June 30, 1944
Item
Third
During
Made
Protocol
Available
June,
offering
To Date
1944
7/1/13
Diverted
Made
Available
6/30/44
Arrived
Exported
After
Lost
Export
In K.
insiting
Balance
Enroute
Forwarding
6/30/44
4
.
III NAVAL AND MARINE REQIPMENT
(cont.)
Special Ship Equipment
0
0
36
0
3
3
523
523
421
144
150
144
132
6
3
447
0
3
122
0
122
0
0
0
,
0
122
122
o
1
0
122
36
36
0
0
0
122
M
or
sweepers (01000)
0
21 Treeling Equis, for Mine.
0
($1000)
36
65
0
0
Misc. Special Ship Equip.
40
44
o
48 Distilling Apparatus ($1000)
719
o
109
o
729
112
0
BLI
109
0
729
112
0
BLI
0
(40 units)
(20 asta)
0
4D
Jettying Appers tax (31000)
Submit Resque Chambers
0
Gear (81000)
48
.
III-44 Salvage Stations and Diving
0
Naval Artillery and Ammunition
1.108
1,898
1,487
55,713
532,614
5,362
55,713
532,614
5,362
55,113
506.603
5,362
LOB
111
150
700
150
0
1,576
1,900
a
0
o
0
Furnished
1,100
1,118
6
300
900
0
1,348
500
60
16
o
50 Cal. Machine Guns
50
57 Oerlikon Guns
58 Ammunition, Naval
15
50
0
523
o
200
6
III-58 3*/.50 Cal. D.D. Guns
58 5*/.38 Cal. D.D.Ouns
with Areanent
IV POODSTUFFS, ETC. (tone)
600
27,522
21,222
8,335
22,954
22,954
22,683
130
32,463
2,084
86,266
86,266
82,615
1,065
107,048
8,148
1,998
32,463
107,048
8,148
219,175
219,175
16,646
186,155
7,905
8,587
5,062
12,362
o
0
6,300
141
o
0
0
27,522
150
16,183
103 Other Basic Grain will Prods
0
6,560
8,335
9,883
0
101 Other Grains
102 Other Flour
26,465
294,822
2,208
16,181
294,822
2,208
0
26,465
18 Whent Flour
o
IV-1A Wheat
104 Other Finished Cereals and
20,675
495,670
966,252
956,252
896,379
18,305
28,728
112,000
245,972
13,691
245,972
416,921
16,481
12,364
224,800
49,856
172,535
210,089
16,389
99
263
263
39,558
51,356
961
961
961
961
9,014
9,024
9,014
6,233
8,122
166
23,035
40,813
39,414
356,717
335,495
1,532
7,105
12,404
50,004
12,404
11,720
202
50,004
44.118
one
4,394
596
4,675
5,296
2,168
69,839
69,839
57,300
19,656
39,010
19,654
18,764
295
39,010
36,947
1,442
17,948
18,108
18,108
18,106
3,233
3,659
3,659
3,518
1,347
1,723
1,723
1,722
1,049
1,049
983
4,333
6,865
6,691
6,551
7,691
7,691
171,332
234,341
234,343
1,454
6,258
6,258
322
322
6,590
6,580
0
a
0
1,454
2,240
462
17,550
402
597
621
141
66
3,917
416
105
7,596
211,384
95
9,690
7,790
6,019
111
322
0
184
537
15,935
36,616
4,333
6,855
1,454
172
2,140
186
40,813
366
184
16,440
356,717
6.594
45
37
36,050
3,776
4,231
672
220,050
422
1,454
11,200
25,537
160
171,332
IV-7A Soap
TO Soap Stock
25,537
6.594
66
6,551
177,000
260,245
12.801
3.7%
366
6 Concentrated Careals
277,357
13,010
151
7,097
6,019
111
322
5,477
128
0
0
154
1,347
68 Dried Fruits
277,357
13,010
o
17,948
N Dried Soupe
166,703
22,564
0
510
61 Dried Deby. Vegetables
12,479
0
582
36,616
3,233
22,173
441,967
0
15,935
681 Says Flour
682 Soya Grita
60 Concentrated Julees
23,500
484,107
2,744
0
1,253
60 Cheese
" Fruit Veg. Pastes & Purees
23,500
484,107
539
0
,
60 Dried Kega
8,122
284,210
33,025
38,836
597
961
37
o
430
33,025
38,836
27
44
o
7,105
68 Dried Milk
735
0
33
16,743
1.010
2,427
o
36,050
220,050
19
637
3,980
13,317
195
726
302
0
16,440
13,317
222,760
49,567
1,986
166,703
3,980
4,142
499
0
IV-5A1 Vegetable 011 is Bulk
542 Vegetable 011 is Drums
13 Shortening
sc Cleonargarine
7,098
236
961
7,276
33,027
3,198
15,569
9,014
284,210
581
0
347,200
202,025
14,842
16,846
0
4D Other Animal Fata and oils
51,356
146,164
14,842
0
1
402 Butter 011
44
18,872
172,535
210,089
16,389
119,373
4,328
99
39,558
441,673
0
102,755
75
508,995
19,606
12,802
0
1,539
2,500
350,675
610
582
0
508,995
10,050
0
120,040
272,588
1,446
17,426
26,279
0
5,440
16,902
129,597
305,024
22,840
0
0
120,040
403 Carteral Spread
Total
7,052
272,588
378
4,328
Total
7,671
150,649
150,649
350,675
(39,200)
IV-64 Canned wilk
7,671
145,554
483 Sausage Meat Preparations
Total
6,994
11,084
482 Sacked Meats
Total
66,323
6,994
145,554
102,755
119,373
401 Fat Cuts
76,373
0
IV-LA Lard
361,797
76,373
o
207,345
416,921
49,856
(23)
(0)
(0)
495,670
38 Tushonks
30 Other Canned Wests
401 Butter
(2,056)
500,000
IV-3A Dehydrated Meat
Total
(2,056)
1,977
0
2B Sugar from Other Sources h
(346)
23,138
(c)
0
h
IV-2A Sugar from U.S.
(22)
16,626
(2,035)
0
(346)
g
Total
16,646
0
181 Seeds, Lend-Lease
182 feeds, R.N.R.
2,060
0
10 Dried Pass and Beans
528
0
Prods.
128
Notes: All tons are short tons (2000 lbs. each) not weight.
. U.S.S.R. selections from U.S. offerings were in excess of the aggregate of shipping commitments and necessary stocks. Although shipping exceeded
commitments, production control provisions of the Protocol were exercised and reduced quantities made available below offerings is - instances.
b From production or assignments in addition to quantities made available but not exported at the and of the Second Protocol period and after
deductions of quantities represented or diverted before export.
. From production or assignments (Land-Les and cash purchases) after deductions of quantities repossessed or diverted before export.
Includes shipments for clearance through the Persian Corridor reported arrived in the Persian Dalf.
Date on discharge operations in U.K. incomplete.
Foodstuffs made available as exported.
Seeds forwarded by Bussian Bar Relief, Inc. not considered in fulfillment of Protocol commitments emitted from totals.
"Dugar,
By agreement commitment for "thest, Flour, Careals, etc." increased by 100,000 tone effeetting reduction of
free
Other
Sources*.
by agreement canned meat coant teent reduced by 2.17 tons for each too of defertrated meat shipped
Commitment for vegetable oil reduced by 2240 short tons by transfer to the U.K. under Article V of the Third Protocol. U.K. to supply 2210 short
tons of account oil.
--
SECRET
Sheet 4
Third Protocol
Performance
Cumulative Performance 1st, 2nd, and 3rd Protocols
Exported
October 1, 1941 to June 30, 1944
July 1, 1943June 30. 1944
During
June,
Made
Available
offering
To Date
7/2/13-
Made
1944
Arrived
Exported
Available
6/30/44
In G. E.
Diverted
After
Lost
Export
Awaiting
Balance
Earoute
Forwarding
6/30/46
.
Third
Protecol
.
Item
4
.
IV FOODSTAFFS, ETC. (tone) (Cost.)
871
4,053
6,617
2,126
6,817
6,256
2,126
1,894
1,154
1,225
1,225
1,224
0
5
0
0
0
0
0
200
185
3,638
3,638
3.638
3,638
50
0
BE Other Foodstuffs
1,604
5,626
1,604
2,344
5,626
2,404
7,602
2,404
7,602
2,395
5,258
0
19,618
2,905
19,618
29,403
29,403
25,816
1,700,750
82,609
1,760,750
3,079,689
3,079,689
2,786,853
4,921
8,345
6,992
5,948
356
127
127
5,740
639
8,316
7,964
6,529
605
0
2,344
o
708
0
.
1,802,305
0
Total Foodstuffs (short tons)
2
Total
o
as Feed
13
0
58
232
0
0
200
3,638
812 Other Nuts
39
560
BLI Natel Nute from Turkey
13
45
0
876
0
876
0
254
141
36
112
0
607
0
460
838
0
1,100
546
838
o
1,154
BE Flavoring Extracts
1,241
546
33
0
32
as Spices
1,241
529
590
269
0
590
0
4,053
83 Salt
0
81 Coffee
64
9
a
80 Tee
39
0
529
254
0
a Teast
44
1,386
278
1,171
140
278
"
349
0
as Vitamins
349
1,419
0
1,172
an
349
1,419
6
60
60
sc
18
614
0
614
0
18
RR Canned Vegetables
Fresh Fruit
Fresh Vegetables
o
IV-84 Canned Fruits
91,358
75,578
2,871
125,319
581
, MACHINERI AND EQUIPMENT ($1000)
2,479
2,362
2,445
1,038
714
87
2,025*
1,758
1,572
257
660
285
243
252
995
957
837
365
341
212
124
318
o
0
391
24
1,269
3,918
44
7,345
293
664
8,763
15,728
44
7,345
23
15
109
44
356
12
11,270
625
0
U.S.S.R. selections free U.S. offerings were is excess of the aggregate of shipping commitments and necessary stocks. Although shipping exceeded
commitments, production control provisions of the Protecol were exercised and reduced quantities made available below offerings is some instances
Free production or assignments is addition to contities made available but not exported at the and of the Second Protocol period and after
.
b
deductions of quantities repossessed or diverted before export
production or assiments (Lent-Lesse and cash purchases) after deductions of quantities repossessed or diverted before export.
Includes shipments for clearance through the Persian Corridor reported arrived in the Perstan culf.
Date on discharge operations is O.K. incomplete.
Reclassification of Protocol items includes detailed measurement of of individual commitments.
54
21
166
38
124
394
All tons are short tons (2000 1bs.) net weight.
Notes:
111
11
6,946
373
13,824
"
,
576
87
0
651
103
0
663
n
0
176
8,403
187
0
1
10
44
3,918
945
3
1
39
190
956
1,366
91
57
1,015
0
1,600
67
67
496
o
110
15
67
67
30
6
"
67
344
270
0
2,947
982
0
2,074
"
o
336
2,390
o
1,665
3,413
o
37,498
0
40,910
690
1,139
1,456
3,338
0
59,823
328
726
4
4,869
35,778
82
o
3,474
3,481
490
o
Metal Melting & Heating Purpases
1,514
349
o
V-26
9,929
10,972
23,414
4,869
11,065
0
V-25
23,500M
940
0
Printing Trades Machinery & Equip.
Tire Plant
Rubber Working Machinery
Woodworking Machinery
V-24B
8,093
9,520
74
V-23
V-24A
3,702
1,370
58
0
V-22
21,785
1,035
3,474
44,786
Textile Industries Machinery
Pulp Paper Industry Machinery
313
2,404
561
233
o
V-21
2,381
450
1,364
807
Wienellaneous Electric Equipment
2,713
1,039
3,062
904
Food Products Machinery
12,311
3,461
0
V-20
13,486
3,601
o
Electric Lamps
F-19
15,651
5,207
29
223
,
V-18
286
4
Motor Starters & Controllars
2,399
10
5,789
Other
F-17
9,755
1,183
13,9804
Marine
509
0
Secondary Distribution Equipment
839
254
480
11
0
F-168
506
-
0
Secondary Distribution Equipment,
LAL
36
19
10,834
3,964
Equipment
3,429
513
0
F-16
32
3,984
513
0
Power Conversion Equipment
802
4,084
489
953
1,396
0
V-15
1,997
55
0
Primary Electric Power Transmission
211
90
8,420
0
F-14
1,060
9,671
0
Generator Sate, Marine
Generator Sets, Other
V-1382
2,000*
13,808
83
0
V-1383
11,550
4.000
316
213
8,052
5
V-13A2
V-1383
Industrial Machinery
Electric Rotating Equipment, Marine
Electric Rotating Equipment
Generator Sate, Military
229
151
0
V-1343
387
0
Miscellaneous General Purpose
4,167
641
0
V-12
5,203
1,315
0
Valves and Stess Specialties
6,142
505
0
V-11
4,256
184
0
Bearings
459
0
Mech. Power Transmission Equipment
V-10
4,109
1,126
o
V-9
4,843
283
Cranes, Derricks & Hoists, Other
Industrial Trucks & Tractors
Fan and Blower Equipment, Marine
Fan and Blower Equipment, Other
6,162
998
Winches, Marine
V-85
V-04
7,059
o
V-7
4,393
0
V-68
yn
1,095
o
V-6A
5,171
340
0
equipment
161
193
a
Crushing Wixing Machinery &
Conveyors Conveying Systems
1,131
0
T-4
Y-5
258
1,069
o
T-33
5,132
Pumps, Marine
Pumps, Other
any
0
V-23
V-34
79
248
Compressors, Marine
Compressors, Other
0
3,603
Purpose
T-2A
0
Enginee Turbines, General
0
T-1
1,925
e
.
,
SECRET
Sheet 5
Third Protocol
Performance
Camulative Performance 1st, 2nd, and 3rd Protocols
October 1, 1941 to June 30, 1944
Exported
July 1, 1943June 30, 1944
Made
Available
To Date
During
7/1/136/30/44
June
1944
Made
Available
Exported
Diverted
Arrived
After
Lost
4
Third
Protocol
Offering
In U.E.
.
0
985
109
101
4
0
0
o
0
356
128
420
733
496
168
5,155
237
47
0
241
0
0
0
0
0
0
o
23
o
0
0
168
o
409
o
566
0
1,561
406
1,229
0
1,845
253
0
2,313
406
23
238
11
55
31
o
1,272
285
2,308
o
1,692
12
o
4
23,458
8
24,742
o
2,607
26,473
0
2,343
2,856
10,349
201
o
12
2,447
3,466
25
0
1,628
1,516
1,780
744
27
$9
o
38
o
1,211
109
7,134
0
1,561
966
0
228
0
1,245
o
3,861
287
0
30,558
4,664
0
o
38,685
4,884
o
56,000
3,991
2,726
28,167
92
0
304
140
T-45 Outting and Forming Tools
V-47 Tool Room Spec. of Other Attachs.
Agri. Mach. Implements
V-49 Mining & Quarrying Wachinery
304
3.998
1,581
V-46 Attach. Access. for Mach.Tools
202
25,809
2,010
10,824
V-48
5,465
202
6,436
895
0
and Tools
F-444 Cemented Carbide Cutting Tools
8,094
25,100
109
T-443 Metal Out Tools
209,669
1
Mise. Metal Working Equipment
Portable Metal Working Machines
110
0
V-41 Testing Messuring -
304
1,126
5
V-40 Welding Wachinary,Mariner
304
23,845
0
ary Equipment
12,691
1,117
3,215
1,989
0
30
Secondary Metal Forming Mechin-
202
o
243
1,330
246,022
5,469
LAS
o
Machinery & Equipment
259
275,000*
0
162,421
0
15,664
26,681
0
113,800
29,418
494
o
14,265
24
o
2,301
2,736
174
147
o
896
12,946
198
641
3,696
3,120
c
8,446
5,085
o
0
0
3,230
0
755
731
7,019
4,207
7,376
1,117
Drawing Machines
o
7.36 Rolling Mills & Amxiliary Equip.
F-38 Other Primary Metal Forming
249
641
o
V-35 Machine Tools
198
501
2,765
0
212
587
197
0
108
106
124
0
110
15
263
0
186
49,232
0
39,803
0
40,207
0
1,236
0
518
43,235
659
0
657
o
38,248
V-31 Spec. Machinery for Glass Industry
V-32 Spec. Machinery for Chen. Mfg.Ind
V-33 Gas Generating & Prod. Apparatus
V-34A Misc. Spec. Industry Machines
V-348 Cartridge Manufacturing Lines
V-43
MIT
976
94
V-300 Petroleum Refinary Machinery
V-42
1,667
348
0
152
a
V-29 Spec. Ind. Purposes. Kilna & Ovena
V-304 Petroleum Refinery Plants
657
29
378
#
1,652
Foundry Equipment
V-39
6/30/44
.
V-27 Elast & Reverberatory Furnaces
V-37
Tereute
Forwarding
Export
y MACHINENT AND @QDIPMENT($1000) (cont.)
V-28
Balance
witing
128
V-50 Earth & Rook Boring & Drilling
5,271
4,115
4,978
1,365
8,998
19,560
1,011
17,311
13,218
(106,508)
V-58D Sound Equipment
1,999
(337,832)
9,590
(325,537)
8,141
(259,360)
214
486
486
6,030
2,080
765
618
1,146
1,074
1,047
173
169
0
74.
225
197
1,754
48
476
1,002
26
(37,328)
5,417
2,080
99
V-60 Passenger Vehiclee and Parts
(28,849)
2,676
1,315
25
118
0
0
442,445
5,245
2,903
655,589
561,903
9,290
766,033
o
55,201
1,700
0
5,235
1,905
18
16,069
11
204
11
o
420,005
2,342
1,974
222
17
1,085
2,342
o
450,000 ÂŁ
11
2,035
1
8,145
1,625
2,063
0
263
2,179
38
34
0
617
346
0
877
381
231
0
0
928
431
0
560
138
745
21
52
4
12
992
0
T-698 Power Beilers, Industrial
2,700
4
48
n
33
75
o
1,607
2,983
3,768
21
219
0
Mechanic's Reseuring Tools
1,058
228
185
V-694 Power Boilers, Marine
253
1,546
0
566
851
1,696
256
1,806
0
Professional & Scientific Instru.
593
192
21
Misc. Equipment
Hand Tools, Non-Powered
42
358
0
21
2,100
V-65
o
70
463
V-66
409
0
61
F-63 Photographic Equipment
F-644 Opt.,! Ind., Record. 4 Control Inst.
F-645 Navigation Instruments
409
0
409
14
42
0
409
42
a
V-62A Lighting Fixtures, Marine
F-62B Lighting Fixtures, Other
195
42
,
42
0
19
1
133
V-61 Airconditioning & Refrig. Equip.
Total Machinery . Equipment
(137,246)
7,759
325
V-590 Mine Type Locce.. Care Parts
V-64
1,737
214
V-58% Automatic Blook . Signal System
V-594 Ind. Type Locos, Care Parts
F-67
(15,914)
9,130
515
753
12,291
0
100,000
15,073
4
15,540
0
6,187
742
956
0
1,134
1,239
0
934
2,726
0
557
148
is
0
225
1,005
773
4
2
605
643
773
50
663
4,620
V-5802 Other Tel. . Tel. Equipment
682
0
V-55 Misc. Machinery
V-183 Teletype Apperates
V-58C1 Field Telephones
V-58C1 Field Telephones (Units)
0
50
0
705
Office Machines
992
293
0
V-53 Misc. Construction Equipment
T-54
4
362
0
6,044
7,602
o
Excevating & Dredging Machinery
3,615
43
0
6,371
202
0
3,988
1,387
0
3,375
Well Blast Hole Drilling Mach.
F-52
0
Machinery and Accessories
V-51
510
76,022
Notes: All tons are short tons (2000 lbs.) net weight.
. U.S.S.R. selections free U.S. offerings were in excess of the aggregate of shipping commitments and necessary stocks. Although shipping exceeded
Free
come) taents, production control provisions of the Protecol were exercised and reduced quantities made available below offerings is some instances.
production
or assignments
in addition
to quantities
sade available but not exported at the and of the Second Prototol period and after
deductions
of quantities
repossessed
or diverted
before export.
From production or assignments (Lend-Lease and cash purchases) after deductions of quantities repossessed or diverted before export.
b
.
4 Includes
shipments for clearance through the Persian Corridor reported arrived in the Persian our.
Date on discharge operations in U.K. incomplete.
.
, Includes estimates of costs of Marine and Naval Equipment.
3ECRET
Sheet 6
Third Protocol
Performance
Distulative Performance 1st. 2nd, and 3rd Protocols
Exported
July 1943-
October 1, 1941 to June 30, 1944
June 30, 1944
Item
Third
Protocol
During
7/1/43
Available
June,
6/30/44
offering
To Date
1944
Made
Diverted
After
Made
Available
Exported
Arrived
Lost
Export
In K.
Awaiting
Forwarding
Balance
Exroute
6/30/44
4
.
VI MATERIALS AND PRODUCTS
Steel (tons)
75,909
3,625
9,406
26,862
,
449
341
7,410
7,185
125,590
89.5944
29,9088
110,938
87,051
51,474
2,867
52.4986
34,753
26,482
2,646
48,331
115,708
(-16,582)
123
41,6321
4,869
55,008
165,977
21,329
88,122
3,862
244,860
239,2996
9,711
199,762
1,234
17,017
370,911
24,330
36,506
355,937
24,149
35,554
21,767
16,868
VI-1-33 H.R. Sheets Plates
61.5254
VI-1-34 Wire Kails and Tacks
VI-1-101 R.R. Rails and Accessories
3,329
206,691
VI-1-102 Mounted Sate, Sheels & Axles
VI-1-103 Car Axles
VI-1-104 Locomotive & Car Wheel Tires
22,027
867
0
9,184
1,055
15,979
16,184
10,692
3,035
15,034
o
VI-1-105 Rolled Steel Car Wheels
VI-1-107 Locomotive Axles
0
VI-1-106 Electric Locomotive Axles
19,264
141
0
0
500,000
22,162
0
VI-1-32 Pipe and Tubing
2,566
477,759
81,177
784,254
7,097
253
252
300
222
1,891,728
1,694,978
2,133
11,339
798
311
81,873
11,2%
2,872
71,904
24,866
5,082
673
31,769
2,493
127
14,920
6,356
TH
29
53
13
94
37,230
10,538
88,937
155,268
6,384
16,189
1,654
19,180
2,357
299,209
22,241
23,072
1,421
30,248
1,367
17,684
1,307
38
789
336
203
90
2,595
n
261
99
8,920
1,041
670
32,235
1,818
1,775
164
53
4,030
11,991
4,877
252
0
12,087
BLB
59,184
396
222
1,382,049
0
31,278
1,746
72,939
3,463
1,709
0
3
3,769
4.3378
29,821
29,653
0
(-)23,338ÂŁ
49,360
16,620
1,918
0
8,477
149
83,251
5,872
509
292
509
0
86,9298
672
2,830
154,172
0
2,507
9,705
13,269
0
1,819
6,726
145,376
68,190
0
1,187ÂŁ
105,682
1,048
107
48
0
119,458
165,168
83,785
1,219
0
171.6328
96,2825
44
69
22
a
131.600r
4,499
579
o
48,559
103,952
8,490
24,893
6,700
o
27,315
267
411
0
9,161
2,253
35,224
Steel Alloy Tuber
VI-1-28 Stainless Steel Wire
9,748
29,174
9,322
Wire Rooe
VI-1-31 arbed Wire Staples
4,591
14,170
7,546
1,633
58,2964
3,890
46,628
VI-1-24 Timplate
VI-1-25 Steel Wire
457
492
498
25,805ÂŁ
(-)26,805)
VI-1-23 Stainless Steel
2,897
0
212
968
5,787
1
o
14.285
VI-1-22 Cold Rolled Sheets
VI-1-22A Cold Rolled Strip
Total Steel
54
21,900
8,951
0
4.7M
VI-1-20 N.R. Aircraft Steel
VI-1-21 Cr. 81. Mn. Billate
268
33
29,568
8,951
o
235
30,961
0
Polished Drill Rods
VI-1-17 High Speed Tool Steel
VI-1-18 Tool Steel
VI-1-19 Cold Finished Bara
VI-1-16
VI-1-26
VI-1-27
24,027
2,279
o
11,671
Armor Plate
VI-1-14
o
VI-1-10 Steetal
140,584
4,905
Notes f The following quantities released from U.S.S.R. export stocks for redistribution have been deducted from amounts made available.
July 1943 to
June 30. 1944
Cold Finished Bare
R.R. Aircraft Steel
945
956
Wire Rope
409
L82
Barbed Wire and Staples
Cr. $1. Ms. Billets
Cold Rolled Strip
Steel Wire
o
Cold Rolled Sheets
Oct. 1941 to
June 30,1944
382
28,414
32,361
18,102
3,342
Pipe and Taking
H.R. Sheets and Plates
July 1. 1943 to
Oct. 1941 to
June 30, 1944
June 30, 1944
350
430
6,585
17,127
60,197
(-115,669
1,152
17,396
54,929
178,607
28,414
32,361
Total Released (tone)
Notes: All tons are short tons (2000 1ba.) net weight.
. U.S.S.R. selections from U.S. offerings were in excess of the aggregate of shipping commitments and necessary stocks. although shipping exceeded
commitments, production control provisions of the Protocol were exercise and reduced quantities made available below offerings in some instances.
From production or assignments in addition to cuentities sade available but not exported at the and of the Second Protocol period and after
deductions of quantities repossessed or diverted before export.
b
Free production or assignments (Land-Lesse and cash purchases) after deductions of quantities repossessed or diverted before export.
Includes shipments for clearance through the Persian Corridor reported arrived is the Paralas ouir.
Date on discharge operations is U.K. incomplete.
SECRET
Sheet 7
Third Protecal
Cumulative Performance 1st, 2nd and 3rd Protocols
October 1, 1941 to June 30, 1944
Performance
July 1943
Exported
June 30, 1944
Item
During
Made
Protocol
Available
June
offering
To Date
1944
Divorted
1/1/43
Made
Available
6/30/44
Exported
Arrived
In U.K.
Balance
Enroute
After
Last
6/30/44
Export
ing
.
Third
4
VI MATERIALS & PRODUCTS (Cont.)
Perro Alloys (tose)
0
1,049
3,646
494
169
223
225
225
225
572
573
573
573
0
1,072
1,142
1,071
1,142
1,071
0
0
572
0
223
Thingstes
0
11
11
0
o
8,152
112
14,145
14,102
12,362
23,488
213,489
85,233
47,731
0
2,030
14,784
1,543
169
28
0
Total Ferro Alloys
o
Other Ferro Alloys
6,532
4,140
0
VI-28
8,076
4,113
0
Terro-Molybdane
Manguana Metal
8,117
2,155
0
Perro-Venedia
VI-28
VI-27
VI-20
4,121
o
Photoboroe
VI-20
VI-20
112
0
5.3%
0
9,00
VI-28
0
VI-2A Terre-Silice
Non-Ferrous Metals (tone)
15,506
11.876
31,472
1,032
113,759
276,790
615
2,694
6.638
15,392
26,249
246,948
5,418
13,986
64,396
3,027
20,640
110,423
62,865
102,476
53,285
158
158
4.221
6,052
5,787
3,612
9,122
8,114
150
Mosal Scrap
338
413
415
413
413
510
44
514
1,239
1,212
1,062
267
107
267
700
695
563
260
246
222
10
10
10
415k
952
VI-303 Eichrone Wire . Strip
538
TI-304 Other Nichrone Basic Shapes
VI-305 Nickel Fail
Cobalt
47
0
0
120
81
VI-384
Mercury
VI-385
Sodium
VI-309
Wise. Non-Ferrous Metals
110
26
30
0
341
397
Total Non-Ferrous Metals
313
313
18
18
18
288
255
255
895
1,493
10
12
43
313
12
895
891
1,444
1,168
10
250
0
VI-3H3
34
112
37
2,297
43
o
Cerium
112
50
20
2,323
49,652
0
VI-3H2
112
54,272
0
Lead
Cadalum
54,272
49
46
0
15,012
1,348
15,012
12
156
0
13,440
VI-30
VI-310
12
237
54
0
Zime
132
11
13
0
VI-3F
132
0
Babbitt
0
Tin Foil
VI-383
115
,
140
11
153
Tia
VI-382
449
828
,
VI-306 Other Pure Nickel Shapes
VI-381
3,147
10
29,148
252,903
579,340
523,876
444,005
29,455
297
3,842
12,313
12,313
10,586
1,400
5,673
729
3,360
8.188
5,264
4.535
401
116
461
1,682
1,364
977
182,356
12,684
255,655
934,016
3,784
29,733
45,120
201,035
282,782
4,000
3,842
o
4.400
2,393
158
5,338
7,286
50,179
203
M
18
0
3,600
1,052
11,949
0
Pig Eickel
5,294
4,366
0
629
1,469
16,320
125
0
4,035
Aluminus Foil
17,014
0
Magnasium
4,032
Fabricated Aluminus
13.240
62
0
71,998
29,740
1,194
0
35,760
2,152
0
3,849
14,389
152
0
Bare Copper Cable Wire
Aluminum Ingota Wire Bar
123,868
7,640
o
VI-344
VI-382
VI-330
VI-383
VI-30
VI-301
VI-300
13,342
o
VI-3A3
14,360
15,000
107,520
20,000
Cooper Tubes, etc.
Copper Base Alloys
o
VI-342
Copper, Electrolytic
o
VI-3A3
Other Metals and Products
0
2,010
5,230
2,526
101
143
139
188
411
419
1,072
65
a
1,745
0
1,736
0
1,736
1,810
a
1,830
516
-
0
2,991
6)
a
1,021
1,392
73
1,486
278
c
Rivets, etc. (sons)
1,335
278
0
..
1,405
328
0
2,275
VI-60 Chains Attachments (some)
VI-68 folts, Nute, Screws, Washers,
1,733
0
VI-60 Feb. Structural Iron Steel (tone)
611
120
0
108
7,871
0
737
108
o
1,000
30,857
111
o
VI-680 Wire Cloth Screen ($1000)
VI-683 Wire Netting Fencing (tone)
39,484
27,037
3,754
197
756
o
148
50
127,617
0
21,451g
783
775,411
0
(12,000km)
VI-GAS Copper Magnet Wire ($1000)
833
934,016
0
VI-GAL Other Insulated Wire & Cable
($1000)
839
255
you
186,000
258
0
Submire Cable (siles)
VI-6A3 Field Telephone Wire (siles)
297
729
129
0
746
0
Concentrates (tone)
0
Pig Iron (tone)
Marine Cable (miles)
0
VI-5
VI-6A1
VI-6A2
0
Wise. Metallie Ores, Tailings
o
Molybdanue Concentrates (tone)
VI-48
0
VI-IA
516
VI-68 Other Fabricated Metal Basic
105
a
Products ($2000)
139
0
VI-60 Special Fine Eires, Strip,
Sucker Rods (Some)
VI-7%
Anchors (tone)
VI-79
Other Metal End Products ($1000)
419
220
753
13
477
1,357
411
351
1,072
1,072
349
339
770
696
Notes: All Lone are short tons (2,000 1bc.) net weight.
Extimated
Not available.
U.S.S.H. relections free U.S. of forings more in excess of the aggregate of shipping commitments and naterally stocks. Although shipping
exceeded commitments, production control provisions of the Protecol sere exercised and reduced quantities made available below offerings
in FORM Instances.
From production or assignments in addition to quantities made available but not exported at the and of the Second Protecol period and
after dedocitoma of quentities reportered or diverted before export.
From production or enclosente (Land-Levis and eash purchases) after deductions of centities repossersed or diverted before export.
Includes sidpments for clear DEW through the Persian Corridor reported arrived is the Persies Gair.
Date
on
disclarge
operations
is
U.S.
incomplete.
irro-Vanadium, and Perro-Bolybdema rebetituted is smaller centities for Ferro-Eilion and Perro-Christian
Production reduced to reduce considing large stocks.
Pull affering not destred by U.S.S.R.
56
10
6
0
VI-4a
56
0
etc. (tone)
188
269
SECRET
Sheet 8
Third Protecol
Performance
Exported
1/2/43-6/30/46
Third
Cumulative Performance 1st, 2nd and 3rd Protocols
October 1, 1941 to June 30, 1944
Made
Protocol
Available
During
offering
to Date
June
7/1/136/30/44
1944
Made
Available
Arrived
Exported
Lost
Diverted
In U.E.
After
lessiting
Balance
Enroute
Forward
6/30/44
4
Export
ing
IL MATERIALS AND PRODUCTS (cont.)
Petroleum Products & Additives (tone)
2,773
7,946
76,048
34,631
5,634
11,940
1,886
669
Other
419,633
3,985
49,582
667
1,826
70,354
466,754
867,275
488
12,566
12,373
41,417
and
204
80
711,775
8,608
2,744
1,678
2,982
80
Free U.K. for U.S. Account
(Replacement to U.K. free U.S.)
9,310
11,682
67,440
30,209
4,401
4,353
0
Sub Total
17,068
11,216
199
21,019
830
81
1,290
54,434
80,047
0
292,639
905
Labricating Oils & Greases
83,051
20,789
2,069
0
35,594
7,437
Petroleus taxes
Chemical Additives
VI-N
69,828
1,976
58,803
348,775
7,058
0
Kerosane
Fuel 011.
VI-91
81,695
1,976
1,089
12,566
33,665
Desoline Blending Agents
VI-9H
VI-9K
0
Automotive Gas
VI-98
VI-97
VI-90
120,223
0
Aviation Sex 87 Ostane & Under
152,228
107
0
68,103
o
VI-90
VI-90
o
11,652
through
0
Aviation Das over 99 Octane
Aviation Gas over 87 Detene
VI-93
4
VI-9A
.
Item
Aviation Gas over 99 Octane
28,489
895,764
740,264
171,920 f
171,920
21,019
o
From Abadan for U.S. Account
54,434
50,047
0
28,489
895,764
0
18,293
485,047
o
70,354
0
485,047 ÂŁ
0
360,000
(Replacement to British from U.S.)
Aviation Gas over 99 Octone
Casoline Blending Agents
120,000
23,520 g
23,520
171,920
171,920
}
Shipments from U.K. to U.S.S.R.
as Reprincements
Aviation Gas over 99 Octabe
Aviation Gas 87 through 99
(17,148)
(14,719)
Additional U.S. Allocation to
Expense 19
placement for Diversion to U.S.
Aviation Gas over 99 Octane
Casoline #lending Agent
(20,789)
9,182
Chemicals
Dasic Inorgents (tone)
0
0
580
409
11
0
1,500
180
142
2,138
1,812
1,420
1,062
1,084
826
o
14
908
0
6,288
5,776
4,070
527
3,521
3,521
2,466
927
1,828
2,628
1,222
0
13,779
0
0
20,187
474
3
20,187
o
159
0
20,187
842
0
147,586
0
1,316
,
161,524
85
0
1,316
161,524
256
64
0
273
143
0
20,187
337
420
0
0
20,187
1,233
380
70
0
0
0
3
107,520
from U.S.
1,314
141,372
1,489
its
859
0
Account Replacement to U.E.
196
9,288
526
0
1,314
141,371
Ethy) Alcohol from U.K. for U.S.
222
28
3,796
526
2,302
0
135
VI-10815 Itay1 Acetate
VI-10816 Stay1 Alcohol from U.S.
4,864
552
2,510
2,080
o
VI-10814 Diphenylanine
24
16
61
0
126
5,706
231
0
0
352
1,022
292
116
0
4,868
1,947
1,096
510
1,118
0
0
0
441
0
1,096
0
124
184
VI-10812 Dimetiya Amiline
2,244
560
96
103
100
214
0
VI-10811 Diethylane alyeol
VI-10813
1,947
330
0
466
330
of
560
Cresola
VI-10810 Dibuty1 Phthalate
330
1,828
0
VI-1088 Citrie Acid
24
2,628
o
2,244
1,825
2,628
0
VI-1087 Cassin
34
0
772
0
392
330
1,179
112
0
0
VI-1086 Camphar
16
0
0
0
1,769
2,628
0
4,870
0
VI-1084 Buty1 Acetate
VI-1085 Duty1 Alcohol
VI-1089
640
0
5,287
(-)2,191
0
6,720
VI-1082 Aniline on
VI-10B3 Anthresene
159
o
0
0
Basic Organic (tone)
VI-10H Acetone
182
17
1,190
0
1,137
0
0
6
650
15
12
6
736
363
180
334
0
0
360
0
528
0
420
1,063
360
12
157
152
13
137
o
45
450
2,191
535
0
252
1,229
363
0
580
2,041
0
175
40
o
563
2,178
0
0
0
537
VI-10499 Rise. Inorgunis Chemicals
2,560
105
337
VI-10A20 Sodium Discross to
1,014
224
0
(-)
VI-10A19 Thorium Sitrate
825
0
802
528
VI-10418 Bodies Promide
860
838
6,683
o
VI-20416 Bods Ash
VI-20417 Bodium Cyanida
205
21
900
872
478
13
(-)1,051
(-)1,246
VI-10A14 Potassius Dulphate
VI-10A15 Potessium Tetrooxide
1,344
0
424
VI-10413 Potensium Nitrate
us
o
504
419
o
728
728
457
706
o
728
590
224
162
42
90
168
0
55,631
2,070
0
63,020
2,555
0
63,097
2,850
0
726
516
0
440
816
1,103
0
482
816
0
611
334
0
1,243
313
o
644
10
39,174
610
69
o
0
0
420
6,380
392
131
o
VI-10410 Potnessus Carbonate
VI-10A11 Postessium Chlorate
VI-10A12 Potassius Dishronate
131
0
us
132
0
0
Phosphorus
35,598
25
261
113
,
40,320
726
2,602
o
0
Caustie Bods
0
VI-10AB
784
356
262
726
3,394
0
Calcium Chloride
2,997
3,394
0
VI-1046
VI-10A7
VI-1049
(-) 201
Dorie Acid
Calcium Carbide
75
0
VI-10A1
(-)1,508
(-12,406
Amountus Nitrate
Amount Bulf ocyanide
Darius Peroxide
0
VI-10A3
VI-IOAL
Ammonium Chloride
o
VI-10A1
VI-10A2
Notes: All tons
are short
tons (2000 lbs.) not weight.
U.S.B.R.
selections
a
from
U.S.
offerings
Instances.
exceeded is BORB commitments, production control were provisions is - of the of the Protocol aggregate vers of exercised shipping and commitments reduced quantities and necessary made
stocks. Although
available
belowshipping
b after Free production deductions or of assignments (mentities repossessed is addition or to quantities diverted before made available export. but not exported at the and of the Second Protocol period offerings and
Free Date Includes on production discharge shipments or operations assignments for clearance is (Land-Lease U.K. through incomplete. the and Persian cash Carridor purchases) reported after deductions arrived in of the quantities Perstan Outf. repossessed or diverted before export.
Petroleum products made available as exported.
-
.
Total
SECRET
Third Protecal
basistine
July 1943-
1944
1941
Jane 30. 1944
Third
Made
Diverted
During
available
Protest
offering
1/1/23
6/30/44
1944
To
Exported
Made
I
Protesal
October
Exported
Sheet 9
Arrived
After
Lest
available
Jalease
In U.S.
Toroute
Parents
Export
6/30/44
Lag
4
VI MATERIALS . PRODUCTS (Dast.)
Chemicals
Basis Organic (Tone)
VI-10817 Evaluate
220
Mariana Otherside
Payless Glycol
231
993
231
232
2,042
2,042
8.114
8,665
4,134
Furtural
Glycerine free
3,522
10,679
11,818
5,478
5,478
12,245
Duty)
63,124
2,257
Paints,
2.447
Partilizers
InsecStelder
12
Plastics
PhenolFiberBesins
1.08
1,067
1,184
1.2%
Calluloss File Base
Other Plastice
Miss. Chemicals including Industrial
Amounts Rubber Paste
119
Centralite
119
357
160
1,064
Beller Compounds
dies. Flotation Reagents
Thiseball Reagent
Photogalatin
Other Chemicals
offering Miss. Chemicals
9,200
Total Chemicals
267,256
238,781
23,157
302,961
460,411
479,420
15,221
409,679
1.75
33,006
1,233
The following all of which have been released during the third Protocol Period free U.S.A.R. export stocks for redistribution have been
deducted
from amounts made ailable
Chloride
VI-10A3
VI-10A4
VI-1049
VI-1041)
tailing 011
DibutyIphalate
VI-1002
1,828 (Tone)
American Estrate
Inrise Peroxide
VI-10A2
VI-10810
Mitrate
VI-10818
Ethelane
VI-10819
Elazione Glysel
Potessium Subscribe
VI-10824
VI-10418
dedica
VI-10832
Talual
VI-10499
Potesotive Persanganate
VI-1082
stayl Centralite
VI-IDATA
2,192 (Tone)
10,091
Total Chemicals Baleased
22.426
Textiles
43,478
189,520
64,503
2,662
VI-11
30,426
1,258
VI-110
29,118
15,199
VI-111
VI-110
63,610
Webbing (1000 yda)
Termsile (1000 yda)
Other Cloth (1000 yds)
Contage Twise
26,433
4,773
3,510
3,000
6,990
2,297
6,853
1,672
6,009
1,887
2,943
45.450
41-178
11,752
6,757
9,535
1%
4,400
Other Basic Texti ($1000)
Fish Note (tons)
FI-129
other Textile Products ($1000)
3,913
206
Leather
VI-13
Leather (bone)
18,347
18,000
VI-14
Leather Products (81000)
VI-15
Orale Rubber (tone)
VI-164
Visiance (Loss)
2,765
18,303
in
2,600
29
Rubber
-
Other Bynthette Rubber (tone)
Derd (yea)
Other Materials ($1000)
Tires write)
Tubes (1000
Reber Bose ($3000)
5,504
Other Rubber Products except
Apparel ($1000)
9,367
2,154
10,232
13,600
12,375
2,644
tons (2000 line) not wight.
free offerings is - of the aggregate of shipping Seens and necessary stocks. Although shipping assested
sade available below afterings is -
the and of the Second Protesal partal and after
centities
Pereise
Corridor
the
Persian
represented
out.
or
diverted
before
export.
released during the Third Protecal period free U.S.S.R. export stocks for redistribution to others have
available.
Cleta
17,418
1,275
VI-IID
215
-
-
SECRET
Sheet 10
Third Protocol
Cumulative Performance 1st, 2nd and 3rd Protecula
October 1, 1941 to June 30, 1944
Exported
Third
Protocol
Offering
Made
Available
to Date
During
June
1944
Made
7/2/13
6/30/44
Available
Exported
Arrived
Lost
4
Item
Divert
After
Export
In U.K.
Balance
Enroute
PERSONAL
ing
6/30/44
.
Performance
7/2/13-6/30/44
b
.
VI MATERIALS AND PRODUCTS (cont.)
Footeen
0
1,063
}
-
173
o
35,286
..
o
255
1,062
2,489
930
907
1,537
1,307
o
670
15
1,973
570
14
895
23
216
0
209
0
7,364
213
o
8,835
225
0
9,142
154
o
134
4,887
0
VI-199 Rubber Boots and Shoes ($1000)
VI-19D Other Boots and Shoes ($1000)
703
100
6
4,076
3,600
0
VI-198 Bk--Boots (1000 pre.)
0
VI-194 Arway Boots (1000 prs.)
Apparel except Footesar
..
..
..
2,635
2,430
2,175
193
..
..
..
0
62
..
7,194
393
4,000
7,606
1,512
4,000
3,876
1,120
1,950
6,523
..
..
7,034
12,342
10,408
7,878
10,264
9,255
6,288
4,183
10,399
10,291
8,469
..
8,146
TO
0
..
0
-
Rubber Apparel ($1000)
175,000
..
..
VI-20E Other Apparal ($1000)
**
1,099
31
o
Leather Jackets (unite)
Leather Belte (1000 units)
Misc. Leather Apparel ($1000)
VI-20A
VI-20B
VI-200
VI-200
2,192
Abrasives
91
0
452
918
"
0
VI-218 Abresive Products ($1000)
0
VI-214 Abresive Grain (loss)
2,876
831
Carbon and Graphite
1,656
2,984
998
6,409
15,963
14,561
11,954
.470
379
1,411
1,285
1,144
100
1,743
3,412
2,658
3,497
2,530
3,412
2,354
2,012
543
1,042
935
708
117
264
254
218
25
175
1,112
0
0
15
201
0
512
2,011
0
(1,6198cm)
2,387
179
0
5,757
0
VI-221 Graphite Carbon Electrodes (tens
VI-22C Other Graphite Materials ($1000)
0
VI-221 Graphite Porder tood
41
Paper and Paper Products
0
0
o
0
0
39
0
..
0
104
64
0
..
0
36
0
159
109
265
0
0
VI-23E Other Pulp, Paper, etc. ( tood
VI-24 Paper Products ($1000)
653
0
0
336
146
176
0
VI-230 Condenser Paper (tons)
3,497 ÂŁ
0
VI-230 Cigarette Paper (tons
1,680
0
VI-23A Parchment Paper (lose)
VI-233 May Paper (tons)
176
1,135
159
36
..
106
..
..
41
Photographic Materials
VI-25A1 Photographic File & Paper ($1000)
VI-2512 Reproduction Paper Stock ($1000)
VI-253 Finished Pictures, etc. ($1000)
VI-250 Wise. Photographic Materials ($1000)
..
..
..
..
-
..
..
-
..
..
..
..
..
..
..
..
..
..
..
..
Asbestos
o
0
0
0
125
207
673
1,012
o
0
18
200
186
701
627
4
46
0
VI-26A Asbestos (tone)
VI-268 Asbestos Materials ($1000)
10
Other
VI-27 Buttons ($1000)
Other Crude Materials (81000)
Other Basic Materials ($1000)
##
Other End Products ($1000)
VI-99
554
25
..
23
..
49
..
..
..
..
so
..
..
..
..
..
Notes: All tons are short tons (2000 lbs.) not weight.
. Estimated
.. Not available
U.S.S.R. selections from U.S. offerings were in ****** of the aggregate of shipping commitments and necessary stocks. Although shipping
exceeded commitments, production control provisions of the Protocol were exercised and reduced quantities made available below offerings
.
in some instances.
Free production or assignments in addition to quantities made available but not exported at the and of the Second Protocol period and
after deductions of quantities repossessed or diverted before export.
. Free production or assignments (Land-Lease and cash purchases) after deductions of quantities repossessed or diverted before export.
Includes shipments for clearance through the Persion Corrider reported arrived in the Persian oulf.
Date on discharge operations in U.E. incomplete.
b
Substituted for parents paper.
25
4
94
TREASURY DEPARTMENT
OFFICE OF THE SECRETARY
September 9, 1944
CONFIDENTIAL
Received this date from the Federal Reserve Bank
of New York, for the confidential information of the
Secretary of the Treasury, compilation for the week
ended August 30, 1944, showing dollar disbursements
out of the British Empire and French accounts at the
Federal Reserve Bank of New York and the means by which
these expenditures were financed.
EMB
95
Federal Reserve Bank
of New York
September 8, 1944.
CONFIDENTIAL
Dear Mr. Secretary:
Attention: Mr. H. D. White
I am enclosing our compilation for the week ended
August 30, 1944, showing dollar disbursements out of the
British Empire and French accounts at this bank and the means
by which these expenditures were financed.
Very truly yours,
/s/
The Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington 25, D.C.
Enclosure
COPY
H. L. Sanford
H.L. Sanford,
Assistant Vice President.
Strictly
ANALYSIS OF BRITISH AND FRENCH ACCOUNTS
(In Killions of Dollars)
1,793.2
605.6
20.9
1,166.7
December, 1940
2,782.3
1,425.6
1,792.2
20.9
1,335.8
3.4
7.7
407.4
223.1
170.4
280.9
1,072.3
16.8
16.0
10.6
22.0
86.2
115.4
42.4
5.9
far period through
Second year of star(h)
Third year of war (1)
Fourth year of war(1)
2,203.0
1,235.6
764.0
904.8
312.7
2,793.1
2,189.8
1,361.5
(5)
49.4
October
38.2
65.9
November
December
-
22.2
17.6
81.8
98.1
16.3
44.4
22.2
10.6
14.3
2.3
March
143.6
152.9
12.0
127.4
71.1
12.5
69.3
April
134.8
14.9
May
125.1
28.8
89.0
134.5
878.3
1,098.4
+ 220.1
38.9
8.8
30.1
1,276.8
125.9
18.5
4.4
- 14,1
155.1
916.7
308.3
10.3
1.0
15.0
40.5
71.2
74.9
36.8
77.2
3.5
85.5
36.5
98.0
23.1
36.4
1.0
29.0
126.5
02.7
115.5
0.7
24.5
27.5
108.8
94.7
127.7
19.6
12.6
14.5
1,193.7
108.0
274.0
16.7
561.1
705.4
21.8
5.5
57.4
-
-
-
-
-
-
1944
24.1
12.3
7.3
3.2
1.1
86.2
77.8
131.3
164.7
95.7
85.9
-
-
-
-
-
-
-
July
8.1
-
-
101.9
150.9
June
119.9
144.5
133.3
122.2
-
-
January
February
127.5
-
37.0
26.0
10.0
-
-
(d)
299.0
13.2
2,109.5
-
(e)
+ 10.8
416.2
-
(e)
in G Funds
1,095.3(f)
39
0.5
Credits
Net. Incr. (+)
or Decr. (-)
866.3(f)
52.0
-
Debits
(d)
(c)
1,356.1
1943
September
Account
Total
35.0
9.3
-
-
-
-
-
-
-
-
-
-
-
-
-
39.6
-
-
6.2
67.7
75.9
-
-
First year of war (a)
Gold
in G Funds
Total
-
Credits
1,828.2
Credits
or Decr. (-)
-
Debits
official
Total
Net Incr. (+)
Other
-
Account
Other
Transfers
-
Official
Canadian
Proceeds of
-
CREDITS
Transfers to
-
tures
(o)
BANK OF FRANCE
BANK OF CHOLAND (BRITISH OOVERNENT
-
Total
Debits
Gov't
Expendi-
Week Ended August 30g 1944
-
DEBITS
PERIOD
Conficential
-
-
65.0
-
-
August
Week Ended
2.5
-
56.3
2.1
5.0
9a4
24.7(k)
Average Weekly Expenditures Since Outbreak of far
France (through June 19, 1940) 199.6 million
England (through June 19, 1940) $27.6 million
England (through June 20, 1940 to Carch 12, 1941) 54.9 million
England (since Larch 12, 1941) $21.5 million
-
-
7.3
-
5.0
-
9.4
-
-
2.5
-
-
7.3
-
4.6
5.9
5.7
1.6
-
24.7(k)
+
-
2.7
2.5
49.4
20.1
-
10.0
1.5
58.8
-
August 9g 1944
August 16, 1944
August 23. 1944
August 30, 1944
-
-
-
-
-
-
-
-
See attached sheet for footnotes.
(a) Includes payments for account of British Ministry of Supply Mission, British Supply Board, Ministry of Supply Timber
Control, and Ministry of Shipping.
(b) Estimated figures based on transfers from the New York Agency of the Bank of Montreal, wrich apparently represent the
proceeds of official British sales of American securities, including those effected through direct nagotiation. In addition
to the official selling, substantial liquidation of securities for private British account occurred, particularly during the
early months of the war, although the receipt of the proceeds at this Bank cannot be identified with any accuracy. According
to data supplied by the British Treasury and released by Secretary Morgenthau, total official and private British liquidation
of our securities through December, 1940 amounted to 8334 million.
(c) Includes about $85 million received during October, 1939 from the accounts of British authorized banks with New York banks,
presunably reflecting the requisitioning of private dollar balances. Other large transfers from such accounts si nce October,
1939 apparently represent current acquisitions of proceeds of exports from the sterling area and other accruing dollar
receipts. See (k) below.
(d) Reflects net change in all dollar holdings payable on demand or maturing in one year.
(e) For breakdown by types of debits and credits see tabulations prior to March 10, 1943.
(f) Adjusted to eliminate the effect of $20 million paid out on June 26, 1940 and returned the following day.
(g) For monthly breakdown see tabulations prior to April 23, 1941.
(h) For monthly breakdown see tabulations prior to October 8, 1941.
(1) For monthly breakdown see tabulations prior to October 14, 1942.
(3) For monthly breakdown see tabulations prior to September 29, 1943.
(k) Includes $ 7.4 million apparently representing current and accumilated dollar proceeds of sterling area services and
merchandise exports, and $13.8 million in connection with the expenses of our armed forces abroad.
ANALYSIS OF CANADIAN AND AUSTRALIAN ACCOUNTS
Strictly
(In Millions of Dollars)
DEBITS
BANK
CANADA (and Canadian Government)
OF
Proceeds
to
official
First year of war (a)
War period through
December, 1940
Second year of war(b
Third year of war (c)
Fourth year of war(d)
EDITS
of
Transfers from Official
British A/C
Net Incr
(+) or
Decr. (-)
Proceeds
to
Official
British
of
Net Incr.
(+) or
Other
Decr. (-)
Credits $ Funds (e)
British
Others
For French
Debits
Total
Credits
For Own
A/C
Sales
A/C
A/C
323.0
16.6
306.4
504.7
412.7
20.9
38.7
32.4
+ 181.7
31,2
3.9
27.3
36.1
477.2
460.4
525.8
723.6
16.6
460.6
534.8
246.2
198.6
20.9
110.7
41.0
+ 230.2
57.9
14.5
43.4
62.4
3.4
7.7
123.9
88.5
1.6
72.2
16.7
55.5
525.5
707.4
462.0
566.3
360.0
40.5
107.2
57.4
49.6
€1.2
112.2
17.2
723.6
958.8
47.1
170.4
+ 235.2
197.0
155.1
41.9
200.4
95.0
200.4
47.2
47.2
32.1
32.1
70.1
71.3
0.1
15.3
95.1
0.3
146.5
55.0
32.3
78.5
110.5
Total
Debits
460.4
0.3
Gold
-
Other
Credits
in $Rindse
+
PERIOD
COL ONNEALTH BA OR AUSTRALIA (and Australian Government)
EDITS
Transfers
REDITS
Transfers
Confidential
Week IndedAugust 30g 1944
741.3
Total
Debits
A/C
Other
Total
Debits
Credits
Gold
Sales
30.0
6.1
4,9
50.1
12.3
4.5
62.9
18.3
9.0
5.0
-
3.4
1943
11.4
146.8
prember
-
10.6
22.9
16.8
15.0
89.2
39.2
79.7
42.8
6.6
40.5
1.8
2.3
55.1
91.7
39.77
36.5
3.2
59.5
-
-
5.9
-
-
+
September
3.1
20.0
20.0
-
26.5
26.5
18.2
27.0
-
30.3
183.6
0.5
25.4
29.8
0.1
154.2
100.0
183.6
SEL2
100
16.1944
19
3.9
6.3
tv3
and year of sar
Fourth year of mar
First year of war (through August 30, 1944)
-
36.3
10.8
Second year of war
12.5
8.1
63.3
7.3
Tookly expenditures for
First year of war
15.0
-
7.3
-13.88
2.1
-
73.2
30g-1944
23.1
-
-
96 7
43-1
43%
10.6
%
-
46.2
6.0
1.0
5.0
31.93
29.0
2.3
11.3
28.6
11.3
93.1
61.1
58.3
96.2
27.6
24.5
3.1
86.9
29.5
2.0
5.6
29.9
42.6
27.5
29.9
78.2
-
63.3
7.3
-
65.9
67.9
36.8
29.5
1.1
-
st
35
1.1
-
-
6a3
2a4
0.2
103
4.8
-
-
67.9
93.3
-
6.2 million.
8.9 million.
10.1 million.
13.9 million.
16.1 million.
-
No
4e4
31.74
20.4
01
14
37.0
28.0
10.0
-
25.4
-
-
-
-
28.6
39.4
39.4
-
124
39.6
+
24
3.0
-
21.8
10.4
20.0
1.1
0.9
0.2
04
0e1
3.6
1.4
an
-
-
32.3
+11.6
27.0
1944
January
18.2
+ 3.2
16.3
-
D
-
0.7
LO
0.4
0.2
24
5
W
in
(a) For monthly breakdown see tabulations prior to April 23, 1941.
(b) For monthly breakdown see tabulations prior to October 8, 1941.
(c) For monthly breakdown see tabulations prior to October 14, 1942.
(d) For monthly breakdown see tabulations prior to September 29, 1943.
(e) Reflects clanges in all dollar holdings payable on demand or maturing in one year.
13 Does not reflect transactions in short term securities.
masco
from Tark accounts Canadian
Chartered
Banka
N
99
CABLE TO WINANT AND MANN, LONDON, FROM WAR REFUGEE BOARD.
Reference your no. 7191, September 2, 1944, concerning
License W-2258.
Information given you by Poles incorrect (repeat incorrect).
Remittances to finance operations envisaged by License W-2258 wall be
made by Polish War Relief of USA, Inc. through regular banking channels
to Jan Kwapinski and/or Jan Stanozyk and/or Ludwik Grosfeld and/or
Emanuel Scherer, London.
=
Use of dollar currency is an acceptable way of implementing
third method specified in license.
THIS IS WRB CABLE TO LONDON NO. 2
4:30 p.m.
September 9, 1944
FH:lab 9/8/44
100
Caserta
DSH-693
Distribution of
Dated
September 9, 1944
special arrangement.
Rec'd
10:24 p.m.
true reading only by
(SECREW W)
Secretary of State,
Washington.
US URGENT
338, September 9, 6 p.m.
Ackerman's 108.
Head of OSS mission Bucharest, just returned
here, received communication from International Red
Cross that Germans intend to arrest the 300,000 Jews
still free in Hungary and commence another mass deportation to Germany. Raymond Courvoisier of Intercross who was in Hungary three weeks ago urged all
immediate steps be taken to expedite emigration to
Palestine. OSS also urges that a WRB representative
go to Buhharest soon as possible not only to aid above
movement but also to give assistance to 2000 to 3000
Jews now in Rumania who are destitute and to aid
approximately 500 American citizens also in Rumania.
$5000 fund requested by OSS will not be used by it
since problem is too great for it to handle. However
Colonel Rodrigo of OSS spent $650 to aid five Hungarian
and three Polish families to get to Constanza enroute Palestine. He asks that money be refunded by
payment to his account OSS Washington. He is also
trying to get transport plane assigned for flights
from Buoharest to Istanbul. If decided that
Hirschmann should go to Bucharest he should imme-
diately contact OSS mission Istanbul to ascertain
whether plane has been secured and to arrange passage.
More complete address mission will be cabled later.
Correction Rodrigo's funds were personal and
should be deposited his account Riggs Bank.
Repeated to Ankara.
KIRK
JMS
NPL
101
CABLE FROM WAR REFUGEE BOARD TO MINISTER NORWEB FOR DEXTER, LISBON,
PORTUGAL.
Please refer to your 2657 of August 29, concerning the projects
which remain to be carried out by the Board from Portugal.
Since, in your opinion, the problems outlined by you can within
three and possibly two months be brough to the stage where the
regular Legation staff can carry on the functions still remaining,
it is suggested that you plan to conclude within that time, and in
any case as rapidly as possible, your operations in Portugal as
Special Representative of the War Refugee Board.
In regard to your recommendation that a representative be sent
to France under the auspices of the War Refugee Board, reference is
made to our
of
indicating that the Board's
activities should be striotly limited to the rescue and relief of
refugees in enemy occupied territory and that refugee problems in
liberated areas are not regarded as being within the Board's functions.
At the present time, the military situation in the West is too fluid
to make feasible the use of France as a base for rescue and relief
operations ine enemy territory.
Pursuant to your suggestion, the Unitarian Service Committee
is being advised that you and Widen may soon be free to return to
your previous employment if the Committee desires your services.
Pehle expresses his appreciation and thanks for the services
you have rendered the Board.
THIS IS WRB CABLE TO LISBONNO. 88
$:30 p.m.
September 9, 1944
MJMarks:hmd
9/8/44
102
FEM
Distribution of true
reading only by special
September 9, 1944
arrangement. (SECRET)
5 p.m.
AMEMBASSY,
LISBON
2408
The following for Dexter is WRB 86.
A communication from Amembassy, Caracas, August 22,
states that the Venezuelan Government has authorized its
legation at Lisbon to visa the passports of Jewish
refugees, especially children, who are traveling to the
American continent, even though they may not be pro-
ceeding to Venezuelan territory.
You may find the foregoing helpful in inducing
Portuguese authoritiesto grant large numbers of transit
visas to Jews in Hungary and other German-controlled
territories. Please consult Venezuelan Legation and
Portuguese authorities and advise of opportunities in
this respect.
HULL
(GEW)
WRB:MMV:KG
9/1/44
WE
SE
BOL
Miss Chauncey (For the Sec'y), Abrahamson, Akmin, Oohn, DuBois, Drury,
Friedman,
Gaston, Hodel,
Laughlin,
Lesser,
Mannon,
Sargoy, Standish,
Weinstein,
Cable
Control
Files Marks, McCormack, Peble,
103
CABLE TO AMEMBASSY, MADRID, SPAIN
Department and Board are advised that there are in camp Belsenbergen
near Hanover about 155 Sephardic Jews having Spanish passports whose
entry into Spain has been promised by the Spanish government and for
whom, it is understood, exit permits are now available.
In view of imminent danger to lives of these persons, you are re-
quested immediately and vigorously to intercede with Spanish government
to bring about their release and admission into Spain. Assurances
previously given regarding speedy evacuation of refugees from Spanish
territory fully apply to these persons.
Should transportation be impossible in view of military developments,
Spanish government should be urged to exercise greatest possible vigilance
in safeguarding the lives of these persons, by placing them under direct
protection of Spanish diplomatic or consular personnel and by all other
appropriate methods.
4:30 p.m.
September 9, 1944
BAkzinsar 9/8/44
104
RP-686
Stockholm
reading only by
Dated September 9, 1944
Distribution of true
special arrangement
Rec'd
(SECRET W)
9:31 p.m.
Secretary of State
Washington
3582, September 9, 9 p.m.
Latest cables received. (Following is for Rabbis Aron
Kotler and Abraham Kalmanowitz of Vaadhahatsalah Emergency
Committee from Rabbi Wolbe and is our No. 78 for WRB). On
account of renewed deportations Swedish Ambassador and all
other neutral Ambassadors visited Northy and
received promise that Hungarian Government will do everything
to end deportations.
The Swedish Government has sent a special representative
to Budapest to handle all problems in connection with the rescue
of Jews. It is planned to buy houses for account Swedish Legation
under Swedish extraterritorial rights and in which Jews should
live.
Our authorities are granting immigration visas, letters
of protection, provisional passports and citizenships. We have
agreed to some expenses in this connection to which we hope you will
agree. Following your cable advice, I visited Professor Ehrenpreis.
He says that more than has already been undertaken cannot be done
and no special arrangements can be undertaken even for children.
A renewed appeal to King is absolutely impossible. Also we have
presently no possibilities for the group in Bergen Belsen. Only
food parcels could be sent from here. It is hoped by next week
that general licenses will be effectuated for food parcels
principally granted for Jews in Germany. Please also inform
Jacob Rosenheim about this. With regard to Lithuania,
it is still impossible to obtain connections and therefore we
have not been able to obtain contact with the camp at Krotingen.
JOHNSON
EDA
105
ORIGINAL TEXT OF TELEGRAM SENT
TO:
Secretary of nState, Washington
American Legation, Bern
DATED:
September 9, 1944
NUMBER:
3120
FROM:
SECRET
FOR MCCLELLAND.
Reference is made to your 5579 of August 26, paragraph one.
You may draw attention of Intercross to text of this Government's
reply to Intercross of August 11 (see Department's 2657 of
August 2) in which it undertook to arrange for the care of all
Jews permitted to leave Hungary under the present circumstances,
who reach neutral or United Nations' territory, and to find for
them temporary havens of refuge. Nothing in that reply implied
limitation to Jews in possession of Palestine certificates or
planning to go to Palestine.
Furthermore, you may draw attention of Intercross to special
provisions made in favor of persons to whom American immigration
visas were issued or authorized after July 1, 1941 (Department's
2605 of August 1); to extension of children's visa facilities to
Jewish children from Hungary (Department's 2877 of August 21);
to provisions in favor of close relatives of American citizens
and alien residents (Department's 2918 of August 24); and to
assurances obtained by this Government from Ireland and Honduras
in favor of children from Hungary (Department's 2978 of August 29,
WRB 1515to Bern). In addition, Nicaragua has agreed to admit
100 children from Hungary, and Mexico has expredsed its willingness to give emergency shelter to refugees from enemy territory
for duration of war.
The cooperation of Switzerland, Sweden, Spain, Portugal, and
Turkey has also been requested by this Government in respect of
admission of any Jews who would be permitted to leave Hungary,
and these requests have been partly successful. Spain alone has
authorized 2,000 visas. Sweden is reported to have agreed to
admit children, numerous adults, and persons to whom American
visas were issued or authorised after July 1, 1944. Rumania
is also cooperating, but current events on Hungerian-Rumanian
border presultably preclude evacuation via Rumania.
Pointing out the foreoging to Intercross, you may reiterate
this Government's refusal ever to limit its undertakings with
respect to the emigration of Jews from Hungary to any number or
particular category of Jews or to Jews going to any particular
country and its protest against the attempt of German and Hun-
garian authorities to introduce such arbitrary limitations.
Recommendation contained in last paragraph of your 5579 is
appreciated and is bein acted upon.
THIS IS WRB CABLE TO BERN NO. 158
106
CABLE TO MINISTER HARRISON AND MOCLELLAND, BERN, SWITZERLAND
1. Reference is made to your 5689 of August 31.
In replying to Swiss notice ofAugust 26, please ask Swiss political
department to emphasize that the German arguments notwithstanding, this
Government is unable to recognize any right of the German authorities to
pass upon the validity of documents issued in the name of other sovereign
governments. Furthermore, none of the American republics upon whose
documents this German procedure is being practiced can, in justice to their
own proper interests, allow that practice to go unquestioned. Accordingly,
this Government insists on the stand taken by it in Department's 2490 of
July 21 paragraph two and rejects as irrelevant any attempt by German
officials to question the validity of Latin American documents whether on
the basis of antecedents of Jews involved or of the type of identity papers
or on any other basis.
It should be emphasized in this connection that German attitude was at
first to doubt the eligibility of persons involved for exchange and the
acceptance of documents involved by issuing governments. Now that eligibility for exchange has been confirmed and the several issuing governments
have notified Germany through protecting powers that the document holders
must be protected notwithstanding any doubts as to the validity of the
documents, German officials introduce new excuses for their failure to comply
All these excuses are emphatically rejected by this Government and the
attention of German officials involved is drawn to the serious consequences
of their attitude.
In this connection, please advise whether you have been able to convey
to proper. quarters the message contained in paragraph three of Department's
2490 of July 21. It is believed that in the 'light of the military situation
it is possible to away German officials by confronting them with a sufficiently emphatic statement of this Government's position.
With reference to lists of bearers of Latin American documents
suggested in ultimate and penultimate paragraphs of your 5689, disturbed
war conditions have interfered with communications between Latin American
governments and their European missions, resulting in incomplete records
which make the compilation of such lists difficult. However, to assist
the Swiss in this matter it is believed that the Legation should endeavor
to obtain with the aid of McClelland and the local representatives of
organizations that have records on the subject, lists which are as
complete as possible with a view to transmitting them to the Swiss
authorities. The Department will suggest to various Latin American
governments the urgency of confirming to Swiss authorities the authenticity
of such lists. It is hoped, however, that in view of the humanitarian
considerations involved and of this country's status as Power handling
exchange of persons whose eligibility would be established by being
placed on the list, Swiss officials will agree to transmit the lists
-2-
107
to Germany even without such confirmation. You may include in such lists
the persons envisaged in Department's 2407 of July 13 paragraph numbered six.
Precaution should be taken, however, to inform Swiss and German
authorities that such lists cannot (repeat not) be considered complete.
Should Germany inquire of Swiss Legation or government whether any
particular individual not (repeat not) appearing on such lists is pro-
tected by Switzerland, it is suggested that an answer along the following
lines would be both substantially correct and calculated to save human
lives: Owing to wartime conditions, Swiss records regarding citizens of
countries under Swiss protection are incomplete and so are records of
several Latin American legations in Bern; if Germany would inform Switzers
land of the claimed nationality of the person involved, inquiry will be
made of the government of the country concerned; and the Swiss will consider it understood that pending receipt of an answer to such inquiry such
person will be treated as and accorded all the rights and privileges of a
citizen of the country whose nationality he claims.
2. The following information received from Amembassies in various
countries is transmitted for Mc01elland's information and guidance in connection with protection of victime of enemy persecution, representation in
Hungary, and shelters for Jewish children from Hungary:
Portuguese government is in agreement in principle to admit for temporary
refuge Hungarian Jewish refugees, preferably in lots of three to four hundred.
Portuguese government has already informed Hungarian government of its
interest in such people. It has persuaded Hungarian government to issue
exit visas and has itself given Portuguese visas to a number of them, but
Germans have refused to permit them to leave as yet. Some of these persons
are now in asylum in the Portuguese legation in Hungary. The Hungarian
government is thus aware of the Portuguese interest in this problem.
Venezuelan government has authorized its legation in Lisbon to visa the
passports of Jewish refugees, especially children, who are traveling to the
American continent, even though they may not be proceeding to Venezuelan
territory. It has also requested the Swiss Political Department to extend
the protection of Venezuelan interests to Hungarian territory and other
countries of Central and Eastern Europe for the prupose of aiding the bearers
of Venezuelan passports in those regions.
President Vargas of Brazil has approved the plan to bring 500 refugee
children to Brasil, provided that the Brazilian Government would not incure
the expenses of transportation to and maintenance in Brasil. He has accorda
ingly charged General Ivo Soares, Chairman of the Brazilian Red Cross, with
asking suitable arrangements with appropriate Jewish welfare agencies in
Brasil to take care of them. Official announcement is to follow shortly.
Government of Uruguay has agreed to the admittance of 500 refugee
children.
3. With reference to Department's 2485 of July 21, Haitian Legation
in Bern was instructed on July 31 to request the Swiss to present to
108
the German Government the following declaration of the Haitian Government:
QUOTE Inasmuch as a certain number of individuals of the Jewish
race naturalized as Haitians abroad in pursuance of the Decree-Lav
of May 29, 1939, were living in territories controlled by Germany
and Italy; that they have been detained there continuously for
reasons of force majeure since the declaration of war by the
Republic of Haiti until this date, the Haitian Government declares:
that the persons in the above-mentioned category have been unable
to comply with the Decree-Law of February 4, 1942, enjoining, under
penalty of the loss of Haitian nationality, all those who had acquired Haitian naturalisation abroad to return to Haiti before
August 5, 1942. Consequently, it is hereby made known to whom it
may concern that the said persons are not affected by the Decree-Law
of February 4, 1942. UNQUOTE
In this connection, the Board's attention has been called to the
test case of Mrs. Zelman Solowiejozyk, age 42, and Miss Sephora Solowiejczyk,
age 7, whose last known address was Jacob Jacobs Street 37. Antwerp, Belgium,
and who are the wife and daughter of Zelman Solowiejczyk, now residing in
New York City. Under the foregoing declaration, these women, whose Haitian
naturalization is said to have been promulgated in the Moniteur of Haiti on
December 23, 1939, retain their Haitian nationality. Please take all appropriate action to insure that these women, if still in German hands, be
as Haitian nationals. Consult with Haitian Minister if you deem
ittreated
advisable.
The Haitian Legation has also been instructed not to question at
present the validity of Haitian passports held by persons who are now in
occupied territories and who could be the object of persecution by the
enemy until such persons arrive in a place of safety and to inform the
Federal Department of these instructions.
THIS IS WRB CABLE TO BEEN NO. 164
9:20 p.m.
September 9, 1944
Miss Chauncey (For the Sec'y), Abrahamson, Cohn, DuBois, Friedman, Hodel,
Laughlin, Lesser, Mannon, McCormack, Cable Control Files.
109
fable TO MINISTER HARRISON AND MCCLELLAND, BERN, SWITZERLAND
Please deliver the following message from Vead Hahatzala to
Sternbuch, St. Gallen:
QUOTE Please detail your rescue activities in
Hungary and Slovakia to McClelland.
Please also communicate to McClelland names and
addresses of trusted leaders of rescue work in Hungary
and Slevakia. It is hoped that this will enable these
persons to obtain financial assistance for rescue
activities through WRB. UNQUOTE
The following is for McClelland from WRB:
Open receipt of names and addresses please cable them at once to
WRB.
THIS IS WRB CABLE TO BERN NO. 165
9:20 a.m.
September 9, 1944
Miss Chauncey (For the Sec'y), Abrahamson, Cohn, DuBois, Friedman,
Hedel, Laughlin, Lesser, Mannon, McCermack, Cable Control Files.
BAksin:LSLessertar 9/7/44
110
CABLE TO HARRISON, BERN, FOR MCCLELLAND FROM DEPARTMENT AND WAR
REFUGED BOARD.
Please report at once on Saly Mayer negetiations of
September 4 and 5.
For your information, Ambassador Nerweb has cabled that
Hungarian Charge d'Affaires, Lisben, states he has received telegram
from his Government dated September 3, substance of which is as follows:
His Government has no knowledge of and no part in
any conversations which the Gestape with or without
representatives of the Hungarian Jewish community is
carrying on with any other persons private or official
or with any allied body. All deportations from Hungary
were stopped completely some weeks age and no incident
concerning Jews has occurred in Hungary since the
beginning of August when an incident caused by an inferior
Gestape agent was sharply complained about by the Hun
garian Government. The government takes the position that
it absolutely excludes any interference in Hungarian
Jewish affairs by any Germany authority.
THIS IS WRB CABLE TO BERN NO. 166
1:55 p.m.
September 9, 1944
FH:1ab 9/9/44
111
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Bern
TO:
Secretary of State, Washington
DATED:
September 9, 1944
NUMBER: 5971
CONFIDENTIAL
From McClelland for WRB.
With reference to Department's message of September 7,
No. 3091, the suggestions of the World Jewish Congress with regard
to "camps" whose inclusion in 300,000 parcel program is urged by them
will be discussed by me with ICRC unofficially. However, since
at least nine-tenths of sites mentioned are quite inaccessible to
ICRC (which would not be able to enforce even remotely the minimum
necessary control as to allocation and reception of parcels); I cannot
be very sanguine as to possible outcome.
HARRISON
DCR:GPW
9-11-44
112
DSH-634
Ankara
This telegram must be
paraphrased before being
Dated
September 9, 1944
Bec'd
6:52 p.m.
communicated to anyone
other than a Government
Agency. (RESTRICTED)
Secretary of State,
Washington.
1695, September 9, 4 p.m.
FROM AMBASSADOR STEINHARDT AND HIRSCHMANN TO WAR
REFUGEE BOARD.
Ankara's 152.
It is reported here that a royal decree issued by
the Government of Rumania restores equal rights to all
Rumanians without regard to race or religion. We are
informed further that all royal decrees based on
differentiation of race or religion have been abolished.
STEINHARDT
EMB
Copy No
11
113
NOT TO BE RETRANSMITTED
SECRET
OPTEL No. 294
Information received up to 10 A.M. 9th September 1944.
1. NAVAL
Home Waters 7th. Large convoys of coasters arrived DIEPPE.
Mediterranean 5th. First liberty ships beathed at
TOULON. During 6th and 7th. Britich ships
shelled enemy poisition near RIMINI.
2. MILITARY
N.W. Europe Operations of 3rd. U.S. Army hindered by lack
of fuel and in 8 nsequence enemy have reoccupied NANCY and METZ. U.S. troops retain bridgehead in vicinity
PONT A MOUSSON. First U.S. Army have occupied LIEGE and VERVIERS.
Second British Army has widened and deepened bridgehead over ALBERT
Canal. First Canadian Army have reached THIELT, ROULERS and
DIXMUDE.
Southern France
French forces have reached within 22miles
of Belfort. U.S. Forces are encountering
some opposition in attacks on BESANCON while French Army operating
further West are within three miles of BEAUNE.
Italy Heavy fighting continues in ADRIATIC Sector. Little
change in our forward positions and a number of enemy
counter attacks repulsed.
Burma
In CHINDWIN area our troops have occupied SITTAUNG
20 miles E of TAMU. NORTH BURMA. Allied forces
advancing S. from MYITKYINA have consolidated KHAZU, 20 miles S.
of MYITKYINA and exploited astwards as far as BURMA-CHINA border.
In MOGAUNG area HOPIN, 33 miles S.W. of MOGAUNG has been reached.
3. AIR OPERATIONS
Western Front
8th. Bomber Command dropped 516 tons on
targets at HAVRE with good results. E
Escorted Allied bombers (20 missing) dropped 900 tons on Chemical
Works LUDWIGSHAFEN, 527 tons on railway targets KARLSRUHE, 486 tons
on diesel works near MAINTZ and 340 tons on ordnance depot MAINTZ;
results good to excellent. Medium bombers dropped 97 tons on
gun positions BOULOGNE area with fair to good results. Fighter
bombers attacked road and railway transport in W. GERMANY destroying
or damag ing 80 locomitives, over 170 wagons and ten aircraft on
ground.
8th/9th. Sixty three Mosquitoes despatched, of which
45 attacked NUREMBERG, without loss.
Yugoslavia 8th. Heavy bombers (three missing) dropped
518 tons on railway centres BROD, SARAJEVO and NIS, 220 tons on
railway bridges BROD and SAVA. Results good to excellent.
Mustangs (three missing) attacked ILANDZA, 35 miles N.E. BELGRADE
destroying 36 enemy aircraft on ground.
China 4th. 194 medium and fighter bombers (three missing)
attacked military targets in HANYANG-LUNGLING area
causing much damage and casualties to personnel and horses.
COPY NO
114
NOT TO BE RETRANSMITTED
SECRET
OPTEL No. 295
Information received up to 10 A.M. 10th September 1944.
1. MILITARY
N.W. Europe U.S. troops of Ninth Army have made slight
advances against BREST. U.S. Third Army has
formed new bridgeheads across MOSELLE against moderately strong
opposition. Elements of U.S. First Army have reached MAASTRICHT.
On the Second British Army Front more armoured units have crossed
ALBERT CANAL. ANTWERP is completely in our hands. Troops of
First Canadian Army are closing in on CALAIS, BOULOGNE, DUNKIRK and
generally mopping up enemy in coastal belt.
French troops continue to encounter stiff
Southern France
enemy resistance south of BELFORT. U.S.
troops have captured BESANCON and advanced Northwards to a point
approximately seven miles southwest of VESOUL. French forces have
captured CEAUNE.
Italy No change in our sition on ADRIATIC Coast where
enemy cou or attacks have been driven back at
several points. In West our patrols have reached southern outskirts
of PISTOIA without opp sition.
Russia
Russians report progress north and northwest of
SIBIU (100 miles northwest PLOESTI), a thrust to
a point 60 miles southeast of RUSTCHUK and the capture of BURGAS.
2. NAVAL
East Indies August 22nd. A British submarine torpedoed are
probably sank 3,000 ton ship off PORT BLAIR.
Anti-submarine operations 9th. A British Corvette made very promis-ing attack on U-Boat off Northwest coast of IRELAND.
Mediterranean
6th/7th. Coastal forces damaged an enemy
minelayer off RIMINI. 7th/8th. Coastal
forces sank an E-boat off the DALMATION Coast. Allied ships on
patrol off the south coast of FRANCE unsuccessfully attacked by
explosive motor boats five of which were sunk and one probably sunk.
3. AIR OPERATIONS
Western Front 9th. Escorted Heavies dropped 841 tons on
MANNHEIM. 534 tons on DUSSELDORF, 515 tons
on GUSTAVSBURG (near MAINZ). 183 tons on LUDWIGSHAFEN and 156 tons
0
on other targets. Pathfinder technique used in all cases. Medium
and light bombers dropped 87 tons on strong points BOULOGNE.
Fighters destroyed or damaged 98 locomotives, nearly 500 MT and
other vehicles. 807 Dakotas and 5 Ansons carried supplies to
NORTHERN FRANCE while 68 Fortresses dropped supplies in SOUTHERN
FRANCE. Enemy casualties 17.3.9. for 23 Bombers, including 21
Heavies and 9 Fighters.
9th/10th. 228 aircraft despatched including 137 ton
MUNCHEN GLADBACK. Attacks carried out visually without loss.
6th/7th. Bombers dropped 157 tons on
railway centre BOLOGNA. 17 Wellingtons
laid mines in DANUBE. 7th. Adverse weather prevented operations
Mediterranean
in ITALY. 93 aircraft attacked communications and other targets
in YUGOSLAVIA and ALBANIA.
8th. Fighters bombers attacked bridges over PO, transport
communications, and close support targets in Italian battle area.
Also locomotives and MT in FRANCE. Liner REE attacked by eight
Beaufighters at TRIESTE, reported listing and on fire.
Burma 8th. 225 aircraft flew offensive sorties against
railway and other targets with good results.
115
CORRECTED COPY
MS-198
Ankara
This telegram must be
paraphrased before being
Dated
September 10, 1944
other than a Government
Rec'd
12:30 p.m., 12th
communicated to anyone
agency. (RESTRICTED)
Secretary of State,
Washington.
1700, September 10, 6 p.m.
FROM HIRSCHMANN TO WRB, ANKARA's No. 153.
Reference is made to Ankara's 148. I have
had further talks with Denenberg regarding the relief
activities his committee in Turkey. He has now
agreed that the expenditures which have thus far
been made by him will be financed from other sources.
Hernow proposes that the entire $5000 be transferred to a
committee composed of scholars and former labor and political leaders from Central European and of the Bank of
England now resident in Istanbul for administration
under a relief program to be conducted on behalf of the
IRRC. We have approved this project as the committee
appears to be reliable and have 80 advised Denenberg.
STEINHARDT
WSB
116
FOR VICTORY
OFFICE OF
TREASURY DEPARTMENT
BUY
*
WASHINGTON 25
BONDS
WAR
STAMPS
THE
SECRETARY
September 11, 1944
MEMORANDUM TO THE SECRETARY
I am attaching a memorandum
prepared by Mr. Clayton's office for
members of the Surplus War Property Policy
Board. While it occupies a number of
pages I believe it makes worthwhile reading.
show
END. Olrich
Assistant to the Secretary
Attachment
117
OFFICE OF WAR MOBILIZATION
SURPLUS WAR PROPERTY ADMINISTRATION
011 VERMONT AVENUE NW.
OFFICE OF ADMINISTRATOR
WASHINGTON 25, D. c.
September 2, 1944
MEMORANDUM FOR MEMBERS OF SURPLUS WAR PROPERTY
POLICY BOARD
Subject: Monthly Status Report, July, 1944
The disposal agencies were requested, on August 4, 1944,
to submit each month to SWPA certain statistics on the acquisition,
disposition and inventories of surplus war property.
Transmitted herewith for your information is a summary
analysis of the data submitted thus far by the disposal agencies.
This is a first attempt to summarize the status of surplus war property. We hope to improve the form and content of the analysis as
more complete data become available and as the period of experience
lengthens.
Your comments and suggestions are invited,
W. L. Clayton
Administrator
118
SURPLUS WAR PROPERTY ADMINISTRATION
Monthly Status Report for
July, 1944
Acquisitions, Dispositions and Inventories
of Surplus War Property
August 31, 1944
Washington, D. C.
6-7815 C
119
Acquisitions, Dispositions and Inventories
of Surplus War Property
Summary
The status of surplus war property, according to reports submitted
by five disposal agencies, may be summarised as follows for the period
beginning May 15, 1944, when SWPA Regulation No. 1 became effective:
May 15 to
July
1944
Aug. 15. 1944
(Millions)
Surpluses held by disposal agencies,
beginning of period
$150
$ 63
99
288
249
351
16
38
233
313
Property declared surplus by owning
agencies
Disposed of by disposal agencies
Balance on hand, end of period
Thus far, SWPA has received statements on surplus war property from
the following authorized disposal agencies:
Procurement Division, Treasury Department
Reconstruction Finance Corporation
Maritime Commission
Foreign Economic Administration
War Food Administration
Other agencies do not report to SWPA the surplus property which they
themselves sell. Our present statistics therefore do not include certain
quantities of surplus property, for example, contract termination inventories, and scrap and salvage disposed of by the so-called "owning agencies".
6-7615 p1 of 10 bu-cos-up
-2Origin of surpluses.
By the end of July more than 170 million dollars of surplus, or
85 per cent of the total of 200 million dollars of property declared
surplus to the five disposal agencies, was reported by the War Department
alone. These surpluses consisted principally of aircraft and aircraft
equipment (67 million dollars), motor vehicles (50 million dollars),
medical supplies (21 million dollars), and radio tubes and parts (15 mil-
lion dollars). The Navy Department made declarations of surplus amounting
to 17 million dollars, or about 9 per cent of the total reported up to
July 31. These consisted in large part of small craft, aircraft and parts,
and a wide variety of materiel in small lots.
Growth.
Inventories, though still moderate in magnitude, are growing rapidly,
having increased from 63 million dollars on May 15, 1944, to more than
313 million dollars on August 15, 1944. 1 All disposal agencies contributed to the growth in inventories, although not proportionately.
Inventories of RFC represented 66 per cent of the total at the beginning
of June, and increased to 75 per cent at the end of July. In contrast,
the share represented by the inventories of Procurement Division, Treasury
Department, declined from 34 per cent to 24 per cent during the same
interval,
Rates of acquisition and disposal 2
Inventories of surplus property are growing rapidly, because surplus
property reported to the disposal agencies in both June and July substantially exceeded the aggregate value of the property dispositions. Aoquisitions of surplus property were about 97 million dollars in June and 99
million dollars in July, whereas dispositions amounted to only 14 million
dollars and 16 million dollars in the corresponding months.
1/ The dollar value at which inventories of surplus property are reported
is the original cost of the property, except for Procurement Division of
Treasury Department, for which a part of the inventory ("confirmed inventories") represents the appraised value of the property.
2 The term "acquisition" means the declaration or report of surplus property received by the disposal agencies. The property customarily remains
in possession of the reporting owning agency.
6-7814 p2 bu
120
-3 - -
Because of the limited period covered by our data, we are not yet
able to determine a wholly satisfactory indication of the rate at which
the agencies are disposing of their surpluses. However, by comparing
total dispositions during the month with beginning inventories plus acquisitions during the month, we obtain the following "rates of disposal"
for July:
Per cent
Procurement Division, Treasury Department
16.9
Reconstruction Finance Corporation
Aircraft and Related Equipment
Other Property
1,4
4.7
Maritime Commission
4.2
0.6
4.1
War Food Administration
Total, all disposal agencies
Clearly, at this early stage in the disposition of surplus war
property, the "rates of disposal" shown above may not be significant
inasauch as wide variations may be expected to occur over a longer
period and as between the different agencies. Nevertheless, the differences indicate that certain types of surplus property move much more
rapidly than others. Certain types of items, for example, fighter planes
and numerous other munitions, cannot be disposed of in their existing
state and may require modification or even scrapping before disposal is
possible.
Realisations
The proportion of cost (appraised value for Treasury-Procurement)
being realised by sales is indicated by the following data for July:
Cost of
Agency
Per cent
Property
Sales
Realised
(Thousands)
Treasury Department,
Procurement Division*
$9,013
$7,617
84.5
Reconstruction Finance
Corporation
4,976
4,130
83.0
60
28
46.6
Maritime Commission
War Food Administration
Total, disposal agencies
1
1
$14,050
$11,776
100,0
83.8
*Confirmed inventory only.
6-7615 P3 bu
-4- -
o
Current rates of realisation may be higher than it is possible
to maintain, inasauch as present sales probably consist of better
quality items that are readily disposable. After sales have continued
for a longer period, it is probable that a larger part of the undia-
posed surpluses will consist of lower quality or less desirable items,
which are likely to be sold at a smaller proportion of cost.
SURPLUS WAR PROPERTY
SUMMARY OF
ACQUISITIONS, DISPOSITIONS AND INVENTORIES
JUNE AND JULY 1944
MILLION
TOTAL DOLLAR VALUES
DOLLARS
233
MARITIME COMMISSION
220
PROCUREMENT DIVISION (Transit and old liquidation accounts
included in July but excluded in June)
200
RECONSTRUCTION FINANCE CORPORATION
.80
160
150
132
140
120
100
100
79
80
67
60
40
16
14
IIIIII
20
0
JUNE
JULY
JUNE
JULY
JUNE
JULY
JUNE JULY
INVENTORIES
ACQUISITIONS
DISPOSITIONS
INVENTORIES
BEGINNING OF MONTH
DURING MONTH
DURING MONTH
END OF MONTH
SWPA - AUGUST 29, 1944
6-7818 P4 bu
121
-5Activities of Principal Disposal Agencies
Reconstruction Finance Corporation
Inventories. On August 15, RFC had on hand 228 million dollars of
surplus property, compared with 175 million dollars at the end of July,
and only 44 million dollars at the end of May. Nearly 80 per cent of
the balance on August 15 consisted of property declared surplus by other
owning agencies. The largest single category of surplus consisted of
airplanes, gliders and aircraft parts (149 million dollars on August 15).
Other leading surpluses on August 15 were:
Plants and miscellaneous real estate (21 million dollars),
construction materials (18 million dollars), communications
equipment (16 million dollars), and machine tools (4 million
dollars).
Dispositions. July dispositions totalled $4,976,000, the total
reported cost of property sold, In the predominant categories of surplus
property the disposals were not large, the principal during July being
$1,665,000 of machine tools, $1,536,000 of airplanes, and $783,000 of
construction materials, It is notable that 94 per cent of total disposi-
tions in July consisted of RFC-owned surplus property, the small remainder
(6%) being surplus declared to RFC by other agencies.
Plants. Thus far, 17 industrial plants have actually been declared
surplus, of which 5 were subsequently reclaimed by the owning agencies. 1/
One plant, producing altimeters at Binghanton, New York, which cost
$239,500 has been sold for $175,000 (reproduction cost less depreciation).
In the construction of the DPC plants unusually heavy costs were
incurred, due to the necessity for speed, such as overtime pay, delays
in obtaining materials, construction under unfavorable weather condi-
tions, inability to get sufficient skilled labor, and similar causes.
Additional costs will also be incurred in the way of depreciation and
necessary alterations to prepare the plants for peace-time operations.
The RFC will make allowance for these unusual items in setting prices
on these plants.
Detailed engineering surveys are being made of all DPC-owned plants
to obtain the information required to determine their post-war potentialities. Furthermore, detailed studies are being made of large individual
plants to determine the possibilities of by-products, conversion to other
1 Plants actually declared surplus are not to be confused with DPC-owned
properties sold to lessees who choose to exercise their option included in
the operating contract. 11 such plants, sold at a total price of 23 million
dollars, have thus far been disposed of through the exercise of options,
almost all of them on the basis of original cost to DPC.
6-7815 PB bu
-6types of output, and the development of complementary plants. For example,
RFC is studying the development of new methods for producing by-products
at several magnesium plants and is also exploring the possibilities of
converting some of the larger industrial plants into "multiple-use" facilities corresponding, for example, to Bush Terminal.
550 DPC plants have been canvassed by DPC engineers to arrange quick
clearance when contracts are terminated and to discuss the possibilities
of options being exercised and equipment in the plants being purchased.
Machine Tools. The United States Government owns between 500,000
and 600,000 machine tools, the equivalent, it is estimated, of 25 years'
normal pre-war production in the United States. 4,595 machine tools out
of a total of 5,215 declared surplus up to August 15 have been disposed
of.
In order to make it easy for small concerns to buy machine tools,
the RFC will sell tools for 15% cash down, the balance to be paid in
monthly installments over a period of five years at 4% interest. There
will be a limit of $100,000 on these terms to any one buyer.
SWPA Regulation No. 3, August 9, 1944, which established the price
policy for standard general-purpose machine tools, provides monthly
schedules of depreciation rates to be applied to the original price of
the manufacturer of the tool. The schedules provide a 5-point premium
in price for tools sold to the lessee, compared with sales to others,
inasauch as the user of the tools knows their past maintenance and ourrent condition better than other prospective buyers.
Aircraft. Aviation surpluses declared to RFC by the Aray and Navy
up to August 15 represent an aggregate cost of 145 million dollars.
8,234 aircraft and gliders are included, of which only one has been
sold. The others are expected to go on sale shortly.
In addition to military aircraft, 5,315 surplus training planes,
owned by DPC and used in the War Training Service program of the Civil
Aeronautics Administration, have been in process of disposition, 4,037
planes were sold up to August 15 at an average of 60 per cent of cost.
Several programs of aircraft disposal have been launched, One being
conducted at Vandalia, Ohio, with the cooperation of the Army Air Forces
and the Civil Aeronautics Administration, is for the purpose of determining if military aircraft likely to be declared surplus can be assigned
civil licenses or can be used for specialised industrial or private use.
The possibilities of disposing of surplus aircraft for ground training
purposes are also being explored through an educational program involving
more than 30,000 schools and colleges in the United States.
6-7618 P6 bu
122
-7Procurement Division. Treasury Department.
Inventories. Surpluses on hand August 15 totalled 75 million dollars,
ocepared with 56 million dollars at the end of July and 23 million dollars
at the end of May. More than one-half of the total inventory is composed
of property in "transit account" which has not yet been appraised for disposal. Surpluses ready for disposal on August 15 totalled 33 million
dollars (appraised value) and consisted of a wide variety of products,
those exceeding 1 million dollars each, being motor vehicles, furniture
and fixtures, leather, fabricated textile products (not including apparel),
metal industry products, apparel (not including footwear), and fabricated
metal basic products.
Dispositions. Surplus property appraised at 11 million dollars was
disposed of in July compared with 4 million dollars in June.
Approximately 4,800 motor vehicles, appraised at $4,300,000, were on
hand August 15. Thus far, more than 23,000 trucks have been declared to
the Procurement Division, and 30,000 more surplus trucks are expected to
be received soon. Generally, trucks are disposed of quickly after being
inspected and listed for disposal. Dispositions of motor vehicles have
been large compared with recent acquisitions; during July and the first
half of August the Procurement Division acquired motor vehicles appraised
at $3,883,000 whereas dispositions totalled $6,254,000.
The Procurement Division of Treasury Department has placed surplus
trucks on the market as quickly as possible because of the aoute current
demand, particularly on the part of farmers who need trucks to save their
crops. The extent to which farmers have benefited by recent sales of surplus trucks is indicated by the attached letter from the War Food Administration (see page 9).
The distribution of trucks geographically has been made according to
information obtained from the Office of Defense Transportation indicating
those areas of the country most critically in need of truck transportation.
Sales have been made in such areas through hundreds of dealers. For example, in the Boston region, 850 trucks were distributed through 125 dealers;
in the New York region, 2,300 trucks went to more than 600 dealers; and in
Texas, 2,041 trucks went to 500 dealers. An effort has been made to limit
sales to not more than 5 trucks per dealer, although special circumstances
sometimes have made it advisable to vary this. Sales thus far have averaged
less than 2 trucks per dealer per month.
Furniture and fixtures, consisting largely of used bed mattresses,
have not been readily sold, Inventories had an appraised value of
$2,990,000 on August 15 and during the preceding 45 days dispositions
totalled only $360,000.
6-7618 PT by
-8Fabricated textile products (except apparel) on hand August 15 were
valued at $2,270,000, and dispositions during the previous 45 days
totalled $650,000. This category consists in large part of mosquito nets
and bars, and comforters.
Inventories of leather, composed principally of sheep shearlings
declared surplus by Aray Air Forces, were appraised at $2,320,000 on
August 15. Dispositions totalled $845,000 in the previous 45 days, and
it is expected that existing balances will be used by Foreign Economic
Administration. It is also expected that Lend-Lease will account for a
substantial part of the disposition of apparel (excluding footwear) which
was valued at $2,100,000 on August 15 and consisted in large part of Army
olothing.
6-7618 PS bu
123
9
WAR FOOD ADMINISTRATION
Office of Materials and Facilities
o
P
y
WASHINGTON
August 22, 1944
Mr. William L. Clayton
Administrator, Surplus War
Property Administration
811 Vermont Avenue, N. W.
Washington, D. C.
Dear Mr. Clayton:
At the request of Mr. Ernest L. Olrich, Assistant to the Secretary of
the Treasury, I am sending you the following list of typical examples
illustrating the efficiency and success of the surplus truck disposal
program:
Number of Surplus
State
Texas
Trucks Moved into Area
55
30 (approx.)
Description of Use Made
of Surplus Trucks
Saved 4 million bushels Milo
Maise in southern Texas.
Assisted movement of wheat
harvest in Nueces County.
Tennessee
100
Transport limestone to farmers
North Carolina
250
Move tobacco crop and transport limestone.
Virginia
90
for soil conservation.
Forty trucks originally scheduled
for sale in Maryland and Delaware
diverted to Charlottesville,
Virginia to save peach crop in
area. Remainder sold to farmers.
Georgia
35
Colorado
25 (approx.)
To save peach crop in northern
part of State.
Assisted in movement of potato
crop.
As a result of the over-all program, approximately 7 thousand surplus
trucks have been sold in the last 8 or 10 weeks to farmers or haulers
of agricultural products in critical need of transportation facilities.
Sincerely yours,
/a/ J. W. MILLARD
J. W. Millard
Director
6-7615 PO bu
0
4.1
83.8
JULY 1944
Month of
99,226
TOTAL
11,776
16,455
82,771
232,953
150,182
Disposal
ceived.
reports
No
Other
1
100
155
128
2
2
2
-
-
Admins.
1
.6
27
28
War
none
re-
Agencies
none
Admin.
Foreign
Economic Food
28
60
(thousands of dollars)
4.2
986
380
46.6
Mari-
time
Comm.
1,366
1,046
2.8
83.0
4,130
4,976
76,487
Recon.
71,511
175,228
103,717
Corp.
Finance
CHANGE IN INVENTORIES (a)
84.5
16.9
7,617(c)
21,663
11,418
10,245
56,202
Proc.Div.
of Treas.
Dept. (b)
. 45,957
OF SURPLUS WAR PROPERTY REPORTED BY DISPOSAL AGENCIES
1930
NOISIAIO
Procurement Division is on basis of appraised values.
and N.Y.A. and F.P.U.B. warehouses in New York and Chicago).
Confirmed Inventory only.
Includes "Transit" inventory (items awaiting appraisal) and "Old Accounts" (Liquidation of W.P.A.
TREASURY DEPT.
(a) All amounts are cost of property reported by owning agencies, except that "Confirmed" inventory of
PROCUREMENT DIVISION
1944 SEP 4 AM 10 51
5. Balance end of month
3. Disposed of during month
1. Balance beginning of month
Month of July, 1944
2. Acquired during month
4. Net Increase during month
6. Rate of disposal-%
7. Sale Price
8. Sale Price % of Cost (d)
(b)
(c)
(d) Appraised GalueNTor confirmed inventory of Procurement Division.
124
PLAIN
London
Dated
Rec'd
September 11, 1944
10:46 p.m.
Secretary of State,
Washington.
7455, Eleventh.
Next meeting Executive Committee IGO October 5.
Please reply Embassy's 7053, August 29.
WINANT
MRM
125
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, Lenden
TO:
Secretary of State, Washington
DATED:
September 11, 1944
NUMBER: 7473
SECRET
THE FOLLOWING PEHLE WRB FROM MANN.
At the request of Maleg, Chief of Foreign Office's Refugee
Department, Brown and I attended a meeting at his office this
evening, at which meeting Sir Herbert Emerson was present also.
Following is the substance of a cable received Saturday from
British Minister in Bern which was read by Mason:
From the German Government it is understood by the
Swiss Government that the Germans are not ready to permit
a party of 2100 Jews to leave Hungary if they are to go
to Palestine, as they do not wish to have the Arabs dis
turbed. However, they would view their departure more
faverably if the group were to have a destination in America
can or British territory.
Furthermore, it has been requested by the German
Ministry of Foreign Affairs that the Swiss Legation at
Budapost should hand to the German Legation there a
nominal list stating that on security grounds they cannot
permit the departure of the group Antil an examination has
been made for each individual case.
126
-2The Government of Switzerland desires to know whether
they should send to the Legation at Budapest instructions
to this effect.
No indication was given that information regarding this
message had been given McClelland.
Inasmuch as this German move rejects to offer to place Jews
coming from Hungary in neutral and United Nations territory and
substitutes in its place American or British territory exclud
ing Palestine, this move cuts at the very heart of the joint
declaration of the British and American Governments. Although
the composition of the 2100 people is unknown, the assumption is
that they are principally holders of Palestine certificates
and if the offer were accepted as made, it would place the
British and American Governments in a position of invalidating,
at least temporarily, Palestine certificates even if the cond1tion were accepted only while the war lasts. If we fail to
accept the German conditions with concrete offer, it will put
the Germans in a position to state that they would permit the
Jews to leave but they would not be accepted by us. It is
also possible that if we accept conditions in this case, they
will be made applicable to all others who are trying to escape.
The purpose of the German maneuver presumably is to embarras the
Governments of Great Britain and the United States.
It is proposed by the British to give their Minister in
-3Bern instructions to reply to the Swiss Government somewhat
as follows:
We assume that the security check is for the punpose of expediting the departure of Jews and not delaying
it. With that understanding, which should be emphasized
by the Swiss, we have no objection to giving the Germans such
a list if the Swiss first make sure that such list will
not be used by the Germans for the purpose of victimising
the prospective evacuses. We assume that the list will
show that Palestine certificates are held by the persons
named thereon. There is no intention on the part of the
British Government to take action which would make such
certificates invalid. You are requested to ascertain from
the Swiss whether they are prepared to give the group
temporary haven with the maintenance guantees given pre-
viously until such time as evacuation can be carried out.
Should they be willing to do so, they should inform the
Germans that they have agreed to give the 2100 refugees a
temporary haven.
The proposed reply obviously does not meet the conditions
laid down by the Germans. The reply might stand some small
chance of being successful. It is althgether possible, however,
that the Germans would inquire as to the final destination of
the Jews or that in the absence of a statement to the contrary,
that British position with regard to Palestine certificates
127
128
would be taken for granted. In view of public and Jewish
opinion, the British understandably feel that the validity of
Palestine certificates must be preserved by them.
Attempts have been made by Brown and me to determine what
the possibilities were of removing the 2100 to British or American soil from Switzerland. No suggestions could be obtained by
us from Mason, who stated that he would have to consult with
the Colonial Office to determine whether there is any available
British soil. Therefore, it is safe to say that if the
conditions laid down by the Germans were accepted even temporarily,
British or American soil, apart from the other complications,
means only American soil. We were continually asked by Sir
Herbert if we were prepared to open more camps such as the one
at Oswego.
It is difficult to make recommendations until I know how
far our Government is prepared to go in this matter. It is
felt by me that the best solution to the problem would be to
make an offer of the nature of that resulting in the Fort
Ontario camp, making it clear that such refuge was for the dura
tion of the war only and that following the war these refugees
might return to their own land or to a land of their own choosing
which is willing to receive them. It appears doubtful that the
2100 could be evacuated before the termination of the war, but
it is possible that such could be done. Furthermore, problems
with the military might be raised by their evacuation through
129
France.
It is requested that you reply urgently, giving the
views of the Department and the Board on the suggested reply or
any althrative proposale which our Government might desire to
present to the British. No reply will be made by them until
receipt of your views. If the suggested reply is acceptable,
the reply should not be transmitted until agreement has been
reached by the two Governments regarding answer to be given if
the Germans should insist on knowing the group's destination.
The proposed reply by the British and their stand on Palestine
certificates is agreed to by Emerson. It is felt by him to
be most important that agreement be reached by the two Govern
ments on all action to be taken before making any reply.
It is requested that McClelland be instructed to repeat
to me any important messages to the Board, and if the Board would
repeat to me their replies, it would be greatly appreciated.
WINANT
DCR:IIBBY 9/12/44
130
Caserta
FBM-110
Distribution of true
reading only by special
Dated
September 11, 1944
Rec'd
1:55 a.m., 12th.
arrangement. (SECRET-W)
Secretary of State,
Washington.
355, September 11, 5 p.m.
FOR WAR REFUGEE BOARD FROM ACKERMANN, NO. 109.
I have always been cognizant of limitations
on board's authority and activities noted in your
106 of September 7. However I approved of and
confirmed message sent by Offie on September 3 since
I knew of no organization in Rumania ready to act
in emergency and felt that you would pass request
on to one of the many private organizations you
maintain contact with. UNRRA under its charter
cannot go in the British American military have
no plans therefor and it may be a long time before
private organizations can enter. I still believe
it is essential that belief be forwarded in some
manner. The OSS says problem is too great for it
to handle but perhaps JDC (repeat JDC) or other
United States organization has a local representative
to whome funds can be sent possibly through here or
perhaps Turkey.
KIRK
WSB
131
PARAPHRASE OF TELEGRAN RECEIVED
FROM:
American Legation, Tangier
TO:
Secretary of State, Washington
DATE:
September 11. 1944
NUMBER:
284
CONFIDENTIAL
Following is for Var Refugee Board.
It is now stated by Reichness that food parcels cannot be
sent for Hangary through France and Switzerland. but she is
attempting to ship through the International Red Gress from
Sweden. She will again attempt to send to Biskensu and
Theresionstadt but is of the opinion that Jews have been
deported from Sateraljam jhily.
The foregoing has reference to the Department's cable
of August 31. No. 122.
CHILDS
Paraphrasel DOR:VAG:MEM
9/12/44
132
CABLE TO AMBASSADOR NORWEB AND DEXTER, LISBON, PORTUGAL
Department and Board delighted with success reported in your 2594
of August 22. Please convey to Pertuguese officials this Government's
appreciation.
While the actual passage of Jews from Axis areas through Pertugal
may perhaps be rendered unnecessary by military developments, neutral
visas and permission for unobstructed exit of beneficiaries of such
visas are still of great importance in safeguarding the lives of Jews
in such areas. It is hoped, therefore, that Portuguese government will
continue to press Hungarian and German authorities for decent treatment
and unobstructed exit of beneficiaries of Portuguese visas.
THIS IS WRB CABLE TO LISBON NO. 89
133
MB
Distribution of
true reading ofily by
September 11, 1944
9 p.m.
special arrangement.
(SECRET W)
War Refugee Board
AMEMBASSY
LISBON
2491
The following for Dexter is WRB 89.
Department and Board delighted with success reported
in your 2594 of August 22. Please convey to Portuguese
officials this Government's appreciation.
While the aoutal passage of Jews from Axis areas
through Portugal may perhaps be rendered unnecessary
by military developments, neutral visas and permission
for unobstructed exit of beneficiaries of such visas are
still of great importance in safeguarding the lives of
Jews in such areas. It is hoped, therefore, that Portuguese government will continue to press Hungarian and
German authorities for decent treatment and unobstructed
exit of beneficiaries of Portuguese visas.
HULL
(GLW)
WRB:MMV:KG
9/11/44
8
#
2518
1944
sept.
CABLE TO AMEMBASSY, MADRID, SPAIN
Reference is made to your 3044 of September 5. Department's 2331
to Lisbon dated August 24 was limited to rescue activities out of France
and does not cover situation in areas still under German control.
With regard to Department's 2361 of August 24 to you, while the
actual passage of Jews from Hungary and other Axis areas through Spain
may perhaps be rendered unnecessary by military developments, neutral
visas and permission for unobstructed exit of beneficiaries of such visas
are still of great importance in safeguarding the lives of Jews in such
areas, and you are requested to continue your efforts in this respect.
134
135
MMC
Distribution of
true reading only by
September 11, 1944
9 p.m.
special arrangement.
(SECRET W)
AMEMBASSY
MADRID
2518
The following is from War Refugee Board.
Reference is made to your 3044 of September 5.
Department's 2331 to Lisbon dated August 24 was limited
to rescue activities out of France and does not cover
situation in areas still under German control.
With regard to Department's 2361 of August 24 to
you, while the actual passage of Jews from Hungary and
other Axis areas through Spain may perhaps be rendered
unnecessary by military developments, neutral visas and
permission for unobstructed exit of beneficiaries of
such visas are still of great importance in safeguarding
the lives of Jews in such areas, and you are requested
to continue your efforts in this respect.
HULL
(GLW)
WRB:MMV.KG
9/11/44
136
ML
Distribution of
true reading only by
September 11, 1944
10 p.m.
special arrangement.
(SECRET W)
War Refugee Board
AMEMBASSY
MADRID
2519
Department and War Refugee Board are advised that
there are in camp Bergenbelsen near Hanover about 155
Sephardic Jews having Spanish passports whose entry into
Spain has been promised by the Spanish Government and for
whom, it is understood, exit permits are now available.
In view of imminent danger to lives of these persons,
you are requested to intercede with Spanish government
to bring about their release and admission into Spain.
Assurances previously given regarding speedy evacuation
of refugees from Spanish territory fully apply to these
persons.
Should transportation be impossible in view of military developments, please urge Spanish Government to
exercise greatest possible vigilance in safeguarding the
lives of these persons, by placing them under direct protection of Spanish diplomatic or consular personnel and
by all other appropriate methods.
HULL
(GLW)
WRB:MMV:KG
WE
137
Stockholm
NMC-118
Distribution of
true reading only by
Dated September 11, 1944
special arrangement
Rec'd
(SECRET w)
3:44 a.m., 12th.
Secretary of State,
Washington.
3564, September 11, 10 p.m.
FOR WEB
Our No. 79
Please advise whether it is likely that funds
will be made available for program outlined in
no. 35 (Legation's 2224 of June 20, 8 p.m.) Funds
are needed particularly to commence educational
program for refugees here.
Also would appreciate advice whether assistance will
be supplied to Czech group here as outlined in our
no. 36 (Legation's 2239, June 21, 9 p.m.) The Coech
group is seriously handicapped by lack of funds
and if Board agrees Olsen is prepared to make available
the small amount involved out of funds he has at
his discretion.
Also would appreciate early advice as to
whether anything is contemplated with respect to
Polish relief as outlined in our no. 48 and 55
(Legation's 2569 of Jully 11, 9 a.m. and 2668 of
July 18, 9 p.m.) We are being pressed for decision
of these matters particularly in view of the
country wide drive on in Sweden this week in
behalf of Polish relief which is receiving extensive
publicity.
JOHNSON
RR
138
PARAPHRANE OF TELEGRAM SHNT
FROM:
Secretary of State, Washington
TO:
American Legation, Born
DATED:
September 11, 1944
NUMBER: 3242
SECRET
with reference to Micaraguan interests in Hungary, we give
you below airgram of August 19, No. A-361 (see your cable of July 14. No. 4610)
You are referred to circular airgram of August 3, 1944 from the
Department
in
Bungary. concerning representation by Switserland of Nicaraguan interests
In , note dated August 17. 1944. L/W. 169, the Foreign Office
of Micaragua recognises the advisability of having representation in Hanguary
for Micaraguan interests, selects Switzerland as protecting power. and
asks the United States Government to ascertain if the representation of
Nicaraguan interests in Hungary will be assumed by Switserland.
In addition, the Government of Monragua asks that the Government
of Switzerland be instructed in line with the suggestions contained in Department's reference airgram, in the event it accepts.
The suggestions referred to above are as follows:
Please ask the government to which you are accredited to direct
thethis
protesting
power substantially as noted below, in the event it aggress
to
measures
(1) That recognition and confirmation are accorded passports and other papers issued in its name to individuals in Hangary subject
to persocutions (2) that advise to this effect be given Hugarian Government
and that it is anticipated that the rights, treatment, immunities and privi-
leges of nationale of the government to which you are accredited will be
given to individuals helding such passports and other papers; and (a) that
negotiations by the United States for the exchange of such individuals are
authorised.
will you oak the Government of Switserland to accept representation
of Mearaguan interests in Hungary, advising it of the above, and stating
that,
if se desired,
the Government of the United States is willing to ast
as
communication
channell
HULL
SWP:ABC. Paraphrased: DCR:GHM 9/24/44
1
139
COPY NO
NOT TO BE RE-TRANSMITTED
SECRET
OPTEL No 296
Information received up to 10 A.M. 11th September 1944.
1. NAVAL
Home Waters
10th. A British Battleship and Monitor
bombed enemy positions at HAVRE.
2. MILITARY
Troops of the U.S. third army have made
slight withdrawal in NANCY area. U.S.
First Army have liberated LUXEMBOURG city and further north enemy
Northwest Europe
salients have been reduced and line straightened. Considerable
opposition is being encountered by British forces in BRUGES-GHENT-
ST. NICOLAS area,
Southern France
On RIVIERA Coast, patrols in contact with
enemy near FRANCĂ“ ITALIAN Frontier north
of MENTONE. Further north French formations ahve made further
advances in direction of DIJON and also occupied AUTUN (thirty
miles northwest CHALON SUR SAONE).
Italy In SANSIPOLORO-BIBBIENA sector enemy have withdrawn
to Gothic Line, followed by Tenth Indian Division who have drive in
outposts.
Burma
Continued advance southwards on IMPHAL TIDDIM Road,
our troops were twenty miles south of ASSAM BURMA
Frontier on ninth. At SITTAUNG we grossed CHINDWIN and are established on Eastern Bank.
3. AIR OPERATIONS
Western Front 9th/10th 610 tons dropped on MUNCHEN
GALDBACH and 55 tons on BRUNSWICK.
10th. Heavy bombers dropped 4885 tons in two attacks on HAVRE
defences. Obtaining good concentrations and also a total of 2520
tons on objectives in Southern GERMANY generally with good results
Medium bombers dropped 185 tons on strongpoints and railway bridges
near NANCY. Enemy casualties reported 6 aircraft destroyed in oombat
and 113 on ground. 13 Allied bombers, 17 fighters missing, 1 bomber
crashed.
10th/11th. 79 aircraft despatched including 47 Mosquitoes
to BERLIN. All returned.
240 fighters attacked targets in,
Mediterranean 9th.
NORTHERN ITALY and in BYLFORT area. Medium
bombers and R.P. Beaufighters operated against military targets and
10th. Escorted Fortresses and Liberators dropped 730 tons
on oil refineries-and industrial targets VIENNA area and 160 tons
on port installations TRIESTE. 16 Bombers, two fighters missing.
communications in YUGOSLAVIA and GREECE.
SECRET
140
THE WHITE HOUSE
K
WASHINGTON
12 September 1944
MEMORANDUM FOR
THE SECRETARY OF THE TREASURY
The following message was received in the White House Map
Room at 5:37 p.m. today:
"FROM: THE PRESIDENT
"TO : SECRETARY MORGENTHAU
PLEASE BE IN QUEBEC BY THURSDAY, 14 SEPTEMBER,
NOON.
"ROOSEVELT"
them as Putnam
HENRY W. PUTNAM,
Captain, A.C.,
White House Map Room.
SECRET
-1-
141
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
TO
FROM
Mrs. Klotz
September 19, 1944
Mr. O'Connell
At the 10 o'clock group meeting this morning,
the subject matter of the attached memorandum was
discussed, and the Secretary approved the suggestion
that we send a Foreign Funds Control man to Paris
to look into the situation in the Chase Bank and in
Morgans.
No further action is required with regard to
this matter at this time.
you
142
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
Secretary Morgenthau
TO
FROM
SEP 12 1944
J. J. O'Connell, Jr., H. D. White
You will recall that sometime ago Foreign Funds
Control reported to you that an examination of the
correspondence between Ford, United States, and its
French subsidiary, from the date of the fall of France
until July 1942, disclosed that: (1) the business of
the Ford subsidiaries in France substantially increased;
(2) their production was solely for the benefit of the
Germans and the countries under its occupation; (3) the
Germans have "shown clearly their wish to protect the
Ford interests" because of the attitude of strict
neutrality maintained by Henry Ford and the late Edsel
Ford; and (4) the increased activity of the French Ford
subsidiaries on behalf of the Germans received the
commendation of the Ford family in America.
Substantially the same pattern of behavior was
pursued by the Paris office of the Chase Bank during
German occupation. An examination of the correspondence
between Chase, New York, and Chase, France, from the
date of the fall of France to May 1942, discloses that:
(1) the manager of the Paris office appeased and collaborated with the Germans to place the Chase banks in
a "privileged position; (2) the Germans held the Chase
Bank in "very special esteem owing to the international
activities of our (Chase) head office and the pleasant
relations under which the Paris branch has been maintaining with many of their (German) banks and their
(German) local organizations and higher officers;" (3)
the Paris manager was "very vigorous in enforcing restrictions against Jewish property, even going so far
as to refuse to release funds belonging to Jews in anticipation that a decree with retroactive provisions prohibiting such release might be published in the near
future by the occupying authorities; and (4) the New
York office despite the above information, took no
direct steps to remove the undesirable manager from the
Paris office since it "might react against our (Chase)
interests as we are dealing, not with a theory, but with
a situation
143
-2These two situations convince us that it is
imperative to investigate immediately "on the spot"
the activities of subsidiaries of at least some of
the larger American firms which were operating in
France during German occupation, particularly if we
expect the French and the other Allied nations to
adopt vigorous anti-collaborationist programs in
their respective countries. Furthermore, even if
the French conduct a vigorous "cleansing" program
they will probably not investigate the American firms
within their jurisdiction.
It is urgent that we begin immediately with an
investigation of the French subsidiaries of the American
banks (Chase, Morgans, National City, Guaranty, Bankers,
and the American Express), since these banks have been
pressing us for the past two weeks for permission to
send their own agents to Paris to reorganize their
offices. It is our feeling that no such permission
should be given until we have had a chance to make
this investigation.
The job should not take too long since it appears
from the Chase correspondence referred to herein that
Morgans and Chase were the only two American institutions
which continued their Paris offices during German occupa-
tion. If you approve, we have available four or five
trained persons for the job. Their activities should be
restricted to investigating the banks at the outset; and
not until we have had a chance to evaluate the results
of these studies should we tackle the job of investigating
other American firms in France.
I Approve:
HDWhite
144
TO:
Mr. White
FROM:
Mr. Pehle
SEP 12 1944
I am somewhat troubled about the Treasury's program on Germany. As far
as it goes I agree with it, but it seems to me it stops short of a complete
program.
As nearly as I can put my finger on it, the missing element is this: We
have carefully constructed a program designed to keep the German people down -
to make Germany a second or third rate power politically and industrially - and
there we stop.
It seems to me that we cannot stop there. Since we do not subscribe to
theories involving blood taint, we cannot ignore the problem of the millions of
Germans who will be born in the next 15 years and who cannot be said to be guilty
of any anti-social action. We cannot put ourselves in a position where someone
can honestly think our program is based on retribution. Nor can we ignore the
dangers of a situation in which an embittered German population deprived of its
former goals and ambitions has nothing to contemplate for the future except
complete frustration. There must be developed alternative goals as well as the
prospect of rejoining the society of nations if Germany behaves and if the member
nations consent.
-
It seems to me that a program can be designed which Germany can follow
if she is so inclined - and which will let her live in peace and in some measure
of prosperity.
On this score our present program seems to me to be entirely negative. It
should be augmented by a carefully constructed plan for the rehabilitation of
Germany after she has been largely stripped of industry. This rehabilitation
should take place over a long period of time and should be so designed as to avoid
any possibility of Germany becoming so industrially and politically strong as to
monace the peace of the world in the next 25 years.
For example on the question of partitioning I think it might be very well
to hold out the hope to Germany that, at the end of a 25-year period, with the
permission of the World Security Organization and if approved by the majority of
the German population in the various partitioned areas, these areas may again
unite as one country. Further, I think it should be made clear that Germany has
a chance, conditional on good behavior for 25 years and the vote of the members to
join the WorldSecurity Organisation.
On the question of the feeding of the German population, if we are going
to strip Germany of industry and accordingly the where-with-all to purchase from
abroad, I think we might as well plan to use some of the food surpluses that
apparently are going to plague the world to feed the German population until they
can make the necessary adjustments toward a new econoxy. During this period of
readjustment encouragement should be given to migration, particularly of skilled
workers to other areas whose industries are being expanded, such as Poland, France,
etc.
145
2As a further small example of what I have in mind, our program emphasises
that the higher institutions of learning in Germany shall be closed and will
have to remain closed for a long time. I agree with this, but I feel that our
program should call for the reopening, as soon as possible, of the German medical
schools so that the contribution which Germany has to offer in this field, which
can be substantial, will not be lost to the world and Germany will be in a position
to continue to be proud of the contribution which she is able to make. I also be-
lieve that our program ought to make it clear that Germans who have not been
thoroughly indoctrinated with the Maxi philosophy because of their age will be
encouraged and helped in continuing their education outside Germany until Germany
schools can assume this burden. I am not impressed with the argument that it is
dangerous to send Germans outside Germany for education since this will result in
the spread of Nasi doctrines.
As a final point, I am not convinced that it wouldn't be more advisable to
leave the Ruhr area in Germany under an international trusteeship than to separate
this area from Germany in an internation zone. I should think that such a trusteeship ought to have definite limitations as to its responsibilities and that
the feeding of the unemployed population be left to the German authorities.
I should also add that I think we should avoid over-emphasizing the point
that Hitler and the other Nasi ringleaders are put to death. Any disproportionate
insistence on this item is likely to be misunderstood and to make the reader feel
that we think the punishment of selected war criminals is an all-important end in
itself. To me this tends to emphasise the philosophy of those who are inclined to
blame Germany's difficulties on a relatively small group instead of dealing with
the whole problem of an entire people who through environment as well as temperament
constitute a potential recurring menace.
In short, I wonder whether without compromising at all on the objective of
obtaining a permanently demilitarised Germany, we cannot follow through and suggest a program which will permit of some hope in Germany for a chance to partici-
pate in the affairs of the world on a fair basis.
146
September 12, 1944
Mr. Frederick W. Gehle
New York, New York
Dear Mr. Gehle:
You are hereby appointed Chairman of the War Finance
Committee, State of New York, with compensation at the rate
of $1.00 per annum, payable from the appropriation, "Expenses
of Loans, Act of September 24, 1917, as Amended and Extended."
This appointment is to be effective September 12, 1944, and con-
tinue for the duration of the war, unless sooner terminated.
Sincerely,
(Signed) H. Morgenthau, Jr.
Secretary of the Treasury
147
ORVICTORY
OFFICE OF
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
WASHINGTON 25
BONDS
AND
STAMPS
THE
September 12, 1944
SECRETARY
MEMORANDUM TO THE SECRETARY
Some two months ago at a staff meeting
in your office the statement was made to you by
Mr. Thurman Hill that a contract had been made
with the Cardinale Export Company for the sorting,
packing and handling of certain shoes for European
relief and rehabilitation at a price disadvantageous
to the Treasury. On checking the contract I found
that it permitted a renegotiation of cost after the
contract had been operated for sufficient time for
the contractor and ourselves to determine a fair
cost.
As a result of renegotiations which were
permissible in the original contract, the cost of
operation has been reduced by 58 percent. In other
words, if we had been billed on the original basis
the charge against us would have been $723,000;
based on the amended contract the charge is $310,785,
a saving to the Government of $412,255. Sufficient
funds were withheld from the contractor by Mr. Mack
to preclude overpayment and settlement will now be
made with the contractor on the basis of the adjusted
price as above stated.
Olrich
Home
Assistant to the Secretary
148
OFFICE OF
FOR VICTORY
TREASURY DEPARTMENT
1.
BUY
*
STATES
WASHINGTON 25
WAR
BONDS
STAMPS
THE SECRETARD
September 12, 1944
MEMORANDUM TO THE SECRETARY
I am enclosing a list of the
special items valued in excess of $50,000
as of September 11, 1944.
Flow
Assistant to the Secretary
E. L Olrich
Enclosures
PROPERTY FOR DISPOSAL
SPECIAL ITEMS, COST TO GOVERNMENT IN EXCESS OF $50,000
AS OF SEPTEMBER 11, 1944
QUANTITY UNIT COST COST TO GOVT.
1. Automotive Products
TIRES AND TUBES, NEW AND USED
60,298 units are being assigned as an
additional issue to the prior releases
made to manufactures on Aug. 14th.
Balance are miscellaneous assortment of
new and obsolete tires which will require
physical segregation before definite
assignment can be made - some tires are
from 10 to 15 years old, and are odd sizes.
80 000
587 000
6 700 000
6 300 000
AUTOMOTIVE PARTS, NEW
Recent declarations of parts in varying
quantities in many locations. As
distinct from previous declarations
these parts are new, small parts; not obsolete and used bodies, tanks, etc.,
such as we have had before. Clerical
and inspection personnel lacking to
handle large quantities of paper and
material.
149
Page 2
QUANTITY
UNIT COST COST TO GOVT.
SPARE PARTS, AUTOMOBILE, NEW AND USED
Majority are used parts, taken from
used motors and put in stock. The
bulk of the new parts are obsolete,
or are parts for discontinued military
vehicles. Inspection, boxing and
listing by manufacturers is going
forward prior to offering them to
2 000 000
manufacturers.
DISC WHEELS FOR GUN CARRIAGES
We have authorized release of 477
at $13.75 each. We have authorized
the sale of 4967 at $10 each and
are arranging to sell 300 at $10.
8 800
$ 28
246 400
150
Page 3
QUANTITY
UNIT COST COST TO GOVT.
2. Textiles and Wearing Apparel
All textiles and clothing in the
hands of disposal agencies have
been temporarily frozen to enable
the Army to make selections for
use in a program for occupied
countries.
W.A.C. CAPS
No interest can be aroused anywhere.
76 712
$ 2 20
168 766
742 000
1 00
742 000
45 928
3 00
137 784
GLOVES, RUBBER, ANTI-GAS
Gauntlet type. We have been advised
unofficially by Army that they are withdrawing
this item.
HATS, ARMY SERVICE
The old-style, broad brimmed campaign hat.
Of original amount of 91,000, half have
been sold. Negotiations :in process for
balance.
151
QUANTITY
Page 4
UNIT COST COST TO GOVT.
MOSQUITO BARS, WITH RODS
Rectangular tents of mosquito netting. About
300,000 reported as new turned out to be used
and patched. Export deal for used items is
being worked on. If successful, this will
take care of 50% of the lot. Domestic sales
at $1.50 are continuing in small lots.
669 000
$ 5 90
3 947 100
1 000 000
10
100 000
BELT POCKET FOR CARTRIDGE CLIPS
Web pocket with fastener. Radio advertiser is
taking quantities under option as requests from
program develop. Price received $0.06
MAGAZINE BELTS
Samples received - very little interest shown.
130 325
55 369
APRONS, IMPERMIABLE
Rubber coated apron, with sleeves, designed
like an operating gown. Has very little use,
except to cut up to salvage the material.
Sample has been received and shown to possible
purchasers
79 449
5 00
174 800
152
Page 5
QUANTITY
UNIT COST
COST TO GOVT.
SLIDE FASTENERS
Manufacturers will probably repurchase at
cost price. Inventories have been received
and have been distributed to original
manufacturers.
8 500 000 $ o 19
1 615 000
LEGGINGS
World War I stock, good only for salvage.
Now being authorized for sale by Regions.
213 280
109 833
pr
3. Machinery
CONSTRUCTION MACHINERY, HEAVY
General inventory of used machinery, most
of it in very poor condition. Sales are
being made regularly but inventory mounts.
4 809
1 000
(average)
4 809 000
ICE GROUSERS, NEW
Ice gripping shoes to be attached to special
rubber tired treads of high speed military
tractors. Each weighs 6 lbs. A tractor needs
296 pieces. There is no known application on
standard machines; no market, except for scrap.
76 726
pieces
2 70
207 160
153
Page 6
QUANTITY UNIT COST
COST TO GOVT.
GROUSERS
Reported as new grousers for tractors, 1.e.
shoes to be bolted to the flat tracks of
crawler tractors. Inspection proved that
they were simply short pieces of mild steel
(structural) angle iron with punched holes.
They were made as an improvisation for use
$ 3 00
131 559
770 944
73
562 781
821 427
5 50
in the soft going in Burma but were impractical. 43 853
4. Furniture
PILLOWS, NEW AND USED
Some cotton, some feather, some mixed.
120,144 new, 650,800 used.
MATTRESSES, NEW AND USED
227 new; 593, 827 used. Used mattresses
are sold only to salvage the materials.
An appreciable quantity of used mattresses
have been sold and will be used in the
manufacture of paper.
4 517 848
15A
Page 7
QUANTITY
UNIT COST
COST TO GOVT.
BED PARTS
Springs, heads, feet, and side rails; unassembled. Negotiating with bed mfrs.
65 000
regarding repurchase.
5. Hardware
CHINAWARE
Vitrified china with Medical Corps insignia.
One-third of original quantity has been sold,
or withdrawn by Army. Other government agencies
and tax-supported agencies show interest. Sales
will be started within a week.
1 000 000
$ o 17
170 000
SPURS, NEW AND USED
Publicity release is being prepared for issue
this week, as purchases for use as novelty
give-a-way by radio advertiser are relatively
small.
261 000
pr.
1 40
average
365 400
155
Page 8
QUANTITY UNIT PRICE COST TO GOVT.
IMPRINTING MACHINES, NEW
An Addressograph-plate press, portable,
designed for Army Medical Corps identification
purposes. Original manufacturer is developing
a proposal for our consideration in regard to
re-purchase.
52 636
$ 21 95
1 052 720
114 290
1 60
190 864
11 378
sets
6 85
77 937
SCABBARDS, BOLO
Obsolete item. No quantity of bolos available - a short, curved, heavy blade-knife.
Many inquiries have come from department
stores as a result of publicity.
MARKERS, MINE FIELD
Web fabric carrying case containing 30 metal
pins (18 inch) with 4" X 4" metal flag marked
"Danger". Pocket contains 2 rolls of narrow,
yellow tape. Bureau of Mines is examining
kits to determine possible use. We are also
contacting state highway commissions.
155
Page 9
QUANTITY UNIT COST
COST TO GOVT.
RAFTS, PNEUMATIC, 5 MAN
As of Aug. 31 Fort Worth had sold 93 out of
176 on hand, and reports response is good.
San Francisco reports 35 units sold. Chicago
reports that sales have been hurt by offerings
of similar rafts for $69.50 retail (with 3 pieces
of equipment) by a large department store - these
are supposed to be "rejects" sold by Goodyear.
This Division will hold to established price of
$84.50 (to wholesalers) and $99.50 (to retailers). 2 000
$ 2 00
400 000
11 745
9 00
105 654
22 837
pr.
4 25
96 915
SNOWSHOES, USED
Serviceable, trail and bear paw type snowshoes.
Inspection report awgited.
SNOWSHOES, EMERGENCY
Paratroopers' special type, of no value for
sport purposes. We have offer for 1000 pr.
at $1.00 each. Sears Roebuck offer for lot
at 50 a pair was turned down.
157
Page 10
QUANTITY
UNIT COST
COST TO
DVT.
COVERS AND SEALS, RUBBER
Includes 3/4 ton seals, which are round
rubber washers about 1 inch in diameter.
There are 27 tons of new "covers" which
are 2 in. lengths of black rubber hose thin wall, about 1 inch in diameter.
27 3/4
169 245
tons
HOSE, RUBBER, USED, 25 FT.
27,840 lengths hose, 2 inch and 2g inch
inside diameter, plus 312,000 short lengths
ranging from 2 inches long to 4 feet - mostly pieces a few inches long. We are contacting Rubber Manufacturers Ass'n members for
possible outlet.
27 840
984 893
plus short lengths
PLATFORM TRUCKS, STEEL, NEW
Steel trucks on casters, designed to move
airplane engines undergoing repairs. Bids
are in at several regions and sales are
being made.
13 287
$ 75
996 525
153
Page 11
QUANTITY
UNIT COST COST TO GOVT.
LANTERNS, OIL BURNING
Reported as "deck" lanterns by Navy, but
are similar to typical farmer's or railroad
lantern, with carrying bail - red globes.
We are attempting to get Army Ordnance to
use these in place of some they have on
order.
34 460
$ 3 00
107 316
SMOKE GENERATOR PARTS (VEHICULAR)
Small metal parts (valves, fittings).
Many are special and new uses will have
to be found. A large chain expresses
interest in the entire quantity and will
277 000
examine material tomorrow. Bids due today.
SMOKE GENERATORS
Obsolete, individual smoke pots with chimneys.
Has been on bid with no offer over $0.11 each.
They consume too much oil and make too much
smoke for use as smudge pots for agricultural
use. Recent deal fell through. National
publicity has been released in effort to stir
up interest in this "Jonah".
67 600
3 50
236 600
159
Page 12
QUANTITY UNIT COST COST TO GOVT.
WOOD SCREWS, BRASS, NEW
Only 4 bids received - none for complete
lot. All rejected and screw industry is
being circularized again at its own request.
Results of this circularization have been
300 tons
requested from regional office.
1 634 items
357 000
BOLTS, MISCELLANEOUS
All sizes and kinds. We have "frozen"
individual items where large quantities
of one size or kind, if thrown on market,
would disrupt the industry. When tabulations
are complete foreign purchasers will be
contacted with view of exporting some items.
Smaller quantities will be put up for domestic
sale.
8 103 482
2 053 399
SIRENS, NEW
Hand warning device for combat use. In
canvas case with shoulder strap. Have had
offer of $2.00 each - refused because too low. 28 638
6 00
174 569
approx.
160
Page 13
QUANTITY UNIT COST COST TO GOVT.
INCINERATORS, NEW
Designed for human excretia but can be used
for burning lower-water content material by
remodeling at cost of $1000 each. News release has brought in several offers which
were considered too low. We have representative
today in manufacturer's office attempting to
effect disposal.
34
$ 9 818
333 812
6. Medical and Hospital Supplies
SURGICAL & DENTAL INSTRUMENTS,
MEDICINES & SUPPLIES
Mostly non-standard, obsolete, or deteriorated,
Includes $52,228 in N. Y. Depot, $250,000 in
Louisville Depot, and $100,000 dental supplies
at Perry Point, Md. Disposal policy for nonstandard items is being formulated.
846 000
MEDICINES AND ANTISEPTICS
This listing covers many declarations recently
declared by Army. It is made up of various
preparations of highly technical nature, in
great quantities. All are on new declarations.
Samples are being obtained. Will be tested to
determine quality.
5 800 000
161
Page 14
QUANTITY UNIT COST COST TO GOVT:
DRESSINGS, FIRST AID PKGS.
Samples awaited. About 1,600,000 are
known to be a commercial product.
Regions have been advised to arrange for
withdrawal of all material that may be of
Red Cross manufacture.
34 000 000
4 000 000
11 611 000
1 960 000
SUTURES, SILK AND CATGUT
For sewing after surgical operations.
All government hospital agencies and
the Red Cross have been advised of
availability. Government agencies not
interested. will be offered to original
manufacturers.
bes
FLASK, WITH CUP
Laboratory equipment. Samples awaited.
200 000
33
66 000
230 000
27
62 100
PETRI DISHES, WITH COVER
Laboratory dish for making germ cultures.
Sample awaited.
162
Page 15
QUANTITY
UNIT COST
COST TO GOVT.
TEST TUBES, GLASS
Samples awaited
4 670 000
$ o 03
140 100
300 (av.)
495 037
STERILIZERS, NEW AND USED
Considered unsafe for medical department
use by Army. Negotiations with manufacturer
in process.
1 381
BANDAGES, MUSLIN
Samples have not yet arrived.
134 584
128 034
doz.
BOXES, TABLET
500 boxes in a carton. Believed to be
World War I stock. Samples awaited.
320 000
cartons
40
128 000
FLOSS, SILK
Samples awaited.
510 000
spools
173 400
163
Page 16
QUANTITY UNIT COST
COST TO GOVT.
7. General Products
CAMERAS, AIRCRAFT
Each camera has great variety of collateral
equipment. Obsolete type. Physical inspection
being made. Informal negotiations with Fairchild
Camera Co. in process.
307 386
96
BATTERIES, DRY CELLS AND: PACKS
Overage for Army use. New declarations
come in and sales are reported regularly.
150 000
CRATES, WOOD, USED
Have been used for packing guns. Awaiting
inspection and appraisal report.
129 540
$ 1 50
220 319
103 373
55
56 855
AMMUNITION BOXES, NEW, METAL
Hinged metal boxes for carrying small
arms ammunition into combat. We have
prospective purchaser for entire quantity
for over-counter sale as utility box.
Sold 9/12/44
167
Page 17
QUANTITY
COST TO GOVT.
:
DRUMS, 55 GALLON, USED
UNIT COST
130,000 declared by Army cannot be located
physically. Scathered throughout country.
Survey being made on condition of drums.
54 000
$ 2 50
135 000
2 00
3 200 000
GASOLINE CANS, 5 GALLON
One million are "Jerricans" made after
German model with spout that farmers
like better than our regular Blitz can.
1 600 000
8. Paper, and Office Equipment
PAPER, FILTER
Special filter paper made for wrapping
the cannister in a gas mask. In narrow
rolls (5 and 61" wide). Tearing strength
practically nil. Paper is very absorbent.
Disintegrates in contact with water.
Cannot be used as pulp. Very poor chance
of reconversion to other uses.
51 835
Total
$ 53 622 271
165
SURPLUS MOTORCYCLE REPORT
For 7 Days and Period Ended, Sept. 9, 1944
(Period Began January 1, 1944)
Period to Date
7 Days to Sept. 9, 1944
Total Motorcycles Declared
Less Declarations withdrawn
Less Loans to Other Federal Agencies
Less Transfers to Other Federal
Agencies
12008
3240
4
7
OH
o
4
0
Net Motorcycles Declared for Sale
Less Motorcycles Sold
Balance of Motorcycles on hand
217
210
11791
5324
6467
3236
184
ANALYSIS OF INVENTORY
Inspected and ready for sale
1433
5034
Not Inspected
ANALYSIS OF DISPOSAL ACTIVITY
INVENTORY
DECLARATIONS
Period Ending July 1st
4 Weeks Ending July 28th
4 Weeks Ending Aug. 26th
7 Days Ending Sept. 2nd
7 Days Ending Sept. 9th
4518
1126
1938
1186
3240
DISPOSALS
END OF PERIOD
INVENTORY
CHANGE
4102
416
636
906
I 490
577
2267
3415
6467
1361
38
188
1148
3052
SURPLUS USED T CKS REPORT
For 7 Days and Period Ended, Sept. 9, 1944
(Period Began January 1, 1944)
Period to Date
7 Days to Sept. 9, 1944
Total Used Trucks Declared
Less Declarations withdrawn
Less Loans to Other Federal Agencies
34631
7137
30
1009
0
145
Less Transfers to Other Federal
Agencies
12
42
Net Used Trucks Declared for Sales
Less Used Trucks Sold
Balance of Used Trucks on hand
2836
3990
7095
30641
17945
12696
662
ANALYSIS OF INVENTORY
Inspected and ready for sale
3440
9256
Not Inspected
ANALYSIS OF DISPOSAL ACTIVITY
Declarations
Period Ending July 1st
4 Weeks Ending July 29th
4 Weeks Ending Aug. 26th
7 Days Ending Sept. 2nd
7 Days Ending Sept. 9th
20311
1738
1877
3568
7137
Disposals
10300
5308
5067
556
704
Inventory
End of Period
10011
6441
3251
6263
12696
Inventory
Change
-
3570
- 3190
T 3012
I 6433
167
SURPLUS USED CA REPORT
For 7 Days and Period Ended Sept. 9, 1944
(Period Began January 1, 1944)
Period to Date
7 Days to Sept. 9, 1944
Total Used Cars Declared
Less Declarations withdrawn
Less Loans to Other Federal Agencies
Less Transfers to Other Federal Agencies
6603
2598
105
19
2
1
Net Used Cars Declared for Sale
681
557
5922
2502
2596
Less Used Cars Sold
Balance of Used Cars on hand
108
3420
ANALYSIS OF INVENTORY
Inspected and ready for sale
462
2958
Not Inspected
ANALYSIS OF DISPOSAL ACTIVITY
Declarations
Period Ending July 1st
4 Weeks Ending July 29th
4 Weeks Ending Aug. 26th
7 Days Ending Sept. 2nd
7 Days Ending Sept. 9th
Disposals
Inventory
Inventory
End of Period Change
2864
2013
851
624
284
233
610
363
865
786
87
932
I 146
2598
110
3420
I 2488
I
14
- 79
169
PORVICTORY
TREASURY DEPARTMENT
o
PROCUREMENT DIVISION
.
WASHINGTON 25
OFFICE OF THE DIRECTOR
September 12, 1944
SECRET
MEMORANDUM TO THE SECRETARY:
There is submitted herewith the weekly
report of Lend-Lease purchases.
Requisitions have been received for 4,500
Farm Type Tractors and 4,000 tons of Binder Twine
for agricultural purposes in the U.S.S.R.
the
CliftonProcurement
of E. Mack
Director
no
Attachment
BUY
STATES
WAR
BONDS
LEND-LEASE
TREASURY DEPARTMENT, PROCUREMENT DIVISION
STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS
AS OF SEPTEMBER 6, 1944
Beoney
Allocations
Requisitions
in Purchase
Requisitions not
ascher
(In Millions of Dollars)
Administrative
Miscellaneous &
Total
U. K.
Russia
China
$5522.1
$2627.1
$2257.3
$133.9
$15.9
$487.9
(5522.0)
(2627.0)
(2257.3)
(133.9)
(15.9)
(487.9)
$ 154.2
$ 28.2
$ 55.4
$ 2.4
( 176.5)
( 63.1)
$ 102.8
$ 32.8
( 40.2)
$ 62.4
( 73.2)
$
Expenses
-
Undistributed
$ 68.2
2.3)
-
( 70.9)
.2
-
$ 7.4
.1)
-
Cleared by W.P.B.
( 109.7)
( 26.8)
Obligations
$1975.2
$1633.0
$ 62.5
$13.9
(1971.8)
(1621.4)
( 62.5)
$290.2
(Purchases)
$3974.8
(3955.1)
(13.4)
(286.0)
Deliveries to Foreign
$2358.7
$1442.9
$ 840.7
$ 24.5
-
( 24.5)
$ 50.6
-
( 50.5)
Governments at U. S.
Ports*
(2327.7) (1429.4) ( 823.3)
9.6)
#Deliveries to foreign governments at U. S. Ports do not include the tonnage that is
either in storage, "in-transit" storage, or in the port area for which actual receipts
have not been received from the foreign governments.
Note: Figures in parentheses are those shown on report of August 30, 1944.
170
171
POSYICTORY
BUY
EXECUTIVE OFFICE OF THE PRESIDENT
WAR
WAR REFUGEE BOARD
WASHINGTON 25, D.C.
OFFICE OF THE
EXECUTIVE DIRECTOR
SEP 12 1944
My dear Mr. Secretary:
I am pleased to send you herewith a
copy of the report of the War Refugee Board for
the week of August 28 to September 2, 1944.
Very truly yours,
Justice
Pehle
Executive Director
The Honorable,
The Secretary of the Treasury.
Enclosure.
172
Report of the War Refugee Board
for the week of August 28 to September 2, 1944
SITUATION IN HUNGARY
Despite the broad measures which have been taken to effectuate
the declaration of the United States and British Governments
with respect to the Hungarian offer, we have as yet received
no indication that Jews are actually emigrating or escaping
from Hungary, except in small clandestine movements. From
reports received from the Board's representatives in Bern and
Ankara, there 1s an evident tendency on the part of the
Hungarian Government to "relax on its laurels," while passively
submitting to German pressure for further deportations of Jews,
including Hungarian nationals. McClelland and Hirschmann
recommended sustained pressure on the Hungarian Government
in broadcasts and Hungarian-language pamphlets, repeating
warnings of punishment for those who share the German guilt
by participation or acquiescence, and appeals to Hungarians
"of good will" to oppose Jewish persecutions.
McClelland advised us that the International Red Cross feels
that a proposal which would evade German disapproval of
emigration to Palestine based on their alleged wish not to
jeopardize their good relations with the Arabian Mufti might
have a better chance of success than present offers. The
International Red Cross has accordingly recommended that this
Government, in concert with the British, indicate to the
Government of Hungary its willingness to transport to some
specified haven of refuge in Allied territory a certain number
of Hungarian Jews whose removal is not based on possession of
Palestine certificates and who do not plan to go to Palestine.
It was McClelland's opinion that the proposal has sufficient
merit to justify a trial.
The Venezuelan Government has authorized its Legation in Lisbon
to visa the passports of Jewish refugees, especially children,
who are travelling to the American continent, even though such
persons may not be proceeding to Venezuelan territory. We
advised Board Representative Dexter of this action and requested
him to consult the Venezuelan Legation and the Portuguese
authorities with a view to inducing the latter to grant large
numbers of transit visas to Jews in Hungary and other Germancontrolled territories.
172
Report of the War Refugee Board
for the week of August 28 to September 2, 1944
SITUATION IN HUNGARY
Despite the broad measures which have been taken to effectuate
the declaration of the United States and British Governments
with respect to the Hungarian offer, we have as yet received
no indication that Jews are actually emigrating or escaping
from Hungary, except in small clandestine movements. From
reports received from the Board's representatives in Bern and
Ankara, there is an evident tendency on the part of the
Hungarian Government to "relax on its laurels, while passively
submitting to German pressure for further deportations of Jews,
including Hungarian nationals. McClelland and Hirschmann
recommended sustained pressure on the Hungarian Government
in broadcasts and Hungarian-language pamphlets, repeating
warnings of punishment for those who share the German guilt
by participation or acquiescence, and appeals to Hungarians
of good will" to oppose Jewish persecutions.
McClelland advised us that the International Red Cross feels
that a proposal which would evade German disapproval of
emigration to Palestine based on their alleged wish not to
jeopardize their good relations with the Arabian Muft1 might
have a better chance of success than present offers. The
International Red Cross has accordingly recommended that this
Government, in concert with the British, indicate to the
Government of Hungary its willingness to transport to some
specified haven of refuge in Allied territory a certain number
of Hungarian Jews whose removal is not based on possession of
Palestine certificates and who do not plan to go to Palestine.
It was McClelland's opinion that the proposal has sufficient
merit to justify a trial.
The Venezuelan Government has authorized its Legation in Lisbon
to visa the passports of Jewish refugees, especially children,
who are travelling to the American continent, even though such
persons may not be proceeding to Venezuelan territory. We
advised Board Representative Dexter of this action and requested
him to consult the Venezuelan Legation and the Portuguese
authorities with a view to inducing the latter to grant large
numbers of transit visas to Jews in Hungary and other Germancontrolled territories.
173
2-
Reports on Conditions in Hungary
The Hungarian Foreign Ministry, in submitting supplemental
information to the Swiss Legation in Budapest concerning the
treatment of Jews in Hungary, differentiated between "Shutzhaft"
and internment by stating that Jews claiming foreign nationality
are detained under "Shutzhaft" in their own interest, because
Hungarian authorities are unable to guarantee their security
without assembling them under police control. It was further
stated that, as contrasted with conditions of internment, Jews
placed under "Shutzhaft" are permitted to leave the place of
detention unaccompanied by police when it is necessary for them
to attend to private or professional affairs. Those having the
means to do so are allowed to buy foodstuffs, but since no
ration cards are issued to them, such purchases must be made
on the black market. Those without resources are cared for
by the Jewish Council.
The persons detained under "Shutzhaft" are lodged in two
vast premises, one for men and one for women, at a deaf and
dumb institute at Festetich-Utca in Budapest. Sleeping
accommodations consist of matresses and bedding, some placed
on iron frames, some on the floor. In a recent inspection by
a Swiss Legation representative and the International Red Cross
delegate, sanitary installations were found to be insufficient
in number and poorly cared for and the subsistence provided by
the Jewish Council was found to be inadequate, especially for
children, who receive no milk. The Red Cross delegate stated
that, although the inmates are permitted to leave the premises
for exercise in the courts, he regarded the conditions there
as the worst he had encountered recently among European civilian
internees. He and the Swiss Legation representative agreed
that it is impossible to distinguish between "Shutzhaft" and
internment except for the freedom to leave the premises in the
case of the former. The situation was believed to be due to
the attitude of the authorities and local functionaries, who
are so convinced that conditions at Festetich-Utca are excellent
compared with other Hungarian camps that it is difficult to
persuade them to take steps to improve the situation. The Red
Cross
andalleviate
the Swiss
Legation
are, nevertheless, making every
effort to
these
conditions.
Included among the persons detained under "Shutzhaft" are
seven American citizens entitled to protection, and thirty
persons affected by "rules," as well as alien relatives of
American citizens. It was also reported that a number of
American citizens who were released from ghettos in the provinces following intervention by the Swiss Legation are now
held in local prisons but must be transferred to Budapest
shortly.
174
-3 Arrangements have been made by the Red Cross delegate to
deliver parcels of food weekly to all internees having rights
to Swiss protection.
Visas for Refugee Children
Our Embassy in Managua advised us that the Nicaraguan
Foreign Office has no objection to the 100 Nicaraguan visas
authorized for refugee children being issued to either
Hungarian or French children.
We advised Minister Harrison and Representative McClelland
of similar recently reported action by the Irish and Honduran
Governments and suggested that the information be submitted to
Hungarian authorities through official Swiss or International
Red Cross channels, if he believed it would be helpful.
SITUATION IN BULGARIA
Board Representative Hirschmann advised us of a report received
on reliable authority that the Bulgarian Anti-Jewish laws have
been set aside by a decree of the Regents. Effective as of
August 28, 1944, all Jews may practice any profession and may
circulate as freely as the rest of the population. Since the
Bulgarian Parliament had originally passed the decrees, it
was expected that they would be confirmed pro forma when the
new Parliament meets. A Commission has been appointed in the
Ministry of Finance to study the property question with the
view of restoration of property to original owners, insofar
as that is possible.
FOOD PARCELS PROGRAM
Representative McClelland reported that the International Red
Cross has begui aking into 2 kilo parcels 50 tons of salvaged
"Christina" cargo. It expects to forward the first shipment
of approximately 11,000 parcels within two weeks to civilian
internees in camps in Hamburg, Natzweiler, Ravensbrueck,
Dachau, Sachsenhausen, Buchenwald, and the Mauthausen penetentiary.
EVACUATIONS THROUGH TURKEY
Ambassador Steinhardt advised us that, in addition to all other
refugees reported as having transited Turkey en route to
Palestine, approximately 800 Jewish refugees from Greece and
the Greek Islands bound for Palestine have entered Turkey
during the past few months through small ports on the Aegean
without Turkish visas or other documents. While not formally
consenting to the movement, the Turkish authorities have,
nevertheless, assisted in the prompt transportation of these
refugees to Palestine.
175
-4EVACUATIONS TO SOUTHERN ITALY
Following its request for information as to what accommodations
might be found in liberated Italy for refugees from Northern
Italy, the British Foreign Office received a report from
Sir Noel Charles, the British High Commissioner in Rome,
indicating that an additional 5,000 refugees could be accommo-
dated. The report also suggested the use of North African
camps. While it is the understanding of the Foreign Office
that there are considerably more than 5,000 refugees north of
the battle line, it believes that the military situation is
changing so rapidly that the problem of accommodating the
additional 5,000 will not arise. It therefore feels that
assurance of accommodation without numerical limitation can
safely be given. Sir Noel is being instructed to ascertain
to permit the rescue of these people. If not, he is to request
the Pope to do so, with assurance that the persons rescued will
be received and cared for by Allied authorities; if an appeal
whether the Pope has made an appeal to the German authorities
has been made, Sir Noel is to suggest that this assurance be
repeated by the Pope. We cabled this information to Myron
Taylor and requested that he join with his British colleague
in taking the steps indicated. At the same time we advised
Board Representative Ackermann and Ambassador Winent of our
action and requested the latter to inform the British Foreign
Office accordingly.
RECOGNITION OF LATIN-AMERICAN PASSPORTS
Our Embassies in La Paz and Asuncion were advised of a report
which we had received from our Embassy in Madrid to the effect
that the Spanish Government has not yet received representations
from the Governments of Bolivia and Paraguay with respect to
the proposed arrangements for an exchange on Spanish territory
of German nationals in those countries for persons in Germanoccupied territories bearing Bolivian and Paraguayan documentation. We requested that Bolivian and Paraguayan officials be
urged to take speedy action to enable Spain to conclude the
exchange arrangements, and that assurances be repeated that
the physical admission of the persons involved into those
countries is not expected.
A report from our Legation in Bern indicating that Spanish
representation of Paraguayan interests in German territory
has not been energetically pursued was relayed to our Embassies
in Asuncion and Madrid with requests that appropriate action
be taken in an effort to obtain a more satisfactory attitude
on the part of Spanish officials in Madrid and in Berlin in
the discharge of the humanitarian duty voluntarily undertaken
by Spain. Our Embassy in Madrid was also asked to support
the Paraguayan Government's request to the Spanish Government
to seek permission for commissioners of the International Red
Cross to visit concentration camps in German territory where
176
-5persons claiming Paraguayan nationality are held and to which
the International Red Cross has in the past had little or
no access.
Another report from our Legation in Bern concerned an individual
born in Warsaw, Poland, and claiming Cuban nationality. In
view of the possibility that German authorities will consider
him a stateless Polish Jew and condemn him to deportation and
death, our Embassy 1. Havana was asked to endeavor to have the
Cuban Foreign Office Puquest the Swiss authorities to demand
for the individual in question, as well as any other persons
similarly situated, treatment to which Cuban nationals are
entitled.
The Guatemalan and Salvadoran Governments have requested Swiss
representation of their interests in Hungary, primarily for
the protection of persons in Hungary holding passports and
and EL Salvador. They have also authorized the United States
Government to negotiate for the exchange of such persons. The
Government of Guatemala has, however, reserved the right to
documents issued in the names of the Governments of Guatemala
investigate the legality of the documents in question, and to
refuse entry to persons whose documentation is not satisfactory.
Our Embassy in Haiti advised us that the Haitian Government
had transmitted to the Swiss Federal authorities instructions
regarding the status and treatment of holders of Haitian
documents in German-controlled territory. It is hoped that
this action will serve to safeguard individuals affected by
the decree-law of February 4, 1942, pursuant to which persons
naturalized abroad forfeited Haitian nationality if they did
not return to Haiti before August 5, 1942.
The Government of Honduras has forwarded to this Government
for transmittal to the Government of Switzerland a communication protesting the removal of certain holders of Honduran
passports from the civilian internment camp at Vittel and
urgently requesting information concerning the present whereabouts and welfare of the persons named as well as the names,
whereabouts, and welfare of any other persons to whom documents
have been issued in the name of the Government of Honduras and
who may have been similarly removed from or who are detained
at other than civilian internment camps. The communication
further demands the immediate transfer of all such persons to
civilian internment camps where they may be readily available
for exchange, and reiterates the determination of the Government of Honduras not to permit the validity of any documents
issued in its name to be questioned by Germany and the expectation of the Honduran Government that the holders of such
177
-6documents shall be accorded the same treatment which the German
Government hopes to obtain for its nationals in Honduras.
The Venezuelan Government has requested the Swiss Federal
Political Department to extend its protection of Venezuelan
interests to Hungarian territory and other countries of Central
and Eastern Europe for the purpose of aiding the bearers of
Venezuelan passports in those regions.
Director
Executive Pehle
January W.