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178
SECRET

A-1766

Sept. 12, 1944

9:15 AM
AMERICAN EMBASSY,
LONDON.

FROM DEPARTMENT AND FEA FOR END.

Following telegram dated August 26, 1944 has been received

from Geneva:

"Intercross has received urgent appeal from Polish Cross
concerning dire need food for hundred thousand women children
aged persons evacuated Warsaw region now in camp at Pursakow

and inquires as to possibility distributing certain quantity

SFP ex-shipments 74 75 to these persons. Intercross believes
could have distribution supervised by delegate."
Since the situation of these unfortunate people would
seem to be identical to those in concentration camps elsewhere
in occupied Europe in behalf of whom arrangements were made in
June during the discussions between Mr. Berle and Mr. Foot to

forward limited amounts of relief supplies through the Inter-

national Red Cross, we have authorised the American Red Cross

to make the following reply to the above-quoted telegram:

"Unable authorize distribution SFP for this purpose.
However, Ameross authorizes shipment from cargo ex-CHRISTINA

250 tons canned goods from Switzerland to Pursskow for free

distribution provided:

"1. Intercross has information indicating need exceeds
that of normal civilian population outside camp.

#2. Intercross is able exercise supervision over distribution
either directly or through agency responsible to Intercross, and
3. Intercross prepared submit complete reports supporting
distribution food to proper beneficiaries."
Your 7146, September 1. lie will keep in mind the possibility of diverting to Pursskow food packages now en route for
persons in concentration damps. However, the action described
above seems to be the only feasible measure that can be taken
at present in view of the immediacy of the need and the time
which would be required to forward these parcels (which have
not as yet reached Goteberg) to these people.
HULL

edk

SWP:EDK:EHJ 9-2-44

179

ORIGINAL TEXT OF TELEGRAM SENT

FROM:

Secretary of State. Washington

TO:

American Enbassy. London

DATED:

September 12, 1944

NUMBER:

7402

CONFIDENTIAL

FROM WAR REFUGER BOARD TO WINANT AND MANN, LONDON

Reference your No. 7191. September 2. 1944, concerning

License W-2258.

Information given you by Poles incorrect. Remittance to

finance operations envisaged by License W-2258 will be made by

Folish War Relief of USA, Inc. through regular banking channels
to Jan Kwapinski and/or Jas Stanosyk and/or Ludwik Gresfeld
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.
MULL

180

Distribution of

September 12, 1944

special arrangement.

7 p.m.

true reading only by
(SECRET w)
WAR REFUGEE BOARD

AMPOLAD
CASERTA
128

The following for Ackermann is WRB 48.

Please refer to your 106 of August 11 and other reports
suggesting the establishment of stockpiles in Italy to be

available for the relief of Yugoslavs upon the liberation of
their country. Your efforts in bringing the need for such
stockpiles to the attention of Army and UNRRA officials are
highly praiseworthy and should certainly be continued if you
deem it desirable to do so.

We have considered carefully that action the Board could

take here to support your efforts, particularly in the light
of present military operations and successes in Yugoslavia

and elsewhere in Europe. In addition to the fact that post-

war or postliberation relief is not strictly within the

province of the Board, we have concluded that there is little
effective action we can take at this end to hasten the creation of stockpiles which you have not already taken by drawin the attention of the responsible agencies to the urgency
of the problem.
HULL
(GHW)

.
WRB:MMV:KG

9/11/44

181

Distribution of
true reading only by

September 12, 1944

special arrangement

8 p.m.

(SECRET W)

War Refugee Board
AMPOLAD
CASERTA
129

The following is for Offie from War Refugee Board as its 47.
Reference your 272 of September 3, 1944.

Relief to refugees in areas liberated from the
Germans not within jurisdiction of War Refugee Board.

American Jewish Joint Distribution Committee is arranging for assistance through Switzerland to Polish-Hungarian

refugees in Bucharest referred to in your oable.
HULL
(GHW)

WRB:MMV:KG

9/7/44

SE

182

9/12/44
CABLE FROM WAR REFUGEE BOARD TO ACKERMANN, AMERICAN CONSULATE GENERAL,

NAPLES, ITALY.

Please refer to your 106 of August 11 and other reports

suggesting the establishment of stockpiles in Italy to be available

for the relief of Yugoslavs upon the liberation of their country.
Your efforts in bringing the need for such stockpiles to the attention of Army and UNRRA officials are highly praiseworthy and should

certainly be continued if you deem it desirable to do so.
We have considered carefully what action the Board could take

here to support your efforts, particularly in the light of present
military operations and successes in Yugoslavia and elsewhere in

Europe. In addition to the fact that postwar or postliberation relief is
not strictly within the province of the Board, we have concluded that

there is little effective action we can take at this end to hasten the
creation of stockpiles which you have not already taken by drawing the
attention of the responsible agencies to the urgency of the problem.
THIS IS WRB CABLE TO NAPLES NO.

48

183

PLAIN

PEM-246

Rome

Dated September 12. 1944

Rec'd 3:10 p.m.
Secretary of State
Washington

335, Twelfth
No. 4. FOLLOWING FOR AMERICAN JOINT DISTRIBUTION
COMMITTEE, NEW YORK, FROM ARTHUR GREENLEIGH RELAY
JOSEPH SCHWARTZ:

Received your cablegram yesterday. Had assumed

detailed budget sent you by Perlman, July, would suffice.
Following represents minimum needs on inadequate standard
for September For Rome assistance 700 foreign and 700

Italian refugees 2,000,600 lire. For medical care for
refugees for administration and for retraining, 300,000
lire. For relief 2000 Roman Jews 200,000 lire. will
you also authorize subvention Jewish community Rome for

reopen orghanage, general hospital, matrenity hospital,

day nursery, et cetera, additional 600.000 lire per month
For assistance destitute newly liberated areas of
Perugia Sienna Assisi Aquila Terano Leghorn Florence,

need additionally total 600,000 lire for 600 foreign
and Italian refugees. For Bari area for 180 foreign and
ninety Italian refugees and for retraining. need 190,000
lire. For Naples area for 656 foreign and 24 Italian

refugees, need 560,000 lire. For repayment debts Bari
requires 600,000 lire. For repayment of only pressing debts
Rome area, urgently need 8,000,000 lire. Every effort
being made reduce costs. Those eligible aid from Legation

or Mission shifted from Delasem rolls. Letter follows
giving details.

LMS

KIRK

184

AIRGRAM
From: American Legation

UNRESTRICTED

Tangier, Morocco

Date: September 12, 1944
Rec'd: September 19, 5 p.m.

Secretary of State
Washington

A-199 September 12, 1944 6 p.m.

Reference Legation's telegram No1 157 of June 2, 10 a.m. 1944,
and subsequent correspondence concerning the departure from Hungary
of 500 Jewish refugee children. The following developments may be of
interest to the War Refugee Board.
A telegram dated August 31, 1944, addressed by the International
Red Cross at Budapest to the President of the local Jewish community,

a copy of which was exhibited to the Legation, read in translation

partially as follows:

"Government authorized departure 500 children and 70 adults
accompanying staff transit visas at present unobtainable stop

gathering children in special camp under protection Interna-

tional Red Cross Committee around Spanish Legation here daily
cost about 4,000 pengoes stop cable agreement stop

In reply to this telegram the local office of the American Joint Distribution Committee cabled on September 3, 1944, agreeing to accept

responsibility for the maintenance of this refugee group.
The local representative of the American Joint Distribution
Committee has informed me that it is his belief that the 500 children
and 70 adults will remain in Hungary under the protection of the
Spanish Legation in Budapest pending the conclusion of hostilities
when they will be free to resume their normal mode of living. He

adds that in conversation with Senor Suner, Spanish Consul General
at Tangier, the Consul General-expressed his interest in having the
number of Jewish persons in Hungary under Spanish protection substantially increased and that he intended to make such a proposal to the
Spanish Foreign Office. The Department will be informed of any
developments in this direction.
CHILDS

840.1
ADF:gp

Copy to: American Embassy, Madrid

185

MB

This telegram must be
paraphrased before being

September 12, 1944

communicated to anyone

10 a.m.

other than a Government
agency. (RESTRICTED)
WAR REFUGEE BOARD
AMEMBASSY

LISBON
2493

The War Refugee Board cable 88 below is for Dexter.

Please refer to your message 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 brought
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 circular of

September 7 indicating that the Board's activities

should be strictly 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. aAt 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 in 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 appreciateion and thanks for
the services you have rendered the Board.
Sent to Lisbon, repeated to London for Mann as 7371 of

Sept. 12.

HULL

CODE ROOM: Repeat to London 7371 with following opeining

sentence. The following to Lisbon is repeated

for information of Mann.

186

CABLE TO NORWEB, LISBON, FROM WAR REFUGEE BOARD.

Please deliver the following message to Elisabeth Daxter,
111 Rua Marquez de Fronteira, Lisbon, from Edward A. Cahill of the
Unitarian Service Committee:
"217 NOEL FIELD MARSBILLE PLEASE RELAY QUOTE THRILLED
NEWS YOUR ARRIVAL MARSEILLES STOP COMMITTEE URGES ALL
ENERGY INITATIVE REESTABLISHING REFUGEE WORK FRANCE WITH

OFFICE AND PERSONNEL STOP PLEDGE FULL FINANCIAL SUPPORT STOP
PLEASE REPORT YOUR FINDINGS AND DECISIONS SOONEST STOP YOUR
TOTAL JANUARY THROUGH SEPTEMBER REFUGE SWITZERLAND BUDGET

64.250.00 CABLED YOU 10.000 AUGUST 31 STOP BALANCE SWISS
BUDGET 9.317.20 AVAILABLE CABLING SOONEST STOP REFERENCE
YOUR REQUEST YUGOSLAVIA CZECHOBLOVAKIA HUNGARY ADDITIONAL

FRANCE CABLING BERNE AS USUAL TODAY 20.000 THIS ACCOUNT
YOUR DISCRETION MAY USE ALL FRANCE STOP AVAILABLE ABOUT
13.000 MORE FOR FRANCE NOW STOP HOPING FURTHER GRANT 50.000
ALL AMOUNTS ABOVE DOLLARS UNQUOTE"

THIS IS WRB CABLE TO LISBON NO. 90

9:30 a.m.
September 12, 1944

RDrury 9/11/44

187

September 12, 1944

MB

Distribution of
true reading only by

7 p.m.

special arrangement.
(SECRET w)

War Refugee Board
AMLEGATION
STOCKHOLM

1817

The following for Olsen is WRB 84.
Reference Department's 1576 of August 8, 1944
(WRB to Stockholm No. 69).

American Relief for Norway advises that third

remittance of $10,000 will be transferred to you this
week for special Norwegian program.
HULL
(GLW)

WRB:MMV:KG

9/12/44

NOE

SWP

WT

188

CABLE TO JOHNSON, STOCKHOLM, FOR OLSEN FROM WAR REFUGEE BOARD.

Reference Department's 1576 of August 8, 1944 (WRB to
Stockholm No. 69).

American Relief for Norway advises that third remittance

of $10,000 will be transferred to you this week for special
Norwegian program.

THIS IS WRB CABLE TO STOCKHOLM NO. 84

9:30 a.m.
September 12, 1944

FHodel:rd 9/11/44

189

CABLE TO MINISTER JOHNSON, STOCKHOLM, FOR OLSEN FROM WAR REFUGEE BOARD

Reference your Nos. 2569 of July 11 and 2668 of July 18.
On recommendation of Board, Treasury has issued license to

Polish War Relief permitting remittance of $25,000 to "Polska

Social Ahjalpen for Flyktinger," care of Olsen.
This is WRB cable to Stockholm No. 85

11:30 a.m.
September 12, 1944

FHodel:rd 9/11/44

190

September 12, 1944

MB

Distribution of
true reading only by

8 p.m.

special arrangement.
(SECRET w)

War Refugee Board

AMLEGATION
STOCKHOLM

1818

The cable below for Olsen is WRB 85.

Reference your Nos. 2569 of July 11 and 2668 of
July 18.

On recommeriration of Board, Treasury has issued

license to Polish War Relief permitting remittance of
$25,000 to QUOTE Polska Social Ahjalpen for
Flyktingar UNQUOTE care of Olsen.
HULL

(GLW)

WRB:MMV:KG

9/12/44

NCE

WT

SWP

191

ORIGINAL THAT OF TELEGRAM SENT

FROM:

Secretary of State, Washington

TO:

American Legation. Bern

DATED:

September 12. 1944

NUMBER: 3152
SECRET

For McClelland.

Please deliver the fellowing message from Yead
Hahatzala to Sternbuch, St. Gallens

QUOTE Please detail your rescue activities
in Hangury and Slevakia to McClelland.
Please also communicate to McClelland NAMES

and addresses of trusted leaders of rescue work

in Hungery and Slevekia. It is hoped that this

will enable these POTSORS to obtain financial
assistance for rescue activities through WRB.
UNQUOTE

The fellowing is for MoClelland from WRD:
Upon receipt of names and addresses please cable them

at once to WRB.

THIS IS WRB GABLE TO BERN NO. 165.
NULL

192

CABLE TO MINISTER HARRISON, BERN, FOR MC CLELLAND FROM WAR REFUGEE BOARD.

Please deliver the following message to Mrs. Noel Field, 12 Rue du
Vieux College, Geneva, from Edward A. Cahill of the Unitarian Service
Committee:
QUOTE FOLLOWING MESSAGE HAS BEEN SENT TO ELISABETH DEXTER,

LISBON INNERQUOTE 217 NOEL FIELD MARSEILLE PLEASE RELAY
FOLLOWING MESSAGE STOP THRILLED NEWS YOUR ARRIVAL MARSEILLE
STOP COMMITTEE URGES ALL ENERGY INITIATIVE REESTABLISHING
REFUGEE WORK FRANCE WITHOFFICE AND PERSONNEL STOP PLEDGE
FULL FINANCIAL SUPPORT STOP PLEASE REPORT YOUR FINDINGS AND
DECISIONS SOONEST STOP YOUR TOTAL JANUARY THROUGH SEPTEMBER
REFUGEE SWITZERLAND BUDGET 64.250.00 CABLES YOU 10.00 AUGUST 31

STOP BALANCE SWISS BUDGET 9.317.20 AVAILABLE CABLING SOONEST STOP
REFERENCE YOUR REQUEST YUGOSLAVIA CZECHOSLOVAKIA HUNGARY ADDITIONAL

FRANCE CABLING BERNE AS USUAL TODAY 20.000 THIS ACCOUNT YOUR
DISCRETION MAY USE ALLERANCE STOP AVAILABLE ABOUT 13.000 MORE
FOR FRANCE NOW STOP HOPING FURTHER GRANT 50.000 ALL AMOUNTS
ABOVE DOLLARS END INNERQUOTE UNQUOTE

THIS IS WRB CABLE TO BERN NO. 167

9:30 a.m.
September 12, 1944

RDrury 9/11/44

193

CABLE TO MINISTER HARRISON FOR MCCLELLAND, BERN, SWITZERLAND

The War Refugee Board requests that you deliver the following
message to Jarblum Riegner, 37 Quai Wilson, Geneva, Switzerland, from
Leon Kubowitzki, 1834 Broadway, New York, New York:
QUOTE Number 132 learned 700 Jews deported from Fossoli
camp to Germany. Have repeatedly requested Interredoross demand

from fascist authorities in northern Italy right include Jews

depréved freedom movement within scope of its work since

Italians always conceded application POW Treaty to civilian
internees. Suggest you urge Interredoross make formal represen-

tation fascist authorities.

WORLD JEWISH CONGRESS

LEON KUBOWITZKI UNQUOTE

THIS IS WRB CABLE TO BERN NO. 168

3:40 p.m.
September 12, 1944

BAkziniar 9/11/44

194
PEM

AMLEGATION

PLAIN

September 12, 1944

BERN

3154, Twelfth
Regarding Fornand Salomon and his wife and daughter

Yvonne, interned at Draney, near Paris; Jules Levy, Lina
Levy, Sigismund Salomen and his sons Edgar, Gilbert,

Alfred and Pierre, interned at Drancy; Pinkas Lipschuetz
and his family residing at Brussels: Mr. and Mrs. Minkowski,
Benedikt Hacker, Arthur Samuel, Mrs. Jeanne Simonnet, Miss
Marie Helene Veil and Mrs. Nathalie Mas and her son Roger

Denis Mas; Curt Dressler, residing at Brussels; and
Matthias Arnold Hijman, interned at Westerbork, Netherlands,

respectively, following is pertinent portion of note from
Minister of Foreign Affairs E1 Salvador regarding afore-

mentioned persons: QUOTE: The Government of El Salvador

recognizes and will recognize the validity of the documents

of Salvadoran nationality which the said persons possess

until, in view of the fact that the files of its

Consulates located in enemy territory cannot now be con-

sulted, it decides to the contrary, if it should do so, and in
its name, availing myself of the kind offer which you

made me, I request, through your worthy medium, that Your
Excellency's Government transmit the foregoing to the
Department of Foreign Relations of Switzerland, as the

reply of this Foreign Office concerning the documents in

question. UNQUOTE.

Please request Swiss Government to take appropriate action
in this connection including addition of names given above to

list of persons eligible for exchange.

5805.

It is assumed that foregoing answers questions in your
hull

816.012/9-444
SWP:ABC:BB

9-11-44

WRB

CCA

195

CABLE TO ANKARA

From War Refugee Board to Steinhardt

Please deliver the following message to Leon P. Denenberg,
American Consulate, Istanbul, from the International Rescue and
Relief Committee:
"Have been advised you made expenditures without

approval of Embassy STOP Please comply with specific

terms of license and rep rt your past and future expenditures to Ambassador STOP Replying your cable renew
assignment in few days"

THIS IS WRB CABLE TO ANKARA NO. 109

11:30 a.m.
September 12, 1944

FH.lab 9/9/44

COPY NO

11

196

NOT TO BE RETRANSMITTED

SECRET

OPTEL No 298

Information received up to 10 A.M. 12th September 1944.
1. NAVAL

Home Waters 11th. Enemy coastal batteries ineffectively
shelled coastal Jonvoy off South Foreland.
Mediterranean

NICE harbour swept clear of mines and

ready for shipping. On 6th/7th and 8th

French cruisers and U.S. Destroyers bombarded batteries and troop
concentrations near MENTONE. 9th. British ships shelled ammunition
dumps and road junction at RIMINI.
2. MILITARY

N.W. Europe U.S. forces have penetrated into BREST where

street fighting is taking place. French troops

on right of 3rd U.S. Army have made contact with French troops of
7th U.S. Army West of DIJON. 2nd British Army established a second
bridgehead over ALBERT CANAL. Troops of First Canadian Army have

reached ZEBRUGGE.

Southern France West of SWISS Frontier French troops met

heavy resistance 20 miles South of BELFORT

On their left U.S. troops have advanced up to 10 miles along their
whole front.

3. AIR OPERATIONS

Western Front 10th. A.E.A.F. fighter bombers destroyed

153 M.T. 7th Armoured vehicles, 12 locomotives and 59 wagons. 10th/11th. Coastal Command aircraft damaged
1

cargo ship and left 2 armed trawlers on fire off Dutch coast and

probably sank 4 minesweepers off SOUTH NORWAY.
11th. bomber Command dropped 857 tons HAVRE and 350 tons

on/synthetic oil plants. 9 aircraft missing. Escorted U.S. heavies
3

dropped 1,026 tons on 7 sythetic oil plants in Central and Eastern
GERMANY and CZECHOSLOVAKIA. 324 tons on targets at HANOVER and

MAGDEBURG. 75 aircraft attacked works at CHEMNITZ and 365 attacked

other targets. Enemy casualties reported 133:32:27 in combat
and 42:0:46 on the ground for loss of 51 bombers and 41 fighters.
In battle area 136 tons dropped on strong points near METZ and 93
tons ferry crossings N.E. of BRUGES. Fighter bombers also attacked
enemy troops and transport.

11th/12th. 427 aircraft despatched principal targets

DARMSTADT 240 (12 missing), BERLIN 47 (one missing), Sea-mining

76 (3 missing).

Italy 10th. 702 medium bombers and fighters attacked
military Bargets in ITALY and 107 operated over
YUGOSLAVIA.

MILITARY

Italy In ADRIATIC Sector heavy fighting has continued

From N.E. of FLORENCE to West coast Allied forces
have made progress all along the line

197
TREASURY DEPARTMENT
ASSISTANT SECRETARY

Washington,
September 13, 1944

MEMORANDUM FOR SECRETARY MORGENTHAU

From: Assistant Secretary Sullivan

ThS

This noon at a luncheon in honor of National Commander

Warren Atherton, I sat next to Frank Drake, President of
the Gulf oil Company. He told me how much he had enjoyed

your personal participation in the "We the People" programs
and expressed the hope that the next time he was in Washington

he might call to see you briefly.

I am told that he and his company are unique in the

oil industry in their whole-hearted support of the President
ever since Pearl Harbor.

PORDEFENSE

BUY
UNITED
STATES
SAVINGS

BONDS
MADSTANDS

198
PORVICTORY

EXECUTIVE OFFICE OF THE PRESIDENT

MA

WAR REFUGEE BOARD
WASHINGTON 25, D.C.

OFFICE OF THE

SEP 13 1944

EXECUTIVE DIRECTOR

My dear Mr. Secretary:

The policy expressed in the attached letter to Mr. Dillon Myer, Director
of War Relocation Authority, was prompted
by repeated demands made by farmers,

farm agents and public agencies charged

with the responsibility of recruiting
labor.

We trust that our action in handling
this emergency meets with your approval.
Very truly yours,

Justice
Pehle

Executive Director

The Honorable,

The Secretary of Treasury
Enclosure

BUY

199
September 12, 1944

Dear Mr. Myer:

As you know, both the War Refugee Board and the War

Relocation Au hority have received many recent inquiries

on the subject of the availability of the refugees at Fort

Ontario, Oswego, for emergency seasonal employment. As I

understand the situation, the farmers in the neighborhood
as well as local public officials have indicated the acute
and urgent need of emergency help in order to prevent the
spoilage of important food crops that are currently being

harvested and processed.

After giving careful consideration to the matter, we
have reached the following conclusions:
1. Whenever a general emergency exists and whenever

the failure to provide labor will result in demonstrable injury to the war effort, we feel that the refugees
should have an opportunity voluntarily to assist in
harvesting and processing food crops under appropriate

security controls.

2. The recruitment of refugees for emergency work
should be done through the properly accredited

agencies in the vicinity.
3. In each instance every effort should be made to
insure that a real emergency exists and that the refugees are not being used to replace or compete with
the normal labor supply in the area.
4. We believe that the refugees should return to the
shelter every night during this present emergency

employment.

Sincerely yours,
(signed) J.W. Pehle
J. W. Pehle
Executive Director

Mr. Dillon Myer, Director
War Relocation Authority
Barr Building
Washington, D. C.

200

O

CABLE FROM WAR REFUGEE BOARD TO AMBASSADOR WINANT FOR MANN, LONDON.

THIS IS WRB CABLE TO LONDON NO. 3

Please refer to your No. 7473 of September 11.
The following cable No.

of

has been

sent to Minister Harrison and McClelland in Bern:

(Here take in full text of cable to Bern)
We are unable to take any decision in the matter until
we have received a reply from Bern. In the meantime, we assume

that you will transmit to us any additional information that you
may obtain.

2:05 p.m.
September 13, 1944

JBFriednantro
9/13/44

201

London

NS.796

This telegram must be
paraphrased before being
communicated to anyone

other than a Government
agency. (SECRET-0)

Dated September 13. 1944

Rec'd 6:46 M.M., 14th

Secretary of State.
Washington.

7534. September 13, 9 p.m.
FROM MANN FOR PEHLE, VAR REFUGES BOARD.

Rene Reus and Albert Guigui to who license No. V-2215
was issued have received a telegram from Suzanne Lafellette and Sigmund

Jeremias a paraphrase of which is as follows:

"Transmitted for use only in occupied France as prescribed in
Treasury license 75,000. The balance will be available only on your
report War Refugee Board representative London Subasay on possible use
in Occupied France. War Refugee Board representative London Enhassy
should be consulted concerning refunding any unexpended balance to

national war fund here. No relief activities in liberated areas
permitted with funds transmitted under your Treasury license".

The license in question does not restrict the expenditure of the
funds to occupied France. Newever, the telegram in question appears
to express as intent that funds be used in occupied France or else

refunded. I feel that the sendere of telegram Standed to say occupied
territory instead of Occupiot Frence. Quignt states that he has comsections through which he would be able to send funds into Germany
where they would be used in an attempt to rescue persons deported from

France because of political beliefs. He understands that any funds not
excended in accordance with the license would be refunded to the donors.
Please communicate with the senders of above telegram and confirm

that there is no objection to using funds in any enery ecoupied territory

and confirm that Board has no objection to contemplated use. Guigns

expects more difficulty in obtaining consent of British for release of

funds for purposes intended.

Urgent reply requested as 1 have instructed his to take
up matter with British immediately. WINANT
VKB
NPS

202

Department

September 13, 1944

AMEMBASSY,
LONDON

7438 Thirteenth
FOR THE AMBASSADOR:

With reference to your 7053 August 29 and 7455 September

11 kindly advise IGC that you will represent this Government
on the new Executive Committee. Whenever necessary you

may designate a substitute representative on the Executive
Committee and so advise the Committee.

With reference to your A-1065 August 31 it is suggested
that Sidney Browne serve as the United States member on the

Commission of Experts to draw up a form of travel document

for stateless persons. If you agree, you may inform the
IGC that he is so designated.
HULL

(GLW)

WRB:GLW:OMH

9/13/44

202

Department

September 13, 1944

AMEMBASSY,
LONDON

7438 Thirteenth
FOR THE AMBASSADOR:

With reference to your 7053 August 29 and 7455 September

11 kindly advise IGC that you will represent this Government
on the new Executive Committee. Whenever necessary you

may designate a substitute representative on the Executive
Committee and so advise the Committee.

With reference to your A-1065 August 31 it is suggested
that Sidney Browne serve as the United States member on the

Commission of Experts to draw up a form of travel document

for stateless persons. If you agree, you may inform the
IGC that he is so designated.
HULL

(GLW)

WRB:GLW:OMH

9/13/44

203

INCOMING TRLEGRAM

BJR-766

PLAIN

London

Dated Sept. 13, 1944
Rec'd Midnight

Secretary of State,
Washington.

7555, Thirteenth
CONFIDENTIAL LIMITED DISTRIBUTION ONLY FOR DEPARTMENT AND FEA

British Treasury with approval of sub-committee
on relief has agreed to make available to Poles 400,000
Swiss france for purchase of foodstuffs in Switzerland

for shipment to civilians in Pruskow. It is anticipated
that Poles will request similar amount from United
States Treasury. Sub-committee recommends that
money be made available. END would appreciate being

informed of any action taken.
WINANT
WFS

204

CIRCULAR AIRGRAM TO AMEMBASSIES IN BOGOTA, CARACAS, CIUDAD TRUJILLO,
GUATEMALA CITY, HABANA, MANAGUA, MONTEVIDEO, PORT-AU-PRINCE, QUITO,
SAN JOSE, SAN SALVADOR, SANTIAGO, TEGUCIGALPA

Reference ismade to our earlier commmunications on the subject of
holders of Latin American documents in enemy territory.

At suggestion of Swiss authorities and in order to safeguard the
lives of holders of documents issued in the names of American republics
in German-controlled territory, this Government is endeavoring to compile
lists of such holders for transmission to the German Government. It is
requested that you suggest to the government to which you are accredited
the importance of immediately notifying the Swiss that such lists as
may be handed to the latter by Amlegation, in so far as they relate to
holders of do cuments issued in the name of the government to which you
are accredited, may be accepted by Switzerland as authentic evidence

that the persons named therein are entitled to treatment as nationals
of an American republic and are eligible for exchange.

In making this request, you may explain that the assurances
previously given on behalf of this Government that the government to
which you are accredited will not (repeat not) be expected to grant
physical admission to the persons involved and that no (repeat no)
objection will be raised to an examination by that government of status
of such persons once they are safe from enemy persecution, fully apply
to the persons whose names will be included on the lists herein
envisaged.

Should the government to which you are accredited, in addition to
sending such communication, be in a position itself to compile and submit
to Switzerland a list of holders of do cuments issued in its name or other
persons under enemy control to whom it desires to give protection, this
Government would be gald to extend to such persons the benefit of its

activities intended to safeguard their lives. If . desired, this Govern-

ment will gladly transmit any such list to the Swiss Government.

5:00 p.m.
September 13, 1944

BAkzin:ar 9/12/44

205

CABLE TO AMEMBASSY, ASUNCION, PARAGUAY

Reference ismade to our earlier communications on the subject of
holders of Latin American documents in enemy territory.

At suggestion of Swiss authorities, and in order to safeguard
the lives of holders of documents issued in the names of American
republics in German-controlled territory, this Government is endeavoring
to compile lists of such holders for transmission to the German Government. It is requested that you suggest to the government to which you
are accredited the importance of immediately notifying the Spanish
government that such lists as may be handed to the latter by Amembassy,
in so far as they relate to holders of documents issued in the name of
the government o which you are accredited, may be accepted by Spain as
authentic evidence that the persons named therein are entitled to treatment as nationals of an American republic and are eligible for exchange.
In making this request, you may explain that the assurances previously given on behalf of this Government that the government to which
you are accredited will not (repeat not) be expected to grant physical
admission to the persons involved and that no (pepeat no) objection will
be raised to an examination by that government of status of such persons
once they are safe from enemy persecution, fully apply to the persons
whose names will be included on the lists herein envisaged.
Should the government to which you are accredited, in addition
to sending such communication, be in a position itslef to compile and
submit to Spain a list of holders of documents issued in its name or
other persons under enemy control to whom it desires to give protection,
this Government would be glad to extend to such persons the benefit of

its activities intended to safeguard their lives. If desired, this

Government will gladly transmit any such list to the Spanish Government.
Repeat to Amembassy, La Paz, Bolivia.

5:00 p.m.
September 13, 1944

BAkziniar 9/12/44

206
SECRET

A.253

5:20 PM

Sept. 13, 1944

AMEMBESSEY

ASUNCION (PARAGUAY)

The following is from War Refugee Board.

Reference is made to our earlier communications on the
subject of holders of Latin American Documents in enemy territory.

At the suggestion of Swiss authorities, and in order to safeguard
the lives of holders of documents issued in the names of
American republics in German-controlled territory, this Government
is endeavoring to compile lists of such holders for transmission
to the German Government. A portion of a cable dated September 14,
1944 to the Legation at Bern follows:
QUOTE 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 COM

pilation 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 to Germany even without such confirmation: UNQUOTE.
Please discuss this matter with the Government to which you are

accredited with a view of obtaining its confirmation of the
authenticity of the list submitted by the Legation at Bern.

In making this request, you may explain that the assurances previously given on behalf of the Government that the government to
which you are accredited will not be expected to grant physical
admission to the persons invloved and that ne objection will be
raised to an examination by that government of status of such persons tonce they are safe from enemy persecution, fully apply to the
persons whose names will be included on the lists herein envisaged.

207

Asuncion A-253

2

12

Should the government to which you are accredited, in addition
to sending such communication, be in a position itself to compile
and submit to Spain a list of helders of documents issued in its
name or other persons under enemy control to whom it desires to
give protection, this Government would be glad to extend to such

persons the benefit of its activities intended to safeguard their
lives. If desired, this Government will gladly transmit any such
list to the Spanish Government.

Sent to Asuncion. Copy to La Paz, Bolivia.

HULL
mmy

AM-77 Please send copy to La Paz, Belivia.
WRB:MMV:OMH

9/16/44

RPA

NC

SWP

208

CABLE TO HARRISON, BERN, FOR MoCLELLAND FROM WAR REFUGEE BOARD

Board is receiving numberous urgent requests to take vigorous
action on behalf of Jews in Slovakia whose position is reported to

have seriously deteriorated without prior warning in recent days.
Similar disastrous condition reported in fact or imminent in Hungary.
With respect to Hungarian situation please consult Sternbuch in an

effort promptly to secure the names and addresses of persons indicated
in Department's
WRB's 165. With respect to the Slovakian
situation Union of Orthodox Rabbis reports further urgent pleas for
money from the Rabbi of Neutra. Please endeavor to ascertain from
Sternbuch the nature and such details as possible of the Rabbi of

Neutra's project and, if, in your opinion and that of Saly Mayer
such projeet is feasible and is reasonably calculated to save the lives
of Jews is Slovakia, please extend to Sternbuch all possible assistance.
To this end, you may in your discretion expend such portion of such
funds as may be available to you and to request Saly Mayer to place at

your disposal for such purpose such additional funds as you may require

within the limits of what may be available to him. IF funds in excess
of those presently available to you and Saly Mayer in Switzerland are
needed for such operation, please ad'vise the Board at once. Nothing hereinabove contained should be construed as indicating that you may not in
your discretion arrange to have Sternbuch discuss the Rabbi of Neutra's

project with you and Saly Mayer jointly. JDC is in agreement. If, regarding
any project you and Saly Mayer are not in agreement with respect to the
expenditure of JDC funds, please advise the Board fully at once.

Interested persons here assert that lives of group of Hungarian Rabbis

and leaders now reported at Bergen-Belsen could have been saved while

aboard train if funds had been sent to appropriate persons in Hungary.
Would appreciate any comments you may wist to made and such information
as there .may be availableto you with Yespect 'to' the present condition
of said group.
THIS IS WRB CABLE TO BERN NO. 169

10:20 a.m.
September 13, 1944

FH:LSL:JWP:dg 9/12/44

209
MOST URGENT

CABLE TO MINISTER HARRISON AND MCCLELLAND, BERN, SWITZERLAND.

The following cable dated September 11 has been received from
Ambassador Winant and War Refugee Board Representative Mann:

(Here take in full text of No. 7478 of September 11
from American Embassy, London).

We desire your considered judgment as to whether the German

or Hungarian authorities have actually offered to permit 2100 or
any other number of Jews to leave Hungary provided that they are

taken to British or American territory. It is not possible for us
to judge whether such a concrete offer has been made or whether

the above quoted message from the British Minister in Bern merely

represents the opinion of various agencies and individuals that the
Germans might possibly be more willing to permit Jews to go to some

territory other than Palestine. (See for example your No. 5579 of
August 26). A specific answer to this question is necessary before
this Government can take any decision in the matter, and a prompt

reply from you will be appreciated.

You will undoubtedly wish to inquire of the British Minister

in Bern, the officials of the International Red Cross, and all other
appropriate groups and individuals, whether they have any further
information in the matter.
2:05 p.m.
September 13, 1944
JBFriedman:ro
9/13/44

Miss Chauncey (For the Sec'y), Abrahamson, Cohn,
DuBois, Friedman, Hodel, Laughlin, Lesser, Mannon,
McCormack, Cable Control Files.

THIS IS WRB CABLE TO BERN NO 170

210

LFG.623

Born

This telegram must be
paraphrased before being

Dated September 13. 1944

consumicated to anyone
other than a Government
Agency. (RESTRICTED)

Rec'd 5:43 p.m.

Secretary of State
Washington.

6038. September 13, 1 ..
Department's 3001. August 31.
Consensus of opinion among private Swiss Relief Committee
members consulted is that effectiveness of Swies Refugee
Advisory Commission in ocordinating and implementing work
of various organizations handling refugee matters in Switserland

has been very limited. It has had little effect either

faverable or unfaverable on normal activities of different

groups active in refugee questions here.

The private Swiss relief organizations continue to meet
regularly under aegis of Sentralestelle Fur Fluchtlingshilfe
in Zurich and carry on their activities very much as before.
It is generally felt that setting up of advisery commission
was due to personal desire of federal council Lerves Steiger
Chief of Department of Justice and Police, to lesson his own
share of responsibility for handling of refugee problems in
Switzerland and attenuate criticism directed particularly at him.
Although announced that commission would convene

at least once a month. February 23 meeting (Legation's 1130. February

24) has remained one and only full session to date. Several of its
sub-committees have net. Sub-committee on legal questions has been

fairly active mad settled cases of disciplinary action Bakes Say
Swiss authorities against individual refugees. Sub-committee on
emigration and repatriation had single meeting in July but took no
action worth noting. In sub-committee on recreation and education
official Swiss members, 1.0. officials of Federal Department of Justice
and Police proposed series of lectures in camps en Switserland. Private
members suggested instead lectures ea post war Europe emigration and

the like as subjects of special interest to refugees at this moment
but which had hitherto been ferbidies by Swiss authorities as centrary
to Swise neutrality. This minor matter still being considered by
authorities.
JMS

MARRISON

211

CORRECTION

K

Distribution of true

September 13. 1944

reading only by special
arrangement. (SECRET w)

In telegram No. 1546, August 23. 5 p.m., from Aakara,

in line 12 delete *(* and insert "to the" se as to
read "leave Bulgaria by rail to the number of" at estere

and in line 13 delete "the (*) tituted" and insert "these
two beats or other ones substituted se as to read "trease
ported by these two beats or other ones substituted for
them" et estera.
This advice is from Ankara.
DIVISION OF COMMUNICATIONS AND RECORDS
GAW

212

CABLE FROM THE WAR REFUGEE BOARD TO AMBASSADOR STEINHARDT AND HIRSCHMANN
ANKARA, TURKEY

Please refer to your 1594 of August 30, requesting the approval
of the Board and the State Department of measures for the emergency

relief of Jews in Bulgaria.
It is not clear to the Board as to what is meant or contemplated
by your reference to emergency relief and the Board would

appreciate further details as to the measures which you believe
necessary for the emergency relief of Jews in Bulgaria.
THIS IS WEBCABLE TO ANKARA NO. XX 110.

2:20 p.m.
September 13. 1944

213

CABLE FROM WAR REFUGEE BOARD TO AMBASSADOR STEINHARDT FOR AIRSCHAMANN,
ANKARA, TURKEY.

Reference your 985 of May 31.
Please advise whether the War Refugee Board has any obligation

resulting from the negotiations for the use of the S.S. Tari. If so,
please state extent of the obligation and suggest the best procedure

for liquidating the claim.
THIS IS WRB ANKARA CABLE NO.

5:00 p.m.
September 13, 1944
MJMarks shind

9/13/44

111 .

214

AVR

Distribution of true
reading only by special

September 13, 1944
5 D.M.

arrangement. (SECRET w)
AMEMBASSY
ANKARA

796

The following for Steinhardt is WPO 109.
Please deliver paraphrase of the following message
to Leen P. Denemberg. American Consulate, Istanbul.

from the International Rescue and Relief Committee:
QUOTE Have been advised you made expenditures

without approval of Enbassy STOP Please comply with

specific terms of license and report your past and
future expenditures to Ambassador STOP Replying your
cable re new assignment is few days. UNQUOTE
HULL

WRB:10KVKK

NM

(GLV)

215

LFO-746

Ankara

This telegram must be
paraphrased before being

Dated

September 13, 1944

Rec'd

11:40 p.m.

communicated to anyone

other than a Government
Agency. (RESTRICTED)

Secretary of State,
Washington.

1728, September 13, 6 p.m.
FROM HIRSCHMANN TO PEHLE FOR JOSEPH SCHWARTZ OF JDC

Ankara's No. 154.

Reference is made to Passman's 170 which I have discussed

with him. I conour with his recommendation that the JDC
discontinue its contribution to the Jewish agency beginning
October 1.
STEINHARDT

WFS WPL

216

COPY NO

NOT TO BE RE TRANSMITTED
SECRET

OPTEL No. 299

Information received up to 10 A.M. 13th September 1944
1. NAVAL

OSTEND Harbour entrance blocked by about 14 ships and

approaches mined At DIEPPE 10,949 tons stores have now been
unloaded. Aircraft of the Home Fleet have laid mines off NORWAY.
A 4,500 ton ship was attacked and an escorting minesweeper sunk.
2. MILITARY

In Burope Third U.S. Army in the MOSELLE Valley have made

another crossing of the river south of NANCY.
Further north U.S. troops crossed German border 6 p.m. 11th and

are now in the area N.W. of TRIER. BASTOGNE and ETTLEBRUCK in
LUXEMBOURG have been taken. U.K. bridgehead over ALBERT CANAL
North of BEERINGEN enlarged and new crossing of the MEUSE-SCHELDT

junction canal made. Bridgehead across ALBERT CANAL at GHEEL
unsuccessfully counter attacked by Germans. West ofGHENT, LOCKEREN
and ST. NICOLA have been taken and Dutch border crossed north of
latter. Canadians have established a bridgehead across GHENT-ABRUGES canal and have reached coast at WISSANT and SANDGATE

near CALAIS. LE HAVRE has fallen.
Southern

France U.S. troops have reached the vicinity of
VESOUL and French have occupied DIJON.

Italy Slight advances have been made south of FIREN-UOLA
and VERNIO and towards VIAREGGIO.

Rumania Russians have occuped MERCUREA-CIUCULUI, ADJUD, S
and DEVA.

3. AIR OPERATIONS

Western Front 11th/12th. DARMSTADT 868 tons, very good

results. BERLIN 54 tons. 12th. 786 escorted

heavy bombers dropped 2236 tons on 9 synthetic oil plants in

GERMANY and CZECHOSLOVAKIA, 348 MUNSTER railway station, 133 KIEL

Aero-engine works, 150 MAGDEBURG Ordnance Works and 632 on other

military objectives. German casualties 53:14:41. Ours 52 heavy
bombers, 19 fighters missing. Medium bombers dropped 64 tons on
bridges between DUTCH ISLANDS. and mainland and on SAARBRUCKEN

railway centre. 335 tons dropped on fortified positions south of
aircraft, (2 missing) successfully attacked shipping off Holland
Two ships set on fire and others damaged by rockets.
12th/13th. 891 aircraft despatched, (25 missing),

AACHEN and rear NANCY with very good results. Coastal command

TRANKFURT 387, STUTTGART 217; BERLIN 29 Mosquitoes; other missions
258.

Mediterranean 10th/11th. Heavy bombers from MEDITERRANEA

dropped 123 tons on railway centre MILAN

with good results. 11th. 762 medium bombers and fighters
attacked communications etc. Italian battle area while others
attacked ports in the ADRIATIC, the GULF OF GENOA and YUGOSLAVIA
12th. Escorted Liberators and Fortresses dropped 811 tons
on an airfield and 2 aircraft ractories Southern Germany.
25 bombers, 1 fighter missing.

217
September 14, 1944
10:20 a.m.

Mrs.

Klotz:

Yes.

HMJr:

Hello.

K:

Hello.

HMJr:

Yes.

K:

Mr. Morgenthau, I'm in your office.

HMJr:

Hello.

K:

Hello. Can you hear me?

HMJr:

No, I don't hear you.

k:

Hello.

Operator:

There must be something wrong. Just a second.

HMJr:

Hello.

Operator:

Go ahead.

K:

Hello.

HMJr:

Yes.

K:

I'm in your office.

HMJr:

Yes.

K:

Dan Bell hasn't returned by I wanted to get
that information for you so I've got Glasser

and Joe DuBois here and they have some for
you.
HMJr:
K:

Ah -- you'll have to talk very loud.
All right. Now -- hello?

HMJr:

Yes.

K:

Can you hear me now?

HMJr:

Just about.

218

-2K:

Oh, that's -- there must be something the
matter with the line.

HMJr:

Well, maybe you've got the electric thing on.

K:

Just a

(Remainder of conversation not recorded.)

219
September 14, 1944
3:07 p.m.

0

HMJr:

Dan.

Dan

Bell:

Yes.

HMJr:

I can't hear you. Pick up the White House
phone and ask them to give it to you on that
connection. Try that phone.

B:

All right.

HMJr:

On the White House phone.

B:

Just ask them to switch it, huh?

HMJr:

Yeah, tell them to switch it. I can't hear

you.
B:

All right.

220

September 14, 1944

MESSAGE FOR SECRETARY MORGENTHAU:

Lord Cherwell is Professor of Physics, Oxford. He has

great ability. Personal friend of Prime Minister for
many years and through that friendship became advisor

on scientific matters. Arthur likes him personally but
says he is not popular at Oxford because he is more

interested in politics than scientific work. In last
war he did remarkable work on airplanes and showed

great courage in doing experiments himself. Is strong
Conservative and has individual influence but not popular
generally.

221

Prof. Goodhart:

Lord Cherwell is a Professor at Oxford.

His name before he came Lord Cherwell was

Londerman. He is a Professor of Physics

and a man of great ability, and he is a
very intimate friend - personal friend of the Prime Minister. He has inown
him for years, and it was through that
friendship that he became his advisor
on scientific matters, and he has been
advising him very closely on all sorts
of matters like that.
Mrs. Klotz:

What do you think of him personally?

Goodhart:

Oh, I think very highly of him. He is a

man of great ability.

Klotz:

You think a great deal of him?

Goodhart:

Yes. He isn't very popular at Oxford because he is more interested in politics
than in scientific work. But he is considered in the last war he did some very remarkable
work on airplanes, and he showed great
courage in doing the experiments himself.

Klotz:

I see.

Goodhart:

He is supposed to be almost the Prime

Klotz:

Minister's most intimate friend.

Yes. Well,.you.know.the Secretary is. up there
and has seen him and he wanted to know what

you thought of him.
Goodhart:

I like him myself. He is personally very
influential.

222

1944 SEI 14 PM 12 46

o

WU28 10
NSR NEWYORK NY SEPT 14 1944 1230P
K

MRS KLOTZ

CARE SEC MORGENTHAU US TREASURY

GENTLEMAN MENTIONED STRONG CONSERVATIVE INDIVIDUAL INFLUDENCE
BUT NOT POPULAR GENERALLY
ARTHUR GOODHART.
1245P

TOP SECRET

223

RECORD OF CONVERSATION BETWEEN THE PRESIDENT AND

PRIME MINISTER AT QUEBEC ON SEPTEMBER 14. 1944.

The Prime Minister said that when Germany was overcome

there would be a measure of redistribution of effort in both
countries. He hoped that the President would agree that
during the war with Japan we should continue to get food,

shipping etc. from the United States to cover our reasonable
needs. The President indicated assent.
He hoped also that the President would agree that it
would be proper for Lend/Lease munitions to continue on a
proportional basis even though this would enable the United

Kingdom to set free labour for re-building, exports, etc.,

e.g. if British munitions production were cut to three-fifths,
U.S. assistance should also fall to three-fifths. The
President indicated assent. Mr. Morgenthau however suggested

that it would be better to have definite figures. He
understood that munitions assistance required had been calculated

by the British at about 3 billion dollars in the first year
on the basis of the strategy envisaged before the OCTAGON
TOP SECRET

TOP SECRET

-2-

224

Conference. The exact needs would have to be recalculated

in the light of decisions on military matters reached at the
Conference. The non-munitions requirements had been put at
3 billion dollars gross against which a considerable amount

would be set off for reverse Lend/Lease. The President

agreed that it would be better to work on figures like these
than on a proportional basis.
The Prime Minister emphasized that all these supplies
should be on Lease/Lend. The President said this would
naturally be so.

The Prime Minister pointed out that if the United
Kingdom was once more to pay its way it was essential that the

export trade, which had shrunk to a very small fraction, should
be re-established. Naturally no articles obtained on
orsold imputed

Lend/Lease or identical thereto would be exported; but it was we
C

essential that the United States should not attach any
conditions to supplies delivered to Britain on Lend/Lease

which would jeopardize the recovery of her export trade. The
President thought this would be proper.
TOP SECRET

225

-3 TOP SECRET

To implement these decisions the Prime Minister

suggested there should be a joint committee. It was held that
it would be better to appoint an ad hoc committee for this
purpose on an informal basis in the first instance which could

be formalized in due course. Pending its report the United
States departments should be instructed not to take action
which would pre-judge the committee's conclusions, e.g.
production should not be closed down without reference to
Lend/Lease supplies which it might be held should be supplied

to Britain. The President thought that the committee should
be set up and suggested that Mr. Morgenthau should head it

representing him, and that Mr. Stettinius, who had taken such
a large part in Lend/Lease, should also be a member.

ok +IR

ml

15.9
TOP SECRET

226
TOP SECRET
K

1.

We have discussed the question of the scope and

scale of rutual Lend/Lease aid between the United States and

the British Empire after the defeat of Germany and during
the war with Japan. We have agreed that a Joint Committee

shall be set up to consider this question with the following
membership:Chairman:
American Members:

British Members:

Secretary Morgenthau

Under-Secretary Stettinius

Mr. Leo Crowley

2.

The Committee will agree and recommend to the Heads

of their respective Governments the amount of Mutual Aid in
munitions, non-munitions and services which is to be provided

for the most effective prosecution of the war. The Committee
is instructed to obtain from the various branches of the
Governments whatever pertinent information is necessary for

TOP SECRET

227

o

TOP SECRET

-2-

.

the preparation of their recommendations.
3.

Pending the recommendations of the Committee to the

Heads of the respective Governments, the appropriate
departments of each Government shall be instructed not to make

any major decision with respect to the programmes of

Lend/Lease Aid for the period referred to above without the
approval of the Committee.
4.

In reaching its conclusions the Committee will be

guided by the conversation between the President and Prime
Minister on September 14th, 1944.

M.
Quebec.

September 14th, 1944.

wh
5.4
TOP SECRET

Mr. Histon

228

(COPY)

THE SECRETARY OF THE NAVY
WASHINGTON

14 September 1944

My dear Admiral Waesche:

You may continue to provide a Coast Guard

plane for the transportation of the Secretary of

the Treasury within the United States as you have
heretofore provided under a directive of Secretary
Knox.

Sincerely yours,
(Signed) FORRESTAL

James Forrestal

Vice Admiral Russell R. Waesche
The Commandant

United States Coast Guard
Room 7006, 1300 E. St. N.W.
Washington, D.C.

229

25

September 14, 1944.

Dear Mr. Graniki

For the Secretary. I an acknowledging
your letter of September 11, which enclosed
a number of reprints of the American Form

of the Air broadcast covering the Brotten

Woods Conference.

Mr. Morgenthan is new ons of the city,
but just as soon as he is back as his desk,
I shall be glad to give these to him.
I know that he would wish - to thank you
for your courteey in soeing that he nocolved these copies, and in offering additional 0308 If be should wish to have them.
Sincerely yours,

Hemitta S. Klatz
H. S. Klots,
Private Secretary.

Mr. Theodore Granik,

Director, The American Form of
the Air,
1687 K Street, N.V.,
Washington s. D. c.

GEF/dbs

230
THE AMERICAN FORUM OF THE AIR
COAST TO COAST MUTUAL BROADCASTING SYSTEM

1627 K ST. N.W
WASHINGTON 6.D.C.
METROPOLITAN 0010

THEODORE GRANIK
DIRECTOR

September 11, 1944

Dear Mr. Secretary:

Following up my letter of August 28, I
thought you might be interested in receiving

reprints of the program on "The Meaning of
Bretton Woods." Six copies are being sent
to you under separate cover.

If you desire additional copies, I shall

be happy to make them available.

Sincerely yours,

The Honorable Henry Morgenthau, Jr.

Secretary of the Treasury
Washington 25, D. C.

#

DEDICATED TO DEMOCRACY'S IDEAL - THE FULL AND PUBLIC DISCUSSION OF ALL SIDES OF ALL ISSUES

231

THE

AMERICAN
FORUM

OF THE AIR
Vol. 6

AUGUST 22, 1944

No.33

"The Meaning of Bretton Woods"
HENRY MORGENTHAU, Jr.
Secretary of the Treasury

HARRY D. WHITE
Assistant to the Secretary of the Treasury

DEAN ACHESON
Assistant Secretary of State

SENATOR CHARLES W. TOBEY
New Hampshire, Ranking Republican Member. Senate Banking and Currency Committee

E. E. BROWN
President. First National Bank of Chicago, and President of the Advisory Council of the
Federal Reserve System

Ransdell Inc.

Printers and Publishers

Washington, D.C.

Copyright 1944 by THEODORE GRANIK. Director of the American Forum

Announcer Ed Studney: The American Forum of the Air! Good eve.
ning, ladies and gentlemen. From the famous Shoreham Hotel in Wash.
ington, D. C., Mutual is proud to bring to its millions of listeners one of
radio's pioneer public service features, the American Forum of the Air.
Since founding this institution sixteen years ago, Chairman Theodore
Granik, attorney and editor, has arranged these weekly broadcasts in which
the news personalities of the day discuss the issues of the day, openly and
frankly, in the American tradition of free speech This is democracy in
action. And now, Chairman Granik

world. That is what we are going to talk about in this Forum discussion
here this evening.

To my mind, the most important fact about the Bretton Woods Conference, more important even than the agreement reached by the forty-four

participating nations, was the spirit in which men from many different

lands approached a problem which they knew they could solve only through

cooperative action. They knew from the tragic experience of the two
decades which followed the last World War that if their countries tried
again to achieve economic security through separate national action, they
would achieve in the end only economic chaos and economic aggression.
And they knew that these lead inevitably down the road to war. The alternative to economie cooperation is economic warfare. And economic warfare is but the initial phase of armed conflict.
They met, therefore, determined to uproot at least this particular
cause of the frightful tragedy through which the world is now passing.
They met with faith in one another's good will and with faith in their
common capacity to solve a common problem. They met determined to
find a solution. And although the solution was not easy, they found it.
This is a hopeful augury, I think, for the important security conference
which opened today at Dumbarton Oaks here in Washington Men have
learned at last that the hopes that they share can best be realized by a

Chairman Granik: At Dumbarton Oaks here in Washington, the major
nations are drawing the blueprints for an international organization which
will make for a durable peace.
World security, we have come to know, depends in large measure upon
economics. Trade balances, import and export restrictions, international
loans and currency exchange are major factors. It was natural, therefore,
that the nations of the world should consider monetary matters before they
took up security. An International Monetary Conference was called last
month at Bretton Woods, New Hampshire, and forty-four nations sent

delegations.

From that Conference emerged two proposals: an International Mone.

tary Fund and an International Bank for Reconstruction and Development. These are merely proposals which must be accepted by the govern
ing body of each of the forty-four nations, just as our own Congress must
agree on behalf of the United States.

joining of their hands.
At Bretton Woods we agreed upon two instrumentalities to help one
another toward a secure and stable economic world an International Mone-

tary Fund and an International Bank for Reconstruction and Develop-

The proposals are in the technical language of diplomacy and economics

which few Americans have been able to understand Yet this Fund and
Bank may have a profound influence on world stability for generations.
For this reason, the American Forum of the Air is planning several discussions on the Fund and the Bank. To lay the groundwork for forum

debate on the merits of these plans on subsequent programs, we have asked
the American delegates to explain this evening "The Meaning of Bretton
Woods.' Unfortunately, not all of the delegates were able to join us. We
are, however, honored by the presence of:
HENRY MORGENTHAU, JR., Secretary of the Treasury.
SENATOR CHARLES W. TOBEY, of New Hampshire, ranking Republican
member of the Senate Committee on Banking and Currency.
DEAN ACHESON, Assistant Secretary of State,
E. E. BROWN. President of the First National Bank of Chicago and
President of the Advisory Council of the Federal Reserve System.
DR. HARRY D. WHITE, Assistant to the Scerebary.of.the Treasury.
Secretary Morgenthau, will you. as President of the Conference. tell MS
generally about Bretton Woods?

ADDRESS BY HENRY MORGENTHAU, Jr.
A month has passed since the United Nations Monetary and Financial
Conference at Bretton Woods, New Hampshire, came to its successful conclusion. We have had time to study the accomplishments of that meeting
and
to weigh their meaning for our security and prosperity in the post-war
TWO

ment. Some of the American delegates to the Conference are here tonight.

I think it would be helpful if they were to give you their impressions of
what was accomplished.

Chairman Granik: Now, Dr. White, one of the things that I have discovered about the Bretton Woods Conference is that very few people under$

stand either the Fund or the Bank. They feel that the agreements are
written in such technical language that the ordinary man in the street can't
understand them. Now, I would like you in a few words to describe the
Monetary Fund.

DR. WHITE: Well, stripped of its technicalities, the Fund is an international organization set up to achieve new high levels of world trade.
These we must have if we are going to have full employment after the war.

Now, the Fund helps to bring this about by doing three things: First, it
will help an orderly adjustment of exchange rates immediately after the

war and provide for stability of exchange rates thereafter, so that exporters
and importers will be able to buy and sell without running the serious dan-

ger of large losses from unanticipated exchange fluctuations Secondly,
the Fund will prevent competitive exchange depreciation which does so
much to disrupt trade and eventually helps to bring about depression.
Thirdly, it will prevent and seriously cut down those exchange discriminations and controls which serve to stifle trade and foreign investment.
SENATOR TOBEY : In other words

DR. WHITE: I have just another word I would like to add. In order
to bring these three things about, the Fund necessarily has to have some
THREE

pretty large resources and pretty broad powers, and the Fund is equipped
with those resources and those powers.
SENATOR TOBEY In a nutshell, then, Harry, the Fund provides international machinery for stabilizing the values of foreign currency and for

playing the financial game fairly in the field of foreign trade and commerce. If countries which are fulfilling these obligations get into trouble,
the Fund stands ready to make its resources available to help them over
this erisis,

DR. WHITE: Yes. It has, as I said, very large resources amounting to
almost nine billion dollars for the purpose of helping those countries adjust
their trade in an orderly manner.
SENATOR TOBEY: And there will be no more resorting to sharp practices
such as depreciating currencies, imposing restrictions on the payment of
goods they have bought from other countries, and all the other tricks which
Nazi Germany played upon the world. Is that right
DR. WHITE: Yes, it was precisely those practices which contributed so
much to the depression of the '30s and eventually to the war.
Chairman Granik: Dr. White, / think the public is just as foggy about
the Bank as they are about the Fund. I would like to hear a similar explanation of the International Bank for Reconstruction and Development.

DR. WHITE: Why don't you take the Bank, Dean That's your
bailiwiek.

MR. ACHESON I think the Bank is a much simpler institution than the
Fund and it ought to be an institution which every American can understand. Every American has a bank in his own town and he understands
how it works. The primary purpose of the Bank is to make capital avail.
able from those countries which have capital to countries which want to
borrow for purposes of reconstruction and development. Now, in order to
do this, each country subscribes to shares in the Bank, just as every stock
holder subscribes to shares in a company or bank in our own towns in this
country. Part of that subscription is paid in so that you have cash available for operation. The greater part of it, however, is not paid in. The
greater part of it is a guarantee to make good losses in case the bank ineurs
losses. In that way the bank is equipped with capital. Now, one of the
most important things about the operation of this Bank is that the Bank
does not compete with private investment. The Bank will guarantee loans
which private investment companies make.

MR. BROWN: Dean, don't you think you ought to point out that the
Bank loans money or guarantees money. only. for the purpose of providing
for an exchange needed in connection with a reconstruction or development

DR. WHITE: Ned, I think it is, but, Ned, I think you would be interested in the conference that I had with a couple of representatives of one

of our largest producers in this country of heavy export goods. They
wanted to know precisely that question; they wanted to know if the Bank
made large loans what assurance was there that they wouldn't spend those

loans in their own countries on local services and local products, and I
pointed to the provision in the Bank which provided precisely for the point
you made, in other words that the funds, which would be provided in the
form of foreign exchange, are for the purpose chiefly of purchasing imports

Chairman Granik: Dr. White, just what is the relationship between the
Fund and the Bank?
DR. WHITE: Well, they are two very separate institutions. They are,
of course, interdependent institutions in the sense that the proper funetioning of one would help in the proper functioning of the other, but the
Bank is designed, as Dean says, to provide long-term capital for reconstruction and development, and the Fund, of course, merely provides for
stable exchanges and for orderly conduct of international trade.
MR. ACHESON: Well, Harry, one of the things that I hear people saying
is that if you have the Bank you don't need the Fund and if you have the
Fund you don't need the Bank. Now it seems to me that the exact opposite
of that is true.
DR. WHITE I should think so. I should think that they both are needed
to supplement each other. They both perform very essential functions on
different aspects of trade and capital.
MR. BROWN Well, it is very evident, it seems to me, that the Bank,

by providing funds to pay for capital imports such as machinery of a
country which wants the machinery in connection with a new project, makes
it much easier for that country to maintain its normal balance of trade and
pay for its current imports.

DR. WHITE: Yes, I think there is that connection between them in
addition to the other one.
MR. BROWN: It certainly reduces the temptation or the pressure on
a country to use the Fund for purposes other than maintaining the value
of its currency in purely normal exchange transactions:
Chairman Granik: It is said the Fund will be given certain powers to
bring about changes in trade policies and that we may be forced by the
Fund to lower our tariffs. Senator Tobey, what do you think of this?
SENATOR TOBEY: I would say that the Fund has nothing to do with the

project ?

tariff policy. The question of shaping the tariff policy is exclusively a

MR. ACHESON That is quite right.
MR. BROWN: It requires, does it not, that the local expenses for labor
and local materials be raised by the country in which the project is located.
without recourse to the Bank
SENATOR TOBEY And amplifying what Dean Acheson and Ned Brown
have just said. I would add that loans in which the Bank is interested would

matter for Congress to determine. The Fund makes no provision and no
reference to questions of tariff policy.
DR. WHITE: Wouldn't you say, none the less, Senator. that an appropriate tariff control would help in the proper functioning of the Fund as
well as the Bank
SENATOR TOBEY I certainly should, and I might add there that we Republicans, and Democrats as well, must learn the fundamental lesson that
if nations are going to buy from us. we must be willing to take their goods
in return in payment.

be only for the purpose of rebuilding industries, public utilities, and so
forth, in war devastated countries, and developing natural resources and
industries in under-developed countries, Is that correct
FOUR

FIVE

DR. WHITE: In other words, then, neither the Fund nor the Bank is
a substitute for a proper commercial policy.
SENATOR TOBEY: That is correct.
MR. ACHESON They are all part of one much larger policy. Wouldn't
you say that is truel
DR. WHITE: Yes, I think that it is important to emphasize both those
points, that a proper commercial policy will help very greatly in the proper

functioning of the Fund and the Bank and the proper utilization of the
Fund and the Bank will make more easy an appropriate commercial policy.
Chairman Granik: Secretary Morgenthau, one newspaper writer has

called the Bretton Woods plan an international WPA. How do you feel
about that? Did you find that the foreign countries were motivated by
what they thought they could get out of the United States through the
Fund or the Bank, or did you find a spirit of real cooperation evident?
SECRETARY MORGENTHAU: The Fund has nothing to do with either re-

lief or rehabilitation. These are the responsibility of UNRRA. The Bank
is intended to finance sound and productive reconstruction projects. They
are no more WPA projects than are the loans of any private bank. They
will help self-respecting peoples to get back on their feet economically and
thus to buy the goods which we produce. As to the spirit which motivated
the representatives of these peoples at Bretton Woods, I think I shall ask
Senator Tobey to give you his reactions.
SENATOR TOBEY: Well, Mr. Secretary, in my judgment the most outstanding and encouraging feature of Bretton Woods was the sincere spirit

Bank and the Fund. I was very greatly impressed, as I know all of you
were, by the ability that was shown by the representatives of the other
American republics, t e way in which they took hold of these questions and

contributed very essential ideas, and above all, perhaps, by the way in
which they came forward in their subscriptions to the Bank. I thought
that the Western Hemisphere did a very fine job.

Chairman Granik Mr. Brown, there has been a lot of talk that the
United States dollars in the Fund will become exhausted and then the Fund
break down.

MR. BROWN: I don't think there is very much to that. In the first
place, not all the countries in the Fund are going to use its credit facilities
Certainly a great number of countries, such as South America, even countries like France and Holland which have been invaded, have got large gold
and foreign exchange resources and they are going to use those up first
they are going to keep their ability to borrow from the Fund or have recourse to it as an ace in the hole, and they don't really expect to use it in the
near future.
DR. WHITE: Even if they do, that is precisely what the Fund is for
if they should find themselves up against an unanticipated emergency in
which they have to draw upon the Fund, that is exactly what the Fund is
there for.

MR. BROWN: Exactly. It seems to me it is like a reserve account or a
line of credit with a bank, something which even if you don't use you are

of cooperation and understanding of the meaning of the word "inter-

glad to know is there.

dependence,' and it is an example, in my judgment, and pardon my saying
this, of cause af effect, for it is generally admitted and conceded by all who
were there that the air and the climate and the beauty of New Hampshire
prevailed upon the souls of men up there.

Chairman Granik: Cannot these safeguards be removed or waived?
What obligation is there for the United States to replenish dollars?

MR. ACHESON: Hear, hear!

DR. WHITE: Is it true, Senator, that you are the Senator from New
Hampshire
SENATOR TOBEY I admit that. As to the WPA, Mr. Secretary, let me

point out that loans will be made only to pay for materials which the nations borrowing must import; therefore, no country will be able to operate
a domestic WPA on loans made by the Bank.
MR. BROWN I would like to point out also that a great many countries,
such as Canada, and others, which normally don't expect to use either the

credit facilities of the Fund or the Bank. crime to and did their part be
cause they knew and felt that the reconstruction and development of the
rest of the world would help them not only in their foreign trade, but by
making for a more prosperous world would also greatly remove the danger
of future wars.
DR. WHITE: I don't think there was a single country there that didn't
appreciate the fact that future prosperity depended upon the creation of
some such agencies, and because they felt that, they were all perfectly willing to participate in a spirit of cooperation and desire to get results.
MR. ACHESON As I was going to say, I would like to add my word to
that, particularly because I think we were all very much pleased and gratified by the attitude of our neighbors in this Hemisphere toward both the
SIX

MR. BROWN In the first place, the country can only draw 25 percent
of its quota in any one year. In the next place, there are various provisions
in the Fund which require a country whose balance of payment position
improves and which gets more gold and foreign exchange to pay it back
into the Fund. With all those considerations I don't think the dollars are
going to run out if we maintain a proper trade policy.
MR. ACHESON: That is what it all gets back to, Ned, what Senator
Tobey was saying a few moments ago, that we have got to have a realization
that if we want to sell we have got to buy and that you cannot have over
a long period of time a complete disequilibrium of the income and outgo

of a country. more than of an individual.

MR. BROWN I think that is absolutely correct. You can take gold for
a while but the gold gives out, and you can loan money for a while but you

get tired of doing that, and ultimately if you sell you have got to receive
payment, and you can only receive payment in goods, but even if we should
maintain a policy of restricting imports and encouraging exports, we would
have done a great deal to build up the world, and while we might have our
money frozen for a time in the Fund, I don't believe that with the safeguards that we could lose any considerable portion of it. although there
might be some delay in getting it out.
SENATOR TOBEY Well, Ned. a recent critic of the Fund came out and

charged us with an adventure in world altruism. I rather accept that
SEVEN

challenge. I think this old world of ours could stand a dose of altruism in
place of the world-wide cynicism that has prevailed so often in past years.
Chairman Granik: On that topic, Mr. Secretary, we have heard it said
that if the United States joins the Fund and Bank we will be throwing our
money away. How about it?
SECRETARY MORGENTHAU: To date this war has cost the American
people over 200 billion dollars In order to set up the Bank and Fund,
this country is asked to invest 6 billion dollars, which is less than the war
costs us each month. Moreover, there is no reason to believe that we shall
lose this investment. Every possible precaution was taken at Bretton
Woods to protect both institutions against loss and to insure them against
abuse. The investment should be returned to us many times over in a
revival of trade. The Bank and the Fund will help preserve the peace
for years to come, and for that reason alone they are well worth our invest-

ment in them.
SENATOR TOBEY: Well, Mr. Secretary, I coneur (and it bears reitera-

tion) that we are putting in a total investment or subscription into the
Fund and Bank of 6 billion dollars for world peace and prosperity, but
over and against that we are putting out in war expenditures each month
7 billion dollars for death and destruction.
DR. WHITE: Well, Senator. you speak of spending money on war. I
think it needs to be emphasized that this is an investment and not an expen-

diture. The 6 billions that you put in here you will get back, and with

interest.

MR. ACHESON That is the point that I wanted to emphasize, too, the
one that Harry just brought out. It seems to me a very strange criticism to
come from Americans that foreign investment is throwing money away, or,
as I have heard some people say, throwing money down a rat-hole. If any
country in the world has ever benefited from foreign investment it has
been the United States of America, and I think that the investors have
benefited too, and what both of these plans mean is that the same benefits
which have been extended to this country in the past are going to be extended to other countries in the future.
DR. WHITE: Not only are the benefits going to be extended to other
countries, but quite obviously our own exporters and manufacturers and
own labor are going to benefit by such extension of credit. This is not an
organization that is set up to benefit other countries, but rather ourselves
as well,

MR. ACHESON: suppose every transaction in which you loan money
and borrow money is carried out for the profit of both the lender and the
borrower, otherwise it wouldn't take place.
DR. WHITE: That is right.
Chairman Granik Mr. Brown. there is a good deal of talk about how
the Fund and the Bank will affect American foreign trade. I would like

to get your views.

MR. BROWN Well, in the first place, the Fund means that an American
exporter can count on being paid in a currency which he can convert into
American dollars. That's a great and immediate advantage. In the second
place
EIGHT

DR. WHITE (Interposing): Without any risk of loss of exchange,

either.

MR. BROWN: Without any risk of loss of exchange and without the
danger of the currency being blocked while it is outstanding. In the second
place, it means that an American exporter needn't fear the loss of all his

exports to a country which suffers a temporary depression caused by
something like a crop failure, because that country has got a right of
access to the Fund and can continue to buy until conditions change again.
SENATOR TOBEY: Well, Ned, right there, on the pernicious practices

you spoke of, isn't it a fact, to use an illustration, that debasements of
currencies and radical fluctuations in exchange rates bring about economic
upsets, economie upsets bring about depressions, depressions bring about
unemployment, and when unemployment comes in, and bitterness and
hatred and discouragement in the hearts of men, it is fertile soil for a Hit-

ler to thrive again Isn't that exactly the history of the past
MR. BROWN: That is precisely it.
SENATOR TOBEY We don't want history to repeat itself along those
lines.

MR. BROWN Certainly the Fund prevents a country from discriminating against American goods, against the use of its dollars in exchange for
its currency, and that was a practice used by a good many other countries
I think the Bank loaning money to foreign countries for projects of development does two things: In the first place, a great many of the dollars that
are loaned will be spent for the purchase of machinery and goods in the
United States; they don't have to be so spent.
DR. WHITE: Suppose they are not spent in the United States, Ned:
suppose Greece borrows and spends it in England. Don't we get the advantage in the end
MR. BROWN: Certainly the dollars all come back. Suppose we loan
money to Brazil to build a railroad ; it might buy and would buy a lot of
the rails and a lot of the locomotives and signal equipment in the United
States, but it might buy some in England or in Belgium, but it would use
the dollars that it borrowed from the Bank and got from us or from American investors whose loans were guaranteed by the Bank, in England, and
England in turn would use those dollars to buy cotton and other goods
coming from the United States.
DR. WHITE: In other words, the dollars would come right back here
and our exporters would get the benefit.
MR. BROWN Certainly. They might not be directly tied up but we
would get the benefit completely and entirely of all the money that was
loaned by the Bank.

Chairman Granik: I would like to ask Secretary Morgenthau this. Mr.
Secretary, wouldn't the establishment of the Fund mean more Government

control over foreign trade? Is it true, as some state, that if we adopt the
Fund, foreign trade will have to be taken over by Government agencies?
How about that?
SECRETARY MORGENTHAU: No. the exact opposite of this is true. I
should think that the Bank and the Fund were absolutely essential for
American foreign trade. So far as the Fund is concerned. the Fund grves
NINE

assurance to the American producer who wishes to sell his goods abroad that

he can find a medium of payment for those goods which will be stable and
predictable. To workers and manufacturers it means that people abroad
will be better able to buy materials which they produce.
SENATOR TOBEY: The United States leaves its traders free to buy and
sell where they please and operate under the rules of free competition.
This right can be effective only if other countries do not restrict the freedom we give our traders, The United States can insure such freedom only
through international cooperation.
DR. WHITE: Well, don't you think it is a little more than that, Senator? So far as the American trader is concerned, the exporter and the importer, he probably won't even know of the existence or the operation of
the Fund and the Bank except in so far as he realizes that he is able to
buy and sell without running the risk of any exchange fluctuations and
except as he is aware of the fact that foreign trade is higher than it has ever

been.

SENATOR TOBEY He wants ways and means to do business

MR. ACHESON: That is a point, I think, we ought to make very clear
first of all, that there is absolutely nothing whatever either in the Bank or
the Fund which enables either one of those institutions to direct or control
or interfere with private initiative or private traders in any way.
DR. WHITE: It just sets a setting in which he can go ahead and do more
business at a higher profit.
MR. ACHENSON All that the private trader knows is that there is an
opportunity for a great deal more business than there otherwise would be,
but it is left to him to carry out the business in any way which he thinks
best.
Chairman Granik Speaking of investments abroad, Mr. Brown, since
the Bretton Woods Conference I have had a number of business and bank.
ing leaders ask me how the proposed Fund and Bank will affect existing
investments abroad, and also the war debts and lend-lease,
MR. BROWN Well, directly it will not affect them because neither the
Fund nor the Bank is set up for the purpose of taking care of past debts,
whether private or inter-govermental. The Fund is set up for the purpose
of insuring that payments on the current account will be met promotly, and
the Bank is set up to encourage the investment of new capital and to provide that that new capital will be repaid, but both by promoting the trade
and prosperity and the production of export goods by the country coneérned will make for a situation in which it ought to be possible for countries to much more readily pick up and catch up on old and defaulted debts.
DR. WHITE: In other words, Ned, that even though the Bank and the
Fund are designed to inerease trade in the future and to increase the flow
of foreign investments in the future. it is fair to say that with the increased
prosperity that comes from that, many countries will be able to resume
servicing some of the debts they are in partial or whole default on.
MR. BROWN: I think that is unquestionably so. I have never known of
country which hasn't wanted to pay its indebtedness if it could.

a

SENATOR TOBEY: Ned. not the least of the results of the Bretton Woods

Conference was the fact that we produced unity among the different delegates from the different nations Now, in my judgment (I twink you will
TEN

coneur) that constitutes a good-will account which will be a very real asset

in international banking. Isn't that your view!
DR. WHITE: I don't know how you feel about that, Ned, but I think it
is even more than that. One of the provisions in the Fund calls for a reduction in the exchange control on the withdrawal of profits that are earned

by corporations that either have investments abroad or that own plants
abroad, and one of the consequences of the adoption of the Fund will be
that those corporations cannot only be assured that they will be able to
withdraw the profits that they earned, but they will have the further assurance that any additional investment that they place there they will be
able to withdraw when desired.
MR. ACHESON: In other words, both the Bank and the Fund are look-

ing to the future. They are not pieking up and trying to liquidate old
debts. They are trying to increase the flow of business in the future, and
as you increase that flow and as there is more trade and more prosperity,
then the chances of paying off old debts increase, but the thing to do is to
keep your eye on the future and not on the past.
DR. WHITE: Yes. None of the resources of either the Fund or the
Bank are going to be used to bail out bond-holders who may have bonds in

default.

Chairman Granik I would like to come back to Mr. Brown. Some of
the criticism of the Fund and the Bank has come from bankers. Some are
wondering whether this may be because the Fund and Bank would compete
with the banker or take business away. Would that be the case, Mr. Brown?

MR. BROWN I don't think so at all. In the first place, I want to
negative the idea that all bankers are opposed to the Fund and the Bank.
A great many bankers are in favor of both.
Chairman Granik: How about your own bank?
MR. BROWN: Well, I am certainly in favor of it, and I think that anything which increases the volume of our export business is bound to increase

the profits of banks. It isn't so much the mere handling of foreign exchange, although there will be more of that than before and more of it
handled through banks, but a higher level of prosperity in this country
means more loans for the banks, more deposits, more transactions, more business, and more profit.
Chairman Granik: Mr. Acheson?

MR. ACHESON: I.was going to .add to what. Mr. Brown said that
of course he is much closer-t business men than we are in the State Department, but we have people coming in all the time who are asking about what
the possibilities are of trade, what the policy is in the future toward trade
abroad, and this seems to me to be one of the great answers.
DR. WHITE: Well, not only do business men feel that way, but speaking
of the bankers, they are displaying a far greater interest in both proposals.
They are forming committees to study the proposals ; they have asked for
conferences with us to have us explain some of the details of the Bank, and
they are giving every evidence of having a sincere and intense interest in
the Bank, not merely because they may have greater profits, but because.
as Ned Brown says, they are interested in helping to achieve international
prosperity.
ELEVEN

SENATOR TOBEY: As a matter of fact, Harry, going back to the epoch
of the Conference itself a month ago at Bretton Woods in New Hampshire,
the New York Herald-Tribune financial writer sounded a warning note to
all the banking interests of the country, who were at that time without full
knowledge of the subject, critieizing it in general, and he said it might be

wise to go a little slow on the eritieism of the Conference and its results
until we know something more about it. It is my honest opinion that when
the banks and investment houses of this country get the full import of
what we did at Bretton Woods they will be wholeheartedly for it.
DR. WHITE: There is no question of that, because basically both the
Fund and the Bank mean more business and more jobs.

Chairman Granik: Senator Tobey, it is frequently objected that the
United States will have only a minority voice in the new Fund and the
Bank. As one who for some years has been a minority-party member of
the Senate, are you afraid of the United States having only a minority
voice in the proposed institutions?
SENATOR TOBEY Not at all. I am so sold on international cooperation

on banking lines and every other line that I am perfectly willing that the
United States as the largest nation. the nation that will reap the largest
benefits, should be willing to participate. After all, our total investment
is less than 6 billion dollars, and if it were all lost it would cost us less than
this war is costing us each month.
MR. BROWN I think everybody should remember that after the United

States, the United Kingdom has the largest single interest in the Fund,
and when you add the votes of the United States and those of the British
Empire, and countries like Holland, Belgium and Norway, together, you
have got an assurance that a group of people who think fundamentally
alike on economic questions are going to have the majority vote and are
going to rule the Fund.
DR. WHITE: Well, even if they don't think alike-it may happen, you
will admit, wouldn't you. Ned, that the British Empire and the United
States might not think alike on some of these problems but even if they
don't we have a third of the votes and we are not likely to take any position
which is not going to be reasonable, and if we take a position that is reasonable we are going to have a lot of other countries who are going to vote along

with us, South America, North America, and places outside the British
Empire, so that in no sense would we ever be in the position of having only
a minority of votes, I should hope.
SENATOR TOBEY And furthermore, Harry, some of the most vital provisions require for their adoption a vote larger than a majority.
DR. WHITE: That is right.
SENATOR TOBEY: And some of the countries have veto power.

DR. WHITE: That is right, and not only that, but one of the provisions
provides for increasing voting power of the countries whose funds are being
used mostly and that. of course, would be the United States. whereas other
countries who are resorting more to the Fund have less voting power; so
that in fact our voting power is in excess of a third
MR. ACHESON: But the same thing is true in the Bank, Harry: you
have provisions in the Bank by which you cannot raise funds in a country
without the consent of that country.
TWELVE

DR. WHITE: That is right.
MR. ACHESON Therefore, it isn't a question of what the control is in
the Bank: you simply can't raise funds in the United States, the United
Kingdom, or anywhere else without the consent of that country.
DR. WHITE: In other words, you can say we have complete control
over the use of dollars in the Bank.
MR. ACHESON Entirely so.
Chairman Granik: Some of the Congressional critics of the Bank have

argued that since the United States is going to be the principal country
in a position to furnish the goods for reconstruction in the early post-war
years, and since this means that the United States dollar will have to be
furnished to buy these goods, there is no point to having an International
Bank with a lot of countries deciding when the loan dollars. Why not
enlarge the Export-Import Bank so that it can make loans for reconstruction and development and run it ourselvest
DR. WHITE: I think we should. We should enlarge the Export-Import
Bank because it performs a very necessary function in financing exporters
and other certain projects on a short-time basis, but the people who make

that criticism completely misunderstand the nature of the Bank. The
function of this Bank is to provide long-term investment, and, what is
more important, to do so without having the entire risk fall on the American

taxpayer.

MR. BROWN I think that last point is highly important. The United
States subscribes about a third of the total capital of the Bank, the rest of
the world subscribes two-thirds. The American investor who loans his
money is guaranteed by the whole world, two-thirds by the countries other
than the United States, and beyond that I think that any country is much
less likely to default on an obligation when the loss caused by that default
is going to fall on every other country in the world than it is to default
a loan held or guaranteed by one single other country.
DR. WHITE: But if it does default (and some of these loans, I think
you will concede, Ned, are apt to be risky in the post-war years) the American taxpayer bears only a portion of it instead of the whole of it, as he
would bear if the Export-Import Bank made the loan.
MR. ACHESON There is one point I would like to add to that. It is
quite right that the risk is one-third United States, two-thirds the rest of
the world, but this eritieism that the United States ought to run the Bank
itself or put up all the money and run it itself seems to me a very strange
criticism, and I don't know what party the "people belong to who make that
eriticism. We have seen in the last week the correspondence between Mr.
Hull and Governor Dewey in which it is perfectly clear that both major
parties in this country are not going to stand for any policy by which there
is dietation on the part of the United States, with or without any other
country, to the rest of the world. There is going to be cooperation. Countries, large, small, are going to be brought in, and their views are going to
be asked and their cooperation is going to be sought. That is exactly what
was done at Bretton Woods, exactly what Governor Dewey and Mr. Hull
on

have agreed should be done at the conferences at Dumbarton Oaks.

Chairman Granik: Secretary Morgenthau, since we first announced
this broadcast we have received many letters from American workers and
THIRTEEN

from soldiers asking this one very simple question: Will the Bank and Fund
mean anything in the way of jobs for Americans after the war? I think this
is one of the questions that is on the minds of a lot of people.
SECRETARY MORGENTHAU: The Bank and the Fund will mean a great

deal in the way of jobs for Americans. With the Bank and the Fund in
operation, our export business, our sales of machines and equipment and
consumer goods to other nations will be vastly increased. For example,
the Germans made it a point to destroy or remove all electrical generating
equipment in Italy. When the war is over, the Italian Government will
have to replace this equipment. They may go to the Bank to borrow money.

They will then look around to see where they can buy new generating
equipment, and the chances are very good that they will buy it right here
in the United States from General Electric or Westinghouse, for example.
The money they pay for these will thus come back into the pockets of
American workers.
Actually, the difference between the jobs that would exist in the United

States if we have a high level of trade as against those that would exist if
we have a low level of trade may make a difference of five to ten million jobs.
SENATOR TOBEY To bear that out, Mr. Secretary, wouldn't you agree
that an increase in our foreign trade will mean an increase in our national
income, and as our purchasing power increases, production expands and
more jobs are created here at home?
SECRETARY MORGENTHAU: That is the way it works, Senator.

Chairman Granik: Senator Tobey, as ranking Republican member of the
Senate Committee on Banking and Currency, you will have an important
role in any Congressional legislation on the Bretton Woods plan. Do you
find that this is a subject on which Congressmen are divided along party
lines, Democratic and Republican!
SENATOR TOBEY I see no reason why they should be so divided. I
think it is for the substantial good of the American people, and they certainly can't make a political issue out of it. There was no polities involved
in consideration of the matter at Bretton Woods, and it would be a great
mistake to inject polities into it now. I was pleased the other day (and
I think it was a true statement) with the statement in the New York papers
quoting Governor Edge of New Jersey as stating that Governor Dewey had
come out saying he favors stabilization of the world financial situation.

lute imperatives. The first of these is that we must help the peoples of
these war-torn lands to rebuild their homes; we must help them to begin
again the industry and agriculture through which they will be able to
play their parts in a healthy revival of commerce throughout the world
There can be no lasting security or prosperity for any of us unless this is
done. But beyond this is the broader imperative that we must stamp out
the basic causes of this fearful scourge of war. The Fund and the Bank
devised at Bretton Woods are instrumentalities for mutual aid amongst
nations and for the creation of economic order. But they are, of course,
no more than first steps toward the goal we seek. They must be buttressed
by many other measures of international cooperation in the economic and
military spheres.
Peace is not a static concept. It is a dynamic condition to be preserved,

as it is attained, only through ceaseless effort, only through a constant
guard against the viruses that would destroy it. The agreement achieved
at Bretton Woods stands as an irrrefutable demonstration that men who
choose to live at peace with one another are capable of finding ways to do so.
Chairman Granik: Thank you, Mr. Secretary.

You have been listening to the American Forum of the Air discussion
on The Meaning of Bretton Woods,"

Our speakers: Henry Morgenthau, Jr., Secretary of the Treasury;
Senator Charles W. Tobey, of New Hampshire, ranking Republican member of the Senate Committee on Banking and Currency; Dean Acheson,
Assistant Secretary of State: E. E. Brown, President of the First National
Bank of Chicago and President of the Advisory Council of the Federal
Reserve System; Dr. Harry D. White, Assistant to the Secretary of the

Treasury.

Your letters and comments are welcomed

And now your announcer, Ed Studney.

Announcer Ed Studney: Thank you, Mr. Granik. The American

France and have what. the wer is doing there, What do you think the

Forum of the Air is directed by Chairman Theodore Granik, attorney and
editor, who founded this institution sixteen years ago.
Be sure to listen next week at this time to a discussion of Labor in
Politics" by Representative Joe Starnes of Alabama: Representative War.
ren G. Magnuson of Washington; Mr. Robert J. Watt, International Rep.
resentative, American Federation of Labor: and Mr. James B. Carey, See***ary-Treasurer of the CTO.

SECRETARY MORGENTHAU: There is nothing academie about the problems and proposals we have discussed tonight.

Tonight's broadcast originated in the Shoreham Hotel, Washington,
D. C. You are cordially invited to attend any of these broadcasts Admis.
sion is free- no tickets are necessary.

Chairman Granik: Secretary Morgenthau, you have just returned from
Fund and Bank mean in terms of world peace?

I have just come back from a visit to the battlefront in France. I
have seen at first hand what it means to a country to serve as a battlefield
in modern war. Vast areas have been literally pulverized. Whole populations have been uprooted

I also spent several days in London I have seen what four years of
Nazi bombings and the more recent use of robot bombs have done to that
city and to the entire face of the British Isles.
One cannot see such sights, I think, without acknowledging two absoFOURTEEN

For reprints of tonight's American Forum of the Air discussion on

The Meaning of Bretton Woods,' write to Ransdell Inc., that isR-A-N-S-D-E-L-I-Ransdell Inc., printers and publishers, Washington 18.
D.C. Please include ten cents to cover handling and mailing and allow two
weeks for delivery.

This has been presented as a public service by the Mutual Broadcasting System through Station WOL. This is Mutual.
FIFTEEN

Treasury Department

232

Division of Monetary Research
Date Sept. 27, 194419
0

TO:

Secretary Morgenthau

I think you will be interested
in reading this letter from Mr. Friedman,

in China.

white

H.D.W.

see hage #mg

Done
MR. WHITE

Branch 2058 - Room 214-1/2

1hml

233

SECRET

COPY

September 14, 1944

Dear Mr. White,

Thank you for sending me on that trip to Kunming and Chengtu. It was

a very interesting and stimulating experience. I am sorry that I was
unable to write to you during the trip because of inadequate mail facilities,
i.e. I could send mail but the censors insisted at these places that they
would have to read it, which is not done here.
The big news in Chungking these days is, of course, the seemingly

inevitable fall of Kweilin and Luichow, a major air base to the south of
Kweilin. The Japanese have already advanced beyond Lingling, capturing

or making unuseable many of our best bases in Eastern China. It was from

these bases that the 14th Air Force carried out its successful sweeps
against Japanese shipping off the China coast and effectively bombed Japanese

strong points on Formosa. There are many theories prevalent as to why the
Japanese are making the drive at this time and they range from purely
military onea such as the desire of the Japanese to delay and make more

difficult an American landing on the China coast to such highly political
ones, such as that this campaign is part of an understanding between the
Central Government in Chungking and the Japanese whereby the Japanese are

destroying the most effective center of anti-Chungking feeling outside of

the Northwest In this connection, you may find the following incident
of some interest. When in Chengtu, I visited Dr. Mei, the President of
Yengching University and, I understand, a loyal supporter of the Chungking
Government who has at times been used for "confidential missions". Making

234

-2conversation, he said to me, "of course, you have heard the rumors going
around town that the Generalissimo is conducting peace negotiations wi th

the Japanese". I said nothing, not having heard the rumor, but tried to
look wise and receptive. Dr. Mei went on "These rumors are not true,
but even if they were true, the Gen. would only be doing it to amuse
himself."

It seems, however, that the fall of Kweilin at this time will not
have the dramatic effects that were anticipated in late June and early
July. By now, the edge seems to have been taken off the defeat while
=

everywhere I went, Japanese successes prior to the fall of Hengyang

were openly described by the Chinese as a "national disgrace", the present
Japanese successes are being shrugged off as inevitable and as being more
than counterbalanced by Allied successes in Europe and the Pacific.

The People's Political Council meetings are of course getting
considerable publicity. The Central Government has seemingly, under

public pressure, allowed the Council greater freedom of discussion

than in last year's meeting. There has been particular criticism of
the conscription methods used by the Central Government and just prior to
the meetings the head of the conscription administration was removed.
There has also been discussion of widespread corruption in administration,

with special attention to corruption and abuses in collection of land tax
in kind. The discussion on financial situation was held in executive
session. The Chungking Government seems to be following the policy of

removing the sting from the expected criticism by having Minister after

Minister openly confess the sins of his administration prior to their
di scussion by the Council members. According to reliable sources, the

235

-Communists are going to raise the question of Communist-KMT relations at

an open session, i.e. press present, and lay before the Council a dossier
giving the complete history of the negotiations which are now stalemated.
The Communists are displeased with the Generalissimo's speech which was

taken as an open attack on them in his emphasis on need for abolition of
independent armies.

The bargaining position of the Communists would seem to have been

considerably strengthened by the U. S. military mission to the Northwest.
Not only has the State Department been receiving most enthusiastic reports

from its representative with the mission, Jack Service, but the military
men who have gone up and come back speak nothing but the highest praise

for the Yenan people. They seem to be literally astounded by the CO-

operation which they are getting, the eagerness of the people there to
learn from the Americans, the relative physical comfort in terms of good,
clothing and shelter and the general atmosphere of good-will. Mac Fisher,
head of the OWI here has also gone up to study psychological warfare

possibilities. The U. S. military men here are vying for the opportunity
to go up. there and see the situation for themselves.

In this general atmosphere of increasingly outspoken criticism of the
Chungking Government and growing popularity among Americans here of Yenan

Government, the Chungking Government is said to be on verge of making some

concessions to the People's Political Council: give Council the right
to examine the budget, expand membership from 240 to 290, and have next

assembly consist of representati ves elected by provincial assemblies.

236

-4You will be interested to know that in that part of discussion on
inflation reported in English-language press, the entire blame for sharp
rise in prices in early part of 1944 was placed on Chengtu project - which
of course, is a gross exaggeration and merely another example of how the

Chinese try to make us the scapegoat for their mistakes and failings.

Many of the U. S. military people here expect that if Kweilin falls, the
fault, according to the Chinese, will be the Americans.

The Nelson-Hurley visit is now in full swing. I had an interesting
talk with Nelson and his assistants which was brought to an abrupt end
by the entry of General Hurley. At the press conference here, Nelson was
very cautious as long as Hurley was present, but as soon as Hurley left,
Nelson opened up and spoke quite frankly about his difficulties in Washington
and his conflict vd. th the Army on reconversion. In Kunming, there was

considerable bitterness and criticism of the Mission, on the grounds that
it strengthened the position of the Central Government at a time when it
was rapidly losing prestige and power. There was similar criticism of

the attention given to Dr. Kung, particularly the invitation to address
the Senate.

The sitdation 'in'Kunming is of considerable importance. There the
Governor, Lung Yung, is outspokenly critical of the Central Government and

was quick to point out in talk with Consul General and myself that while

his provincial troops were not "provincial" troops but actually "national"
troops, they were not "Kuomintang Party" troops! The Central Government

is not able to exercise effective control in this area so that you find
outspoken criticism of it in the press and in conversation. Thus, Lung

237

-5 Yung, a provincial war-lord surrounded by opium-smuggling and opiumsmoking henchmen, becomes the guardian of the liberals and democrats!
There is much hinting at open opposition to the Chungking Government
and secret contact has been established between the Communists and the

Lung Yung-liberal combination, but, nevertheless, you get the impression

that anything like open opposition will not come in the very near future,
unless the lead is given by developments in other areas such as the

setting up of a separatist government in the South-east of China.
In Chengtu, the situation is even more abscure. There the Governor

is a strong Kuomintang supporter but real control rests in the hands of

local war-lords nominally friendly to the Central Government. As in
Yunnan, these war-lords, who also engage in such things as opium smuggling,

seem to feel that their hope for survival lies vl th their being "popular"
and again you have them protecting outspoken critics of the Central
Government. The most important of these groups is the Young China Party

which, in the Chengtu area, is largely a party of landlords who have seemingly never forgiven the Communists for the treatment they accorded these

landlords on their way to the Northwest back in 1935. There is no outward
evidence of a Communist movement in the Chengtu area, but I understand that

plans are being executed for establishing contact between the dissident

groups in Yunnan and those in Chengtu region and that this will be effected
during the next few weeks. This can all be accomplished vL thin the framework of the Federation of Democratic Parties which is non-communist, prodemocratic reform and anti-Chungking.

238
-6- Kunming was also interesting because it is a center of U. S. military

activity. Air traffic over the "hump" is now well over 20,000 tons per
month and when I was in Kurming, it was at the rate of nearly 32,000 tons
per month, or probably twice as much military supplies as ever came over

the Burma Road, but still just a few Liberty boatloads.

I should, perhaps, point out here that the 14th Air Force is a very
impressive organization. With a force of only about 15 thousand men, as
of July 15, they had destroyed over one million tons of Japanese shipping,
had inflicted well over 16 thousand casualties on the Japanese (16,000 is
figure for Hengyang campaign alone) and had shot down over 2 thousand Jap

planes against about 200 U.S. planes lost. While the Chinese are doing
ineffective dying in Southeast China and on the Salween, the Americans are
doing effective fighting everywhere in Free China.

I picked up a few tidbits on my trip which were quite interesting and

I would like to pass them on as I feel they are quite revealing as to the
present situation, although they might be considerable exaggerations.
The Chinese forces on the Salween are repeating the oft-told tale of
corruption; starvation and disease due to callousness and mismanagement

by the top. military people; useless. slaughter of heroic. troops under the

command of men totally ignorant of military warfare; defeatism in the high
command to a point of a psychological inability to realize that Chinese
troops properly fed, equipped and led can defeat Jap troops; soldiers
sent into battle against superior numbers of Japanese troops because no
Chinese commander will risk the major portion of his troops in any one

engagement; soldiers sent into battle with insufficient training and not
instructed to crouch or dig fox holes because such protective measures

--

239

would mean loss of face; soldiers making futile and costly frontal
assaults in daylight; Chinese losing 3 to 1 against the Japs, while
Merrill's Marauders killed 60 to 1; Chinese commanders insisting on

bringing in more troops than planned for, thus upsetting at the last
moment carefully laid plans; American advisors being ignored except to
be asked question--how soon could the necessary supplies be made available?

These are not my thoughts but rather the opinions given to me by high
ranking American officers who had just returned from the Salween front.
These are some stories they tell:
When the Chinese forces came to the Salween, the American

engineers estimated that it would take them about 4 days to build a bridge
across the river. It took the Chinese seven weeks, for a month was spent
convincing the Chinese command that a bridge should be built. The Chinese
command opposed the construction on the grounds that if a bridge was built

the Japanese could use it in a counter-offensive aimed at capturing Kunning.
The Chinese on the Salween were shelling one of the many highly

publicized Jap points of resistance. One Sunday an American GI decided to
go for a stroll through the town and did 30. He saw some dead Japanese
and picked up some souvenirs in true American fashion and calmly walked

through the town as though on a Cook's tour. He didn't see any live
Japanese or any evidence of such. After he returned and reported his
rather extraordinary experience, the Chinese continued to shell the town

and a week after this incident still hadn't stormed the town.
As for the famous battle of Sungshan mountain in which the
Chinese dislodged the Japanese from the top of this mountain, the Chinese
kept asking for more and more dynami te until General Dorn finally asked

240
8-

why so much dynamite since he had given them enough for a campaign. They

showed him the plans of attack and, in the words of the teller of this
story, their plans called for tunneling through this mountain practically
at its base. When the day came for the big blow off, every coolie in
the Salween knew about it. Finally the charge was exploded, while the
Chinese withdrew to a safe distance. After the smoke had cleared the
Japanese were found to have moved out of their pill-boxes into the craters
conveniently made for them by the explosion and the battle went on.
According to one informan', the Japanese have only 4,000 troops

preventing the reopening of the Burma Road and the progress that is being
made is more the result of Japanese deliberate withdrawls than Chinese

pressure. It is said that the combat efficiency of these troops as compared
with Americans is about three percent. (I hear in Chungking that the
Japanese are now sending reinforcements into Northern Burma.)

The stories I heard about the North China (Honan) campaign were, if

anything, even worse. I will give you one - when it was recommended to
General Chow Cheh-jou that the Chinese Composite Air Wing bomb a concentration

of Jap tanks in one of the rail centers before the Honan campaign really
got under way, General Chow felt that this. would be,a misuse of his air

power which should instead be saved for the battle. The net result, as told
to me, was that the same airmen had to seek out these same tanks in groups

of 2 and 3 when they were scattered throughout the countryside and spear-

heading the Japanese drive, instead of getting them all in a bunch.

I have more of such tales but I'm afraid that I've already given you
more than enough to make the point. The others can be had for the asking.

241

ORIGINAL TEXT OF TELEGRAM SENT
FROM:

Secretary of State, Washington

DATE:

American Embassy, London
September 14, 1944

NUMBER:

7485

TO:

CONFIDENTIAL

In addition to your No. 7473 of September 11 we have
transmitted the following cable No. 3185 of September 14,
to Minister Harrison and McClelland in Born:
We desire your considered judgment as to whether the

German or Hungarian authorities have actually offered to permit
2100 or any other number of Jews to leave Hungary provided that

they are taken to British or American territory. It is not

possible for us to judge whether such a concrete offer has been

made or whether the above quoted message from the British

Minister in Bern merely represents the opinion of various
agencies and individuals that the Germans might possibly be

more willing to permit Jews to go to some territerry other than
Palestine. (See for example your No. 5579 of August 26).
A specific answer to this question is necessary before this
Government can taken any decision in the matter, and a prompt
reply from you will be appreciated.

You will undoubtedly wish to inquire of the British Minister
in Bern, the officials of the International Red Cross, and all

other appropriate groups and individuals, whether they have any

further information in the matter.

We are unable to take any decision in the matter until
we have received a reply from Bern. In the meantime, we assume

that you will transmit to us any additional information that

you may obtain.
THIS IS WRB CABLE TO LONDON NO. 3.
HULL

242

KEM-150

Distribution of true
reading only by special
arrangment. (SECRET W)

Caserta
Dated

September 14, 1944

Rec'd

7:00 a.m., 15th.

Secretary of State,
Washington.

386, September 14, 9 a.m.
FOR WAR REFUGEE BOARD FROM ACKERMANN. NO. 110.

Heathcote Smith, Intergovernmental Committee, has
suggested probable propaganda approach which is sub-

mitted for Board's consideration. He urges that
declaration be issued by Roosevelt and Churohill while
at Quebec that all denationalized or stateless persons
be declared under political protection of United States
and Great Britain and that this be publicized by every
means together with other statements similar to
President's statement March 24. As precedent he
refers to statement Churchill June 1940 which offered

British citizenship to Frenchmen. He urged if possible that

matter be presented to both men while they are still meeting.
Since status of pretege is one of grace that must
be recognized by sovereign powere I have little hope
that Germans will officially recognize such status but

it might be effective in lower brackets. In any event
it is opinion of both Smith and myself that a final
propaganda effort be made immediately possible along
lines suggested my letter September 7.
KIRK

WTD

243

CABLE TO NORWEB, LISBON, FROM WAR REFUGEE BOARD.

Please deliver the following message to Robert Pilpel from
M. A. Leavitt, American Jewish Joint Distribution Committee:

QUOTE PLEASE INSTRUCT SALY MAYER PAY ADDITIONAL 114,000 SWISS
FRANCS ACCOUNT ZEEV WULF SZYND UNQUOTE

THIS IS WRB CABLE TO LISBON NO. 92

5:00 p.m.
September 14, 1944

RDrury 9/14/44

244

CABLE TO NORWEB, LISBON, FROM WAR REFUGEE BOARD.

Please deliver the following message to Robert Pilpel from M.A.
Leavitt, American Jewish Joint Distribution Committee:
QUOTE HAVE ASKED RESNIK SECURE NAME RELIABLE PERSON SOFIA
AND HE WILL NOTIFY SALY MAYER THEREOF DIRECTLY STOP
ABRAHAM ABRAMOVIC WAS FORMERLY MINOR JDC EMPLOYEE BERLIN

OFFICE NO OTHER INFORMATION AVAILABLE ABOUT HIM UNQUOTE

THIS IS WRB CABLE TO LISBON NO. 91

5.00 p.m.
September 14, 1944

RDrury 9/14/44

245

CABLE TO NORWEB, LISBON, FROM WAR REFUGEE BOARD.

Please deliver the following message to Robert Pilpel from
M. A. Leavitt, American Jewish Joint Distribution Committee.
QUOTE IN ALL FUTURE CABLE MESSAGES SUCH AS YOUR 105 AND 109
RELATING TO ENEMY OR ENEMY OCCUPIED COUNTRIES, UNTIL SUCH
COUNTRIES ARE OFFICIALLY DECLARED NON-ENEMY OCCUPIED PLEASE
USE THE FACILITIES OF THE WRB AND DO NOT (REPEAT NOT) SEND
SUCH CABLES THROUGH COMMERCIAL CHANNELS UNQUOTE

THIS IS WRB CABLE TO LISBON NO. 93

5:00 p.m.
September 14, 1944

R Brury 9/14/44

246

Lisbon

OP-862

Distribution of true

Dated Sentember 14, 1944

reading only by special
arra agenent. (SECPET w)

Ree'd 10:52 p.M.

Secretary of State
Washington

2864, September 14. 11 a.m.
WRB 188

Pertuguese Foreign office, while sympathetic

Immenitarism aims expressed Nabassy's notes 498. August

17 and 515, August 31. feels it impossible to admit
refugees falling in classifications outlined Department's

telegrame 2118, July 28 and 2332, August 24 without more

effective guarantees from United States that all of these
people, whether given US visas or not, will be speedily
removed from Pertugal by US if admitted. Ministry and
government fear end of war and consequent decline US

interest. Sepcifically object to statement that recipients
of US visas after July 1, 1941 will only be admitted to
the US subject to US immigration law and other limitations.

Also object to indefiniteness of statement that US will
evacuate these not given US visas as seen as possible.

Desire US guarantee definite time limit on stay in
Pertugal for all coming under classifications DEPTEL 2118
and 2332. Also statement regarding specific country which
has in advance accepted those unable secure US visas. and

guarantee transport for evacuation of all wire and non-visa
within comparatively short period. If above requirements
impossible to meet, and they seen very fornidable, doubt if
Pertugal will take affirmative action above notes. Babasay
is asked for definite written guarantee along above lines.
NORWER
JT

247

o

Lisbon

LFG-993

Distribution of True
Dated September 14. 1944

reading only by special
arrangement. (SECRET v)

Rec'd 6:12 p.m.

Secretary of State,
Washington.

2875. September 14. 5 p.m.
THIS IS WHO 189.

ThisMabassy has given much thought to the question of

destination for refugees admitted to Portugal in accordance
with terms of Enbassy's notes 498 August 17 and 515 August

31. Would 18 perhaps be possible to send those who do not
receive American visas to Camp Fedhala?

Further REEMBS telegram 2864. September 14. This might

mean postponement of liquidation of camp but come such definite
arrangements seems only possible way to secure affirmative
action from Portugal.
WSB

NORVES

248

FBM-980

Distribution of true
reading only by special

Lisbon
Dated

September 14, 1944

Rec'd

5 p.m.

arrangement. (SECRET -II)

Secretary of State,
Washington.

2876, September 14, 5 p.m.
WRB 190.

Mexican Government has granted visas for five

families, eleven individuals, and airgrams have been
sent by Consular Section with complete data for transit

visas for each. In all except one case data sent over
month ago - earliest eight weeks. Despote statements
URTELS 1819, June 25 and 1820, June 26 that case should

be processed in week, no visas or replies have been
received here. This creates bad impression by Mexican

Legation as all these cases were of special interest
to Minister and may discourage granting further visas.
All individuals are in imminent danger imprisonment
and, deportation.

Please attempt discover and remove present obstacles.
NORNEB
JT

249

BJR - 77

Lieben

reading only by special

Dated September 14. 1944

Distribution of true
arrangement (SECRET w)

Rec'd 9:59 pl m.

Secretary of State,
Washington.

2882, September 14, 7 p.m.
WRB 191 FROM DEXTER FOR PEHLE

Think most everything pending could be cleared by
December first OF earlier, provided Mexican and United
States transit visas for Spanish Republican refugees

here are received seen. Please push. One ship for
Palestine definitely arranged for October and second
pending. By December or earlier Hungarian refugee
question will be cleared one way or other. Refugees

remaining here must be left to care of private organisa-

tions as neither UNRRA nor IntereGeveramental Committee
function in Pertugal. REURTAL 2493, September 12.

Therefore suggest December first as date for conclusion
WRB activities, although earlier date may be possible
for Dexter if he were urgently needed elsewhere. Widen
should probably stay Bill December first and Dexter
would gindly. 12 desired give her guidance in clearing
deaks if he were available. Terminus ad quen depends
largely on speed arrival Mexican and United States

transit visas and possibilities transport. Thanks

notification Unitarians of Dexter's and Widen's
availability. If one or both not needed in Burope
will make plans to return United States early
December. Sincerely appreciate words of thanks for
services.

NORWED

JT

250

B&R - 154

PLAIN

Lisben

Dated September 14. 1944

Rec'd 8:56 a.m. 15th

Secretary of State.
Washington.

2883, September 14. 7 p.m.
FOR LEAVITT FROM ROBERT PILLEZ JDC 75 WRX 193.

Spanish Beat Company reseged on Palestine veyage

Pertuguese beat SS GUINS carrying 400 scheduled sail

October 1st have letter which Companhia Colonial has

written breker and expect close formally next days.

GUINE will carry all Palestine certificate holders
Pertugal Spain numbering about 300 and about 100 from
Tangier group.
RR

NORWER

251

ORIGINAL TEXT OF TELEGRAM SENT

FROM:

Secretary of State, Washington

EO:

American Legation, Born

DATED:

September 14, 1944

NUMBER:

3180

CONFIDENTIAL

Following for McClelland.

1. Reference is made to your 5689 of August 31.

In replying to Swiss notice of August 26, please ask

Swiss political department to emphasize that the German
arguments notwithstanding, this Government is unable to
recognize anyright 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 docuemtns 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 do cuments 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 docuentns 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 documents
holders must be protected nowithstanding any doubts as to

the validity of the documents, Gorman.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

252

-2With reference to lists of bearers of Latin American
documents suggested in ultimate and penultimate paragraphs

of your 5689, disturbed war donditions 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 to Germany even
without such confirmation. You may include in such lists

the persons envisaged in Department's 2407 of July 13 para-

graph numbered six.

Precaution should be taken, however, to inform Swiss and
German authorities that such lists cannot be considered
complete. Should Germany inquire of Swiss Legation or government whether any particular individual not appearing on such

lists is protected 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
Switzerland 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.a

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 varidus countries is transmitted for McClelland's information and guidance in connection with protection of viotims
of enemy persecution, representation in Hungary, and shelters
for Jewish ohildren from Hungary:

Portuguese government is in agreement in principle to
admit for temporary refuge Hungarian Jewish. refugees, prefer-

ably 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

253

-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
purpose of aiding the bearers of Venezueland passports in those
regions.

President Vargas of Brazil has approved the plan to
bring 500 refugee children to Brazil, provided that the
Brazilian Government would not inour the expenses of transportation to and maintenance in Brazil. He has accordingly
charged General Ivo Soares, Chairman of the Brazilian Red
Cross, with making suitable arrangements with appropriate
Jewish welfare agencies in Brazil 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 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-Law 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 naturalization abroad to return to
Haiti before August 5, 1942. Consequently, it is
hereby made known to whom it may concern that the
safid persons are not affected by the Decree-Law of
February 4, 1942. UNQUOTE

In this connection,

254

-In this connection, the Board's attention has been
called to the test base of Mrs. Zelman Solowierozyk, 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 Solowiejozyk, now

residing in New York City, Under the foregoing declaration,

these women, whose Haitian naturalzation is said to have been
promulgated in the Moniteur of Haiti on December 23, 1939,

retain their Hattian nationality. Please take all appropriate
action to insure that these women, if still in German hands,
be treated as Haitian nationals. Consult with Haitian

Minister if you deem it advisable.

The Haitian Legation has also been instructed not to ques-

tion 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 cabbe to Bern No. 164.
HULL

255
ORIGINAL TEXT OF TELEGRAM SENT

Secretary of State, Washington
American Legation, Bern

FROM:
TO:

DATED:

September 14, 1944

NUMBER:

3186

CONFIDENTIAL
FROM WAR REFUGEE BOARD FOR MCCLELLAND.

Board is receiving numerous urgent requests to take vigorours

action on behalf of Jews in Slovakia whose position is reported to
have seriously deteriorated without prior warning in recent days.
Similar disastrous conditions reported in fact or imminent in
Hungary. With respect to Hungarian situation please consult

Sternbuch in an effort promptly to secure the names and addresses
of persons indicated in Department's 3152 dated September 12,
WRB's 165. With respect to the Slovakian situation Union of
Orthodox Rabbis reports further urgent pleas for money from the
Rabbi of Neutra. Please endeavor to ascertain from Sternbuch
the nature and such details as possible of the Rabbi of Neutra's

project and, if, in your opinion and that of Saly Mayer such
project is feasible and is reasonably calculated to save the
lives of Jews is Slovakia, please extend to Sternbuch all possible assistance. To this end, you may in your discretion

expend such portion of such funds as may be available to you
and to request Saly Mayer to place at your disposal for such
purpose such additional funds as you may require within the

limits of what may be available to him. If funds in excess of

those presently available to you and Saly Mayer in Switzerland
are needed for such operation, please advise the Board at once.
Nothing hereinabove contained should be construed as indicating
that you may not in your discretion arrange to have Sternbuch
discuss the Rabbi of Neutra's project with youand Saly Mayer

jointly. JDC is in agreement. If, regarding any project you

and Saly Mayer are not in agreement with respect to the expenditure of JDC funds, please advise the Board fully at once.

Interested persons here assert that lives of group of

Hungarian Rabbis and leaders now reported at Bergen-Belsen could

have been saved while aboard train if funds had been sent to

appropriate persons in Hungary. Would appreciate any comments
you may wish to make and such information as there may be avail-

able to you with respect to the present condition of said group.
THIS IS WRB CABLE TO BERN NO. 169
HULL

256

ORIGINAL TEXT OF TELEGRAM SENT

FROM:

Secretary of State, Washington

TO:

American Legation, Bern

DATE:

September 14, 1944

NUMBER:

3185

CONFIDENTIAL

Following for McClelland.
The following cable dated September 11 has been received

from Ambassador-Winant and War Refugee Board Representative Mann!

(Here take in full text of No. 7473 of September 11
from American Embassy, London).

We desire your considered judgment as to whether the German

or Hungarian authorities have actually offered to permit 2100 or
any other number of Jews to leave Hungary provided that they are

taken to British or American territory. It is not possible for us

to judge whether such a concrete offer has been made or whether
the above quoted message from the British Minister in Bern merely

represents the opinion of various agencies and individuals that the
Germans might possibly be more willing to permit Jews to go to
some territory other than Palestine. (See for example your No.
5579 of August 26). A specific answer to this question is

necessary before this Government can take any decision in the matter,
and a prompt reply from you will be appreciated.

You will undoubtedly wish to inquire of the British Minister
in.Bern, the officials of the International Red Cross, and all
other appropriate groups and individuals, whether they have any

further information in the matter.

This is WRB cable to Bern No. 170.

HULL

257

CABLE TO MINISTER HARRISON AND MOCLELLAND, BERN, SWITZERLAND

Sternbuch is reported to endeavor to bring 5000 children
from Hungary to Switzerland. German authorities allegedly
ready to permit departure under Intercress auspices, and
Sternbuch doubtful whether Swiss government has received sufficient
guarantees regarding subsequent evacuation of said children to
countries other than Palestine.
It is expected that such guarantees have been offered
to Swiss government pursuant to Department's 891 of March 18,
2236 of July 3, and 2877 of August 21, as well as pursuant to
information regarding agreement by Ireland and Honduras (Depart
of
ment's 2978 of August 29), Nicaragua (Department's
. WRB's 158), Portugal, Venezuela, Brasil,
Uruguay, (Department's
and Cuba (Department's

of
of

WRB's 164)
WRB's

to admit children from Hungary.

In addition, the assurances contained in paragraph three
of Department's 2605 of August 1 fully apply, of course, to
children from Hungary.

You may inform Sternbuch of the existence of these
guarantees and assist him in any promising program of evacuating
children from Hungary to Switzerland.
THIS IS WRB CABLE TO BERN NO. 171

3:10 p.m.
September 14, 1944

),

258

CABLE TO MINISTER HARRISON AND MOCLELLAND, BERN, SWITZERLAND

The following is the substance of a communication received
from Minister Johnson and Olsen in Stockholmi
QUOTE A German group consisting of Boening, Kleist and Klause

have recently renewed their approaches with respect to freeing
Baltic Jews against 2,000,000 Swedish kroner of civilian relief
supplies for German bombed-out population and a concrete proposal

allegedly will be advanced this week with Berlin approval. In
the meantime it is stated the German authorities have issued
strict orders to stop further Jewish persecutions in the Baltic
countries.

We are also advised that Boening returned to Germany for
military service but was immediately released and sent to Bern.

It is possible that he is involved in some of the German
negotiations in Switzerland with respect to Jews, particularly
Hungarian. Believe it highly desirable that there be a close

interchange of information as to any such negotiations. UNQUOTE
THIS IS WRB CABLE TO BERN NO. 172

3:10 p.m.
September 14, 1944

B Aksin/sg

9/13/44

259
PARAPHRASE OF TELEGRAM RECEIVED
FROM:

American Legation, Bera

TO:

Secretary of State. Washington

DATED: September 14, 1944
NUMBER: 6047
CONFIDENTIAL

You are referred to Legation's airmail of May 6. No. 8103
and Department's message of June 26. No. 2173.
Copy of note from German Foreign Office dated August 8.

which is enclosed with note from Swies Foreign Office dated September

9. statos that investigation disclosed that Pfifferling doon not have
citisenship in Handuras and that Pffferling stated only German
citisenship is claimed by his family and himself.
The foragoing is in connection with Honduran interests
in Germany.
DOR:GPV

(****$
(******

9-37-44

MARRISON

260

Baraphrase of Telegram Received
FROM:

American Legation. Born

TO:

Secretary of State. Washington

DATED:

September 14. 1944

NUMBER:

6062
SECRET

It is stated in a note from the Swiss. dated September 7.
that representations have been made to the German Foreign Office

by the Swiss Legation. Berlin. is as endeaver to secure authoris
sation to visit the camps mentioned is Department's cable 2149,
dated June 26, 1944, first paragraph. On August 19 the German

Foreign Office responded by note. declaring that the request

from the Swiss was referred to compotent officials and stating
that further communications on the matter would be sent. WHB 36.
HARRISON

DCR:MND:CR

9-16-44

261

Distribution of true

September 14, 1944

reading only by special
arrangment. (SECRET w)

8 p.m.

AMEMBASSY
ANKARA
800

The following for Steinhardt and Hirschmann is
WRB 110.

Please refer to your 1694 of August 30, requesting
the approval of the Board and the State Department of

measures for the emergency relief of Jews in Bulgaria.

It is not clear to the Board as to what is meant
or contemplated by your reference to emergency relief

and the Board would appreciate further details as to
the measures which you believe necessary for the

emergency relief of Jews in Bulgaria.
HULL
(GLW)

WRB:MMV:KG

9/14/44

NE

SE

252

GEK-254

This telegram must be
paraphrased before being
communicated to anyone

other than a Government

Ankara
Dated

September 14, 1944

Reo'd

2:31 p.m., 15th.

Agency. (RESTRICTED)

Secretary of State,
Washington.

1735, September 14, 4 p.m.
FOR WRB. Ankara's no. 155.

With a view to investigating the possibility of
setting up a separate American base for diredting the
rescue of refugees from Greece to Turkey under the auspices
of the War Refugee Board Katzki has completed an exploration

of the situation in Izmir. After consultation with

informed persons there and in view of the developing
situation in Greece, the inauguration of such an
independent operation does not (repeat not) appear
warranted at this time.
Meanwhile as are informed that an additional
approximate 100 refugees have arrived from Greece in

Izmir en route to Palestine bringing the total to 900.
See my No. 144, August 30. A written report is being
sent by pouch.
STEINHARDT

WSB

263

CABLE TO AMERICAN CONSUL, ISTANBUL, FROM WAR REFUGEE BOARD.

Please deliver the following message to Resnik from M.A.Leavitt,
American Jewish Joint Distribution Committee:
QUOTE

SALY MAYER ASKS THAT YOU FURNISH HIM WITH NAME

RELIABLE PERSON SOFIA STOP PLEASE CABLE HIM
INFORMATION DIRECT WITH COPY TO US UNQUOTE

5:00 p.m.
September 14, 1944

264

CABLE TO AMERICAN CONSUL, ISTANBUL, FROM WAR REFUGEE BOARD.

Please deliver the following message to Passman Resnik from M. A.

Leavitt, American Jewish Joint Distribution Committee:
QUOTE YOUR 147 TO LISBON WE HAVE ASKED SALY MAYER PAY
ADDITIONAL 114,000 SWISS FRANCS ACCOUNT SZYND THUS COMPLETING
FULL PAYMENT 1028 PASSAGES INCLUDING MEFKURA GROUP STOP REGARDING
OTHER SAILINGS WISH AGAIN CALL YOUR ATTENTION FACT HIRSCHMANN
BELIEVES NO SAILINGS SHOULD NOW TAKE PLACE WITHOUT SAFE CONDUCT
FROM ALL PARTIES STOP VIEW CHANGED CONDITIONS RUMANIA WE
QUESTION ADVISABILITY RISKING LIVES REFUGEE GROUPS WHO ARE NOW
IN COMPARATIVE SAFETY AND WOULD BE ABSOLUTELY OPPOSED MAKING
ANY PAYMENTS THIS PURPOSE IF HIRSCHMANN STILL BELIEVES SAFE
CONDUCT ESSENTIAL UNQUOTE

5:00 p.m.
September 14, 1944

RDrury 9/14/44

265

COPY NO

NOT TO BE RE-TRANSMITTED
SECRET

OPTEL No. 300

Information received up to 1000 hours 14th September 1944.
1. NAVAL

Early 10th Warships off MENTONE were unsucc-

Mediterranean

essfully attacked by human torpedoes. of
which 10 were sunk, 3 prisoners taken. Destroyers and Gunboats
continued to bombard RIMINI area on 10th and 11th.
East Indies cocos ISLAND was attacked by one Japanese

Aircraft 8th. Damage slight.

2. MILITARY

Northwest Europe

3rd. U.S. Army has made contact with 7th

U.S. Army and advanced some 10 miles from
NEUFCHATEAU and south of NANCY. Resistance round METZ strong but two

bridgeheads have been forced over the MOSELLE. Lst. U.S. Army has

entered GERMANY at 5 points east and northeast of LUXEMBOURG and east

of LIEGE. A patrol of 2nd British Army has penetrated up to 5 miles

into HOLLAND and our bridgehead over the ALBERT CANAL and MEUSESCHELDT CANAL has been consolidated. Canadians have occupied BOUGES
and reached LEOPOLD CANAL. They are closing in on BOULOGNE from the
north.
Southern France

After advancing 350 miles in 28 days the
7th U.S. Army established firm junction with

3rd U.S. Army at CLATILLON SUR SEINE. VESOUL has been captured and
some progress made towards BELFORT.

Russia Russians have captured LOMZA. In the south they

have captured CAMPULUNG and advanced further into

Northern TRANSYLVANIA taking ODORKEI.
3. AIR OPERATIONS

Western Front 12th/13th. In clear weather Bomber Command
Aircraft dropped 1557 tons including 802

HE at FRANKFURT and 781 tons including 321 HE at STUTTGART, good

concentartions reported and preliminary photographs indicate good
results both places.
13th. 117 Bomber Command aircraft attacked OSNABRUCK

Railway Centre and town 392 tons. 384 Heavies including 188

Bomber Command attacked oil plants GELSENKIRCHEN 495 tons, MERSEBURG

299 and LUTEKENDORF168. Also oil storage WEISSENHORN 90 tons

538 Heavies bombed industrial targets and airfield and other objectves
in Germany and DARMSTADT Railway Centre, total 1287 tons.
From these operations 28 heavy bombers and 11 fighters

missing, 33 German aircraft shot down and 20 destroyed on the ground.
143 AEAF Bombers attacked strong points BOULOGNE Area and communicat+

ions HOLLAND. 126 fighters attacked objective HAGUE Area.

13th/14th. 36 Mosquitoes sent to BERLIN and 66 aircraft

other operations (2 aircraft missing).
Moditorranean.

the battle area.

Italy 12th. 1064 aircraft of the Tactical

Air Force attacked communications ets. in

13th. 75 Fortresses returning from RUSSIA bombed

DIOSGYOR, HUNGARY and landed in ITALY.