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TRADE MARK
MICROSTAT
MICROFILM
ROLL
-ABook
Page
American Bankers Association
See also Post-Var Planning Bretton Woods Conference
General position with respect to all monetary
legislation over the past five decades - 3/10/45
827
13
-3Barth Alfred V
See Foreign Funds Control: Chase National Bank
Baruch Bernard x.
See Post-Year Planning Germany
Business Conditions
leas secorandum on situation week ending March 10. 1945
3/12/45
-
PRECISION
115
Byrnes. Jases 7.
See Post-Var Planning: Germany
-0Chase National Bank
DIABY
Sea Foreign Funds Control
China
Book 827
Gold situation (current) reviewed by Adler 3/11/45
concerning Kunning operation contract 3/13/45
March 10-13. 1945
53
Chrysler Export Corporation-Treasury correspondence
261
(See also Book 828 page 366 3/16/45)
Financial situation reviewed in Adler cable 3/13/45
308
United Clearing Board Sale of negotiable checks in
China reviewed is Adler semorandus . 3/13/45
Chrysler Export Corporation
313
See China
Financing. Government
War Savings Bonds 7th War Loan Drive
speech is Missempolies See Speeches by 104Jr
Foreign Funds Control
Chase National Bank
earth (Alfred W.)-State-Treasury correspondance
concerning connection with Paris branch 3/13/45
295
(See also Book 814: Book 820. page 132)
Niedermann (in charge of Paris office during German
occupation) discharged by Chase 3/14/45
See Book 0.28. page 130
France
See also Land-Lense
French Private Assets in U.S. . inquiry concerning by
United Kingdom answered by Treasury 3/13/45
a) Brand's office acknowledges - 3/14/45
See Book 0.00 page 205
236
PRECISION
TRADE MARK
MICROSTAT
MICROFILM
NO. U.S.PAT.ORK
ROLL NO
Book
Book Page
Germany
Page
Post-Mar Pleasing
Bretton Woods Conference
.
See Post-Yer Planning
American Bankers Association
For general position on sonetary legislation
Gold
See China
see American Bankers Association
Chancellor of Exchequer disapproves American Bankers
Association stand 3/5/45
---
827
276
Germany
See also Fost-War Planning (Talta Conference)
Draft Directive for the treatment of Germany as OK'd
See War Refugee Board
by FIR and Stettinius 3/10/45
Maruch's visit to England discussed by Treasury group
1
Hungary
160
3/13/45
a) Hyrnes' attitude toward Committee recommended
by Baruch to FOR discussed
India
162
b) White House asked If Treasury material should
be given Baruch 3/16/45 See Book 620.
See Land-Lense
pages 344,345,348
c) DuBois-Lubell (Assistant to Baruch) luncheon
conversation reported by your 3/16/45
Book 829. page 232
JCS 1067
d) Lubell asks that Baruch be above copy of
directive as signed by FOR on March 23
3/24/45 Book 832. page k
Exports from Occupied Germany during period of military
See Fost-Var Planning Germany
operation policy explained in Coe secorandus
.
171
3/13/45
Lend-Lease
France Documents comprising Agreement sent to HMJ
827
by State Department 3/13/45
India Use of Lead-Lease silver discussed is Senator
Financial Appendix B. of JOB 1067
Draft as OK'd by
McGarren-Foreign Economic Adminisiration-Treasury
190
correspondence 3/13/45
March revised Grew: Directive 10. conversation draft Directive 1945 discussed reported FOR ExJr. and Treasury Stettinius Stattinius, 3/13/45
United Kingdom Phase 2: *Take-outs' of British-owned
capital facilities discussed in Brand (United Kingdom)-
3/15/45 Book 121. page 233
a Strong disapproval registered by HAJF
b) *Document covers great deal more than 1067
194
Treasury Var correspondence 3/13/45
and reparations really goes into fundamental
a) Var Department to review entire matter Land-Level
OK
Character letter
3/21/45 See Book $30. page 181
Lubell, San (Assistant to Bernard Baruch)
by
andto group
approved by Treasury
197
FDR
policy' DaBots Book 12. page 236
o) McClay strongly disapproves: War Department
169 BC
did not ... although Stattinius so reported to
See Post-Var Planning Germany
FOR 3/15/45 Book 826 page 259
McClop HMJT conversation 3/17/45: Book 829. page 2
a) HMJr tells McCloy of above talk with Stettinius
b) Treasury preparing report aboving difference
between this interpretation of the Protocol and
Kinneapolis Minnesota
the original 1067
c) Stimeon's talk with FOR reported by McCley
4) Var Department conference also described by
See Speeches by HMJr
McCloy
.) Hiddleberger and Dupres (State) responsible
for changes
Siederman Kr.
See Foreign Funds Control: Chass National Bank
0
181
(Continued)
(Continued)
Book
Book Page
.
Post-Mar Planning (Continued)
Coe Remorendom 3/12/45
UNREA-Var Refugee Board conference 3/10/45
827
See Book 820. page 99
Rabbie Kalmanowitz Kotler. Korff. and Mr. Junia
confer with HMJr. O'Dayer and Miss Model 3/13/45.
67
b) Stettinius asked by HMJr to see political part
a) Memorandum presented by Babbie
of discussions at Talta 3/16/45: See Book 828
1) Discussion by O'Dayer. Grew, and McCley's
164 -A
HMJ letter to FOR wishes not sent
164 a
representative reported 3/20/45:
Character + FOR water
lot
Book 830. page 125
War Savings Bonds
Premises are Article - Lend Larse
.
See Financing. Government
Silver
See Lend-Lease! India
Speeches by EXJr
7th War Loan Drive
Minneapolis Club (first of two luncheon meetings to
inform top sacagement of plan for sale of Bonds is
industrial plants). March 12. 1945
Breakfast guests
Acceptances for luncheon
Talta Conference
See Post-Var Planning
84
26
Cocktail party guests.
ExJr's schedule in Misneapolis
Minneapolis Civic and Commerce Association and Draft 2
Draft 3
Foreign Policy Association
Draft of speech
83
81
44
101-6
86
249AW.250
Reading copy
Letters of thanks 3/14/45 See Book 828. page 192
Sweden
See War Refugee Board
Switzerland
See Var Refugee Board
..
United Clearing Board
See China
United Kingdom
See France
Lend-Lease (Phase 2)
United Nations Relief and Rehabilitation Administration
See War Refugee Board
Var Refugee Board
Svedish achievements is Hungary report from Olsec.
Special Attache in Stockhola 3/12/45
25
in Switzerland, as their wards 3/14/45
"Military Government Problems Requiring Immediate
Trade Rules for international trade page 350
827
a) UNREA decides to regard interness once they are
54
a) McSherry a to Chief of Staff:
Agreement with Russiana' 3/3/45
Switzerland
See also Book 124
Talta Conference Decisions on Germany as reported
by Matthews (State) to Eieenhover's Chief of Staff
Page
War Refugee Board (Continued)
59.103
237
241
March 10, 1945
TOP SECRE
ERS
on
MEMORANDUL FULL This PRESIDENT
Subject: Draft Directive for the restment
th
Your stemorendum of February 2b directed me to
assume the responsibility for carrying forward the
CO clusions you reached at the Crimen Conference. In
pursuance thereof, 1 and attaching for your approval
a suggested directivo on the treatment of Germany
which I believe conforme to the Yalte discussions, and
decisions. I believe that such n directive is urgently
necessary to implement the Valte ducisions and continue
Lie formulation and development of United States policy
to be concerted with our Allien. If you A. rure of the
attached directive, 1 suggest the establishment of an
informal policy co.nittee on Germany under the chairmanahip of the Department of State and including ropresentatives of and Javy. Trensury and tro Foreign
Econowic Administration. thia committee would serve
8.0 the central aourco of policy guidance for American
officials both civilian and military on questions relating
to the treatment of Germany and its proceedings would
be based on the attached directive.
Enclosure:
Supersted directive.
TOP SECRET
Marun 10, 1945
Draft Directive For The
Treatment of Germany
I. MUNITARY GOVARDONT
1. The inter-allied military government envisaged
in the international agrement on control machinery
for Certany shell take the place, and nesume the
Maling
functions, of a central government of Germany.
2. The authority of the Control Council shall be
partmount throughout Germany. The morea of
occupation ahall be areas for the enforcement of
the Council's decisions rather than regions in
which the zone conmanders poosess a wide Intitude
of autonomous power.
J.
German administrative machinery must be purged as
set forth below. It shall be used in so far as
it can surve the purposes of this directivo and
dooo not permit Knai abuses.
II. L INDIATE LASTICS
1. Yno Genmen armed forces, including para-military
organizations, shall be promptly demobilized and
disbanded.
2. All
UP SLORE
TOP SEC
-2-
2. All military and perm-uilitary agencies, including
the General Staff, partly military and quadi-
let-irable may be transferred to other agencies.
military organizations, the Reserve Corpa, anit
...... lawa which provided the legal basis of the Hit
militar scadenica, together with ell annocia-
regime and which established discriminations on
tions serving to keep alive U.O military tradition
grounds of race. creed, and political opinion
in Ceramily ahell in immediately dissolved and
shall be abolished.
thereafter prohibited.
All Heal public institutions (such na the People's
5. All Germal eria, ammution and Inclumental of war
awell be reloved or instroyed.
it.
2.
6.
social services of these organizations no are deeme
Courts and Labor Front) which more act up na inatru
ments of Party domination shall be abolished.
Military archiv.co and =ilitary research facilities
4. Activo Nazia and supporters of Hazim and other
ahall bc confiscated.
individuals hostile to Allied purpose, shall be
The manfacture and the importation f erms. not
eliminated from public and quani-public office and
numition and Imolements of WET shall Je prohibited.
from positions of Importance in private enterprise.
The Ger.ru sirer fu industry alin11 be die Antle:
Active anzia shall be defined-na those approximately
and the further manufacture of mirgraft and com-
two million numbers of the Party who have been
ponent parts shall be inceforti. prohibited.
lenders at all levels, free local to national, in
the Porty and its subordinate organizations.
233. LINDIA... POLICICAL
1. The Texi Party and its effiliated and supervisod
organizations whall be dissolved and their revival
in any form shall be prohibited. Such non-politics
social
5. Unzi political molefactors and all wer criminals
shall be arreated and punished.
6. Germane
1
TOP SECRET
TOP SECRET
6. Germane taken abroad for labor reparation shall be
dream primarily from the ranks of the activo linzia
and of Kazi organizations, notably from the SS and
the Gentapo.
January 1, 1936,with the exception of East Prusnia
and Upper Silecia, shall be administered and controllcd an an economic unit.
2. The economy of Germany ahn1] be directed, controlled
This procedure will sorve the double purpose of eliminating many or the worat carriera of New influence from
and administered in such a way BA to
(a) Provide facilition for, and contribute to
Germany and of compelling the guilty to expirite their
the maintenance of the occupying forces and
crimes and to repair some of the damage they have done.
occupying authorities.
7. Under the direction and supervision of the Control
Council there shall be established throughout
Germany n nified s/ste of control over all meena
of dissemirating public information.
(b) Stop the production, noquisit ion and development of implements of war and their specialized
parts and components.
(c) Provide n minimum stendard of living for the
b. There shall be established a uniform ayatom of control over German education designed completel/ to
Cornar people including such food, shelter,
clothing and medical supplies as are required
eliminate Lesi doctrium and to make possible the
to prevent diaorder and diacnac on a acale that
development of democratic ideas.
would make the tnak of occupation and the col-
IV.
loction of reparation substantially more
1. Pending definite decision un revision of boundaries
and partitioning Germany BD it existed on
difficult.
(d) Provide and goods and a tvices to Allied
January 1,
countries for relief, restitution and reparation
8.0 will bc in excess of the requirements of the
occupation
TOP SECRET
TOP SECRET
OCCUR tion forcus and'the minimum of
undower and transportation.
O
2X
living
It 10 recovnised that the prevention of uncontrol-
lvd inflation in in the interest of the United
(o) Conform to such mansures for the reduction
lotions. The Control Council shell strive to in-
and control of Gereeny'a will polentina
aure that appropriate controls, both financial and
DO the Allied un, prescribe
direct, hro malainined or revived.
1. to l.
5%
It in recognized that EL substantial 10 The or col-
tralized financial and COP r 1 1'd appendinl
to the disclark all the trusica Section d 11.
2. The Con rol Council ahall LAVO overrl reagonai
bility for insurIn that all ensures necessar to
and ero taken.
The Centrol Jouicil ahr.11 util ze centrolized instrumentalition for the execution end implementa-
tion OF to policica and directives to the Taximaz
penmicle extent. subject to supervision and scrutiny
3 the accurying forces. Whenever central German
EL Pancies or additionalive services which are
needed for this adoquato performance of such tasks
4. In particular, the Control Council shall US empogered
to formilate, within the freienor of oxisting miki
future directives unaic policica coverning (n)
public finance: MONEY and credit, (b) prices and
wegon. (c) in ionin . (d) inland trensportation and
writine Card communications, (f) internal
common ( foreign correrco not international anymonto, (ii) restitution and rejeretion, (1) treetment each movement OZ displaced permona, and (37
allocation of plant and equipment, materials,
azaipower
Kave conned to Auction the shall be rerived or
replaced n readly na possible.
7. (A) Before utilizing German e_encies military CovernHOTEL authorities must carry through consistication
in accordance with the principles act forth
above.
(u) Gensal nationals deprived of their positions
because of previous affiliations with or support
of the asi party or because of disloyalty to
the
PRECISION
TRADE MARK MICROSTAT REG.U.S.PAL.OFF
MICROFILM
TOP SECRET
O
TOP SECRET
the military overnment authorities ahall be
objecte of unique cultural and artistic value
replaced ILU for 0.0 possible by other Gorman
whenever looted property fulling within these
nationals. In recruiting replacements milic
categories cannot ce found and restored.
11. Germany must make substantial reparation for damage
tory government officers shall rely 82 much
O.
ROLL NO
0.0 practicable on the londors and personnel of
to, or lousea of, non-silitary property caused by
freely organized In bor unions and professional
or incident to heatilities. Such reparation shall
associations and of such anti-Nazi political
take the form of (a) confiscation of all German
grouping and parties 0.0 may ariso in Germany.
property, claims and interests abroad, (b) deli-
Military government sull eliminate active Ensis and
veries from exiating German assets, particularly
supporters of the Nazi regime and other individuals
capital equipment (c) deliveries from future German
hostile to Allied purposes, from dominant positions
output, and (d) German labor services in devastated
countries.
in industry, trade and finance.
9. Military government shall permit free and spontaneous
organisation of labor and professional employees.
It shall facilitate collective bargaining Letween
employers and employees regarding and working
12. The reperation burden and schedules for delivery
should be determined in such 8 manner that Germany
can discharge its obligation within 8 period of ten
years from the cessation of organized hostilities.
13. The volume and character of German reparation deli-
conditions subject to overell TACK controls and
verica of capital equipment shall be largely deter-
considerations of military nocessity.
mined in sucn 0 way nu to reduce Germany's relative
10. Cermany ancil be required to rostore all identifinble property which has becn taken from invaded
predominance in capital goods industries of key
countries. It shell also be compelled to replace
importance and to rehabilitate, strengther and
objects
develop
RECISION
MICROSTAT REG.U.S.PAT. OFF.
TRADE MARK
"
-10-
MICROFILM
ROLL NO
TOP SECRET
-01-
TOP SECRET
develop such industries in other European countrica,
auch cartels or arrangements shall be promptly
n.o part of n broad program of reconstruction.
terminated.
14. Germany shall DC prohibited from engaging in the
18. The scope and execution of the economic disarmment
production and development of all implements of war.
program should be cade compatible with the payment of
All specialized facilities for the production of
reparation and both the reparation and economic
armanents shall DO destroyed, and all laboratories,
disarmanent programs should take into consideration
plants and testing stations specializing in research,
the necessity of maintaining B minimann German
development and testing of implements of war shall be
standard of living LB defined in paragraph 2.
closed and their equipment removed or destroyed.
19. In fulfillment of this principle, Germany shall be
15. Germany shell also be forbidden to produce or main-
made to begin paying her own way as soon as possible.
tain facilities for the production of aircraft,
There shall be no simultaneous payment of reparation
synthetic oil, synthetic rubber and light metals.
Production facilities in these industries shall be
by Germany and extension of credit to Germany.
16.
Payment for such importa ne are authorized by the
reasyed to other countries or destroyed.
Control Council shall be made & first charge on the
In order to foster and develop metal, machinery and
proceeds of German exports. If Germany is unable
chemical industries in other countries, exports of
to export sufficient goods in excess of reparation
competing German products shell be subjected to
deliveries to pay for authorized imports, reparation
restraint for a considerable period. At the asme
recipienta shall be required to shoulder this defi-
time, German production and export of coal and light
oit in proportion to their respective receipts from
consumer goods shall be facilitated.
reparation.
17. German firms shall be prohibited from participating in
international cartels or other restrictivo contracts
or arrangements. Existing German participations in
such
.
Var. 10, 1945
14
AMERICAN BANKERS ASSOCIATION
I. General Position with Respect To Legislation
The American Bankers Association has opposed many of the princi-
pal alterations in banking, currency and financial law of the past
five decades.
disfavor any compromise with the proponents of the Steenarson
1001 by WITH the existing powers of Postal Savings Banks be
in any respect enlarged . (Proceedings, American Bankers
Association. 1922, P. 119).
As late as December 1935, the Association passed a resolution
condenning as "inequitable" the *competition of the Postal Savings
System with privately-owned banks through the relatively high interest
(a) Postal Savings
was established in the United States by legislation
rate and liberal interest privileges allowed its depositors.
"after nearly forty years
enacted Postal on June Savings 25, 1910. which time of discussion eight Post- of
Fostal Savings in the United States, during
(b) Guarantee of Bank Deposits by the Federal Government
masters General had urged the establi stueent of Postal Savings Banks
and after Presidents Roosevelt and Taft had urged the establishment of
a Postal Savings System." (See The Postal Savings System of the
United States, American Bankers Association Committee on Banking
Studies, at p. 7).
quell the opposition of the Association.
Both before the establishment of the Postal Savings System, and
virtually to the present time, the American Bankers Association has
attempts to guarantee deposits. Its legislative committee reported
officially opposed Postal Savings in general or particular phases of
its operation.
The American Bankers Association opposed the establishment of
Postal Savings Banks, condemning it as unwise:
*It is the opinion of this Association that we
should condemn in unqualified terms the proposition
for the establishnen of Postal Savings Banks ...
(Proceedings, American Bankers Association, 1909, P. 252)
The Savings Bank Division resolved that it
The American Bankers Association successfully resisted all early
that it was:
#opposed to the guaranteeing of deposits by either
State or Federal Government. (Proceedings, American Bankers
Association, 1908, P. 283)
Its report was adopted and the Association stated that it was
*unalterably opposed to any arbitrary plan looking to the
nutual guaranty of deposits either by a state or the
nation, believing it to be impractical, unsound and sisleading, revolutionary in character and subversive to
sound economics, placing & tool in the hands of the
"depreciates the agitation for an enlarged system of
Postal Savings banking paying an increased rate of
unscrupulous and inexperienced for reckless banking. and
knowing further that such . law would weaken our banking
to that end.' (Proceedings, American Bankers Association,
ceedings, American Bankers Association, 1908, P. 286)
interest, and hereby protest against any legislation
1921, p. 198)
The Committee on Federal Legislation opposed the Steenarson Bill
(to amend the Postal Savings Law by increasing the saximum deposit
and the rate of interest to be paid to depositors) and adopted a
motion to
*oppose any increase in the powers of the Postal Savings
System including the rate of interest which they pay and
C
The demands for insurance of deposits were virtually as old as
that for establishment of Postal Savings System. The American
Bankers Association has at all times opposed the institution of
deposit guarantee system, and the establishment of the Federal Deposit
Insurance Corporation by the Banking Act of 1933 was insufficient to
A
had been introduced in Congress for this purpose; after
such system
after all political had
80 advocated
bills parties
in their platforms;
system and jeopardise the interest of the people. (Pro-
Similar opposition was voiced in 1909 ("receedings, pp. 250, 260).
After the adoption of the Federal Reserve System, attempts were
again made to provide for the guaranty of deposits. Again, the
Association objected. Its Federal Legislative Committee reported
PRECISION
TRADE MARK
MICROFILM
MICROSTATA
BOLL NO
16
15
-3-
-4-
(
"As our Association is on record, by resolution, as
opposed to the guaranty of bank deposits by the States or
by the Nation, we have opposed the bill introduced in the
last session, providing for the guarantee of deposits in
The American Bankers Association remained akeptical of the
Deposit Insurance in 1941 when it was stated by its research
Deposit
Federal council, in reply to a questionnaire
of the United
States Senste
Insurance
#Federal
currency
banks of the Federal Reserve System. ### This bill ***
is measure which, if enacted into law, would seriously
affect the banks of this country. (Proceedings, 1932)
on
and
considered as experimental and not tested in the crucible of
perience under varied economic conditions.
and in 1933:
(e) The Federal Reserve System
**** the American Bankers Association hereby records its
deliberate judgment that the dangers involved in attempting
to initiate at the beginning of 1934 the provisions for
The Federal Reserve System was an outgrowth of proposals for
central reserve banking facilities which had been pending for EATLY
deposit insurance contained in the Bank Act of 1933 are
genuine and serious. ###." (Proceedings, 1933, P. 36)
years. The first action by the executive council of the American
Bankers Association approving any central reserve system was in
The President of the American Bankers Association, urging members
to telegraph to the President recommending veto of the deposit insurance
provision of the Banking Act of 1933, stated:
*The guaranty of bank deposits has been tried in
number of states and resulted invariably in confusion and
&
disaster to the financial structure of the states, and if
our party when returned to power should incorporate such a
scheme in the federal organisation, we would drive the
strongest member banks from the Federal Reserve system.'
An editorial in the American Bankers Association Journal for
June 1933. at page 25, took the position that:
"It is entirely possible that the unwarranted burden
that the [deposit insurance provisions of the [Banking Act
of 1933) would place on good banks might threaten the
stability of the entire banking structure.
The President of the American Bankers Association stated that
the scheme is not "different in essential purpose from the guarantee
of deposit schemes that have been tried in eight western states and
invariably failed." and that "the Economic Policy Commission of the
American Bankers Association has just completed a partial restudy
of the history and results of the deposit guarantee plans and the
simple facts of these cases put then beyond the pale of sound
remedies for the banking problem. (See address published 56 Trust
Company 680 (June 1933)).
banking
Committee must still, in view of previous experience with state funds, be ex-
1911. At that time, the president of the association pointed out
that:
*It is almost inconceivable that bankers should have taken
thirty-seven years in coming to some solution satisfactory to then-
and it is to be hoped that the present convention will give
selves, of the action of the executive council in such a positive
its approval that the whole country will understand that the bankers have at
way last agreed with practical unanimity on the cause of the trouble and
the recedy.
The measure approved by the Association was however not acceptable to
the Congress and new measures were introduced by Carter Glass, Chairman
the House Banking and Finance Committee. The Class measure which
was the basis that
of of the Federal Reserve Act was disapproved by the American
Associat on apparently
in the stock of the Federal Reserve
Bankers investment for the reasons, Banks among was others, compulsory, the Federal
the individual banks had minority representation in
and Banks and no voice whatever in the selection of the Federal
Reserve Reserve Board. 1/ (See Proceedings American Bankers Association, 1913,
pages 64-65, 75)
in reporting on the Class 000 to the American Bankers' Association,
1/
its Currency Commission stated:
. ... The question is asked, Why, if the bankers approved such
provisions in the so-called Aldrich bill, do they oppose similar
provisions in the so-called Glass-Owen bill?' This is the reason:
Investment in the stock of the Central Reserve Associ-
the by
billMonetary
of the Commission
National was
ation "(a) created
if
permissive, not compulsory banks might invest in the same
they chose or this might decline the opportunity, in accordance
with the dictates of their business judgement.
PRECISION
TRADE MARK
MICROSTAT NG.U.S.PAT.OR
MICROFILM
ROLL NO
18
17
-6(
(d) General Philosophy of the American Bankers Association in
Connection with Legislation Involving Extension of Govern-
The American Bankers Association then presented certain amendments
to the Committee on Banking and Currency for the purpose of partially
restoring the features which it deemed desirable. (See Proceedings,
of the American Bankers Association, 1913, at pp. 112-13.
mental Credit or Governmental Expenditure.
The general attitude of the American Bankers Association with
respect to the extension of credit by the United States Government
is somewhat indicated by the "statement of A.B.A.'s position on
socialised credit."
The basic objections by the American Bankers Association were,
however, not net in the Federal Reserve Act as enacted.
Today the American Bankers Association apparently has on the whole
American Bankers Association has long been opposed to
of credit by the Government.
approved the Federal Reserve Act as relatively good legislation. See,
for example, statement of Mylander, representing the American Bankers
the sean
socialisation
*The making
Bythe
loans socialisation, by the
We
the extension
of credit of
and
Federal Government with costs
and
losses
out ofsupports
the Federal
or indirectly. Ourpaid
position
Association, in Hearings before Committee on Agriculture, 76th Cong.
3d Sens. on H.R. 8748 (1940) at P. likit.
farm
Treasury the stand either maintained directly by leading organizations AS they
oppose the control of agricultural credit by political forces.
#Tt is recognized that direct relief by the Government in
times of serious economic stress DAY involve some granting of
loans from public funds as temporary emergency expedient.
continued practice of making uneconomic loans from
without the adequate
However, public funds, the consideration socialized of the ability at the
o
of the borrower to repay and with the losses
expense of the taxpayers, violates the principles on which credit
rests and thereby endangers the foundation of & sound credit
structure." Resolution at the closing session of the wartine
service meeting, September 15, 1943)
Continuation of footnote y from P.4.
*(b) Under the terms of the bill of the National Monetary Commission, the bankers controlled the management of the Central Reserve
Association It follows that an investment in the stock of the
Association was an investment under their own control and management,
On the contrary, inventment in the stock of the Federal Reserve Banks
of the Glass-Owner bill is compulsory. The individual banks have a
minority representation in the management of these Federal Reserve
Banks and have no voice whatever in the selection of the Federal Reserve
Board, which dominates the Federal Reserve Banks, and the proposed
measure only provides that one of the seven members must have banking
experience.
"The fact that the bankers controlled the Central Reserve Associ-
ation was guarantee against political control, and it was equally A
guarantee against incompetent management-tr important respects wherein
the pending measure is lacking." (Proceedings, American Bankers Association, 1913, P. 75).
PRECISION
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20
II. Tactics And Interest or The American Bankers Association In
Connection with Legislation
(b) Indirect Opposition to Legislation
(a) Dilatory Tactice in Opposition to Legislation.
A1 times the Association has found it advisable to adopt a
Although the question of a guarantee of deposits had been dis-
more indirect approach:
cussed from time to time since 1906, the 1933 report of the Economic
"In the submission of this report the Legislative Com-
Policy Commission recommended
mittee in asking for its approval in very mild and polite
terms condenne postal savings banks, but it also recognises
"that the official representatives of this association
as inasmuch as two political parties have spoken for it, it
is unwise for this Convention to place itself on record in
offensive terms against that proposition if they seek to
accomplish anything with the legislative authorities in
be directed to urge upon the National Administration at
Washington the desirability of postponing by legislation or
otherwise the initiation of deposit insurance until an ade-
quate study and report can be made of the probable results
shaping the law, if we must have the law. (Proceedings, 1906,
that would follow the putting into effect . : the provisions
P. 292)
of the new banking law ... (Proceedings American Bankers
Association, 1933, P. 34).
and adopted & Resolution
, This report was favorably adopted. Likewise the Association
adopted the Report of the Committee on Resolutions which stated that:
The recommend to the National Administration at Washington
that it seek means for postponing the initiation of deposit
insurance :
to means should be found to postpone action in putting
into effect the proposed measures for deposit insurance .."
It also took the position that:
(Report of Postal Savings Bank Committee, Proceedings, 1910.)
The action taken by the Association in connection with the various
currency reforms furnishes the most striking illustration of its technique in delaying legislati action. The President of the Association
in his annual message to the convention in 1911 stated,
*It is almost inconceivable that bankers should have
taken thirty-seven years in coming to some solution satisfactory to themselves (Proceedings, 1911, P. 59-60).
The Association sought to minimise the need for the Banking Act
(Statement of the President, Hearings before a Subcoemittee
of the Committee on Banking and Currency U. S. Senate, 74th
Cong. 1st Sess., on S. 1715 and H.R. 7617, at 515),
"As it became more and more evident that an attempt would
be made to pass a postal savings bank bill your Committee urged
upon the various Clearing House Associations of the country
that they take action looking toward a delay of the matter."
the postponement of the first phase of the project is of the
first importance. (Proceedings, 1933, P. 36)
"It is not our opinion that an emergency exists which
makes it immediately necessary to have this legislation.
as unwise and hurtful." (Proceedings, 1908, P. 293)
be
reconsidered and ... reiterates its conviction that
of 1935
ness of the people, but deems the proposed plan of guaranteeing bank deposits and of establishing government savings banks
In 1910 the Postal Savings Coemittee reported as follows:
C
*the whole project for deposit insurance : should
"that the American Bankers Association welcomes all legislation that adds to the security and advancement of the busi-
The Bretton Woods proposals are not the first the Bankers Association commend in principle, but object to in methods and procedures.
It favored
*the alas and rest of the provisions of the Glass Bill,
but is opposed to the new insurance feature that has been
incorporated in it." (The American Banker, May 17, 1933, P. 1).
(c) Preference for Self-Regulation
R. 0. Page, Chairman, Committee on Mortgage Trusteeships of the
Trust Division of the American Banking Association, Bankere Trust
Company of New York, testifying at Hearings before the Subconsittee and
the Committee on Banking and Currency, Senate, 76th Congress, 1st Seas.
on S. 47% said:
PPRECISION
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MICROSTATA
REG. U.S.PAT. OFR
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0
10
(Bankers Magazine, Feb. 1898, P. 277). In 1908 it was resolved
C
"That the American Bankers Association condeans as unise and
"As I stated in FOR testimono on the bill in the previous
session of Congress, trust institutions do not welcome Federal
regulatory legislation of this type. The American Bankers
hurtful all propositions to establish Postal Savings Banks*,
(Proceedings, 1906, P. 304).
Association does not believe that the bill is necessary. It
would have preferred to continue its efforts to bring about a
satisfactory system of voluntary control, similar to that now
A spokemmen for the American Bankers Association stated with respect
to the Federal Reserve Act that "unle as the proposed regional reserve
system was radically changed, its failure in actual operation would be
in use in connection with personal trusts, and throughout the
committee's discussion of the subject I have so indicated to
as certain as that of central bank from a political point of view."
(American Banker, Sept. 6, 1913).
the Securities and Exchange Commission. ..
In the annual address of the First Vice-President of the American
Bankers Association (1913) at PP. 64-65, it was stated that:
A resolution passed in 1908 opposed any arbitrary plan looking to
the mutual guaranty of deposits:
"No are loath to believe that the integrity and the
patriotian of bankers are regarded with suspicion by our
.
reckless banking, and knowing further that such a law would weaken
lawakers or that it is believed that bankers are not to be
our banking system and jeopardise the interest of the people.
trusted in the management of their - business through which
connerce of the country
or that it is believed should
served the needs in of the the past; have that been banking so ably as
be more restricted than other classes of business, except
to supervision; or that the experience of bankers in their
chosen profession should not be of value in the preparation
of
a new law; or that in the pursuit of politics the best thought
of the country on so important a problem will not be given fair
consideration.
*It is hoped, then, that the final results obtained will
be
*believing it to be impractical, unacound, economics, placing
tool in the hands of the unscrupulous and inexperienced for
such as will permit bankers to retain their self-respect
('receeding 1908, P. 256).
Fifteen years later the Association was still of the same opinion:
The obvious injustice of penalising good banking for the
protection of bad banking, of hasarding the funds of sound
institutions to cover the losses of the unmound, must be clear
to any one who will give this matter impartial consideration.
It is entirely possible that the unwarranted burden which this
would place on good banks might threaten the stability of the
entire banking structure. It is an imprecticable scheme to
in the control of their ONE property and to transact business
salvage incompetency and failure in others that might imperil the
under conditions at least as favorable as is provided for
very existence of sound and well managed institutiona' . (State-
State institutions, through which so large a percentage of
ment of President American Bankers Association, The American Banker,
May 17, 1933, P. 1).
the business of the country is now satisfactorily handled.
. .. (Proceedings, 1913, PP. 64-65)
The American Bankers Association disapproved of the Class
Steagall bill, which became the Federal Reserve Act because it did not
embody the principle of self-regulations (Part above). Farm Credit
legislation has been disapproved because it involves the establishment,
continuance, or enlargement of federal credit facilities or the use
of boards upon which bankers are not fully represented. (See Hearings
before the Committee on Agriculture or H.R. 4384, 78th Cong. 2d Seas.
(1944)
(d) Predictions of Undesirable Results
is early as 1898 the Association predicted that the establishment
postal savings banks in this country would be productive of such
of evil and lead to gross extravagance on the part of the Government.
After the enactment of the Soldiers' and Sailors' Civil Relief Act,
the Association feared that lending institutions would be practically
helpless when a mortgager would become member of the armed forces.
(Proceedings, A.S.A. 1942, P. 169). However, the following year, it
was reported that less than one per cent of the total number of loans
outstanding were delinquent because of the privileges granted by the Act.
(Proceedings, A.B.A. 1943, P. 20).
PRECISION
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24
- 11 10A
(e) Protection and Awareness of Banking Interests
A past President of the American Bankers Association advocated
the following legislative policy:
*For the protection of the interests over which we are
custodians, it is one of the duties imposed upon us, which
should by no means be neglected, to defend ourselves and our
business from those who pander to the multitudes for selfish
ends, and who seek to away the people by vain-glorious oratory
in their appeals to the prejudices of the people, whose suffrage,
rather than whose welfare, they earnestly seek. (Proceedings,
1906, P. 42)
The Association has ever been on the alart to preserve and safeguard
the interests of the banking fraternity.
*From time to time it is to be expected that changes
will be made in the (Postal Savings Bank) law and it should
be the self-imposed task of this Section to see that these
changes are not iminical to the interests of its constituents;
it is well within our provinces - to have a hand in shaping
future legislation and in resisting as far as we MAY the en-
croachments of paternalism." (Report of Committee on Postal
Savings, Proceedings, 1914, P. 175).
We must at all times keep a watchful eye upon the constantly recurring efforts to amend the Postal Savings Law. We
should be broad enough to cooperate in making any changes for the
common good, but should carefully guard the interests we represent
from governmental encroachment. (Proceedings, 1915, P. 181).
A successful result was obtained in connection with
the Philippine Bill. . An finally passed it provides for
more autonomous Government of the Philippines, but the threatened
weakening of the security of American investments has been entirely
removed and the holders of Philippine bonds are safe. In procur-
ing this result our Committee were ithout doubt, very ably assisted
by the representatives of millions of dollars of Philippine Rail-
way bends, and by large business interests that would have suffered
by the termination of business relations existing between this
country and the Philippines (Report of the Committee on
Federal Legislation, Proceedings, 1916, P. 126).
In recent years, the American Bankers Association has expressed
the matter somewhat differently. Thus, for example, in the 1935 state-
nent of position on socialised credit and government subsidised credit, is
stated that
"The American Bankers Association will continue to present
its position on these matters [1.0. credit by governmental agencies
before appropriate administrative agencies of the Government and
before committees of Congress in an effort to secure the relief
which is not only reasonable and proper but which is as math in the
public interest and in the interest of farmers as it is in the
interest of chartered banking.
APRECISION
MICROSTATA
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SO. U.S.PAT. OFF MICROFILM
ROLL NO
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25
EXECUTIVE OFFICE OF THE PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
WAR REFUGEE BOARD
C
WAR REFUGEE BOARD
WASHINGTON 25. D.C.
INTER-OFFICE COMMUNICATION
DATE March 10, 1945
OFFICE OF THE
EXECUTIVE DIRECTOR
Secretary Morgenthau
TO
MAR 10 1945
Miss Hodel
FROM
General O'Dwyer has asked me to advise you concerning his
conference with Governor Lohman yesterday with respect to the
care in Switzerland of refugees who are able to reach Svitzerland from enemy territory.
The UNBRA representatives (who, in addition to Governor
Lehann. included Abe Feller, General Counsel and Fred Hoehler,
My dear Mr. Secretary:
I as pleased to send you herewith 8 copy
Director
be
wards of
assume resconsibility for their care while temporarily in Switzerregarded of Displaced 8.8 Persons) UNBRA and agreed that that UNREA these could refugees therefore may
of the report of the War Refugee Board for the week
land.
of February 26 to March 3, 1946.
Very truly yours,
However, because of political implications involved in an
offer by UNBRA to the Swime Government Governor Lehsen decided
that the matter would have to be raised at least informally with
0
of
/reliam Dayes
the British
and Runsian
members
the the Board UNRIJand
Political
expect to Committee. be edThis
will
be done
immediately
any
vised within a few days. If the Political Consittee agrees
UNBRA's offer will be to provide food and other relief supplies
O'Dwyer
Executive Director
in
for
10,000 refugees
Switzerland
by any of
the Switzerland,
following
methods:
(a) payment
for supplies
acquired
in
(b) shipment of supplies to Switzerland or (o) a guaranty to
replace supplies made available by the Swiss.
In addition to the foregoing, UNBRA her agreed to canvass
at once the possibility of setting up a snall reception center
The Honorsole,
in France for refugees who might have to be evacuated quickly
from Switzerland
The Secretary of the Treasury.
inclosure.
(
t
MPRECISION
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27
-2-
1
Report of the War Refugee Board
for the Week of February 26 to March 3. 1945
Representative McClelland recently discussed with the
chief Intercroes delegate from Berlin the current
situation of Shutshaefilinge and Jewish deportees in
Germany. From information which he obtained during this
discussion 11 appears 6066 the Germand are evacuating
SITUATION IN CONCENTRATION DAMPS--DISTRIUTION OF RELIEF PARCELS
Representative McClelland reported that . written request was
submitted to the President of the International Red Cross
urging that visite of its delegates to places of detention
of all categories of "Bhutzhseftlinge* be increased to the
greatest possible extent, that the number of its representatives
the insater of concentration and regrouping times
in two general areas, one with headquarters at LOS concent
tration case of near Resours, the other with
headquarters at the Daonau cass near Kunion. The Intergross
delegate reported that conditions of frightfu overgrowding
arrive in state of utter exhaus tion after days of traveling
on foot. Almost all of thes are in a very poor pay aicel
in Germany be augmented n.o subs tantially and as rapidly as
already exist in Sear enganne and Dachsu, where the internees
possible, and that ite delegaten be instructed to take every
advantage of the mounting confusio within Germany in order
to mitigate the lot of all civilian detainees and to dissuade
German officials from lost minute extremes.
An an indication of the present situation, the reply from
Intercross stressed that the Gernan Government DRE recently
informed it in writing that "for imperative reseone of national
detention where olien
places
and
visito
caupe
defense,
detainees (Shutzhnertlinge) are confined are unfortune tely at
the present moment not fensible. It YES stated that the
International Red Cross delegate in Berlin recently reported
being informed by heedquarters of the Germany security police
that permission to visit concentration craps or alien detainees
must in each particular instance be secured from Himmer
personally,
Five new delegates of Intercross were expected to leave for
it
vac
pointed
practical view
From
oan
it
arranged.
Germany within a few days, and others are to be cent BE BOOD
be
a
0.0
out that the question of transportation in and ill continue
to be the decisive problem, that access to campe by Intercross
delegates is dependent upon who ther they bring something with
then and whether they have gas and oan still manage to travel
on the roads by truck) and that any number of freight cars
made available to Intercross say be, and probably will be,
found uselene as a result of serial conbardments of Pail lines.
The President of Intercross indicated his awareness of the
urgency of the problem, stating that under the present
circumstanded thousands of prisoners and etainees can starve
within four days and that not moment in to be vested. He
expressed the view that by force of will and nerve Intercross
can do something to preserve the lives of these people if
furnished with gerte in indispensable means for execution of the
task, and that any results to be accured must be through largesaale methods of nation and sweeping decisions.
1
seasure8. He also the urgent need of trensports
tion eculoment expressing Live conviction the LAYS linable
=16 could be given to thousands of these persons if trucks
were available. It was his opinion that, in view of the
willingness of 33 official to cooperate with Intercross
general state of confusion and the recently depositphoted
of
to
C
confition because of prolonged uniernouriomment and mistreatnear, and a greet a my have died as a result of the evacuation
D
no difficulty will be encountered regarding permission to
distribute relief parcels on the 8001 in snaemoly caaps.
Representative McClelland advenced the suggestion that
deliveries sight be made to the Hanburg region from war
Refuge Board stocks of some 220,000 pargela at Gothenburg
and renewed his recommendation that arrangement on nade GO
provide trucks for delivery of garcel From Switzerland to
the Kunich area to relieve the oritical situation there.
Ka cabled our Smooney in London reconsending that, in
view of the extress urgency of extending adilional sid
to wasse isilated persons in @neay-sontrolled concentration
casos and in view of recent reports from the Internvional
Red Cross that more widespread distribution CAG DO effectuated
under the terms of the existing agreement, an additional
300,000 packages of three kilograms eman of foodstaffs
shipped fros this country of the war Refugen Board for
distribution by the Intern Lional Red Cross The
was requested 40 refer the satter urgently to the Relief
DE
Sub-Committee for Blookede authorize ion to proceed with
the progras at tax earliest possiols date.
PRECISION
TRADE
MARK
MICROSTATA
BGULPALO
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BOLL NO
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29
(
CARLS TO IGNISTION JOHNSON LIFE CLEAN, STOCKHOLD SWEDEN, FROM WAR REFUNDO BOARD
NORMEGIAN OPERATIONS
Please deliver the following to Fritz Hollander.
Committee. Postbox 7306, Stockholm, from Eurt Grosssan, World Congress Jewish Congress
Our Legation in Stookholm
cabled & report of the resoue
relief operation conducted in Norway from Sweden under
and
the supervis ion of the Board during January. Through
licensed and other channels, 35,000 kilograms of food
2,200 kilograms of clothing 1,460 pairs of shoes, and &
considerable quantity of additional clothing and other
APTICLES were sent into Norway. In the name period, an
estimated 1,100 refugees were brought to Sweder over the
evacuation routes established in connection with these
operations. Representstive Olsen strongly recommended
that arrangements be made to continue situation
these operation
in Norway
in view of the increasingly critical
with more and more persons being forced into hiding because
they are hunted by the Gestapo.
COOTI Findly have foodparcels forwarded immediately follow
ing Bercenbelown innates ternstain Mrs. Henriette: Biologlowekt,
Outtatain
solf,
wife and child; Cohn Dr. Hilda: Benedict (orphana
(case Sonja, mother, father Bloch, Dr.: Deseau Dr. barrack):
Colde) child: Drunt Abrahan, Margareths (nee Schelvis), Sam, Arnold, wife
Milly (nee YAD Floersheis Else (nee Moeller)
Birechfeldt, Zort, Betty (net Zann), Sholler, Michael
Simon.
Lowemberg
Lucie,
Schaunberg,
Ernet
Derteud,
Strassburger)
Berta Larry
Leonard
Lion, Mrs. Bestrice
Aribert,
Tomip (nee
Dertrude.
Issac, Clara, Idrian, Joses: van Tign, Benjamin, Behja Schenkolewnloy, (nee Cros-
lineki) de Vries, Aaron, Neina (see Spier). UNQUOTE
THIS IS WELL STOCKHOEN CARLE NO. 324
EVACUATIONS FROM YUGOSLAVIA
Ambassador Kirk cabled us from Italy of the arrival at
from The physical the
Bari on February 28 of 101 Jewish refugees who had been
of 107
remainder evacuated of the Topusko.
groupwhose
evacuation condition was of
recommended was such that they could not be removed
These for are now in the Split area where they are
receiving proper attention.
LATIN-AVERICAN PASSPORT HOLDERS DEPORTED FROM VITTEL
Our Embassy in Nadrid reported that, following submission
concerning
removed from the internment cang
persons of additional information the whereabout at Vittel, it of the of the
Spanish Ministry of Foreign Affairs has advised
transmission of the data in question to the Spanish
Ambassador in Berlin with ar indication of the interest
of the Spanish Government in this matter.
brilean
Willian O'Dwyer
1,30 P.M.
Executive Director
March 10, 1945
a
0
PRECISION
TRADE MARE
MICROSTATA
MICROFILM
ROLL NO.
31
CARLE TO MARKISON AND MOCIALLAND, BORN, PHON WILLIAM OFDINER TAX REFUCE BCARD
Reference Department's No. 019 of February 23, 1945.
Since my trip to Switcerland has been delayed for the time being, : have
decided to send Herbert Kataki to Switserland temporarily to assist Mr.
MeClelland in developing program approved by Board members at the meeting
on February 20, Mr. Kataki has just returned from Ankara, Tarkey, where*
he was Special Representative of the Board, and 10 expected to leave United
States for Switzerland very shortly.
,
THIS IS WITH CARLS NO. 440
1.30 p.m.
March 10, 1945
TRADE MARK
MICROFILM
MICROSTAT
ROLL NO
32
LO-502
1
Distribution of true
reading only by special
arrangement. (SECRET #)
Paris
Dated March 10, 1945
Rec'd 10:00 D.D., 11th
Secretary of State
Washington.
1152, March 10, 10 P.B.
Following is . close peraphrase of . message
accepted from Loon liabowitaki, World Jenish Congress,
for transmission to the Department for the latter's
decision regarding orward conveyance in whole
or in part to to Bar Refuree Board for Doctors ise
and Golman, 1834, Broadway, New York City.
Since arrival Deneva, Endeavored obtain immediate
direct talks between appropriate German authorities,
Swiss Government and international led Cross regarding
grand scale release and restriction of civilian
detainees and feeding action until their release.
I
PRECISION
was received by Ven Steiger, President of the Confeder-
ation, and Inem Markhardt two times. I conferred
with miserous personalities and brought about simultaneous
representations to the various National Red Cross
delegations. : can advise you in confidence that
Barkhardt, despite his appointment as Swiss Minister
to France, 14 proceeding BOOD to confer with
is protecting nower Swiss Derl, 10 sinul=
taneously asking for interview with Manler. I have
assurances of Purkhardt and Steiger that the number
of refugees admitted into Switserland will not be
limited Demany has agreed in principle, I understand,
to repatriate unmoloyed civilian populations according
to nationalities and that first nationality has
already been agreed upon. Markhardt expects, with
regard to Deman Jewn, to net then out as International
Red Cross protegnes. It is at Jueback that civilians
in northern arean are to be concentrated and the sending
of ship requested of the Imidiah Red Cross. Prom
the southern regions evacuation is expected to be done
partly by Allied trucks on returning from carrying
food to WAY prisoners. SHAEF unfortunately prohibits
using Brucks for carrying food to other than WAT
princess contact of Mar Refugee Board
and our european offices is required on this situation.
Before releasing this consage see secret ons
Paris January 20, 1945. Germany political report from
Switserland No. 10,398 S/8. If not immediately available
contract Hauck, office of Strategie Services, Washington.
CAPPERY
PRECISION
MICROFILM
TRADE MARK
ROLL NO.
33
1/0K
Instribution of true
reading only by special
March 10, 1945
7 p.m.
arrangement. (SECURIT 1)
AMERICATION
NEW
1014
The following to Harrison and McClelland from
O'Dryer is REP 440.
Reference Department's No. 819 of February 23,
1945.
Since my trip to Switzerland has been delayed
for the time being, I have decided to send Hertert
Kataki to Switzerland temporarily to assist Mr.
MeClelland in developing program approved by Board
newbers at the meeting on February 20. Mr. Cataki
has just returned from Ankara, Turbay, where he was
Special Representative of the Board, and is expected
to leave United States for Switserland very shortly.
order
ACTING
(OHD)
PRECISION
TRADE MARK
MICROFILM
MICROSTATA
ROLL NO.
34
CARLIC TO AUROLICAN KINASSY, PARTS, FROM THIS MAP REFUTES BOARD
Please deliver the following message to Joseph Schwarts
from 1. A. Leaviss of Aerican Jewish Joint Distribution Committee
QUOTE VITHERS AVAITABLE MAY YEART TO ASSIGNMENT.
HOT PRESIDENT PCRT ANY PARTICULARS PLACE BUT 10
ADVISED in THAT ASSIGNMENTS COMPLETELY OTHEN TOUM JUIISCARL PCR MAT COUNTRY or COUNTRIES is SHOULD
APPLY DICTION. you PASSPORT VALIDATIONS TN IND SUFFICILITY
SOCIPING VIRAS VALIDATIONS. STATE PRINTING POST AND
is CONCE COMPLINTLY THO 3 CST SUITAND ASSIGNATION FOR NUM
THIS RELEASING MAROLD VOR FRANCH SUITIONLAND on
POSTS DEPOSIT Your MANDS. PLANT LEAVING FOR ALOIERS
NEXT DAYS. SLOAKT ANAITING PRODUCT VISA PLEASE SXPHDIT%
JOBSPO TAXI ADD PORTYBIX HAKE FAVORABIE
IMPROSSION BUT 10 SOCIAL WORK EXPARTMENT as
CONTACTS OTHER THAN USUAL FEDERATION AND JA
PARTIST PATION COUPATORS. READY VOLUNTEER SINVICE case
YEAR ADVISS WATER YOU CAP US! SUCH PERSONAL
0
4:40 P.B.
March 10, 1945
PRECISION TRADE MARK MICROSTATIUULMON MICROFILM BOLL NO.
36
35
CABER TO AGRICAN LISHON, FRO.: THE WAR ReFUGER BOARD
CABILE TO AMERICAN LEGATION, Bear, you MOCLELLAND, FROM THE HAJI SOULD
Please deliver the followtan deconite to Nerold Trobe from
Please deliver the following access to Saly layer fros the de Leavitt
1.
of American Jewish Joint Distribution Countries
A. Lewith of American Jewish Joint Distribution Consittees
oppro BASIS SCHAITS APPROVED APPROPRIATIONS
yo ARCE OIL BIOTAR Previous GRANTS PRAICE 200.000
VOLUD 200,000 VIA STATE $900.000 STOP
QUOTE 64 NATURALLY VAR ANXIOUS Didne STATE 12/01/20 the UDL TO
COLLECTION GRAND VISA REGULAR APPROPRIATIONS TOTAL
THIS AND WILL HELP MAXIMIS KATHET THIS Process. UNQUOTE
GILLEY APPROVED 1944 ADVISE RESWIR. INORDER APPLY
JUSCUL MAXING and JOS. ASSIST YOU I FULL TIM
DR 200,000 FINST 5 GANCELLED $360,000
LICENSE HOUSE JAINAND FEBRUARY APPROPALATIONS
the RESULTURE HAVE OH INDIVIDUAL PLEASE ADVISE.
ABSUA YOU LINDER CURRENTLY ADVISED. UNQUOTE
THIS IS X Bill CANED NO. AND
was IS - CARL 30.155
3:30 m.
March 10. 1945
3:30 To
March 10, 1945
REG: 3/8/45
BBH: 3/10/45
I
O
PRECISION
MARK
MICROSTATA
MICROFILM
BOLL NO.
37
38
CABLE TO AMBASSADOR STEINHARDS, ARKARA, FOR MRS. MENDERSON, FROM
WAR REPUGER BOARD
CASTE to AMERICAN LEGATION, DERA, FOR MOCLELLAID, FROM VA REFUGE BOARD
Hrs. Menderact is ordered to return to the United States
Please deliver the following measure to Issac Sterabuch, Montroux,
from the Vand inhatsala Emerging Committeer
QUOTE DISCUSSED FATTER WITH JOINT DISTRIBUTION
DRY COUSENTED INVOICE IVALIZATION YOUR DYORS USO
JEWS TO SITYMALUD. THAT PROVISION STR S. HAYER. UNQUOTE
leaving Turkey by the and of March,
The Zubasay is authorised to arrange transportation by air
for Mrs. Henderson from Ankara to the United States on a reinburanble basis. Please nake necessary ticket arrangements at
Caire Legation to facilitate return, Daire also to be reinbursed.
THIS IS HOUR BERN CABLE NO. LL2
THIS IS WR ANKARA CARLE NO. 145
3:30 p. m.
March 10. 1945
RBH: 3/9/45
2:00 p.m.
March 10, 1940
6
39
CABLE TO LEGATION, you MOGLALLAND, FROW MAR REFTGER BOARD
Please deliver the following masse to Leon Labowitaki, 37 Cust
Wilmon, Geneva, from Eurt Groonmans
QUOTE ARRIVALS STARVATION DANGER FOR
DEATHS FOOD PARCELS ESSENTIAL EXISTANCE
THOUGH MAY REFORTED not 20 ARRIVE. BUGGESTED IBC MASHINGTON
SECURE DELIVERY GUARANTE GARDEN unquove
THIS IS - Bank CABLE NO. 4444
4:40 P. s.
March 10, 1945
RRH: 3/8/45
TRECISION
MICROSTAT
TRADE MARK
MICROFILM
ROLL NO.
40
41
(released for distribution March 14, 1945)
3
PARAPHORES OF TELEGRAM RECEIVED
FROM:
CARLS to AMERICAN LIBBON, FACU 110 WAR HEFUGES DONID
American Legation, Barn
TO:
Please deliver the following nessare to Harold Trebe from
Secretary of State, Washington
DATED:
March 10, 1945
NUMBER:
1534
. A. Leavist of American Jewish Joint Distribution Committees
ING BALANCE PURCHASE 1010 261 Received L101981681357 UTILIZE
ACCOUNTINGLY $16,000 4762 $9.000. LICENSE MEDICAL STYLIES POLICIE
CONFIDENTIAL
AUTHORIZED MICUOLE
PLOVAL TOTALING know PURCHASED PROVIDES SMALL NATURAL HAVE SUPPLIES A
SALVADORAS INTERESTS GERMANY.
The Department did not instruct the Legation that all Salvadoran
THIS IS 40 Like CARD 20, 156
passports which the Consulate issued in question should be forwarded to
the Government of falvador for its examination nor was such request made
to the Swiss Foreign office.
In corrective notice dated March 9, it 10 stated by the Foreign
office that it is possible the Foreign office misinterpreted as request
Legation's offer to transmit Salvadoran documents for verification to
the Government of Salvador. In addition, the Foreign office says this
misinterpretation likely since is was understood that the Legation could
only act as channel of communication and could not itself verify these
documents.
For completion file, Foreign office notice will be forwarded in
next pouch.
4:40 ".
March 10, 1945
HARRISON
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43
CORRECTION OF
CANED to KAULIBO AND CHARAN you HOURD
PARAPERASE OF TELESTAN RECEIVED
its your 1354. March 2. here informs us that correspondents
FROM:
American Enbassy, London
TO:
Secretary of State, Washington
DATED:
March 7, 1945
NUMBER:
2353
in this country are addressing their mil to the dategory 7 (repeat 2)
group ezchangees at Philippeville is follows:
n/a Jean d'Are Refuree Camp
Philippeville
Algiers, Algeria
Lim: of those exchangeen with actually arrived at Philippeville will reach
you via air/rus.
This message was distributed to you March 8 as No. 2354.
Please note the correct number is 2353 and change your copies accordingly.
new IS to CATE 10. 446
DC/L:GPI
3-10-45
5100 F.M.
March 10, 1945
2/7/45
0
45
44
CABLE TO AUGHLICA LIGATION again, FOR :COLELLUD, FROM THE HAR BOARD
CARTE to AUTHORIZED LEGATION, STOCKINLY, PHO ANY RECOVER 10.30
Please deliver the following to little) Stands, 200 7306.
Stookhola, from hart 1. Opcements
ARTIVALS
DAIRY de STRIVATION or
NET WAY 758 ADVISE YOU TAX ADTIQU TO
SUN DELIVER in ADDITIONAL STOP LOCAL names YOU
ILIPEAT SMOLE VARILLA ADGRESS to BAID. SHOULD
Please deliver the following message to Sinn lee c/o Relico, 1 Hus
du ithone, Dentro, from Abouther Silberecheis, World Jewish Contress
quow THY secure. PROTECTIVE DOCUMENTS FOR VOLLOWING PERSONS ALBERT
LITLINGER 23 MAY 1662 WIFE June KTILIMIR as UNIFELIER 12
FERRUARY 1875 NEW YORK JOS STOP ILABA HORONITE 152
26 APRIL 1882 IN U GRAVIA ARTHER OUSTAY
HORONITE 5 UPIL 1868 BIELITE SELESTA NOT SENTANIN
VAI TINE and 17 JUNE 1.80 HAULERNIJK HIFL EATHE VAN TIJU 10km
GOLINSKI 29 JADUARY 1881 GROUND HOLLAND NOW STOP
CLATRI 27 APRIL 1906 MARTIN MARKER
17 MARCH 1928 JACOUS 19 AUGUST 1929 RALFY PEAL.
9 FIZBUARY 1931 AUSTENDAT DON STOP DOCTOR LEON
TOTAL 1 OCTOBER 1883 THE HORA POLAT no. was 14 JANUARY 1887 Addition
cas ID use dists 10. 325
DAUGHTER POLAN 24 MAY 1922 NOW STOP
DAVID LEVISSOW WIFE JATA LEVISSOUT FOUR CHILDRON AGES FIVE
SAVE LIGHT 05 ALL ou SIZES DEAT I SON authorized
STOP CHIEFRANBI - LOSSS FILIDIOUS APILIL 1044 BUDAEST HUNDARY SON
ARDING PRINDIGED 7 OCTOBILE 1919 SUN
STOP BEINA SPIR DEVITES 35 AAHO DEVRIES 35 HANDLEW JOB
Sill BETTER HLTAS 72 PROVESSOR 4. NATIONAL 53 JACKBA
MATERIALS HIS 17 Jaccous ANGARD SIXTER FOURTEEN
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mission STOP SPICE 33 SAY 1873 2702 206821 EDUARD ADOLE
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1907 CHILDREN WWW 1 JUDEI 1927 AND 24MAY
1929 AND 5 DECEASED 1931 AUSTRICA ALL suss. 9
STOP EDUARD SPIRIT 17 JANUARY 19a EUPTHI GURA SADA 37.
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LOLO ALL POLICITY and on BARGER
STOP PRODUCTS SPIER 12 PARCH 1907 OR
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March 10. 1945
TIMA Fast
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RRH: 3/9/45
POWER 25 OCTOBER 1899 WATER 274 24 APRIL
1926 510 SECURITY M will 1877 LICENSE LEA OLL the
JACOB AND AREAN SPICE ALL lost STOP Halso
SLOC 472 BELLA LLO OLOA AGES FIFTING CHIRTY AND
PRECISION
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46
CARD TO PARIS, you 25% TAX BOLD
i'm 2 of Cable to Ham liec, Deners, from Danshea Bilberschein, world
Jewish Contress:
Please deliver the falledian measure to Joseph Schwaris
QUOTE BROCK arom HUNDARY
free if to Lesvice of American Jewish Joins Distribution Committee:
RESPECTIVELY DOCTOR ATRA LOR WIFE LEA CHILDREN HOUSE nou
YOURTHOUS TORTEIVE YOUR
AUT YOUR it
QUOTE RECEIPT DETAILS it DOCTORD SUGUT
GYORK BUDAPLATI
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excluded 200500 apid 780 OTHERT STATE
STO DOKTON DRYSO SIGNATURE 10 WIFE with GHILD you STUF G.
adidas 8702 vida
JESSO 13 DECIDEBLE 36 1908 100 JULY 11 1933 31 1900 JAINING ISAAC 504
28 MARCH 1927 not ALL BOOK 21
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1830 HOLLAND BORN you STOP 12"
SMIL state PRISID or DR 10% STATE and 107
LATTING TOTAL DOCUMENTS ORIGIN none MICUDE
THIS 15 and GAULA NO. us
3:30 D. the
March to. 1945
4:40 D. m.
March 10, 1945
anita 1/9/45
RBH: 3/9/45
0
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CARIE to FARS, YRO 2500 TAX DOLID
49
Please deliver the following nettage to Jonesh Schueris froz in is
1
Leavits of American Jenish Jaint Distribution Consitteer
CARDE to AMERICAN CONSULATE GENERAL FROM ful BOARD
QUOTE if FOLLOWED YOUR DISTRICTIONS PAYMENT $300,000 PADORA
RESERVE BANK ACCOUNT HATTAIL a RELATION AND
NATIONAL a Do JULYS CAME and IDEAIVED If
Please deliver the Collector assignment to the Joint Distribution
COMIT...
Consittee
in Jermalen from . in Leavitt of American Jewish Joint Distribue
Lion Consitteer
AUDAS REPRESENTATION YOLD CARD LISBO PLEASE ANVISE D STATISTANO
INCLUDED LIMITATION YOURS GAUGIL 45 AND POSTAL
000.01L IF SUGGEST YOU
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adidas
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our DOCTOR
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POR LOOK AND over GIVLAS FORAND.
3:30 D. n.
March 10. 1945
BUR 3/1/45
3:30 P. 5.
March 10, 1945
C
RBH 3/8/L5
0
PRECISION TRADE MARK MICROSTATA MICROFILM
ROLL NO.
50
51
CABLE TO AMERICAN ZUBASST, PARIS, FROM no a adidas BOARD
CARES TO AMOUNT LIGHTION BEEN you FROM W Reartique BOARD
Jewish
deliver the following neesage to Jonesh Seimarts Committees from
Geringd Congress liemer. Please 37 deliver Class Wilson, the following Geneva, DESSARD from Furt to Leng Grossman lubowitald of World and
Leaviss
.... Please
of American Jewish Joint Distribution
570 ARDS good AND our AROU FIND inconclusive OUT Immunization user HAR FLORA AND US: AND LUST adidas
opon UNIVERSAL is PREVIOUS HAS AVAILABLE SULSACTION ADDITIONAL you = LICENSE TELICA LOCATES expires FANNOS
SAID II MARCH SASIS QUESTIONAL SHALL 125.
UNIVERSITY
JOLL 3/L/LT PAID Fao LITTIER assets mays 10 LARE was SOLIDURE 34.35 STUDIA and 7/7/1882 S/OP INVESTIGATE DEPORTED CARE
JETS 10. STOP 1944 YOU FROM COLLECT DRAIT CASE submitted
-02 RECEIVED SERVIVOR DUE Human LIS: 07502 SURVIVORS COUNTRIES PROVIDED DEPAILED WONDERS LONG 400. LINE my CHOCOLATE STILL
WIS IS ATE Balls CARES SO 443
4140 n. m.
March 10, 1945
March 10. 1945
I
(
3201 3/10/45
RBH: 3/9/45
COPY NO
SECRET
NOT TO BE RE TRANSLITTED
52
4
OPTEL No 29
Information received up to 10 A.L. 10th Larch 1945.
1. NAVAL
Home Waters 9th. An enemy force about 100 strong in landing
craft carried out a raid on GRANVI LLE (West of
CHERBOURO Peninsula). A U.S. patrol caft which intercepted two enemy landing craft was damaged and beached. After setting on fire
sore coastors in the harbour and demolishing cranes enemy force
withdren on arrival Allied infantry roinforcuments. Withdrawal
took place before additional patrol vessols could reach area and
soro Allicd priscnors yoro taken by oncey forces.
9th/10th. (Fight) Alliod patrols engaged E-Boats off
DUTCH Coust but results not yet received.
2. LILITARY
South Central Soctor: Rapid drives by U.S.
armoured formations have split up largo cnemy
jocket Leat COBLEFZ. Latest reports indicate on column driping
up most bank of rivor tc cut off remaining onong this area, and
state mony thousands trisoners and much equipment taken. Further
north REI AGEN bridgehead extend.d and new fire miles -ide and three
niles doop, while or stor part of BOND is in our hands.
Northern Suctork U.K. and Canadian troops have closed up to
Western Front
road after bitter fighting and latter tron nor
clear of undery.
Eastern front Central Sector: On right flank good progress
made in North 1: direction there STOLP.
powerful Garcen dufungi stronghold, captur d 48 also STOLFLUEDE
on coast. Fighting continues in direction STETTIN which aimed to
clear once from Sastorn bank River ODER.
Southern Sector: Germans continue to attack with largo tank
forces N.E. LAKE BALATON in attempt to break through tc DANUBE and
Aussiand report 70 Carran tanks destroyed.
Burps Central Sector: Heavy fighting continuos Northern
outskirts LANDALAY.
Forthorn Soctor: Chinese trocts advancing on broad front
have occupied NALHSAN (40 miles test LASHIO).
3 ATF OPERATIONS
Extent Front 8th/9th. (Night) .ircraft 762, destate 4
(four missing). 312 shippards HALBURG (&37 tons)
274 KALSEL (1136 tens) 39 BERLIN, 37 summining, 120 borber support
and other missions. Halifaxes attacked shipping SEAGEREAK, damaging
destroyer and 3,000 ton ship.
9th. Encorted Luncustors 157 (one hissing) dropped 793 tons
through cloud on Benzol plant in RUHK. Escorted U.S. Leavy bombors
1011 (9 outstanding) dropped 2044 tons targets vest and F.S. GLANANY
including six railway contr # (1935 tona with good results.
SHAEF (Air) Betber 715 (tro missing) dropped 1126 tens railway
contros and supply deports cast of RHINE, while 2779 fighter boxborn
and fightors (12 missing) cigrated battle front destroying to
\oconotives, 1000 road and rail vehicles and inflicting enemy
essubIties in combat 22:3:10. 9th/10th actbor Commund despatched
155 aircraft without loss including 92 to Borlin.
8th. Of 846 aircraft dispatched 553 heavy boubers
drepped 1074 tons targy to HUKGAF ITALY
including railway centros HEGYSHALON (17 files south
-Ith Food results Tactical airgrat 756 attacked communicatic
and other targots KC TH ITALY and SUCCELAVIA.
Burra 7th. Allise heavy & codius borbers 85. dropped 260 tons
Fullrays and jottics SOUTH BUFIA.
Sockets 9th. three incidents. 9th/10th. five incidents.
DEPARTMENT
53
INCOMING
OF
DIVISION OF
CENTRAL SERVICES
TELEGRAPH SECTION
TELEGRAM
STATE
o
54
o
-2-1401, March 11, 0 Galla from Chungking
largely COED not have on hand at rate of 350,000
CC-606
This toltgrom must be
persphrased before bring
Chuncking
OUNDED per month or United States $105,000,000 per
Dated March 11, 1915
ennum, receipts from gold sales, including compulsory
other then a Government
REC'D 2:00 P.M., 12th
purchases of treasury certificates, total borely
25% of current monthly deficit. And this deficit is
not going to diminish during course of year. There.
fore, if Government wishes to maintain in current
communicated to anyone
Agency. (SECRET 0)
Fill
of
SEE
Secretary of State,
Washington.
MAR 1945
www
LIAISON OFFICE
CAR
ratio of receipts from gold salta to monthly deficit
it will either have to increase price of cold or in-
401, March 11, 9 Call.
TO THE SECRETARY OF TREASURY FROM ADIER (FOR
CREASE gold sales or both.
TREASURY ONLY.)
Three. The reckless Government conduct of its
Present gold situation.
One. Government is now relying on sales of 2010
O
finance".
and six month gold deposits 0.0 main source of
(A) It has been and is selling gold at an
absurdly uneconomic price. The official pretex that
revenue. Receipts free such soles in January and
February were ON 14 billion (plus 20% of that sun from
price cannot be reised without on adequate supply on
compulsory purchases of three year treasury certificates
hand does not hold water. While official prior of Gold
has been maintained block market prior has risen to
by cold purchasers), which is substantially in EXCESS of
receipts from taxation in BOTK period. It will be
noted that less than 25% of receipts from cold sales
CN dollars 39,500 per ounce: also witness the heavy
purchase of six month cold deposits at one of February
WE T'S from spot solea and that by for the lerger part
due to rumor that official price was to be reised at
were from six month cold deposits. Central Bank's
beginning of March. official claim that reising price
of gold would push up general prices still further
short position on gold is now approximately one
million ouncea.
cannot be taken seriously ct c time when prices are
Two. While Government is now selling cold it
C
cold sales policy cen only be (escribed 08 "frenzied
0
lorgely
skyrocketing
55
-3-4401, March 11, 9 Call. from Chungking
akyrocketing in any case.
(B) It is dissipating China's fortign Exchange
assets, which she will badly need at wor's end, at
current rate of United States $150,000,000 per annun
without significantly effecting economic situation.
In fact, since infiction has now entered snowboll
phase, future solts of cold at current rate will
have even smaller effects 0.8 broke on infiction.
(c) Part of the gold is finding its way into
occupied China.
ATCHESON
TRADE MARK
MI
56
COPY NO.
4
NOT TO BE RETRANSMITTED
SECRET
OPTEL NO. 80
Inf rostion received up to 10 with 11th March, 1945
EaVoL. 1. Home Waters. 10th in trawler was torpedced and sunk by
U-Bust off Mentrose.
2. North Atlantic. 10th. Admirelty Floating dack which
was being t was to Gibroltor fountered in Bay of Biscay
after persistent foul wonther.
MILIT.RY 3. Hustern Front. (Suth Central Sector) 3rd and 1st U.S.
araies have Scined up N.W. C blenz and are 03 sing up to
bank f Rhine batween Neuwied and Sinzig. Further north,
Renagen bridgches strongthone! and extended against
stiffoning opposition.
(North Control Suctor.) 9th U.S. Army new within 3 miles
Wesel.
(N rthern sector) German resistance opp site Canadian
First Army rep rted rapidly decreasing.
4. Eastern_Fr.nt. (Central Sector) Further large advances
nade Zolbic weat and N.W. f Danzi which town
als being preached from S... and S.E. Whither west,
small advance date towards Stettin fr to S.E. while further
south, Garsans claim t. have checked Russian attacks
against narrowed bridgehood at Austrin.
(Suthern Suct =). In Northern Hungary Russians admit
slight German gains N.E. Lake Bolaton.
5. Burns, (Central Sector) Henvy fighting continues northern
utskirts Kanislay, while ur troops also in contact with
AIR.
enemy 10 tiles N.E. of city.
6. Western Front. 11th. Escorted Lane stors 133 dropped
755 tons through cloud on synthetic oil plant Buer
(N.L. Eason) with un abserved results.
Secorted U.S. heavy bombers 1,332 (outstanding fighters 4)
dropped 2,875 tons by Pathfinder technique on eleven
railway contros and two railway visducts North and East
of Ruhr including Fortsund (1,082 tons).
SHAEF(Air)- Bumbers 438 dropped 580 tons railway centres
east of Rhine and mainly Central Sector, while fighters
and fighter bombers 1,132 (missing 6) operated bittle
area destroying 30 100 activos and 160 M.T.
S itfires 63 dropped 21 tons on two rocket sites and
communic tions in Hague area.
10/11th/Night). B nber Command despatched aircraft 112
(without loss) including 60 Mosquitoes Berlin.
7. Mediterranean Front. 5th. Escorted henvy bombers 371
(missing b) dropped 758 tons by Pathfinder technicue on five
railway targets Austrin and Yugoslavis including Graz(630
tons) while tactical aircraft 932 (missing 4) attacked
communications Brenner route and Northern Italy.
PRECISION
MI
57
e
b. Burma. 8th. Liberators, 12 destroyed two bridges Burna/Siam
railway south of Moulnein.
HOME_SECURITY (Up to 7 Arth 11th)
9. Rockuts. 9th one further incident reported for period
already covered.
10th two incidents reported.
10th/11th (night). One incident reported.
0
59
LEGATION OF THE
UNITED STATES OF AMERICA
848/ICO/MET
Stockholm, Sweden
March 12, 1945
Mrs. Klotz - 3400
C
58
Brigadier General William O'Dwyer
Executive Director
War Refugee Board
Washington, D. 0.
The attached translation
of a Swedish newspaper
article on Wallenberg's
activities in Hungary may
be of interest to Secretary
Morgenthau.
Dear General O'Dwyer:
In accordance with our recent cable there is enclosed
a translation of the article which appeared in Dagene
F. Hodel
Nyheter regarding the activities of the Swedish representstive in Budapeat in behalf of the Jews.
Sincerely yours,
Iver C. Olsen
Iver C. Olsen
Special Attache for
War Refugee Board
Attachment - 1
PRECISION
TRADE
MARK
REG. U.S.PAT. OFF
MICROFILM
ROLL N
61
-2(
SOURCE:
Dagens Nyheter, March 6, 1945.
Swedish Achievements in Hungary
Race with Jew Train to the Border.
Many thousand Jews and other preys of persecution in Budapest
say to this day: "The Jews in Warsam defended themselves.
the Danish Jews were protected by King Christian the Dutch
Jews were protected by the population itself, but we have been
saved by the Stredes.
He who tells us this is a Hungarian who arrived in
Stockholm some weeks ago after n fantastic journey through
Germany; he can not find the words to express his gratitude
for the spirit of self-sacrifice the indefatigablenca and
the heroic courage shown by the entire Swedish Logation in
Budapest and private Swedes in that city, when the persecutions
were at their worst. There are two names which the Hungarians
put at the top of the list: the Head of the Legation' Section
B. Attache Reoul Wallenberg, and the Swedish *Lector' at the
Budspeat University, Waldemar Langlet. The detailed description
he gives of their achievements justifies this reputation.
It may be recalled that Admiral Horthy at one time. after
personal letter from King Gustav, agreed that Swedish
the
protective passports might be issued for some thousand
Hungarian Jews, who were connected with Sweden through relatives
or business connections.
Our source tells us that however extensive the perseouof Jews was under the Scotai Government, there nevertheless
occurred no executions in Budspent itself, no deportations, and
those who were in possession of Swedish passports were not
effected by any measures. The real strocities started when
into power, then protective passports did not
tion
Scalney The came Swedish Legation's Section B. however, immediately
help. started action to protect the legal rights but net with hard
resistance. One night the Minister of Internal Affairs
personally announced on the air that protective passports no
longer were valid, news which caused a tremendous panic among
all those who had papers of this type.
Raoul Wallenberg, however, took the bull by the horns: he
to Scalasy personally and WILD net with the question why
went the Swedes interested in Hungarian Jews. Attache Wallenwere
berg's answer because a sermon on humanity and after one hour's
conference he returned with Szalasy's written assurance that
the Swedish protective passports were valid and that the
authorities were to respect them.
Swedish Houses Were Given Extraterritorial Rights.
Nothing was impossible for Wallenberg. During the worst
period, anonymous letters in which he was threatened with
death, were sent to him, stones were thrown at his car, and
everything was done to try to prevent him from seeing his
proteges: armed gansters were sent out to pursue him, but
nothing could make his give up.
He succeeded in making the Hungarian Ministry of Foreign
Affairs recognize the Hungarinn Jews who had Swedish protective
passports as foreign citizens with rights as such. Moreover
Wallenberg succeeded in arranging that these Jews, almost
5,000
were
houses
These
Swediah
Houses.
80-called
billeted
were
in
extraterritorial rights and enjoyed every possible protection. None of these Jews had to carry the obligatory David
Star. All this happened our source continues in a city
where the Gestapo and the "Pilkors Men* behaved with the utmost brutality. In the middle of the Racial Wallenberg
would fetch people from the prisons who had been arrested
despite their protective passports, in the darkest of nights
he would drive to the Swedish Houses with medicines or help
for the sick. For there WBS one restriction: Jews living in
given
the Swedish House were not allowed to leave them. Everything
they needed had to be sent to them, and the Legation was
indefatigable in this activity.
"None Lenves This Place Ag Long As I Live."
Once Attache Wallenberg received a message that the
Hungerian Military Authorities intended to take some of the
inhabitants of the Swedish Houses for labor service. He
immediately went to the Military Staff but the lengthy
negotiations seemed futile. The town's Commandant said: "If your
proteges do not report, they will be considered deserters and
hung immediately.
Wallenberg then had to return to the "Swedish Quarter"
without having achieved anything. There he was set with the
news that one patrol already had arrived to fetch the men who
could work. Wallenberg reproached his people for having let
anyone intrude on extraterritorial premises. He was told that
the patrol was armed, but this did not prevent him from going up
PRECISION
TRADE
MARK
MICROFILM
MICROSTAT
ROLL NO.
63
-3to the leader of the patrol and shouting so that the whole
quarter could hear it:
"This is Swedish territory! You have nothing to do
Wallenberg did not hesitate, he at once went to Szalasy.
The letter said he know nothing about the provocation, and the
result was that the leaflets were never thrown out.
here!"
Langlet's Passports Saved 2,000 Lives.
"I have orders to fetch from this place all the men who
can work*, was the answer.
away
We mentioned above that the Swedish Legation could only
*None will leave this place. If you try to take anyone
you will have to answer to no. As long 0.0 I live none
will be taken out of here. First you will have to shoot no.*
The soldiers did not quite know what to do, and gradually
left the place. Later the Commendant asked Wallenberg for
conference, a request he at once followed. The negotiations
lasted one hour after which Wallenberg returned with a paper
from the Connandant saying that Jews under Swedish protection were
a
exempted from labor service.
Racing with A Deportation Train.
The same night the Swedish Attache received another
alarming report: eleven persons with Swedish protective passports had been arreated by the Gestapo, and what was worse, had
already been thrown into a railway carriage. Not second
could be lost. Wallenberg raced to the railway station in his
car, but the train with the Jews had already left the station.
The destination was Vienna.
succeeded
sentative
in
saving
of
the
many
Swedish
lives
Red
through
Cross.
his
He
measures
issued
as
special
repre-
protective
letters with texts printed in gold print in Hungarian, German
French and Ruesian, and with photos, signatures, dates, stampe
and seals so that they acquired an extraordinary "impressiveness".
These letters saved many from disappearing in concentration
campa, from loosing all their belongings, yes even from loosing
their lives. These letters, our source says, will for a long
time to come, remain some of the most beautiful documents of
human kindness. At least 2,000 people, among then children
down to 3 and 4 years of age, were saved in this manner.
Finally, our source stresses that the Swedish Legation did
not limit its help to Jews alone, it helped wherever it
possibly could. The introcition under the "Pilkora Men' regine,
however, were all too many. Gangeters harried in the streets,
stole, burnt murdered and plundered. As a whole, the police
behaved all right - there were exceptions, but other authorities
were so much worse.
In his car, Wallenberg then pursued the train and oaught
up with it at a station near the Gernan border. The train made
a stop there and Wallenberg succeeded in getting hold of the
connander; ten minutes later his people were let out of the
sealed carriages. The others who could not be saved, had
go on to German territory in the dirty, overfilled carriages.
Just when the Russian troops were entering the suburba
of Budapeat, an old man entered the Consulate, The nan said he
was working at the Printer's Athaeneum, one of the largest
firus of this kind in Hungary, which by that time had been
confiscated. He showed Wallenberg a pulled proof of proclamation
in which *workers Jews and suppressed" were encouraged to rise
against the Germans and the *Pilkors Men* and use the weapons.
The typographer told Wallenberg that 300,000 copies of the
leaflet were to be printed and distributed by aeroplane as
provocation. The idea was to bring about a revolt in order to
to
a
arrest 41 who were found with weapons in hand.
issue 0 certain number of protective passports, and only to such
persons who fulfilled fixed conditions. The Swedish "Lector" at
the University, the 70 year old Waldenar Langlet, however,
The Catholic nuns and monke did such besides hiding
thousands of the persecuted in the cloisters. In one nun's
cloister a secret printworks was installed for the printing of
identification papers. At one time when the Stalasy men demanded a million pengo for the release of some Jews, the Benedictin
and the Cistercien monke contributed one half of the amount.
64
TREASURY DEPARTMENT
0
regarded 0.0 too complex for treatment in the brief time
INTER OFFICE COMMUNICATION
available) WB.B not discussed. There was general agreement
that 'active Nazis' should be removed from all positions of
importance and that they should be punished, but no decisions
were taken nor was there much discussion of the subject.
DATE Karah 12, 1945
TOP SECRAT
Secretary Morgenthau
TO
FROM
Mr.
65
-2-
There WAS no tendency at any time to exonerate the German
(Urgent)
nation from precipitating the war.
Coe
Restitution and Reparation
More on Yalta
"There is a provision in the agreement on reparation that
the utilization of German manpower will constitute one form of
reparation. This whole question is to be studied immediately
This is a summary of the Talta decisions on Germany, AS
given by Watthews (State) to Eisenhower's chief of staff, and
sent us by Taylor, for Treasury use only.
by a commission to be set up in Koscow.'
The Separations Commission will also consider:
Program for Elimination of German for Industries
1. Restitution of identified property and in kind.
"There WILD general agreement that this question should be
studied urgently by the European Advisory Commission.
2. Reparation of equipment, goods, FAW materials, etc.
3. Use of German production for reparations.
4. Restitution, within Germany, of despoiled property.
5. " There was general agreement that Germany's foreign
economic interests should be taken from her and that
this would constitute some form of reparation to be
Decentralization
C
"There WISE general agreement that Germany should be de-
centralized and that the question of notual dismemberment would
be studied by & commission to be set up in London composed of
Eden, Winant and Gousev. In the brief time available no effort
was made to work out many details."
discussed in Koscow.
France
"An you will have noted from the communique, it WSB finally
determined that France will be given 6 military zone of OCCUPAtion of her own. It WALE also finally decided that France will
be integrated on the Control Council (TOP SECRET. This took
some doing: The Russians did not like the idea). No decisions
but
"There was general agreement that interzonal movements of
goods is essential", and
was
"There 148.8 agreement that the closest possible coordination
of laws and administration between the zones in desired.'
De Janification, etc. and Funishment
"There HIS complete agreement of the dissolution of Herl
institutions, the German General Staff and the military and paramilitary organizations, and that this should be done as for as
possible on 8 uniform basis through the Control Council machinery."
as
to
the
exact
location
of
the
French
zone.
It
WAS
Other Decisions
and
"The question of German punishment other than nor criminals
(which WAS strongly urged by Frine Minister Churchill but WSS
reached
left that this could be worked out between the British a nd
American Governments, but it seens likely that France will be
given a part of the British sone west of the Rhine. It will be
done in consultation with the French Provisional Government."
$
1. Handling of United Nations prisoners and persons.
2. "There was general agreement on all types of records and
archives being made available to the major allies but
no discussion on details."
PRECISION
TRADE MARK
MICROSTATA
NO. U.S.PAT.OFF
MICROFILM
ROLL A
6779
66
UNITED STATES OF AMERICA
TREASURY DEPARTMENT
-3Not discussed
1. War criminals. Nazia and militarists.
AIR MAIL
Embassy of the United States
Office of the Treasury
Representative
London, March 3. 1945.
2. Cannealed speets of Germane.
3. Use of Geroan scientific and Industrial developments.
4. Kovement of German population.
5. Government of Berlin.
6. Lovement of people between zones.
7. Currency problems.
8. Foreign exchange control.
U. Japanese 0.00 neutral property in Germany.
10. German property and national abroad.
11. Transport, communications ADD radio.
No. 259
to It
PERSONAL AND CONFIDENTIAL
Dear Hr. White:
I an enclosing herewith a copy of a nemorandum
dated January 27 from Brigadier General Frank McSherry
to the Chief of Staff dealing with "kilitary Govern-
ment Problems Requiring Immediate Agreement with the
Russians' together with copy of a letter dated
February is from H. Freeman Matthews to Lieutenant
General i. Fedell Smith. The Matthews letter attempts
would
appreciated you papers
strictly secret and for the confidential information
answer be the McSherry in memorandum would keep point these by point.
of Treasury officials only.
Sincerely,
Bill Taylor
U.S. Treasury Representative.
Mr. Harry D. White,
Assistant Secretary,
Treasury Department.
Washington 25. D. C.
Enclosure.
PRECISION
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MICROSTAT
REG. U.S.PAT.OR
MICROFILM
ROLL NO.
69
-2-
SUPREME HRADQUARTERS
ALLIED EXPEDITIONARY FORCE
G-5 Division
1. Procedures for handling of United Nations persons
and prisoners of war.
27 January 1945
11. Movements of German population and utilization of
German manpower.
SUBJECT: Military Government Problems Requiring Immediate
Agreement with the Russians.
TO:
The Chief of Staff
1. The military situation as reported has potentialities of
the immediate collapse of German resistance. When this occurs it
will be necessary for SHAEF to establish military government in
the British and U.S. Zones. During the early phase of this occupation military government will function to a large extent
a local and provincial basis, but many problems of a national and
scope will soon present themselves, necessitating definite
uniform solution 1f confusion and chaotic conditions are to be
avoided. Agreement between the three big powers on certain
subjects vital to the conduct of military government are essential at an early date.
2. Four subjects of underlying importance should be decided by the Allied governments as a basis for specific planning
on
and operations:
a. To what extent will France participate in the military
government of Germany? If France participates what area or zone
will be assigned to this country?
b. The Russians in a recent broadcast state that it
is the German nation that is guilty of precipitating this war
on the world, not merely the Nazi element thereof, and should
be punished therefor. The Combined Chiefs of Staff policy is
to punish the Nazia, both as an organization and as individuals.
Much can be done in the early days of occupation if the ultimate
objective as to whether or not the German people are to be considered the guilty parties, and what over-all punishment is to
be given, is known.
O. To what extent is the decentralization of Germany
to be undertaken See U.S. Joint Chiefs of Staff Directive
1067, para. 11, which reads as follows:
"11. Military administration shall be directed
toward the promotion of the decentalization of the
political structure of Germany. All dealings in so far
as possible should be with the municipal and provincial
government officials rather than with Federal government officials.")
d. Efficient machinery should be established to deal
with
special inter-allied problems arising out of the war and involving countries other than those represented on the EAC. Problems
of_this nature are:
Daylor
lend T 3
111. Reparations, restitutions, deliveries and financial
matters relating thereto, in particular:(a) Restitution to liberated territories of
specifically identified property and restitution in kind.
(b) Reparations to liberated countries of equipment, goods and raw materials, and otherwise.
(e) Use of German productive facilities for benefit
of liberated countries extent to which this will be
undertaken.
(d) Restitution ithin Germany of property which
has been the subject of duress, wrongful acts of confiscation, di apossession and spoliation.
(e) Disposition of enemy war materials among the
United Nations.
iv. Interchange of information, in particular:
(a) War criminals, Nazis and militarists.
(b) Financial information, particularly relating
to assets concealed by the Germans.
(o) Use of German scientific and industrial
developments.
V. All types of records and archives.
3. In addition to the foregoing. some US-UK-USSR authorities
should be authorized to undertake the consideration and agreement
the following problems, as well as those listed in 2d above:
a. Program for the permanent pacification of Germany
(elimination of Germany's war-making potential).
b. Policy respecting triparti municipal government of the
city of Berlin: in particular the initial proclamations and laws.
C. Frontier control, in particulars
1. Policies respecting movements of individuals from
one zone to another - restrictions desirable for security
reasons, to prevent MASS migrations, and to prevent individusla from escaping restrictions and punishments.
of
PRECISION
MICROSTAT REG.U.S.PAT.OR MICROFILM
TRADE MARK
ROLL NO
71
COPY
70
-3.
THE SECRETARY OF STATE
WASHINGTON
February 15, 1945.
11. Policies respecting movement of goods between
the zones and across foreign boundaries problems
foreign trade, movement of essential supplies within
Germany, movement of exports out of Germany to liberated
countries.
of
Lt. General W. Bedell Smith
Chief of Staff, Suprene Headquarters
Allied Expeditionary Force.
d. Finance, in particular:
Dear General Smith:
1. Currency problems.
You will remember leaving with UA at Malta a memorandum
from General McSherry to you of January 27 with regard to
military government problems requiring immediate agreement
with the Bussians. an attaching a copy of the memorandum
for your convenient reference. You asked that we endeavour to
work out as many of the answers to the questions posed as
not
possible and that I let you know what was done. I was
present personally at the military staff conversations and
consequently not informed of what may have taken place with
respect to these problems thereat. Presumably you will re-
11. Foreign exchange Control.
111. The breakup of Germany's foreign economic interests.
Foreign relations of Germany, in particular:
e.
1. Japanese nationals and property in Germany.
11. Neutral nationals and property in Germany.
ceive through military channels full reports of those dis-
111. German property and nationals abroad, including
program for their release and handing over to the United
cussions in so far as they affect SHAEF.
National
I give you below our comments on the questions posed
by General McSherry in ao far as the Crimean Conference
throws any light on them.
f. LAVE - extent to which coordination of laws between
the zones in desirable.
Dissolution of Nazi institutions, German General Staff,
and
military and para-military formations . to some extent this
can be done separately in each zone, but a completely effective
result can best be obtained through centralized control.
Paragraph 1: No comments required.
it.
Paragraph 2: As you will have noted from the communique,
it was finally determined that France will be given a military
It
finally decided
was
also
her
occupation
own.
zone
of
h. Transportation and communications.
1. Radio - dissemination of information throughout national
a HAM
that
zone. It was left that this could be worked out between the
British and American Governments, but it seens likely that
France will be given a part of the British zone west of the
Rhine. It will be done in consultation with the French Provisional
radio system.
1
of
France will be integrated on the Control Council (TOP SECRET
This took some doing: The Russians did not like the idea).
No decisions was reached as to the exact location of the French
(a) Frank J. McSherry
Government.
FRANK J. McSHERRY
Brigadier General, GSC
Paragraph 2b: The question of German punishment other
than war criminals (which was strongly urged by Prime Minister
Churchill but was regarded as too complex for treatment in
general
There
was
available) was not discussed.
brief
time
the
agreement that "active Nazia should be removed from all positions of importance and that they should be punished but no
decisions were taken nor was there much discussion of the subject.
There was no tendency at any time to exonerate the German nation
from precipitating the war.
Deputy Assistant Chief of Staff
0-5
C
0
2.
PRECISION
TRADE MARK
MICROSTAT
MICROFILM ROLL NO
REG.U.S.PAT.ORR
72
73
Paragraph 2c: There was general agreement that Germany
should be decentralized and that the question of actual dia-
memberment would be studied by a commission to be set up
London composed of Eden, Winent and Gousev. In the brief
in
time available no effort was made to work out many details.
Paragraph 2 d it An Anglo-Soviet and Anglo-American
Paragraph 3 g: There was complete agreement of the dissolution of Nazi institutions, the German General Staff and
the military and para-military organizations, and that this
should be done as far as possible on a uniform basis through
the Control Council machinery.
Paragraph 3 h 1: No discussion.
agreement was signed (the latter by General Deane) on the
/
last day of the Conference. The text of this agreement will
presumably be immediately communicated to SHARP.
The Secretary of State urged upon Molotov the importance
of getting the Russians to implement immediately their agree-
Paragraph 2 d 11: There was no defini to discussion of
the general question of movements of German population. There
nucleus planning group in London and at SHAEF and in sending
zation of Gernan manhower will constitute one form of reparation. This whole question is to be studied immediately by a
commission to be set up in Moscow.
Russiana will now come through.
is a provision in the agreement on reparation that the utili=
Paragraph 2 d iii: Queations (a), (b) (e) and (d) will
be considered by the Moscow Commission mentioned above.
Paragraph
cussion.
2 d iv: Questions (a), (b) and (c). No dis-
Paragraph 2 a V: There was general agreement on all types
of records and archives being made available to the major allies
but no discussion on details.
Paragraph 3 a: There was general agreement that this
question
should be studied urgently by the European Advisory
Commission.
Paragraph 3 be No discussion.
v
v
ment, already given in principle, to participation in the
forward their personnel for the Control Council. I did the
same with other members of the Russian Delegation. I believe
that with the rapidity of recent military developments the
I an sorry that - could not work out in detail a number
of the above questions. T believe you will realize, however,
that the number of highly important overall policy questions
to be settled left us no time in our eight days at Yalta to
undertake
the detailed
study of the above which we all agree
is ao urgently
required.
It was good to see you at Malta even for A few moments.
Please give my best to General Eisenhower -- tell him I wish
I were still working for him -- and to all my other friends
from Torch days -- also my apologies to General McSherry for
the sketchiness of the above. I am writing this on a plane
en route from Moscow to Cairo. No spent forty-eight hours
in Noscow after the conclusion of the Conference and I must
say the atnoaphere could not have been better.
Paragraph 3 c 1, No discussion
Very sincerely yours,
Paragraph 3 c 11: There was general agreement that inter-
V
zonal movement of goods in essential.
Paragraph 3 d 1 and 11: No discussion.
Paragraph 3 d 111, There was general agreement that
Dermany's foreign economic interests should be taken from her
and that this would constitute some form of reparation to be
discussed in Moscow.
v
Paragraph 3 . 1, 11 and 111, No discussion.
Paragraph 3 f: There was agreement that the closest possible coordination of laws and administration between the zones
is desired.
(Sgd.) H. Freeman Matthews
H. PREENAN MATTHEWS
Encl.
74
TREASURY DEPARTMENT
o
75
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
O
INTER OFFICE COMMUNICATION
DATE March 12, 1945
TO
FROM
DATE March 18, 1945
Secretary Morgenthau (For information
Mr. Coe FC
TO
FROM
Subject: Re-entry of Treasury personnel into Philippines.
General Wednmayer
1. As you know, General Wedenever and General Hurley are
now in Washington to report to the President on the
situati on in China and to discuss the future developments in the Pacific War.
2. War
Department that your letter lad
prystalized the discussion of the entire problem of the
entry of civilian personnel into the Philiopine which
2. It is suggested that you nok General Hurley and General
Wedenover to call on you securately to discuss with
them the situation in China 0.0 it relates to Treasury
problems. particularly settlement of U. 3. Artry expendituren in China.
had been under consideration in a bit and miss fashion
mechanism
deal with
all requests
fromtoprivate
for months. by Steps
were taken
at the moeting
ant carpora- up D
tions BE well 0.5 civilian governmental agencies deairing
to send people into the Philionines.
in your letter to Secretary Stimson that Treasury rearesentatives proceed OB soon as possible to the Philipoines
to administer a Foreign Funds Control program.
4. The has been informed that we
to Manila.
In accordance
four Army to six people
will send
a w test th entable of
lished procedure General KeoAn thur in now beiru solted by
the Army to permit the entry of thead people into the
Philippines.
5. In are askin It. Col. Worman Towmon, former Assistant
Director of Foreign Funds Control, to head this minsion
to the Philisoips He is now discussing with General
Strong his poleane from the Army in order to accest
this assignment
0
Mr. Coe FC
Subject: Sulgested appointments with General Hurley and
1. A meeting was held in Assistant Secretary MaCloy's of fice
on March 9, 1945 to discuss your letter to Secretary
Stinaon
regarding the re-entry of Treasury personnel into
the Philippines.
3. General agreement THE expressed with the request contained
Secretary Morgenthatt (For action)
O
2"
First of two luncheon meetings to inform top-management of plan for
sale of bonds in industrial plants and other places of business.
Maha
77
76
SEVENTH VAR LOAN
T. L. Daniels, T.P.
Co.
Minneapolis Clas - March 12,1945
John a. Peterson
Y.P.
Cargill, Inc.
Acceptances
Denald Bagsell, Pres.
Chicago, Milwaakee, St. Paul
& Pacific R.R. Do.
The Henerable Menry Morgenthan, Jr.
Harry A. Ballis
K. 3. Olender
J. R. Mark Company
President
General Mills, Inc.
Clarence
R. Chaney v.f.(4 to Hear the Firs cm )
0. Welson Dayton, Pres.
Northwestern National Bank
The Dayton Company
N. 8. Alwood y. f
T. H. Brouillette Fresh.
3. 7. Select Mfg. Co.
L. s. Denaldson Co.
Palmer Anderson
P. L. folether, Trustee
Conn. General Life Ins. Go.
Dulath, S. Shere & Atlantic Ry
J. 0. Corneline V.F.
Batten, Barten, Darstine & Debora
Darkee-Atwood Company
H. c. Alwood, Pres.
D. Purber we man
V. H. Heldmann, Free
Kennevia County Var Finance Committee
(eatric Machinery Neg. Co.
A. H. Hiatt, Jr.
J. Y. Payton, Pres.
I
Astes life Insurance Co.
Federal Reserve Benk of Help
Clare 1. Long v.R
L. K. Vakefield, Pres.
Marsh & Melenaen, Inc.
First Net. Bank
Paul v. Lester
Piper, Jaffery & Happend
A. D. Hyde
Mrs. Derothes 0. Nos
Hennepia County Var Finance Committee
H. Halls, Sept.
I. D. Own Partner
Orier Cheaten, Treas.
Allieen-Villiams Co.
The Oray Commany. Inc.
R. 7. Pack Church
J. X. Renson, T.P. & Treas.
Northern States Power Co.
Hardware Fatual Insurance Co.
Charles N. Petillon
Berkehire Life Ins. Co.
R. J. Stallmen. Treas.
V. LaYes Habison
Charles 3. Kievel, Pres. (AND GUEST)
Matual life Insurance Co. of N.T.
Misseamelis Dreving Company
General Hills, Inc.
Gepher Ordnance Yorks
0. 3. KeClinteck Company
PRECISION
TRADE
MARK
MICROSTATA REG. U.S. PAT. OFF
MICROFILM
-3-
78
ROLL
79
Harvin L. Kline, Mayor
Jefferson Jones
Twin Office Ordnance Plant
City of Misseapolis
H. K. Vrench, Pres.
D. J. Stronge, Pres.
Twin City Rapid Transit Co.
Minneapolis One Light Co.
Peal Wishard
T., R. landen, Comptroller
Mple. Honeywell Reg. Co.
University of Missesta
v. 0. Pres.
D. 0. Firmis
Mple. Meline Power Implement Co.
Teteran's Ministration
L. c. Spragan. Pres.
M. & St. L. Railrond Go.
3. H. Ridder, Publisher
E. c. Great, Pres.
Julian Baird, Tice Free.
ST. PAUL DISPATCH
fee Line Railway
First National Bank
11. Panl, Minn.
L. Olrich, Pres.
Hanningwear, Inc.
Philip L. Bay, President
First Trust Co. of it. Paul
A. J. Masses, Time Pres.
National Tea Company
R. E. Steele
Northern States Power Co.
John R. Parker, Pres.
Northreetern Aeronautical Core.
I
Frank Branelin, Pres.
W. V. Ball Telephone Co.
Shirley 3. Ford, Pres.
Northwestern National Bank
Arthur Ramfall
D. v. Oman Seas
Philip W. Pillebury, Pres.
Pillebury Mills, Inc.
John R. Coan. Postmenter
0. 5. Devideor
Northern Ordnance, Inc.
c. J. Arneld, Pree.
Northwestern Nat. Life Ins. Co.
Henry D. Thrail serreator
Woodard-Elwood Company
John Covies, President
KINNIAPOLIS STAR JOURNAL
once a. Erwan Publisher
U. s. Post office
Doddrick Clean, Pres.
Powers Dry Goods Co., Inc.
L. F. Miller, Pres.
Thesell-Miller Milling Co.
Col. N. 3. Taylor
Standart-Anderson-Sterling Co.
C
D. x. Strathy. Sec.
Strainear Knitting Co.
office
Haily Trues.
C.C. Massie
Rest
northropking the
PRECISION
TRADE MARK
MICROSTAT MICROFILM
ROLL NO
81
-5-
schedule for Secretary for
Earch 12, 1945 Minneapolis
80
0
C
Cannot Come
8:30 A. K.
3. H. Kenting
Breakfast
Presided over by John Cowles, President, Star-Journal
and Tribune. and O. J.Arnold, Kinnesota War Finance
E. H. Keating Agency
Committee Chairman
Leading publishers and editors of Twin Cities - also,
Fargo, North Dekets.
Have Net Heard From
12:15 P.M. Luncheon
E. T. McGay
Chaircan and principal speaker: Harry
A. Pullin
President,
General Mills
Cargill, Inc. Shipyards
Savage, Minnesota
speaker: Ernest L. Clrich, President, Nunsingwear, Inc.
Desald 3. Togies, Pres.
Foglee Construction Co., Ltd.
Group to consist of employers, in the Ninneapolis area,
711 Vesley Temple Bldg.
having over 500 employees.
V. B. Tetsleff, Pres.
Flour City Ornamental Iron Co.
2637 27th Avenue So.
V. J. Kay, Pres.
Northland Greyhound Lines, Inc.
509 Sixth Avenue No.
6:30 P.M.
Dinner Nicollet Hotel
Under the suspices of Foreign Policy Association and
kinnespelia Civic and Commerce Association.
Presided over by oideon Seymour, Vice President and
Executive Editor of star-Journal and Tribune, Minneapolis
Also. President, Foreign Policy Association.
I
National Can Corporation
Twin Cities Ordnance Plant
BuildingF501, New Brighten
0.00 P. M.
N. B. Alvater, Pres.
8:15-8:45 P.M.
Scott-Aswater Nfe. Co.
2901 N. Hennepin Ave.
Arthur 3. Regert
1142 Minnesota 31dg.
St. Paul, Kinn.
Speaking program.
Central Har- Radio time. Station BIOL, Mutual outlet.
time
Head table guests:
Senstors Shipstead and Hall (If they accept)
Mr. Peyton, Federal Reserve Bank
Nears Wekefield and Ford, Presidents of two large banks
Mr.Boyd, Independent Bankers Association
Dr. Coffee, President of University of Minnesota
President or Vice President of civic and Conserce Assin.
Mr. Spregue
Kr. DuBois
Kr. O. J. Arnold
Former Governor Stassen also being extended invitation.
3/12/45
82
2
Cocktail party guests . Mr. O. 3. Arnold
AGENDA
6.00 P.S. Parlors : and K. Nicollet Hotel - March 12 - preceding dinner
HENNEPIN COUNTY WAR FINANCE COMMITTEE
PAYROLL DIVISION LUNCHEON MARCH 12, 1945
MINNEAPOLIS CLUB 12:15 o'clock
Head table consta who will attend cooktail party
HARRY A. BULLIS PRESIDING
Secretary and Hrs. Korgenthau
Mr. Herbert Gaston
1. Opening remarks by Mr. Bullis
Mr. A. 7. Luxford
Mr. George Little
2. Mr. Chaney to introduce special guests and leaders of
Payroll Division
Mr. 0. J. Arnold - President, Northwestern Nat'1 Life Insurance Co.. and
3. Introduction of the Honorable Henry Morgenthau, Jr. by
Mr. 0. J. Arnold
Mr. end lire. Lynan Takefield - President, First National Back of Kple.
4. Secretary Morgenthau's remarks
Hr. not Mrs. Shirley 5. Ford - President, Northwestern National Bank
Chairman Minnesota far Finance Committee
5. Introduction of Mr. E. L. Olrich by Mr. Bullie
6. Presentation of plan for sale of bonds in industrial plants
Mr. and lire. Benj. P. DuBois - President, Independent Bankers Association
Mr. and Mrs. John 3. Peyton - President Federal Reserve Bank of Mple.
and other places of business by Mr. Olrich
7. Adjournment
Mr. ent lire. Gideon Seymour - Vice
Pres.
Exec.and
Editor,
Ninneapolis
Star
Journal
andand
Tribune,
President.
Minneapolis
Foreign Policy Association
:
Mr. and are. Arthur Upgree - Vice President and Economist. Federal Reserve Bank
Mr.
Charles Liscomb and guest - President,
and Exec.Liecoub-Hood
Vice Chairman.Company
Minn. MarDuluth,
FinanceMiss.
Com.
Mr. W. D. Haffsiger - Manager. J. c.Minneapolis
Penney Company.
Inc., and Vice
President
Divie & Commerce
Association
Mr. and Krs. Donald D. Davis - Exec. Vice Pres. Mian. & Ontario Paper Company
Mr. and Krs. Pierce Butler - Attorney,
Jutler, Bullivan
&
HitchellDoherty,
St. Paul:Bumble,
and President,
St. Paul
Foreign Policy Association
(Dr. and Mrs. Valter c. Coffee - President University of Minnesota
Unable to attend for cocktails. but will be present at dinner.)
0
C
2:
TRADE MARK
84
Guests at breakfast for Secretary of the Treasury Morgenthan
Miniempolis Club, Karch 13, at 8:30 R.D.
Henry Korgenthan, Jr., Secretary of the Treasury
Herbert Oneton, Assistant - Secretary
A. F. Luxford, Assistant to the Secretary
George Little, number, Public Relations, Var Finance committee
Mazus McFadden, managing editor, Minneapolis Daily Tines
Bradley Horinon, editorial editor
Joyce Swan, publisher
Bemaard H. Hidder, publisher, St. Paul Dispatch-Pioneer Press
Fred Haeberlin, managing editor
.
.
J. R. Wissine, editor
Ralph Keller, secretary. Minnesota Editorial association
Fred Schilolin, publisher, St. Cloud Daily Times
John 2. Casey, publisher, Jorden Independent
Leif Gilstad, executive manager, Misnesota Var Finance Committee
0. J. Arnold, chad mass,
president, Northwestern National Life Insurance company
C
A.E. weee
John Person president, Federal Reserve bank
Clarence Saguáa, general manager, K P C N
& 5. ?ittendorf, general mencer. VLOL
Sam
about KST
Thomas Boright, publisher, Commercial West
Willie L. Williams, editor.
C. K. Michemer, manding editor. Northwent Miller
John 0. Eykyri, editor, Ninnesota Labor
3. D. Cysner, editor. Hinmencolis Labor Review
Berry H. Akers, editor, The Famer
Snader Genie, president, Kinnesota 010
George Phillips, president. Centrol Labor Union
true
reside
John Covies, president, Minnespolis Star-Journal and Tribune company
John Thompson, publisher
Gideon Saymour, executive editor
Charles R. Corbin, assistant to the executive editor
Chossa J. Dillon, editor-in-chief, Minneapolis Morning Tribune
William P. Steven, managing editor,
George L. Peterson, editorial editor. Minnenpolis Sunday Tribune
Frenk W. Feak, president. Federal Lead Dank, Saint Paul
alan
Kennedy
85
O. J. Arnold Cooktail Party List
0
Representing Minnesota State War Finance Office Staff
Mr. Wallace Boes
Mr. L. P. Diswold
Mr. & Mrs. Kartin
Mrs. Richard J. Hutchinson
Mr. Emil Boie
Mr. Harry Sahmokel
Representing Hennepin County War Finance Committee
Mr. & Mrs. Chaney
Mr. & Mrs. Long
Mr. & Mrs. E. L. Olrich
Mr. & Mrs. Paul Loudon
Representing Minnesota State War Finance Committee
Dr. O. B. Jesness
Mr. Arthur D. Reynolds
Mr. & Mrs. John Sarles
Mr. William Duncan
Mrs. Frenklyn H. Matson
Miss Mary Proal Lindeke
Others:
Mr. Harold E. Wood and guest
Mr. & Mrs. Alan Kennedy
(Assistant to Mr. O. J. Arnold
Mr. H. K. Henemen, President
Security State Bank
Narroad, Minnesota
Mr. Otto Bremer
Mr. J. W. Creen
29
THESE PROPLE WILL OCCUPY SPECIAL TABLES AT DINNER, DIRECTLY
IN FRONT OF SPEAKERS' TABLE.
PRECISION
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let
draft
5-7-45
-2The strides that were taken toward peace and
These last few weeks have been so filled with
security at Dumbarton Oaks, at Mexico City and at Yalta
tremendous events that I think most of us have become
as well as the further steps that will be taken at San
little breathless trying to keep up with them. Besides
the heart-warming news from the fighting fronts, we are
beginning to see the postwar world take shape before our
Francisco will be wasted unless there is stable and
expanding commerce after the war. The Bretton Woods
agreements, therefore, are one of the pillars that must
be both strong and well placed in order to hold up its
eyes.
Following the general acceptance of the Dumbarton
Oaks proposals we have had the welcome news of the Talta
conference and the increased Western Hemisphere unity
portrayed at the Mexico City conference. We are looking
forward to the most hopeful of all, the San Francisco
conference.
I have come here to talk about a program which is
vital to the success of all the plans that have been made.
That program was framed at still another conference, held
share of the international structure.
It is hardly necessary for me to remind this audience
that sound business is essential to peace and that it can
exist only in a world at peace. The Bretton Woods agreements were drafted with a view to making business sound.
I am convinced that they succeeded, so far as insuring
the end of certain very dangerous restraints on trade
are concerned.
The experience of our generation has proved to us
at Bretton Woods, N. H., last summer. There representa-
that a well balanced prosperity for our country depends
tives of 44 United Nations drew up agreements to establish
on a vigorous foreign trade. In peacetime, ten percent of
an International Monetary Fund and an International Bank
our jobs in agriculture and industry depend directly upon
of Reconstruction and Development. The first is designed
to stabilize currencies after the war; the second provides a part of the machinery needed to finance the
rebuilding of the wartorn world.
international commerce. That was true in the high employment years of 1929 and 1937 just as much as in the depression year of 1932.
PRECISION TRADE MARK
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89
88
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Now the Bretton Woods agreements are not going to
One of the greatest brakes on our own foreign trade
was made up of the discriminatory exchange regulations
and the fluctuating currencies of other nations. They
found It impossible to buy our flour or our hardware or
our machinery when the price was constantly rising be-
cause the value of their money was steadily falling. They
tried to SAVE themselves by setting up artificial exchange
barriers. They bought less and less from us.
No commodity in America suffered 50 much as wheat
from the loss of foreign markets. In 1914, the United
States exported 20 per cent of its total production. By
1940 exports had fallen to less than 5 per cent. Other
crops suffered more in volume but none so much in proportion.
Our domestic market suffered perhaps more as & result.
Consider what h appened when your customers lost their
foreign markets. In 1914, the United States sold abroad
more than 60 per cent of its cotton crop and nearly 50
per cent of its tobacco. The cotton and tobacco farmers
could est white bread. But in 1940 we were exporting
only 30 per cent of the cotton crop and less than 20 per
cent of our tobacco. Cotton and tobacco farmers were
either growing their own wheat on mighty poor wheat land,
or else they were eating corn pone.
restore or foreign markets all by themselves. But they
are & necessary first step toward getting and keeping
those markets.
The obvious prerequisite for any such foreign trade
as we must have to insure full production and full employment is a stable medium of exchange. Of course the
governments of the world must sincerely desire stabilize-
tion. The fact that their representatives agreed to the
Bretton Woods proposals and approved & schedule of funds
which will be put up by their governments proves that the
will to stabilize is there. Our program provides the
machinery for making their will effective.
All the member nations agree under the plan to maintain
the stability of their currencies, and the Monetary Fund
is established to help them do it. The businessmen of
your community know what happens when the grain market
begins to kick up. The difference of & single point means
$10,000 to the holder of a million bushels, and when the
market is jiggling up and down like a vibrator, the grain
business becomes pretty difficult.
PRECISION
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MARK
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10. U. . PAT. OFF.
MICROFILM
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90
-6was sucked into & downward spiral as though it had been
Foreign exchange is not much different. When
caught in a whirlpool.
After the war, the world will face economic disloca-
currencies are fluctuating, or simply depreciating
steadily without fluctuation, foreign trade becomes so
cations and reconstruction problems more complex than
difficult that it is speedily curtailed.
anything in history. We will need all the machinery for
stabilization and development that we can get. The
Our international commerce is to the economic life
of the whole country what the Twin Cities are to our grain
Bretton Woods agreements are the answer drawn up by experts
market. What happens in Minneapolis and St. Paul has
from 44 nations. The program represents the accumulated
repercussions throughout the nation. So does & new ex-
work of three years. In its simplest terms, it means more
change restriction in Europe.
business and better business, more jobs and better jobs
We have all seen it happen. At one point between
for the people of Minnesota, as for the people of all the
country.
radio sets from the United States. But French exchange
If it did not mean that, It would not accomplish its
was extremely unstable. Dealers found it difficult to
other purposes. But because it does provide a vehicle
get dollars. In terms of francs, the radio sets that
for the expansion of your foreign trade, it becomes an
were becoming cheaper over here grow more expensive over
integral part of the world's machinery for peace.
been talking principally about the Monetary
I have bank to
there. In an effort to avoid a monetary crisis, France
clapped a quots on American radio sets. Not more than 8
Fund. The other half of the program sets up a
per cent of the country's total sales could be purchased
from the United States.
help finance the world's needs for reconstruction and
development. This bank is hedged about with safeguards
The drop in sales to France affected more people than
to insure sound practices and to help rather than hamper
the radio manufacturers and their workers. The men thrown
out of jobs became very poor customers for all the products
of American industry and agriculture. The whole country
:
the two wars, France bought more than half of all her
private financing. Some very important jobs of repairing
8
PRECISION
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93
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92
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Under the Bretton Woods agreements, this will be
war damage are not going to be attractive to private
a thing of the past. Any member nation can come for its
capital because the risks may be too big and the return
government financing to a world bank and make the loan on
too low. If the job is a genuinely productive one -- and
its merits, free from political shackles.
What that can mean to peace is plain from any study
all the International Bank's loans must be made for really
useful projects -- the Bank will either provide the funds
of the way in which political strings on government loans
or guarantee the private investor. That guarantee is
forced small nations into the orbit of one or another of
backed by the resources of the Bank, contributed by all
the aggressor countries.
44 members. The borrowing country must also guarantee
The Bretton Woods program, therefore, must be con-
it, and all projects will be carefully examined as to
aldered on two broad and vital grounds. In the first place
necessity and value.
it is good business for the American people. In addition
So far this is simply good banking business. But
there is another aspect of this banking operation which
commends itself to ne and has been somewhat overlooked.
In the past, many smaller or hard pressed countries have
been obliged to sacrifice some of their political independence
in order to get essential financing. A creditor country
would insist upon concessions, often of a political nature
or imposing & restrictive trade relationship upon the
debtor. The result was & new barrier in the way of world
trade and & new link in the chains which power politics
had forged for free peoples.
it is a solid contribution to world security. On both
counts I think I know where the people of Minnesota will
stand.
RECISION
TRADE MARK
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95
FSV
draft
2nd
-237142
They are more than that.
0
These last few weeks have been filled with trenendous
events. Besides the stirring news from the fighting fronts,
peace and security at Dumbarton Oaks, at Mexico City and
we are beginning to see the outlines of the postwar world.
at Talta, as well as the further steps that will be taken
A program for peace is taking shape before our eyes.
at San Francisco, may end only in frustration. Peace to
Following the general acceptance of the Dumbarton Oaks
industry within nations and profitable and expanding
and the increased Western Hemisphere unity portrayed at
commerce between them.
The Bretton Woods agreements deal with two great problems.
hope may prove most fruitful, the conference of the United
One is to reconstruct the economies of countries devastated
Nations in San Francisco next month.
by WBT so that they can resume production and trade and to
I have come here to talk about an essential segment
supply others with funds needed for the development of their
of the peace program, prepared at another conference of
resources. The second is to establish a system of fair
the United Nations held at Bretton Woods, N. H., last
monetary practices that will put an end to the disorderly
summer. There representatives of 44 nations drew up agree-
exchange conditions and destructive rivalries of the past.
ments to establish an International Monetary Fund and an
Early in our discussions, we considered joining the functions
International Bank for Reconstruction and Development.
of the Bank and the Fund in one institution. We decided
I have been in close touch with every stage of the
progress of these agreements, through two years of prelimi-
nary work, through the conference itself and through the
discussions since then. I can assure you that they are
definitely good business for the United States.
1
be secure must rest on the firm foundation of profitable
proposals we have had the great news of the Yalta meeting
Mexico City. Now we look forward to the meeting which we
C
Unless they are put into effect the strides toward
against it. I think you may want to know why, since the
question was raised after the agreements were completed.
The two deal with entirely different problems. They
will need staffs with entirely different training.
PRECISION
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TRADE MARK
96
97
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-4-
The Bank will be concerned exclusively with long-term
Before the war, the monetary stability of each country
investments -- loans for twenty to thirty years, or even
was supposed to be its own private business. Each was left
longer -- for productive purposes. Its staff will have to
to its own devices so far as its currency was concerned.
study the long-term debt positions of various countries,
Most countries struggled desperately to get onto the gold
their places in world trade, the value of the project for
standard. Before 1922, only eight were on gold. Through
which the loan is intended. The Bank will have only in-
very real sacrifices in the way of deflation, over-valued
vestment problems. It is worth remembering that in this
currencies and lost exports, 45 achieved the gold standard
country we learned from experience that it was necessary
in a precarious way by 1928. But the first serious pressure
to enforce separation of commercial banking from investment
was too much for most of them. Six were knocked off gold
banking.
at the start of the decline in international trade. By 1936
The Fund is not an investment institution at all. It
only seven were left, five of them with currencies closely
C
associated with the dollar. The world was back where it had
started fourteen years before.
will be concerned exclusively with the current operations
of the exchanges, with fluctuations in the exchange markets,
But that doesn't tell the whole story. This was an
with seasonal and other factors affecting the exchanges.
It must recommend correctives for prompt application.
era of trade warfare in which country after country employed
This is a highly specialized function reflected in the
currency manipulation along with other forms of discrimina-
organization of the big banks that operate in the exchange
tion in the effort to save itself at the expense of other
markets. Their separate foreign exchange departments are
nations. In 1932 Germany began to use clearing agreements
staffed with highly specialized technicians. I think we
to force less powerful nations to trade with her. These
at Bretton Woods were wise to follow what is now accepted
agreements permitted Germany to get what the needed from
as the best banking practice.
then and pay in return what she wanted to export -- harmonicas
or aspirin where the other country really wanted dynamos and
1
locomotives.
RECISION
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RIG.U.S.PAI. OFF
MICROFILM
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99
98
-5Foreign loan operations under the Bank and under the
In other cases Germany blocked payments due on previous
exports and on credits extended to Germany, so that some
countries were forced into payment agreements to protect
the investment of their citizens.
system in use before the war will present an equal contrast.
In the past, when countries needed foreign capital to help
in their development, they came to the investment market
and paid perhaps 7 or 8 per cent interest. Discounts on
All this led to a tangle of discrimination and preference
that spread over Europe to the great cost of American
exporters and the peace of the world. By 1938 Germany alone
had 36 clearing agreements, Italy and Greece 28 each, Turkey
23 and so on. The only country in Europe that had none was
Albania. Only Ireland, Norway and Russia succeeded in keeping their clearing agreements to 8.8 few as five.
The Fund will deal with the situation that led to this
confusion through international cooperation. Each member
country will define its currency in terms of gold and under-
take to keep it stable. If it runs into trouble, it will
not have to act alone, using currency depreciation or discriminatory regulations which will spread depression from
one nation to another. It will be able to consult with others
through the Fund and get help to maintain stability. Stability
of exchanges will facilitate trade by encouraging each
country to buy where it wishes. The pressure to create
discrimination, preferences and the other instruments of
economic warfare will be kept to a minimum.
top of that sometimes gave them no more than 90 of every
100 dollars borrowed. Too often the loans were made for
unproductive purposes, without adequate supervision and
with little prospect that the borrower could ever repay.
The borrowing country and the American purchaser of foreign
bonds were both losers.
The International Bank will make it possible for these
countries to obtain their capital for worthwhile, productive
projects. The Bank will guarantee loans for such purposes
so that they will be attractive to the private investor on
reasonable terms. The Bank will undertake this only when
the borrower can service the loan, when its usefulness is
clear and when the charges are fair.
There will be great need for such a service. We cannot
have a prompt restoration of the producing and consuming
power of the world while Europe is wrecked and great areas
of the world remain undeveloped.
PRECISION TRADE MARK
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MIM BOLL NO
10
100
-8-
-7The Bretton Woods program offers currency stability
(
to facilitate trade, and credit protection which will
benefit the borrower through reasonable loans for sound use
and the American people through an increased market for
their products.
The experience of our generation has proved to us that
a well balanced prosperity for our country depends on a
vigorous foreign trade. Under normal conditions, ten per-
cent of our jobs in agriculture and industry depend directly
upon international commerce. That was true in the high
which was only 8 per cent of our production.
As a result, the wheat farmers were forced to sell
more of their wheat at home. But as our total export trade
fell from $7 billion to $2 billion, the income of workers
in industry and agriculture fell sharply. The result WILD
that the wheat which brought $1.25 a bushel in 1928 was
sold for 60 cents in 1932.
Of course the Bretton Woods agreements are not going to
restore our foreign markets all by themselves. But they are
a necessary first step toward getting and keeping those
markets.
employment years of 1929 and 1937, but the sharp decline in
1932 had much to do with the severity of the depression.
The greatest brakes on our own foreign trade were dis-
criminatory exchange regulations and the fluctuating currencies
of other nations. They found it impossible to buy our flour,
our hardware, or our machinery when the price in their
currencies was constantly rising because the value of their
money was steadily falling.
No commodity in America suffered so much as wheat from
the loss of foreign markets. In the years 1925-1928 the
United States exported $239 million worth, which was 21 per
cent of its total production. In 1931-34, the era of
1
exchange discrimination, this had fallen to $38 million,
The businessmen of your community know what happens when
the grain market begins to kick up. The difference of a
single point means $10,000 to the holder of a million bushels,
and when the market is jiggling up and down like a vibrator,
the grain business becomes pretty difficult.
Foreign exchange is not much different. When currencies
are fluctuating, or simply depreciating steadily without
fluctuation, foreign trade becomes so difficult that it is
bound to fall.
Our international commerce is to the economic life of
the whole country what the Twin Cities are to our grain market.
PRECISION
TRADE MARK
MICROSTAT
REG. U.S.PAT. OFF
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-9-
that unanimous will on the part of the 44 United Nations
to work together.
What happens in Minneapolis and St. Paul has repercussions
I wish it were possible to describe the manner in which
throughout the nation. So does a new exchange restriction
that will was expressed at Bretton Woods. You have all taken
in Europe.
part in meetings at which a variety of interests were repre-
We have all seen it happen. At one point between the
sented. Perhaps there was a little wrangling and horse
two wars, France bought more than half of all her radio sets
trading.
from the United States. But French exchange was extremely
At Bretton Woods were representatives of 44 nations
unstable. Dealers found it difficult to get dollars. In
covering the whole range of the world in size, stage of
terms of france, the radio sets that were becoming cheaper
economic development, customs and economic conditions. Yet
over here grew more expensive over there. In an effort to
they succeeded in hammering out & thoroughly workmanlike
conserve exchange, France clapped a quota on American radio
program because they knew that we must either create an
sets. Not more than 8 per cent of the country's total sales
orderly system now or sink back later into the chaos of
could be purchased from the United States.
individual expedients and devil-take-the-hindmost. They
The drop in sales to France affected more people than
were animated by the new international spirit. They agreed
the radio manufacturers and their workers. The men thrown
to pledge large sums which could not benefit their countries
out of jobs became very poor customers for all the products
directly, but were & contribution to the general welfare,
of American industry and agriculture. The whole country
and they were farsighted enough to know that what helped
was sucked into a downward spiral as though It had been caught
others also helped them.
in a whirlpool.
Let me give you perhaps the most dramatic example that
To achieve the stability and the development through
occurred. In the list of subscriptions to the Bank, Russis
mutual effort which is needed to prevent 8 repetition of
had been put down for $900 million. This is & tremendous
this collapse, it is obvious that the first requisite must be
1
a sincere desire on the part of all governments expression to achieve of
them. The Bretton Woods agreements are the
PRECISION
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MARK
MICROSTAT
REG.U.S.PAT.OR
MICROFILM
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101-E
11
12
sun for a country whose richest districts -- bigger than any
program is now before Congress. Favorable action by the
single country in Europe -- have been ravaged with the
House of Representatives in advance of the session at
utmost brutality by the Nazis. On the last day of the con-
San Francisco on April 25 will be a token to all the delegates
ference, Russia announced that she would increase her
that the United States is thoroughly in earnest about joining
subscription to twelve hundred million dollars. Russia
with other nations to achieve international security. A
assumed that additional $300 million obligation, not because
House vote for Bretton Woods will strengthen the hands of
there could be any direct advantage to the Soviet Union, but
our own delegates at San Francisco.
in order to create a stronger Bank with a larger capital,
I an sure that as this becomes better understood, the
able to contribute that much more to the rebuilding of the
favorable vote will be forthcoming. As I have said, I an
world.
absolutely convinced that the Bretton Woods program is good
,
All the other countries manifested the same spirit.
Many of them expect no other benefit from their share in the
business for the American people -- all of them.
But there is another aspect of even greater importance.
$18 billion dollar capital of the Bank and the Fund than
At Bretton Woods we proved that delegates from the govern-
a contribution to that better world in which they can work
ments of most of the world could meet together and consider
out their own prosperity and security.
ways of helping each other instead of killing each other.
The Bretton Woods agreements were conceived in the
This is the international spirit of the United Nations, the
very practical spirit of cooperation. They represent the
ideal for which Americans are dying today. But it is harder
first such set of resolutions which have been presented to
to live for an ideal than to die for it. And that more
our people for the achievement of the ideals for which we
difficult task is for us at home to perform. It is because
are fighting. They can be an inspiration to all the other
I feel so deeply that the Bretton Woods agreements are so
meetings of the United Nations and an example of how the
much a part of this new spirit, are so essential to its
most difficult problems can be overcome through mutual good
development, that I have been urging their acceptance. As
will. The legislation to carry out the Bretton Woods
CRECISION
TRADE MARK
MICROFILM
MICROSTAT
ROLL
3rd
101-F
chaft
101-G
march
18
I see it, we are called upon in these times to express and
These last few weeks have been filled with tremendous
to act upon our faith in mankind. At Bretton Woods, we net
events. Besides the stirring news from the fighting fronts,
our hands to a very real expression of our faith in the
we are beginning to see the outlines of the postwar world.
capacity of men to work together for their mutual benefit.
A program for peace is taking shape before our eyes.
I am sure that we will not stop there, but will carry on to
Following the general acceptance of the Dumbarton Oaks
the achievement of all that our new have died to win for us.
proposals we have had the great news of the Yalta meeting
They have died 80 that we might have another chance to build
and the increased Western Hemisphere unity portrayed at
peace and security and a decent world for all its people.
Mexico City. Now we look forward to the meeting which we
It is for us to live for the same great ends.
hope may prove most fruitful, the conference of the United
I believe the American people are determined to do just
Nations in San Francisco next month.
that. Our generation has been given a new vision of the
world. It is as though we were seeing the earth whole for
the first time. Perhaps you remember how that was when you
made your first airplane trip. Soaring over the city, you
really caught a glimpse of its magnificence, the wonder of
it all complete and the shabbiness and ugliness concealed
under the larger view. And it might have been that as the
plane flew in from the East, you were in darkness, but ahead
you could see the sun. We of America, we of the United Nations
are near enough to the end of our war journey to know that
although the night is still all around us, we are coming out
into the light of a new day with its new opportunities for
creating a better and safer world.
--000--
I have come here to talk about an essential segment
0
of the peace program, prepared at another conference of
the United Nations held at Bretton Woods, N. H., last
summer. There, representatives of 44 nations drew up agreements to establish an International Monetary Fund and an
International Bank for Reconstruction and Development.
I have been in close touch with every stage of the
progress of these agreements, through two years of prelimi-
nary work, through the conference itself and through the
discussions since then. I can assure you that they are
definitely good business for the United States.
ECISION TRADE MARK
MICROSTATA
MS. U.S.PAT. OFF
MICROFILM
ROLL NO
101-H
101.
-3-2The Bank will be concerned exclusively with long-term
They are more than that.
investments for productive purposes -- loans for twenty to
Unless they are put into effect the strides toward
thirty years, or even longer. Its staff will have to study
the long-term debt positions of various countries, their
peace and security at Dumbarton Oaks, at Mexico City and
at Yalta, as well as the further steps that will be taken
places in world trade, the worth of the project for which
at San Francisco, may end only in frustration. Peace to
the loan is intended. The Bank will have only investment
problems.
be secure must rest on the firm foundation of thriving
The Fund is not an investment Institution at all. It
industry within nations and profitable and expanding
will be concerned exclusively with fluctuations in the ex-
commerce between them.
change markets, with seasonal and other factors affecting
The Bretton Woods agreements deal with two great
the exchanges.
problems. One is the problem of providing capital to
Whether to join the Fund and the Bank in one institution
repair the devastation of war and for development purposes.
is not 5 question of form. It goes to the very heart of the
The other is the problem of establishing a system of fair
stabilization problem. Those who argue for one institution
monetary practices that will promote trade instead of
hindering it. The solution proposed is the creation of
think of currency stabilization as a matter of making loans.
two institutions, the Fund and the Bank. Early in our
That is not our conception of the problem at all. We think
discussions, we considered joining the functions of the
the issue goes such deeper. We believe the essential aspect
Bank and the Fund in one establishment. We found good
of the Fund to be the setting of standards for fair dealing
on the exchanges. Giving help to some countries to maintain
reasons for not doing that. I think you may want to know
our standards once they are set is incidental to the attainment
what these reasons were, now that the question has again
of this main objective. Long-term stabilization loans to a few
been raised.
countries would be a poor substitute for broad and constant
The two deal with entirely different problems. They
will need staffs with entirely different training.
1
cooperation in meeting international currency problems.
RECISION
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101-K
0
preparation for war.
That can be secured only through a Fund which is concerned
exclusively with bringing all countries together to work
for currency stability.
The fundamental reason for monetary disorder after the
last war was failure to understand the necessity for
international cooperation in dealing with this problem.
This is how it worked. In 1932, when everyone found
markets very scarce, Germany agreed with some Balkan countries
to buy most of their wheat and raw materials at good prices
in marks. But the Balkan merchant did not get marks. These
were paid into the Reichabank. The Balkan countries then
had to buy goods in Germany to get the value of those marks.
Each country was left to its own devices. Before 1922
The Balkan importer paid into his central bank the price of
only 8 countries were on the gold standard. By 1928,
the German goods, and only then could the seller of the
through real sacrifices, about 45 had made & precarious
return to gold -- some with the help of stabilization loans.
But the first serious pressure was too much for them. The
wolf pack of exchange speculators was on the prowl, seeking
out weak currencies to destroy, and adding immeasurably to
the difficulties of the countries which sought individually
to maintain currency stability. One by one countries were
forced off the gold standard until by 1936 only 7 were left.
The world was back where it had started 14 years before.
But that doesn't tell the whole story. This was
an era of economic warfare. The weapons were currency
manipulation and other forms of discrimination. The aim of
each country was to save itself at the expense of others.
The bilateral clearing agreement was the most destructive
of these weapons, because it was in fact part of Germany's
wheat or other raw material get his money.
As a matter of policy Germany bought much and sold
little. She was generally a year behind in meeting clearing
obligations, and then frequently forced the Balkans to take
articles they didn't need or want simply so they could pay
their OWN exporters. Too often they got harmonicas and
aspirin when they needed locomotives and dynamos.
Through these agreements, Germany tied the economy of
neighboring countries to the German war machine BO that
when she began her war she would have access to raw
materials. In self defense, other nations were forced
to adopt similar measures.
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That was the system under which Americans used to
lend money abroad. By 1939, not counting the World War I
(
use before the war. In the past when countries needed
foreign capital they too often had to give away some of
their independence to get it. And they usually paid
high interest rates in the bargain.
The International Bank will make it possible for
countries to obtain capital for worthwhile, productive
For instance, a great many of you will remember
projects. The Bank will guarantee loans for such purposes
Kreuger and Toll. Frequently when a European country was
so that they will be attractive to the private investor on
seeking foreign loans, Kreuger would turn up in the
reasonable terms. And there will be no need for a country
Finance Minister's office. He was glad to oblige with
to give the lender a match monopoly or a salt monopoly,
quite a large loan. All he asked was the country's match
or to pledge its sovereignty in the form of an assignment
monopoly, and of course profitable rates, too. Kreuger
of custom revenues. There will be no need for these methods
then sold not only the bonds be took for the loan, but
because the Bank will undertake loans only where the
forged duplicate sets of them as well. Some of you in
project is productive, only where the charges are fair,
and only where the borrower can service the loan.
this audience may still hold Kreuger and Toll Securities.
You know what they are worth.
Kreuger was not the only operator in those days.
'There is urgent need for such productive investment.
We cannot have a prompt restoration of the producing and
Undeveloped countries seeking foreign loans frequently
consuming power of the world while Europe is wrecked and
secured from other sources loans that cost them too much
great areas of the earth remain undeveloped.
and were often tainted with fraud. Many of them were
To sun up in simple terms: the Bank is a cooperative
squandered on projects which could never pay off. There
method of providing capital for productive purposes to
was little or no supervision to make sure the money was spent
countries that need capital for reconstruction and development.
for productive purposes. In too many cases there was little
prospect that the investor would get his money back.
4
loans, more than 40 cents of every dollar they had invested
in foreign countries was in default.
PRECISION
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101-N
-9-
10
No major commodity lost so large a part of its foreign
(
Its purpose is to safeguard the interests of the borrower
market as wheat. In the years 1925-1928 the United States
and the investor. That's what the Bank is and what the
exported $239 million worth a year, which was 21 per cent
Bank does. And you can see that its business is lending,
of production. In 1931-34, the ora of exchange discrimination,
not monetary stabilization.
this had fallen to $38 million, which was only 8 per cent
of our production.
The Bretton Woods program offers currency stability
to facilitate trade, and credit protection for sound
As a result, wheat growers were forced to dump their
international loans. Both will benefit the American people
crops at any price. The farmer in the Red River Valley
through an increased and more stable market for their
was being squeezed, as truly as if he had caught his hand
products.
in & threshing machine, by the exchange rates of the rupee
The experience of our generation has proved to us
and the yuan and the peso. The instability of foreign
that a well balanced prosperity for our country depends
currencies was one of the chief reasons why No. 1 Dark
on 8 vigorous foreign trade. Ten per cent of our jobs in
Northern, which sold for $1.64 a bushel in Minneapolis in
agriculture and industry depend directly upon international
May, 1928, brought 49 cents in December, 1932. It helps
commerce. That Was true in the high employment years of
explain why flour sold here for $8.68 a barrel in May,
1929 and 1937, but the sharp decline in 1932 had much to
1928, and $4.02 in November, 1932.
do with the severity of the depression.
Of course the Bretton Woods agreements by themselves
Let's see what discriminatory exchange regulations
are not going to restore our foreign markets for wheat or
and fluctuating currency meant to the Twin Cities and the
anything else. But they are a necessary first step toward
Northweat. Countries abroad found it impossible to buy
getting and keeping those markets for thousands of
our wheat and flour, and the same was true of our exports
American products. New exchange restrictions anywhere in
the world can close them.
of hardware and of machinery.
$
1
PRECISION
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11
12
We have all seen it happen. Our exports of commodities
and of manufactured goods reached a high point between the
workmanlike program because they knew that we must either
two wars, but in the 30s our farmers and our manufacturers
create an orderly system now or sink back later into the
alike fought a losing and hopeless battle to restore their
chaos of individual expedients and devil-take-the-hindmost.
export sales in the face of depreciated currencies, quotas
They were animated by the new international spirit.
Let me give you perhaps the most dramatic example
and other barriers set up against us. The men thrown out
of jobs because of this lost trade became very poor
that occurred. In the list of subscriptions to the Bank,
customers for all the products of American industry and
Russia had been put down for $900 millions. This is a
agriculture. All these restrictions had much to do with
tremendous sum for a country whose richest area -- bigger
intensifying and prolonging the great depression.
than any other country in Europe -- has been ravaged with
the utmost brutality by the Nasis. On the last day of the
To prevent this chain of disasters being repeated
after this war is it not perfectly plain that the first
0
conference, after the subscriptions were closed and all
thing we need is a sincere desire on the part of all
countries had agreed on the allocation of subscriptions,
governments to work together to prevent them? The Bretton
Russia announced that she would increase her subscription
Woods agreements are the expression of & unanimous will on
the part of the 44 United Nations to work together to that
to tweive hundred million dollars. Russia assumed that
additional $300 million obligation, not because there could
be any direct advantage to the Soviet Union, but in order to
end.
I wish it were possible to describe the manner in
create a stronger Bank with a larger capital, able to
which that will WSB expressed at Bretton Woods by represents-
contribute that much more to the rebuilding of the world.
tives of 44 nations covering the whole range of the world
This 18 a symbol of her determination to cooperate
in size, stage of industrialism, customs and economic
wholeheartedly with us and the other United Nations in the
task of reconstruction and development.
conditions. They succeeded in hammering out 6 thoroughly
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- 13 The Bretton Woods agreements were conceived in the
14 -
It is because I feel deeply that the Bretton Woods
very practical spirit of cooperation. They represent the
agreements are so much a part of this new spirit, are so
first such set of resolutions presented to our people for
essential to its development, that I have been urging
achievement of the ideals for which we are fighting. They
their acceptance. We are called upon in these times to
can be an inspiration to all the other meetings of the
express and to act upon our faith in mankind. At Bretton
United Nations and an example of how the most difficult
problems can be overcome through mutual good will.
The legislation to carry out the Bretton Woods program
is now before Congress. I hope that time will permit the
Woods, we set our hands to & very real expression of our
faith in the capacity of men to work together as partners
in peace.
I believe the American people are determined for
House to act favorably on it before the United Nations
their part to do just that. Our generation has been given
delegates gather at San Francisco on April 25. This would
a new vision of the world. It is as though we were seeing
show that the United States is thoroughly in earnest about
the earth whole for the first time. Perhaps you remember
joining with other nations to achieve international
how that WAS when you made your first hirplane trip.
security.
At Bretton Woods we proved that delegates from the
Soaring over our country, you got a new perspective of it,
. new glimpse of its magnificence and the interdependence
governments of most of the world could meet together and
of its people. And it might have been that as the plane
consider ways of helping each other. This is the inter-
flew in from the West, you were in darkness, but ahead you
national spirit of the United Nations, the ideal for which
could see the dawn.
Americans are dying today. It is our task at home to live
for that ideal.
We of the United Nations know that although the night
is still all around us, we will come out into the light
of a new day with its new opportunities for creating a
better and safer world.
MICROFILM
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DIVISION OF
CENTRAL SERVICES
TELEGRAPH SECTION
INCOMING
DEPARTMENT
OF
TELEGRAM
STATE
0
House
DEPARTMENT OF STATE
Dated March 9, 1945
Rea'd 7:43 0.00g 10th
Scoretary of State,
CENTRAL SERVICES
Washington.
March 12, 1944
FROM:
Stockholm
102
DIVISION
TO:
PEM-33
No paraphrase
necessary
(SECRET)
The Honorable Henry Morgenthau,Jr.,
Secretary of the Treasury.
Raymond H. Geist, Chief of the
Division of Central Services.
TOP SECRET
US URDENT
932, March 9, midnight
olsen had a two-hour discussion alone with Fritz
A copy of this telegram has been
given personally to the Secretary of
War, the Secretary of the Navy, and to
General Magruder of the Office of
Strategic Services.
yesterday afternoon on the prearranged understanding
(
PRECISION
that the discussion was entirely a personal exchange of
viewn on humanitarian problems and in no way to be con=
strued 0.0 official (Legation's 876, March 7, noon).
olsen inquired why Mcase had contnoted him and the
0
latter replied that Kleist (close associate of Himmer)
bad suggested it in Berlin the past week sa well 0.8 "other
important German authorities". Olsto inquired what position House held in German Government and he replied that
he a member of the Gernan Foreign office with direct
lines to the top officials, he emphasized the very top,
in GERDAN Government. He stated that at outbreak of war,
he had been attached to German Embassy in London in a
public relations capacity and that for a while thereafter,
he was
PRECISION
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105
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-2- #932, March 9, midnight, from Stockholm.
D
-3- #932, March P, midnight, from Stookholm.
he was the intermediary between the Ocrona and British
Three. He had actively opposed the blitz DD London
Governments. He rade reference to personal discussions
with Churchill in 1939 and quoted certain comments made by
as a major blunder in military strategy, almost at risk
the latter during such discussions. He added that since
of his neck although later he was vindicated EVEN in
his return to Berlin, he had pursued his independent oonvictions on war policies and that such convictions had on
German military circles.
Heart then ovung into the first phase of his major
points. He said that it was generally known in Berlin
occasion placed him in considerable personal jeopardy.
Olsen inquired what these convictions were and the follow-
that Olsen could be approached on humanitarian problems
and that he was prepared to say, EYCO at the price of
ing were mentioned.
revealing strategic military information, that high GEPHAN
circles were becoming increasingly ewart that they had
one. He had pressed for a moderate and circumspect
C
treatment of primoners of war in opposition to a high
military group (he was unvilling to identify then) who were
disposed to exterminate then through ill-treatment and
pressing problems of their own of a similar nature, the
went on to say that illied bombing of Germany vas exacting
neglect. He added that he could say without exaggtration
that the lives of "several hundred thousand" were saved
a fearful toll on civilian population and that certain
through his Efforts within high German circles. HE stated
most receptive to any broad agreement whi oh would
that while prisoners of vor had to work very hard, and
"humanist the war". Olsen asked for clarification on the
certainly WERE not overfed, as a group they would compare
tern and HEASE supplied the following.
well with the average Derman population.
Two. Hr had pressed vigorously against precaution
of racial and other minority groups and believed his
efforts had been helpful, at least within Germany.
Three.
(
0
key officials in German High Consand were at present time
Allied bombing in recent months has been less and
less effective from a military point of view, due, he
said, to the rapid obliteration of military war agreement
with the result that destruction of civilian life and
property has become increasingly top heavy. He stated that
at present 65% of the German population homeless and
living
PRECISION
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107
$
-4- #932, March 9, midnight, from Stockholm.
0
living in utmost nisery. He added that, while he was
unsure of Russian or British attitude, he could not
-5- #932, March 9, midnight, from Stookholm.
without any military consequence whatever, was the
believe the United States would direct such wanton
slaughter of thousands of confined war invalida. He said
destruction against innocent civilions children, MODER
and old MED it WG S added) as a toll for such limited
that these were only a few examples of a senseless massacri
of civilians which, he added, has already included
military objectives. Olden replied that the viewa of
thousands of Allied prisoners of war and he concluded by
United States government on human surfare are quitt
stating that If these incidents continue, he is fearful
fully chronicled and that any of the Allies have a fairly
of the steps which might be taken both by German authorities
obvious choice between dropping a bonb on a child or
and civilians.
military depot but that serial varfart, and the defend
C
against it, necessarily spread the hazard. Heast agreed
in principle but mentioned certain recent illied bombings.
H stated that in addition to bonbing Dreader, illied
plance strafted a wide arta of temporary Red Cross
quarters (plainly marked he said) which were housing
refugee women and children and killed not less than ten
thousand of them. He added that the recent raid on
Sasanitz was nothing short of murder of = defenacions
group. He stated that anybody knowing anything at all
about targets in Germany would have known that this was
a large Red Cross SPED for war wounded without a military
installation within milts. He said that the only result,
apart from a 24-hour interruption of a railway service
of thout
Reverting to the 65% of civilian population homeless
and displaced as a result of bombing action, Olnen asked
0
Heast If that result was not in itself of no small
consequence considering the drag it must exert on the
German war effort. Hease replied this was entirely
dependent on what type of long-range vicu one took of
the war. He anid practically EVERY Derman including the
High Command had no doubts that the var #55 lost. These
same people, however, feel Allits are over-optimistic
and not prepared to reckon their contracted striking
power and reserves of war materials to make closing days
of the war as expensive as possible.
Olsen then naked Heant how It was possible that
German civilian population could continue such a hopeless
struggle
(
109
108
o
-6- #932, March 9, midnight, from Stockholm,
-7- #932, March 9, midnight, from Stockholm.
struggle under terrible privation without internal
revolt. Hease replied it was in part the some military
any with greatest assurance that these individuals were
blunder made by Germans in their Blitz on London. Like
at the present moment. olsen inquired just what German
the British, German civilians are fighting mad. In
High Command WAS proposing as step to "humanizing the
addition Hease added, Allies have actually delivered
war". least said a quickly-instituted agreement, along
lines of the Deneva Convention, for protection of civilian
receptive to any suggestions, at least, he emphasized,
completely to Mazi domination 65% of the German population
populations was desired. Olsen inquired what practical
measures Grrnana could propose, giving full effect to the
(these people are living on day-to-day bosis without
food, clothing or shelter except that supplied by the
No al Command. Whether they are bonbed out of one city
contracting German defense lines and the MORE or less
to another does not now make much difference, they are
inseparable intermingling of civilians and military
homeless anyhow, but the important item in their daily
O
life is that their existence is supplied by the Gernan
authorities. Consequently sheer personal energency of
their day-to-day thinking provides no opportunity of
organized revolt.
Reverting again to humanized warfare", Olden
suggested to Heant that he should be fairly convinced,
or he would not be in Stookholm, that Americans did not
wish to destroy innocent civilians during warfore, but
that it would be difficult for Olsen to convince
Americans that Heast's superiors specifically Himmler,
Ribbentrop, Goebbela and others had any serious
inclinations in that direction. Heast stated he could
say with
C
personnel in legitimate combat APERS. The reply was vague
O
except Heasen repeated assurance that any reasonable
basis would be accepted, so olsen inquired whether German
High Company perhaps had in mind 0 limited strice of
demilitarized safety zones. This apparently found favor.
olsen then inquired what steps German authorities
were willing to take to "hummier the war". HEADE stated
he could any without hesitation, and was already
authorized to say, that Ocerans would permit all JEWS to
leave Germany, as soon as technical details could be
worked out. He stated there were "several hundred
thousand". In response to inquiry whether this included
all Jews of all ages, he anid is included every (repeat
every) Jew in Germany. Olsen stated that while
United States
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110
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D
-8- #932, March 9, midnight, from Stookholm,
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United States public opinion is appalled at the MASSAOPE
of world PEACE and international security organization was
and prosecution of Jews in Europe, there are also other
nonsense since Russis would not only deatros all hopes of
groups to whom death is Equally painful and objectionable
peace and order in Europe for years to come perhaps
particularly prisoners of war and civilian interneen.
centurits but would be a DENNOR to world peace unparalliled
Inquiry was made 0.0 to what steps Ocrusna could take to
in history, Et referred to Germshy's colomani mistake in
provide these groups with protection certainly not less
than that afforded German civilian noneo:botants. treat
undercatinating Russian military potential and foot that
replied that while he had no authorized commitments on
strength than rest of Allira have under arms. He stated
it should be obvious that in event of future serious dis-
EVED today Russians have within Europe greater military
this point, hr could personally guarantee that
turbance in Europe, which he foreaat 18 inevitable and
(i.) Primoner of war exchange could be arranged
inmediately on largest scale possible consistent with
constant, no security organization whatever its size could
O
whatEver basis Allica themselves wish to propose.
(B) Remainder be recoved to safety of anne
CODE with Russia. He then introduced the familiar argument
that British and ,merioans were sealing their own future
by destroying Germany and its civilian population.
Olsen suggested that if responsible circles is
"demilitorized safety sone" provided for Gertan civilians,
under supervision of International Red Cross.
Germany shared Heant's views as to hopeless situation
is secondary frequently injected phose of the CONVET
nation involved Hease's bitter comments regarding the
within Germany and Europe's dark future, It USD rather
Russians, which olsen frequently interrupted with comment
resariable that conclusion had not been reached that
that they were not at 11 related to !this humanitarian
unconditional surrender what Dermany's most hopeful
discussion". However, Heast's comments may be interesting
imediate prospect. HEODE replied there wes not 0 single
He stated British and Americans have very little
responsible official who entertained EVEN the faintest
time left to realize their fotal bistake in actting Russis
thought of surrender and it === quite improbable that
even further intensification of vor strain would produce
up 08 ruler of Europe. He added that United States talk
of world
any change
O
(
112
-10- #932, March 9, midnight, from Stookholm.
113
0
-11- #932, March 9, midnight, from Stockholm.
any change in present determination to continue war to the
German industry and delivering plant Equipment as
end. He added that civilian population had idention1
reparations. He said EVER a German child knew there no
attitude, largely because Allied propaganda of unconditional
longer was any German industry. He added that except
surrender and peace terus had been (normous psychological
for a panic-stricken, honeless and hungry civilian popula-
misfire, He mentioned specifically the discussion of
tion, entire Germany was a highly nobile war machine
partition of Germany, destroying its technical skill,
depriving it of self-government, sending ten million
functioning largtly on its reserves and that only thing
left in Germany after the war would be a defented and
Germans to rebuild Russia (which he added the Russians
destroyed war machine. Hease concluded by stating that
destroyed themselves and boasted of it at the time) and
to be perfectly frank, be considered the situation more
punishing vor criminals. The latter, he said, line been
most seriously considered by civilian population and has
C
been construed (supported by propaganda) to include any
or leas hopeless, that there WERE no surrender terms
which Germans could accept with any assurance and no
0
and all the thirty-five million Nozi party neebers. He
stated most Germana felt like hinseIf and that to support
his Government in time of war, whether it was right or
possibility of Allice agreeing to negotiated peace. That
is why, he added, he has come to Stookholm fully
authorized to make strongest plan for BODE agreement to
enable balance of war to be fought without further whole-
wrong, certainly was no war crime. Furthermort, he added
solt slaughter of innocent and defense noncombotents.
the Ocreens had already found precedent in reports from
He closed by stating that while he realized difficultice
Bulgaria, Rusania and Hungary as to what "punishment of
of getting prompt agreement among Allite of any such
war oriminals" means then Russiana have upper hand. It
broad program, he hoped something could be worked out
has been used by them, he said, simply as device to
which could hardly fail to SAVE perhaps millions of lives.
completely exterminate the middle and upper classes. He
added that at least Allies supplied touch of comedy to
He stated the Jeve were not specifically advanced for
bargaining purposes and were not pawns of whatever
these discussions and referred to proposals of diamontling
developed from the discussions. He added his assurance
German
based
(
(
115
114
TREASURY DEPARTMENT
0
INTER OFFICE COMMUNICATION
CONF IDENTIAL
DATE Mar. 12, 1945
-12- #932, March 9, midnight, from Stockholm.
Secretary orgenthau
TO
Mr. Hand
FROM
based on personal knowledge of current German policy that
Subject:
Germans had definitely abandoned any idea of mistreating
The Business Situation,
Week ending March 10, 1945
JEWS further and that they would be no worst nor better
Summary
off than any other civilian group in Germany at present.
Stook market: Stook prices in the latter part of last week
He said he had no PERSON to believe there would be any
suffered the sharpest deal ine since 1943, and despite a
moderate rally on Saturday the Dow-Jones average of 65
change in such policy. I would appreciate urgent instructions in witter and whether it is draired Olsen pursue
stocks closed 2 percent lower than in the previous week. A
revival of reconversion fears in view of rapid war developnents in Europe, together with uncertainties engendered by
talk of higher margin requirements and henvier capital gains
taxes, were important factors in the decline. Industrial
stock prices in London last week were firm.
his conversation with Heast. Department may wish to
consider as saftguard against possibility of this discussion having been initiated for purposes of compromising
0
C
us with Russians, bringing it to Russions' attention
National incoue: Payments declined less than seasonally in
January, and the annual rate of payments rose to a new high
of $162.1 billions from $160 billions in the previous
month. Disbursements for military pay showed a further rise,
while both each farm income and factory payrolle decreased
less than seasonally,
immediately. olsen has impression he is somewhat under
a cloud in certain Russian ciroles (Communist) locally
Coal situation: Reflecting heavy industrial demande and severe
weather conditions, soft coal consumption in January rose
above
million tons to the highest level
record.
the face of heavy demands, soft coal production thus far in
1945 has run consistently below year-earlier levels, with
consulative output through the week ended March 3 failing
7 percent below the corresponding period of 1944.
Commodity prices: Putures prices broke sharply last Thursday
on news of the crossing of the Rhine, but a really at the
end of the week recovered about one-third of the losses.
Despite the werkness in futures prices, soot markets showed
Cash
change.
practically
whent
prices have been strong
nt ceiling levels in recent weeks due to a tight supply
situation caused by shortages of box care.
because of past underground rescue operations in Baltic.
on
59
JOHNSON
LMS
In
no
Apple purchase program: An apple purchase program has been
0
announced by the WFA as an outlet for the large supplies of
less desirable apples in the record storage holdings in
enstern states. The apples purchased will be distributed
to school lunch programe, charitable institutions and other
approved groups.
(
117
116
-3C
Stook prices decline sharoly
The probable extent of outs in war production at the
end of the war in Europe has been the subject of considerable
conjecture in recent months, but, on the basis of a statement
from the WPB early last week any definite figures on outbacks at V-E day which have thus far appeared would appear
to be preasture. Hiland G. Batcheller, Chief of Operations
of the WPB, commented on probable outbacks in part As
After moving up to new highs for the year earlier in
the week, industrial stock prices on Thursday suffered the
severeat decline since November 1943. The crossing of the
Rhine by U. 3. troops revived fears over reconversion problems
while threats of higher margin requirements and heavier capital
gains taxes created additional market uncertainty. Commodity
futures and second-grade bond prices also joined in the decline.
Further sharp losses occurred in securities prices on Friday,
follows: *I have not yet seen the Army's military requirements for the period after the German war ends, and I doubt
that Mr. Krug has seen then in their final form. Until
those requirements are laid out on a table and screened, I
while the commodity markets steadied.
don't see how anybody can guess at the extent of possible
war production outbacks.
Stock prices rellied moderntely on Saturday but at
the close the industrial and railroad stock average were
about 2 percent and percent, respectively, below weekearlier levels. (See Chart 1.) The Dow-Jones average the
of 65 stocks showed a net Inoline of 2 percent during
week. In sharp contrast to the unsettlement in New York,
industrial stock prices in London a: the close of the
week were fractionally higher than a week earlier.
Annual rate of income payments shown further gain
Due largely to the usual December to January drop in
interest and dividend disbursements, total income payments
declined in January. However, the decrease in total payments
WPB organized to handle outbroke
in war contracts
As the Allied armies ave further into Germany, concern
undoubtedly will increase over outbroke in var contracts and
economic dislocations expected to follow the end of the ear
in Europe. In this connection the WPB hns outlined n prowar
(
was
less
than
seasonal
and
the
annual
rate
of
payments
rose to a new high of $162.1 billions from $160.5 billions
in the previous month. (See Chart 2. Disbursements for
military pay during January showed a further rise, while
factory payrolls and cash farm income declined less than
seasonally.
Total income payments in January were 6 percent above
year-earlier levels, with all major income components showing gains except payments for salaries and wages in commodity
producing industries (chiefly anufacturing). (Refer to
(inChart 2. Payments for Government salaries and wages
cluding military pay) were 14 percent higher than in
January 1944. and accounted for 19 percent of total income
handling outbacks in
for
effective immediately
Than,
contracts. A Production Readjustment Counittee made un of
representatives of the military services, WPB, W/O and other
war agencies, has been set up to handle all un Jor oneen of
outbacks, and it is intended that all members of this
consittee be provided with copies of outbages contemplated
by the military services.
payments during the month.
Standards for frinke pay increases established
In view of the avoved intention of the WLB to maintain
the
"Little Steel* wage formula for basic wage rates, concessions to workers in recent uage disputes to an increasing
extent have been in the nature of fringe awards. Since
former Stabilization Director Vinson had shown & tendency
to be less lenient than the WLB in granting these awards,
some observers have interpreted the appointment of Director
W. H. Davis as foreshadowing more liberal wage policy.
While it remains to be seen whether this interpretation is
correct, it should be noted that before retiring AB Stabilization Director last week, Mr. Vinson issued an order
establishing certain standards for fringe pay adjustments.
The military procurement agencies are expected under
the terms of this program to live war plants at least 7 days
notice before the out off date in all contracts involving
more than 100 000 per month. Moreover, every effort is
to be unde to direct new war orders into plants where
facilities and labor have been released by outbacks. Managenent, labor and the WHO are to be consulted where large
layoffe are involved. As part of the program, a new reporting service of idle manufacturing facilities has been
net up and an "open capacity list" of plant facilities will
be issued on a bi-monthly bacis.
C
(
MPRECISION TRADE MARK
MICROSTATA
MICROFILM ROLL NO
119
118
of commodities by the Government, had a weakening influence
on distant cotton futures. (The current cotton purchase
program is due to expire June 30 of this year.)
C
The adjustments covered by the order relate to vacation
provisions, shift differentials,
and job
While themerit
orderincreases
failed to grant
the
reolnsnifiontions.
making
fringein
awards
as the Board
WLB
an
much
Intitude
n
relaxation
of
desired, at the same time it represented awards.
Mr. Vinson's previous stand against fringe pay
Coal output below year-earlier levels
Meanwhile, wage negotiations continue between with the
United Mine Workers Union and the conl operators, of IL
showing concern over the possibility work
consumers at the mines. Due to severe weather conditions
stoppage industrial demands, soft coal consumption in
and heavy tons. This was an increase
January rose above 59 million month and the highest
of 4 million tons above the previous stocks at the
monthly consumption on record. Soft coal
beginning of March totaled 49.7 million tons as compared
to 57.2 million tons A month earlier.
the face of heavy demands, and declining stocks
In goal production thus far in 1945 has fallen consistently through
soft below earlier
levels,
3 showing a with cumulative decline of output 7 percent from
March
ended
the the week corresponding period in 1944. (See Chart 3.)
(
War news depresses commodity futures
crossing of the Rhine by American forces last but
The touched off heavy selling in commodity futures,
week markets continued generally firm. The Dow-Jones
spot index last Thursday dropped percent, the sharpest rally
futures day's decline in more than three years but a The
single at the end of the week cancelled some of the loss. of
index at the close of the week showed a net loss
0.7 percent. (See Chart 4.
In addition to favorable war news, another factor by the
tending to depress futures prices was Federation a statement that
president of the American Farm Bureau seeking legislation
to that revise organization the parity had forwula decided *because against of the by other danger groups. of
the door to inflationary demands before a
Moreover, opening Food Administrator Jones' testimony indicated a
committee last week, in which he with
Senate for supporting agricultural prices and
Government preference loans rather than outright buying selling
(
With a tight supply position holding most commodity
prices at ceiling levels, spot markets showed little change
last week despite the weakness of the futures markets. The
BLS index of 28 basic commodities receded a trifle from the
peak reached in the previous week. (See Chart 5. Prices
quoted for wheat, corn, and cotton showed alight declines.
The BLS general index of wholesale prices in the week
ended March 3 recovered the small decline of the preceding
week, rising 0.2 percent to equal its wartime peak. A
sharp upturn in the markets for fresh fruits and vegetables,
together with higher prices for livestock, WILE largely
responsible for the rise. At 105.0 percent of the 1926
average, the index 10 1.5 percent higher than a year ago
and is 40 percent above the pre-mar August 1939 average.
Wheat prices held at ceiling levels by
tight supply situation
Cash whent prices have been at or close to ceiling
levels for the last four weeks due to a tight supply situation resulting from box car shortages
to move the grain.
and Kanaas
Buyers
haveCity
turned
been Cash largely prices in nominal.
the Chicago
to markets the nearby have
May futures, which have been bid up almost 9 cents per
bushel (5.4 percent) in the last four weeks.
Milla are reported to be having difficulty in obtain-
ing wheat, and in some instances have had to shut down for
short periods due to the Inck of supplies.
problem, the was week
to the have transportation
begun
Araybetween
reported120
Complicating
last
program
to ship
million and
140 million bushels for oversens uses in the next five
six months. In this connection the 000
February
take
farm-stored
regional loan wheat
offices
and 23
ontoto
over
notified
warehouse
stocks
put wheat
in its
export
position
on
the
Atlantic
Coast,
Pacific
Coast
and
at Gulf
ports.
Tightening lard supply n potential threat
Ebread price structure
The possible effect of the tightening supplies of
lard and other fats on the baking industry and the bread
or
PRECISION
TRADE MARK
MICROSTAT
MICROFILM
ROLL NO
120
121
-6price structure has been causing some concern in recent
weeks. While production costs of bakeries have continued
to rise during the past three years no general increase
in bread prices has occurred since the second half of
1941. The increased costs of production have been offeet
to sone extent by lower distribution costs resulting from
increased volume and from the elimination of certain
selling practices. Moreover, price increnses have been
permitted for cakes, and profits derived from this business
have helped to maintain bakery earnings.
If lard supplies should be reduced substantially,
the bakers volume of business would very likely be
curtailed, particularly in the more profitable cake
lines. If profits should fall below those of the base
years 1936-39, the OPA would be required to take action
to rectify the situation. This night take the form
either of price increases or a subsidy. The OPA is
reported to be investigating the problem, but nothing is
likely to be done until the effects of the smaller lard
supplies on bakers' volume and profit margins become
more apparent.
RFC food subsidies for finon1 1946
approved by Senate Committee
The continuation of the ment, butter and flour
subsidies, AD well ao rubber and metal subsidies by the
RFC, in fisor) year 1946 was authorized in a bill approved
by the Senate Banking and Currency Committee last week.
(The Price Stabilization Extension Act of 1944 banned
food subsidien of the consumer type after June 30, 1945
unless specific authorized by Congress.) Submidy
authorizations contained in the bill amount to 31,430 nillions, including the following: meat, 8560 millions; butter,
3100 millions; flour $190 millions; petroleum and products,
1290 millions; copper lead and zino 388 millions; rubber,
$60 millions; and materials or consodities other than
rubber produced outside of the United States, 880 millions.
Uncertainty concerning the continuation of the flour
subsidy has tended to disrupt flour onles in recent weeks.
Mills have been refusing to accept orders which they cannot
Unless
grind out before the current subsidy expires June 30.
this tainty is resolved. flour production any be
affected. Failure to extend the flour subsidy would probably necessitate an upward revision in ceiling prices for
both flour and bread.
-70
Apple purchase progress announced by the WFA
An apple purchase
announcedprices
by theand
WFA
OR aprogram
mennaMILE
of supporting
of
The
early this month the disposal of snaller and less desirable
facilitating from the record stocks in eastern states
apples apples purchased will be distributed to school lunch
programs, charitable institutions and other approved
crowns. Purchases will be made by WFA state field offices and
in all the eastern states from Virginia northward, all
in other states if conditions warrant. Practically this
varieties of winter apples normally in storage at
time of year will be included in the program.
The WFA will purchase U. S. No. bushel, 1 apples, and combination to 24
U. S. No. 1 and U. 5. both prices on an
inches in dinneter, at Utility $1.50 per (or better), 24 inches
minimum dismeter, at $1.75 per bushel, must be
f.o.b. care or trucks basis. The apples in
enerally firm ripe and packed fairly tightly will new be
or secondhand containers. small allowance
made for #light sould and deory provided that no single
package contains more than 4 percent.
While the apple crop 1 not year ma only slightly
then avere the number of apples placed in
larger wn d exceptionally large. Cold storage holdings
storage England, Middle and South Atlantic states
in the New 12,101 000 bushels, the largest on
on February
1 totaled
than double that of a year
record
for that date
and more
stocks
The 1938-43 average for that date WILL only the
ago. 9,810,000 bushels. An unusually large part of last
this year is of the smaller sizes, the result of
summer's drought.
to
The response to the program thus for appears
been quite heavy. Department of Agriculture
have anid last week that more apples will probably While
officials offered for sale than the program can absorb.
be can probably handle no more than about
the program cars, they indicated, it is expected to remove
1,000 from the market most of the smaller and less marketable
apples.
Railronda haspered by severe operating
conditions and manpower shortage
aftermath of the winter traffic tie-ups, the
(
railronds As an last week imposed a 5-day enbargo on LCL freight
PRECISION
TRADE MARK
MICROSTAT
MICROFILM
ROLL NO
122
-8shipments destined to points in the East, South and
Hiddle West. All traffic moving on Government bills
of lading, AS well as drugs and medicines, were exempted from the embargo, which was imposed to enable
carriers to work off an accusulation of LCL freight.
While it who estimated early last week that the railroads were about 5 days behind on LCL shipments in
most yards, officials of the American Association of
Railronds naserted that the large backlog of freight
shipments which resulted from the heavy winter storms
THE being stendily diminished.
In addition to the swollen freight traffic volume,
the rellronds in 1944 had by for the largest passenger
traffic volume in history. In this connection, an
official of the ODT forecast 1 set week that railroad
passenger traffic will grow heavier rather than lighter
for several months after the end of the MAT in Europe.
Among other fentures of the #artine railroad traffic
boom, it may be noted that
taxes imposed on transand the
persons
to the Government.
portation substantinl of revenues property have provided In the very calendar
year 1944 the tax on transportation of property yielded
8221 millions, while the tax on transportation of
persons yielded 3202 millions. This latter figure
would have been 3223 millions and the current tax rate
been in effect throughout the entire year.
According to fijures released last week, total ran
operating revenues of Class I railroads in January
1 percent above year-earlier levels, but adverse
operating conditions and increased costs pushed opennting expenses 5 percent above those of the corresponding
month in 1944. As 0 result, net railway operating income (earnings after taxes but before charges) dropped
14 percent below the incode in January 1944. (See
Chart 6.1 Net income after fixed charges is estimated
to show a 12 percent decline.
RECISION
TRADE MARK
MICROSTAT
NG.U.S.PAT.OFF
MICROFILM
Chart
Chart
STOCK PRICES. DOW-JONES AVERAGES
1
Daily
NATIONAL INCOME PAYMENTS AND COMPONENTS
1940
1939
1941
942
244
1945
1945
DOLLARS
DOLLARS
DOLLARS
Annual Rate. by months
30 Industrial Stocks
170
160
155
ISO
140
150
140
130
130
145
120
120
140
110
110
54
100
100
20 Railroads
90
so
50
00
80
TO
46
TO
1939
1940
1544
1943
1942
1945
Dollar Totals for Selected Components Jan 1944 and Jon 1945
42
DOLLARS
-
4.5
30
40
Utilities
DOLLARS
Billows
Jee 1945
4.5
40
1.5
15
24
30
3.0
26
2.5
2.5
10
20
24
1.5
10
Volume of Trading
0
Distributive
1945
Commody Pro.
Salaries
PRECISION
MICROSTAT
TRADE MARK
MICROFILM
REG.U.S.PAT.OR
Chart 4
Chart 3
125
126
BITUMINOUS COAL PRODUCTION
SHORT
SHORT
26
28
24
24
1945
20
20
1942
:
12
16
as
6
4
0
o
JAN
MAR
MAY
JULY
SEPT
NOV.
Source Bureau of Mines
C-454-8
PERCENT
101
100
107
105
104
103
102
106
Only differ Service -
DOLLARS
120
100
40
20
140
Millions
160
60
180
80
o
JAN
JAN
WEEKLY
28 Basic Commodities B.L. s
1945
MAR
FEB
MAR
889 Commodities BLS
MAY
WHOLESALE COMMODITY PRICES
Net Railway Operating Income. Class I Railroads
*Earnings after - - Before inferest and other fised charges
APR
1944
1944
JULY
RAILROAD EARNINGS
MAY
/935-39 Average
SEPT
JUNE
1926.100
1944
JULY
NOV
AUG
JAN
1942
SEPT
OCT
MAR
1945
1945
NOV
MAY
DEC
PERCENT
DOLLARS
G-483-9
Millions
100
40
60
o
120
140
160
180
so
C
20
100
01
102
103
04
105
106
107
I
:
130
129
-2-
TREASURY DEPARTMENT
0
WASHINGTON 25
Medical and surgical supplies totaling 116.000
separate items, mirplus from World War I, are being offered
for sale.
March 12, 1945
To:
UNITED 18 considering acquiring 390 ambulance bodies
from surplus stocks.
Secretary Morgenthau
From: J. W. Pable
The Monarch Coin Machine Company of Chicago has
purchased 695 electric training machine guns at $134.50
each. These runu will be converted presumably to use in
amandment centers.
The following is a summary 01 significant developnents in the Surplus Property and Procurement offices for
the week ending Fabruary 24, 1945:
A sales program is being developed with respect to
9,076 portable electric lighting chosts which are designed
to hold insulators, polo brackets and similar equipment.
Surplus Property:
(
(
A spot sale 01 construction equipment at Fourney,
Nebraaka, resulted in the disposal or 1,100 units for 0
total of $486,000. The sale was attended by approximately
1,500 persons, representing 327 regular dealors in construction equipment. Additional spot sains or construction
equipment have been scheduled for February, March and the
first part of April.
The Army has Revised us OI its intention to withdraw
five million of the small Carlicle bancages, which were the
subject of considerable publicity when offered for sale no
surplus.
An analysis or the bidg for the surplus Carlisle
dressings discloses that one high bidder will, 11 an award
Is made to it, be purchasing more than a million dollars'
worth in torms of the Government's original acquisition cost.
Consequently It will be necessary to submit the transaction
to the Attorney General for his approval under Section 20 of
the Surplus Property Act. An appropriate report is being
prepared.
In view of the inadvisability of mixing consumors
and denlers at the same cale, we requested the Rural
Electrification Administration to advise its cooperatives
not to send representst to spot salos of construction
mechinery. Arrangements have been made, however, with the
Rural :lectrification Administration to supply its COoperatives with cortain 01 their needs by negotiation.
No have naked Mr. Iroy to institute BD Investigation
Panco Corporation, Los Angeles, California, whose represantatives are mileged to be asserting that their company
In the Treasury's arent for the diaposal of surplus property.
Allegations of such assertions have como from all parts of
of
the country.
The Arma han declared as surplus automotive equipment
which It had lont to the civil Air Patrol in Nevada. The
Army Air Forces are not in a position to replace such equipment and Arro Ordnance is apparently not willing to do so.
At the request of Sonator McCarran of Nevada, which request
has some support of the Air Corps, we are considering whether
we can make the necessary equipment available to the civil
Air Patrol on a loan or similar basis.
MICROSTATI
PRECISION
MICROFILM
ROLL
NO
132
131
-8-
0
(
Unusual requisitions for the week included 180 loco-
motives, valued at 15,300,000 for civilian relief in
liberated aroas by 10,414,500 razor blades, valued
We nro collaborating with the Surplus Property Board
in the formulation or the Dourn's regulation with respect
to priorities to Federal, state and local agencies, and the
designation or dispount agencies for particular areas and
at $86,000 for Australia: 200,000 rish hooks to 06 used on
Moroccan conparcial fishing coats; 44 tone of lithium hydroxide
for France: and 250 Iona toos 01 matallic addium for Russia,
to be usag in the manufacture of totals, hydrogen,and sodium
types of property.
A 30100 program 18 being developed for surplus toxt
evenice.
books.
Uniqual purchases for the week included 052 medical
text books for 1180 by U. 5. personnel In Chungking medical
A study is being made to extermine what Agency or
agencies should bear the responsibility or determining
policies with respect to the sain of surplus property to
exporters or for export. In this connection it might be
noted that the Norwegian En5assy mas Indicated an Interest
in purchasing certain types of property listed in the
Surplus Reporter, and which is not transferred to issae-
Lond.
(
training centers, and 4,400,000 cigarettes for Polish
pricoters of WELL to DO districut by the Roc Cross. The
latter were originally Intended for 5 Swins company out word
held in Lisson DO the corpana in 1943. Subsequently
returned to the United States, thuse cigarettes wore held
in bond by the Foreign Economic AcmIristration. The exporter
failed to take action within a Ivon time and the shipment
WILD abandoned to Customs. The Foreign Economic Administra-
We assisted representatives of "Dusiness Wool" In
the preparation 01 an article on purplus property disposal.
A study is bein TACO to determine watter existing
statutes are adequate to protect the curplus property dicDosal program daninat 18185 novertising.as surplus property
which 10 not murplus, and of false representations that
particular concerns are acting 43 agents for government
Instrumentalition in the disposal of surplus.
Procurement:
Total purchases for the wack resourted to 20,061,510.47
including $25, 00,000 for Lond-Lease (schedule attached) and
261,510.47 for regular purchases.
Carloadings of Lend-Longo material for the wook
totaled 3,174 cars.
tion granted an extension of one year to the exporter, providing this cigarettes more sold to Treasury Precurement
The Trice Adjustment Board disposed of four 1943 cases
and one 1044 case. Excessive profits amounting to $1,200,000
were recovered.
After COUR ItatIon with Forsign Economic Administration
represcitatives we are propertion to submit It proposal to
the owners 01 patents nocollary to the Russian refinery pro-
foot to socire batter torms for the current plan than were
accured for earlier ones.
We are continuing the study of the proposed allocation
the Potomac Electric Tower Company of the reduction in
rates required by the Public Utilities Commission.
by
(
MICROFILM
PRECISION
ROLL N
133
At our request, Mr. Irey has Instituted an investic
gation of Clothing Reclamation Services, Inc., which to
under contract with up for the rehabilitation of used
LEND-L
TREASURY DEPARTMENT. PROCUREMENT DIVISION
clothing.
FEB 26 1945
STATEMENT OF ALLOCATIONS. OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS
AS OF FEBRUARY 24, 1945
(In Millions of Dollars)
The Department of Justice believes that the mandatory
orders for sheeting for the British Middle East requirements
Administrative
$17.4
$681.6
172.8)
(17.4)
(681.4)
118.1
116.9)
21.8
22.61
22.7
25.5)
Expenses
China
21.5
.2
83.8
21.8)
.3)
(112.1)
39.1
.7
37.8)
.7)
1
Obligations
$4700.5
82087.4
32062.8
(Purchases)
(4671.7)
(2088.8)
(2044.3)
104.8
104.3)
Deliveries to Foreign
$2991.1
$1613.3
$1291.4
26.4
(2968.6)
(1608.9)
(1274.7)
26.4)
Governments at U. S.
Ports*
-
55.6
52.9)
$16.9
$429.1
(16.7)
(422.6)
-
-
Requisitions not
$
100.3)
{
127.3
i
apaca in Philminiphia for the now headquarters of Region 3.
172.8
(2457.4)
Russia
-
Strenuous offorts CLENS boing mace to ascure adequate
$2457.4
(2628.0)
in Purchase
Cleared by N.P.B.
Administration:
$2628.0
(5957.0)
$
Requisitions
$5957.2
(
Second War Powers Act.
Allocations
Undistributed
U.K.
-
Production Board has stated its willingness to proceed
promptly with the Issuance of any necessary directivos if
YOU wish to an so. Accordingly, B letter was transmitted
to the Attorney General sooking his assurance that the
Department of Justice will proceed promptly with any nacessary enforcement action If orders are placed under the
Miscellaneous &
Total
-
should be handled under the Second war Powars Act, and War
*Deliveries to foreign governments at U. S. Ports do not include the tonnage that is
either in storage, "In-transit" storage, or in the port area for which actual receipts
have not been received from the foreign governments.
Note: Figures in parentheses are those shown on report of February 17. 1945.
60.0
58.6)
136
135
Lenden, March 12. 1945
No. 21,638
BT AIN POUCE
March 12, 1945
JB
Yarfare (Black line) Series: No. 59t
Subject: Ministry of Economic Warfare's letter
to Dutch Government concerning pronosal
Distribution of true
reading only by special
6 p.m.
arrangement. (SECHNIT W)
to Renees Dutch Jews,
Confidential For VT
AMIZIDATION
The
The Secretary of State
NEW
Washington D. G.
1028
Sir
The following for MeClelland is YEAR 446.
: have the honor to refer to this
telepras 1403 of February 8. 1948 concerning . nrc.
peral to PASSOS 1500 Jeve of Date) origin in Germany
the telegron 1593 of and
transmit herewith for the information of
Department and to Department's March 2. the
. cerry of the Ministry's letter of March
8, to the Dutch Government on this prenomal
Respectfully yours,
For the Ambaseader:
Denald 3. Galday
Third Secretary of February
licensein arfare Division
inclosure:
1. Copy letter as noted above.
(Fervarded in original and hectograph)
increased Pistribution
War Refure Heard.
711.3
AMALKOT
the your 1354, March 2. UNREA here inform - that
correspondents in this country are addressing their mail
to the category F (repeat F) group exchanges at Philippe-
villa as follows:
c/o Jean d'Are Refugee Camp
Philippeville
Algeria
List of those exchanges who actually arrived at Philippe-
ville will reach you via airgram.
STATTINIUS
(our)
137
RS-017
138
PLAIN
March 12, 1945
PO
Lisbon
Distribution of true
Dated March 12, 1945
arrangement. (SECRET W)
reading only by special
liec'd 7:30 a.m., 13th
11 p.m.
Mar Befugee Board
Secretary of State
AMERASSY
Washington
LONDON
536, Twelfth
1905
MILB 354 FOR HIAS 425 LAFATHTTA STREET - YORK
FROM DAVID SCHNLITERE HICKM
Complying with matrous demands relatives America
and England on our request office Bucharest will now
transmit full addresses inquirers Roumania instead of
general address care of Zingher. Only reason preventing
before office Buchareat doing so was economy.
Inform Sugars Ceretmann, 205 West 88 Street, New
York Maurice Thal
bakAähque - financial help and telegraphic permission
using one room his flat. Oure January 26 Rose a
your February 19 Prederick Passy identical case inesmach
Arrechmanna address Frederic Paney Street Plain lime York
nice ask Mogen Axalrood 9 Vesta Road, Dorobester 24
The following for Mann is WRB 56.
Reference is made to Polish War Refief project. Labor
groupe here have requested information concerning status of
the $150,000 remitted to London in two installments of $75,000
each. Please advise urgently whether any part of this amount
has been released to Folish trustees in London and obtain from
the trustees as BOOD as possible their proposals for the use
of those funds still available to the trustoes in London for
this project.
For your information, replies to the foregoing inquiries
are needed immediately in connection with efforts of the
labor groupe to obtain an additional allocation from the
National Gar Fund for their very successful Norwegian project
which now faces termination because of lack of funds.
Massachusetts send parcel food and financial help Marine
Axelrood six cite Condorcet Paris. Inform Princess are
Kotchoubey POB Centralia Illinois father Vladinir
Talacheff healthy nine Avenue Aime Martin nine request
financial help and secure USA visa.
CROCKING
WES
par.2 lines 2 and 3
York Maurice Thal 10 Quantin Hauchard Street Paris
healthy. ASKS financial help and telegraphic permission
10.00 Chauncey (for the Secty), Akain, Cohn, Dallois, Gaston,
Model, Rutchison, 18Cornack, O'Dayer, Files
STATTINIUS
(OIN)
PRECISION
TRADE MARK
MICROSTAT
MICROFILM
ROLL NO
140
139
PARAPSRASS OF TELEGRAN SENT
CABLE TO WINANT, LONDON, FOR MANK FROM WAR REFUGEE BOARD
Reference is made to Folish Bar Relief project. Labor groups here have
PROM.
Secretary of State, Washington
TO:
American Political Adviser, Caserta
requested information concerning status of the $150,000 remitted to London
DATED:
March 12, 1945
in two installments of $75,000 each. Please advise urgently whether any part
NUMBER:
210
of this amount has been released to Folish trustees in London and obtain from
the trustees as $005 as possible their proposals for the use of those funds
RECEIET
still available to the trustees is London for this project.
In reference to your 719, February 27 and 751 of February 28,
For your information, replies to the foregoing inquiries are needed
the Bar Refuges Board is not represented by Jacogeon. The Depart-
immediately in connection with efforts of the labor groups to obtain an
sent has not approved his entry into thungary.
additional allocation from the National War Fund for their very successful
The validity of Jacobaon's passport includes Portugal, Spain,
Sorwegian project which now faces termination because of lack of funds.
and Turkey and does not include other continental European countries.
STATENTUS
THIB IS LONDON CABLE so. 56
11,00 a.m.
March 12, 1945
Filishd 3/10/45
INPRECISION
MICROFILM
MICROSTATA
TRADE
ROLL NO
142
141
CABLE TO AMERICAN CONSULATE GENERAL, FROM THE WAR REPUBER Board
Please deliver the following message to the Joint Distribution
Committee from 14. A. Leavito of American Jewish Joint Distribution
Consitteer
CABLE TO AMERICAN EMBASSY, PARIS, FROM THE HAIR REFUGEE BOARD
Please deliver the following messare to Arthur Greenleigh
from if A. Lesvitt of American Jewish Joint Distribution Committee:
CUOTE ME HAVE NO RECORD AND AUTHORIZED OWERG BORTH BASKIND.
00 INFORMATION POLIS CLAIMS Received AFTER FLOURARY
1940. UNQUOTE
QUOTE in RECEIVED FOLLOWING GARLA FROM MOSCOL
INFORMATION EVACULES NOT LIVING IN SOVIET
UNION. HAS ISSUE an ICAL ORDER TO DATAIN I ussa FOR OUR
APPROPRIATE PART OF SHIPHER Sale FOR POLISH JERS
ORDANIZATIONAL COLLATTES OF POLICES IN USSA MOSCO FUSHICKNAYA
LEX FINESSELL RUSI MOBEL BRONERSON B&R MARK IDA
5
KANCHSKA DOCTOR DAVID STARD DOCTOR JACOL HARBI
SOROCKET GENERAL UNION POLISH PAINTOWS
Fill OUR VOSITION DESTRUCTION or AMOUNT SUPPLIES
BE LEFT FOR DISTRIBUTION SOVIRY LOCION SHOULD B at
TO
EMIL SOVERSTEIN AND ABOVE BTLL YOU ADVIS
AND HOSCO COMITTE ACCORDINGLY AIR THAT in 30. KIRT
ADVIRED REGARDING PROGRAM AND DISTRIBUTION ASS... YOU WILL
ADVISE PASSWAY UNQUOTE
2145 m.
March 12, 1945
2:45 p. m.
March 12, 1945
3/12/45
RBM: 3/12/45
NOT TO BE RE-TRAESHITTED
2"
COPY NO.
SECRET
OPTEL No. 81
143
Information received up to 10 s.m., 12th March, 1945.
NAVAL
MEDITERRANEAN. 9th/10th (night). Coastal forces sank es-
1.
corted ship of 2,500 tons west of Istria.
PLAIN
RB-816
ANTI-SUBMARINE OPERATIONS. 11th. U.S. Liberator sank U-
2.
Lisbon
Dated March 12, 1945
Rec'd 7:28 a.m., 13th
boat west of Solbblies from which survivors picked up. Promising
attack made by 10th Escort Group off Beachy Head, Midget submarine
sunk off North Foreland by one of H.N. Frigates who took two
prisoners.
MILITARY
WESTERN FRONT.
3.
Secretary of State
Washington
535, Twelfth
WRB 353 JDC FOR LEAVITT FROM HAROED THORE
Wish advise Saly Mayer paid account George Deberall
350.000 Seies france account 55 TOROS passages making
total paid from special fund 1.518.500 Swias France.
CROCKER
MYS
South Central Sector: Clearing of area north of River
Moselle and west of River Rhine continues while further north
Renagen bridgehead now expanded to breadth 9 miles and depth 3 miles.
Northern Sector: Resistance in Wesel bridgehead ceased on
10th when U.S. and British troops made contact opposite Vesel on
west bank of Rhine. Allied troops now hold west bank of Rhine from
its junction with Moselle to opposite Tiel (20 niles west Nijmegen),
with exception of some 3 miles Addernach.
EASTERN FRONT.
4.
Central Sector: On northern flank advances made on east
bank of Vistula to within 19 miles S.E. Danzig, while to mest progress also made and troops within 11 miles of city. Further west
Germans claim to have prevented expansion of Russian
bridgehead over
#light penetrations.
exception
South Kustrin with
River
Oder,
Southern Sector: In Hungary Germans claim further penetrations both sides Lake Balaton while Russians admit hard fighting
this area, particularly at N.E. end of lake where large tank and
infantry forces engaged. Further south Germans claim to have held
against strong counter attacks bridgehead which they had previusly
of
gained over Lower Drava.
BUBNA.
5.
Central Sector: Hyotha captured by troops from Myinmu
bridgehead, while further north leading elements in Mandalay have
reached Fort Dufforin.
Northern Sector: Our troops have captured Hong Hit.
AIR
HESTERN FRONT. 1053 Bomber Connand aircraft (3 missing)
6.
attacked Essen (4238 tons through cloud 11th. U.S. heavy bonbers
1220 (1 missing) attacked oil refineries hanburg (1107 tons) and
U-boat building yards (1692 tons) at Bremon and Kiel. No enemy
fighter seen.
SHAEF (Air). 840 medium bonbers (2 missing) dropped 1300
tons communication targets and airfields mainly central Sector.
unobserved results, while fighters and fighter bombers flow 1140
with
sorties for loss 6 aircraft over whole battle front in poor visibl-
lity. Coastal Command Mosquitoes attacked navigational aida Norwegion coast.
11th/12th (night). 123 Bomber Compand aircraft despatched
including 90 Mosquitoes Berlin.
MEDITERRANEAN. 9th/10th (night) and during following day
heavy bombers attacked railway bridge 4 miles N.T. Verona (642 tons)
where several probable hits reported, while 978 tactical aircraft
attacked enemy communications and other targets.
7.
BURMA. 9th. Liberators dropped 243 tons on bridges and
Lumps Southern Burna while 300 other aircraft attacked targets
central aren.
8.
HOME SECURITY
ROCKETS. 11th. Two further incidents reported. 11th/
12th (night). 11 incidents reported.
9.
TRADE MARK
145
146
March 13, 1945
12:13 p.m.
0
C
HMJr:
Hello,
HMJr:
Cont'd
created about four years ago for Dan Bell. It's
a Civil Service appointment. Now, : could appoint
the person just as such as I could appoint an
Administrative Assistant. You see?
Bob
Hannegan:
Hello,
HMJr:
Good morning, Bob,
H:
HMJr:
Yes, air, Mr. Secretary
Ye had a good meeting out in Minneapolis.
H:
I read about it.
HMJr:
I BAY our old friend -- is his name Brener?
H:
Yeah, Otto Bremer.
HMJr:
H:
EMJr:
E:
HMJr:
HMJr:
Re's a nice old fellow.
HMJr:
H:
HMJr:
He's been a good -- he's been a pretty good
H:
HMJr:
Roosevelt man, too.
HMJr:
Yesh. They stopped selling tickete at ten 'clock
yesterday morning.
H:
17h huh.
HMJr:
It was sell out.
H:
Well, that's great.
HMJr:
And I think we'll get all the papers there for us.
H:
Uh huh.
HMJr:
That 18, the Ridder's and the Cowles'
M:
HMJr:
Uh huh.
The reason I'm calling you 16 this: oh, ten days
ago, going up on the train with the President,
Now, the thing is I'm putting Eddie Bartelt in
there with the understanding that if and when I
ever get out of here, he'11 go back to his job,
Yee, air.
Now, the reason -- I haven't got the exact language,
but you'll have to take my word for it.
oh, he certainly is.
Yeah. It's the first time in eaven years.
Ub bub.
See?
H:
H:
But as 8 matter of courtesy. I just didn't want
and that job was created by Congress for Dan Bell.
come out to a meeting.
Un huh.
Yes, air.
the President or you to pick up the papers and
see I'd appointed an Assistant Secretary.
He said it's the first time in seven years he's
H:
as & matter of courtesy I gave him A memorandum
about the Fiscal Assistant Secretary, which was
H:
HMJr:
H:
HMJr:
Uh hub.
I mean, I have just as much as you had over there
to appoint one of your assistants when you were
with the -- you know.
Yes, sir.
And it has to be within Civil Service. Well, the
President referred it to Jim Barnes.
Uh huh,
And Barnes just called ne up and said he wanted to
sit down and talk to me about it. And I said, "Well,
what is there to talk about? It's a Civil Service
appointment.
H:
HMJr:
H:
Uh huh.
See? I mean, it's wholly -- it's just the same as
appointing Charlie Bell as my Administrative Assistant.
Yes.
148
147
O
HMJr:
He doesn't have to be confirmed. It isn't a
Presidential appointment.
H:
HMJr:
o
H:
Yes.
The law says
HMJr:
to be apoointed by me."
H:
Yes, air.
HMJr:
I wanted you to know about it.
That's fine.
H:
HKJr:
And I ** I -- as I
HXJr:
H:
I'll call that Jim Barnes right away.
Call up Jim -- I mean, :
M:
HMJr:
H:
HWJr:
H:
HMJr:
HMJr:
H:
HMJP:
HMJr:
HMJr:
oh.
HMJr:
Well, that's no way, you know.
H:
No. hell.
HMJr:
What?
H:
HMJr:
H:
No. I'll call him.
oh, sure.
And I only vent to the President as a matter of
Yes, air. Say, I got a favorable note from the
Oh, fine.
A very nice letter.
Fine.
And suggested that -- you know this fellow from
up here in Maryland, I think he was -- I think
he was chairman of the Governor's Conferences
and I'11 try to get -- he's close by -- I'11 try
Uh huh.
H:
Because if it was a political appointment or
had to be confirmed or anything else, believe me
I'd go to you.
President this morning about going ahead with --
(Laughs)
So he said, "All right, I'll Just tell the President."
Yes, sir.
with this Conference of Governors.
Oh, he's A little daffy anyway.
A little what?
Well he said, *Come on over; I want to talk to
you. I said, "Well, Mr. Barnes, what would you
like See?
to talk to me about?" I was very polite to
him.
Will you do that?
courtesy.
K:
H:
H:
: will call his right away.
to get him to come down here, and maybe we can
tell with him.
HMJP:
And you know -- this is just between us -- that
the day After I BOW Ickes
H:
Uh huh.
HMJr:
when ** after I'd dome to your meeting.
H:
Yes.
HMJr:
He practically wouldn't talk to me because I'd
come over there. He was BO sad at me.
That's no way. I mean -- go back and tell teacher
right away.
H:
He vas?
H:
That's right.
HMJr:
Yeah.
HMJr:
What?
H:
Well, why?
-6-
149
0
0
HMJr:
And if there are any leaks about that meeting,
H:
you can be sure where it comes from.
H:
HMJr:
Ch, yes.
H:
HMJr:
Yeah.
H:
Well, I'm going over to see him.
HWJr:
Yeah.
H:
.... just as soon as I can, and -- and talk with
him because I want to try to -- think he has an
obligation the same as the rest of us.
HMJr:
HMJr:
H:
Yeah.
H:
And I want to tell him so.
HMJr:
Well, 08 I any it's -- he
H:
Well, he had Abe Fortas over there.
HMJr:
H:
I know he did, but I just -- I thought he was
acting
You see? - I thought he was acting like a child.
HMJr:
Yell, he got himself all sixed uo. I tried to
HMJr:
be helpful to him, and I told you about that
appointment that he tried to get the President
to take in a hurry before be left. on Congressman
Jed Johnson.
HMJr:
Yes.
H:
And he just irritated all those fellows in
HMJr:
HMJF:
Congress.
a matter of courtesy to you and the
Thanks a lot.
And if you'11 just say something to Barnes
I will do it right this second.
Uh huh.
Barnes.
Yes.
I don't think I've ever net him.
Uh huh.
See?
I'm going to call him right when I hang up here.
Thank you.
Hello. Hello,
Yes.
M:
The girl has just brought in -- it's an excerpt
from a message from the President of the United
States, transmitting a reorganization plan No.
111, April 2. 1940, which reads as follows: "To
assure continued effective management of this
highly important technical phase of the Treasury
of a career
functions,
the supervision
Assistant The plan,
therefore,
providesofficial.
thatfiscal
theservice
Fiscal
Secretary will be appointed by the Secretary of
the Treasury in accordance with the Civil Service
laws,
andofwill
his duties under the general
direction
theperform
Secretary.
I hope that before long we'll get that report
through with that fellow Pawley.
HMJr:
: know. I haven't forgotten it, and
H:
I as placing the under
C
So this is
President.
H:
H:
HMJr:
Yes, sir.
And : net
get the
along
fine with you. You know, I've
never
fellow.
H:
H:
H:
See?
HOME:
HMJr:
HMJr:
M:
That's fine.
It seemsofthat
because
that.-- I'm sure getting myself murdered
HMJr:
Well, Bob, I haven't forgotten.
H:
0
No, but you see what they're doing with the guy -he's paid 8 lot of money to get lawyers to be sure
150
151
March 13, 1945
12:22 p.m.
H:
Cont'd
HMJr:
H:
that his tax was all correct, and now he -- he has
to go back and get his records out from 1932 and
he said it cost him $10,000 to go ahead and do that.
HMJr:
Yeah.
Gamble:
And -- well, I talked with -- : had . talk with the
H:
HMJr:
H:
How are you, air.
HMJr:
President last week about a number of things, and
I told him -- I mentioned this one, and he said,
well,pretty
he would
you
soon. probably get the report from -- from
HMJr:
Hello, Ted.
Ted
Everything went off beautifully,
Xell, that's fine.
0:
HMJr:
They turned people away from ten o'clook on
yesterday.
Yeah,
well, we've got it and we're doing the best
we can under the circumstances.
G:
Okay. Thank you very such.
Yes.
HMJr:
And your fellow Arnold couldn't have been more
attentive.
All right.
G:
Bye.
HMJr:
He's B very sweet fellow,
And
G:
He's
A very considerate fellow, and I think will
do you a lot of good out there.
HMJrr
There was only one thing that -- that wasn't right
to dot with
no.it would displease you. It had nothing
and
know
G:
Yes,
HMJr:
G:
I want you to get it directly from George Little.
Yee.
HMJr:
They
meeting staged there for people - for
500 orhad
moreapeople
0:
HMJrs
G:
HMJr:
O:
Yes.
Un -- payroll deduction.
Uh huh.
And they had Olrich address them.
Yes.
HMJrs
Well,80
hemany
talked
to them just as though these people
were
slaves.
0
@
152
153
154
O
0:
O
Uh huh.
01
HMJr
And the whole attitude was wrong. Now, in the
first place, no women were there and I happened
to bring Mrs. Morgenthau and Mrs.
who 18 a very nice Indy.
HMJr:
0:
Yes.
G:
HMJr:
After all, fifty percent of the payroll people
0:
Oh on.
HMJr:
HMJr:
0:
KMJr:
are women. There were no labor people there.
G:
And they just talked like a lot of hard boiled
N.A.M.# -- "You fellows have not the business
and you've got to make en produce, and you've
G:
0
Uh huh.
G:
HMJr:
HMJr:
0:
And Herbert Gaston was there, and he VIS very
MMJr:
much shocked, and it Beese that there's a fellow
there by the name of Pack.
G:
HMJrs
HMJr:
Yes.
G:
He's a Northern States Power san.
G:
HMJr:
G:
HMJr:
0
Yeah, and who evidently has very good labor
relations.
HMJr:
And Olrich went out of his way to take a couple
of dirty cracks at him. See?
Now. I don't know the background, but : think
maybe if you'd talk to Herbert rather than
Little -- see?
It -- I'll tell you, Ted. it's something that
Well, I'm amazed at Olrich.
Olrich is terrible.
I would have thought that his short stay down
here would have -- at least have broadened his
I'm sorry to say his contact with se had no good
effect.
Had no good effect on him. (Laughe)
But the rest of the arrangements -- I mean, this
had nothing -- this meeting was arranged irrespective
Yes, that's right. It had already been scheduled.
And I talked a little after him and I was very culet.
I realized it vas tough spot, and all I said to
them was this, "Gentlemen, I've been around the
country a lot where there are labor
Yes.
Yee.
.... it was just like cracking -- ormoking the
whip over a lot of slaves in a galley boat.
Well I went to a labor meeting Saturday in
Philadelphia, and had just the opposite. I
of my coming.
0:
HMJr:
Practically every
views a little.
Robert Pack.
0:
Well
you
and I have personally got to watch all the
time.
the bonds.
Well, now, that isn't what ve vant.
Well, that's a curious thing because we're had
....
such a
Well, it's what we have not had either, Mr.
talked to them myself, and we had
HMJr:
it's up to you to just make these fellows buy
HMJr:
But I know it's what you and I don't want.
Secretary.
got to make en come across, and God damn it,
G:
Yes, I will talk to Herbert.
with management, and management good gets along relations with
G:
labor. You don't have to worry about var bonds.
Or production either.
155
O
HMJr:
Well, I didn't any that -- which is the same thing
as the net-up there -- and I was very quiet, and
they liked it. I eat next to the head of General
Milla
and they liked what I said. I said, "You've
got
-5o
HMJr:
0:
can
sell war bonds. management If
and labor. to have and this then relationship you
between
you
don't have it. you can't And : said 11 very
quietly, you see?
G:
HMJr:
G:
HMJr:
G:
But everything =100 out there was awell, including
the grandchild
Yell, that's good. I MAE going to ask you that.
Well it couldn't have been a more successful
meeting.
Well, their only excuse for using Oirich, really,
was that they thought he would have more of our
point of view. It's a shame.
Well, I'm glad to hear it.
G:
HMJr:
Yell, I'm -- I want you to talk to Herbert.
Well, I will talk to him.
Because when this thing dones un. it has to be handled:
but as to my OMD trip, it use 100% successful and
I can't say enough nice things about George Little,
Well, that's fine.
And we got both papers -- we got both the Ridder's
and the Cowles are going to be with us.
Well, that's awfully good.
0:
HMJr:
HMJr:
156
Yeah.
0:
Because that's an influence through that whole
HMJr:
Well, both the Cowles' and the Ridder's are for
country.
US.
HMJr:
Now one other little thing: if you will diotate A
letter for me to write to Vice President Trusan
5
0:
HMJr:
And these fellows won't vote against them, I don't
0:
think.
O
Yes.
HMJr:
I will send it up to him myself.
0:
0:
If you will send it over this afternoon.
G:
Fine. Now, you have seen the nemo that I sent
over
G.
HMJr:
G:
HMJr:
G:
Well, that's good news.
Fine.
HMJr:
HMJr:
So the meeting in general WAR most successful.
Yes.
....
on the Truman matter?
That's why I'm asking
....
I'll follow that up with a letter.
If you would.
All right, air.
a
=XJr:
Thank you BO such.
G:
All right, sir. 3ye.
158
157
March 13, 1945
1:00 D.M.
o
L:
All right.
But definitely get this 1:30 meeting called off.
I'll do my best.
HMJr:
Well, we have to do it.
L:
I'11 do my best, Mr. Secretary.
L:
HMJr:
HMJr:
Lux, this is important. I just called up Jesse
Wolcott
just to ask how things were going. You
nee?
Ansel
Luxford:
HMJr:
Yep.
And he said things were going fine, and he paid
HMJr:
fine, but he Baid they called & meeting for 1:30
this afternoon of the committee.
L:
All right, I shall.
HMJr:
See?
L:
You bet.
HMJr:
I don't think you'll have any trouble.
Harry was keeping his temper, and everything WAS
L:
Yeah,
HMJr:
He says it's a mistake. It's irritated the
Republicans. They want to get this Lend-Lease
thing out of the way, and once it's out of the
way, it will be helpful to Bretton Woods.
L1
HMJr:
L:
Yeah.
HMJr:
And he said he wishes that we could tactfully
get word to Spence not to call the committee
together at 1:30.
o
L:
L:
Today?
HMJr:
Today. Hello1
L1
HMJr:
L:
HMJr:
Yeah, I've got it.
So that they can finish Lend-Lease on the floor.
He said the Republicans won't come. They just -Harry Mon't have & -- people there to listen to
him.
Uh hub.
And be said it's just irritating them. If we
could call off the 1:30 meeting, he would aporeciate it, and it would be in the interest of good
will.
L:
Could I use -- could I use Wolcott's name in connection with this, Kr. Secretary? If I can, I can
get Spence to do it, I believe,
HMJr:
Well, use your own judgment.
Yell, I know, but I mean, you can use my name and
Volcott's. Tell him I recommend it.
I don't either. I don't invision
Yell I want you -- I tried to get O'Connell,
I tried -- White's down in the restaurant.
O'Connell's over at the other place.
All right, sir, I'll take care of it.
HMJr:
I'm sure you will.
L:
Right away.
HMJr:
Thank you.
PRECISION
TRADE MARK
MICROSTAT
MICROFILM
ROLL NO.
159
160
0
March 13, 1945
0
8:45 p.m.
MR. C.S. BELL: A little bit today.
BANICH'S VISIT
Present:
H.M.Jh: This is super-duper confidential T
Mr. D. W. Bell
but and I make,
just don't
know how to an
no leaks! Baruch has been it,
Mr. Luxford
terribly for God's worried handle here and
about an hour and three-quarters, and be for
Mr. C. S. Bell
Mr. 01 Connell
Mr. DuBois
asked by the President of the United
Mr. Coe
PO that abroad he has on been the reparations question. I have States no question to
askedbeen
that. the said he has
been to he
Stettinius,
has
that
of but he doesn't
want claims
to go unless
he see
Mrs. Klotz
H.M.JR: Charles, I am glad to have you stay. This
doesn't particularly concern you, but if you are interested,
he kudos asked and an invitation from Churchill. From gets the question plenty
but from a are little don't 1 an think picking that up he here has and been there, told everything, is
you can stay.
has no
question
in myletter?
mind that--of those who are here, there who
seen
Taylor'
MR. C.S. BELL: Yes, sir.
MR. DuBOIS: I have.
H.M.JR: And I wanted the people it did concern to be
here. It's wholly a matter of foreign affairs.
0
MR. COE Yes.
MR. C.S. BELL: I have some other things I can do.
the H.M.JR: well, it's available through your (Coe's)
H.M.JR: You are not roinr to be able to do it. I do
It backwards. I mean, I don't need--] did invite Blough
On and the reparations question. the question of treating oriminals office.
piece economic treatment of Germany, I an beginning to
together that there was no settlement. What?
104 DOE: That's right.
or Gamble.
NO.C. S. BELL: I understand.
H.N.J.: Now, I don't think that Baruch knew
H.M.JR: So, this doesn't concern you.
about because his he was trying to fish with me, but there is it no all
MR. C.S. BELL: Do you want me to go?
is his being asked. He gave ne a document to question
H.M.JR No, you can stay.
not
question,
and the
rist
his is or
the President
build German
thing
himof
a chance
presentation. and he said he tried to show read which
but the President wouldn't give it to the
MR. C.S. BELL: I would love to stay.
So un Germany Industrially in order to we peparations. must
doesn't so good, but he rets off on complete pay
tangents.
have
of far,
knowthe
whoEnglish
ther he shouldn't
let the
some lie
MR. LUXFORD: Just to see the boss.
world competition. I find to
meet Kuhr coal because they can nine it cheaper
H.M.JR: If you want to go, raise your right hand. too You
can
He had great difficulty in He
always stay. You are always invited. Am I talking
him He thinks it is a great mistake about Imbin. I hearing. with
loud?
O
doesn'tthe
to concentrate.
theheading
man's mind
wanders.
agree I
extent of Lubin
the whole
thing.
TRADE
161
162
0
o
don't think-- think Lubin is a ood statistician. I wouldn't
but--
say he is a great statistician, but he's a good one, because
I have seen him and he is good. but he's correct. If we
at
samelike
level.
outthe
a man
Lubin in, other governments will put men in
late.
h.M.JRI Hello, Dan. I'm sorry I can't back-track,
Mr. D.W. RELL: That's all right. I'm sorry I was
MIL LUXFORD: He mon't fit, Mr. Secretary.
H.M.JH: Joe Dubois will tell you what I said before.
H.M.JR: And he said to have Lubin there--he isn't
roins to CO unless he can really supersede Lubin. The
move la on. Lubin asked him to help him get henderson
to go as his assistant, and he hates Henderson, and be
said on the hill it would be terrible. No one noticed
that it BBS 10--this is in the room here--that kept
MR. DUBOIS: Yes.
H.M.JR: The nan the are talking about is Baruch, and
this is extremely confidential. a is all richt on this
German business. I sent Cherwell un to see him and Cherwell
is all right on this, and he is countin, greatly on seeing
Chermell. or course, he is great friends with Churchill,
Benderson from speaking during the campaign for hoosevelt.
O
It's amful. he keeps going off and you have to keep getting
him back to the thing. It's very trying. Now. be sent word
here about ten days are that he wanted everything I had
on Germany and did nothing about it. he said that if
he goes, he wants the President's plane because he gets
seanick. That's 8 good reason to have his plane. He
is taking
little
trained
man
by thehis
name
of Lubell.
nurse, his valet, and .
NEW O*CONNELL: The same Lubell?
H.M.JH: he wants something from over here to find
out what we got, see? Now, what I think he is trying to
do is build himself up, and I gave him DuBois' name. You
have to kind of feel your way. I wouldn't suddenly unburdes
myself. On the other hand, told him about Taylor and
Bernstein and if he ment--Joe, If he took a liking to you,
I would let you TO with him, because this is important.
Mr. DUHOIS: That's right, this is very important.
0
h.M.Jat This is very important and if you could
sell yourself to San Labell, I would encourage you to
0 with him because you see be calls it the Morgenthau
Plan and will be calling it the "Baruch Plan pretty soon.
(Mr. D. in Bell enters the conference.)
O
and Churchill has asked him to go over there and make a
speech. Another thing he said when they attacked Churchill
so on the Greek business, he got on the telephone and called
the 3 publishers and editors all over the country in order to
themhim
to stop
attacking
Churchill,
thanked
for the
great job
he did. and harry Hooking
New, I can't tell. As soon as 1 see Stettinius, I
will find out what the low-down is, because he has been
to see Stettinius and was frank enough to any before
Stettinius ould talk to him,StettinIus called the
President,and there is a lot of--he has one to the President
and recommended that State, war, Navy and Treasury head--
1 couldn't quite get the overall committee on this business
with
Jimmy Syrnes, but Jiany Byrnes is holding back because
preside.
he
wants to preside and he is afraid Byrnes is going to
MR. D.S. FELL: who is holding back?
E.M.JR: Byrnes, because he wants to preside instead
of Stettinius, He said he didn't know just where he would
fit into this picture, and he wants San Rosenman as General
Counsel to this committee, and he said he asked the President
If it would be all right to talk to me, because be felt that
in the final analysis the Treasury would play the most
164
163
O
O
to Europe. That I can understand. the won't 20 to Moscow.
Somehow or other he knew about Bernstein. He didn't know
about Taylor. He said he thought San Hosenman's trip
was a great mistake. 110 out scross a lot of people.
important part in this thing. He said in the lone run
we inherit all of this stuff anyway, and the President said,
"Yes, we talked to the President about the Morgenthau
Plan' and he said, well, Henry was right, but be was a
little bit too previous. but Just what this Committee
YAS to do, I couldn't quite understand, except that It
to this Cabinet Committee of five--that's what he would
like. I maked if he would talk to Walter George for
me on Bretton woods, and he didn't answer me. he said
he hadn't seen him for a long time. He got that in. To
sum up, don't think this Connittee is very important yet,
but on the peparation thing he made up his mind that that
would sort of be RD over-all Committee. Sam Kosennan was
to be General Counsel and I gather Baruch was to be the
guiding spirit. That' about the TAY I not it. It maan't
is more important than anything else, and be will work
through his avenues to see that everything is held back,
too clear, and the nan's mind wanders, but fundamentally
he's all right. You don't have to begin to sell him.
if he can. He said, Can you set Krock on it?" I said, "For
once I agree with Krock, in regard to his article about
Growley, pyranid on pyramid. want you to tell me about
Sunday he san Stimson and he called him the Bishop
Groud. He said what's his ane--Churchill--has trouble
with the Bishons and Stimson in one of then. le thought
it sometime. So he said, Did you see that little piece
about Lubin at the bottom? I gave Lubin my documents.
he made some headway with Stinson and he claims--he said
Lubin said he met Krook on the street, and off the record,
showed 1t to him on the street. That's where Krock got
he was going to send the a CODY of it. You might ask him
that. He proceeded to tell me he went to the State
Department and addressed the whole groun on Germany with
it from. (Laughter)
a written nemo. He said he would let ne have a copy, and
he said the only fellow that asked him sone questions is
the White Missian over there.
you are--
But, I think, Joe, that you are smart enough. I hope
15. LUXFORD: That's 8 good way to put it. He is dumb
if he doesn't.
MR. LUXFORD: Pasvolsky.
H.M.JH: Ea said that I an making a great mistake to
try to push Bretton Woods before reparations is settled,
because he said reparations should come first, and be
wouldn't be completely frank with ne If be dign't tell me,
because be said the whole economic welfare of this country
H.M.Jat...that you could take this fellow, you see--I
would kind of feed him. You don't have to feed him industrialization, and as I told Baruch, we could feed sixty
million people, see? Just start him on that. I wouldn't
give him the works, but I would start him on that. So
much for that. I am confused because the man would talk
about ten different things, and really wouldn't complete
any thought, and the only thought I really got out of It
was that reparations is more important and everything else
has to wait. Do I leave you people confused?
and England and everything depends on reparations, and that
has to come first. So, I told him that I didn't agree with
him. He said, "Well, you are EPON I said, "We are
going
to let 11 PO through the House. He said, You see, that
question is roin to come up in the House very soon.
Of course, he is putting it--and he sold, "You will see
that. I said, "Well, you night say, "why not let's mait
MR. LUXFORD: Yes, sir.
until the tariff question is settled?" said, why
not let's wait until something else is settled? If you
mail until all these things are settled, you are not going
to net anything. While the nan's mind wanders, he is one
of the cleverest operators there is. He can get the trip
He
said that San Rosenman is orazy to be General Counsel
O
165
166
0
0
MR. COE: I wonder if we could-MR. DuBOIS: I don't quite understand the nature of
his trip. You say he is not going to Moscow?
B.M.Jat I don't either. He didn't know about the
European
Advisory Committee. All he is going to do is
see
Churchill.
16. LUXFORD: Can we make n horse trade with him?
We will play along with reportions a little if he will
start batting around on Bretton woods.
H.M.JR: He won't trade. he told me three times--
he said, I wouldn't be frank with you if I didn't tell
you that
can't
budgeeverything
him.
has to wait for reparations. You
MR. COE: Mr. Secretary, if you break this thing down,
I think you will find the group in general agreement on
the importance of the reparations business, but it would
look to ne from what you said that Daruch on his trip will
hit the reparations thing through the British, and maybe
indirectly will gum up anything that Lubin is trying to
do or may have instructions to do. It would still seem
to me that the main place where the reparations thing would
be settled in the next period would be Koscow.
H.M.JK: but this to me makes as much sense as Rosenman's
trip does.
MR. DuBOIS: 1 was hoping that somebody, of course,
thinking of myself among others, could get to Koscow where
the real work will be done. Now, that's the place, and If
he is trying to by-step that, there is going to be trouble.
H.M.Jhi well, listen, this is a very powerful fellow,
and he just runs circles around Lubin, see, and he comes
to me and says he will send me B fish--you know, shad.
(Laughter) I never got 8 shad from him in all my life.
He said, I will--I'II send you one under one condition
that your wife can make gefuhlte fish. If she can, I will
send you
another one." I said, "She can't, but come to
dinner
anyway.
Well, anyway, I have to keep in touch with him. He
will send this fellow Lubell--is that his name?
15. O'CONNELL: Sam Lubell.
H.M.JR: He will send him over to see you. I am going
to get that story in the Saturday avening Post.
O*COMELL:
wrote
the rubber report. the has
been MR.
working
for baruchlieever
since.
MR. 00E: lie wrote Baruch's report.
H.M.JR:
And let's
see where we are, and don't
you get
the Moscow
itch just
either.
MRS. KLOTZ: He has had It for a one time.
MR. LUXFORD: Have priorities been established on Moscow?
HR. that
DuboIS:
1 think
in all seriousness it is awfully
important
Hoscow's
condition-H.M.JR: de will see, but let's see what Mr. Baruch
is going to do. lie said In just so many words that he
isn't going to to over unless he practically dominates the
situation. Where that leaves Lubin, I don't know.
MR. D.N. BELL: Is he going now?
H.K.JH: I think he is waiting for an invitation from
Churchill, which he hasn't gotten yet. And of course, I
think If Stettinius--it's all crazy. he gets all your
lines. He complains how badly the Government is organized,
and then all these things all mixed up--well, anyway I
got
this
kabbi
Korff(Laughter)
outside again, DuBois' chum, and I'll
send
you
to Korff.
Did you get hold of Spence?
168
167
a
O
10
MR. DuBOIS: Do I wait on Lubell?
MR. LUXFORD: It's all fixed up.
H.M.JRI 1 got this message--
You sit. who is going to help the on this
thing E.M.JR:
with Korff?
MR. LUXFORD: He said one thing--
MR DUBOIS: I wasn't suggesting myself.
H.M.JR: I tried to net you and tried to get Harry.
E.M.J.: You wouldn't be so good.
MR. LUXFORD: The lend-lease thing is very hot. According
to him, they are going to argue on the twenty billion we are
going to have for reconstruction on lend-lease--there is no
reason for Bretton woods. That's not to be cleared up, but
T told him Crowley was roing to testify and san no reason
why Crowley couldn't handle that.
MR. DUBOIS: I think it is generally on ear refugee.
KLOTY: 1 thought it was Jabotinsky. That's
what MRS.
the letter
said.
MR. DuBOIS: It did. He called me this morning.
MR. COE: They have accepted an amendment to the Act.
10h. 0*00NHELL: Land-lease?
O
H.M.Jas That's all right. but if--this is what Mr.
o
Wolcott told me, that everything TBS going fine and that
White was doing a good job. be feit encouraged, but he
said this was just a little irritatine--this one-thirty
business this afternoon--and If they could get that
straightened out, he thought it would be helpful to
Bretton Woods, and if they not at one-thirty, none of
the Republicans would come.
MR. O*CONNELL: Jesse wasn't there for recess this
morning, but there were four Republicans, none of whom
made any objections to one-thirty.
H.H.JR: Well, anyway, 1 thought I would call Jesse
up. Yes, it's a nice thing, It's B nice gesture.
15. 0*0050 ELL: Sure.
M.R. LIXXORD: That's right.
o
H.M.JR: I just wanted to bring you fellows up to date.
I'll have to excuse myself now. We will have staff tomorrow.
Unless I see Stettinius, 10 will have A regular staff meeting
tomorrow morning.
O
169-A
attand-
March 13, 1945
4:09 p.m.
3/13/45
THE SECRETARY OF THE TREASURY
163
WASHINGTON
0
0
HNJr:
Henry telking.
Bob
Hannegan:
HMJr:
H:
Yes, air.
In there any reason why you should -- know why
I shouldn't go ahead with this spoointment of
Bartelt's?
No, air.
HKJr:
It's all right?
H:
air, Itocalled
INo
talked
you. up Barnes within . minute after
HMJr:
H:
HMJr:
H:
Yeah. Yell, then : think we'll 6° abend with it.
Yeah.
Thank you so much.
Okay, sir,
My dear Dr. President:
Thank you for letting the read the letter from
the Prine Minister to yourself concerning Article
VII ADG desirable International agreements in the
trade field. (The document are attached for your
file)
that it WSS not possible for you to
this at recent meeting.
discuss
of I as
SOFT major fronts
your which
for this we must is
one the
economic
on
make progress in the next period. I as in thorough
agreement with the polate made in the memorandum
that there must be in International code of rules in
the trace field, in order to GO and with the jungle
of trage restrictions, cartel practices and restrictive cosmodity agreements, all of which serve to The re-
GUOD trace and rollate International friction.
roblem is similar to that which 1.6 tackled in the
Bretton Woods agreements in the monetary field, and
that experience Indicates that the United States can
get International agreement, If it nants to.
I wonder whether this would not be a good range
of subjects to throw Into your Cabinet committee on
Foreign Economic Policy That committee, as you will
remember will include Stettinius, Vallece, Takes
and myself. STRE been holding the order which you
approved for the committee while you and Stettinius
were out of the country.
Faithfully yours,
The President
The White House
O
Enclosures
.
COPY
t
169-C
10 Downing Street,
169-B
Whitehall
11 February, 1945.
THE WHITE HOUSE
WASHINGTON
My less Franklint
March 6, 1945.
T have to thank voti for you" letter - February 10
L.
about Apticle VII of the Lease-Loud Agreement. T embled
ORANDUM FOR
this bone to the Cablact and have no - is full tealy from
T1 someone that Surface the must atx - there
THE SECRETARY OF STATE
AND THE SECRETARY OF THE
TREASURY:
-
than seen 9 member sentes of disevastone in Loston between
11 group of hich British officiale unit three Are-toun officials
TO READ AND RETURN FOR MY
led by who min heart of the division in the State
SONAL FILE.
F.D.R.
Demansment which deals with Conternal Policy and in now
0
that
assuched to the American You PAY
disease tink olsee to this for as the recentles of
the Messa Department and - teationed to sace-tafa Informally,
without of counter oftham Government, Mary both
monatmias am stood - N result or considerettes since the
talks in Hishington mather nome than a you are. Although
Commeral Polley - the this subject. the talka covered
the hole mines on Article VIT and negati in our peonle to
have let Has tate many outcure corners.
2.
it. Hawkian ment back to week ago to Tashingtoa to
moors and in the to return to London at the bectunian of next
roath so tell 12.2 the Teshington monetion to the talks. Ve
O
169-D
COPY
169-E
0
ON ARTICLE VII
C
shall then be able to consider with ell insettable speed
(President by Ambasauda Minant with the assistance of 10. Hawkins
and Mr. Pearone.)
whether such differences as may be form in marata between the
United States not the United Ktanten can be mad it no,
11 The serios between the - MUB one of international trade verfare.
Fach country. 39 refalar tarteen Innomina cuota mentrictions, negotiating
preferential mantafative and er-
what should in lines 0th procedure for consideration of nelicy
by other United Histore.
chance
at
and
exports
or
expense
thomas
of
in
other
tried
to
countries.
take
To
earn
its
of
OVB
consequence
are in varving design desentent uson 1: for their proseculty. all
suffered. The international economic policy or nuttons because = strucgle
for shrinklar world stude, and the very solicion shemeby each sought to
HAVE itself asusail world trade to shrink mt 11 funther.
thin stage of the ing to mentionia delamition
to Washington. This must involve betagen other countries
of course the present need of the Decinions runt be meantained
before the go further on general soliev.
2) The economic strench of the United States to master their that of ADV
other country. Its production set commution in o lames nert of the
impoduation and consumation of the estima world. It Us the mentest
amelitor
action. The polletes 15 instituties and advocates will be decisive
in
chamaterize coonomic policies in the nest world.
In view of the above, ould it not be babser so water
till we have both returned home and have been sale to -
Fination. then the - in OTH + HAS state -111 be at servanized.
Renduction in the United Jattness must be from to SAHOR-
into the discussions, notably France, at DG early stage and
determinia whether - cutual +11
" The bonontunity so to anethin about this in but
4.
0
the
international smile mas in lateral tentnoved. linen all countries
The 10th Cabinet do not to emits Shernelyes st
1.
controls,
in
be Very that to talk this over with you ites - test.
-
0-. pursones. 100 amount of reconversion but " ould be - smale
If - numb
and country
other countries
herely yeat
steckthatto that
175 had before the "
neats
readver
sought
the process made in the Informal , she11
so
the
tents
Yours mineamely,
net
not
to
that
other
"
ulight
coustries
the
and
censorieally
thus
Segarts
Athout
consumer
fruit
Itself
and
of
the
rezand
its reaution
countries
- titch " DNYS. The twile anlinies which nations want then the 37
datemine to 11 lotter extent the retters of reduction which
-113 develop throughout the world n for - type way to
3/ STRINTON 8. CHURCHILL
The President
of the United States of member
staduet the for most and costly 53 this VIT has wen the for
the step ontar much that in and. The fast that the sho-1d
in in a state or "lux iven us the amontualty so oreate 1 next
and better assignment. sur the on reportunity which to +11 have only for
"trate
mentively
- of totime.
If things
amtheyallowed saf
to tates
and
111
tent
mayart
Amt
11 production
into the
articles butters that Seametam Hull and the massest Administration south
to nonstatentity
DATE Count no attesicult to chance because of the resistance
of
veated interests.
to
-
41 in should seek 1010 international arranent on a code of rules to
corema smade veleticas. The code should outlan birth ame-vot tenteros
amounts nota ayatema: rule out trade
Tomato augusting whereby Government thro their Cinancia strearth
behind shoinamerent
and motueata tointerests
emuch the
noncestition of those in other
countries:
through eattel
foot
o
transforts or governments to atticulate international trade.
169-G
169-F
the name time attreement should be south on the minetales to POTE
assements for stabilistar she monition of select producers so have
offered 30 merionaly - the deta swinis and emeatic bahazion - stable
wines use at the astro stron sereit customer needs to to
efficiently served. in International state owner's titles should in
established to harmonize trade solieles of nations and to study the
mode
olietes ext
result helpful mathem
technique wheneby state
be
than mutuellm contractive and to foreists and the inseration
of a Maria these eats in that.
If the President of the United States should take the lead in
adventing well thought out solicies and conomete processing in the
field of International state solicy, mullic oninion throughout the
world tight well fall 1a ushing him. snil plans for reconversion to
neacetime innotation - in laws measure be nade in the 15th of
the uninefales and solicies enuneiated by him.
is - have had extensive 0" in excloratory nont 1th
officials no Shede questions and and 1 registere of statement with that
seeds to in item. That mission de that N solution or the Hoblem of trute
in essential: STATE the restally destruction - of the
past erested frietion ad 111-feeling that to this continues in the
future, it 111 to much to centroy the institute - consonition on Mist
suggest in company tar a beceeful test. But the
-
of the problems immentad is also macoralised these mobilers have include
solution in the mast.
() The following am successed for countdematical
(a)
Complete
ou" 4th she
water
1th - vie to coron
that
should
detail
streement
to
on
the
Internating
twothem
the that
of - miller
Mitch to
cettons
stant
and the
should
thoseshould
the kind of mode share this shorts on - TEX to Mater
C
stilitating
of the and the recentages of
teats.
0
(b) Treasure by the tn Consent acrosstine the west - the
foreroin
NB the nolfe- the U.S. should gook to the appropriate having been musche 1 the should not be
althouth
reference
so and
takeother
to thefollow
Past that
Macusatona
1th then
the exploration
that that 'n most product of file accestation of - in styments.
(a) The U.S. should then mit to other countries . statement
of outgefoles on comments soliev to sawfa 19 the bastin
National conference the atn of high would 30,
on soliert
(1) to docume general afforties of Polate details net of
(11) to establish at once an International Trude -
lens% 13 Interior Trade Consultation where world soon se by
organization:
(111) to direct the Trade to than
into a totallot multinatural convention so mich all United and
assectated Nations would be invited to where.
0
(
-2-
TREASURY DEPARTMENT
0
C
171
TREASURY DEPARTMENT
170
INTER OFFICE COMMUNICATION
INTER OFFICE COMMUNICATION
DATE
March 13, 1945
DATE
Secretary Morgenthau ( for information)
TO
FROM
Secretary Morgenthau - For Your Action
TO
Mr. Coa FC
Subject: Land-Lease Exports to Russia
FROM
Mr. Coc FC
Subject:
Exports from occupied Germany.
March 13. 1945
The policy to be pursued concerning exports from Germany
during period of military operations in now under discussion.
In December, 1944, United States land-leene exporte to
Russia totaled approximately $268 million as compared with
about $300 million in November 1944.
1.
2.
The British have suggested an of hoo committee be
catablished consisting of U.K., U.S., France, Belgium,
Incembours, and Methorlanda, under the chairmanship of
SHARE This committee would be liven instructions that
(1) U.K. and U.S. have absolute priority, and (2) no action
be taken "which might seriously affect the future structure
Among the principal non-military items were:
of Derman economy.
Votor Trucks (ell sizes) (825 million)
Steam Locomotives (18 million)
Dried Rees ($10 million)
Lard (28 million,
Canned Mant (excluding chicken) ($5 million)
Canned Sausare ($5 million)
Wool Cloth and Dress Goods ($4 million)
C
3.
Jar Department is asking for our concurrence on this
position:
(a) Russia should be represented on Committee which
O
(b) Until Committee is formed, exports should be
restricted to military noods and should be under
Among the munitions sent were:
the authority or SCARP:
2169 unemurro scout care
1145 universal ordnance carriers
(o) Border and neutra) trade should be specifically
approved by C.O.S.
831 motorcycles
Unless otherwise instructed by you, we shall concur with
526 reilway freight cars
the BB Department proposal.
274 medium tanks
183 P63 1-eng. pursuit fighters
The Uritish proposal it interesting as # possible Indica-
tion of future policy. It involves (1) non-inclusion of
79 ordnance combat vehicles
50 B25 2-eng. medium boubers
81 87mg aircraft guns
30 047 2-enz. medium transports
11 motor torpedo boats
4. Shipments to Eastern Russia, presunably on Russian boats
via Vladivostok or some other Siberian port, accounted for
about 8105 million or the total or approximately $268 million
exported during the month under review.
should be formed by the now Koecow Reparations
Commission;
Soviet Union during the interim period, (2) granting to the
U.I. a virtual monopoly on German exports, (3) and at the same
time. protecting German industry from the demanda of liberated
areas for machinery and equipment.
beenpaid
0
totall
STANDS
SECHET
PRAZI
WAR DEPARTMENT GENERAL STAFF
Dear General
MEMO ROUTING SLIP
an Haves
1 have your letter of B March 1945, excerning the problem of
WORKS LTA.
many Dept
4.
exports from Germany in.which you wors good endiging to inclose copies of
8439
A oable free London on this subject (NOD 019). The draft reply to SCAF 196
and SCAP 199, which was airellated as CCAC 102/2, has now team discussed by
5.
the United States side of the Couldned Civil Affairs Committee in the
of NOD 619. The following you my take as representing the views of the
aroed damed addimate
U.S. side of the CCAC
comments on this
1. While the U.S. webber's pereeive no objection to the establish-
our
Y your smiled
ment of as ad hee camittee, as aggested in paragraph 4 of the London onble,
. McCly is not anxion
three questions ariso in connection with the establishment of such . committees
A. The confereor at Yelte agreed upon the establishment of
dispitel an appropriate
a Reparations Commission, whose headquarters are to be in the
My as fur for
D.S.B.R. It thought that the first order of business of the
Thanks
Commission might well be the establishment of as ad hoo group,
which pressually would function within appropriate terms of refer-
once prior to the fill functioning of the parent Comission. The
mrs Gsc
membership of such an ad 100 committee would undoubtedly be deter-
ainel by the parent committee, which of course includes the Unbalance
SECRET
among its members. dente, . problem arises with respect to London's
OFFTEC
22/
BUTCUTIC
suggestion in paragraph 4 of NOD 619, which does not include U.S.Balla
KOON
ADON the representatives an the proposal ad hee committee.
La The U.S. members of the Combined Civil Affairs Camittee de
not believe that AS all hee comuittee of the sert NOD 610 proposes
O
should be under the chairmanship of A representative of STATE. In
RECISION
TRADE MARK MICROSTAT
REG.U.S.PAT.OFF
MICROFILM
REALE
SCAP 196, SCARE suggests that the question of export of goods,
other than those indicated in paragraph 1 of SCAF 195, should be
handled by an Intergovernmental counties, which might well pro-
vide a smll staff noar SPAIN'S head quarters to advise his during
the STARS period. It is our view that export problems of the type
enviraged in paragraph 1 of UGAF 195 should be dealt with by SCARF
BE R matter of military noomality. The advisory body, or of hee
committee, would deal with expert problems outside the Bobse of
Y
questions arising under paragraph 1 of UCAF 195.
l. In accordance with the views expressed in paragraph (b)
above, the teras of reference for the al hot coanittee proposed
in KOD (19 would have to be revised, since in their present form
PLEASE THE CAILE 701
@
MAJOR ERNEST A. GROSS
Civil Affairs Division, The Dept.
Room 32 879 The Pentagon.
the ASSUM that the committee's functions would include problems
environeed by paragraph 1 of UCAF 195.
E. WISH respect to the question or exports to neutrals, the United
States view is that Any such exports, over in the cour ee of border trade, should
require previous specific approval from the Combined Citel's of staff.
3. It is our view that the reply to SCAP 196 and SCAP 199 should be
exented so AB to make SCARE current concerning the decision taken at Talta
looking toward the eate limment of A Separations Conclusion.
The United states members of the Civil Affairs Committee
will of course be lad to discuss the foregoing problems at an informal seeting
with you at your adiveniesco.
sincerely yours,
JOHN 4. MaCLO
instatent scaretor, of TBS
o
DRALL
Ext. 71721
PRECISION
TRADE MARK
MICROSTAT REG. U.S. PAT. OFF
MICROFILM
ROLL NO
prefer not to make any public announcement of our intention
COPY NO.
From:
War Cabinet office
to take reprisols; we would morely justify our action thus
if the Germans complained.
So far as requisitioning is concerned SHAEF is the
To:
Joint Staff Mission
3.
Dated:
2nd March, 1945.
only body with the necessary authority to carry this out. We
agree, however that it will be necessary to establish some
mechanism to co-ordinate the allied domands for essential
O.T.P.
SECRET
materials from Germany and to adviso SHAEF on the principles
NOD 619
Reference DON 527 of 3rd February, Control of
Exports from Germany.
Similar representations have been received from the
to be adopted in determin T al cations. Probably an intergovernmental body will eventuall/ bo aet up. as part of the
machinery for allocating reparation goods from Germany, or
French Government through the diplomatic channel. Questions
otherwise, but this will not be settled at least until after
raised in SCAF 195 and 199 have been discussed on official
the forthcoming discussions in Moscow. Meanwhile we consider
level and our preliminary views are sot out below. Please
discuss thom on the same lovol with the Americans and report
their reactions. To shall then seek the views of Ministers.
2.
Before the surrendor of Germany the allied forces
on German territory will, from the legal standpoint, only
have the rights of an occupying power and this means that,
apart from requisitions effected by the occupying forces
themselves, the right to soizo and romove Gorman stocks
would be confined to such cases as could be brought within
that action must be taken to deal with the immediate problem,
which is of much smaller dimensions, and that this can be done
without prejudice to reparation issues.
Although difficulties of transport etc. seen likely
in the initial stage at any rate to limit to comparatively
small amounts the quantity of goods which could be supplied
4.
in this way, we recognize that SHAEP may well require guidance
from allied civilian authorities on priority among possible
recipients. We think, therefore, that at the outset the most
the toras of Article 53 of the final act of the Second Peace
Conference held at the Hague in 1907. (See Manual of
practical arrangement would be forthwith to establish near
Military Law page 384.) From a legal point of view therefore the position is not going to be very clear-cut. Some
the governments of the United Kingdom, United States of
of the things which the French want to do could almost
certainly be justified, even on G strict interpretation of
Article 53: others would be border-line casos, and only the
add learly outside the powers of...nn occupant
made the Landle As regards the last class,
so Stock it on grounds of practical necessity to
comply with French request. If NO do no tro have in clear
" the the the ground of reprisols. Mo however
SHAEF an ad hoc conmittee consisting of representatives of
America, France, Belgium, Luxembourg and the Netherlands
under the chairmanship of a representative of SHAEF. Its
functions would be:
(a) To advise SHAEF of the nature and quantities
th: various governments' requirements:
(b) Where more than one government represenCed HAR
loid claims to recomwead having regar to Lease port
and other relevant fuctors. allocaticna O 2.3 acolo
which SCAEP rices he touln make available from
Germany
TRADE MARK
MICROSTAT
/
PRECISION
REG. U.S. PAT. Off
MICROFILM
ROLL NO
The representatives of His Majosty's Government and
5.
(c) In 20 far as transport equipment and coal are
concerned to recognise that its allocation for
the United States Government on the committee would be enabled
to put in bids for what might be available but their position
use should ultimately fall within the competence
should be recognized as differing from tost of other governments
represented there in the following respects:
(a) Should supplies become available which more of high
and essential value to the war effort of the British
Commonwealth or of the United States of America their
requirements would onjoy first priority, It should prove
possible for the representatives of the United Kingdom
Government to keep in touch through the existing supply
machinery with the Dominion Governments.
(b) It will be the special responsibility of the United
Kingdom and United States representativos to dissuade
the committee from sponsoring action likely to projudice
issues of policy, 0.5. over preparations.
SCAEF should retain the ultimate power of decision
of the proposed E.C.I.F.O., and E.C.O. rospectively when set up.
8.
Account would equally be taicen or any goods moved
from the countries concerned into Germuny under the authority
of SHAEF.
9.
SCAEF for his part, would keep quantitative records
of goods delivered and obtain through the intermodiary of the
committee receipts from the governmental or their agencies for
such deliveries. All allocations and deliveries would be reported to the appropriate four-party committee and where
necessary to the combined boards who would thus be enabled
to effect any necessary adjustment in overseas import
programmes.
whether any exports from Germany should be permitted for such
It in not considered necessary at this stage to
make general provision for the export, apart from limited
purposes and in exercising his discretion could boar in mind the
border trade GLD authorised, of any Gernan surpluses to neutral
necessity of taking no action which might seriously affect the
future structure of Gorman economy without prior reference to
countries with the possible exception of coal. If circumstances
make it necessary, however, specific requirements of neutral
C.C.S. Similarly no export would be permitted of any largo
countries would have to be considered on an ad hoo basis. In
surplus which might Bucome available without prior reference to
the event of and coal being available the London Coal Committee
C.C.S. Such major questions would fall for solution betwoon
pending the setting up of E.C.O. would be notified and if they
decide that coal should be made available to a European neutral
6.
the two governments in the light of policies then prevailing.
Before being permitted to take delivery of any goods
7.
10.
the question of payment would have to be cleared with the
the government concerned would be required to accept the
appropriate authority before the transaction was closed.
following conditional (a) To be responsible for accounting for then in due course
11.
(b) In PO for as the goods might be subject to & -lain to
restitution to accept accountability for than to the
restitution commission (See E.A.C. papers (4) 23 and
(45) 5.7
The arrangements proposed in this telegram would be
recognised as being purely temporary and without prejudice to
future arrangements, They would require reconsideration in
the event of large enemy industrial area being uncovered
since the disposal of any surpluses on this scale mouth ritee
major questions of reparation and supply policy.
RECISION
TRACE MAR
MIGROSTAT/NUSPALO
12.
MICROFILM
with regard to the subject matter of SCAF 199, any
long-term arrangements would have to be made in the light of
the proposal to establish 4 restitution commission. For the
present we would be content with the ad hoo procedure explained in the tologram under reference.
2.0.0.
DON DISTRIBUTION
0219152
PRECISION
TRADE MARK
MICROFILM
BOLL NO
181
25
MAR 13 1945
Year Mr. MeClay
This is in reply to your letter of March 5, 1945
enclosing a revised draft of the Financial Directive
Appendix * of JCS 1067, dated February 12, 1945.
This revised draft meets with the approval of the
Treasury Department.
Sincerely yours,
(Signee) H. Morgenthau, Jr.
Mr. John J. Wellay,
Assistant Secretary of Mar.
John, 3/7/45
TOP SECRET
WAR DEPARTMENT
OFFICE OF THE ASSISTANT SECRETARY
WASHINGTON, D. C.
5 March 1945
The Nanorable
The Secretary of the Treasury
Dear Mr. Secretary:
: refer to your Letter of 7 February 1945 inclosing
a copy of draft revision, dated 31 Jensury 1945, of Tinanctal Directive, Appendix #3 of JCS 1067, which you state
meets with the approval of the Treasury Department.
Since the receipt of your letter, certain changes
in the above-mentioned draft directive have been mggested. Those changes have been cleared informally with
members of your Department's Division of Mometary Re-
search, and are incorporated in draft, dated 12 February
1940, attached hereto.
Your approval of this later draft, OF your contents
thereon. will be appreciated.
Sincerely yours,
for fully
JOHN J. KoOLOY
Assistant Secretary of Var
Atat
as above
TOP SECRET
PRECISION
TRADE MARK MICROSTAT NO. U.S.PAT. OR MICROFILM
ROLL NO
2"
TOP SECRET
12 Jebruary 1945
*A to ⑉
TRAPS
TOP SECRET
c. To prohibis, or to prescribe regulations regarding, treasfer or
APPENDIX KYP
TRANSIT
other dealings in private or public securities or real optate or other property.
4. To close benefits, best only for approod Long enough for you to in-
1,
You will regulate and control currency circulation vd thin your none
in accordance with the following provisions, not subject to any screed policies
troduce sotisfactory control, to redova Test not other undesirable personnel, and
to issue instructions for the determination of accounts to be blocked under
of the Control Council.
M below.
Be United States forces and other Attice forces within your some will
e. So close stock exchanges, insurance companies, and similar finanuse Allied Military marks and Reichmark currency or coins in their possession.
cirl institutions for such periods as you deen appropriate.
Allied Hilltory marks and Reichmork currency one coin now in circulation in
Gereany will be legal tender utilhous distinction and will to interchangeable at
the rate of 1 Allied Hilitary for 1 Mitchenerk. Belc
and other Derann militory will 201 be legel tender is Germany.
D. You will receive arterate instructions relative to the currency
which you will use is the event that for any reamon ecegunte supplies of Allied
Hilitary parks and Reichancrico are not veliable.
0. You will no.1 amounce or establish in your none. until receipt of
further instructions, any eneral rate of exchange between the Selecmark on one
hand and the U.S. coller and other currencies on the other. a rate of
exchange to be used exclusively for 140 of troops and military accounting yurDOBES in your BOSE will be communicated secerately So 201.1
Subject to any agreed policiee of the Control Council, you IT eatherised to tejes the following stope and to put into effect such further financial
neasures ne you my deep necessary to econolish the perposes of your occupation.
A. To permit or require the the Zentenbeek or eagy other
bank or agency to 10000 Beak notes and CUTTONEY which will be legal sender: with
out such authorisation no governmental or private bank or agency will be permitted to issue beak notes or currency.
b. To require the Gerean authorities to minde available Reichanork our-
rency or bank credits free of cost and in amounts sufficient to sect all the
expenses of the forcee of occupation. the cost of Allied Hilltary
f. 20 establish ceneral or limited morntorium or moretorie only to
the extent clearly EXCESSARY to corry out the objectives of Allied Hilitary
Government,
3. Subject to any agreed policios of the Control Council, you will take
financial seasures with D view to preventing or restraining 00 for ALD is precticable each disturbances or developments in the monetary and financial field
OR in your Jolgment threate.) to disrupt the production or distribution of
critically needed supplies. You should regard as oritically needed supplies
these essential to forestall or alleviate disease and disorder such as might
endanger the forces of occupation or haper the accomplishment of their steeton,
Except for the purposes specified above, you shall be guided throughout by the
general rule that no stops shall be by you (a) looking toward the financial
rehabilitation of Germany nor (b) designed to knistain or strengthen German
finances.
4. subject to any agreed policies of the Control Council
a. Total will prohibit the payment of military pensions or other emolusente, but this will not preclude the payment by the Germa authorities of
compensation at the rate of military pensions therefor for physical disability
acquired in the military service, limiting the recipient's ability to work.
S. Tou will prohibit the payment of pensions or other enolments by
760408 of membership in or services to the forner East party or its affiliated
organizations.
Government.
TOP SEGRET
for SEDRET
RECISION
TRADE MARK
MICROFILM
MICROSTAT
ROLL NO
2"
TOP SECKET
for the Health Pirty 10 Norther its disterents OF to clack
TOP
its activities.
0. You will take such action necessary to Insure that all
(2) Pervoca >local under tration oz other System 62 custoly
love and practices relating to truction or OTHER fields of finance. whith ST
App you. each r11 other persons micified kg military COVER
cristante for or against NOO persons because roce, color, creed or political
went for to State at Unview 7014
(a) Property which has has the N wronghis etc
opinion, will be received, expended, or abrogated to the extent necessary to
eliminate FISH discrimination. The Genann authorities will be held responsible
of confincation. disposition OZ exotitation. whether purpose
for taking such presures in the field of truntion and other fiel to of public
to logislation OF by procedure surporting to follow forms
finance 68 will further the accomplishment of the objectives of Affted Military
of 1rs oz otherwises
Government.
d.
(0) Maries of art OZ euisure 121 serial of valise or Importance, 20-
You WIII Amound or block all mild, silver, circumctes, securitions
cardless of the cheroof.
accounts in financial institutions, credite, valuable papers, and all other
You will talis such action 1.0 will isumure that any Imperation& or blocked amouts
nabots failing within the following categories
will The coult with only as permitted enter licenses OZ other Instructions which
(1) Property overed or controlled directly or indirectly, in whole
you may isea. In the en.on particularly of property blackof toolog (1) (b)
or in part, by any of the followings
above, you will preceed to cropt licensing sensures which vitile FOOD
(a) The Gerean Reich, OF any of the Lender, Game or provinces,
property enter murreillance would sermit its the in consenence visis the objectives
any Zrois, Municipality or other stailer local raddivision;
of the occupation.
or ANY agency or instrumentality of any of their including
5. subject to any greed policies of the Control Council, train will prohibit,
all utilities, undertokings, public corporations oz monop
except 65 you 10g permit by regulation or license, all cenlings in cold. silver,
olies under the control of ANY of the above;
foreign exchange. 220 all foreign flauncial to? Cyreign 1212m transcetions 12
(b) Governments, actionale or residents of other nations,
kind. You will not, however, receipt of further instructions, must
including those of territories occupied by them, at VIII
is eag outlight of Service foreign exchange nometo wion uporte, including those
with BOO of the United Nations at any time since 1
from neutral countries, rat will not mitherize payment in Jeruany's foreign
September 1939:
exchange for each other purposes, except where clearly end urgently needed to
(c) The Kasi Party, all offices, Departments, genetics and
further the screed objectives of the Allied Hilltory Government, In imposing
organisations forming part of it, attached to, or cobtrolled by its its officiale, LeeLing members and FROM
portere;
the controls birein described
()
e. You will reduce to the communities and centrol of custodians or
agencies designated by you all German foreign exchange assets of EVERY kind and
(a) A11 organizations, clabe or other associations prohibited
description:
or dissolved benefits government;
(e) Absentee owners, cluding United Nations and neutral
governments STATE nationale:
(f) Arti institution steated to public worship, charity,
education or through and sciences which has been used
TOP SECRET
b. will satebileh effective controls with remeet to n11 foreign
exhance treametions,
(1) Transactions C.O to property between persons institute Dermany
and persons outside Dereany
TOP SECRET
ON
TRADE
MARK
MICROFILM
MICROSTAT
ROLL NO
12"
TO CLUBLE
(2) Creasections over for or to become
Crue from NY person in Ocrueaz to pay person misside Germany:
and
(5) Cransactions taveAyXns the Agartation Into or exportation
from German of any foreign exchange nanet OZ other form of
property.
6. It is LOT enticleated that you will under credite avoilable to the
Heichabank or other bonk, or to or private institution. If in
your opinion such ceston beasen cemetici, you BEY salan ench action
P.S TOS WT coca proper 100 in PER event you will report the facts to the Control
Council.
7. Is addition to the provisions OF Article On of Appealix A. you will
eliminate other undestrable person e and influences from the Brich Mately of
Finance and from #11 public and private financial institutions, agencies and
organizations.
8. You will ariatoin esch accounts and records as DAY be to
reflect the financial operations of the military government in your none and
you will provide the Control Council vita such information as it NO require,
incInding information in connection with the MAD of currency by your forces,
FTY governmental cettlements, occupation costs, ml other expenditures orising
out of operations or activities involving preticipation of your forces.
()
TOP SECRET
TRADE MARK
MICROSTATI MICROFILM
BOLL NO.
185
The 3lew York Times
Times Square
March 13, 1945
Dear Henry:
I am sorry that your plans
took you away from Washington and that
I was unable to have a chat with you.
Here's hoping for better luck next
time :
Yours,
arthur
Honorable Henry Korgenthau, Jr.
Secretary of the Transity
Washington, D.C.
L
PRECISION
0
TREASURY DEPARTMENT
189
INTER OFFICE COMMUNICATION
DATE
TO
Secretary a Tgenthes
FROM
Mr. Has
Subject: Outback Situation
No have been keeping in touch with Mr. Fox at as
regarding changes in the aunitions production schedules
both with and without the defect of Germany. The situa-
tion continues cloudy. as the Aray is in the
process of reviewing its plans. Tentative schedules
assuming Germany staye in the ver throughout the rest of
this year have been worked out and indicate that the
dollar
value
production
will FOOD - Hight increase
over the
next of
several
months.
C
The plans for carrying on a one-front 12.2 after the
German defeat are still being worked on by the Army. 4
review of the latest plans is now being conducted at
General Schervell's level with the help of c three-man
board, according to Mr. Fox, but there in no indication
3.6 to when the data will be provided to WP. Kr. For paid
it will hig guess that it would be at least another week or
ten days before even preliminary figures you'd be received.
At present at thinks that the general outlook 10 about the
same 0.0 be and Mr. Krug re orted to us a few veeks ago,
namely, that outbooks after the German defeat vill be alow
and not Very sharp, and in the aggregate they will not
come anywhere
about
Last fall. near the 40 percent level which was talked
MAR
13
PRECISION
TRADE MARK
MICROFILM
MICROSTAT
ROLL NO.
190
191
beloes of Bar Oliver is Beaber Market
(In U.S. dollars per ounce)
MAR 13 1945
late
High
les
1943
Dear Sonator (cCarrent
Hr. Crowley, Administrator of Foreign Economic
Administration, has forwarded to no . BODY of your
letter regarding the use to which lend-lease silver
is put by the Government of India. Mr. Growley #:6"
gested that the Treaming Department may have information which would be of interest to you.
I believe that you may find of interest the
attached table giving orices of silver in the Bombay
market during 1943, 1944 and the latest figures avail=
January
.22
.PO
February
.86
a
March
.00
.06
April
1.04
.88
May
1.09
.97
June
1.02
.96
July
.97
.82
August
September
.00
.06
.98
.93
October
November
December
able for 1945.
It will be noted the t the price of silver did
1.02
.99
.09
.97
.98
.92
in
.94
1944
not dealine appreciably after August, 1944, the month
in which the Reserve Bank of India began to se11 allver.
The price of silver has continued to be around $1.00
per ounce or about the same level as revailed during
1943. This is in accord with the assurances which we
January
February
1.02
.98
March
1.11
1.00
1.14
1.06
April
recei from the Government of India that silver
would be sold for stabilization purposes and not to
break the rice of silver in India.
Sincerely yours,
(Signed) H. Morgenthav, Jr.
May
1.12
1.06
June
1.06
1.01
July
1.11
1.06
August
1.06
1.05
September
October
1.06
.97
.99
.97
November
.99
.91
December
1.06
.97
1945
Honorable ret coarren.
United States Senate.
0
ISP/efa 3/8/45
January
1.05
.97
February
1.02
.98
FOREIGN ECOMOMIC ADDINESTRATION
C
OFFICE OF THE ATHENSISTRATION
O
FOREIGN ECONOMIC ADMINISTRATION
P
T
OFFICE OF THE ADMINISTRATOR
WASHINGTON 25, D.C.
March 3, 1945
Dear Senator McCarrant
I have the following Information for you with respect to the
questions raised in your letter of January 19, 1945 regarding the
MAR 3 1945
lead-leasting of silver to the Government of India.
The regulation for 20 million outper of silver for coinage
for India referred to In IV letter of January 1, 1945 brings to &
BAL Mr. Secretary:
total of 40 million ounced the quantity of silver approved for trans-
I an enclosing a copy of 6 letter which T
for under lead-lease to the Government of India for essential coinage
purposes only. The earlier 20 million ounce transaction together
relved from Senator McCarron regarding the use
with the agreement by the Government of India pertaining to the return
of the silver TO . brought to your attention at the time in accordance
with our caston of keeping you advised of all lend-Jenae oflver trans-
which lend-lesse silver is put by the Governnt of India.
actions.
In addition, however, you will reoull that 100 million ounces of
I believe that the Treasury Department any
silver were lens-leased to the Government of India for coinage purposes
and for the purpose of stabilizing prices in India in the interest of
ve information with respect to the market price
this country and India In the joint war effort. Secretary Morgenthau
and Secretary Stettinius, who WILD then the Land=Lesse Administrator,
silver in IMAIS and other information which IN
discussed this transaction In advance with the Senate Special Silver Com-
mittee and explained that the silver would be used by India to stabilite
of interest to Senator McCarran.
the price of silver in order to help prevent inflationary prices in India
which would interfore with the prosecution of the VAT in that Laportant
have of allied military operations. They explained further that the
Sincerely
silver would be returned to the United tes Treasury after the end of
the sur and would not be dumped on the silver Barket 10 as to depress the
price of silver. A 00 SU of the agreement lated June 8, 1944 between the
United States and India with reapect to this silver transnetion was sent
to you.
Leo T. Crowley
Administrator
I
Clopures
I
1 Honorable
1 Secretary of Treamury
shington, D. C.
The 100 million ounces of silver transferred to the Government of
India pursuant to the agreement of June 8, 1944, WILD therefore not intended for essential coinage purposes alone, but VBS also intended for
use for estabilization purposes.
I have taken the liberty of sending A GO SO of your letter of
January 19 to Secretary Morgenthria in order that he my provide you with
any further Information available to the Treasury Department on this sub-
ject which nig be of Interest to you.
Sincerely yours,
(signed)
Leo T. Crowley
Monorable Pat McCarran
United States Senate
Washington, P.C.
Administretor
PRECISION
TRADE MARK
MICROFILM
MICROSTAT
ROLL NO
194
195
March 8, 1945.
1945
Dear Jalye attems
Dear Mr. Secretary:
I enclone a enpy of a letter I have received from Mr. R. 1. Brand,
head at the United Kington Treasury Delegation in Mashington, portain-
the Stage II negotiations when Lord Keynea was here, and out of certain
which has lang been previling between us.
of which you were Chairman.
You will recall that (1) January is 1943, I wrote you a letter with
anclosiums setting forth the (set that the British hair, during the Stage
II disquanions, realisted a fomal alain for 534 million representing
thats estimate of the restating value of favilities which NO had agreed
to saice over, and requesting that you investigate the present status of
the proposal transactions with . does to excileting then as originally
contexplated. I patated out the nature of our commitment in this matter,
which was first gives over two years age and was miterated Informally
during
the State
II discussion, and stated that I - and that this
considtreast
be fulfilled.
1 was starm of the fact, states in your letter of January 21. that
the itlair had issue asticad about year as to sum these facilities
over to 40 as resigned aid and that they had realied that they pre-
ferred to leave the question in the Trousury had made the
- proposal and received the sam NUMBER I had assured, however,
that by their Notion in preserving the elate at the time of the recent
Land-Lease dissuasions, they had Lixiliated shoir unilliament to water
tain the reciprocal and proposal.
than - learned that you thought it individuals to make arrangamenta
for cash assilmant until the British femally refused to provide the
facilities as reciprocal aid, - discussed the question with the and
suggested
that they undertain to modely you with . statement of their
position.
The enclosed letter from it. Brand is their statement. : hope that
you will 1996 first is canable to process with dute ver arrangemental are
necessary to effect the early completion of these transactions.
yours,
Signat H Morgenthese in
Mabers i. /atternon,
later dentary of are
action then taken by the American members of the Combined Committee,
I refer to the claim which was contained in paragraph 10 (11) of
Chapter III of the U. K. statement of Requi resents for Stage II, in
peat of what is kare as the balance of the *take outa* of capital
facilities. This claim, the amount of which was tentatively put at
$38 million, was in respect of items listed in your letter of the 28th
res-
September 1942 to Sir Frederick Phillips, in respect of which no payment
had been made by the U. S. Government.
During the Stage II discussions we were informed that this claim
was accepted in principle, subject to review of the arrangements previously made, a valuation of the facilities, and due availability of
funds san paragraph 2 of the Agreed Minutes of the 7th Meeting of the
Combined Committee held on the 17th November, 1944, and item 3 (e) of
Annex *C* to those minutes.
We understand that in pursuance of the decision taken during the
Stage II discussions you sent a letter to the ar Department, on behalf
of the American members of the Combined Committee, asking for the War
Department to implement the decision by making payment to the U. K.
Government of the sun found to be due unier this claim. Since then
have had no further information. I believe, however, that the Mar
Department have now intimated that they are unable to proceed with
settlement from
unless
statement
us
we
a
ing to the question of take-outs of am timbooned capital facilities
I an afraid I have to invoice your aid in a matter arising out of
they can have, for the purposes of the record, a
indicating
that
the
U.
K.
Government
is
not
prepared
to make the facilities available to the U. S. Government on the basis
of Reciprocal Aid. The suggestion that Reciprocal Aid should be granted
was put forward in a letter dated 6th December, 1943, addressed by Mr.
Patterson to Sir Walter Venning, the Director General of the British
Ministry of Supply Mission. In a letter of the 1st February, 1944, to
Mr. Patterson, Sir Malter Venning stated that the U.K. Government had
reached the conclusion that the method of settlement in regard to the
balance of these facilities should be left over for future consideration
as they did not feel justified in agreeing to the proposal that they
should be made available on the basis of Rediprocal Aid.
An I have indicated above, the J. K. Government put forward a proposal,
in its Stage II Case, that having regard to the difficulties of the U.K.
dollar position, the U.S. Government should now implement the arrange-
include
-3/13/45
ments contemplated in 1942 by taking over the balance of the facilities
against & dollar payment. That proposal was accepted in principle but
avaits implomentation. It follows that the U. K. Government have in fact
PRECISION
TRADE MARK
MICROSTAT
REG.U.S.PAT.ORF
MICROFILM
ROLL NO
196
-2MAR 13 1945
by this action already confirmed that they do not 000 their WAY to nake
the facilities in question available to the U. 3. Government on the basis
of Reciprocal Aid.
May suggest therefore that you should send a oapp of this letter
to Mr. Patterson in order that he may have on record the statement by
the U. K. Government which he asks for. I also sour that when this has
it will then be possible for the Har Department to implement the
Dear Mr. Brands
Thank you for your letter of March 8, 1945 setting
forth your position on the long-pending question of the
the main
decision been done taken by Morganthau Committee discuss The details British which Kinistry may of
Supply Mission reside of course ready to any
still require clarification. should be grateful for any assistance
take-outs of capital facilities, As you requested, I
have sent to the Under Secretary of far, Robert P.
Patterson, a easy of your letter and expressed the hope
that its contents will enable him to naice whatever an
rengments are necessary to effect the early completion
which you, as Chairman of the Combined Committee, can give in securing
an early settlement of this matter, to which my Government attach con=
siderable importance.
of these transactions.
Yours sincerely,
Enclosed for your information is a copy of my Letter
to Oster Secretary Patterson, transmitting to his a copy
of your letter to m.
R. H. Brand.
Sincerely yours,
The |emourable Henry Morgentham, Jr.,
(Signed) H. Morgenthau, Jr.
Secretary of the Treasury,
Washington, D. C.
Mr. R. H. read,
United Kingdom Treasury Delegation,
P. O. Bax 600,
Washington, D. c.
Enclosure.
DIC:Dri -3/10/45
MICROSTAT
RECISION
MICROFILM
RIGUSPALOR
UNITED KINGDOM TREASURY DELEGATION
tum
2/9/48
BOX ARD
March 8, 1945.
Mr. Secretary
RENJAMIN FRANKLIN STATION
WASHINSTON. D.I
TELEPHONE EXERUTIVE ****
March 8, 1945.
swaits immementation. TO follows that the U.K. Government have in
fact by data action already confirmed that they do not see their way to
the facilities in question available to the U.S. Government on the basis
Dear Mr. Secretary:
of Reciprocal Aid.
May I suggest therefore that you should send A CODY of this
letter to Mr. Patterson in order that be MAY have CB record the statement
I AR afraid I have to invoke your aid in A matter arising
out of the Stage 11 negotiations when Lord Kaynes VIA here, and out of
by the U.K. Government which he asks for. also trust that when this has
certain action than taken by the American members of the Combined Committee,
been done it will that be possible for the War Department to implement the
decision taken by the main Morgenthan Committees The British Ministry of
Burply Mission remains of course roady to discuss any details which may
of which you were Chairman.
I refer to the elaia which WILD contained in paragraph 10(11) of
Chapter 111 of the U.K. Statement of Requirements for Stage 11, In respect
still require clarification. should be grateful for ABY assistance
of what is known SU the balance of the *take outs* of facilities.
which you, as Chairman of the Combined Committee, DBE give in securing
respect of items listed in your letter of the 28th September 1942 to
siderable importance.
an early settlement of this matter, to which my Government attach con-
This claim, the Amount of which WILD tentatively put at 838 million, was in
sincerely,
Bir Frederick Phillips, in respect of which no payment bad been made by
the U.S. Government.
During the Stage 11 discussiona TO were informed that this
claim WILD accepted in principle, subject to review of the arrangements
Brand.
previously made, A valuation of the facilities, and due availability of
Cunda DOO paragraph 2 of the Agreed Minutes of the 762 Meeting of the
Combined Committee held on the 17th November, 1944, and item 3(a) of
Annex *C* to those minutes.
Stage
11
We understand that in purpuance of
the decision takan during
belowthe
the
discussions
you
sent
letter
to
War
Department.
on
The Honourable Henry Morgenthau, St.,
of
the American members of the Combined Committee, asking for the War Department
to implement the decision by making payment to the U.K. Government of the
sum found to be due under this claim. Since than w have had no further
information. I believe,
however, that the Far
Department have now instinated
settlement unless they 062 have.
unable
they
are
to
proceed
with
a
that
Com
the purposes of the record, A statement from indicating that the U.S.
Government 18 not prepared to make the facilities available to the U.S.
Government on the basis of Reciprocal Aid. The suggestion that Recipronal Add
should be granted VIA put forward in A Letter dated 6th December, 1943,
addressed by Mr. Patterson to Sir Walter Venning, the Director General
of
the Brittah Ministry of Dupply Mission. In A letter of the 1st February
1944, to Mr. Patterson, Bir Walter Yonning stated that the U.S.
had reached the conclusion that the method of settlement to regard to the
balance of these facilities should be left over for future consideration
as they did not feel Justified In agreeing to the proposal that they should
be made available OF the basis of Reciprocal Atd.
As I DATE indicated above the U.K. Government put forward
A proposal, to its Stage 11 Case, that having regard to the difficultion
of the U.K. dollar position, the U.S. Government should new implement the
arrangements contemplated in 1943 by taking over the balance of the facilities
against & dollar payment. That proposal WAS accepted in principle but
units/
Secretary of the Treasury
Washington, D.C.
PRECISION
TRADE MARK
MICROFILM
MICROSTAT
ROLL NO.
2"
197
C
MAR 13 1945
Dear Mr. Claytons
Thank you for sending - copies of the documents
comprising the Land-Lease Agreement with the Provisional
Government of the French Republic. then she printed
document is are ready, - would like ten copies for our
use, if this is convenient.
Sincerely yours,
(Signed H. Morgenthau Jr.
Henorable William be Clayton,
Assistant Secretary of State,
ashington, D.C.
FORM 3/13/45
PRECISION
TRACE MARK
MICROFILM
MICROSTAT
1's
PRINCIPLES APPLYING TO NUTUAL AID IN THE
O
PROSECUTION OF THE WAR AGAINGT AGGRESSION
Preliminary Agreement between the United
States of America and the Provisional
Government of the French Republic.
DEPARTMENT OF STATE
hereas the Government of the United States of America and
WASHINGTON
the Provisional Government of the French Republic declare that
they are engaged in A cooperative undertaking, together with
March 10. 1945
every other nation or people of like mind, to the and of laying
the bases of A Just and enduring world peace securing order
under law to themselves and all nations;
Ky dear Mr. Secretary:
Enclosed are copies of the documents oom-
prising the Land-Lease Agreement signed with
the Provisional Government of the French Republic
on February 28, 1945 As soon as the forma
documents have been printed we shall be glad to
provide such additional oopies as you may require.
Sincerely yours,
For the Acting Secretary of State:
11 C layton
Assistant Secretary
Master Land-Lease Agreement between the
United States and Provisional Government
Reciproom Aid offer from the French Government
Reciprocal Aid Acceptance by Department of State
from Department of State to French
Hemorandu.ru
Government
Copy letter dated
1945 from
to Mr.February
Grew with28
attached
statement
Mr.
Copy
from Mr. Grew
,
ter dated February 28 1945 from
to Mr. Grew regarding troop pay
Kr
ter dated February 28 1945 to
of
Copy
Mr. Monas from Mr. Grew regarding troop pay.
The Honorable
POSITION
Henry Morg thau, Jr.
Seore ry of the Treasury
natories of the Declaration by United Nations of January 1,
1942, have subscribed to a common program of purposes and prin-
ciples embodied in the Joint Declaration, known as the Atlantic
Charter, made on August 14, 1941, by the President of the United
States of America and the Prime Minister of the United Kingdom
has determined, pursuant to the Act of Congress of March 11,
of France
Agreement between the United States and
Provisional Government of France
ter dated February 28, 1945 to
and the Provisional Government of the French Republic, as sig
of Great Britain and Northern Ireland;
And whereas the President of the United States of America
Enclosures:
Copy
And whereas the Government of the United States of America
1941, that the defense of any French territory not under the oontrol of the Axis is vital to the defense of the United States of
America:
And whereas the United States of America has extended and
is continuing to extend to the Provisional Government of the
French Republic aid in resisting aggression:
And whereas it is expedient that the final determination of
the terms and conditions upon which the Provisional government
of the French Republic receives such aid and of the benefits to
be received by the United States of America in return therefor
RECISION
TRADE MARK
LICROSTAT MICROFILM
*OLL NO
fill
articles, services, facilities or information as it may be 100
A
should be deferred until the extent of the defense aid is known
and until the progress of events makes clearer the final terms
and conditions and benefits which will be in the autual intereats of the United States of America and France and will promote
the establishment and Sintenance of world peace;
And whereas the Government of the United States of America
and the Provisional Government of the French Republic are sutu-
ally desirous of concluding now a prelisinary agreement in
regard to the provisions of defense aid and in regard to certain
considerations which shall be taken into account in determining
such terms and conditions and the making of such an agreement
has been in all respects duly authorized and all acts, conditions and formalities which it any have been necessary to perform,
fulfill or execute prior to the making of such an agreement in
conformity with the laws either of the United States of America
OF of France have been performed, fulfilled or executed as
required;
The undersigned, being duly authorized by their respective
Government for that purpose, have agreed as follows:
Article I
The Government of the United States of America will con-
tinue to supply the Provisional Government of the French
position to supply.
Article III
The Provisional Government of the French Republic will not
without the consent of the President of the United States of
America transfer title to, or possession of, any defense article
or defense information transferred to it under the Act of
March 11. 1941 of the Congress of the United States of America
or permit the use thereof by anyone not an officer, employee,
or agent of the Provisional Government of the French Republic.
Article IV
If, as a result of the transfer to the Provisional Government of the French Republic of any defense article or defense
information, it becomes necessary for that Government to take
any action or make any payment in order fully to protect any of
the rights of a citizen of the United States of America who has
patent rights in and to any such defense article or information,
the Provisional Government of the French Republic will take such
action or make such payment when requested to do BO by the
President of the United States of America.
Article V
The Provisional Government of the French Republic will
return to the United States of America at the end of the present
Republic with such dafense articles, defense services, and
defense information as the President of the United States of
emergency, as determined by the President of the United States of
America shall authorize to be transferred or provided.
as shall not have been destroyed, lost or consumed and as shall
Article II
The Provisional Government of the French Republic will con-
tinue to contribute to the defense of the United States of
America and the strengthening thereof and will provide such
America, such defense articles transferred under this Agreement
be determined by the President to be useful in the defense of
the United States of America or of the Western Hemisphere or to
be otherwise of use to the United States of America.
PRECISION
TRADE MARK
MICROSTA MICROFILM
ROLL NO
At an early convenient date, conversations shall be begun
Article VI
In the final determination the benefits to be provided
to the United States of America by the Provisional Government of
the French Republic full cognicance shall be taken of all prop-
orty, services, information, facilities, or other benefits or
considerations provided by the Provisional Government of the
French Republic subsequent to March 11, 1941, and accepted or
acknowledged by the President on behalf of the United States of
between the two Governments with A view to determining, in the
light of governing economic conditions, the best BESON of attaining the above-stated objectives by their own agreed action and
of seeking the agreed action of other likeminded Governments.
Article VILI
Thie Agreement shall take effect RE from this day's date.
It shall continue in force until A date to be agreed upon by the
two Governments.
Signed at Washington in duplicate this 28th day of February
America.
Article VII
In the final determination of the benefits to be provided to
1945.
FOR THE GOVERNMENT OF THE UNITED STATED OF AMERICA:
the United States of America by the Provisional Government of the
French Republic in return for aid furnished under the Act of
Congress of March 11, 1941, the terms and conditions thereof
shall be such as not to burden commerce between the two countries,
but to promote mutually advantageous economic relations between
then and the betterment of worldwide economic relations. To that
end, they shall include provision for agreed action by the United
States of America and France, open to participation by all other
countries of like mind, directed to the expansion, by appropriate
international and domestic measures, of production, employment
and the exchange and consumption of goods, which are the material
foundations of the liberty and welfare of all peoples; to the
elimination of all forms of discriminatory treatment in international commerce, and to the reduction of tariffe and other trade
barriers: and, in general, to the attainment of all the economic
objectives set forth Laishe Joint Declaration made on August 14,
1941, by the President of the United States of America and the
Prime Minister of the United Kingdom.
FOR THE PROVISIONAL GOVERNMENT OF THE FRENCH REPUBLIC:
ICROSTAT/MGUSPAT.O
MICROFILM
such of the anttelen sad services net forth 1= medule 1
ABORKED hereta, to the Provision
Government of the French
ON
Retween
11 Larries
and
the
everyment
acublic
by the resident that such sid 1. no longer necessary to
the procecution of the war, in an orderly inner which
will best promote their autual Internets,
For the curtore of attaining the above-stated objectives, the Government of the United States of series
As parties signatory to the United Nation
Declaration of January 1, 1942, the Government or the
United States of America and the Provisional Government
of the French Republic have pledged themselves to employ
their full resources, military and economic, against
those nations with which they are at VSP. In the DPEliminary agreement of February 28, 1945 between the
Government of the United States of Aperies and the
Provisions! Government of the French Republic, on the
principles applying to autual ald, each contracting
government undertaken to provide the other 11th such
articles, services, facilities and Information useful
and the Provisional Government of the French Herublie
agree AF follows:
ASTICLE I
All aid undertsken to be provided by the United
States of America under this agreement shall be for
Continental France and shall be made available under the
authority sed subject to the terms and conditions of the
Act of Congreen of March 11, 1941, as amended and any
appropriation nots thereunder.
ARTICLE II
The united states of America will transfer or renter
in the prosecution of their cosson var undertaking KR
such of the arttalen and services not forth in Schedule 1
each any be in a position to supply.
the Government of the United States of America and
annexed hereto, to the provisional Government of the French
the Provisional Government of the French Recublic desire
may authorize to be provided prior to a determination by
the President that such articles and services are no
to Insure the continuing provision of ruch articles,
services, facilities or information without interruction
ovine to any uncertainty as to the date when the military
resistance of the common enesy MAY cease; and desire to
Insure further that such articles, services, facilities
or Information BY shall be spreed to be furnished by the
United states for the purcose of providing var Aft to
the Provisional Government of the French Republic shall
be discover of and transferred, following A determination
by the
Republic, as the President of the United States of America
longer/necessar to the prosecution of the VAP. Any
articles and services set forth in Schedule 1 transferred
or rendered to the Provisional Government of the French
Renublic prior to such determination shall be provided
uron terms the final determination of which shall be deforred until the exteat of lend-lease aid provided by the
United States of America and of peoinrocal aid provided
by the
MICROSTAT
REG. U.S.PAL.OR
MICROFILM
ROLL NO
such of for artteler san services not forth Ln chedule J
-
ENDORSE hereto, to the Provision Government of the French
the of
Retween th Larries and
will Dest nonote their autual Intereste,
For the purpose of attaininir the above-stated ob-
AB parties signatory to the United Nations
Declaration of January 1, 1942, the Government of the
jectives, the Government of the United States of America
and the Provisional Government of the French Renublin
United States of America and the Provisional Government
agree SF follovel
of the French Republic have pledged themselves to employ
their full resources, military and economic, arminet
those nations with which they APF at VSF. In the DP-
ARTICLE
All aid undertsken to be provided by the United
liminary agreement or February 28, 1945 between the
tater or America_under this agreement shall be for
Continental France and shall be made available under the
Government of the United States of America and the
authority and subject to the terms and conditions of the
Provisional Government of the French Republic, on the
Act of Congreen of Kareh 11, 1941, as amended and any
principles applying to autuol ald, lesah controlting
appropriation sats thereunder.
government undertaken to provide the other 11h such
articles, services, facilities and Information ureful
in the profecution of their common VAP undertoking ..
each any be 10 a position to supply.
The Government of the United States of AMERICA and
the Provisional Government of the French Renabile desire
to Insure the continuing provision of ruch articles,
services, facilities or Information without Interruption
O
by the President that such ald 14 no long ABORTIARY to
the forecution of the war, in an orderly manner which
ASTICLE II
The united states of Amerien will transfer or realer
such of the articlee and services not forth in Schedule 1
annexed hereto, to the Provisional Government of the French
Republic, as the President of the United States of America
may authorize to be provided prior to n determination by
the President that such articles and services are no
oving to any uncertaint A to the date when the military
longer necessary to the prosecution of the VAP. Any
articles and services not forth in Schedule 1 transferred
resistance of the GODE newy may ceaser and desire to
or rentered to the Provisional Government of the French
Inrure further that CU rtielee, services, facilities
Renublic prior to such determination shall be provided
OF Information BE the syreed to be furnished by the
upon term the final determination of which shall be deforred until the exteat of lend-lease aid provided by the
United States of America and of reciprocal aid provided
United States for the of providing YOP A14 to
the Provisions) Govern
of the French Republic shall
be discoved or and to rred, following determination
by the
by the
PRECISION
TRACE MARK
MICROSTAT
MICROFILM
ROLL NO
-3-
1
by the Provisional Government of the French Republic is
within such periods of fino AS may be authorized by law,
known and until the progress of events makes clearer
and the Provisional Government of the French Republic
the final terms, conditions and benefits which will be
in the nutual interests of the United States of America
and Frence, in accordance with the torus of the preliminary agreement of February 28, 1945, and which will
agrees to accept, the defense articles set forth in
Schedule 2, annexed hereto. The Provisional Government
of the French Republic undertakes to pay the United
States of America in dollars for the articles transferred
promote the establishment and saintenance of world peace.
under the provisions of this Article in accordance with
ARTICLE III
the terms and conditions prescribed in said Schedule 2.
After A determination by the President of the United
ARTICLS Y
States of America that any of the articles and services
Changes may be made from time to time in the items
set forth in Schedule 1 are no longer necessary to the
prosecution of the var, the United States of America will
set forth in Schedules 1 and 2 annexed hereto, by mutual
transfer OF render, within such periods of time as may
be authorized by law, and the Provisional Government of
agreement between the United States of America and the
Provisional Government of the French Republic.
The Provisional Government of the French Republic
the French Republic will accept, such articles and
services as shall not have been transforred or rendered
shall be released from its obligation to accept articles
to the Provisional Government of the French Republic prior
to said determination.
or services, under Article III and Article IV above, upon
payment to the Government of the United States of America
The Provisional Government of the French Republic
of any not losses to the Government of the United States
undertakes to pay the United States of America in dollars
of America including contract cancellation charges PO-
for the opticles and services spansforred or rendered wh-
suiting from the determination of the Provisional Govern-
der the Novisions of this Article in accordance with the
ment of the French Republic not 50 accept such articles
terms and conditions prescribed in Schedule 1 annexed
or services.
herete.
Delivery of any articles or services, under the
⑉
ARTICLE ST
The United Dates of America undertakes to spansfer
to the Provision Government of the French Republic,
vithia
provisions of Article III Article IV, may be withheld
by the Government of the States of America without
cost to the Provisional ENT ment of the French Republic
whenever the President that such action is in
the national interest.
ARTICLE VI
PRECISION
TRADE MARK
MICROSTAT
NO. U.S. PAT. OFF
MICROFILM
YCHEDULE I
ANRIOLA VI
Any amounts paid to the Government of the United
States of America pursuant to the term of this agreement
shall be deemed to be among the benefits or considerations provided by the Provisional Government of the
French Hapublic pursuant to Article VI of the preliminary
agreement of February 28, 1945.
The torna and conditions upon which the articles and
services Stated below are to be trensforred by the United
states of America to the Provisional Government of the
French Republic after the determinati n by the President
of the United States that such old is no longer necessary
in the prosecut! a of the WET, in accordance -1to Article
III hereof, are ES follows:
A. Unless therwise provided by mutual agreements,
transfers of articles shell take place, and title and risk
of loss shell pase to the Provisional Government of the
French Republic, Immediately upon loading of the orticles
on board ooean vencel in a United states port, provided,
that those articles which, prior to the end of the periods
authorized by law, shell have been contracted for by the
United States Government and sholl not have bren transferred
to the Provisional Government of the French Republic BO
above set forth, shall be deemed to be transferred, and
title and Pisk of loss shall peas to the Provisional
Government of the French Republic, upon the last day of
such periods.
B. The amount which the Provisional Government of
the French Republic shall pay to the United States of
America for articles transferred und r the provisions of
Aptiole III of this Agreement, shall be the total purchase
price, which shall be the sun of the following items, as
determined by the President of the United States, OF an
officer of the United States Government designated by hims
RECISION
TRADE MARK
MICROSTAT
MICROFILM
ROLL NO
(b) The determination of the said price
1. The Pice of the articles, which shall be
of supplies by the President, or An officer
determined as follows:
of the United States Government designated by
(a) In the GLUB of standard 11 lies
his, shall be unde in accordance with the
the price shall be the current sale price
following definitional
The term 'standard supplies' shall MAID
or the adjusted contract price, whichever
is lover; provided, that in the event the
those supplies which have been contracted for
current sale rice is at detegatines, the
price shall be the adjusted contract rice
by the United States Government in accordance
with standard United states specifications
less five per cent of such adjuste contrict
The term "non-standard supplies* shall mean
price.
those supplies which have been contructed for
In the case of non-standing sup lies
by the United States Government in Lecordance
which shall have been delly red to the United
with non-standard United States specifications
tates by the contrictor Flor to shirt, days
It 1e understood that those supplier which are
following the date of E determination by the
standard except for minor non-standard features,
President that such articles re no longer
necessary in the prosecuti n of the war, the
price shell be the current sale rice or the
attachments or adjustments shall be deened to
be standard supplier.
The ters "adjusted contract price* shall
adjusted contract price, whichever is lovers
provided, that in the event the current sale
sean the contract purchase price f.o.b. point of
origin paid by the United States Government to
rice 10 not determined, the rice be
the contractor. less five per cent of sugh con-
the adjusted contract rice less five per cent
of such adjusted contract rice. In the GLEB
of non-stendard supplies which shall have
been delivered to the United States by the
contrictor subsequent to shirt days following
the foresaid date of the determination by the
President, the price she11 be the adjusted
control price.
truet purchase price or, If such contract pupabose price cannot be determined for the partieO
ular supplies transferred, the estimated average
contract purchase price f.o.b. point of origin
paid by the United States Government for effiller
supplies during & period of three sonths preceding
the aforesaid date of the determination by the
TRADE
MICROSTAT
MG.U.S.PAL.OFF
MICROFILM
ROLL
NO
2"
President of the United States, less five per
cent of such Average contruct purchase price
he tera "current sale prion of particular
standard or non-standard supplier trunsferred to
the Provisional Government of the French Republic
ehall mean the price at which similar standard
supplier of comparable quality and in comparable
quantity have been sold by the United States
Government, at or about the time of transfer of
the particular supplies to the Provisional Government of the French Republic to any foreign
or domestic buyer. It is understood that 'foreign
or domestic buyer' shall be deemed to exclude
United States Government agencies, States and
of this Agreement, shall be made by the rovisional
Government of the French Republic within A period of thirty
years after the execution of this agreepent.
1. Payment of the total purchase price of any article
BO transferred shall be sade in equal annual installments
the first of which shall become due and payable on July 1.
1946, or on the first of July next following the day on
which such article shall have been transferred, whichever
is later.
2. Nothing herein shall be construed to prevent the
Provisional Government of the French Republic from antielpating the payment of any of such installments or any
part thereof.
3. If, by agreement of the United States of America
political sub-divisions thereof. United States
and the Provisional Government of the French Republic, 11
public. charitable, or educational institutions
is determined that, because of extraordinary and adverse
relief organizations, and any persons or organism-
economic conditions arising during the course of payment,
tions which say purchase supplies on special
the payment of a due installment would not be in the
Joint interest of the United States and the Provisional
financial toras provided by lav.
2. The sum of any costs for inland transportation
storage insurance and other charges ineidental to delivery
of the articles at shipside, incurred by the United States,
as determined by the President of the United States OF an
poned for an agreed upon period,
officer designated by him. The United States will inform
article so transferred, shall be paid by the Provisional
the Provisional Government of the French Republic from time
Government of the French Republic at the fixed rate of
to time of the amounts of such costs incurred and the bases
two and three-sights per sent per annua, scaruing from
on which they have been determined.
the first day of July, 1948 or from the firet day of July
next following the day on which such article shall have
been trensferred, whichever is later. Interest shall be
G. Payment of the total purchase price for all
articles transferred under the provisions of Article III
Government of the French Republic. payment may be post-
D. Interest on the unpaid balances of the total purchase price determined under paragraph B above for any
RECISION
O
TRADE
MICROFILM
MICROSTAT
transforred, Wildhever is later. Interest stall be payable
annually, the first payment to be made on the first day
of July next following the first day of July on which
such interest began to accrue.
B. The Provisional Government of the French epublic
(continued)
short Life Manufreturing Equipment
for WAT Production
250,000,000
Freight Charges (Rental and Charter
of Vessels)
220,000,000
shall pay to the United States the cost of the services
listed in this schedule to the extent that such services
shall be rendered to the Provisional Government of the
$1,676,000,000
SCHEDULE 2
The terms and conditions upon which the supplies
French Republic following the determination by the President
that such services are no longer necessary to the prosesu-
tion of the var. The cost of such services, so rendered,
shall be determined by the President of the United States
listed belov ATO to be transforred by the Government of
the United States of America to the Provisional Government of the French Republic under the provisions of
and shall be paid by the Provisional Government of the French
Apticle IV of this egreement are as follows:
1. frenefore of articles shall take place, and
Republic in accordance with the same terms as provided for
BEST and Misk of loss shall pass to the Provisional
the payment of the total purchase price of the articles provided hereunder, AS not forth in Section C above. Interest
shall be paid on the unpaid balances of the cost of such
Government of the Fyench Republic, upon the same terms
as APR set out in Schedule 1 annexed to this agreement.
2. The Provisional Government of the French Republic
services in accordance with the terms of section D hereof.
The total purchase price value of all the articles
shall poy to the United States of America, upon spinsfer,
an amount equivalent to Eventy (20) per cont of the total
and services in this schedule I shall not excoed
purchase price, as defined in Schedule 1 above, of the
apticles transforred to the Provisional Government of the
$1,675,000,000. Juch articles and services and their
estimated cost to the Government of the United States
are AS follows:
law Materials For Bar Use and Essential
Civilian Supply (Cotton Details, Steel
Chemicals, Synthetic Hubber, Drugs,
Medical Supplies, etc.)
Pyench Republic under the teyes of Article IV of this
agreement.
3. The Provisional Government of the Fyench Republic
shall pay the United States of America the balance of the
6 840,000,000
Food (Milk, Pulses, Edible oils, 011
185,000,000
Petroleum Supplies
132,000,000
Seed, seeds)
French Prisoner-of-yar Supplies
48,000,000
total purchise price of the articles transforred under
Apticle IV of this agreement on or before the last day
of the thirtist your following the day upon which this
agreement is expouted. Payment of the balance of the
total purchase price with regard to each article so trease
forred shall be meda is equal annual installments, the
PRECISION
TRADE MARK
MICROSTAT
REG.U.S.PAT.OFF
MICROFILM
First of which shall become dise and cychle an July 12 1946
on on the first - next following the any on stite!
such arttels shall but hero transferred whichever to
later.
/
4. Nothing Servin shall be exertion to revent the
rovisions? wernsent of the French heautile from cretcipating the payment or my of with Installments or of
any pert thereof.
later. Interest and be payable annually, the First
payment to be made on the First day of July next follow-
ing the first day of July on which such Interest began to
accrue.
8. The total purchase price Value of the articles
in this Schedule 2 shall not exceed A total of $900,000,000.
The articles in this Schedule 2 and their estimated cost
to the Government of the United States of America are
as follows:
5. If by agreement of both overnoint .. C ceternined that because of extreordinary coverer pennente enn.
Locomotives
citions brietne during the centre of payment the payment
Hailroad Cara
of A due installment sould not be in the Join interest of
the United States of meries and the Crevisional overnment of the Treach enublic payment may be staned for
Merchant Merines
an period.
5. "he gont or expenses for overnov. transportation
of any of the articles listed in thin "shedule n APO
included in the Item *Freight Charges' listed in Schedule 1
and shall be pain by the Provisional government of the
French Republic on the terms specified in that Schedule.
Such cost or expenses shall be limited to *yesight Charges
on United States vensels.
7. Interest on any ungio portion of the balance of
the total purchase price, above specified of any article
Marbor Watercraft
Fishing Feet
Inland intercraft (Barges)
Total working inchinery
Industrial Equipment
inchinery for Minos, Araenals, etc.
$200,000,000
120,000,000
140,000,000
32,000,000
8,000,000
50,000,000
100,000,000
150,000,000
100,000,000
$900,000,000
Signed at Fashington in duplicate this 28th day of
February, 1945.
For the Provisional Government of the French Republic
#O becauferred shall be paid by the Provisional Government
of the French Sepublic at A fixed rate of . 3/8 non sent
per annua scorning from the first day of July. 1948 or
from the first day of July next following the day on which
such article shall have been transferred whichever is
For the Government of the United States of American
RECISION
TRADE MARK
MICROSTAT
NO. U.S.PAL.OR
MICROFILM
BOLL NO
shall be disposed of and transferred, following a determination by the President that such aid is no longer
necessary to the prosecution of the in as orderly
Netween the INTERNATIONAL averagent of the
nanner which will best promote their nutual interests.
For the purpose of attaining the above-stated
As parties signatory to the United Nations Doolaration of January 1, 1942, the Provisional Government of
objectives, the Provisional Government of the French
the French Republic and the Government of the United
Republic and the Government of the United States of America
States of America have pledged themselves to employ
agree as follows:
ARTICLE
their full resources, military and economic, against
All aid undertaken to be provided by the United
those nations with which they are at var. In the pre-
States of America under this agreement shall be for
liminary agreement of February 23, 1945, between the
Provisional Government of the French Republic and the
1
Continental France and shall be nade Available under the
Government of the United States of America, on the
authority and subject to the terms and conditions of the
principles applying to mutual aid, each contracting
government undertakes to provide the other with such
Aot of Congress of March 11, 1941, as amended and any
articles, services, familities and information useful
in the prosecution of their gormon war undertaking as
each may be in A position to supply.
The Provisional Government of the French Republic
and the Government of the United States of America desire
to insure the continuing provision of such articles,
services, familities or information without interruption
oving to any uncortainty as to the date when the military
resistance of the common enery may coase and desire to
insure further that such articles, services, facilities
or information AS shall be agreed to be furnished by
the United States for the purpose of providing VIP aid
to the Provisional overament of the French Republic
shall
appropriation note thereunder.
ARTICLES
The United States of America will transfer or render
such of the articles and services set forth in Schedule I
annexed hereto, to the Provisional Government of the French
Republic, as the President of the United States of America
may authorize to be provided prior to a determination by
the President that such articles and services are no longer
necessary to the prosecution of the var. Any articles and
services set forth in Sahedule I transferred or rendered
to the Provisional Government of the French Republic prior
to such determination shall be provided upon terms the
final determination of which shall be deferred until the
extent
RECISION
TRADI MARK
MICROFILM
MICROSTAT
extent of lend-lease sid rovided by the United States
of America and or reciprocal aid provided by the
Provisional Government of the French Republic is known
and until the progress of events nakes clearer the
ROLL
NIRTHER TV
The United States of merica undertakes to trans-
for to the Provisional Government of the reset Republic,
within such periods of time as FAKE to authorized by law,
final terms, conditions and benefits-witch will be
in the nuturl interests of the United States of America
and the Provisional Government or the /rench Depublic
and France, in accordance with the torus of the preliminary agreement of February 20, 1945, and which will
Schedule 2, annoxed horeto. The Provisional overtuant
of the French Republic undertakes to pay the United
promote the establishment and emintenance of world pence.
States of America in dollars for the articles transferred
After a determination by the President of the
agrees to accept, the defense articles pet forth in
under the provisions of this Article in accordance with
the terms and conditions prescribed in said Schedule 2.
United States of America that any of the articles and
ARTICLE y
services set forth in Schedule I are no longer necessary
Changes may be nade from time to time in the items
to the prosecution of the var, the United States of
America will transfer or reader, within such periods of
set forth in Schedules 1 and 2 annexed hereto, by autual
agreement between the Provisional Government of the
time as may be authorized by law, and the Provisional
Government of the French Republic will accept, such
French Republic and the United States of America.
articles and services as shall not have been transferred
shall be released from its obligation to accept articles
or rendered to the Provisional Government of the French
or services, under Article III and Article IV above,
Republic prior to said determination.
The Provisional Government of the French Republic
upon payment to the Government of the United States of
undertakes to pay the United States of America in dollars
for the articlea and arrices transferred or rendered
States of America including contract cancellation charges
under the provisions of this Article in accordance with
the terms and conditions prescribed in schedule I
annexed hereto.
ARTICLES
The Provisional Government of the French republic
America of any net losses to the Government of the United
resulting from the determination of the Provisional
Government of the French Republic not to accept such
articles or services.
Delivery of any articles or services, under the provisions of Article III and Article IV, may be withheld
by the
PRECISION
TRACE MARK
MICROSTAT
REG.U.S.PAT.OFF MICROFILM
12"
1
-5by the Government of the United States of America
SCHEDULE I
without cost to the Provisional Government of the
French Republic whenever the President determines
that such action is in the national interest,
ARTICLE_VI
Any amounts paid to the Government of the United
States of America pursuant to the terms of this
Agreement shall be deemed to be among the benefits
or considerations provided by the Travisional Governnent of the French Republic parament to Article V1
or the preliminary Agreement of Februar, 20. 1945
The terms and conditions upon which the articles and
services listed below are to be transforred by the United
States of America to the Provisional Government of the
French Republic after the determination by the resident
of the United States that such aid 1s no longer necessary
in the prosecution of the VAP. in accordance with Article
111 hereof. are A.R follows:
A. Unless otherwise provided by nutual agreements.
transfers of articles shall take place. and title and stilk
of loss shall pass to the Provisional Government of the
French Pepublic. immediately upon loading of the articlea
on board oaean vanuel in A United States port, provided.
that those articles which, prior to the end of the periods
authorized by law shall have been contracted for by the
United States Government and shall not have been transferred
to the Provisional Government of the French Republic as
above set forth, shall'be deemed to be transferred and
title and Pick of loss shall pass to the Provisional
Government of the French Republic upon the last day of
such periods.
D. The amount which the Provisional Government of
the French Republic shall pay to the United States of
America for articles transferred under the provisions of
Apticle III of this greement shall be the total purchase
price which shall be the SUR of the following Items, as
determined by the President of the United States. or an
officer of the United States Government designated by him:
RECISION
TRADE MARK
MICROSTAT MICROFILM
ROLL NO
-J-
/
1 The price of the articles, which whill be
determined OF follows:
(a) In the BARG of standard supplies
the price shall be the current sale price
or the adjusted contract price. whichever
10 lower; provided that in the event the
surrent sale price in not determined the
price shall be the adjusted contract price
less five per cent of sugh adjusted contract
price.
(b) The determin tion of the said price
of supplies by the resident, or AA officer
of the United states Government designated by
him, shall be side in accordance with the
following definitions:
The torn *stanfard supplies* shall sean
these supplies which have been contracted for
by the United Government in accordance
with standard United States precification
In the case of non-standard supplies
which shall have been delivered to the United
The term "non-stenierd suppltes" shall sean
States by the contractor prior to shirty days
by the United States Government in accordance
following the date of S Determination by the
Freeident that such articles are no longer
with non-standard United States specifications.
necessary in the prosecution of the var. the
price shall be the current sale price or the
standard expert for minor non-standard features,
those BUY lies which have been 0 streated for
It is understood that those supplies which are
attachments or adjustments shall be deened to
adjusted contract price. whichever Le lower;
provided, that in the event the current sale
be standard supplies.
price 10 not determined the price shall be
the adjusted Mentract price lees five per cent
mean the contract purchase proo r.o.b. pint of
origin paid by the United States Government to
of such contract price. In the 0680
the contrictor, less five per cent of such GOR-
of non-stands plies which shall have
tract purchase prioe, OF, LT such controct par
chase price cannot be determined for the pertic-
been delivered the United States by the
it to shirty days following
contractor subs
r the determination by the
the aforesaid
shall be the adjusted
President, the
contract price
The tops "adjusted contract price* shall
uler supplies transferred, the estimated average
contract purehree price f.o.b. point of origin
peld by the United Government for similop
supplies during . seriod of three months proceding
the aforesaid date of the determination by the
PRECISION
TRADE MARK MICROSTAT
MICROFILM
ROLL
President of the United States, less five per
of this Agreement, shall be made by the Provisional
cent of such STITICE contract purchase price.
Government of the French Republic within a period of
standard OF non-standerd sup lies transferred to
thirty years after the execution of this agreement.
1. Payment of the total purchase price of any
the Provisional Government or the French hepublic
article so transferred shall be made in equal annual
shall sean the Price it which similer standard
installments the first of which shall become due and
supplies of converable quality and in compribable
Government, at or about the time of transfor of
the perticular supplies to the Provisional Goy-
payable on July 1, 1946, or on the first of July next
following the day on which such article shall have been
transferred, whichever is later.
2. Nothing hereIn shall be construed to prevent
ernment of the French Republic, to say foreign
the Provisional Government of the French Republic from
OF domestic buyer. It La understood that *foreign
OF domestic buyer* shall be deeked to excluse
anticipating the payment of any of such installments
The term 'current sale Piec* of articular
quantity have been sold by the United States
United States Government agencies, States and
or any part thereof.
3. If, by agreement of the Provisional Government
political sub-divisions thereof, United States
of the French Republic and of the United States of America,
public, cheritable, OF educational institutio na,
relief organizations, and any persons OF organisa-
it is determined that, because of extraordinary and
adverse economic conditions arising during the course of
Sions which may purchase supplies on special
financial terms provided by law.
2. The sun of any costs for inland transportation,
storigo, insurance and other charges incidental to delivery
of the apticles at shipside, incurred by the United states,
as determined by the President of the United States OF an
officer designated by his. The United States will laform
the Provisional Government of the French Republic from time
to time of the amounts of such costs incurred and the bises
on which they have been determined.
G. Payment of the total purchase price for all
articles transferred under the provisions of Apticle III
payment, the payment of a due installment would not be
in the joint interest of the Provisional Government of the
French Republic and the United States, payment may be
postponed for an agreed upon period.
D. Interest on the unaid balances of the total ourchase price determined under paragraph D above for any
article so transforred, shall be paid by the Provisional
Government of the French Republic at the fixed rate of two
and three-eights per cent per arean, accruing from the
first day of July, 1946 or from the first day of July next
following the day on which such article shall have been
transferred,
CISION
TRADE MARK
MICROFILM
MICROSTAT
payable annually. the first payment to be made on the
*CILL NO
(continued)
first day of July next following the first day of July
hart 1fo Manufacturing Squirment
on which such interest began to acorde.
E. The Provisional Government of the French Republic
Freight Centelian Tarior
for or Presetion
French Republic following the determination by the President
280.000.000
or Yeanels:
51 675,000,000
shall pay to the United States the aset of the services
listed in this schedule to the extent that each services
shall be rendered to the Provisional Government of the
$3,000.000
The LTD conditions U.O.D which the supplied
that such services are 02 Longer necessary to the proseau-
Timte Love are to be transferred by the Government of
the United tates or auricu to the Provisions! Govern-
tion of the VAP. The cost of which services, 80 rendered,
Cent of the French Republic under the Provisions of
shall be determined by the President of the United States
rticie TV of thin agreement LPC BE follows:
of articlea take date, and
and shall be paid by the Provisional Government of the
French Republic in accordance with the NAME terms as pro-
Vitis ent PO of Jone PARD to the povisional
vided for the payment of the total purchase price of the
Government of the Frenal republic upon the lose teras
as are Get out in chedule annexed to this agreement.
artieles provided hereunder at net forth in Section C
above. Interest shall be paid on the unpaid balance of
the cost of such services in accordance with the terms
2. The Provisional Government of the French Republic
$1,876,000,000. Such articles and services and their
shall toy to the United tates of America upon transfer.
AD amount equivalent to-twenty (20) per cent of the total
purchase pribe. US defined in Schedule I above of the
articles transforred to the Provisional Government of the
French Republic under the terms of Article IV of this
estimated east to the Government of the United States
agreement,
of section D hereof.
The total purchase price value of 11 the articles
and services in this schedule 1 shall not exceed
are as follove:
J. The Provisional Government of the French Republic
Sav Materials for Kar Use and Essential
shell DAY the United States of America the balance of the
civilian Supply. (Cotton, Metals Steel
Chemicale, Synthetic Rubber, Drage,
Medical Supplies, etc.
Food (KEIK, Pulses, Edible 0118, 011
Seed. Feeds)
Petroleun Supplies
French Prisoner-of-var Supplies
a 840,000,000
total purchase price of the articles transferred under
185,000,000
Article IV of this agreement on or before the last day
of the thirtieth year following the day upon which this
133,000,000
agreement In executed. Payment of the balance of the
48,000,000
total purchase price with regire to each article so transferred shall be made in equal annual installments, the
payable annually - first payment to be made on the
continued
first day of Jul. irt following the first day of July
hort 1fe ManufLeturing -guipment
for or Production
on which such interest began to acorue,
E. The Provisional Government of the French Republic
shall DAY to the United "tates the sort of the services
listed in this pohedule to the extent that ench services
154,000.000
>reight THE 4 color in marton
or Yensein
675,000,000
shall be rentered to the Provisional Government of the
French Republic following the determination by the President
that such services are no longer necessary to the prosegu-
D
The tyrus LTD conditions upon which the mupplies
listed below are to be transferred by the Government of
tion of the VAP. The cost of such services, 80 rendered,
the Entited tates of aerica to the Povisions! overn.
shall be determined by the President of the United States
mont of the reach Sepublic under the provisions of
rticle ty of thIn Agreement are of follows:
1. Transfers of articles 12.11 take lage, and
and shall be paid by the Provisional Government of the
French Republic In accordance with the NAME torms as pro-
vided for the payment of the total purchase price of the
sitle not PL of loss pass to the Porisional
articles provided hereunder. an set forth in Tention C
Government of the Frenal F ablic. upon the Me terms
above. Interest shall be paid on the unpaid balancer of
$1,075,000,000. Fueh articles and services and their
estimated cost to the Government of the United States
as are net out in chedule 3 annexed to this agressent
2. The Provisional Government of the rench Republic
shall 107 to the United take of America upon transfer.
an amount equivalent to twenty (20) per cent of the total
purchase price. US defined in shedule I above of the
articles transferred to the Provisional Government of the
French Republic under the torns of article IV of this
are as follows:
agreement.
the cost of such services in accordance with the terms
of section D hereof.
The total purchase price value of 11 the articles
and services in this schedule 1 shall not exceed
Rav Materials for Net Use and Tenential
J. The Provisional Governaent of the French Republic
civilian Supply Cotton, Retain Steel
Chemicals, Synthetic Rubber, Drags.
Medical Supplies etc.)
Food (Kilk, Fulser Edible OIL OIL
Seed. feeds)
Petroleum Supplies
French Prisoner-of-var Supplies
a 840,000,000
185,000,000
133,000,000
48,000,000
she11 DAY the United States of America the balance of the
total Parchase price of the articles transferred under
Article IV of this agreement on or before the last day
of the thirtieth year following the day upon which this
agreement 1. executed. Payment of the belone of the
total purchase price with regire to each article BO transferred shall be made in equal annual installments the
MICROSTAT
RECISION
MICROFILM
ROLL NO
--first of which shall bedone tue and payable on July 1, 1940,
OF on the first of July next following the day on >hich
such apticle shall have been transferred, whichever is
Inter.
later. Interest shall be payable annually, the first
payment to be made on the first day of July next follow-
ing the first day of July on which such interest began to
LEOPUE.
4. # thing herein shell be construed to prevent the
Provisional Government of the French Republic from nti-
cipeting the payment of any of such Instellments, P of
any part thereof.
5. If by agreement of both governments 10 10 deter
6. The total purchase price value of the articles
in this Schedule 2 shall not exceed a total of $900,000,000.
The articles in this Schedule e and their estimated cost to
the Government of the United States of America are as
follows:
mined that because of extraordinary adverse economic conLocomotivee
disions arising curing the einrie of payment, the payment
of A due instellment waya not br in the Joint interest of
Failroad Cars
180,000,000
the Provisional Represement of the French-Republic and the
Merchant Harines
140,000,000
United States of America, payment may be postponed for
Harbor Watercraft
32,000,000
on agreed-upon period.
Fishing Fleet
6. The cost or expenses for overeoas U.S.
Inland Matercraft (Bargoe)
$200,000,000
8,000,000
50,000,000
of any of the articles listed in this ochedule 2 are
Hetal Yorking Machinery
100,000,000
included in the item #Freight Charges' listed in chedule 1
and shall be paid by the Provisional Government of the
Industrial Equipment
150,000,000
Machinery for Nines, Areenale, etc.
100,000,000
French Republic on the terms specified in that schedule.
Such don't OF expenses shall be limited to *Freight Charges'
on United States vessels.
7. Interest on any unpaid portion of the balance of
the total purchase prior, above specified, of any article
1900,000,000
Signed at Washington in duplicate this 20th day of
February, 1945,
For the Government of the United States of America:
10 transferred shall be paid by the Provisional Government
of the French Republic at . fixed Pate of g 3/6 per cent
per annua searuing from the first day of July, 1946 OF
from the first day of July nest folloving the day on which
such article shall have been transferred, whichev.P Le
For the Provisional Government of the French Republic:
RECISION
TRADE MARK
MICROSTAT
MICROFILM
ROLL NO
1. THE OVISIONAL GOVERNMENT OF THANCH HITAINING RIGHT
18, 1945.
UP FINAL DECISION, IN THE LIGHT OF IT OWN vot NITALISTES AND RISCONSIBILITIES, IILL PROVIDE THE UNITED STATES RT IT ARVER FOROKA
WITH THE FOLLOWING TYPES GF AS HYCIPIOCAL AID, SEED AND
WIHA
IN THE UNITED NATIONAL DECLARATION OF JANUARY 1, 1942, THE
CONTRACTING GOVERNMENT PURDOK to EMPLOY THEIR FULL
ILITARY ON KOONOMIC, AGAINST THOUS NATION WITH WHICH
TRY ART AT MAN AND IS THE PRELIMINARY AGREEMENT OF PEBRUARY 18,
1948 BLEND A THE GOVERNMENT OF THE UNITED STATE AND THE PROVISIONAL
GOVERNMENT OF FRANCE DS THE PRINCIPLE APPLYING TO HUTUAL AID, EACH
CONTRACTING GOVERNMENT UNDERTAKES TO PROVIDE THE OTHER WITH SUCH
ARTICLES, BERVICES, PACILITING, OR INPORTATION USEFUL IN THE PROGKOUHOW OF THEIR COMPON VAN EFFORT All IT HIGHT BY IN A POSITION TO SUPPLY.
T 18 THE UNDERSTANDING OF THE PROVISIONAL GOVERNMENT OF FRANCE THAT
THE OTHERAL PRINCIPLE TO BY FOLLOWED IN PROVIDING MUTUAL AID AS SET
FORTH IN THE SAID AGREEMENT OF FEBRUARY 20, 1945 I THAT THE VAN PRODUCTION AND THE VAR RESOURCES OF BOTH NATION SHOULD BE USED BY EACH
IN WAYS WHICH MOBT EFFECTIVELY UTILIZE TH AVAILABLE MATERIALS, MANPOWER, PRODUCTION FACILITIES, SHIPPING SPACE, AND OTHER RESOURCED.
WITH A VIEW, THEREFORE, TO SUPPLEMENTING THE BAID AGREEMENT OF
FEBRUARY 28, 1948 AND THE HEMORANTION RYLATING TO LIND-LEASE AND
REGIPROCAL AID AND THE KENUTKI ATTACHED THERETO, AGREED AND EXCHANGED
BY THE UNITED STATEIN AND FRENCH REPRESENTATIVES ON AUGUST 25, 1944,
VE HAVE THE HOBOR TO BYT FORTH BELOY THE UNDERSTANDING OF THE PROVIIONAL GOVERNMENT OF FRANCE OF THE PRINCIPLES AND PROGEDURKS APPLICABLE
to THE PROVISION OF AID BY THE PROVISIONAL GOVERNMENT OF FRANCE TO THE
ARMED FORCES OP THE UNITED STATED AND THE KANKER IN WHICH SUCH AID WILL
NK CORRELATED WITH THE MAINTENANCE OF THOSE FORCES BY THE UNITED STATES
1. THE ...
LOTTING SECURITARY OF STATE.
DEPARTMENT OF STATE,
YASHINGTON, D.C.
PROCURED IN CONTININTAL FRANCE.
(A) MILITARY MUNITION AND ULTIARY AND
SAVAL STORES:
(B) OTHER HUPPLICE. MATERIALS FACILITIES, SERVICES,
OR INFORMATION FOR UNITED STATE PORCES VIGIT FOR
THE PAY, ALLOWANCES. AND OTHER EMOLOMENTS OF SUCK
FORCES AND TRE ADMINISTRATIVE EXPINESS OF AMERICAN
MISSIONS
(c) SUPPLIES, MATERIALS, FACILITIES, SERVICES, or INFORMATION EXGEPT FOH TEX YAGKS AND SALARIES OF
UNITED STATES CITIZENS, REIDED Is THE CONSTRUCTION OF
MILITARY PROJECT TASKS, AND BIHILAN CAPITAL YORK
REQUIRED IN THE COKYON VAN EPPORT:
(D) SEPTLINENT AND PAYMENT OF APPROPRIATE CIVIL GLAIMS
ARIDING IN FRENCH TERRITORY AGAINST THE UNITED
STATES AND ITS ARMED FORCKS, EXPLOYEES, AND OFFICERS:
(E) SHIP BALLAST, IS ORDER TO ASSIST IN OBTAINING MAXINUM
EFFICIENCY IN THY USE OF HIPPING: PROVIDED, HOVEYER,
THAT ANY NTT PROCEEDS RESULTING FROM TRK SALE OF SUCH
BALLACT GRALL BE PAID TO THE PROVISIONAL GOVERNKINT
OF FRANCE;
(F) SUCH OTHER SUPPLIES, MATERIALS, FACILITIES OR SERVICES
AB MAY BE AGREED UPCN AS NECKSBARY IS THE PROJECUTION
OF THE WAR, INCLUDING MATERIAL FOR VAR PRODUCTION,
GOVERNMENT.
THE REMORABLE JOBEPH C. GREY,
TO THE EXTENT THAT It IF FOUND THAT THEY CAN MOST EXPECTIVELY DK
REQUESTED BY THE UNITED STATES TO BE EXPORTED FROM
CONTINENTAL FRANCE TO THE UNITED STATED OF AMERICA.
PRECISION
TRADE MARK
ROST
NO. U.S.PAL.OR
MICROFILM
P. THE PRACTICAL APPLICATION OF THE PRINCIPLES FORMULATED TN
THIS NOTE, INCLUDING THE PROCEDURE BY WHICH RECURSTS FOR AID BY
EITHER GOVERNMENT ARE MADE AND ACTED UPON, SHALL 21 YORKED OUT All
IF THE GOVERAMENT OF THE UNITED STATES CONCURS IS THE FOREGOING,
OCCASION KAY REQUIRE BY AGREEMENT BETWEEN THE TWO GOVERNMENTS, ACTING
WHEN POSSIBLE THROUGH THEIR APPROPRIATE HILITANY ON CIVILIAN ADHINISTRA-
VE YOULD BUGGEST THAT THE PRESENT NOTE AND YOUR REPLY TO THAT EFFECT BE
TIVE AUTHORITIES REQUESTS BY THE UNITED STATES GOVERNMENT FOR SUCH
REGARDED All PLACING CN RECORD THE UNDERSTANDING OF OUM TWO GOVERNMENTS
AID WILL BE PRESENTED BY DULY AUTHORIZED AUTHORITIES OF THE UNITED
IN THIS KATTLA AND THAT FOR CLARITY AND CONVENIENCE OF ADMINISTRATION
STATES TO OFFICIAL AGENCIES OF THE PROVISIONAL GOVERNMENT or FRANCE
THIS UNDERSTANDING az CONSIDERED TO BE EFFECTIVE AS FROM JUNE 6, 1944.
ACCEPT, SIR, THE RESERVED ANSURANCES OF OUR HIGHEST CONSIDERATION.
WHICH WILL DX DESIGNATED OR ESTAPLISHED AT CONVENIENT LOCATION!! FOR
THE PURPOSE OF FACILITATING THE PROVISION OF RECIPIOCAL AID.
3. IT I' THE UNDERSTANDING OF THE PROVISIONAL GOVERNMENT OF
FRANCE THAT ALL SUCH AID AB WELL As OTHER AID, INCLUDING INFORMATION,
RECEIVED UNDEN ARTICLE VI OF THE PRELIMINARY AGREEMENT OF FEBRUARY EO,
945, ACCEPTED BY THX PRESIDENT OF THE UNITED STATES OR HI AUTHORIZED
REPRESENTATIVES FROM THE PROVISIONAL GOVERNMENT OF FRANCI WILL BE
RECEIVED AS A HENEFIT TO THE UNITED STATES UNDER THE ACT OF MARCH 11,
1941. INDOPAR All OIRCUMSTANCHS WILL PERMIT. APPROPRIATE RECORD OF
AID RECEIVED UNDER THIS ARRANGEMENT WILL or KEPT BY EACH GOVERNMENT.
IN ORDER TO FACILITATE THE PROCUMENEST OF THE SUPPLIES, MATERIALS,
FACILITIES, INFORMATION AND SERVICES DESCRIBED IN DECTION 1 HKREOF BY
PERMITTING THEIR DIRECT PURCHASE RATHER THAN THEIR PROCUREMENT BY THE
METHODS CONTEMPLATED IN DECTION 2 HEREOF DURING THX PERIOD OF MILITARY
OPERATION AND UNTIL SUCE TIME AS THE OFFICIAL AGENCIES OF THE PROVISIONAL
GOVERNMENT OF FRANCE AKX AHL TO PROVIDE SUCH RECIPROGAL AID IN TEE
MANNER CONTEMPLATED IN SECTION 2, THK PROVISIONAL GOVERNMENT OF FRANCK
REED TO MAKE AVAILABLE TO DESIGNATED OFFICERS OF THE UNITED STATES
GOVERNMENT SUCH FAENCE CURRENCY OH CREDITS AS MAY DK NEEDED FOR THE
PURPOOK. THE NEGESDARY ARRANGEHENTS WILL BE MADE BY THE APPROPRIATE
AUTHORITIES OF THE GOVERNMENT OF THE UNITED.STATES AND THE PROVISIONAL
GOVERNMENT OF FRANCE.
2
PRECISION
MICROSTAT
TROFILM
ROLL NO.
236
1945
Dear Mr. Brands
You inquired concerning our position on the release
to
the
of information
assetsFrench
in the United
States. concerning French private
This question MGB raised with our representatives in
Paris by M. Fleven. le have replied that we were not at
consider
such Information
available
and
we would
present of making
in position to
generally
thethat
question
object to any public statement at this time. However,
we advised the French that we are prepared to supply in
on
confidence
information
the French
the property
of specific
persons
requeated
by in cases
where
this would
appear
to further our ocesson objectives.
We will continue to consider the general problem.
It would be helpful 10 you could give ne a copy of the
agreement
H. Fleven. between the Chancellor of the Exchequer and
Sincerely yours,
(Signed H. Morgenthav, In
Mr. N. H. Brand,
United
Box 680,Kingdom Treasury Delegation,
Benjamin Franklin Station,
Washington, D. C.
:
Miller 3/13/45
PRECISION
MICROSTAT
TRADE MARK
MICROFILM
ROLL NO
237
238
March 13, 1945
I
-2-
lives night well be forestalled by the restrictions imposed upon
the remittance in question. He then argued that the requirement
in the license to refer back to Washington every request for the
use of the money in question would involverequested
delays andthatpossibly
with
operations.
MEKORANDUN FOR THE SECRETARY'S FILES:
The Secretary net with Rabbis Kalmanowitz Kotler and Korff
Mr. Bunin at 3:15 O.S., March 18, 1945. General O'Duyer and
Hiss Hodel of the War Refugee Board were also present.
endanger
and
Habbi Korff opened the presentation for the rabbinical
group stating that they had come to see the Secretary on three
matters: (1) the problems involved in the restrictions inoned on the resittance of the $937,000 to Image Stornbuch
(2) the obtaining of traneportation from Switzerland into Germany;
and (3) the evacuation of refugees from German to Switzerland by
means of transcortation facilities provided from Switzerland.
The Secretary prefaced his remarks by stating that he would
speak to the group very frankly as a government official and
with deep and mincere syspathy for their work. He then explained
that our Government's primary concern today is the winning of the
war and the protection of American risoners of war; that within
this franework the high officials of the Government res consible
for War Refugee Board activities have DEED unremitting in their
efforts to accomplish the that
purcones
for which the
WGEgiven
been
has
that Board
attention
the
exolained
created.
Ver Refugee Board matters during the waging of a wer has been
meazing and that the accomplishment to date have been remarkable.
The Secretary stated that, because of the rimary concern of our
Government to win the war. the only decision which could be reached
in the Musy gatter WAS the one ande unanimously by the Board sesto
Ke
bern at special meeting called for the sole purpose of discussing
that problem. This decision was that no payments for ransom to
the Germane 00 old be authorized by this Government. However,
because of the opssibility that the money in question might b
minorities
needed for legitimate excenditures
and because
of the Board's
persecuted
the
lives
further
rescue
He
respect to the million Swiss france already remitted under the
license permission DA granted to spend this amount for legitimate
expenditures upon the authorize tion of Mr. NoClelland the Board's
representative in Switzerland. The Secretary stated that the request to 00 modify the license WAS reasonable and General O'Dwyer
and Miss Hodel concurred. The Secretary then stated that an
appropriate cable would be drafted and cleared with Seoretary
Stimson and Secretary Stettinius.
With respect to the problem of transportation facilities
from Switzerland to Germany, the Secretary explained that the
Board was exolor every consibility of obtaining adequate trucking facilities for the delivery of relief through the International
Red Cross to civilian detainees. He explained that the War Departsent had agreed last week to recommend to General Eisenhower that
trucking facilities be sade available from United States aray
stocks for this ourpose and General Dwyer stated that at the
same time McClelland is making every effort to outsin transportstion equipment from private sources inside
SwitzerlandhisHe government
added
recommend
had
that
the
Swiss
Minister
agreed
to
to
that Swim: Government transportation equipment be made available
for this purpose. It was explained that transportation equipment
must be obtained if any relief is to reach these people and if
any of them are to be rescued to safety in Switzerland.
At to the third question, it VBS exclained that the plan
being developed by the War Refugee Board envirages the use of
tain safeguards.
relief delivery trucks for the evacuation of physically unfit
detainees from Germany to Switzerland. In addition, it was also
exolained that the president of the International Red Cross is
now in Geranny discussing with high German officials the possible
use for such vacuations of trucks being used for the delivery of
The Secretary then stated that the Jews in Averica could
great here to themselves and dangerous anti-Semitic publicbring
ity in it should ever be revealed that any American Jews were
dealing directly with Himmler for the resque of Jown from German-
At the conclusion of the meeting, the Rabbie presented to
the Secretary a written megorandum covering the points which
they had sade in their discussion.
over
concern
the
saving
the
of
of
inside Germany, the regittance in question was approved with cer-
controlled territory.
felt that
Mr. Bunim, speaking for thethe Secretary
rabbis, stated
that they
apprecithat
they
but
ated
the
views
expressed
by
the lives involved were so important that humanitarian considerstions should prevail in this case and that the saving of more
orisoner of war packages.
Forever Nodel
PRECISION
MICROSTAT
TRADE MARK
ROLL NO
REG
240
March 13, 1945
MEHOBANDON FOR THE REGISTARY'S FILES:
might well be forestalled by the restrictions imposed upon
license to refer bags to Washington every request for
The Secretary net with Habbia Kalmanowitz Kotler and Korff
and Mr. Bunis at 3:15 ... March 13, 1945. General D'Duyer and
lives the remittance in question. He then argued that the requirement the
Rabbi Korff opened the presentation for the rabbinical
group stating that they had BOSE to see the Secretary on three
satters: (1) the roblems involved in the restrictions 1aoned on the residence of the $937 000 to Isano Stormbuch
(2) the obtaining of transportation from Switzerland into Germany
and (3) the evacuation of refugees from Germany to Switzerland by
seans of transcortation facilities provided from Switzerland.
respect
to the
million Swiss tobe
spend
this amount
for Board's
legitimate
license
permission
granted
the
excenditures upon the authorizati of Mr. NoCielland, that the rerepresentative in Switzerland. The Secretary stated O'Dwyer
to so sodify the license was reasonable and General an
quest Model concurred. The Sear tary then stated that
in the the in question would involve delays and possibly
Miss Hodel of the War Refugee Board were also present.
The Secretary prefaced his remarks by stating that he would
speak to the group very frankly as a government official and
with
deep
and
sincere
sympathy
for
their
work.
He
that our Government's primary concern today is the winning of the
var and the protection of American orisoners of wari that within
this framework, the high officials of the Government FOR consible
for war Refugee Board activities has been unresitting in their
efforts to accomplish the oses for which the Board was
oreated. He exclaimed that the attention that has been given
to
War Refugee Board matters during the waging of a war has been
sansing and that the accomilishments to date have been reservable.
The
Secretary
stated
that,
because
of
the
concern
rimary
of
our
Government to win the war, the only decision which could be reached
in
the
Musy
matter
was
the
one
ands
unanimously
by
the
Board
sea-
bers at . special meeting called for the sole purpose of discussing
that problem. This decision was that no payments for PASSOR to
the Germans could be authorize by this Government. However,
because of the consibility that the money in question sight
needed for legitimate expenditures and because of the Board's
concern over the saving of the lives of the persecuted minorities
inside Germany, the remittance in question was approved with cartain safeguards.
The Secretary then stated that the Jews in America could
bring great hars to themselves and dangerous anti-Semitic publicity if it should ever be revealed that any American Jews were
dealing directly with Himmler for the resque of Jews from Gersen-
and appropriate Miss cable would be drafted and cleared with Secretary
Stimson and Secretary Stettinius.
with respect to the problem of transportation facilities
exolained
then
endanger use of further money resoue operations. franci
already No requested remitted that under with the
controlled territory.
Mr. Bunis, speaking for the rabbis, stated that they apprecia
ated the views expressed by the Secretary but that they felt that
the lives involved were so important that humanitarism considerstions should prevail in this once and that the saving of more
the Secretary exclained that the
from Switzerland to Germany,
adequate truck-
Board was exploring every hossibility of obtaining the International
ing facilities for the delivery of relief through the war DepartRed Cross to million detainees. He exclaimed that Eisenhower that
sent had agreed last week to reconsent to General aray
facilities be snde available from United states
trucking this purpose and General . Dwyer stated that at the
stocks for 10 saking every effort to obtain transporte-
sameequipment
time MeClelland
private sources inside Switzerland.hisHe government
added
from
tion
that the Swiss Minister had agreed to recommend be sade available
to
that Swiss Government transportation equipment transportation equipment
for this
purpose. It was explained that and if
be obtained if any relief is to reach these people
any must of them are to be recound to safety in Switzerland.
As to the third question, it was explained that the plan of
by the war Refugee Board enviraged the use
being developed trucks for the evacuation of physicall; unfit
relief delivery Germany to Switzerland. In addition, is was also
detainees from president of the International Red Gross is
exclained that the highwithGerman officials the possible
now use in for Germany such vacuations discussing of trucks being used for the delivery of
orisoner of war cackages.
AS the conclusion of the seeting, the Habbis presented which to
the Secretary . written aesorandum covering the points
they had sade in their discussion.
(Steped) Vioranna Hodel
FHIHD 3/16/45
PRECISION
TRADE MARK
MICROSTAT
MICROFILM
REG.U.S.PAT. OFF
ROLL NO
242
241
and apparent attractions offered to the hanchmen really cannot
matter or in any way affect the war effort or the postwar plan.
so much can be accomplished with so little.
MEMORANDUM
There are four positive steps that may be taken to help
materialize and bring to fruition the Muany plan.
March 13, 1945
1. The United States Enbassy in Switzerland and the
Swiss Government should be apprised that Washington is anxious
for the realization of this reacue work, by means of further
transports to Switzerland. They should be requested to take
all possible steps to help its realization.
We respectfully present these facts for your kind
consideration:
2. Financial means should be made available to Mussy
Our representative, Issac Sternbuch in Montreux,
Switzerland, has engaged the services of the Swiss Federal
Councilor Muasy in an attempt to reacue from the murderous
hands of the Nazia as many Jews 8.6 can be saved from the concentration camps and brought to places of safety with the help
and consent of the Swiss Government.
to defray transportation costs, gratuities to petty officers,
both in Switzerland and Germany and other incidental expenses.
No respectfully submit that license number 2426 be BC amended
58 to free this money to the discretion of Sternbuch. The time
lost between the inquiries that MaClelland may moke from
Washington and the receipt of an answer may cost thousands of
human lives. Exchange of messages require st least a week in
each specific instance, and each hour means so many more lives
The War Refugee Board, has at all times encouraged this
rescue work and has given our Committee aid and assistance,
consistent with our humanitarian endeavors.
lost.
3. Transportation from Germany is inadequete, and the
Jows cannot be transported into Switzerland. we respectfully
submit that the U. S. representative in Switzerland be instructed
the International Red Cross with a request that the
For years we here, Jews and non-Jows alike, cried.
pleaded and protested against German cruelties, but no arresting hand could be found to stop the ruthless hands that starved,
food andbring
medication
trucks to contact which
into Germany be made
asphyxiated, cromated or buried alive five to six million inno-
available when empty on their way back to Switzerland for this
purpose; to seek other possible means available or crested for
that purpose, even to the extent of hiring trucks or chartering
cent men, women and children of the Jewish faith.
Now the Muesy plan seens to meet with H measure of
7.
A transport of 1210 alroady arrived on February
1945. Our representative advised us that similar transports
would follow weekly. Newspaper reports emanating from Switzer
land substantiated his statements. The Federal President
Switzerland has issued similar reports to the Swiss press.
Since February 7. 1945 five weeks have passed and no new transports have arrived. Apparently some factors have presented
themselves to blook this rescue medium.
buses.
success.
4. Since the Swiss economy may not be able to absorb
more refugees, we respectfully submit that evacuation of some
of the previous arrivals be made without delay to comparative
places of safety and security DO make room for additional
arrivals.
of
It cannot be the Swian Government, for we have very
distinot reports that the Federal President Von Steiger and the
Swiss press received this transport cordially and extended their
hospitality to an unlimited number to follow.
It cannot be public opinion here, for any newspaper that
found this nows worthy of reporting gave it a glad hand.
If our Allies offer an attitude of reluctance. we believe that they can readily understand that minor, insignificant
The urgency of all the above is beyond description. The
Nazis have murdered ruthlessly innocent men and women and have
1
singled out for destruction those of the Jewish faith, in their
frantic moments of despair before any retreat was made. 30,000
Jews were killed in Lods, the lost day before the Russians took
over. Now that the position of the Mazis has become untenable,
the fate of the several thousand remaining Jews in Nazi occupied
countries is beyond sane contemplation
MPRECISION
TRADE MARK
MICROSTAT
REG.U.S.PAT. OFF MICROFILM
ROLL NO
2"
-3-
243
244
If, however, G small transport of 1200 is saved weekly,
the few so saved will be out of deathly danger, but moreover
the Hazi officials will treat the remaining internees with a
little human compassion, knowing that the world at large will
receive eye-witness reports.
March 13, 1945.
to anneal to the conscience of the United States of
America, the land that was founded as & model of democracy,
human conscience and the araenal of morality for the democracies
of the world. Help the remnant of a decimated people in Europe,
in these last moments before the curtain drops on the most tragic
and most unperdonable fato that was noted out to a people that
brought the word of and to humanity.
It appears that the potentialities for the realization
of these transports lie entirely in the hands of Washington.
In a report submitted to us dated March 7. 1945 from
our representative Jacob Griffol in Palestine, we learn that
the Swediah Government promised to admit all the inmates of
Delsen-Bergen and part from Theresienstact, concentration camps.
No respectfully request that the American Embassy in
Sweden be apprised of our anxioty for the realization of this
promise and be recueated to spare no efforts in this additional
avenue of reacue.
and note the attention given to the Bretton
foods agreements. I as also -lad to know that
the Independent Bankers Association report on
Bretton Woods will be given attention in the
next issue.
The business men who are your readers will
find their future operations affected, di-
rectly or
economic
after the war, as sure
you the importance
Woods agreements may hold in shaping those conditions.
Passi
Bamer
Koff
In the thought that you might be interested,
AT enclosing the text of an address which I
delivered at Minneapolis this week.
I
to
hotter
I appreciate your courtesy In sending no
March
issue of
the First
Executives'
Bar Digest
all recognize conditions indirectly, by the nature that the and of Bretton world I
VAAD HA'HATZALA
Rabbi
Dear Mr. Delas:
Sincerely,
(Signed) H Morgenthale in
Mr. Jay Deiss
Managing Editor, Executives' War Digest
420 Madison Avenue
New York 17, New York
EBF/mah
*
Executives
WAR
DIGEST
March 12, 1945
The Honorable
Secretary of the Treasury,
Heary F. Morganthau
Washington 25, D. O.
Dear Mr. Secretary:
You will be interested, I believe, in the reference
to Bretton Woods in the attached copy of
BAR
DIGEST.
I am sending It to you at the suggestion
of Randolph
Feltus,
The MAR DIGEST has been requested by about twenty-five
thousand key business executives throughout the country.
We have included an item on the report of the Independent
Bankeral Association on Bretton Woods in the next issue
of the WAR DIGEST currently on the press.
Cordially,
Day Deiss
02 Delia, Managing Mitor
EXEOUTIVES WAR DIGEST
JD:1g
WAR DIGEST is published for Edison by Green-Brodin, Inc. 400 Madison Avenue, How York 17, Plans 3-VEES
TRADE MARK
c
R
*
o
MICROFILM
S
RECISION
ROLL
*
A
In one/portivalar the wraise of lecisio-
*
tion ankes the May-Mailey Look like work The DUE proposals
Executives
Individual is obligated to serve She Notice in that capacity for
which is best qualified. May-Malley bill 10 limited to NEU.
A handy summary of timely information for business - send to
WAR
*
*
*
you wice month with the compliments of Thomas A Edison Inc.
DIGEST
West Orange New Jersey The Edisse Voicewriter increases
*
the accomplishment of the business executive by 10% to 50%
*
18-40. bill Includes men 0.04 all ages.
Another stenificent difference plages WM under the working direction of
Tyrnes Office or Bar Mobilization and Recouversion. and cuts away the
role of Selective Service as a controller of labor (a most point since the
May-Balley bill was First under discussion)
Meanzhile. the Army---inpotient
at Leginlative delays---has gone
FIRST MARCH EDETION
ahead with a "progrom" of mompower
D
Issue and
4
control over registrants under Sit.
Mea not physically qualified for
general military service. but who
Though Congressional attent ion sering sharely last COPSRIGHT From domestic proc-
Line conference. has realised Slie So, 1 bookfrout issue.
have left VOP Joba. are being Inducted
Into the Army They will be given 4
Aprfor the Talto declaration-colt releases eptimism very nearly unprecedented
wooko boate training special
in war-worn Washington, and sent stock markets sooning in New York and
London. Gint of Washington opinions *Now we're getting down to business!*
comp. and then be eiven *aboice*
the wages). or being assigned Arwy duty,
After the happy interlude the Response headache refused to respond to any
of the medicine than for concocted by Aruy-Savy-Selective Service. The
Senate continued stalling on the May-Mailey bill. and management k labor
at
returning to war industry (at prevail000-
tinued to PART disapproval. Secretary of War Stims.ou in appealing for the
bill, spoke tartly of the *confusion of voices . and exclaimed, *We dare not
delay longer." A little earlier, Under Secretary Robert Patterson ripped to
shreda WMC's print package of priority referrals and employment cellings
"No noticeable effect in releasing workers fop war plants has been felt."
Patterson also pooh-poohed the *Allentown plan. involving voluntary shift
of workers from less essential to more. essential plants.
More circumspect GD the BANDOWOR issue VOS WPH chief Kras. His appeal stressed
(Incidentally, very limited number of men" in the age group 18 to 30 can
be certified 00 essential, says Selective Service. Local boards should have
details of new ruling : IF not, write to Washington for latest changes.)
Herald of the tremendous importance henceforth to be placed on international
agreements, the Bretton Woods monetary DLAD was introduced into Congress last
fortnight. The bill itself was dream by Senators Wagner and Tobey, and
Representotives Spence and Wolcott-*** bi-partison group. Secretary of the
Treasury Morgentheu called 11. "The first step in meeting the greatest chal-
lenge of all history---th challenge of a lasting pence.
werely the need for *some kind* of annpower legislation. Prouptly he WBS
"The Bresson Woods Agreements Act" would establish on International Bank for
obliged by Senstors Kilgore, Wagner and Ferguson, who Introduced a DEY measure
Reconstruction and Development, to BOKE available ZONE tera credits to DEG-
designed, in their OWE words, "to promote the most effective utilization
of manpower.' rather than raise bogles of *compulsion versus non-compulsion.
Both Inber and business rallied immediately to the new bill Said the CIO:
"This bill is & Long step in the right direction." The APL agreed. Said
U.S.
offered.
Chamber of Commerce agreed. The Senate Military Affairs Committee Indicated,
NAM
President
Iro
Mesher:
...
The
most
constructive
yet
The
12-18. that they preferred it to the May-Bailey measure---nnd by A vote of 12-6,
pigeon-holed the Latter.
Provisions of the ex-
ber nations. Equally important, 00 International Monetary Fund is proposed
to stabilize the value of all member currencies relative to each other The
bosic purpose of the Fund. says Morgenthau, is to prevent the type of prewar *competitive currency depreciation* which led to such explosive results.
Though the American Bankers Association has questioned the need for the Fund
(WAR DIGEST #82). of some 250 nationally preminent economists polled. 224
gave It whole-hearted approval.
The Administration has deferred to the authority of Congress on several straLegic points related to the Agreements. Without Congression approval. the
par (gold) value of the dollar BY not be changed. DE
assentments to the Fund my be accepted DOT my the Bank's
capital stock be increased. Noted the 224 economists
plain its exceptional ability to win friends and influence people. In a mutshell. it (1) Controls el--
with deep solemnity: "If the present proposals are not
bloyment in both essential and non-essential industries.
(2) Makes mondatory labor utilisation surveys in pri-
vote plants and in Aray-Navy installations. (3) Provides paid transportation to essential joba. (4) Safeguards seniority and other rights of workers on their
previous jobs. (5) Utilines, nationally and loonlly
cooperative labor & management efforts, plus Government
retified by the leading countries of the world. the outLook for geouine international collaboration in the 0004
newie field and evin for world peace would be indeed gloony."
Contactive
WAR
DOGEST
If you should need copies of important international documents. write the State Department Currently available
free. in a nomphlat called *Bar Documents, complete
through June of 1944
2"
Aarter Governmental grack-Comm. agnor Stabilizer Vinson Forthign
FDR outlined the Amministration's international Legislative Congress. DESIGN 154 pretty colled
completely ust before of
Bretton
Woodsorganization.
WBR submitted to Brand+
(2)
a Food
wrote
a DET shapter in their history. With a stroke et the peo. the Wiped
all
unity the Healprocol Trade 4 Cortel control and orderly worket Lic
fort.(1) Establishment Agreement Act. 31 A new milli-not Lonal agree-
comply with a directive of the National Nut Laber Heard This 10 the First
went to reduce UNPLET borriers, 5 Revision or the export-Import Bank.
such case of its kind, avizure having been the Government person recourse.
The better method." said Vingen, "sould he A Congressional net which would
provide for penalties enforceable by the Judiciary
of
commodity
161certain
Repeal of the
Johna-mu Lot barring credito to certain (to be parHally accomplished by the Bretton Woods agreement
contracts
and
anterial
prioritic
or
A
ar
Brooklyn
fire
for
out
Colling
to
recently want to 5020 poins anko globe that PILO office had "not
go the Whilace nomination: The House passed. 399 to U. the George BELL
Date divorce the Federal Loon Agency free the Department or Commerce. Compil-
changed its policy on "fringe" wage increases. Such adjustments. said
to FOR and strencthening probobility of Vollace a confirmation. Items
goat studies. holds whip hand on wage increases ==lonving WLK impotent to
be,
can be ando only if they will not affect adversely our price stabiliantion
outing to were oll sidetracked.,Reaving the bill in n form polatable The
program." There bas been talk in Washington that OPA, through its industry
USA provides shot n11 Government corporations wist beneeforth be audited
by the General Accounting Office.
MOKE Final ange decisions. WLB and Vinson are officially *conferring."
The U.S Department of Labor has an
The new reconversion pinu
Appendix to its useful *Guide to Labor
is as hush-bush aa a military secret
Legislation. It 1s 62 pages, loose.
though accounts have appeared in print
It is said to have been undertaken by
HT'S on Byrnes order. and allegedly is
not nearly 50 sweeping as plans prepared
lear, and in especially designed for super-
Vibors Whop Stewards. orger Zahur
Dep't. Bulletin No. GO-A. froz Sup's. of
Documents, Washington 26. D. C. Price 25e.
last SUMMER by Donald Nelson.
The War Labor Board no for behind with BED gases that Chairman Kat. B. Davis
Key points or the plan-te-he center around III. inter-agency *Program Readjust- system
pent Committee which would sift all outbacks. The spot authorization seai-loon
has appealed a employers and unions to try to settle more disputes without
turning to the Board. He especially urged that both parties get full inform.
would be more OF less glorified, and reconversion would be ⑉
Lion on the national wage stabiliantica policy before acting. ALK 10 20 weeks
behind---with over 3.000 enses waiting settlement
basis with Free Production Urgency Committees in control. Though WTH would to
"review" minitions outbacks, Arwy-Novy would keep veto power over shifts
civilian production Above resume is subject to change without notice---
Have TRU mode use of the "brain bank at WPH'D Mar Production Drive Headquar-
since WPW officials are in one of those *neither confirm nor dany* moods.
ters? The Drive, currently going full bloot under direction or Rs. F. Todd,
is the fact that the Army has raised this year's output goal 18.99
Definite deliveries. Clear implication 15-m-01 APB has said---recoversion
Product: Drive, WPB. Washington 25. D. C.
has a 000) of nowe 10,000 production ideas (devices and methods )----planned
to old labor-annag committees. For details. write Awards Branch, War
at over best 1944 will be slow. New stress is being laid on Pacific requirements.
The WP Drive has a considerable list or
TIP: A new annual for contract settleneut training progroms is off the press.
literature which it distributes, Free, to
war Industry One of the most helpful is
Title 101 *Contract Settlement Training
a 27-page pomphlet *Product on Guide for
Gabor-Management Committees. It deals with
Guide. It covers procedures for national
and local training programs, and includes
information ⑉ Inventory and plant clearance,
way: of handling production problems. Write
to War Production Drive, WPB, Washington.
accounting. and similar subjects. Order
from office of Contract Settlement Federal
Metropolitan Life* Policyholders Service Bureau has published n detailed and
Reserve Building, Washington 25. D. c. Free.
The second annual report of the Director of Contract Settlement is biso Contents avoil-
able now. It's onlied, *Nor Contract Terminations and Settlements.
the Bureau, at One Modison Avenue, New York 10, N. Y.
V
*
HMC. apparently nettled by recent share critigian of LES
employers to bring the others into line.
execulives
.
ployment ceilings, and other regulations. Said MgNutt
soothingly, *No....com that we own the duty to complying
SAVE COAL
V
to date. You're likely to find It useful if you want
to got a comprehensive picture. Order as above. Free.
see if they are complying with priority referrels,
pocked rull of specific helps. Though primarily for Metropolitan Group policy.
holders, free copies are available, by special or Prangement with WAR DIGEST. from
include recent regulations, and summary of activities
amnoper control program. is now checking employers ⑉ to
careful study called *Re-employment of WOT Veterans." It 10 % companion piece
to "The Employment of the Handicapped Veteran' (DIGEST #80)---and 10 similarly
WAR
THOMAS A. EDISON INCORPORATED. WEST ORANGE. N. J.
244.3
-2Reading Copy
markly
0
I have come here to talk about an essential
These last few weeks have been filled with
segment of the peace program, prepared at another
tremendous events. Besides the stirring news from
conference of the United Nations held at Bretton Woods,
the fighting fronts, we are beginning to see the
New Hampshire, last summer. There, representatives
outlines of the postwar world. A program for peace
of 44 nations drew up agreements to establish an
is taking shape before our eyes.
International Monetary Fund and an International
Following the general acceptance of the
Bank for Reconstruction and Development.
Dumbarton Oaks proposals we have had the great news
of the Yalta meeting and the increased Western
I have been in close touch with every stage of the
0
progress of these agreements, through two years of
Hemisphere unity portrayed at Mexico City.
Now we look forward to the meeting which we hope
may prove most fruitful, the conference of the
United Nations in San Francisco next month.
preliminary work, through the conference itself and
through the discussions since then. I can assure you
\
that they are definitely good business for the
United States.
2787
2670
RECISION
TRADE MARK
MICROSTATA
MICROFILM
ROLL NO.
249-D
249-C
0
-3Early in our discussions, we considered joining the
$
functions of the Bank and the Fund in one establishment.
They are more than that.
No found good reasons for not doing that. I think you
Unless they are put into effect the strides toward
may want to know what these reasons were, now that
peace and security at Dumbarton Oaks, at Mexico City
the question has again been raised.
and at Yalta, as well as the further steps that will
/
The two deal with entirely different problems.
be taken at San Francisco, may end only in frustration.
They will need staffs with entirely different training.
Peace to be secure must rest on the firm foundation
of thriving industry within nations and profitable
and expanding commerce between them.
$
The Bretton Woods agreements deal with two great
problems. One 18 the problem of providing capital to
repair the devastation of war and for development
purposes. The other is the problem of establishing
a system of fair monetary practices that will promote
D
The Bank will be concerned exclusively with
long-term investments for productive purposes -
loans for twenty to thirty years, or even longer. Its
staff will have to study the long-term debt positions
of various countries, their places in world trade,
the worth of the project for which the loan is
intended. The Bank will have only investment problems.
trade instead of hindering it. The solution proposed
is the creation of two institutions, the Fund and the Bank.
2513
-6-
249-E
-5-
O
249-F
Long-term stabilization loans to a few countries would
The Fund is not an investment institution at all.
be a poor substitute for broad and constant cooperation
It will be concerned exclusively with fluctuations in
in meeting international currency problems. That can be
the exchange markets, with seasonal and other factors
secured only through B Fund which is concerned exclusively
affecting the exchanges.
with bringing all countries together to work for currency
Whether to join the Fund and the Bank in one
stability.
The fundamental reason for monetary disorder after
institution 18 not a question of form. It goes to
the last war was failure to understand the necessity for
the very heart of the stabilization problem. Those
who argue for one institution think of currency
stabilization as a matter of making loans. That 18
international cooperation in dealing with this problem.
Each country was left to its own devices. Before 1922,
only 8 countries were on the gold standard. By 1928,
not our conception of the problem at all. We think
through real sacrifices, about 45 had made a precarious
the issue goes much deeper. We believe the essential
return to gold - some with the help of stabilization
aspect of the Fund to be the setting of standards for
loans. But the first serious pressure was too much for
them.
fair dealing in our money rates. Giving help to some
countries to maintain the standards, once they are set,
$
is incidental to the attainment of this main objective.
PRECISION
TRADE
MARK
MICROSTATA
WW.U.S.PAT.OFF
MICROFILM
ROLL NO
-8-
249-G
-7-
249
This 18 how it worked. In 1932, when every one
0
found markets very scarce, Germany agreed for example
The wolf pack of exchange speculators was on the prowl,
with some Balkan countries to buy most of their wheat and
seeking out weak currencies to destroy, and adding
immeasurably to the difficulties of the countries
raw materials at good prices in marks. But the Balkan
which sought individually to maintain currency
merchant did not get marks. These were paid into the
stability. One by one countries were forced off the
Reichabank. The Balkan countries then had to buy
gold standard until by 1936 only 7 were left. The
goods in Germany to get the value of those marks.
world was back where it had started 14 years before.
The Balkan importer paid into his central bank the
But that doesn't tell the whole story. This was
price of the German goods, and only then could the
an era of economic warfare. The weapons were currency
seller of the wheat or other raw material get his money.
manipulation and other forms of discrimination. The
As a matter of policy, Germany bought much and
aim of each country was to save itself at the expense
of others. The bilateral clearing agreement was the
sold little. She was generally a year behind in
most destructive of these weapons, because it was in fact
meeting clearing obligations, and then frequently
part of Germany's preparation for war.
forced the Balkans to take articles they didn't need
or want simply so they could pay their own exporters.
0
Too often they got harmonicas and aspirin when they
needed locomotives and dynamos.
10 -
249-J
249.1
-9-
A country which runs into trouble will not have to act
alone. It will not need to use devices that spread
Through these agreements, Germany tied the
economy of neighboring countries to the German war machine
depression. It will be able to consult with others
so that when she began her war she would have access to
through the Fund and get help to maintain stability.
Pauce
raw materials. In self defense, other nations were
forced to adopt similar measures.
To sum up in simple terms: The Fund 18 a means of
getting countries to work with each other and not against
A tangle of discrimination and preference spread
each other on currency problems. The Fund sets standards
over Europe, and even to the Western Hemisphere, to
for foreign exchange practice and rules for fair dealing.
the great cost of American exporters and the peace
You can see that essentially this is not the business
of the world. By 1938 Germany alone had 36 bilateral
of a lending agency.
clearing agreements, Italy and Greece 28 each, Turkey
Pause
23 and so on. The only country in Europe that had
little
Now I would like to talk to you about the Bank.
There 18 the same contrast between foreign loan operations
none was Albania.
A
The Fund through international cooperation will
under the Bank and those under the system in use before
deal with the situation that led to this confusion.
the war. In the past when countries needed foreign capital
Each member country will define its currency in terms
they too often had to give away some of their independence
of gold and undertake to keep it stable.
0
to get it. And they usually paid high interest rates
in the bargain.
1927
1993
249-K
11 -
249-1
- 12 1
For instance, a great many of you will remember
Kreuger and Toll. Frequently when a European country
Many of them were squandered on projects which could
was seeking foreign loans, Kreuger would turn up in
never pay off. There was little or no supervision to
the Finance Minister's office. He was glad to oblige
make sure the money was spent for productive purposes.
with quite a large loan. All he asked was the country's
In too many cases there was little prospect that the
match monopoly, and of course profitable rates, too.
investor would get his money back.
That was the system under which Americans used to
Kreuger then sold not only the bonds he took for the
loan, but in some instances forged duplicate sets of
lend money abroad. By 1939, not counting the World War I
them as well. Some of you in this audience may still
loans, more than 40 cents of every dollar they had lent
hold Kreuger and Toll Securities. You know what they
to foreign countries since 1919 had gone into default.
are worth.
Kreuger was not the only operator in those days.
1/2
The International Bank will make it possible for
countries to obtain capital for worth while, productive
Undeveloped countries seeking foreign loans frequently
projects. The Bank will guarantee loans for such
secured from other sources loans that cost them too
purposes so that they will be attractive to the private
much and were often tainted with fraud.
investor on reasonable terms.
PPRECISION
TRADE
MICROSTATTOR M
ROLL NO.
249 N
249-M
13 - 14
And there will be no need for a country to give the
And you can see that the Bank's business is lending,
lender a match monopoly or a salt monopoly, or to pledge
not monetary stabilization.
its sovereignty in the form of an assignment of custom
The Bretton Woods program offers currency stability
revenues. There will be no need for these methods
to facilitate trade, and credit protection for sound
because the Bank will undertake loans only where the
international loans. Both will benefit the American
project is productive, only where the charges are fair,
people through an increased and more stable market
and only where the borrower can service the loan.
for their products.
There is urgent need for such productive investment.
The experience of our generation has proved to us
We cannot have a prompt restoration of the producing and
that a well balanced prosperity for our country depends
consuming power of the world while Europe lies in ruins
on a vigorous foreign trade. Ten per cent of our jobs
and great areas of the earth remain undeveloped.
Pause
in agriculture and industry depend directly upon
To sum up in simple terms: The Bank 1s a cooperative
international commerce. That was true in the high
method of providing capital for productive purposes to
employment years of 1929 and 1937, but the sharp decline
countries that need capital for reconstruction and
in foreign trade in 1932 had much to do with the severity
development. Its purpose 16 to safeguard the interests
of the borrower and the investor. That's what the Bank
is and what the Bank does.
of the depression.
PRECISION
MICROSTATIO
MICROFILM
ROLL NO.
249-P
249-0
15 -
16
0
C
Now let's see what discriminatory exchange
Power
The instability of foreign currencies was one of the
regulations and fluctuating currency meant to the Twin
chief reasons why No. 1 Dark Northern, which sold for
Cities and the Northwest. Countries abroad found it
$1.64 a bushel in Minneapolis in May, 1928, brought
impossible to buy your wheat and flour, and the same
49 cents in December, 1932. It helps explain why flour
sold here for $8.68 a barrel in May, 1928, and $4.02 in
was true of exports of hardware and of machinery.
November, 1932.
No major commodity lost so large a part of its
of course, the Bretton Woods agreements by themselves
foreign market as wheat. In the years 1925-1928 the
$
United States exported $239 million worth a year, which
was 21 per cent of production. In 1931-34, the era of
anything else. But they are a necessary first step toward
getting and keeping those markets for thousands of American
exchange discrimination, this had fallen to $38 million,
products. New exchange restrictions anywhere in the
which was only 8 per cent of our production.
world can close them.
As a result, wheat growers were forced to dump
their crops at any price. The farmer in the Red River
Valley was being squeezed, as truly as 11 he had caught
$
are not going to restore our foreign markets for wheat or
his hand in a threshing machine, by the exchange rates
of the rupee and the yuan and the peso.
PRECISION
TRADE MARK
MICROFILM
MICROSTAT
ROLL NO
249-R
249-Q
18
17 C
We have all seen it happen. Our exports of
The Bretton Woods agreements are the expression of a
commodities and of manufactured goods reached a high
unanimous will on the part of the 4h United Nations
point between the two wars, but in the 30's our
to work together to that end.
farmers and our manufacturers alike fought a losing and
I wish it were possible to describe the manner
hopeless battle to restore their export sales in the
-
in which that will was expressed at Bretton Woods by
face of depreciated currencies, quotas and other
representatives of 44 nations covering the whole range
barriers set up against us. The men thrown out of
01 the world in size, stage of industrialism, customs
jobs because of this lost trade became very poor customers
and economic conditions. They succeeded in shaping
for all the products of American industry and agriculture.
a thoroughly workmanlike program because they know
All these restrictions had much to do with intensifying
that we must either create an orderly system now or
and prolonging the great depression.
Pause
sink back later into the chaos of individual expedients
To prevent this chain of disasters being repeated
and devil-take-the-hindmost. They were animated by
-
after this war 18 it not perfectly plain that the first
the new international spirit.
thing we need is a sincere desire on the part of all
O
governments to work together to prevent them?
PRECISION
MICROFILM
ICROSTAT
ROLL NO
249-5
19
249. T
- 20 Let me give you perhaps the most dramatic example
that occurred. In the list of subscriptions to the
This is a symbol of her determination to cooperate
Bank, Russia had been put down for $900 millions.
wholeheartedly with us and the other United Nations
This is a tremendous sum for a country whose richest
in the task of reconstruction and development.
area - bigger than any other country in Europe - has been
The Bretton Woods agreements were conceived in
ravaged with the utmost brutality by the Nazis. on
C
the last day of the conference, after the subscriptions
the very practical spirit of cooperation. They
were closed and all countries had agreed on the allocation
represent the first such set of resolutions presented
of subscriptions, Russia announced that she would
to our people for achievement of the ideals for which
increase her subscription to twelve hundred million
we are fighting. They can be an inspiration to all
dollars. Russia assumed that additional $300 million
the other meetings of the United Nations and an example
obligation, not because there could be any direct advantage
of how the most difficult problems can be overcome
to the Soviet Union, but in order to create a stronger
through mutual good will.
Bank with a larger capital, able to contribute that much
The legislation to carry out the Brotton Woods
more to the rebuilding of the world.
program 18 now before Congress.
0
PPRECISION
TRADE MARK
-
MICROT
249- U
-22-
O
249 V
21 -
At Bretton Woods, we set our hands to a very real
Its approval will show that the United States is
expression of our faith in the capacity of men to work
thoroughly in earnest about joining with other nations
together as partners in peace.
,
I believe the American people are determined
to achieve international security.
for their part to do just that. Our generation has
At Bretton Woods we proved that delegates from
been given a new vision of the world. It is as though
the governments of most of the world could meet together
we were seeing the earth whole for the first time.
and consider ways of helping each other. This is the
0
international spirit of the United Nations, the ideal
\
for which Americans are dying today. It is our task at
Perhaps you remember how it was when you made your
first long airplane trip. Soaring over our country,
you got a new perspective of it, a new glimpse of its
,
home to live for that ideal.
It is because I feel deeply that the Bretton Woods
agreements are so much a part of this new spirit, -
magnificence and the interdependence of its people.
And it might have been that as the plane flew in from
the West, you were in darkness, but ahead you could
see the dawn.
se appentiel to its development, that I have been
urging their acceptance. We are called upon in
these times to express and to act upon our faith in mankind.
249 W
23
We of the United Nations know that although the
night is still all around us, we will come out into
the light of a new day with its new opportunities
for creating a better and safer world.
P
251
250
TREASURY DEPARTMENT
Washington
off the gold standard until by 1936 only seven were left. The
world WILD back where it had started 14 years before.
(The following address by Secretary Morgenthau
before the Foreign Policy Association and the
Minnespolin Civia and Commerce Association, at
But that doesn't tell the whole story. This WILD an era
of
nim
The
discrimination
of
forms
other
and
was to save itself at the expense of others. The bilateral
clearing agreement was the moat destructive of these weapons,
because it was in fact part of Germany's preparation for mar.
This is how it worked. In 1932. when every one found
Nicollet Hotel, Minneapolis is scheduled for
of economic warfare. The weapons were currency manipulation
country
each
delivery over Station WLOL of the Mutual Network at 1.45 P.M., EWT Monday, March 12, 1945
and in for release at that
These last few weeks have been filled with tremendous
events. Besider the stirring news from the fighting fronts,
wa are beginning to see the outlines of the boatwar world.
markets very source, Germany agreed for example, with some
Balim countries to buy most of their whent and FILL materials
at good prices in marks. But the Balkan merchant did not get
marks. These were paid into the Reichsbonk. The Eallon
countries then had to buy roads in Germany to get the value
those marks. The Enline importer paid into his central bank
the price of the German goods. and only then could the seller
of the whent or other raw material get his money.
A program for peace is taking shape before our eyes.
Following the general acceptance of the Dumbarton Onko
proposals ke have had the great nean of the Yolta meeting
and the increased Testern Hemisphere unity portrayed at
Moxico City. For the look forward to the mieting which we
hope may prove most fruitful, the conference of the United
Nations in Sen Francisco next month.
An a matter of policy, Germany bought much and sold
little. She won generally n year behind in meeting clearing
obligations, and then frequently forced the Balkana to take
articles they didn't need or nont simply 80 they could pay
their ovn exporters. Too often they not harmonions and
I have come here to talk about on essential of
(
the peace program. prepared at another conference of the
United Nations held at Bretton Woods New Hampshire, last
national Street
of
repesentutives
There,
surreer.
agreements to outsblish on International Monotary Fund and
an International Bank for Reconstruction and Development.
44
un
aspirin when they needed locomotives and dynamos.
Through these agreements, Germany tied the economy of
neighboring countries to the Germon FOR machine so that when
I have been in close touch with every store of the
progress of theme \greements, through two years of prelimimary work, through the cont orence itsolf and through the
discussions since them. I oon seaure you that they are
definitely good business for the United States.
she began her war she would have access to ran materials.
self defense. other nations here forced to adopt similar
A tangle of discrimination and preference spread over
Europe, and even to the Western Hemisphere, to the great cost
of American exporters and the peace of the world. By 1930
Germany alone had 36 bilaternl clearing agreements, Italy and
Greece 28 each. Turicer 23 and no on. The only country in
Europe that had none was Albonia.
The Fund through international cooperation will deal with
the situation that led to thin confusion Each member country
Unless they are put into effect the strider tonard peace
and security at Dumbarton Oaks, at Mexico City and st Yolto,
as well an the further steps that will be taken at San
Prenoisco, may and only in frustration Pesco to be secure
must rest on the fire foundation of thriving industry within
will define its currency in terms of cold and undertaka to
keep it stable. A country which runn into trouble will not
have DC not alone. It will not need to use devices that
strend depression. It will be able to consult with others
through the Fund and get help to maintain stability.
nationa and profitable and expanding commerce between them.
The Bretton Goods agreements deal with two great prob-
lemo. One in the problem of providing capital to repair
the devastation of war and for development purposes. The
C
45-44
In
measures.
They are more than that
other in the problem of establishing . nyster of fair
of
1
-2monetary practices that will promote trade instead of hindering it. The solution proposed is the creation of two institutions, the Fund and the Bank. Early in our discussions
we considered joining the functions of the Bank and the Fund
in one establ lishment. We found good reasons for not doing
that, I think you may want to know what these reasons were,
now that the question has again been raised.
The two denl with entirely different problems. They will
To sum up in simple terms: The Fund 10 0 means of getting
to work with each other and not against each other
on currency problems. The Fund sets standards for exchange
erection and rules for fair deeling. You can see that cesoncountries
tially this is not the business of a lending agency.
Now I mant to talk to you about the Bank.
need staffe with entirely different training.
There is the same contrast between foreign loan operationswor.
too
they the
under the Bank and
those under the system in use before
countries needed foreim capital
The Bank will be concerned exclusively with long-term
have
investments foror productive
purposes
loanswill
for twenty
to study
staff
Its
longer.
their places
thirty years, debtevenpositions
various countries,
of
long-term
the
in world trade, the worth of the project for which the loan is
intended. The Bank will have only investment problems.
In
to
The Fund is not an investment institution at all. It will
be concerned exclusively with fluctuations in the exchange
markets, with seasonal and other factors effecting the exchanges.
the
Whether to join the Fund and the Bank in one institution
not 8 question of form. It goes to the very heart of
stabilization problem. Those who argue for one institution
think of currency stabilization as matter of moking loans.
That in not our conception of the problem at all. ** think
the issue goes much deeper. We believe the essential aspect
of the Fund to be the setting of standards for fair dealing
in our money rates. Giving help to some countries to maintain
the standards once they are not is incidental to the attainment of this main objective. Long-term stabilization problems.
loans to
currency
a few countries would be
a poorinternational
substitute for broad
and conmeeting
is
stant
cooperation
in
That can be secured only through . Fund which is concerned
exclusively with bringing all countries together to work for
currency stability.
The fundsmental reason for monetary disorder after the
last war was failure to understand the necessity for international cooneration in dealing with this problem. Each
country WAS left to its own devices. Before 1922, only eight
countries were on the gold standard. By 1928, through real
secrifices, about 45 had made & precarious return to gold
some with the help of stabilization loans. But the first
serious pressure was too much for them. The wolf pack of
exchange speculato was on the prowl. seeking our week currencies to destroy, and adding immeasurably to the difficulties of the countries which sought individually to maintain currency stability. One by one countries were forced
0
the
past
when
often had to give away none of their independence to get it.
And they usually paid high interest rates in the bargain.
For instance, c great many of you will remember Krouger
and Toll. Frequently when a European country 205 seeking
foreign loans, Krouger would turn us in the Finance Minister's
office. He RDB gind to oblige with quite a large loan. All
he anked was the country's match monopoly, and of course profitable rates, too. Krouger then wold not only the bonds he
took for the loan. but in some instances forged duolicate sets
of them on well. Some of you in thin audience may still hold
Krouger and Toll securities. You know what they are north.
Krouger ma not the only operator in those days. Undeveloped countries seeking foreign loans frequently secured
from other sources loans that cost them too much and wore
often tainted with fraud. Many of then mere squandered on
projects which could never pay off. There was little or no
supervision to make sure the money WILD spent for productive
curposes. In too many cases there YOU little prospect that
the investor would get his money back.
That me the system under which Americans used to land
money abroad. By 1939, not counting the World Wor I loons,
more than 40 cents of every dollar they had lent to foreign
countries mince 1919 had gono into default,
the International Bonio will mike it possible for coun-
they
tricn to obtain capital for worth while, productive projects.
The Bank will guarantee loans for such purposes so that
will be attractive to the private investor on reasonable
terms. And there will be no need for a country to give the
lender match monopoly or a selt monopoly, or to pledge its
goversignty in the form of an assignment of custon revenues.
There will be no need for these methods because the Bank mill
undertaine loane only where the project in productive, only
where the charges are fair, and only where the borrower onn
service the loan.
,
253
252
O
-5.
Thin 10 a synbol of her determination to cooperate wholeheartedly with us and the other United Nations in the task
of reconstruction and development.
The Bretton Woods agreements were conceived
inthethefirst
very
represent
They
cooperation.
practical spirit
much set of resolutions which
presented
to fighting.
our people They
for achievecan
are
ideala for
of
the
ment
inspiration to all the other meetings of the United National
and an example of how the most difficult problems can be overcome through mutual good will.
The legislation to carry out the Bretton Woods program
is now before Congress. Its approval will show that the
United States is thoroughly in earnest about joining with
other nations to achieve international security.
There is urgent need for such productive investment. We
cannot have 5 prompt restoration of the producing and consuming power of the world while Europe lies in ruins and great
areas of the earth remoin undeveloped.
of
20 sum up in simple terms: The Bank is n cooperative
method of providing capital for productive purposes to countrico that need capital for reconstru ion
the
of
Its purpose in to safeguard end
theinterests
development.
borrower and
the investor. That's what the Bank is and what the Dank does.
And you can see that the Bank's business is lending. not
monetary stabilisation.
be
The Bretton Woods program offers currency stability to
facilitate trade, and credit protection for sound internotional loans. Both will bonefit the American people through
At Bretton Woods we proved that delegates from the
governments of most of the world could meet together and con-
an increased and more stable market for their products.
The experience of our generation has provod to un that a
well balanced prospority for our country depends on n vigoroun
nider ways of helping each other. This is the international
epirit of the United Nations, the ideal for which Americans
are dying today. It is our task at home to live for that
foreign trade. Ton percent of our jobs in sericulture and
industry depend directly upon internation connerco. That
C
an
no
true in the
high oftrade in with
in foreign
ideal.
It is because I feel deeply that the Bretton Woods agreementa are 00 much a part of this new spirit, are so essential
to its development. that I have been urgine their acceptance.
To are called upon in these times to express and to sat upon
our faith in mankind. At Bretton Woods, we net our hands to
a very ren) expression of our faith in the capacity of nen to
mork together as partners in peace.
I believe the American people are determined for their
part to do just that. Our generation has been given a new
vision of the world. It is an though no here seeing the
earth whole for the first time. Perhaps you remember how it
was when you made your first Long airplane trip. Scoring over
our country, you got athenew perspective of it. aitonew
glimpseAndof
people.
was the sharp decline employment years 1932 1929 had and much 1937. to do but
the severity of the depression Now let's soe nhat discriminatory exchange regulations and fluctuating currency mount to
the Twin Cition and the Northwest. Countries abroad found it
'impossible to buy your whent and flour, and the same THE true
of exports of hardwore and of machinery,
No major commodity lost so large a part of its foreign
market 0.0 what In the years 1925-1928 the United States
era of
production. exported $239, In 000.000 1931-34, worth the . year, which exchange mm 21 ecrimination percent of
this
had
fellen to 838,000,000, which only eight percent
of
our
production.
its
As a result, wheat growers were foreed to dump their
crops at any price. The farmer in the Red River Valley 100
being squeezed, as truly an if he had caught his hand in 11
thronhing techine, by the exchange rates of the rupee and
49 It
magnificence
and
interdependence
of
it might have been that as the plane flew in from the West,
you were in darkness, but ahend you could see the dawn.
We of the United Nations know that although the night is
the yuan and the peso. The instability of foreign currencies
still all around us, me will come out into the light of a new
day with its new opportunities for creating a better and safer
was one of the chief reasons why No. 1 Dark Northern, which
world.
nold cents for 01.64 in December, a buchel 1932. in Hinneapolis helps explain in thy, shy 1928, flour brought sold
here
for $8.66 6 barrel in May, 1926, and 84.02 in November,
1932.
O
.000.
of course, the Bretton Woods agreements by themselves
are not going to restore our foreign markets for wheat or anything elme. But they are a necessary first step toward getting
and keeping those markets for thousands of American products.
New exchange restrictions anywhere in the world can close
them.
We have all seen it happen. Our exports of commodities
and of manufactured goods reached a high point between the
two wars, but in the 30's our farners and our manufacturers
alike fought a losing and hopeless battle to reators their
export sales in the face of depreciated currencies, quotes and
other barriers set up against us. The men thrown out of jobs
because of this lost trade became very poor customers for all
the products of American industry and agriculture. All these
restrictions had mach to do with intensifying and prolonging
the grept depression.
To prevent this chain of disanters being repeated after
this war is it not perfectly plain that the first thing we
need in sincere desire on the part of all governments to
ther to prevent them? The Bretton foods agreements
are the expression of a unenimous will on the part of the 44
United Nations to work together to that end.
I wish it were possible to describe the manner in which
that will WBS expressed at Brotton Woods by representatives of
44 nations covering the whole range of the world in sice,
stage of industrialion, custome and economic conditions. They
work
succeeded in shaping a thoroughly workmanlike program because
they know that we must either create on orderly oystem now or
sink back Inter into the choos of individual expedients and
devil-take-the-hindmost. They were animated by the new international spirit,
Let ne give you perhaps the most dranatic example that
occurred. In the list of subscriptions to the Bank, Russia
had been put down for 8000,000,000. This in a tremendous sum
for a country whome richest area - bigger than any other
country in Europe - has been ravaged with the utmost brutality
by the Nazia. on the last day of the conference, after the
subscriptions were closed and all countries had agreed on the
allocation of subscriptions, Russia announced that she would
increase her subscription to $1,200,000,000. Russis assumed
that additional $300,000,000 obligation, not because there
could be any direct advantage to the Soviat Union, but in
order to create a stronger Bank with D larger capital, able
to contribute that much more to the rebuilding of the world.
TRADE
MARK MICROSTAT MICROFILM
ROLL NO
254
March 13, 1945
Dear Mr. Murray:
Let mg congratulate you upon the extremely helpful
statement In behalf of the Bretton woods plan, contained
in your letter to Chairman Spence of the house Banking
Committee.
I WAS especially impressed by your excellent summary
in the sentence reading:
"The opportunity is here to demonstrate to the world
that the United States is ready and willing to play its
full part in securing the world stability and prosperity
we must have to avert another crisis and a third world
war.
It seens to me that such simply stated facts, hammered
home again and again, must be our main reliance in winning
support for Bretton Woods and for all phases of the world
security program.
We In the Treasury feel the Bretton goods plan will
stand up under the most searching analysis. Of course the
average man and womsn lacks the time and facilities for
such analysis. The fundamental fact that everyone can
grasp is . simple one: The United Nations must be partners
In peace; the United States must be & full partner.
I feel sure your Bretton Goods letter will not be the
last blow you will strike for the cause. Let ne repeat
that I appreciate this timely help -- and would heartily
welcome any further assistance.
Sincerely,
Mr. Philip Murray
(Signed H. Morgenthau, Jr.
President
Congress of Industrial Organizations
:
718 Jackson Place, N.W.
Washington 6, D.C.
EBF/mah
RECISION
MICROFILM
TRADE WAR
KOLL NO
It tn our understanding that the Fretton foods agreement will put
an end to each practices. Tly the use of the International Monetary Pund
proposed in the arrespent. world currence on can be kent stable. No country
March 9. 1945
will be formed to drive lown the value of its own currency In order to give
Caloe atimulus to exports. Countries whose currency may be under pressure
can apply to the fund and seare support.
Monorable Brent Spence
In addition. the Bretton Mooda acrement provides & sound month or
Washington, D. C.
alding in the reponat.ruct and development of the war devastated and otherwise
industrially hardloussed nations. This 10 done to guaranteeing Joans made for
constructive purposes through the ank for Ibegonat.ructio and Development. The
Dear Congressman Spence:
loans rade efory It will extend its guarantee. Than, loans will not be made
House of Representatives
AT writing to you to express the views of the Concreas of
Industrial Organizations on the pending Instalation to ratify the Fretton
Boods monetary and financial agreement.
At your Committee's convenience NO would like to be able to
present our view on the MII (13) 2211) In greater detail.
The CIO, following the mandate of its maters excreased at the
1944 convention, in in support of the bill to ratify the Pretton Tooda
agreement as It is now before your Committee.
This support is given in the firm belief that the arreament of
family understand 10, will charged with the careful investigation of
AS in the past to 2000 an and unpopular nor for purely speculative
and Michly rialy nature which cannot Unitified by sours! financial practice.
do not in the CTD profess to be experte in the Artricanies of
International finance, That an Leave to the special students who labored
The members of the CIO, and the millions of their relatives and
relenda in the armed forces, believe firmly that TO must have a planned and
national accroach to world economic problems LC - are to have security from
MAI and accreasion after victory over the Axis in achieved.
the LL United National worked out at firetton Mooda last summer is the beat
guarantee of a greatly expanded and stabilized world trade that will afford
protection to Aperican businessmin, markets to American famora, and Joba
for American workers.
The arreement is also a concrete demonstration of the fact that
the
United Nations, even before final victory over the Axis, can work out
successful solutions to their mutual probleme in unity and accord. As such,
arreezent is a tribute to the leaders of this nation and of all the
United National It is long step in the direction of the collaboration of
the
The Bretton foods Agreement reprepents a major step toward world
ebunonio stability Ln the ays of our meters. They that NO muat export
N sigablo portion of our production 10 NO are to maintain rul production and
Joba for all after the MLP. The members of the CIO also understand that world
scade dinnet be a one way street; that in order to sell abroad WO must have
customers who and able to buy from us and sell to us and to each other,
Bretton foods is the first opportunity that TO in America have before
us to fill in the economic sections of be world security outline made at the
the free nations which is the keystone of world peace and security.
Crimea conference, at Dusbarton Oaks and other United National meetings and
conferences. The opportunity comeo at a time when we have concluded still
As presented to Overread in its present form, the bill to ratify
the Bretton Foods agreement to the first teat of our deaire and ability to
and ** care for the United Nations conference in San Francisco.
another mijor agreement in the meeting of the American nations at Mexico City
cooperate with other countries in the prevention of future aggression and the
maintenance of a stable peace.
The seeds of World Mar II were laid in the world economic crisis
the 20's and early 30th. The frantic race for an Illusory trade advantage
over other countries that expressed itself in deliberate currency manipulation,
on
the technical and of the agreement and Lo this SCOPES of estiment edonomists and
bankare who have endursed it.
The opportunity is here to demonstrate to the world that the United
States is ready and willing to play Its full part in security the world
stability and prosperity we must have to avert another crisis and & third World
BF.
of
in the various systema of *blocked accounts" and other economic weapona ro-
sulted in the collapee of world trade and consequent world depression.
1
larger
In addition, such methoda were used to impose economic domination
countries on smaller and weaker-ones. This YAS especially practised
for
by by Name Germany and Japan, and resulted in giving them an economic basia
aggression and mar that they otherwise would not have possessed.
At the same Line NO have 8 chance to contribute greatly to our own
prosperity, by helping our workers to Jote, our farmers to marketa, and our
businessment to quatomere.
The numbers of the CIO believe that the Congress will take this
opportunity to ratifying the Bretton Tooda agreement at an early date and
without changes or No document or agreement is perfect nor is
claimed to be. Bretton Noods, however, does represent the meeting of the
interests of 44 United Nations, including the United States and does protect
RECISION
MICROSTAT
MICROFILM
V
a
Congress of Industrial Organizations
and advance the interests and the welfare of us all.
CIO
To respectfully urgo that the Congress not quickly and wholeheartedly now
to ratify the Bretton Moods agreements as it has been presented in the hill
before your Committee on Banking and Currency.
Cordially yours,
718 Jackson Place, N.W. Washington 6.D.C.
PRESIDENT
March 9. 1945
Philip Murray
President
The Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. O.
Dear Secretary Norgenthau:
In accordance with your telephone request of
this morning I an enclosing A copy of the C.I.O. letter
on Bretton Woods.
yours,
Enclosure
PPRECISION
TRADE MARK
MICROSTAT
MM.U.S.PAT.ORK
MICROFILM
ROLL NO.
259
MAR 13 1945
Dear Dr. Kung:
I HRS sorry to learn from your letter of March 6
you have had to undergo another operation. I
wish you a speedy recovery and hope that I may soon
have the pleasure of seeing and talking with you.
that
Thank you for your kind nords about ay help to
China. I have enjoyed being . sociated it you
during these many years in maintaining the traditionally good relations between our countri . and
is helping to defeat our enemics.
There has never been any doubt in my mind--nor
in your I an sure--the t this cooperation is what
the peoples of both our two countries have santed, and
I an sure that after victory we will continue to work
together to keep the prace and achieve economic progress.
,
Eve though any important things onl1 for your
attention, I hope you will take the time to rest proporly and make a complete recovery. If there is anything I can do, please call upon 138.
with best wishes for your speedy recovery.
Sincerely yours,
(Signed) H Murgenthau, Jr.
Honorable H. H. Kunk,
aldorf-Astorie Hotel,
50 and Park Avenue,
New York, New York.
,
FC:ISFirl 3/13/45
RECUTIVE YUAN
GOVERNMENT OF CHINA
March 6,1948.
Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. 0.
Dear Secretary Morgenthau:
I such appreciate your letter of March 3 informing
no that you have instructed your men to take up with the
military authorities again the matter of shipping gold to
China during the next few months.
I an BO glad that you have agreed with to on the
seriousness of the situation in Ohina and the urgency of
shipping gold there to oombat inflation and that you pronice to do your utmost to assist us.
After BY operation tommorrow it will be necessary
for no to have a long convalescence before I have the
pleasure of seeing you again. I wish to take this opportunity to thank you for your good wishes and what you have
done for China and your friendship for me.
with kindest regards,
Yours sincerely
AS
H..H. Kung
PRECISION
TRADE MARK
MICROSTATA
MICROFILM
ROLL NO.
261
March 13, 1945
Dear Mr. Keller:
I have your letter of March 8. 1945.
requesting that the Kunning operation contract
be expedited.
Information was not received as to The
estimated cost of the work to be performed by
Chrysler Export Corporation until March 10.
The formal requisition from the Chinese Governsent has not as yet been received.
In the meantime the contract is being put
in final form. I can assure you that everything
possible 10 being done to expedite its execution.
Sincerely,
(Signed H. Morgentnau, Jr.
Mr. K. T. Keller
President, Chrysler Corporation
Detroit 31, Michigan
WGHelfrich:JWPehle:1hh 3-13-45
MICROFILM
MICROSTAT
CHRYSLER CORPORATION
Detroit 31 Kinkigan
March 8, 1945
K-T KELLER
PRESIDENT
Non. Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. C.
Dear Secretary Morgenthaus
I understand the Kunning operation
contract is all in agreement awaiting necessary
approvals, including your ONT. Am informed it
takes ten days to accomplish this. We have n
lot of things to do before TO can start anybody
on their way to China, most important of which
is contracting the personnel. No are very
anxious to get along on this job, and anything
you can do to expedite it will be greetly sppreciated.
Very truly yours,
KTK-CW
TRADE MARK
MICROSTAT
REG. U.S. PAI. OFF.
MICROFILM
ROLL NO
253 25
1945
Dear Mr. Brand:
This will acknowledge your letter of
March
in Italy,5, 1965 relating to financial problems
I
PRECISION
1 would appreciate hearing further from
Sir John Anderson with reference to the ad.
ministration of financial matters by the -
bined allied authorities, It has been rese that you
to recessile
problems and I that
close Italian assuring this cooperation financial to stress our the as need views sure for on
close cooperation is being achieved.
Sincerely,
Signed H Jr.
#.44 irand,
United treasury Delegation,
Benjamin Franklin Station,
Washington, D.C.
Gier 3/10/45
.MPRECISION TRADE MARK MICROSTATA MICROFILM
I
Straught in by Visa Characay 3/7
264
PRECISION
TRADE MARE
MICROSTAT
NG.U.S.PAT.OR
MICROFILM
in
UNITED KINGDOM TREASURY DELEGATION
BOXBAD
BENJAMIN FRANKLIN STATION
WASHINGTON
March 5, 1945.
REFERENCE
TELEPHONE EXECUTIVE BOOD
PERSONAL
Dear KT. Secretary:
In accordance with your request I communicated to the
Chancellor of the Exchequer your views on the Atalian situation.
and particularly your anxiety AS to certain comments which had
been made to you on the policy of #purging' being pursued by
the Combined Allied authorities in Italy.
I have had a reply from Sir John Anderson saying that
be 1s looking into the Batter and hopes to communicate his views
to to soon.
I AR very sorry Mr. Glasser could not be spared to go
to
Italy, officials.
though 1 fully
understand
the present
strainaonsimilar
your
Treasury
thought
hisI visit,
together
with
visit of U.K. Treasury official, night help both Treasuries
to see eye to eye on Italian financial problems. I know the
n.K. Treasury are most anxious that this result should somebow
be achieved by AB close co-operation as is possible.
Youre sincerely,
M.I man
The Honourable Henry Margenthau, Jr.,
Secretary of the Treasury
Washington D.C.
CERTIFICATE OF AUTHENTICITY
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1945
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Pgo'ts to p 265
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