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CISION

TRADE MARK

MICROSTAT

MICROFILM

BOLL NO

April 6, 1945

10:43 A. M. A

Mr. Dan

Bell:

Hello.

HMJr:

Hello, Dan?

B:

Good morning.

HMJr:

How are you?

B:

Pretty good. I'm very sorry to hear about
Mrs. Morgenthau. How is she?

HMJr:

Fine.

B:

DIARY

Book 835

Well, she had a good night.

HMJr:

And she's improving.

B:

Well, that's good news.

HMJr:

Yeah. It looks now as though I might be able to
get away Sunday.

April 6-10, 1945
B:

Get away Sunday night?

HMJr:

Yesh.

B:

HMJr:
B:

HMJr:

I see. Well, that will be fine. Will she be able
to travel tool

Oh, she won't be able to travel.
She won't be able to travel.
Well, I'll come up to that engagement on Tuesday
in New York.

B:

I see.

HMJr:

I can hardly hear you.

B:

I say, you'll be up here to keep the engagement on
Tuesday?

HMJr:

o

Yeah.

B:

All right. Now there's quite a group here.

HMJr:

Well, just if there is anything important. I didn't
want to call one after the other.

B:

I want to tell you that I saw Fred Geble in New
out for your engagement at the Astor.

York and he said that it was practically a sellHMJr:

C

B

Well, I think so, too.

B:

HMJr:

Talk a little louder, Dan.

B:

Iout.say he said that there was practically a sell-

HMJr:

Good.

before

we've got to do any horse-trading, let's do it in
the Senate.

Well, that might be. One thing I'm worried about
this whole picture is that it will be termed horseof the Treasury position because

At the Astor. I don't know whether that is dinner

made my

or luncheon.

HMJr:

Dinner.

B:

Dinner, hub?

HMJr:

At the Waldorf.

B:

Luncheon at the Waldorf?

HMJr

No. I thought the Gehle thing was at the Waldorf.

B:

Oh, well, anyhow, he said that there was practically
a sell-out. There's over 1900 tickets.

HMJr:

Good heavens!

B:

HMJr

Yeah. I haven't anything. I could report on the
New York
about
it. trip. I don't know whether you want to hear

I'd like --- I told Luxford to write the the part

he took part in, see?
B:

there trading
was that
or one-weakening
remark yesterday
in conference
with
Aldrich
oh, something
about
going along
with the Treasury and permitting then to save their

face. I said, *Well, Just wait a minute. I said,

words.

HMJr:

B:

HMJr:

had and send it down to me today.
B:

HMJr:
B:

HMJr:

All right. They'11 come down together.
But ay own feeling is this - I think we should move
very slowly on what we agreed to.

All right.
If White has anything he wante to write on it, but

my own feeling as much as I've done now that we know
...
we've got the votes in the Banking and Currency
Do we know that?

HMJr:

Yeah.

HMJr:

I'll do that.
Then I'll have the whole picture.

Well, I'll read Luxford's letter, and I'll read your

letter and if anyone else wants to write any comments
they can write me today.

B:

Yes.

And then if you would write the the part that you

is

"The Treasury doesn't have to save its face, this
a satter of cooperating with everybody concerned,
and certainly we are not up here to save the Treasury's
face. And he said, Well, maybe I used the wrong

B:

HMJr:

should talk about. I think that it would strengthen

House
without
any
our through hand the
enormously
the amendment.
Senate if we got it Than if

B:
B:

And this 1a my horse-back opinion that you people

The papers all differed.
No. Joe O'Connell tells me we definitely have the
votes. Baldwin of Baltimore is going to vote.
told that to the chairman.

He

B:

I see.

HMJr:

We've got the votes.

B:

Well, I'd move slowly. Burgess is going to see some
of
his people
today,mean
1 think
Charlie
Spencer,
I don't
sean Aldrich,
Len
Hemingway
andAldrich
two or
three others.

-

-2-

-5D

If my plans go through, I'll be in Washington on

HMJr:

Monday.

You see, Burgess made me a promise once that he didn't

HMJr:

keep.

Well, Burgess 18 all right on this when he talks
to us alone, but it seems to me that he softpedals it when he talks to somebody that 18 strongly
opposed to it.
Well, suppose you write me in great detail what

B:

HMJr:

Monday, yeah. Harry, Harry,

B:

Mr. Harry
White:

Hello.

HMJr:

Hello, Harry.

Hello. We are all glad to hear that Mrs. Morgenthau
is better this morning.

W:

happened.

All right, we'll do that.

B:

HMJr:

B:

But it's understood up there, 18 it, that nobody
is to agree to anything until the bose puts his

She's better.

HMJr:

It was in the paper that she was taken sick.

W:

O.K. on 117

HMJr:

Oh, that's right. We told them that we had to

V:

Other than in Leonard Lyonat
Yeah.

bring back to you any recommendations that we

might want to make, and that these were nerely
informal and off-the-record disquasions. Everybody understands that.

HMJr:

Well

As a matter of fact, Burgess is in the same position
because he's talking for a group too.

B:

HMJr:

B:

HMJr:

Well my own inclination is to get it through the
House w1 thout any amendment.

It was?

HMJr:

Yes.

V:

HMJr:

No, no others as far as I know.

W:

HMJr:

HMJr:

But I'11 talk to you about it when I gey back. I'll

W:

B:

Yes, plenty. Do you want to talk to anybody here?

HMJr:

Only if they've got something important to talk to
No one has a thing.

B:

HMJr:

HMJr:

HMJr:

HMJr:

meetings on Germany are going forward and they'v are

B:

agrees with us a 100%

(Talks aside) Harry and Coe both are here and they
Put Harry on.

All right. Harry wants to know if you are going to

be here Monday tool

Talk up, Harry.

The long meetings lot of opposition, but they some
had getting
little particularly
closer together.
spoke
to
FEAaboys
wereIvery
difficult,
of the the Henderson line completely. One of He them
following
there. I spoke to Cox at some length.
over
was

W:

Who knows what is going on on this question of
reparations and then this revised 10671 Who'

both are familiar. Do you want to talk to thea?

Well, do.
The meetings on the.

familiar with that?

B:

I know where they got that too.

You dot I don't.

W:

me about.

Just Leonard Lyone.

Yeah. of course, somebody picked it up today.

W:

Ahuh.

have plenty of time when I get back.

What did the other papers say?

HMJr:

Humph.

E

-7-6HMJr:

And he said that he would see that his boys get
in line.

W:

In there anything else that you want?

W:

HMJr:

Yeah.
HMJr:

But his boys haven't gotten in line. I spoke to his
again about it, and he said he would see them again,
but I gather maybe the one that we have to talk to 1
Crowley. I'm seeing Cox again this morning and I'll

W

W:

HMJr:

see, but in the meantime they are continuing to work..

Yes.
HMJr:

and we are beginning tomorrow on the reparations.

W:

HMJr:

Is that the first time they are going to meet

,

On reparations, yes.

W:

HMJr:

with Hilldring?

Yes, Clayton couldn't have any time before that he
had to go to Chicago and so on. That was the first

W:

moment he had.

HMJr:

Yeah.

And two other things - Mrs. Klots just mentioned that she

W:

spoke to you about Judge Rosenman's request and about

the possibility of getting Treasury people over ther
to make an investigation.

HMJr:

Yeah.

Well, we are drafting a proposal up here for your

W:

consideration whenever you come, Monday or Tuesday,

we aren't taking any other action.

HMJr:

That'11 all come under General Clay now.

I see but it is a separate matter than what General
Clay raised with you which -- it's a separate matter
and you'll both want to consider them together
imagine, but there is no need to answer General Clay

W:

until you come back.

HMJr:
W:

I can't answer him because I don't know how.

Yes, well, neither do we. In any case we're not doing
anything.

No. thanks.

All right. Anybody else you want to talk tot
I just want Fitzgerald, please.
Mr. Fitzgerald.

W:

HMJr:

Yes.

Hello.

Operator: Hello.
HMJr:

Mr. Fitzgerald, please.

2

O

readily accept it. He was particularly pleased with
the provisions requiring the Council, the Governor
and the Executive Directors to report to Congress
within not more than two years on the operations of

1

TREASURY DEPARTMENT
WASHINGTON 25

the Bank and Fund; whether or not they should be
merged; and to make recommendations with respect to
any other changes that might need to be made.

April 6, 1945

Dr. Burgess then told Mr. Aldrich the various
points that had been discussed and the suggested
amendments to the bill which would take care of those

TO THE SECRETARY:

In addition to the conferences held in New
York, referred to in Mr. Luxford's memorandum,
Dr. Burgess and I conferred with Mr. Winthrop
Aldrich, President of the Chase National Bank,
Thursday morning for about one hour and fifteen
minutes on the same subject discussed with the

points. Mr. Aldrich said that it still did not settle

the main questions BB to what to do with the British
and the trade restrictions. We told him that these
were separate questions and could not be included in
any bill on Bretton Woods. They would have to be
handled at different conferences.

other representatives of the banking institutions.
Dr Burgess explained that he and I both had
been a little worried about the apparent rift between
the Treasury and the bankers and we had discussed
the matter of getting the two together on some com-

promise basis, short, of course, of another world
conference on these agreements. He went into his
previous conferences with Mr. Luxford and Mr. Bernstein
and his subsequent conferences with these two gentlemen
and myself and Mr. Sproul, Mr. Williams, Mr. Fraser
and Mr. Potter and himself. He said that after pointing out what was desirable in connection with the

Mr. Aldrich then raised a few other questions
about the need for the Fund and its questionable
soundness, and the charge that the bankers had been

0

took two
answer three most
thesedid
and expressed
opinion
on
or tooccasions
thatof he
not feelhisnearly

so strongly as Mr. Aldrich had expressed himself.

I made it quite clear to him that all I was

trying to do in New York was to get the bankers and
the Treasury together on Bretton Woods along the linee
that Mr. Burgess had outlined, and told him that the
bankers and the Treasury had cooperated over the last
several years, and particularly had cooperated in
financing the war and I thought that some of the problems
with which we will be confronted in the post-war period
will be as difficult, if not more difficult, than the
war financing problems which made it

bankers program, he was asazed at what Mr. Luxford
and Mr. Bernstein were able to do by amending the

present bill to meet the objections of the bankers.
He thought they had gone a long way and that while
he would still prefer not to have the Fund at all
but only the Bank at this time, he felt that a great
many of his objections had been removed.

that the Treasury and the bankers continue vitally to cooperate. necessary

I said that the bankers would no doubt hold approximately one-third of the debt, which virtually made us
partners, and it was necessary for us to get along

He also told Mr. Aldrich that Mr. Potter and

Mr. Fraser both said that the memorandum that these
boys had drafted, if adopted, would eliminate many
of their fears and so far as they were concerned they

would be willing to accept it. Dr. Burgess then asked
me what attitude Mr. Sloan Colt had taken in the conference which I had had with him the previous afternoon.
I told then that Mr. Colt was most enthusiastic
about the memorandum and said he felt that he could

speculators in foreign exchange. Dr. Burgess under-

together.

Mr Aldrich said he thought we should get along,

0

but he found it rather difficult to get along with
the Treasury. He said the Treasury was now bringing
suit against his bank which in his opinion was not at

4

3

-

the Attorney General had told him that he was compelled to move forward because of a call from Secretary

all justified. He thought the Secretary, having

Morgenthau.

supervision over the national banks owed him the
duty when he found something wrong administration of Foreign Funds Control, to call the head
of that bank to Wash ington and discuss those failings

I also told him that the report on the Chase
branch in Paris was not yet ready for the Secretary
but I hoped that it would be within the course of
the next week or ten days, at which time we will
determine whether it could be made available to the

before filing suit. Certainly the Treasury does not
think that the Chase National Bank wants any person
in its employ who would violate Federal regulations
and he would be the first to fire such an employee

bank.

He said he did not see why it took so long. They
are just as anxious to get the thing cleared up as we
are and if anybody in the Chase Bank did anything
wrong they want to get rid of him.

if he found that he was guilty. He said he had

not the the

investigated the charges made by Foreign Funds Control

and he does not think there
justification
This isis any
borne
out by thewhatfact
ever
that he
for did
thehe
charges.
fire individuals
and with
further
fact
that
intends
to fightinvolved
the suit

all the power at his command. Also, the Treasury
sent examiners to Paris, France, to exmine the Chase
Bank branch there. They sade their examination and
brought the data back to this country after having
files for B number of months. He has

&

furnished
kept
asked
the repeatedly
to be with the
by the
Treasury
in itsChase
investigation
offacts
thisbranch found

There WAR another matter to which he referred,
involving trading in German marks, and helping out
the Gernan-Japanese factions,with which I am not

0

refuses to furnish him any information.
heitdoes
notwant
theopinion of
He but made the Treasury
clear that
the examine rs, but he would like to have the factual
data. He has no information concerning the branch
or its operations during the occupation other than
what was brought back by none individual concerning
one of his managers, whom he fired as soon RB he found
out what he had done. As to whether other employees
involved are guilty he does not know.
He seemed very bitter against the Treasury because of

it to that, but every time we started to discuss the

matter of Bretton Woods, he would return to the manner
in which he had been treated by the Treasury. Finally,
just about the time the conference broke up, he said

that aside from all this discussion it was a good thing
for the Treasury and the bankers to get together. He

busy in the Chase Bank suit.

case thought

did not feel that the bankers had to that

I told him that I did not think that that could

He paid he knew differently, that in this case

Becretary of the Treasury early in 1941, saying that
he worried about it, did like it and would
like to get the Treasury B views as to whether he
should stop it or allow it to continue. He said he
had a letter from the Secretary over the Secretary's
signature, thanking him for calling the matter to his
attention and saying he would be advised if the Treasury
wanted his to take any action in the matter.
I told Kr. Aldrich it seemed to me that these
were CRBES between his and the Treasury and should not
in any way influence Bretton Woods, that what we were
discussing now was a matter between the Treasury and
the American Bankers group and I would like to confine

these two instances. He also said that thin a day
or two after the ABA report case out, the Secretary
of the Treasury called up the Attorney General to get
possibly be any more than a routine check-up by the
General Counsel's office of a case pending in the
Department of Justice, that this WAR being done about
every month on our cases over there.

was not

at all familiar. He said on this case he wrote the

they had made their and by standing compromise, pat he

0

they would get what they recommended, but if it was a
matter of permitting the Treasury to save its face he

was willing to help out in this situation.

6

5I told him that it was not a question of

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

saving anybody's face and particularly the Treasury's
face. We did not think we were in a position where
we had to save our face but I personally thought it
WAB a good thing to get the bankers and the Treasury

Secretary Morgenthau

together. If the bankers do not think that is

S. George Little

necessary, then we will go on our way, but certainly
no one should enter this with the idea that they have
to save the Treasury's face.

Western Newspaper Union has sent ne the attached

proofs of the article they are running on Bretton Woods
which is scheduled to appear April 12.

He seemed to apologize for the remark.

saying that it WALE an unfortunate expression. I told
him I agreed that it was unfortunate. But anyway, he
said he would take the document which Dr. Burgess had
handed him, read it over and discuss it further in
the next day or two with Dr. Burgess and the group
that he WRB calling together for that purpose. He

One set-up is for tabloid newspapers and the other
one is for standard size 8-column publications.

This article will most likely appear in about 3500

saw no reason why we should not proceed AB we had

done and if it forms a basis for getting together he

O

2At

DATEApril 6, 1945

weekly papers instead of 2500, which was mentioned in

would be glad to cooperate.
The conference ended on that basis.

our original report.
O

ruB

O

C

Bretton Woods Conference Laid Groundwork
For a Stable International Monetary System
U. S. Postwar Exports
Depend on Soundness

Of Foreign Finances
By WALTER A. SHEAD
WHU HAR Comments

Stripped of all technical ver-

blage the proposals agreed
upon by 44 United Nations at

the Bretton Woods conference

and which are considered an

essential part of the world
peace plan to be approved at

San Francisco April 25, are
designed toLate up an International

term fund with working capital was
accided by 44 nations in gold and
member currencies totaling 1.5 be

Bas dollars of which the United
States is subscribe 1.75 billiess

and foreign

This Fund expected elabilite

Jall

of

R.

U.

vide tree and

(center)
with

Canada

-

L-Organise International bank
for
development
with . subscribed of bill

the

of

member

chairman

and

many

that

of

States is farsish LIFE /

late

get

Banne
M

delegation

Rossian

for

Steps
est

from

the

groups

world price of wheat
modify in terms of

Home of dollars which the Datted

conference

Woods

the

of

reciprocal trade agreements -

will

Purpose of the bank primarily to

Bretten

Woods

disturbed

the Committee for Exp

principal

headed by Part
president

countries.

facilitate Solative of foreign lease
arivate capital markets by providing
International

Brettee

the

is

Secretary

Internal

.

During

trade barriers is favor

of

currencies is

Stude

the

made
busi

and

to
the

So

capital learns direct
specific pro)

monetary

further

power
short

develop

and

claim.
regular
that

Why

guards?

American
and in the
epidemic
Under
debtors

..

setting

of

Bretton

fund

these

abroad
then

and

point

the

and

both
that

vestors

the

of

any

that

one

the 44 member

the

extent

by the objective of guarantee

the

ample before the

is

was disrupted by so-called
barter

multiple

is

volume
well

Great Need fee Rebebiling

France Italy Norway. Paland
Finland

area of Russia, the

intended

strictions and -

under practice. value

team greater
and exchange rates that Amer-

war. their facilities

possible
required

preliver
inter

export
foreign

intended

cap

for

get

country have tre

mendously enlarged productive in
dustrial plant Our agricultural pro

confirm

The

likely

provided
Chance for

the

for

freedom

would

be

their

They

to

pen have been waste by the
trate

Fund

The

large sections of England China
much of India and Burma. plus
Asia nations of Germany and

meaningless unless these other cost
triss accorded an equal measure of

N

There critician almed
at

efficiency After our ette

some
they

the

the war fiscal experts here declare
that never before has this nation -

freedom to their own

durtion has reached new ME of

Pointing the leadership
United States has maintained during

repled such key position or had

bank
are

such apportunity - take over
world

in

the

economic

at

ment.

Why the need for these safeguarda? Following World War 1

does

American investors look beating
and the late 1930s were caught is
as epidemic of dafaults by foreign
debtors Under the Bretton Woods

be

maintain stable
relationships

that

countries

some

in

importers are not permitted to our

by the objective of this guarantee

tries of which Germany was
ample before the war. foreign trade

bank

the

pointed

also

United States Is other
fund

the bank of there is
program

pleasing

same system
agreement

trate their currenties
and many years will
them to rebuild their
tries. They will
Hal to get

the only alternative
system

been

bloe

set

practice.

regarded

These

value

rates - that Ameri

by

such

team business may have the greaters
freedom in

would

likely

- letended to be provided

and

conflict
would

groups

bloc

lead

politically
Eventual

is the postwax The

Chance for Leaderably

breathese is the other reastries

for freedom of besiness would be

Pointing to the leadership the

United has maintained during

our

In

enlarged
mendously
Our
dustrial
plan.

experts

the

that

declare

here
this

dection has reached

efficiency After the
name policy will
employment and full

our agricultural and industrial
Itles. To realize

of

Treasury

the

outlets for products
factory
governate
ready

American

dustrial
the

bank

are

Under
fund

tary

bank
vestors

for

tries
gold

change
per

cest

of

times

of

distines.

during
action

country

dupers

Last

team

Bratton

the

the

designed
best
minds
the

world.

of

of

C

of

war. their productive

control

fund

the

economiata

sound

all

Axis nations of Germany
pan have been laid

exteb

text

must

many new restrictions have
because of military neces
remove

the

the moneys to

multiple currencies or barter
retarments and during the

belended

the

extent,

upon the fund for the

was disrupted by use of

area of Restic. the Balkan

large sections England China

only

that

out

considerable

Fisland

much of India and Burma

open

members

are

dollars required to buy goods

that

be

France, Italy. Norway, Paland

and

and

of

(

own economic well being
Great Need for Rebullding

bank

the

organization

vestors themselves not even
any one country. but upon all
the " member countries Obvious
loans is to encourage substantial
volume of private international
vestment which is essential

point-

closely related both in
in

instance

fund

shreed

normality

member countries
For

monetary
conditions

of

guaranteed .. to principal and national leans. would not fall

setting

that
the

and

proposals these foreign loans would
be investigated by the back and then

terest by the foreign government
and the bank Risks then of inter-

that

have

not

of

c

ects reconstruction and develop

by

o

R

SION

capital lease direct
to member nations for specific pre)
TRADE MARK

Lert

England famel *****
monetary authority, who
Brittan group of delegates.

currency has been devale

indiction . result of the
with Japan British bank
concerned about Chinese

Beandal stability. - only .. part

of the world monetary situation
but because of the extensive British
business Interests la China,

Special Feat. No. 7-4514

Bretton Woods Conference Laid Groundwork
For a Stable International Monetary System
U.S. Postwar Exports Depend Upon
Soundness of Foreign Finances
WALTER SHEAD

With Full Employment, People Will Buy More Farm Products
In Peace Than in War, Sec. of Agriculture Wickard Predicts

Tabloid 4514 Page

DRY MAT PATTERN

RECISION

TRADE MARK

MM

MICROSTAT

12

-2-

MEMORANDUM FOR THE SECRETARY.

April 6, 1945
Mail Report

April 6, 1945.

With no new subjects to spur it on, mail fell
short of the summit it reached last week. Receipts
dropped off evenly along all lines, and very few of
the letters that were received offered material for
the week's abstract.

Much of the miscellaneous mail concerned international affairs such as the Bretton Woods Proposals,
peace terms, and postwar plans. Among the last, there
continued to be both approval and disapproval of the
so-called Morgenthau plan.

There WB.S still quit a bit of interest in the
Treasury's drive against tax evaders. but most of the

March showed small increase over those received in

communications on this subject were anonymous and

merely named individuals or businesses that should be
investigated. Several of these unsigned letters, and

a for signed ones as well, urged the calling in of
large bills, to curb blackmarketing and tax evasion.
Outstanding in other tax mail were the protests against
tax exemption for co-operatives, which, it was said in
a number of well-written letters, could be a source of
substantial Federal revenue.

The Seventh Drive was again the most popular bond

topic. Further replies to the form telegram of March 13,
and to the banking institution letter of March 20
continued to give assurances of cooperation, as did the
responses to the more recent letter sent by the War
Finance Division on March 26. Several writers submitted
poems or slogans for use on the Iwo Jime poster to be
used in the coming drive, and others suggested new

types of bonds that might be offered. Two additional
Industries wired that they had already exceeded their
quotas for the Seventh.
The general reduction in mail this week also
brought a decline in the number of complaints about

delays in receiving bonds, interest, etc., and only
half a dozen bonds were forwarded to this office for
redemption.
C

Memorandum for the Secretary.

Although mail receipts from the White House during

February, the total of 220 letters was still quite low,
particularly in comparison with preceding years in

which receipts for March have usually ranged from 500
to 700. Fifty of the 220 communications were acknowledged
in the Correspondence
Division, and the others
were re-routed
or filed.

14

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0

General Comments

M/Sgt. Herman Antis, Italy. Please accept the enclosed United States Postal Money Order for $2.00 as
& gift to the United States from an overseas soldier

are for sale. We wish to take this opportunity to

commend you in behalf of our Association on the manner

in which you are carrying on the sale of surplus
properties. We think you are doing an excellent job
and are glad to help our members and subscribers by
listing the properties for sale in the magazine.

who appreciates more and more each day what a great,

just country he left behind.

Harry C. Westover, Collector of Internal Revenue
Los Angeles, California. During the past several
months we have been receiving letters over your signature relative to matters concerning employees of the
Treasury Department. I want you to know that these
letters are greatly appreciated by our personnel, and
we are all cognizant of the fact that you are concerned

with our welfare I know you are interested in any
program which will build up the morale of those in this
service, and your letters are certainly accomplishing
their purpose. One of the things which we have had to

C

contend with during the past few years has been the inequitable differences between the salaries paid to
members of the Internal Revenue Department and those
paid to employees of war industries. We have lost many
of our best employees because they were offered greater
opportunities In private industry, and anything that
can be done to increase the financial reward of our employees will, I am quite sure, work to the betterment
of the Department. Our personnel is very much interested
in the Bill introduced by Senator Downey, and we trust
that before many months this Bill may be enacted into

law. We all look forward with anticipation to your
letters.

Roy A. Gould, President, Timber Operators Association,
Mayfield, Washington. We have been advised that our
publication, The Timber Operator, has been brought to
your attention and that you are pleased with the manner
In which we are advertising surplus war properties that

Nicholas Bela, Executive Secretary, National Origins
Council of America, Los Angeles, California. At the
membership meeting of our Council, held on March 26,
1945, a resolution was unanimously passed by the
representatives to support the Bretton Woods Agreements
as is. I have been authorized by a vote at the meeting to extend to you the organization's full backing,
and to congratulate you on your great work of outstanding statesmanship. We request that you send us
material on the Bretton Woods Agreements In adequate
quantity to educate our approximately 90 member
organizations.

Charles W. Davis, Detroit, Michigan. I am enclosing
Disability Compensation check for $50.00 "Payable
the Treasurer of the United States for War Effort*
I am pleased to return this check to be used for War
Effort, and will continue to do so whenever possible.

to

3-

16

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Unfavorable Comments on Bonds

Lester G. Saeman, Attorney, National Surety Corporation,

New York City. On December 1, 1944, the messenger of

Lewis C. Nelson, Commerce Building, St. Louis, Missouri.
My brother, Lieut. James M. Nelson III, U. S. Coast
Guard, is at the present time and has been for approximately the past nine months, on active duty in the
Southwest Pacific. During his absence I have been taking care of his business and other affairs for him and
have in my possession a Power of Attorney, properly

the Security Bank, Louisville, Kentucky, enroute to
the clearing house Was held up. Among the items

taken WILS a number of Series "E" War Bonds as per

executed and acknowledged by his Commanding Officer.

Today I attempted to present for redemption to the"E"
Federal Reserve Bank of St. Louis one $50.00 Series
War Savings Bond, registered in my brother's name.
I presented to the Federal Reserve Bank the original
executed copy of the above-mentioned Power of Attorney
I WILD told that this Power of Attorney could not be
honored and that no Power of Attorney whatever, regardless of how drawn, would be recognized by the Treasury
Department for the redemption of War Savings Bonds.
I was told in order to redeem the $50.00 bond it would
be necessary that I mil Form PD 1522 to my brother in
the Southwest Pacific for his signature. I have used
the above-mentioned Power of Attorney many times in the
past few months to sell shares of stock owned by my
brother, to withdraw funds from his bank accounts and

to transact various business in his name. I desire to
protest strongly against the perfectly ridiculous regulation of the Treasury Department that will not allow
a perfectly valid Power of Attorney, executed by man
fighting for his country overseas, to be used to redeem
obligations of the United States of America. If the
Transfer Agent of a large company will recognize this
Power of Attorney, if a bank will recognize it, if first
class legal talent declares the it is in all ways valid

and binding, it is beyond the powers of human conception
the Treasury Department refuses to recognize it as

why My brother has been for the past several years,

such. and still is, purchasing & $50.00 Series "E" War Savings

out of his salary every month. Unless this perfectly

Bond ridiculous regulation is changed I will be forced to

write him and advise him as a matter of sound business
not to buy any more U. S. War Bonds.

C

0

list attached to this letter. These bonds were cashed
by the Security Bank for the amounts shown on the attached list. Each bond has a rubber stamp notation
on its face that the bond was paid. On the same day
the robbery occurred the Security Bank wrote the Treasury Department, Division of Loans & Currency, Merchandise Mart, Chicago, Illinois, advising them of the
theft and ordering payment stopped on the list of Series
"g" Bonds attached to that letter. On December 12
1944, wrote the Treasury Department at Chicago, In
which I requested payment stopped on the bonds and the
proper procedure for the Security Pank to recover its
money. No answer was received from the Chicago office
in response to my letter of December 12 nor the Security
Bank letter of December 1, 1944. I wrote our National
Surety Corporation of fice at Chicago to make & personal

call on Mr. A. E. Wilson at your Chicago office. was
told that the matter was given attention and in February
I received a letter from our Chicago office advising
that the matter was being referred to Washington for
decision, and that I would hear from some one within
the next two or three weeks. Since then I have heard
nothing from anybody.

William A. Weaver, President, The Arabol Manufacturing
Company, New York City. This acknowledges your circular
letter of March 26th announcing that the Seventh War
Loan Drive will take place shortly. We wish to assure you
that this company and its employees will again do its
share in helping to make this Drive a success. However,

there is one thing I would like to point out to you

which might have some bearing on the sales to our enployees -- during the past two years the Board of
Directors of this company authorized the payment of a
two weeks' Christmas bonus to this company's employees.
We suggested payment to the employees of one week in
cash and the other week's bonus to be used by the company

18

-6-5Favorable Comments on Taxation

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on behalf of the employees to purchase for them U. S.
War Savings Bonds, which we agreed to hold until

Herman Steinbruch, Radio Advertising Manager, VARIETY,

after the War and the Salary Stabilization Unit of
the Treasury Department denied our application for

the second week's bonus. If this had been approved
it would have resulted in the purchase of possibly

$8,000 U. S. War Savings Bonds each year. We did not
write letters this year pertaining to the 1944 Christmas
bonus but we contacted the Treasury Department, again
making the proposal that the second week's Christmas
bonus be given in U. S. War Savings Bonds, and we were

again rejected. I am just bringing this to your attention at this time so that you can see that our employees
do not feel so kindly toward subscriptions to War Bonds
when they are denied the privilege of receiving extra
funds to purchase them.
Howard J. Chidley, D.D., Winchester, Massachusetts.

I received your recent communication about the coming

Liberty Loan Drive. If this is a trial balloon to
test the sentiment of the churches, used by the

New Deal to further its interests, I being will say in

no

uncertain terms that while I an heartily in favor of
giving every support to the Armed Forces, I am not
In favor of having the church used as a government
agency, especially in a country where the church and
state are separate. Rather than have my church used

in this way, I would die on its doorstep, fighting for
its liberty. The New Deal has laid Its hand on judiciary,

industry, radio, newspaper, education, and what-not.

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1

New York City. In my opinion there is a perfectly
legitimate way for the Government to handle the
"royalty" matter recently precipitated by Petrillo
and Lewis. Until such time as legislation is enacted,
outlawing royalty assessments by labor unions, the
Treasury Department can and should enforce collection
of taxes based on income from such royalties. Form
#990, currently used by organizations exempt from tax
provides a suitable space under Item 6 (Page 2) titled
Gross Receipts from Business Activities", for listing
such income. Since revenue resulting from royalty payments, irrespective of the source, and regardless of
the purpose for which used, is clearly Income, It should
be reported as "income from royalties". While the onforcement of such tax collection might be tantamount
to admitting the legality of royalty assessments by
labor unions, the position of the Treasury Department
is clearly defined and might serve B.B a warning.

PRECISION

MICROFILM

TRADE MARK

ROLL NO.

19

20

(

Unfavorable Comments on Taxation

Claude R. Bossler Johnstown, Pennsylvania. I an one
of United States Steel Corporation's Poor Pensioners.
They are supposed to be paying me $148.00 & month,
but they deduct $13.00 a mont as a withholding tax

William H. White, Jr., Clark Hall, University of Virginia,
Charlottesville, Virginia. I recently read w] th considerable interest that the Bureau of Internal Revenue

I have to pay on that little pension. With the cost

of everything my wife and I eat and wear going up in
price, that $135. .00 a month doesn't go very far.
There should and must be some relief for the little
pensioners who must live on a small fixed income
which continues to shrink.

was making a study of the so-called cooperatives.
I happen to be a director of a company engaged in
highly competitive business and among its competitors
are many so-called "farmers' co-ops". The corporation,
a

which I referred to. in 1944 will pay to the United

States upwards of one million dollars In taxes, whereas
its cooperative competitors will pay nothing. The disadvantage to which the taxpaying corporation is subjected

Mrs. Henry A. Gozan, Carolina Beach, North Carolina.
Around the middle of February I received a statement
from the Collector of Internal Revenue, Brooklyn, New
York, of an indebtedness of $27.13. This was supposed
to cover that part of my husband's 1943 income tax,
payment of which I WILS permitted to postpone until
March 15, 1945. I immediately wrote them that since
my husband had entered the Army in August 1942, and
our income since that time has always been below the
taxable minimum, I could not understand the charge
and requested a clarification. Although I had received
no reply as the deadline date approached, I decided
to pay It anyway, just to be on the safe side. On
March 10, I sent a check, at the same time repeating
my request for an explanation. Subsequently, my
husband. who is oversees, wrote me that he had reviewed
the matter last year and found that he had no further
indebtedness and filed accordingly. Therefore, my
payment was erroneous. Although It is close to 3 months

is perfectly obvious. Let me give you another illustration. I happen to know of an Individual carrying on a

very successful business largely on borrowed money.

His business la so successful that he is in a high tax
bracket. with the result that after paying taxes he has
so little net income remaining that he is unable to reduce his bank obligation appreciably. He now contemplates
turning his business into a "co-op in which he will

$

still retain a very large interest. The result, of

course, is self-evident -- no Federal or State income
tax to pay, so the bank loans may be promptly paid off.

Undoubtedly an amendment to the income tax law to

include "co-ops will meet the opposition of the "farm
block": but after all, why should not these "co-opa" of

many types, which compete with legitimate taxpaying
corporations, bear their share of the expenses of Govern-

ment. If fairness is the basis, then, of course, there

is only one answer. They should be taxed precisely like

since made by original inquiry, I still have received
no reply. I think you can well understand that with
BY husband in service, I have difficulty enough just

the corporations.

making ends meet and can ill afford to make any unwarranted cash outlays. I therefore appeal to you
in the hope that you may be able to arouse my local

office, at least to the point of acknowledging receipt
of my communications and trust that a refund will be

made 0.0 soon as possible.
0

O

PRECISION

MICROFILM

TRADE MARK

BOLL NO

Hoffman

my 22

SECRET

March 29, 1945.

MEMORANDUM FOR THE PRESIDENT

Subject: Proposed Lend-Lease Arrangements

Office Memorandum UNITED STATES GOVERNMENT

w

C

with Belgium and the Netherlands

April 6, 1945.

SECRET
TO

FROM

Mr. Hoffman, Treasury Department

Mr. Fetter, LP, State Department

SUBJECT

in

In accordance with your request
our phone conversation an enclosing

a copy of the memorandum presented to

the President on March 29, or proposed
lend-lease arrangements with Belgium and

the Netherlands. no you know. this was
approved by the President.

We have been discussing lend-lesse and reciprocal
lend-lease with representatives of Belgium and the
Netherlands Having signed the 3-0 agreement with
France, we feel that political considerations make it
agreements
Netherlands.
Insimilar
each lines
casewith
thegold
desirable Belgium and
to the have on
and dollar position, the future balance of payments,
and the volume of reciprocal aid would be taken into
account.
of

We have worked out a Belgian-Luxembourg proposal

a relatively smaller amount than the French agree-

sent. The proposal intemplates $325 million for the
remainder of the calendar year and follows in general
the pattern of the recent French agreement, with no

item for transfer of title to ocean shipping. We are
also examining proposale for the Netherlands. In
each case the nature. extent and duration of lendlease will be determined by the contribution which
such aid will make to the prosecution of the war and
we shell provide for periodic review of the program
in the light of the changing war situation. Consideration is also being given to an arrangement with
Norway.

If you approve, we shall immediately move forward
with the representative of Belgium and the Netherlands and possibly Norway looking towards early conclusion of such arrangements.

We do not intend to conclude any of these agreementa until Congress has approved the extension of
the Lend-Lease Act.

Enclosure.

Acting Secretary of State
Secretary of the Treasury
Foreign Economic Administrator

PRECISION

TRADE MARK

MICROFILM

MICROSTATA

ROLL NO

23

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

DATE April 6, 1945
TO

Secretary Morgenthau (For information

FROM

Hr. Coe FC
This is an important erticle on what the Ruhr industrialists

may be trying to co.

O

PRECISION

TRADE MARK

MICROSTAT

MICROFILM

REG.U.S.PAT.OFF

-

RHENISH INDUSTRY
BACKS SEPARAT
Seek

Manufacturers
Properties,

Disolaiming

Any Nazi Connection
BAYMOND

ROLL NO

26

25
EXECUTIVE OFFICE OF THE PRESIDENT

EXECUTIVE OFFICE OF THE PRESIDENT

WAR REFUGEE BOARD

WAR REFUGEE BOARD

INTER-OFFICE COMMUNICATION

INTER-OFFICE COMMUNICATION

DATE

DATE April 6, 1945

APR 6 1945

10 Secretary Korgenthau

TO

FROM Willies O'Dayer

Secretary Korgentheu
Miss Hodel

Fax your information

I as sure you will be interested TO know that we

have Just ande arrangements with the War Department for

the sale to the War Refugee Board of 206,000 parcels of
this Government' present reserve of orisoner of ver
pmokages now in Switzerland, on condition that the parcela be repackaged before shipment by the Wer Refugee
Board into Germany. We are nov working out the details
of the transfer and repackaging.

0

We are very pleased over this because it not assuree
us of an adequate supply of food to be shipped by truck
from Switzerland. During the past two weeks, we have
thoroughly exclored the problem of obtaining food from
sources in the United States and it 18 clear that, even
under the best circumstances, it would take any sonths
before packages could be prepared for shipment to Europe.

0

General O'Dwyer has asked ne to advise you that he
called Mr. McClelland on the telephone this morning to
get the Intent report on our progress from Switzerland.
Five trucks are leaving Switzerland Monday, April 9th
for Lubeck in the northern part of Germany, carrying 80
tone of parcels and fuel. Four more trucks are leaving
Switzerland April 12th for the Dacheu caupe which are
near Munich. 30,000 Var Refugee Board parcels will go
forward by railroad from Switzerland to an International
Red Cross depot near Ravensburg, Germany. With this
movement under way, it is contemplated that the 80,000
War Refugee Board parcels still in Switzerland will be
cleared out of Switzerland within the next two weeks.
This clearly points un the need for the orisoner of war
parcel which General O'Dwyer reported to you yesterday
had been arranged for with the War Department. Mr.
McClelland was delighted with this news and he will work
out at once all the details of repackaging in Switzerland.
Kr. Katzki has arrived in Switzerland from Paris and will
stay in Geneva for the next week to work closely with the
International Red Cross on the details of this program.

With respect to evacuating refugees to Switzerland,
reported

that

it

is

expected

that

a

McCielland

truck

convoy will arrive in Switzerland very shortly bringing
300 women, children and aged people. He stated that the
Gernana had not yet finally agreed to the use of our
trucks for evacuating refugees to Switzerland.

Jacme Hodel

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0

27

INCOMING

DEPARTMENT
OF

RECETELEGRAM

STATE

DIVISION OF

28

CENTRAL SERVICES

TELEGRAPH SECTION

-2- #1988, April 6, 11 a.m., from Bern.

DIVISION

Bern

DD3-747

Distributor of true

Dated April 6, 1945.

arrangement. (SECRET in

Rec'd. 12:35 p.m.

reading only by

fith tires and ditarl oil procured for ICRC
by board's efforts committee hopes make at least
four trucks available also next week for our

00/
LIAISON

Scorctary of State

program.

Since it 10 quite possible that only areas of

Washington

Munich and to cost and northeast thereof will be
US URGENT

accessible in future it is planned to direct relief

1988, April 6, 11 a.m.

shipments by truck mainly to these regions taking

FOR O'DWYER OF WRB FROM MOCLELLAND.

EXTENTION

in camps of Dachau, Landsberg Amlech, Flossenburg

Arrangements with ICRC for securing trucks

to transport URB food parcels into Germany for
civil detainees are shaping up as follows: Six

and Mamthausen near Linz, including emergency

relief to evacuated deportees on roads. These

0

shipments would be apart from any that might go

Renault trucks will be available for loading morning

to Lucbeek area.

April 9 and should depart on April 10. ICRC's
Division of Special Assistance still hopes and
them to Berlin - Luebeck - Hamburg area to relieve

Recent news from Germany indicates that al-

most all internal telephone and telegraph comunications art disrupted no that individual camp

rapidly worsening condition of detainees in con-

comanders are progressively more isolated. Little
or no centralized 33 control, therefore, appears

centration camps of Oranimburg, Ravenabrucck
and Hamburg Ncurngamnc. If it proves impossible

to exist which may tend to preclude any general

to dippatch trucks this area they will be sent

last minute Extermination of large group civil

Hunich region and cast.

detainees.

Prospects are good getting four to six more
Renaults moving by April 13.
These French trucks, athough new, all TEO

quired light overhauling, painting with ICRC insignia, et cetera, which has delayed their USE.
With tires

ICRC reported this afternoon that truck convoy carrying 300 French women and small children,
0

presusably civil detainees, is expected to
arrive

29

30

3. #1988, April 6, 11 a.m., from Bern.
arrive Kreuzlingen tomorrow.
Exact area or camp from which these persons

ME-749

Barn

This telegram must be
perspirated before being

Dated April 6, 1945

communicated to anyone

other than . Government
Agency. (RESTRICTED)

come is still unknown.

Herbert Katzki arrived this afternoon, April

Heald 1:32 p.m.

Secretary of State

5 from Paris and will actively work with me on

Washington

these WRB programs.

1996, April 6, 2 p.m.

All further significant developments in situation
will be reported to Board.

AMERICAN INTERESTS GERMANY.

Department's 1061, March 14, 1127, March 19.
HARRISON
JT

MiCielland will endeavor include in Philippoville

convoys all six civilians this far certified as for
travel (Fround, certain and Being Hassenberg, Rechal

Fuldauer and two children). In event three remaining

sick civilians, Berthold maller (Haitian), Jacob Levy
(Honduran) and Redelph Freedman (alleged American) are

physically able undertake journey before two refugee
groups leave Stiteerland, Legation assumes Department

would be agreeable their transfer to Philippeville.
HARRISON
JMB

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32

31

April 6. 11 - free Dora

#1968
Bays

C

Recent save free Gereray Indicates that almost all internal telephone and telegraph

0

Dated April 6, 1945.

catters are disrupted .. that individual camp

commandere are progresively sere iselated Little
or as centralized as central, therefore. spoears

Rec'd. 12:38 P.A.

to exist which may tend to preclude any general

last simule extermination of large group civil

Secretary of State

detainess,

Washington

ICRO reported this afternaon that truck canvery carrying 300 French women and small children,

US INGEST

presumably civil detainers, is expected to

1988. April 6. 11 ..

arrive Kreuelingen

Direct area or CANS free which these persons

Arrangements with ICEC for occuring trucks
to transport VRS feed parcels into Germany for

case 1. still unknews.

Resuult tranks will be available for leading meraine
April , and should depart en April 10. ICNC's
Division of Special Assistance still hopes send

5 free Paris and will actively work with as ..

civil detainess are shanise up as follows: Six

then to Perlis Lasback Hamburg area to relieve

rapidly versening condition of detainess in contration campe of Oraniemburg. Revensbruch

Herbert Kataki arrived this afternoon, April

these VRD programs.

A11 further significant developments is situation
will be reported to Board.

and Hamburg If 11 proves impossible

C

to dispatch trucks this area they will be sent

Munich region and east.

Prespects are good getting four to six are

Resuults noving by April 13.

These French tracks, although new all re

quired light everhauling. neisting with ICRC is
signia. at cetera, which has delayed their use.
With tires and diesel oil precured for ICRC

by Heart's efforts committee hopes make at least

four trucks available also next week for our

press

Since 11 is quite pessible that only areas of
Kunich and to east and northeast thereof will be

accessible is future " is pleaned to direct relief

shipments by S neck mainly to these regions taking
is CANDR of Dachas, Landesberg Aalech Flessenburg
and Manthouses Beer Line, including emergency

relief to evacuated depertees es reads. These
shipments would be start free any that eight go

to Luebeck area.

MARRISON
JT

PRECISION

TRADE MARK

MICROSTAT MICROFILM

33

Born

Dated April 6. 1948
Rec'd 6:35 P.S.

Secretary of State
Vashington
US

2009, April 6. . P.S.
FOR O'INTER OF WRS FROM

Immediately fellowing your telephone call I
contacted ICRO regarding possible need for repacking
206,000 Address POW parcels where release to ICRO

for WR program is Germany yes have just obtained.
ICRC states that under present conditions of
C

distribution is Germany it will definitely ast
(repeat not) be necessary to repack these parcels.
They can be used as they are with exception of

possible blacking out of markings, changing labelling.

at cetera, all of which can be dene leadly. These
parcels will, therefore. be almost immediately
available for our VRB relief shipments.
KARRISON
as

35

34
0
CAHLE TO AMERICAN LEGATION, BERN, FOR MOCILLAND, PROU WAR REFUGEE BOARD

Please deliver the following message to Mrs. Hara Klee, c/o Pelico
CAHLA TO AMERICAN EUHASSY, HOUS, FROM WAR REPUBER BOARD

Deneva, 1 Rue do Ithone, from Dr. Abrahan Silberschein of World Jewish
Congress:

Please deliver the following message to Joseph Schwarts,

Rose, from H. A. Leavits of American Jewish Joing Distribution
Consittee

QUOTE PLEASE PROCURE DOCUMENTS SKIJA SARA SALLHEIMS BORN

APRIL 16, 1884 HAUPSTRASSE 8 INDE
KLISABETH MANDEL DECEMBER 14, 1930 DELISTEN STEPHANIE CHCILIE

AND JUNE 17, 1933 DRESDEN THERESIMISTADT LOUIS JACOB JUNE

12, 1895 KVA JACOB NEW SIKING AUOUST 6, 1912 MBRLIN

ANNALIESE JACONT SUPPORT 14, 1934 ERLIN SEORCE
QUOTE PRETERICH WHITE APPLIED POST OVERSEAS BORN

AND SEPTEMBER 25. 1861 LUBLINTZ GENTRUDE KAIGE NES KAUPHANN

- TORK JANUARY 25, 1900, EDUCATED RAISED EUROPE

DECEMBER 22, 1877 WISSHADKS STOP ASK MY

UNMARRIED EXPLOYED AS RESOUTIVE DIRECTOR AMOUTCAN

STATEDINIAN IF SUE HAS NEWS SKINA SARA SALLNETN STOP ADVISE
LOUISE MANN HAVE SHEN HUSBAND WILLING TO APPLY FOR VISA
STOP INQUIRE KLSS FISHI ADLISHIL ABOUT ANNA FISCHER NOCK

JENTSH CONTRESS CHICAGO OFFICE FAST FEV% THARS STOP
ALTHOUGH LACKING SOCIAL SERVICE EXPERIENCE inc FAS
COMMUNITY ORGANIZATION EXPERIENCE AND IS ATURE
INTELLIGENT PERSON ADVISE SOONEST WHETHER in SHOULD
KNOADE HIM UNQUOTS

TAUSSIO ATTRESSING STOP FIOND.TRASPASSPORTS

FAMILY ASK ATTORNEY HEYWAND STOP TROPP

SUBJITTED TO SISTICINIAN STOP ASX KLARA CAPO LIMERATED

THORESIENSTADT ABOUT PAUL FAMILY. UNQUOTE

THIS IS WEA HER CARLE NO. 480

4:15 P.M.

April 6, 1945

4:15 Pall.

April 6, 1945

37

36

C

CABLE TO AMERICAN LEGATION, STOCKHOLD, FOR OLSEN, FROM WAT REFUGES BOARD
CABLE TO AUGHICAS LEGATION, SEEN, FOR HOCLELLAND, PROU THE TAX REFUGES HOARD

Please deliver the following cassage to Frita Hollander, Fostbox
Please deliver the following cessage to Saly Mayer, St. Call, from
% A. Leaviss of American Jewish Joint Distribution Committee
CHOTS JOHN FLATORY, UNIONGITY NEWJERSEY, IMPORTANT FRIEND OUR
ORGANIZATION RECEIVED REGIENT APPEAL HELP HIS NEPHER, MARCEL GORIG,
DEAK VIRGENCE UTCA 17, HODAFIST 4. 102 AUTHORIZE YOU GIVE NECESSANT

7306, Stockholm, from yourt Grossnan of world Jewish Congress:
QUOTE RECARDING FOODPARCELS HORDENHELSEN PLEASE OUT NAMES

SORIETTE VA TIJN, MELINA UNQUOTE

ASSISTANCE. PLEASE IMPORT us expected UNQUOTE

his 15 an STOCKHOLM CARLE NO. 348

THIS is again CANCE NO. 489

4115 p.m.

April 6. 1945
4.15 Palla

April 6, 1945

39
38

CABLE TO AMERICAN ENHASSY, MOSCOW. FROM THE WAR REFUTER BOARD

Please deliver the following measage to Keil Sonnerstein, Aurahan
Bersan, central Committee for Folish Jown, c/o Jewish Antifascist Committee,
100 c ow from Arieh Tartakover, Chain Pinkelstain, World Jewish Congress:
CHOTS HATT LEARNED FROM PRESS ABOUT YOUR ACTUATIVE AND WONDAL
IST NO COMMUNICATION FROM YOU UNTIL NOW AFAITING YOUTH SUGESTIONS
AND COOPERATI N PLEASE INFORM ABOUT YOUR MEEDS, PLEASE COMPILE
AND DESPATO us LIST JENTSI SYNVIVORS CONTAINING NAMES ACRE
PARENTAIZE PREVIOUS PRESSIGNT ADDRESS AND IF POSSIBLE NAMES ADDRESSES

RELATIVES AMERICA on ELSEMHOUSE OUR DIVISION FOR DISPLACED PRESCTS

SUCCERDED IN ACCUMULATING OVER 100,000 NAMES JENTISH NOW
SCATTIHED ALL one WORLD OF WISOM HALF APE POLISH JENS REPUBLES IN

CARLE TO AMERICAN DIRASST. LISBON, FROM THE WAT REPUGEE BOARD

Please deliver the following cassage to Harold Trobe from V. A.
Leavitt of American Jewish Joint Distribution Committee
QUOTE ADVISE SCHNANTZ HIS IMPRESSION SECONDOUS AND NB STILL
MUST LORGE LARGER REDUCTIONS MONTHLY BUTCHER'S ISSPECIALLY DURING

SUITED MONTHS. MARCH APRIL BUDGETS WORK APPROVED BASIS HIS

REDUCED RECOMMENDATIONS DESPITE FEELING SOME CONTINUMICK THIS BASIS VAT ASCESSITATE SHARPLY DECREASED NUDGESTS
MONTHS. MARCH BUDGET SWITZERLAND $900,000 INCLUDED
$100,000 CARRIED OV R FROM 1944 REFUND PURCHASES TURKEY,

SOVIET RUSSIA. JENS ARE KACHE TO LEARN ABOUT FATE OF
HIVES CHILDREN PARKINS CABLE CRESTING. UNQUOTE

THIS IS YOUR LISHON CAHLE MO. 165

4:15 P.T.

April 6, 1945
4:15 P.M.

April 6, 1945

41

40

O

CARLE TO AMERICAN ROVE, PROW THE WAR REFUGEE BOARD

CARLE TO AMERICAN LOCATION, STOCKMOLA you OLSEN, FROM YEAR REFUNES BOARD

Please deliver the following measage to Hilel Storch, Postbox 7306,
Please deliver the following message to Dr. Schmarts from 11. A.

Lesvitt of American Jewish Joint Distribution Committee:
QUOTE MAX PRODUCES RECONSTIORING PREPARION ACCEPT OVERSEAS

to YOU ISH
APPLY POST OURVALIDATION
PASSPORTCONTINUING
TRUST. ASSIGN
IN
DAILYKIM
EFFORTS

RECRUITING PERSONAL RAVE THREE on FOUT INVEDTATIO PROSPECTS.

WILL KOUP YOU ADVISED AWAITING YOUR TEEPLY RK VITEIES

Stockholn, from krish Partakower of World Jewish Congress:
LOOTS integust improve us THAT FOR JERS FROM FRANCE
AND REGARDLESS or THERE NATIONALITY THE GERMAN
AUTHORITIES PAYS ADREST THAT IRC DELEGATES CAN VISIT
CAMPS AND DISTRIBUTE FOODSTOTY CLOTHING INDICINES TO

THIS BUT CLOSS DELUGATE WILL ALSO RECEIVED LISTS or
NAMES PERSONS INTAINED CONCENTRATION CAYPS. CONSIDER

THIS SITUATION IMPORTANT FOR YOU ACTION. UNLOOTE

ASSIGMENT. UNQUOTE

THIS IS TOTAL STOCKHOT NO. 347

4:15 P.M.

April 6, 1945

4:15 P.M.

April 6, 1945

ION

TRADE MARK

NOT TO BE RE-TRANSMITTED
COPY NO.

4

42

SECRET

OPTEL No. 110

Information received up to 10 a.m., 6th April, 1945
MILITARY
WESTERN FRONT.

1.

Southern Sector: French troops have entered Karlsruhe while further north clearance of Aschaffenburg and Lohr now
completed by troops 7th U.S. Army, elements of which have also
crossed River Main at points ten miles S.E. and two miles N.N of
Wursburg.
Central Sector: On 3rd U.S. Army front two parallel
armoured thrusts with infantry clearing most of intervening area,
have captured Suhl and Hotha, while further north Mulhausen has
been surrounded and armour pushed ten miles beyond this town.
Operations by 1st and 9th U.S. Armies to compress Ruhr pooket
from south, east and north, made some progress against strong resistance while to N.E. this area armour of latter Army advanced
to within two miles Hamelin.
Northern Sector: British Airborne troops and Armour
have cleared Minden and closed up to River Weser on 15 mile
front north of that town in which stretch river has been crossed
at two places. while further west armour has advanced 25 miles to

within four miles Diephols. North of Rheine gains of 5 miles
made against strong resistance and Hengelo cleared, while still
further west troops of 4th Canadian Armoured Division have captured Almelo and on extreme left flank stiff opposition being
encountered in area Arnhem.
EASTERN FRONT.

2.

Northern Sector German remnants on coast north

Gdynia now mopped up.

Central Sector: Russians made further progress in
Polish Silesia and Slovakia.
Southern Sector: Advances made east and south of

Vianna while road to Linz cut to west of forner town. Further
advances also made across Hungarian and Yugoslav border.

3.

ITALY.

4.

BUBKA.

On 8th Army front British Commando troops captured
several small islands in Lake Comacchio. On 5th Army front
attack launched by U.S. forces made progress towards Massa.

Coastal Sector: Our forward troops now two miles

from Taungup.
AIR
C

WESTERN FRONT. 4th/5th (night). Bomber Command des-

5.

patched 1173 (18 missing 615 against two synthetic oil plants
Merseburg (1958 tons). 328 synthetic oil plant Harburg (1017 tons)
35 Berlin, 31 Magdeburg, 30 seamining and 134 other missions.
Halifaxes probably sank one 4000 ton ship off the Skaw and damaged
one 2500 ton ship off Larvik.
5th. 1035 U.S. escorted heavy bombers (21 missing
or outstanding) attacked Ordnance Depots Ingolstadt (354 tons
Grafenwohr (371 tons) and Furth (141 tons) Rail centres Nurnberg
(805 tons). Bayrouth (257 tons), Plauen (348 tons) and other
targets (279 tons).
SHAEF (Air) medium bombers 145 attacked supplies in
Southern Battle area while 1853 fighters and fighter bombers (13
missing) operated whole front destroying 92 locomotives, 658 M.T.
and 455 railway vehicles and at same time inflicting enemy aircraft casualties 17 in combat and 97 destroyed on ground. Coastal
Command Mosquitoes attacked convoy 51 miles E.S.E. Allborg when

6 ships averaging 1500 tons each left sinking and seventh on fire.
6.

MEDITERRANEAN. 3rd/4th, Heavy bombers dropped 159

tons railway centre Novska (60 miles S.E. Zagreb).

4th, 944 tactical sircraft attacked communications
and other targets North Italy while fighters destroyed 25 1000motives on railway Munich-Linz.

2

44

TREASURY DEPARTMENT
WASHINGTON

April 7, 1945

m

Land-O-Lakes notive in behalf of Bretton foods. Holman is now lobbyist
for the Milk Producers Association. We have contacted him and will have

his over here the early part of next weak, at which time he will lunch
risk Harry Witte. 15m is a vigorous lobbyLat and will be a worthwile

Dear in Secretary:

addition to our camp if in can got him. There is a 50-50 chance.

This is the represe you adidas Date . for related up cm the

3. the following organizations have endorsed Bretton Goods

I - joing to distate it and reas for . train, 20 11.

Committee on International Trade, New York, . Y. and The Tuxas Cotton

Loray will sign it for 20.

Association, Waco, Texas. life are going to nee that these resolutions
are inserted in the Congressional Report.

1. 10 have complated with the Hollywood Dang-

4. is have been working os S. Glay William, President of the

aratic Counti Sec for a half-here radio program ori Leating on the
feat Coaat at 7 - Sustam Tax Man, OTHER this lue Natwork.

Asmolda Tobacco Company. William is now in a receptive frame of ind
and will have lunch oarly next woold with White. From there we will fan
out in the tobacco industry.

the first 20 sinutes will be = transfination of world accuraty

with 4 east including Walter lette Davis and Olivia da

Cavilland, The Last 9 rdinatos all be even to un for a speeds

on retto foods eden all the incortance of Cresson

5. will Harga called together 24 of the top people in the novie

a job and

industry in New York last Washmaday night. White

Goods in the world security picture miss Jusa Surt ones

in vent docator learns to sales that speech. Harry milto unit that

to shon. Health aplandid selling Harry they are ready went to up & and to work. talked

you will Issued methor or not in should to appropriate and how.

(I tidak it to best to have the timat conservativo speaker
on title Tragas. the is being vary thoody next will not
sale Table or Allow.)

2. The and will in 4 corporate untition out

Sandays The uniness and Distustry for rettos

Officer have bost openal in the Happevelt Hotel in Love 2016.

sufficiant funds have been provided for 0000 name. Louis 11.1%
who was to come in har% an not state, - cigare divorted to Stand York

to serve as Executive director of uses (291) A property DAR
drains 42 Mich is accellent. its are with saying to increase an the
Inviting Consultion, and will peral out 1,000 tolegraut ast lates

than . resid from today to invite a select list of 125.3 to
join. It Lm probable Was Vairlass, President of the . Steal Corporation, will serve as delivere. I have talka to Tairloss about cretion Moods and - is favorable. - dora to

Dose Orleans to seet its assi vest to clinah the deal. Qtopes MISS

I an colleving - on this Monday and Tuesday and will get these people

active In a number of ways. hope to get all of them into the Business

C

Banta Committee and to have than entertain members of Congress at a

reception

in

Washington,

at

which

time

they

will

-

with

the

help

of

none of the stare - tell the Congressment how and why they are for lirettos
Woods. There are many other ways in which they can be helpful.

6. 1 have followed up with the small basiness contacts add at
Harry NaverLoke moeting last week. One specific thing has grown out
of this already. The House Scall Business Committee is holding field
hearings in cleveland, 31. Louis and Chicago. At our request, they are
going to have outstanding small business people from those committee

testify on the importance of retton Goods to mall business. Than, the
relation of the legislation to the problems of that group will be highHigh in pablicity anameing from those commities and not from
Washington
Those hearings are being held in St. Louis and Chicago beApril 24 and 27.

are expected to parking in the Laviting Consittee 42% Charles

7. 4s have arranged with Americans United to call together the work=
in heads of various organizations who have expressed favorable reaction

Busst of Stowning Lives, and others.

particular, toward the Louse Committee. Lacford and I will discuss

3. Wilmon of General Electric, 2111 Crocker, President of 124
Greeker National Unit in San Transince, Mr. Ballis of General Mills,

The first official not of the Consittee will be Allypaid ads in State York and challenges You will resell

year suggestion was - as Nolam, famerly for

to reston goods - with a view to coordinating their efforts and, in
strategy with then on Todnesday afternoon of next veak.

(

45

-3
0

8. As 4 result of a neeting Demotain and I bad with @0040 fifty
members of the Advertising Consisted on Public Affairs in (Few York,
that consittee has prepared copy for a very fine paspilate on Stretton
Woods, and is working on a number of other items which they will wake
available to any organization wishing professionally prepared material.
9. 20 you logon, 1 cancelled your appearance on Mary Margaret

radio program next Twenday. This does not preclude your going
on at sousa later date, as they are most cooperative.
10. We have arranged for # number of speakers on retton Woods at
meetings in various cities.
11. The fictions2 broadcasting Company is divarting its program,
Up Averica® to a debate on Crotton Goods on Sunday, April 15 at

a - 6:30 Pall. Class Pepper will debate Senator Tafl. so are giving
Papper scull proutice next ruck.

22. I an avelostas the first International Latex is which is appear-

And in as between yestering, April 6 and next Thursday,
April 22.

13. It say interest you to know that the Denocratic National Committee
reports that they have prontaus from Congreadown Baldwin and carry that

that will not approve linetton Mooda in the Committee or on the Floor.

This is a result of considerable prospero brought to bear in a number of
ways.

14. I thought you would like to know that the title of Frank Cervasi's
article on Gretton foods in Collier's magazine - to appear about 5 or 6
weeks handa - will be "Bretton 30018 or World Mar 1117" Tide will be
the leading article and will be listed on the gover of the magazine.
Sincerely yours,
Sandal

II

Bherry
2. Leroy

Honorable New Morganthau, Jr.
Hotel Shortson Pleas,
Daytona Mouch, Florida
Zaclosure.

Preventing Future Wars

BRETTON WOODS
New that the Allied armier are sweeping through

to plan the political machinery for preventing agree
sion

Germany now that the war is Europe is being wom
and victory in the Pacific is assured

is is time to

prepare for peace. For victory alone is not enough we learned after the last war. Not only must the war be

won, but the peace must be built it must be built

And that is why, at Bretton Woods we joined in
planning the machinery for expanding world trade,

for amuring prosperity, jobs, and security for all
peoples.

The Bretton Woods agreement calls for two things.

solidly, built to endure.

It calls for . World Bank through which the United

After the last war, we fell down badly on the job of

building the peace. We did not work out effective

Nations undertake to guarantee approved private
loans for economic reconstruction, and to make direct

political machinery to call . halt to political aggree
sion And we did not construct economic machinery

loans when circumstances require it. And it calls for
. Monetary Stabilization Fund to stabilize the nations'

to create . would basis for world prosperity.
Because we lacked the machinery for joint economic

action, each nation of the world was forced to strive
blindly for itself. World commerce was soon poisoned

with national jealousies and national sharp-practice
The marts of trade were transformed into arenan of

currencies in their relations one with another, and to
provide for the orderly adjustment of those relations
through joint action.

The two Bretton Woods proposals are of vital im
portance. They lay the foundation for world trade
and world prosperity. More than this, they testify to

economic warfare.

the determination of the United Nations to work and

The deterioration of world economic relations
the collapee of foreign investment, the wifish manipu-

lation of national currencies, and the disintegration
of international trade into primitive barter

these

things did not by themselves bring on the second

live and do business together in peace no less resolutely than they have fought together in war.

It will do this country and the world little good If
America turns its back on political isolationism only
to continue in the path of economic isolationism Po-

World War. But they did set the stage for it.
And this was only the first stage. Economic conflict

political aggression war, in all its stragery and

destruction these followed inevitably one upon

litical collaboration political friendship between ne
tions cannot long endure if in their economic relations
which determine the work. wealth, and happiness of
mankind-nations act on the principle of dog eat dog.

the other.

That is why we business corporation submit that
Our Second Chance

it is in the interest of every man, woman and child in

of lasting peace. Weall know there will not be third
That is why we have joined the other United Nations

-

this country, and in the interest of world peace and
security. that Congress ratify the Bretton Woods propoeals without delay.

Presented AS A PUBLIC SERVICE by
PLAYTEX PARK

INTERNATIONAL LATEX CORPORATION

*

Today we have . second chance to build a structure

DOVER, DELAWARE

PAID ADM VERTISEMENT BUT MORE WAR BONDS

I

head
TREASURY DEPARTMENT
WASHINGTON

April 7. 1945
TO:

Secretary Morgenthau

FROM: = 1. Fussell
Subject: Bar Loan Promotion Material

After consultation with Mr. Geable, Mr. Lane and others
in War Finance, I is moving in an exploratory way to get certain
data which I believe will be useful in promoting the Seventh War
Loan.

1. A series of specific questions deeling with Okinews
and Two Jim operations has been drews up is Mar Finance. These

questions are all or virtually all directed to the Navy. I have

accordingly taken the liberty of drifting . proposed letter from
you to Secretary Forrestal, to go with the questions, if you approve. (A copy of the list of questions is also enclosed for
your convenience.)

2. More than . half million American homes have received
telegrans that members of their families have been wounded in

action. It seens to no that the care being given these wounded
non, the retraining of those who are permanently disabled and the
benefits that are provided for discharged veterans generally provideo one of the most appealing thesea for purchase of Nor Bonds.

I think probably the best way to present it is to show what happace to some individual G. I. Joe from the time he is wounded.
It might be presented in . major speech by you or in a radio

dranstination or otherwise. Immediately I as just moving to get
together what material is already available. If this proves insufficient, letters to the Secretary of Mar, Secretary of the

Navy and/or the Veterana Administror may be indicated. I an not
suggesting this action yet.
May I include my hopes for the speedy recovery of Mrs.
Morgentheu?

MICROFILM

MICROSTATI

PRECISION

APR 11 1945

APR 11 1945

Dear Jim
Dear Jim:

A you know, the Two Jim operation is providing us
the these for the Seventh Bar Loan Drive, and of course

A. you know, the Iwe Time operation is providing us
the these for the Seventh Ver Loss Drive, and of course
your Okimin operation is providing the immediate spot name

your Okinews operation is providing the immediate spot news

from the Puelfie, and very heartenine news indeed.

from the Facific, and very heartening news indeed.

I would like very such to present, during the Drive,
as many feets as possible, relating to the cost of these

and any other current operations, with . view toward show.
inc the people just why their dollars are needed by the

Government, and how Tax Bond dollars are being spect.

The For Finance Division has (mited a series of seecifie questions, which I as enclosine. one group of questions dealing with Oklness and the other with Iwe Jime.
I would appreciate whatever data you and give us.

in answers to
or I realize that two very

I would like THE much to present, curine the Drive,

US may feets as possible, relating to the cost of those

and and other current operations, with view toward showing the people just why their dollars are needed by the

Government, was how Tap fland dollars are being spent.

The for Finance Division has (mited a series of specific questions, which am enclosing. one group of questiona dealing with Okinown and the other with INO Jime.
, would appreciate whatever date you one give us,

either in specific namers to these particular questions,

or athenise. realise that two very different feetors

are to may of current

are involved in many of these questions - one the current
excenditure, the other the capital Investment represented

in shipe and the training of no. And of course the after

cost of committee and veterans' benefits are also involved.

For this reason do not west to be arbitrary in saking

that every question be reserved estacorically. But the more
specific and current the information 10, the mere help 11

either otherwise. involved specific these these questions -- particular different one questions, the factors

expenditure, the other the capital investment represented

in whipe and the training of - And of course the after

cost of annualties and veterans' benefits are also involved.

For this reneal t do not west to be arbitrary in asking

that every question be answered categorically. But the more

specific and current the information 1s. the more hels it

will to in selling For Bonds.

will be in selling For Bonds.

Sincerely
Sincerely
(stemed) Sents

(Signed) Easty

Hanorable James Forrestal
Secretary of Navy
Washington, D. c.

James Forestal
Secretary of Mary
Tuestington, D. C.
LICENSE

L/7/L5

4/7/45

PRECISION

MICROFILM

MICROSTATE

ROLL NO.

51

APP 1945
APP 11 1945

Dear Jins

our Jint

is you know, the Ive Jine operation is providing us
the these for the Seventh Tar Loun Drive, and of course

As you know, the Ivo Jimm operation is providing us
the these for the Seventh Tax Loan Drive, and of course

your Okingon operation is providing the Insodiate spot name
from the Pacific, and VIET hairtening news Indead.

your Okinues operation La providing the Invodinte spot from the /notfic, and very haurtening news indeal.

I would like very much to project, during the Drive,
GS may facts as possible, relating to the GOOS or these
and any other current operations, with view toward showInc the people just why their dollars are addition by the

I would like very such to present, during the Drive,
us many fasts as possible, relating to the cost of these
and any other current operations, with view toward showlag the people just why their dollars are needed by the

Government, and has Tax Total dollars are beine spect.

Government, and how Tax Send dollars are being spent.

The Fax Flanne Division has drafted a series of apecific questions, which : an enclosing. one group of ques-

The But Finance Division has crifted a series of ape-

cific questions, which as scaloning, one group of ques-

tions dealing with and the other with Imp Jine.

tions dealing with Okinewa and the other with Iwe Jine.

I youth appreciate whatever case you our give us,

I would appreciate whatever date you can give us.

the is specific adidas to these particular questions,
or otherwise. I realize that two very different fuctors

either is specific annuars to thene particular esections,
OF otherwise, I realize that two very different factors

are involved to ma of those vestional - one the current
mediture, the other the capital investment represented

is miss and the training of - And of course the after

are involved in anny of these questions - one the current
expenditure, the other the canital Investment represented

cost of committee and voterana' benefits are also involved.
For this FOLLOW I do not sast to be arbitary in making

cost of annualties and voterana" benefits are also involved.
For this receive I 00 not want to be arbitary in making

Met over cusation be compres estagorically. But the
specific and current the Information is, the more hel 11
will to is selling Far Bonds.

in ahipa and the training of sm. And of course the after

more

that - question be enswered entegorieally. But the more

anoeifie and current the Information 10, the more help 11

will to in selling Far Bonds.

Sincerely

Sincerely,
(Signed) Henry

(Signed) Henry

James Forrestal

Honorable James Forestal

Secretary of Navy
Teshington, D. C.

Secretary of Navy
Washington, D. C.

C

UNITED

4/7/L5

0

KBF1WN

LMILS

PRECISION

TRADE MARK

MICROSTATA

MICROFILM

ROLL

OKINAMA INVASION

3

Assembling of shipe for the Okinews Invesion started months ago.

1.

Rehearsals for *L-Day* (Investor Day) took place at bases thousands

APR 11 1945

of miles apart and thousand of siles from the Ryukyus. Now much 414
these so-called *rehearsnis" cost?

Nine-meeper fleet cleared 2,500 square miles of ocean off the

2.

Dear Jim

west coast of Okinewa. (Note: According to reports, not a transport

As you know, the Iwo Jim operation is providing us
the these for the Seventh there Loan Drive, and of course
your Okinews operation is providing the imediate apot name
from the Pacific, and very hourtening news indeed,

or cargo ship was hit by nines on "L-Day1") Cost of this nine-sweeping
operation?

I would like THEY much to present, during the Drive,
as many facts as possible, relating to the cost of those
and any other current operations, with view toward showInc the people just why their dollars are needed by the

The Kerane Islands were captured on March 26th where heavy artil-

3.

lery was emplaced to support the rain landing on Okinews. Coat of

Government, and how For Bond dollars are being apart.

taking the Karanna?

The Sup Finance Division has crufted a series of specific questions, which I an enclosing. one group of questions dealing with Okinews and the other with Iwo Jine.

Softening-up of Okinews's air and naval strongpoints started on

4.

I would appreciate whatever date you our give us.

March 23rd. Correspondents report *1500 tons of 16-inch shells were

either in specific answers to these particular customs,

or otherwise. I realise that two very different factors

fired into gun explacements and industrial area virtually wiping out

expenditure, the other the capital Investment represented

the town of Ninstogs" on March 26th. How much did it cost to wipe out

cost of essualties and veterans' benefits are also involved.

Elistoga? How much to neutreline Okinewal

are involved to may of these questions - one the current
is ahise and the training of mm. And of course the after

For this reason I do not went to be arbitary in asking

that every question be enswered outegorically. But the more

speet and current the information 10, the more help 11
will be is selling Tar Boods.

A fleet of 1400 veesels, from battleships to leading ships, went

5.

close to shore to aid in establishing the benahhead on "L-Day." Cost

Sincerely,

of maintaining this fleet for one day? Cost of building this fleet?
(Signed)
6.

Menorable James Forrestal

vital part in solving supply and repair problems. "Service Squadron 10"

Secretary of Marry

Teshington, D. C.
C

SERVING

4/7/L5

(a) Mobile Naval base - Navy's "secret weapon" - is playing

,

INC JIMA INVASION

-2comprises several hundred ships of all types -- ammunition, repair,

1.

The Iwo Jim invasion gave the "Mighty Seventh*

floating dryclocks, oilers, water tankers, hospital and barrocke shipe.

for Loan Drive its these. The total cost of this in-

Amount of investment representing in this armada?

vusion would be very useful to us. Also the tounage
of the verious supplies used - ammunition, fuel, food,

(b) Reports say 50 per cent more fuel is being consumed at

median1 supplies, etc.

Okinawa than in any other single previous operation by the U. 3. Navy.
More than 600,000,000 gallons of fuel oil were required to get the

amphibious force to objective. Cost of fuel oily Differential in
cost compared with sine quantity for use in Atlantic?

2.

The wounded from Imo were transported almost 7000

miles by 800 and air to Alee Neval Hospital Pearl
Harbor. How much did it cost per san for transportation?

(a) Planes will use gasoline to the capacity of 16,666 trucks
and trailers. Cost of cas?
(a) The task force ships were loaded with the equivalent of
1500 freight ears of ammunition - 2600 tons of food. Reports bring
this tomage down to community level - "food would provide the entire
populations of Vermost and Wyoming with 3 seals a day for 15 days, and

medical supplies enough to provide 60 days of treatment for population
of Columbus, Ohio. More than 1200 pints of whole blood were flown to

fleet units."
Total coat of supplying the tast force? Cost of components -ammunition, food, medical supplies? How much did it cost to fly the
1200 pints of blood from U. 3. port to objective?
How much did is cost to transport supplies to Service Squadron 10"
from United States?

Next stop towards home, San Francisco, about 2300 miles.
Cost to transport wounded ass from Pearl Marber to San
Francisco

MICROFILM

57

-2April 7. 1945

C

4. Imbin presented his document, which is attached, and read
the document through pointing out those provisions with which
there wan disagreement between himself and State. These provi-

relateto
the considerations governing the period of time
sions
and the amount of recurring reparations. Lubin said that he

OF 10sting a REPARATIONS

favored a long period of time with small annual amounts whereas
State favored a short period of time with larger amounts.

1. There was D meeting today in Clayton's office nt State at
3:30 D.D. to discuss the Instructions to be given the United
States representative on the leperations Commission. Those
attending the meeting included:
and Lathringer.

Yes -

Generals Hilldring and Draper.

Havy

Francis Downey.

FEA -

Jaces Perkins.

Treasury -

mite, Glasser and Du3ois.

White House - Inadore Lubin.

(

Clayton opened the meeting by asking whether anybody had

a document to present. Lubin sale that he had doeument which
he had been working on with the State Department, specifically
the names of Mason and

mentioning
Hebetween
said this
there
document
seemed
to be general Durre.
agreement
him
and State
on
with such exceptions no he would indicate.

3. Clayton then suggested that the should first be
read through in Its entirety and that tie should then read the

by paragraph for comments and suggestions.

cold he

White, memorandum at this paragraph point, that thought it night be this n. road

idea If, instead of trying to reach an agreement at Meeting

on this document. which many of those present had not yet seen,
the representatives of the various
agencies
takeamenias.
the
respective
their should
it
document

with

Ing is n brief summary of the major points of discussion.

Clayton, Mathews, Memon, Dupre

State

2.

6. Clayton then proceeded to read the document through paragraph

by paragraph and comments were sade on each paragraph. The follow-

them

and

PO

over

in

Another meeting could then be arranged to consider the document.
Clayton said that be thought it would be useful if we could
comment on the document at this meeting and have another meeting
to finally consider the document. It was generally agreed that
this procedure would be followed: with the understanding that no
agency was making any final consitment at this time.

6. There was considerable discussion concerning the meaning of
the following sentence in paragraph 71

()

"The peoples in the devastated countries of Europe
shell be even priority over the Germans in the determination
of the standard of living, notal thstanding the effect of such
priority on the standard of living in Germany."

It and finally agreed that in the place
of this sentence
wethe
would
statement
upon
been
had
substitute

the

principle

which

agreed

in

of United States policy on Germany enproved by the President on
March 28, namely that no action should be taken to support basic
living standards in Gerasny on n higher level than that existing
in any one of the neighboring United Nations.

7. Treasury objected to the following sentence In paragraph 7:
*Sneelfie arohasis should be given to the controls
Lanosed on the posulations of these zones so as to insure,
so for as possible, that the burden of bearing the cost of
reparations through taxes and other devices shell be
distributed annual the various groups in the population
in accordance with their ability to pay.

After considerable it was finally agreed that this

centence should be left out of the Reparations document although

Clastos rade It clear that State felt that It would be necessary
to Institute some form of rationing. He argued that if we were
going to keen the living standard of the German people at a low
level and not higher than that of any of the neighboring countries,
it use necessary for us to see to It that part of the German

-3-

C

population were not eating well mille at the same time another
part of the Gorman population was practically starving. The issue
was reserved for consideration in connection with the economic
directive.

C

desolte the fact that, as was pointed out, such a provision
had been contained in the Reperations Protocol.
10. It 12.5 agreed that Lubin would redraw the document in the
light of the comments made at the meeting and would circulate
the document to the various agencies for consideration at the
next meeting. The next meeting - arranged for Tuesday, April 10,
at 3:30 Pelle in Clayton's office.

8. There was considerable discussion of paragraph 12 of the
document presented by Lubin, which provided that this Government
favors as long " reparations period BE possible with ansual
recurrent payments as small an possible. Treasury supported this
position strongly while State, particularly Unoon and Dapro,
opposed this position. .Mason nade the specific point that
who undesirable to have reperations extend over a long period of
time Insancol as it would be nonessary to icaes occupation troops
In Germany in order to collect such reperations; that e did
not want to keep United States Groops in Germany for 25 or 30 years;
and that it would be politically undesirable to withdraw United
States troops from Geruary while Russian troops still remained
in Germany. Treasury pointed out why It WAS desirable to have
reparations in as small annual amounts an possible instach as
by so doing we would avoid the desendence of the recipients of
reportions on Germany and could ivoid rebuilding the German
economy. Treasury also pointed out that If reparations were
collected in mall amounts annually this would not require maintenance of troops in Germany to collect such reparable one; and that
in connection with the question of the maintenance of troops in
Germany there were other considerations for more important than
reperations which would deteralas the length of time during which
such troops were kept in Germany. Clayton finally suggested that

ges

Josish E. DuBois, Jr.

Attachment.

no definite statement be cade is to the length of time or relative
accounts of recurring proparations and that no merely Announce a

statement of principle to the effect that recurring reportions

should be fixed so == to svoid the dependence of the recipients
an the German economy and to the to avoid the building 10 of the
German economy.

9. With respect to paragraph 15, which provided that to the
maximus extent possible reparations should be taken frea the
national mealth of Geruany existing at the time of collepse and
which specifically included "shares of industrial, transport,
shipping, and other enterprises in Germany", Treasury suggested
the elimination of this quoted portion of such paragraph. Treasury
pointed out that this would permit the Uni ted Nations to take
ownership of German factories instead of removing such factories
from Germany and stressed the danger of such a procedure. There

was general agreement that this quoted provision should be deleted,

59

-4-

58

0

(

60

61

TOP SECKET

SECENT

I

-21. It was agreed at the Talta Conference that Germany west pay in kind for
5.

(c) It is the policy of this Government that the reparation

the lesses caused by her to the Allied Nations in the course of the war. The
burden shall be distributed insofer as possible as to impose equality of
primary purpose of the Reparation Commission should be the formulation of &

sacrifice upon the populations of each of the sones under the control of the
general program for the exaction of reparation and the establishment of the

respective occupying nations.

policies under which program is to be implemented.
6.

2. The principal interest of the United States is to assure that the

(d) This Government adheres to the principle exunciated in the

Talta Declaration of February 12 to the effect that

reparations program shall not jeopardise the economic and security objectives
"It is not our purpose to destroy the people of Germany,
of this country with respect to Germany. The position of the United States

but only when Nasism and militarian have been extirpated will

$

on the various issued involved may be susstrised as follows:
there be hope for & decent life for Demans, and a place for
(a) This Government favors . reparation program which would esult

3.

them in the comity of nations.*

in the elimination of industrial capacity in Germany considered to be
Accordingly, the reparation exections imposed upon the German

dangerous to the security of the United Nations.
4.

(b) This Government favors a reparations policy which should aid

in strengthening and developing industries in the devastated countries
of Europe, including assistance to the liberated countries and other United
Nations to expand their foreign trade. They should also be fixed and

people should be such as to leave them with enough means to provide . low

subsistence standard of living for her population without outside relief.
7.

(e) The peoples in the devestated countries of Europe shall

be given priority over the Germans in the determination of the standard of

living, notwithstanding the effect of such priority on the standard of living

distributed so as to increase, as much as possible, the living standards of

in The level of the general standard of living should be the same
these and other countries.
TOP SECURT
TOP SECRET

62
TOP SECRET

-3for the German people in each of the sones under the control of the Allied
armies of occupation. Specific emphasis should be given to the controls

/

63

-4they are located. Such requisitioned goods and services shall not be considered as reparations. All goods exported free Germany shall be considered
as reparations.

imposed on the populations of these sones so as to insure, so far as possible,

(3) In order to avoid the dependence of the recipients of

12.

that the burden of bearing the cost of reparations through taxes and other
reparations on the German economy for their economic existence, this Govern=

devices shall be distributed among the various groups in the population in
ment favors as long & reparations period as possible, with annual, recurrent
accordance with their ability to pay.
payments as small as possible. These annual payments should be so arranged as

(f) This Government opposes any policy of reparations which will

8.

to taper off toward the latter part of the reparations period.
C

put the United States in . position where it will have to assume the sua13.

tained responsibilities for relief to the German people.

(k) The United States reserves to itself the right to claim

reparations from Germany to the extent of

billions of dollars.

(g) Payment for such minisus German imports as may be determined

9.

The United States will not wish to receive its share of reportions in the
to be essential shall receive priority over reparations. This Government

form of labor services. It desires that labor supplied by Germany to meet

opposes any reparations policy based upon the assumption that the United

the claims of other countries for reparations shall be recruited primarily

States will finance any reconstruction in Germany.
from Nest groups, officers of the Wehrnacht, the Gestage, 53 organisations

(h) It is to the interest of the United States to see that the

10.

and those elements of the population who have cooperated in financing and

payment of the costs of the occupation of Germany shall receive priority over

building up the Hazi machine.

reparations.
0

11.

(1) In requisitioning goods and services, priority shall be

--

given to the needs of the occupying forces, irrespective of the zone in which

14.

(1) The governments participating in the Separations Commission

will retain control over the disposition of German property located within

64

-5-

65

TOP SECHET
TOP SECTION

their respective borders. These nations will seek agreement with other
in paragraph 15(a), recurring reparations, over a period of years, should be
countries in which German assets are located designed to eliminate continued

1. As small as possible in relation to the reparations to
German control, or the eventual return to Germann, of these assets.
be paid in the form of industrial plants and equipment.

15. To bring about the realisation of these policies, you should undertake
11. Primarily in the form of natural resources, such as
to secure an agreement in Mos cow on a program embodying the following

ooal, metallic ores, timber and potaah, and not in
specific objectives.
the form of manufactured products.

(a) To the maximum extent possible, reparations should be
16. It is recommended that one of the first tasks of the Reparations ComC

taken from the national wealth of Germany existing at the time of collapse,
mission shall be the establishment of the necessary machinery for the
including the removal of industrial machinery, equipment and plants,
allocation of such comodities and equipment for renoval from Germany as

particularly the shipbuilding, metallurgical, electrical and chemical
are not essential to the maintenance of the armed forces or to the conditions

industries (including all industries producing oil and oil products, synthetic
stated in paragraph 6 above. Immediate provision should be made also for
nitrogen and synthetic rubber), ships, rolling stock, German investment abroad,
the allocation of German holdings in neutral countries.
shares of industrial, transport, shipping and other enterprises in Germany.
Records should be kept of all deliveries made on reparations account

(b) To the extent that reparations are collected in the form
under such interis arrangements and such deliveries should be made without
of deliveries of goods OVER a period of years, such goods should be of such

prejudice to the final allocation of reparation shares.
a nature and in such amounts as not to require the maintenance of the German
war potential or the continued dependence of other countries on Germany after

reparations cease. Accordingly, after the removal of such item specified
TOP SECRET

0

TOP SECRET

66

TREASURY DEPARTMENT
(2)

Washington

ASSISTANT SECRETARY

April 7, 1945
FOR THE SECROSTARY:

an Under Secretary or

General Clay ASKS for/un Assistant Sicretary. I don't see
how it is possible to comply with his wishes.
It socar to no that the best arrangement would be to have
Colonel Bernstein taken out of uni form and back into the Treasury

as an Assistant to the Secretary, and assigned to the position
General clay has in mind. I don't know whether the Army would

be agreeable to such . step, but certainly if what they are

looking for is a ran who could do the job, Colonel Hernatein,
in my judgement, is the bent one available.
A second suggestion, which might be acceptable to the
Army, is Handolph Paul. AT former General Counsel of the

Treasury and an expert on tax matters, he would be aa qualified
as many of the nanes which the Arro has suggested from time to

time. The could, of course, provide him with competent technical
assistants.

The only qualified persons in the Creasury who would be

available are Harold Classer or Bill Taylor for the position
which General Clay has in mind. General Clay might not regard

then AS having sufficient prestige but in by judgment either

one could do a better job than persons the AFRIC has suggested
in the past.

HOW

68

TREASURY DEPARTMENT

C

ROBERT E.McCONNELL

...............

WASHINGTON 25

AKA/YONN

The Plains, Vs.
April 7. 1945

April 7, 1945

Middleburg, Va. 160

Henry Morgenthsu Jr., Secretary of the Treasury

To:

Sheridar Please Hotal

Secretary Morgenthau

Datone beach, Florida

From: J. W. Pohle

Dear Mr. Secretary:

I an very DOFT to haur from Pitz this morning that Kra.
Morgenthai is 11 and I sincerely hore she will have ND early
recovery.

The following is 0 summary report of several
investigations currently conducted by the Procurement

Yeatorde 1 NEW Knior Genaral Gle in weshington just
before he took off for Europe. He has divided his control

Division. The present procedure is to refer matters
requiring investigation to Mr. Irey's office, accom-

group into three divisional Military, Political, end Economic.
Ench ermy officer will have . civilian fr = industry is -Item
nate on deputy. I - anclosing
the tantativo
orgenigation
Brik. Genaral William Desper
Divisions
Economic
the
for
obser
will be chief. Clay sakad as to not a Draper's deputy in

Germany, or no onior of the Hear Kehelon in Washington. In
any event be maked to to help immediatel, in securing the rapor

0

staff for the Economic Division. I think Clay hopes I will

tions that office will be in at position to undertake
investigations affecting the Procurement Division. This

go to Germany for A year or so 0.0 Civilian Deputy of the Soonomic Division.

1s agreeable to Mr. caston, Charles Bell and Elmer Irey.

1 - enxious to est your judgement not edvi in the
matter before meking on commitments. I also felt you might
have and suggestions as to procedure. While neither
Drepar said as much, I gether that the For Department is disappointed in the progress to date (or the promises for the
future) that F. b. A. is showing on this job.
It is possible that interpretation of broad policy state.
ments will be left to the judgement of this Arm, Group and
therefore it is important that the mon in the top coaitions

Eugene Puhl

An investigation into the sale of surplus commodities
by the Procurement Division's Chicago Regional Office resulted in the suspension of Eugene Puhl, a salesman employed

by that office. It appears that Puhl effected sales of
various surplus items, particularly automobiles, to persons
upon forged requisitions purporting to be issued by officials of townships in the vicinity of Chicago. The funds

have ability, judgement. and daterm nation tomaize n thorough

job if it this time.

1 shall be with Drapon most of next week it the Sr.

for the purchase of these items were furnished by Puhl and

Department and hope to by able to 200 you soon.

his associates who resold the property at a profit. In
some instances, the officials collaborated with Puhl by

Sincerel/ journ,

Minnell

REM NEW

Encl. 1

panied with all available information, and recommending
the course which the investigation should take. It 18
contemplated that when personnel 1s recruited to staff
the recently created Office of Complaints and Investiga-

0

issuing requisitions in the name of the township and converting the property to their own purposes. Excluding the
factor of collusion by Procurement Division employees, this

70

-2case presented the problem of checking the authenticity of
requisitions for surplus property by Government agencies

-3Sparks E. Bonnett

or

persons entitled to a priority thereto, and establishing a
procedure to assure delivery to the proper authority. This

This individual recently resigned at our request

has been done.

as Deputy Regional Director of the San Francisco Regional

Charles H. Kerr

were chaotic. Subsequently we were informed that he had
accepted a fee in procuring the award to a Los Angeles

Office, when we ascertained that conditions in this office

firm of certain oil filters offered for sale by the San

The investigation herein raisen the question of the
propriety of a Procurement Division employee acquiring
surplus property from the individual who had purchased it
from this Department. In this case, Mr. Kerr, a price
analyst then employed by the Fort Worth Regional office,
purchased two tractors at a slight increase in price from
the original purchaser of these machines which had been
sold as surplus by the Fort Worth Regional Office. Kerr

Francisco Regional Office.

Gilbert R. Endicott

This investigation resulted in the suspension of a
marketing specialist employed by the Denver Regional office

for his failure to satisfactorily explain over $2,000 of

bank deposits received from unidentified sources within a
five months' period. Mr. Endicott refused to submit to
further interrogation after certain statements he made in
connection with these deposits were found to be false.
The investigation is continuing and the suspension by this
Department forestalled the employee's transfer to another

resold the machines at a substantial profit. It appears

that the purchaser from this Department was the high bidder
at a "spot sale. However, the purchase by our employee
under these circumstances is highly suspicious in that he
was charged with pricing the equipment and his purchase at

a slight mark-up savors of collusion. This investigation
1s still under way.

Government agency.

Sale of Surplus Property Pursuant to Certificates of
Necessity Issued by Another Agency.

The above cases indicate the necessity of constant
vigilance to anticipate a certain degree of misconduct by
personnel in the Department. TO minimize this problem the
Procurement Division has promulgated certain standards of
deportment to be observed by employees in the conduct of
Government business. One of the functions of the office
of Complaints and Investigations is to keep our house clean
so that the public will have confidence in dealing with the

The Kansas City Regional Office recently sold certain
items of surplus machinery to a dealer who presented a certificate of necessity issued by the Smaller War Plants
Corporation. Investigation disclosed that the dealer, instead
of putting the machinery to essential use as had been represented, is selling this equipment to the general public at

a very substantial profit. We are investigating our pricing
procedure in this case and particularly since one of our
officials apparently purchased a car from the same dealer
to which Procurement had sold such car.

C

Department.

PRECISION

MICROFILM

TRADE MARK

ROLL NO

72

TREASURY DEPARTMENT
71

INTER OFFICE COMMUNICATION

O

DATE April in 1945

-4Secretary Horgenthau (For action)

TO

A typical illustration of fraud and criminality by
purchasers of surplus property WAS uncovered by the invos-

Subject: Entry of National City Bank people into Philippines.
and
: suggested that you telephone Secretary Stottinius

tigation in the Panco case. The officials of Panco falsely

represented to department stores, trade associations and
others that they were designated by the Treasury Department

1.

11 Indicate to him that you would appreciate having the State
Department refuse to grant passports to private banker@ to 60
to Manila until such time as General NacApthur has given
permission for Tressury personnel to 100 forward.

as exclusive agents to sell various items of surplus; that
they had posted a bond with the Department to insure performance on their part; and that they had consumiated
numerous sales in that capacity. They published and cir-

of

267, State and Treasury Departments and the Joint Chiefa the 1== of

2.

Staff now have under 0004 ideration the question City
mediate departure for the Philippines of six National
Bank people in order to re-establish in Kanila a branch indi- of
the National Gity Bank. General NacArthur has already and
eated illingmead to allow the Incediate entry into Manile

cularized among their prospective victims price lists of
various commodities which were in fact plagiarized from

Army catalogues. When the Panco representatives discovered
that they were under investigation they attempted to avade
questioning by Mr. Irey's agents and It is now believed

that their activities in the field of surplus property

of the National City Bond people (Sin. Le Isuna

of one queried to the Joint Chief: of Staff on the

is now being 12c have received indications that 11 the Theater

0

others. grants 1720 necessary military permits, the State
Department Consancer will grant passports to these people which would

have collapsed.

C

Mr. Coe FC

FROM

paralt their immediate departure for Knile.

1000.
No have DOOR informed informally by the War Department the that

:

General RecArthur Issu refused to live permission for
immediate departure of Treasury personnel to the Phill
are FLOS draftin 0 strong peply to be sent to General
+0

will

which will clearly indicate the which

created for the Wheater Consunder 11 private banks are

De to roopen prior to the re-establishment of Foreign of
allowed office. General LiceArthur will be informed
Duala Control complex Treasury regulations which have to be
the many and revive banking business 10 reauned.
enforced 02 soon U:10 watte. with the Philippine Commonwealth
have discussedthey
eiree on the need for the immediate FOR
No

of

and

authorIties opening of our Foreign Funds Control office in Kanila.
1.

There is no urgent need for the peopening of private banks
time vince the Commonweal th Governie at is making

at this benifing facilities available by the establishment
temporary of a banking division in the Consonwealth Treasury.

0

0

74

-273

PARAPTHASE OF TELEORAL RECEIVED

In addition, Henderson 18 recommending more efficient

FROM: ,

AMERICAN E.BASSY, CHUNGKING

TO:

Secretary of State, Washington

check on government receipts and expenditures for which purpose

DATED:

April 7. 1945

he hopes to accure edvisors from America. Henderson seems

NUMBER:

585

confident that T. V. Soons will strongly back his recommendations

with the GeneraliseImo and will back more effective delegation

(

SECRET

of economic vowers than exists now. It 1s thought by us that
Henderson's visit has already served a very useful purpose

On the twenty fifth of March Leop Henderson arrived.

He 18 returning to the United States with T. V. Soong and will
probably have the opportunity to talk with Anbasandor Hurley at
Cario. Leon Henerson appears in very short time to havenumerous
acquired
and

and that his ability, energy and evident sincerity of purpose

gomorehensive and accurate picture of situation here and of/varied

Kearney, Adler

facets (facter) facing him. He is considering recommending to the

recommendations are sound and nerit our backing.

Generalissimo, as a result of his survey. that there be established
in the Chinese Government a powerful committee or secretariat on the
lines of the British Jar Cabinet secretariat or our OEM to guide

have favorably impressed all Chinese authorities encountered here.

The foregoing repeated to Cairo together with our
533 of the twenty ninth of March,

0

AICH

and coordinate proper activities of various Government agencies
such as Food Ministry and Communications Ministry (in connection

with transport control). This organization, as foreseen,
DC/L:KLG

would have an American of a stature similar to Henderson's as chief

4-13-45

advisor and competent American advisors for such fields as price

control, taxes, governmental budget and 80 forth. In connection
with price control, ve believe Henderson understands thoroughly

that there is lacking here, among other things, both the
governmental administrative machinery for operation of such control

and A-1 officiale, merchants and the public, the will to make
such controls work. The planned efforts of Henderson in this
a

O

direction may therefore be limited to some essential commodities
as suggested in meno summarized in our 533 of the twenty ninth of
In addition
March.

of Chinese VPB and Joyner conour that his

76

75

-2-

CABLE TO WINANT FOR MANN, LONDON, FROM THE WAR REFUGES BOARD

For your information following is text of cable Fo. 2045
dated April 7. received free McClelland:

vent after next total arreed being 20. They will be
operated by ensoline released to ICRC by SHAZF for V33

process first tank carload of which is already on route

"Additional to Ingention's 1988, April 6 regarding
ICHC's Division of Special Assistance's plan for truck-

from Marmeille to Geneva.

in relief to civil detainees in Germany.

*Our thirty tires and tubes have arrived and first
advance of Diesel oil (Legation's 1981, April 5) will be

*Five Renault trucks instead of six now scheduled

leave Switzerland April 9 for Lusback carrying 16 tons
relief goods and gamoline. This convey if feasible
will offload supplies at Bergen Belsen en route, ICHC

plans have these trucks remain and work out of Luebeck
distributing WHB parcels, shipped over from Gatebore,
to concentrations of detainees at Ravenabruch and

made to ICKC today. Herbert Kntaki in now in Geneva

acceleration arrancements with ICRC to take at least four
care trucks available for MICH shipments on basis tiree
and oil.

Hamburg-Netsengame. ICRC is now checking with Gatebore

-ICID informs se that in addition to above mentioned
trucks small convey of five wood burning Swiss trucks
belonrine to commercial transport concern of Breendli in

on number of VKB parcels already at Luebeck all of which

Basel will leave Switzerland next work in effort to get

committee hopes be able distribute area in question within
coming three weeks

through to Denmark to repatriate Swiss citizens there.
Braendli has agreed transport ten tons of relief goods

to

vomen's concentration CARD of Havenabruch for ICRC.

"Present street of Luebeck Hanburn area in antivated

by ICRC fear that this region may #000 be out off and by

fact that no tracks are at present available in that tone
for civil detained relief, Committee is accordingly

1

anxious send in more relief and means of transport to
distribute 11 before 11 1# too late.

"The four rueles which Stermbuch was fortunately

able to rent (Legation' 1740, March 23) left Switserland
on March 29 with ICRC assistance but headed for Theresien.
stedt rather than Bergen Belmen BE previously reported."

-Four more Renaulte with capacity of 3200 kilor each

echeduled depart April 12 or 13 for Dechase They will
also remain this area to distribute parcels to large number

THIS 10 V12 LOSTON CARLS ID, 66

smaller campe administered from Danhan,

ICHC further counts as being able this within next
tes days by rail to new ICRC debot at Revensube between
Swiss borter and Munica, balance of an roximately 50,000

was parcels remaining is Switzerland, Plan 1. then to
acre these parcels on by trucks as rapidly as possible to

accessible cares near Munich and to east and northeast

thereof mortioned ay 1988, This trucking will be done

with 11 more kenaulta which ICHO's DEA 10 due to receive

11:30 A.S.

April 12, 1945

78
PLAIN

Leader
NG-1242

Distribution of true
reading only by special
arrangement. (SECURIT)W)

Stockhola

Dated April 7. 1948

Dated April 7, 1945

Rec'd 4:30 P.A.

bec'd 2.45 p.m.
Secretary of State

Secretary of State,

Washington

Washington.

3575, seventh

1298, April 7, 2 P.R.

FROM KARL G. HARRISON

Report has been received from Evensen and Transal
covering their operationsLin Norway during February.

Through regular licensing facilities 675 packages were
sent into Norrey containing about 10,000 k.g. foodstuffs,
2230 k.g. of clothing and 350 pairs of shoes. Approxinately 28,000 k.g. of foodstuffs were sent in
through underground facilities, as well as shconsiderable amount of clothing, footwear and other material.

This is our 133 WRB. In addition the group sent in

through the underground about 2 tons of clothing and

other supplies for certain Swedish organizations. Apr
proxinately 1100 Sorwagians were brought to safety in
Sweden during February through underground routes

Department's 2576, April 3. 1945.
The director of the intergovernmental committee
on refurees earnestly requests approval of France and
Belgium projects (Manager's airmail despatch No. 20343.

January 12) already reved by British Government, and

also Spain and Pertual projects (Meansy' sigges

A-159 of February 17). I have studied these projects
carefully is conference with 100 staff and receased
they be approved without further delay. Funds carried

ever free 1944 practically sufficient to finance all
four proposals. Hust be approved by 100 executive

financed in partics American labor relief.

committee after British and American approval so further
delay will greatly handicap effectiveness of action.

Due to lack of funds aparations were necessarily
ourtailed during this period.

April 11. date of executive committee meetine.

Would be most helmful If approval could be received by
VINANT

Johnson
VTD

in

10am Chauncey (for the Sec'y), Cohn, DaHois, Caston, Hodel,
Butchison, McCornack, O'Dayer, Files

80

79
Ankare

-3- #473, April 7. S.P.S., free Askare

Dated April 7. 1945
Reg'd 11:43 P.M.

Secretary of State,
Washington.
PRIORITY

473, April 7. P.O.
Prior to the receipt today of Department's reference
cable 1 had discussed with Tereia Office, the British
Tebasay and the Syedish Legation the question of the
134 Jewish percent - board the BROTTRINGHOLM which 10
expected is Tetanbul es Monday. (REDIPTION 393, April
a and Lenden's 19. March 28)

Just prior to his departure en April 5 for the
San Francisco Conference as . member of the Turk

delegation, Actine Secretary General Bekin informed
- these individuals were embarked on the BROTTRINGSOLM

without prior notification to or the consent of the
Turk Government that far If any of them have any claim
to Turkish nationality: that the Turk Government would
probably net (repeat not) permit them to disembark free
the BROTTHINGHOLM even for . temperary stay is Estambul;

was informed by Sumor that the Turk Government is pre-

pared to permit the persons is question to enter Turkey
in transit If the British Government will undertake
to permit then to enter Palestine. The British Ambasseder informa - this afternoon that he informed Sumer
during their conversation last night that be would
telegraph to Leader (he has since done se) requesting

instructions as to whether the British Government is
willing to let these individuals enter Palestime under
the quota scheme. Peterson states .... of the persons
are German Jeve, some of other nationalities. No states

further be cabled to Lender - Mays age on this subject

and the reply be received did not ancourage his to believe these personal will be admitted to Palestine, 1

gather he feels reply free Leader may not be forth
casing immediately.

is view of foregoing Department may desire to

discuss this phase of the matter with the British
Government, had discussed this subject with
Secretary of the British Sabasay at the time London's

19 case received and Hearned the cable referred to above
by the British Abbensador had been east to Lessee The
Secretary premised I would be informed when reply was

received. Testerday the Swedish Minister informed -

that If the Turkish authorities declined to permit these

persons to disembark is Turkey all repeat all) Tarkish

and it night and then all back to Sweden free Turkey

nationals es board the sight be prevented

Arkin that I thought any such action on the part of the

free disembarking and takes back to Syedes along with

on the return veyage of the BROTTHINGHOLM. I informed

Turk Government eight have an unfortunate effect par-

the 134 Jewish persons concerned.

ticularly at this time. upon Turk-American relations is
view of the publicity is the United States press that

Repeated to Lender as 29.

would be sure to attend any such action its part.
In conversation yesterday with the Foreign Office
official who has this matter immediately is charge

450, April a) I reiterated to his the point

of view expressed to Sykia which be sald he shared,
H. stated the Turk Government had not yet destited

what position 11 would take with respect to permitting
these persons to last at Istembel.

I - the above mentioned patat of view last
evening to the ressab Ashessader before he see the
Action Tereign Minister with when he discussed this

matter. The Foreign Office efficial last referred to

above informs - this afternoon the Britten Ashassador

PACKER

JM

(

MPRECISON

- MARK

81

82
Bern

-2 * #2045, April 7. 6 P.S., from Barn

Dated April 7. 1948

Our thirty tires and tubes have arrived and first

advance of Diesel oil (Legation's 1981. April a)
will be made to ICRO today. Kerbert Katski is now

Rec'd. 10:10 P.S.

Secretary of State
Washington

2045, April 7. 6 P.S.
O'INTER or WRB FROM WOOLKLAND

Additional to Legation's 1988, April a regarding
ICKC'. Division of Special Assistance's plan for

is Geneva accelerating arrangements with ICRO to

make at least four are tracks available for VK
shipments on basis tires and oil.

ICNO informs se that is addition to above-mentioned

trucks . small convey of five wood burning Suiss

trucks belonging to commercial transport concern of

Breandit is Basel will leave Switserland next week

is effort to get through to Denmark to repatriate

Swiss citisens there, Braendli has agreed transport
tes tens of relief goods to woman's concentration

tracking relief to civil detainess is Germany.

CRED of Revenubreak for ICRO,

Five Resuult tracks instead of six new scheduled
leave Witsorland April 9 for Luebeek carrying 16 tens
relief goods and gaseline. This convey If fessible
will offlead supplies at Barges Belsen an route.

able to rest (Legation's 1740. March as) left Suiteen

ICRO plans have these tracks remain and work out of

Lunbeck distributing VEB percels, shipped ever free

The fourth tracks which Sterabue h was fortunately

land on March 29 with ICRC assistance but headed for

the Resienstadt rather than Bergen Balaes as previously
reported.

Getaberg, to concentrations of detainess at Revensbroack

HARRISON

and Kemburg-Femangame. ICRC is saw checking with

Getaborg . number of WRB parcels already at lasbeck

all of which cermittee hopes be able distribute area

is question within caming three weeks,

Present street of Luebeck Hasburg area is antivated

by ICNO fear that this region may .... be out off and

by fact that no trucks are at present available
is that sone for civil detainee relief. Committee is

accordingly anxieus send in more relief and means of

transport to distribute 11 before 11 is too late.

Four sere Renemits with capacity of $200 kiles
each scheduled depart April 12 or 13 for Dechas

They will also resain this area to distribute parcels
to large member smaller camps administered free Dachas,

ICRC further counte on being able ship within next

ten days by rail to new ICRO donet at Revensube
between Swiss border and Humich, balance of aproxinotely 50,000 VKB parcels remaining is Switserland,

Plan is then to move these percels on by tracks as

rapidly as possible to accessible campa near Munich
and to east and northeast therent mentioned is my 1988,

This trucking will be done with 11 are Resuults

which ICRC'. DGA is due to receive week after next

total agreed being 20. They will be operated by

gaseline released to ICRO by SHAKF for WRB pregrans

first tank earleed of which is already enroute from

Mareeille to Genera.

IDA

MICROFILM

TRADE MARK

83

84
0

NOT TO BE RE-TRANSMITTED

COPY NO

SECRET

heads.

every effort to liminate. To Fest this area U.K. and Canadian

OPTEL NO.111

Armour made good progress on wide front with patrols reaching
Sulingen, Moppen, Dalen and Deventer. Except in Veser bridgehead and along River Ijssel Enemy resistance light and scattered.

Information received up to 10.a.m.7th April, 1945.

6. Eastern Front.

NAVAL

Northern Sector. Further reduction of Germans encircled
S.E. Danzig while to North Germans report their forces as
having disengaged and crossed to split of land North of Gdynia.
Southern Sector. Considerable advances made Carpathian

1. Home Waters,

6th/7th (night) E-boats approaching the coast off
and driven off by a British frigate and
damaged
Yarmouth MTB' when were one engaged
E-boat badly and one MTB caught fire

Zone where over thirty localities taken. Further South, but

and sank. Thereafter other MTB's intercepted retiring E-boats
sinking one and taking seven prisoners while our losses one

North of Danube, River Morava reached on forty mile front N.E.
of Bratislava, while south of Danube advance of 25 miles made
Eastward from Bratislava and capture of place two miles South

MTB sunk and another seriously damaged but taken in tow.

Vienna reported. Still further South fifty places S.W. Lake

2. Mediterranean
Craft

Northern Soctor. Second British Army secured bridge-

Across River Vener, North of Minden which Enomy making

Balaton and on Yugoslav Territory have been taken.

In Adriatic, Yugoslav Partisans supported by Coastal
and LOC captured Pag Island (off Zara) and Karlobag

AIR.

(North Zara).

7. Yestern Front

3. Enemy Attacks on shipping.

6th, U.S. Escorted Heavy bombors 646 (outstanding
bombers 9. fighters 5) dropped 1409 tons through cloud railway
centres Leipzig, Hallo and Gera.
SHAEF (Air). Medium bombers dropped 201 tons on three
railway yards Central Battle Area, Ammunition dump Southern
area and strongpoints Test coast of France, while fighters and
fighter bombers 864(missing 9) operated whole front destroying
or damaging 600 road and rail vehicles while also inflicting
Enomy air casualties 13:0:13.

6th.A in convoy torpedoed and sunk by
U-boat off isle or light when one fatal casualty suffered and

265 survivors rescued. U.S.Tenker (8537), torpedoed by U-boat
off Cape Cod but taken in tow.
4. Anti-Submarine operations.
Channel.

5th. U-boat probably mined and sunk in St.George's

8. Mediterrenean

6th Norwegian MTB 715 torpedoed large U-boat when
on surface off Bergen. Promising attack also made off Cape
Wrath by Liberator. U-boat also sunk(four officers and fourteen

4th/5th (night). Liberators 75 (missing 2) made
concentrated attack railway centre Bescia (194 tons).

ratings taken prisoner) off Isle of Wight by a British destroyer
and a Canadian frigate after torpedoing a merchant vessel.

MILITARY.

5. Yestern Front.
Southern Sector. Units of Seventh U.S. Army advanced
miles in area North Vurzburg where Bruchenau and

$

Hamme twenty Iburg have been reached while despite Enemy counter attacks

more ground gained in and South of Turzburg.

Central Sector. Third U.S.Army Armour pressing First on
Gotha and Yubhausen while Cassel now occupied.

beyond continues attack Enemy Ruhr pocket from East and

South U.S. Army where steady gains made while other elements in Yeser conjunction

with those of Ninth U.S.Army now closing up to River have
between Cassel and Minden. Armour of this latter Army
secured Homelin in which area several small bridgeheads across
River Veser have been established.

0

5th Escorted Heavy bombers, 504 (missing 1) dropped
876 tons on three railway targets, airfield and shipyards in
North Italy and also 272 tons on railway bridge Yugoslavia.
Tactical aircraft 1446(missing 8) attacked communications and
other targets South Germany, Austria. Yugoslavia and North
Italy with good results while inflicting Enemy air casualties
20:0:16.

(

L

83

84
0

NOT TO BE RE-TRANSMITTED

COPY NO.

-2-

4

Northern Soctor. Second British Army secured bridge-

SECRET

heads. Across River Weser, North of Kinden which Enony making

every effort to eliminate. To Fest this area U.K. and Canadian
Armour made good progress on wide front with patrols reaching
Sulingen. Mappen, Dalen and Deventer. Except in Veser bridgehead and along River Ijssel Enemy resistance light and scattered.
6. Eastern Front.
Northern Sector. Further reduction of Germans encircled
S.E.
Danzig while to North Germans report their forces as
having disengaged and crossed to split of land North of Odynia.

OPTEL NO.111

Information received up to 10.a.m.7th April, 1945.
NAVAL

1. Home Waters.

6th/7th (night). E-boats approaching the coast off
Yarmouth were engaged and driven off by a British frigate and

Southern Sector. Considerable advances made Carpathian

Zone where over thirty localities taken. Further South, but

MTB's when one E-boat badly damaged and one NTB caught fire

and sank. Thereafter other MTB's intercepted retiring E-boats
sinking one and taking seven prisoners while our losses one

North of Denube, River Morava reached on forty mile front N.E.
of Bratisleve, while south of Danube advance of 25 miles made
Eastward from Bratislava and capture of place two miles South
Lake

MTB sunk and another seriously damaged but taken in tow.

Vienna reported. Still further South fifty places S.W.

2. Mediterranean

Balaton and on Yugoslav Territory have been taken.

In Adriatic, Yugoslav Partisans supported by Coastal
Craft and LOG captured Pag Island (off Zara) and Karlobag

(

AIR.

(North Zara).

7. Yestern Front
6th. U.S. Escorted Heavy bombers 646 (outstanding
bombers 9. fighters 5) dropped 1409 tons through cloud railway
centres Leipzig, Halle and Gera.
SHAEF (Air). Medium bombers dropped 201 tons on three
railway yards Central Bettle Area. Ammunition dump Southern
area and strongpoints West coast of France. while fighters and
fighter bombors 864(missin 9) operated whole front destroying
or damaging 600 road and rail vehicles while also inflicting
Enemy air casualties 13:0:13.

3. Enemy Attacks on shipping.

6th.A
convoy torpedoed and sunk by
off isle of "ight when one fatal casualty suffered and
U-boat 265 survivors rescued. U.S.Tanker (8537), torpedoed by U-boat

off Cape Cod but taken in tow.

4. Anti-Submarine operations.
5th. U-boat probably mined and sunk in St.George's
Channel.

6th Norwegian MTB 715 torpedoed large U-boat when
surface off Bergen. Promising attack also made off Cape
Wrath on by Liberator. U-boat also sunk(four officers and fourteen

8. Moditerranean

and a Canadian frigate after torpedoing a merchant vessel.

5th Escorted Heavy bombers. 504 (missing 1) dropped
876 tons on three railway targets, airfield and shipyards in
Nort Italy, and also 272 tons on railway bridge Yugoslavia.
Tactical aircraft 1446(missing 8) attacked communications and
other targets South Germany, Austria, Yugoslavia and North
Italy with good results while inflicting Enemy air casualties

4th/5th (night). Liberators 25 (missing 2) made
concentrated attack railway centre Bescia (194 tons).

ratings taken prisoner) off Isle of Wight by a British destroyer

MILITARY.

5. Eestern Front,
C

Southern Sector, Units of Seventh U.S. Army advanced

I

20:0:16.

area North Vurzburg where Bruchenau and

Hanne twenty iburg miles have in been reached while despite Enemy counter attacks

more ground gained in and South of Turzburg.

Central Sector. Third U.S.Army Armour occupied. pressing First on

beyond Gotha and Mulhausen while Cassel now from East and

U.S. Army continues attack Enemy Ruhr pocket elements in conjunction

South where steady gains made while other to River Veser
of Ninth U.S.Army now closing up

with those Minden. Armour of this latter Army have

between secured Hamelin Cassel and in which area several small bridgeheads across

Rivor Teser have been established.

0

BOLL NO

NOT TO BE RE-TRANSMITTED
COPY NO.

of

SECRET

C

OPTEL No. 112

Information received up to 10 a.m., 8th April, 1945.

86

NAVAL
1.

HOME WATERS. 7th/8th. Five E-boats operated off Ostend

and preliminary reports state two sunk by our patrols.
2.

coaster and one junk in Mergui Archipelago and also shelled radar
station Great Cooo Island (N. Andamans).
3.

PARAPERATE . TELEGRAN

EAST INDIES. Four of H.M. Destroyers recently sank one
ENEMY ATTACK ON SHIPPING. 7th. A 7176 top U.S. merchant

vessel in inward Atlantic convoy torpedoed off Anglesey but towed
into port.
MILITARY

WESTERN FRONT. Southern Sector: During last two days
2nd French Corps made general advance of eight to fifteen miles
during which Ettlingen has been cleared. Armour of 7th U.S. Army
reached River Main Se Wursburg, while to north of town is now
approaching Schweinfurt.
Central Sector: 1st and 9th U.S. Armies have closed to
River Weser between Cassel and Minden, while armour of latter has
established large bridgehead east of Hamelin.
Northern Sector: Armour of 2nd British Army attacking
N.E. now 18 miles S.S.E. Bremen, while bridgehead over River Weser
north of Minden being consolidated.

FROM

lessless Coughing

TO:

Secretary of State, Washington

DATED

April a, 1945

main

893

4.

(

5.

Tebasay's No. - dated April , is reference able. treasury
Attache Mise, with Dr. Beeng and Tarky, left for Washington yesterday,
April 7. Treasury should be informed.

ATTENTION

EASTERN FRONT. Southern Sector: Further progress made

N.E. Bratislava, while to south of Danube Klosterneuburg (N. Vienna)
captured and street fighting reported in southern parts Vienna it-

self.
6.

ITALY. Adriatic Sector: 8th Army troops made slight

progress south Lake Comacchio,

In west Coastal Sector U.S. troops of 5th Army made small
gains and beat off counter attacks immediately east of Massa.
BURMA. Central Sector: Both sides regrouping after
battle of Mandalay Plain, while our leading division supported by
armour continues advance south Meiktila and is now 10 miles from
7.

Pyawbwe.
AIR
8.

C

C

WESTERN FRONT. 7th. 1257 escorted U.S. heavy bombers

(22 bombers 6 fighters outstanding) dropped 3074 tons visually on
targets north and east Hamburg among which six airfields (1200 tons)
four railway centres including Neumunster and Schwerin (541 tons),
two explosive works (716 tons. an ordnance depot and two oil
storage depots (617 tons) while at same time inflicting enemy casualties 104.19.28 in combat.
SHAEF (Air) medium bombers 237 dropped 364 tons railway
centres Northeim ndGottingen with good results while 1944 fighters
and fighter bombers (7 missing) operated northern and central
sectors destroying 40 AFT' $ and 270 M.T. in Central Sector alone
and also inflicting enemy air casualties 13.3, in combat and 47,2,
84 on ground, Coastal Command Beaufighters 21 attacked shipping
off Vadheim (Sogne Fiord) when two ships of 2000 and 3500 tons and

escort vessel left on fire.

9.

MEDITERRANEAN. 6th. 387 U.S. heavy bombers dropped 841

tons railway yards, bridges and other targets North Italy. 1032
tactical aircraft attacked communications, supplies and close support
targets North Italy and Yugoslavia.
10.

BURNA. 5th. Heavy bombers attacked supply dumps Rangoon

(134 tons) while 231 tactical aircraft attacked other targets.

I

DO/LAYR 4/9/48

88

FOR THE processary's your

87

and War Departments in his discussion with them the previ us afternoon.

0

in said that he had checked his recollection of what the President
had said with it. col. John Bottiger, who had been present at the
conference, and that Hr. cettiger agreed with the following swarry

(

April 9, 1945
Conference on the Treatment of Germany

of the President's views:

Secretar Korn genthan's office
March 23, 1945

1. There should le provision for central administration for same of

9:00 A.

the national public services.

2. The State Department's drast directive of March 10 should be

Present: Vor the Treasury Deport- - Secretary Morgenthau

PART ttem.

Mr. White

next

in Coe

3. Aside from reparations, German industries and the Geman economy

For the State Department - Mr. Clayton

should be left intact for German use. The President definitely did not

Mr. Matthews

must to *alininite" General heart industries.

For the Mar Department Lr. liceloy
General Hillering

4. Attempts should be code to decentralise the political structure.

There should be as ruch locastralization no possible in the sphere of

economic activity.

At the Secretary's request, the discussion started . few since
before the arrival of the Secretary and Mr. leCley. 20th Clayton stated

F. MeCloy asked -r. Clayton whether this was a correct inter-

that he WAS in favor of having the TOUR noral the document which be and

protation of what the President had said and it Glayton stated that it
was. It == agreed to the ship that the would review J.T. Siciloy's

above to the Pressure the day before (attachment A) to the Precident for
approval.

Mr.

White

distributed

copies

of

.

his

properted

docu-

one-plige

in order to see have will St carried out the points wedch the

mont, prepared in the Treasury (attachment ). General Hillerine
assignanced that be car that r LeCloy and a document, coming of
would be available AS DOOD == HR. Melley (attachment 0).

President wished of mased.

which

In subsequent discission the following rearcs WOTE attributed
to the insident at the section of the preceding daymbainly by 10%

0
Document

(

SicCloy.

His Clayton asked whether the policy recommended lo the Treatury

in 2 A - Inconsistent nince the contence stated that #aupervision and
veto over* were to le aintained but that we "should would morning

The President was quoted as having said that be had ede a mistake

responsibility for the functioning of the Internal economy ...."

at Queline and that be bland this on Chirohill. The President and told

that the Language erely allowed that the time of overvieling while TOUS
to be exercised was not one which would make Us 205 mulble for every

had drefted it, for it used the work *pastoral" which the President said

Mr. White said The did not think that there was MC Internationaly but

the SPAID Unit they could tell by peeding the that Churchill

he work never have thought of using in this connection.

detail of the eeono is functioning of Germany. in Clayton declared
that he thought what Me bad to assume that responsiMility. r. White

Loonemic Controls

stated that he thought that the President definitely did not want as to

assume that responsibility

The President === said to have been year dulices about the need for

these controla in equided Commany. The idad of controls be would be
inclined to use would e conditions of say three Gerrans to a
who would be told that they an to do than and thus or see that thus and

Mr. Clayton further effected to the language of the Treasury (000=
meat which stated that consider activities should in administered and
apainted 049 a decentrolized busic. Mr. Con pointed out that this MAIL

than was done. If these things were not carried out the should be shot.

"subject to tix decisions 12 12m Central which could accept

The President VILLING said to have used rationing as . good example of a COD-

any Ameticone or parts of funct ons, if 1. Ocural It ecessary to conduct
these

functions

centrally,

Mr.

Matthews

cald

that

the

State

trol which be thought the illies should not incose on Demony or try to

Department

rin. He thought this should be NO to the Germans.

agreed with 2 B of the Treasury document About the distribution of do-

centralising the political structure.

Standard of Mates

The President's Pleasaing
Mr. lieClay said that the War Department draft had been marked out

on the leals of what the President told the representatives of the State

O

The President thought that we should not be responsible for maintain=
ing a minimum standard of living in Germany. E thought that of course
we should food the Gervan people to prevent them from starving and be

-4-

-3
89

thought that starvation ought to be the line at witch our positive in-

had taken yesterday. The President bound to object to were policiou,

:

if given . real opportunity to pass 1.00 them.

tervention began. The President again mentioned soup itchens for feed=
ing the German people. Homever, Nr. Endloy said that the President
had not objected to the words *Lisease And unrest

The Secretary felt sure that now this group could quickly work out
an agreed policy. in and enjoyed working on this satter with Mr. lieCley.
They had worked together in complete frankness, each losera where the

Industry

other stood, and be appreciated what Vr. McCley had done in recent days

within the Heits of the instructions given his by Secretary Stimbon.

The President said that he did not held extremist view on this sub-

No and Mr. Clayton had worked closely together on the French lend=lease
matter and descrite difficulties had cone through to anagreement, which he
(Socretary Vergenthas had had no occasion to remet.

joot. No had cent oped metically that le would let the Germans retain
such industries as acidne tools and Locomotive annincture. So long
as the Genean used their industries for their own Internal needs, he
had in objection to shelp having a mubata that iniuntry. The President
anid he therefore (15.0 not believe in such Usings as ruining the nines and

President: al Directive

otherw DO destroying German indestry (Coupare, however Secretary's

Authority of the Control Council

moord of telephone conversation the preceding day r. LeCloy, in
with the latter had said that the President thought that something

The paragraph drifted by the list Department was accepted, with only

could be done to contract German industry but that It would take empert

rinor changes.

planting and handling.)

Decentralization

Administration

The Bar Department Gruit of this paragraph 300.1 convided with minor

The President was guoted 00 anying that he was open minded on the

changes after a discussion. Ur. Clayton and in Matthews said that they

question of what atters had to be handled centrally, I'e thanks that

certainly sgreed on the question of political decentralization Mr. McCley
pointed out that the present draft followed the President in enchasing
decentralization by permitting central control of the national public

tids and 1443 other questions could not to settled in detail almed of

time; that we led to get into the country first and take a look and see

what *** possible and impossible.

0

C

Specialary Morgenthma's Jenezia

part of the discussion both before and after in leCloy spoke:

The ratters which this group led been eslaid to deal with were 4000

his life the Secretary as only two objectives: first, to help win the

war, and the second to help make lasting place. He considered the
future treatment of General so crucial for peace that be THE willing to
say that this conference = one of the rest important in witch lie had
ever participated.

If he and not = evaluated the subject, le would not have raised
92 ations concerning the State Department's druft directive of March 10.
For the moment he saw the document last succ in Mr. Statis nine office,
he her never doubted that 4 serious intake sup being made. 16 had anid
then that the policies t ervin contained were bad and that the YEAR sure

that they were centrary to the President's views. line hoped that there
would not be any hurt feelings as 4 result of the acti na which be had
taken, but in the circuistances he had felt that there THIS nothing he
could do except tell the President exactly what he thought. He was sorry
that Lin. Stimson had considered that he aught to \eep out of the field
for

Germany.

this

had

count

that

he

(Secretary

These sentences vere accepted at crafted except that industrial

disamment MRS inserted as category along with demilitarisati n

the soot important witch would help to sale the peace. At this time in

policy

services.
Controls

Secretary for rgenthes rade the following rearis in the first

general

90

Morgenthan)

had had to fight this atter by Maself. 15c hoped he would be excused

if be said that to felt very glad about the actions which the President

where controls would be certified.
Living Standards

The language TELL subctantially that proposed by the War Department.
International Transactions
The list Department had reposed that exports and imports should be

controlled with the aim of taking Germany self-contained. At the suggestion

of Water and Coe this was changed to that all Aconomic and fi-

nancial transactions of an international character sould is controlled with
the sin of preventing Germany from developing a war patential and for

other litary occupation objectives. At Sr. White's unding a sentence

wis also inserted prohibiting the extension of credit to Certificaty by any

foreigners. letars. McCloy and Clayton wished the Contro "emeil to IT

tain an evergency power on tids Letter and the final sentence was so
worded.

-6-

92

91

specific language. However, Art McCloy, supported by Mr. Clayton, urged

0

that this paragraph west as far as c old be done in line with the President's

direction of the preceding day. Thereupon the Secretary paid that although

Imparations

1

he filt this was the key problem, he also felt that the President was so

After discussion of the solut ruised by -T. Coe, it was agreed to

firmly consitted to a program of reducing the size of Deman heavy industry

add a sentence providing that requrrent reparations should not by theirand
form or amount require the mishilitation I German heavy Industry

that the President was certain to issue more detailed instructions at a
later time. The Secretary said that since he ad not been present at the

should not foster the decendence of other countries upon Germany.

conference referred to, e aid not wish to urge the adoption of language
watch Resers. MeCloy and Da ton thought went beyond or was contrary to
what the President had maid.

Mr. Clayton made the point that . first charge on all exports which
were necessary for reparations or at arriso should be a sin adilicient to
day for Imports. The thought WILD that the proceeds of excepts should be

divorted to pay for imports in order to revent al traation arising where

Planation Document

all

this countries
nightto
language got
that other
certain countries finance the importe and certain

as reparations.
considerable Mr. Con Argaed volume of imports which were alleged
sanctioning
as

to be necessary in order to pay for exactions. Somever, the consensus

will that it would not to to construed.
External Assets

restatution and other war claims. its Claytes
of first stried
against
clear that
it
provided
that
as

enuliscation

and

because

the

President

had

had

nary

but

later

agreed

was

Secretary said that unless it MBA embarrassing to the

Department of State be thought that the heading of the present document

should reartly say that the March 10 directive === withdrum. Jr. Clayton
said that be believed that this would be clearly understood, since if the

the

external assets PSTC to be held for Legitimate claims of the United ations

their was no election. 10. Liceley folt that the subject not important

C

peace

Withdrawal of March 10 Pomenut

Ur. Witte and Mr. Coe vision to have language inserted stating that
all of Germany's external ussets were to be paised and held for reparations,
this

The Socretary suggested that because the document
was important
for
presented
docurests

to him on this subject with the signature of only one person upon them,
be thought that the sen in the PODE should all sign the completed draft,
which was to to to the White Marian This was done.

a

the exports
strued
cons

future

enough to be inserted in Lide directive. Lr. White and Mr. Doc also urged
that Canpiace providing that all future seguleitions of foreign exchange
assets during the costs 1 eriod should be reserved for runerations and

restitution. The language of this proposal has thought to be technically

unacceptable or too restricted to be inpurted In this document. Secretary
Morgentlan, in Claytes and Mr. VeCley stated that they were agr ed in
principle about taking emay General 'a external assets using them for 10⑉
parations and estitution. and not allowing ber to accumulate any during

the control period. It than thought that the best place to carry cut

this intent would be in a later financi a directive.
unly

The paragraph on this letter, which placed the (or the

administration and ficiency of controls on the German people,
HIS accepted practically an written.
Denasification and the Har Criminals

There perographs were accepted with only one change williah was other

0

President approved. its later as would COULDE it to supersede the preceding document. The Secretary replied that be was afraid there would be
Mr. White approved Sr. KeClay and Deneme Hildring

mother ever one in the Any would under stand that this document superseded

the March 10 directive. Lr. MeCloy paid that they would on the points which

were covered. ir. White asied Wether it would be clear In the Amy that
USE dreament took If contance over and cause the revision of any other

document contrary to 11. in thought at the Any practice was always
specifically to enumormts what regulations
were Precinced byall
subsequent
about
right
Hilloring said that Mr. White
General
regulations.
grecific
all the
Arro

propedite

lut

tist

ruch

materiation

10.5

lega

only

when

IS could be experimed. No throught that in the present Instance

there THE to stang you wold not emperate them.

Secretary Pargent an returned to is point saying that is there was
no objection he thought that it should be ade clear that the March 10
directive was opperteded. There had been a lot of a scussion about that
directive and soun recols right have noon it With would at 000 the repent

one. Ur. Clayton replied thit they would be clad to do it if necessary but

thought It r. White anked whether the March 10 directive

had been sent to in Winent. Fr. Clayton thought it had not. Mr. Matthews

said It had but did not think it. Winant have 10, adres se

textual. The War Department draft had stated that "all other undesizable persona would be recoved from oblic office, etc. Tots was changed

FOR that a 4 lorg than said that Winant might not under=

to *all other persons heat le to allied purposes* after PT. Cla; ten and

stant that the old document was now outerseded. Mr. Matthews said that
1. winant would be informed almost within the hour that the President

Secretary Morganthan had ruised points about this.

signed St.

than

Haz intential
Secretary Morgentime desired a such stronger paragraph than the one

drufted by the as Department. line White and F. Coe suggested certain

-6-

-7-

93

O

94

concluded, the Secretary stated List he now felt good for the first time

in a west. He had been very disturbed about the March 10 document. He
In response to still another statement by the Decretary in Enter of
specific language about rescinding the March 10 directive, 20r. Clayton

C

pointed out that since F. Stettinium have signed the Sarch 10 document,

he and No. lattews would be healtant to recommend the Insertion of
language requested to ir. Vorgestins, unless they checked with To
understood that they
that
caid
Stettinius.
Secretary
Vorgentlau
the

hegitase to ngree to withdraw A doomment which had been algoned to their

ohief, before they had any chance to (all with hair cidef. he

would not press Ma request.

Process for Clearness
Mr. lieCley naid that the manted the President's approval of this
document to the afternoon 11 possible. If it was Approved he intended

stirtly to By with 11 to Securral adquarters and discuss
it there and later with the military and if pleastic officials of this
overweet In London. Geer tary Elergent - said that the 162000

had been shocked to learn that it and been approved up and down the line,

and be Icrow that Art. Stettinius had not had an opportunity to study it.
the

President

it,

and

it

was

clear

that

the

document

be felt what had been disticted this corning was in econous Liprovement

and that way serious Histakes and both corrected. D Secretary thanked
the ten resent for the fine way in which they ad worked and said he
hoped that these agreements on policy would serve to mooth the viole
additionative problems of detling with Dumany.
Mr. Edcling said that the Anny HALL with letter estimate of now and that

the present dominent was one upder which they could really work. Mr. Clayton

and in Matthews said that they too were fully astislied with the present
document, and believed that it represented the views of their Department.

said he eld be recent, is T. Open invited his to be. It

was agreed that the Decretarion of State and Trunsary and the Secretary

of as or his representative would see the President liter adidas.

Properation of Directive
Secretary Morge them, HP. Clarten and ir. dellog agreed that #:00
the accepting of this document, JOB 1067 (revieed) and Sta agenticos,
their other directives would have to be revised. The care three agreed

that the policy of cooperation which ad bets followed in the directing of

this document would Le followed in the drafting of scieldiary documents
and that representatives of the three Agencies, with ozitable additions,

to sit around the table.
insurations

In the course of the discussion, Mr. Clayton sentioned can

forences had been had th Fr. Lahin about reparations. secretary

said that the Treasury too had confureed within The Secretary

suggested, and 1 HBA grood by T. Master, that these vuries discussions
of reperations would at to lela separately in the cuture but that the
agencies concerned would mil com together.
Permonnel for Gerwany

During the meeting, Fr. 1/0Clog stated that # 360 waking to

get Deposit Incius Clay for the top job in Gensaro and that was

hopeful that liv. Tyrnes would release his. Ha also paid that Deniral Draper
waited Less Douglas for a top resition there but Ust Fr. Paulas acceptance

partly deceded upon to - to is the head an.

KWO the document was signed and after discussion of procedure had been

recestered

was. it. Claston interjected to say that he had never been the document

done after jaifnet in the afternoon. 19. Clayten sugarted that Mentary
Morgenthem iresent is to the President. The General dealised, but

Assistary's Concluding Squarks

not

until the day e was called to the White House. The Secretary cold that

to present it to the President WILL F. and to suggested that it le

C

had

- not been presented to the President as the important state paper it

FCahah

Clayton
KYMORANDOM OR CONTROL or GERMANY

X

1. Degree of responsiblity for the functioning of the German The German economy is expected to yield . substantial amount of reparations in
capital equipment, current output and laber services.
The German economy must provide . minimum living standard for the German people

to prevent disease and warrat, and must contribute to the saintenance of the
occupying forces and the care of millions of displaced persons.
A large part of Germany's productive wealth has doubtless been destroyed and
millions of Germans will be homeless.

Transportation facilities and public utilities will be seriously disrupted and
impaired.

Since the Basis have occupied the key positions is the Germa economy and

since such persons will either flas or be taken into oustody, it will be necessary to
find expetent German personnel to take their places.

Such reorganisation as this will involve will be the responsibility of the
occupying nations.

It is contemplated that Germans will continue to administer the German economy

but under a close supervision of the authorities of the compring nations similar to
the supervision that . Board of Directors would exercise over the administration of
. corporation.

2. Degree of mentralized enatral is German.
The political Government of Gerwany should be decentralised to the highest possible
degree.

Centralised control by the compring nations of certain economic functions such as the

public services, transportation, communications, postal service, banking, etc. will be
essential to efficient operation.
All economic activities of . nature not requiring national direction should be
distated and operated on . decentralised basis.

B

UNITED STATES VIEIS on THE TREATMENT OF GINNANT

97

86
SUCHET

Decentralization and Controls

23 March 1945

(1) It is recognized that the Control Council my find

it necessary and desirable:

(a) To use centralized instrumentalitics in Germany
to carry out those functions of public services (trens=
portation, communications, etc.) which it is essential
to conduct centrally for the accomplishment of the
purposes of military occupation.

The following is a summary of U.S. policy relating to Germany in

the initial post-defeat period. is such it will be introduced into the
European Advisory Commission, and will be used as the basis for directives
to be issued to the U.S. Commanding General in Germany.
@@@@@@@@@@

(b) To take such measures with respect to the
administration of the German internal economy no may be

necessary to prevent starvation and epidemic which night
endanger the security of the occupying forces and the
accomplishment of its purposes.
(c) Dependent upo the decisions reached by the

Reportions Commission in to take measures

with respect to the German Internal economy as may be

necessary to collect reportions.

C

(2) Subject to decisions on the above by the Control Council:
(a) lie should maintain supervision and voto power
but should avoid assumity responsibility for the functioning of the internal German economy and its economic controls
and should Leave the problem of the maintenance and rehabil=
itation of the German economy in German hands.

(b) The political st.ructure of Germany should be decentralized to the highest possible degree and economic
activities should be administered and operated on n decentralized basis. To this end, local, municipal and regional
organs should be strengthened to the extent possible.
German Industry

(s) We should ain st the saximum possible contraction of
Gorman heavy industry through the program of reportion renovals
and otherwise. These measures should lesve Industry for Germany's
domestic needs, but in the program of reparations and restitution
the needs of liberated areas shall take precedence over the needs

of Germany. reportions should be in such form and

amounts as not to require the =sistenance or development of German

heavy industry, and BS not to make other countries dependent upon
Germany after reparations cease.

The authority of the Control Council to formulate policy with respect
to satters affecting Germany as a whole will be paramount, and its agreed

policies will be carried out in each gone by the none cornander. In the
absoree of such agrood policies, and in masters exclusively affecting his
can some, the more comander will exureise his authority in accordance with
directives received from his own government.

The administration of affairs in Germany should be directed toward

the depentrulization of the political structure and the revival of leesl
asseculity. The German economy shall also be decentralised. Homever,
to the minimum extent required for carrying out the purposes sat forth herein

the Control Council may pormit or establish central centrol of (a) essential
national public arvices such as railroads, communications and power, (b)

finance and foreign affairs, and (c) production and distribution of essential
commodities. There shall be equitable distribution of such comodition betweet the several
Controls may be imposed upon the Geruary economy only as may be necessary

(a) to carry out program of demilitarization, reportions, and external
relief AS prescribed by appropriate higher authority and (b) to assure the
production and maintenance of goods and services required to noot the needs

of the occupying forces and displaced persona in Gerwany. and essential to
prevent starvation or such disease or civil unrest as world endanger the

99

98

o

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occurrying forces. No action shall be taken, in execution of the reportions
program or otherwise, which would tend to support basic living atamiarda in

shall be arrested, brought to trial and punished. Nami leaders and

Germany on a higher level than those existing in any neighboring United

influential Nami supporters and any other persons dangerous so the

Nation. German exports and importe shall be controlled with the air of

occupation or its objectivis, shall be arrested and interned.
A suitable program for the restitution of property looted by Germans

making Gerraro self contained.

shall be carried out proptly.

I'll the imposition and maintenance of economic controls, German authori=

The a man armed forces, including the General Staff, and all pera-

ties will to the fillest extent practicable be ordered to proclaim and
assume administration of such controls. Thus 11 will be brought home to

military organizations, shall be proxyly demobilized and disbanded in such

the Cernan people that the responsibility for the administration of stick

4 namer as pormanently to prevent their revival or reorganisation.
The Cirman nar potential shall be destroyed. To this and all implements

controls and for any breakdowns in those controls, will rest with themselves

of NET and all specialized facilities for the production of armanents shall

and their USD actiorities.

be seised or destroyed. The maintenance and production of all aircraft and

The Sasi party and its affiliated and supervised organizations and all

0

implements of war shall be prevented.

last public institutions shall be dissolved and their revival prevented.
ami and militaristic activity or propaganda in any form shall be prohibited.
There shall be established a coordinited system of control over German
education designed completely to eliminate Mast and dilitarist doetrines and
to make possible the development of democratic ideas.

Nasi laws which provide who basis of the Hitler regine and which

establish discriminations ce crousis, race, creed and political opinion,
shall be abolished.
All nmmers of the Nasi party who have bre more than nominal parti-

cipants in its activities, and all other undesirable persons, will be
recoved from public office and from positions in responsibility in private
enterprise.

for criminals and those who have participated in planning or carrying

out last enterprises involving or resulting 1: struction or ser crimes,

0

TRADE MARK S MICROFILM
no 17
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30 March 1945

101

DIRECTIVE TO COMMANDER-D CHIEF OF U.S. PORCES OF OCCUPATION

D-JARDING THE VILWARE OF SERVICE

1. The purpose and Scope of this Directive:
This directive rescinds JCB 1067 and is issued to you as

TREASURY DEPARTMENT

100

(

Commanding General of the United States forces of occupation in Germany.

INTER OFFICE COMMUNICATION

As such you will serve as United States member of the Centrol Council

DATE April 9, 1945
TO

FROM

Secretary Morgenthau

and will also be responsible for the administration of military govern-

In/matin

ment in the sone or sones assigned to the United States for purposes

Mr. Coe FC

of occupation and administration. It outlines the basic policies
which will guide you in those two capacities after the termination of

These are the two documents to take the place of 1067 which
have so far been agreed to by the Drafting Committee. Part I is

the combined command of the Supreme Commander, Allied Expeditionary

the general directive and Part II is the financial directive.

yet.

Force. It is anticipated that substantially similar directives will

Part III, the economic directive, is not agreed in any form

be issued to the Commandere-in-Chief of the U.E., U.S.S.R., and French

forces of occupation. Supplemental directives will be issued to you
by the Joint Chiefs of Staff as say be required.
PART 3

2. The Basis of Military Government
a. The rights, power and status of the military government
in Germany are based upon the unconditional surrender or total defeat

of Germany. The Text of the Instrument of Unconditional Surrender is

at Appendix "A". You will assure that the policies set forth in that
Instrument are carried out in your some of occupation even though the

defeat of Germany is not followed by a formal signing of the Instrument,

I

b. Subject to the provisions of paragraph 3 below, you are,

by virtue of your position, clothed with supreme legislative, executive,
and judicial authority is the areas occupied by forces under your
command. This authority will be broadly construed and includes
authority to take all measures deemed by you necessary, appropriate

or desirable in relation to military exigencies and the objectives
of a firm military government.
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PRECISION

MICROSTATI

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MICROFILM

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C. You will issue a proclamatic continuing in force such

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0

TOP SEC

commodities between the screen. In the absence of a conflicting policy

102

of the Control Council, you may deal directly with one or more sone

proclam tions, orders and instructions as may have heretofore been

Commanders on matters of special concern to such somes.

issued by Allied Commanders in your sone, subject to such changes as

e. Pending the formulation in the Control Council of uniform

you may determine. Authorisations of action by the Supreme Commander,

policies and procedures with respect to inter-sonal travel and movement

Allied Expeditionary Force, may be considered as applicable to you

of civilians, no civilians shall be permitted to leave or enter your

unless inconsistent with this - later directives.

2004 without your authority.

3. The Control Council and Zones of Occupation:

f. The military government personnel in each sone, including

a. The four Comandere-in-Chief, acting jointly, will constitute

those dealing with regional and local branches of the departments of the

the Control Council in Germany which will be the suprese organ of control

central German administrative machinery, shall be selected by authority

over Germany in accordance with the agreement on Control Machinery in

of the Commander of that some except that lisison officers may be furnished

Germany at Appendix *B* For purposes of administration of military

by the Commanders of the other three somes. The respective Commandere-in-

government, Germany has been divided into four sones of occupation. The

Chief shall have exclusive jurisdiction throughout the whole of Germany

agreed protocols on sones are at Appendix "O".

over the members of the armed forces under their command and over the

b. The authority of the Control Council to formulate policy

civilians who accompany then.

and procedures and administrative relationships with respect to atters

E. The Control Council will be responsible for facilitating

affecting Germany as a whole will be paramount throughout Germany. You

the severance of all governmental and administrative connections between

will carry out and support in your sone the policies agreed upon in the

Austria and Germany and the elimination of German economic influences

Control Council. In the absence of such agreed policies you will act

in Austria, You will give every assistance to the Allied Administration

in accordance with this and other directives of the Joint Chiefs of

in Austria in its efforte to effectuate these purposes.

Staff.

4. Basic Objectives of Military Government in Germany

c. The administration of affairs in Germany shall be directed

a. It should be brought home to the Germana that Germany's

towards the decentralisation of the political and administrative structure

ruthless warfare and the fanatical Nast resistance have destroyed the

and the devel apment of local responsibility. To this and you will encourage

German economy and made chaos and suffering inevitable and that the Germana

automony is regional, local and municipal agencies of Gerven administration.

cannot eacape responsibility for what they have brought upon themselves.

The German economic structure shall also be decentralised. The Control

Council may, however, to the minimum extent required for the fulfillment of
purposes net forth herein, permit centralized administration or establish

central control of (a) essential national public services such AS railroads,
communications and power, (b) finance and foreign affairs, and (e) production and distribution of essential commodities.
d. The Control Council will adopt procedures to effectuate,

and you will facilitate in your some, the equitable distribution of essential
2-

TOP SECRET

b. Germany will not be occupied for the purpose of liberation
C

but as a defeated enemy nation. Your aim is not oppression but to occupy
Germany for the purpose of realising certain important Allied objectives.
In the conduct of your occupation and administration you should be just

but firm and aloof. You will strongly discourage fraternisation with
the German officials and population.

C. The principal Allied objective is to prevent Germany from
ever again becoming a threat to the peace of the world. Resential

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103

RECISION

ROLL NO.

TOP SECRET
C

TOP SEC

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prohibiting their revival in any form, will be promulgated by the Control

Nasian and militarian in all their forms, the immediate apprehensis of

Council. You will assure the proupt effectuation of that policy in your

war criminals for punishment, and the industrial disarmament and de-

sone and will make every effort to prevent the reconstitution of any such

militarisation of Germany, with continuing control over Germany's capacity

organisation in underground, diaguised or secret form. Responsibility

to make war.

for continuing desirable non-political social services of such Party

d. Other Allied objectives are to enforce the programs of

organisations as are dissolved say be transferred by the Control Council
to appropriate central agencies and by you to appropriate local agencies.

reparations and restitution, to provide relief for the benefit of countries

b. The laws purporting to establish the political structure of

devestated by Nast aggression, and to ensure that prisoners of war and

National Socialism and the basis of the Mitler regine and all national

displaced persons of the United Nations are cared for and repatriated.
5. Economic Controls:

laws, decrees and regulations which establish discriminations on grounds

of race, nationality, creed or political opinions will be abrogated by

a. Controls upon the Germany economy say be imposed centrally

the Control Council and rendered inoperative by you in your sone.

by the Centrol Council, or regionally or locally by you, only to the
extent that such controls may be necessary to achieve the objectives

0

0. All members of the Nasi party who have been more than nominal

emunerated in paragraph b above and only as they may be essential to

participants in its activities, all active supporters of Nazies or

protect the safety and meet the needs of the occupying forces and assure

militarism and all other persons hostile to Allied purposes will be

the production and maintenance of goods and services required to prevent

removed and excluded from public office and from positions of importance

starvation or such disease and unreat as would endanger those forces.

in quani-public and private enterprises such as (1) civic, economic

No action will be taken in execution of the reparations program or

and labor organizations, (2) corporations and other organisations in

otherwise which would tend to support basic living conditions in Germany

which the German government or subdivisions have a major financial interest,

or in your sone on a higher level than that existing in any one of the

(3) industry, commerce, agriculture, and finance, (4) education, and (5)

neighboring United Nations.

the press, publishing houses and other agencies disseminating news and

b. In the imposition and maintenance of such controls as may

propaganda. Personal are to be treated as more than nominal participants

be prescribed by you or the Control Council, German authorities will

in Party activities and as active supporters of Nasism or militarian

to the fullest extent practicable be ordered to proclaim and assume

when they have (1) held office or otherwise been active at any level

administration of such controls. Thus it should be brought home to the

from local to national in the Party and its subordinate organizations,

German people that the responsibility for the administration of such

or in organisations which further militaristic doctrines, (2) authorised

controls and for any breakdowns in those controls will rest with thes-

or participated affirmatively in any Nast crimes, recial persecutions or

selves and German authorities.

discriminations, (3) been arowed believers in Nasian or racial and

militaristic creeds, or (4) voluntarily given substantial moral or

6. Densolfication:

a. A Proclamation dissolving the Nast Party, its formations,

material support or political Assistance of any kind to the Nasi Party

affiliated associations and supervised organizations, and all Nasi public

or Nami officials and leaders. No such personal shall be retained in

institutions which were set up as instruments of Party domination, and

any of the categories of employment listed above because of adminis-

-4-

trative necessity, convenience or expediency.
-

0

TOP SECRE 105

steps in the accomplishment of this objective are the elimination of

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PRECISION

MICROSTATA

TRADE MARK

MICROFILM

ROLL NO

TOP SEC 107

TOP SECREE
d. Property, real and personal, owned or controlled by the

organisations, including the General staff, the German officers Corps,
the Reserve Corps and military academies, together with all associations

Maxi party, its formations, affiliated associations and supervised

which might serve to keep alive the military tradition is Germany.

organizations, and by suspected war criminals and leaders of the Mast

de You will seise or destroy all arms, ammunition and

hierarchy, and found within your some will be taken under year control

implements of war and step the production thereof.

pending a decision by the Centrol Council or higher authority as to its

d. You will take preper steps to destroy the German war peter-

eventual disposition.

tial, as set forth is Part II hereof.

. All archives, monuments and museum of Nasi inception,

8. Suspected War Criminals and Security Arrests,

or which are devoted to the perpetuation of German militarism, will be

a. You will search out, arrest, and hold, pending receipt by
taken under your control and their properties held pending decision as to

you of further instructions as to their disposition, Adolf Hitler, his

their disposition by the Centrol Council.

chief Nasi associates, other war criminals and all persons who have

f. You will make special efforts to preserve from destruction

participated is planning or carrying out Nesi enterprises involving or

and take under your control records, plans, books, documents, papers,

resulting in strocities or war crimes.

files, and scientific, industrial and other information and data belonging
o

to or controlled by the following

-

(1) The central German Government and its subdivisions,

organizations, organizations engaged is military

research, and such other governmental agencies as may be
deemed advisable

(2) The Nasi Party, its formations, affiliated associations
and supervised organizations

(8) All police organisations. including security and
political police,
(4) Important economic organisations and industrial
establishments including those controlled by the Nasi Party
or its personnel;
(6) Institutes and special bureaus devoting themselves to

racial, political, militaristic or similar research or propaganda.
7. Demilitarisations
a. In your 1004 you will assure that the Gerean armed forces,
including para-military organisations are promptly demobilised and disbanded
is accordance with policies and procedures set forth is the Instrument of
Unconditional Surrender or other directives which may be issued to you.
b. The Control Ceuncil will proclaim and in your 1008 you will

effectuate the total dissolution of all military and para-military

1

b. All persons who, if permitted to remain at large would
endanger the accomplishment of your objectives will also be arrested and

held in oustody. The following is . partial list of the categories of
persons to be arreated is order to carry out this policys
(1) officials of the Maxi Party and its formations,
affiliated associations, and supervised organisations, down
to and including Local Group Leaders (Ortagruppenleiter)

and officials of equivalent rank;

(2) All members of the political police, including the
Destape and Bicherheitadienst der S.S.

(8) The officers and non-commissioned officers of the
Waffen S.S. and all members of the other branches of the 3.5.1

(4) All General Staff Corps officers)
(6) officials of the police holding a rank, or equivalent
positions of authority, above that of Lieutenant
(6) officers of the SA holding commissioned rank

(1) The leading officials of all ministries and other
high political officials down to and including urban and rural

PRECISION

MICROSTATE

MICROFILM

TOP SECRET
burgermeister and officials of equivalent rank, and those
persons who have held similar positions, either civil or

military. is the administration of countries occupied by

BOLL NO

TOP.SECRF Tos

0. No German parades, military or political, civilian
sports, shall be permitted by you.

d. Subject to the provisions of the three preceding subparagraphs and of paragraph 10 to the extent that military interests

Germany:

(8) Masis and Nasi sympathizers holding important and

key positions in (a) National and Gau civic and economic
organizations; (b) corporations and other organizations is
which the government has . sajer financial interest; (a)
industry, commerce, agriculture, and finance) (d) education;
(a) the judiciary: and (c) the press publishing houses and
other agencies disseminating news and propaganda. It may
generally be assumed in the absence of evidence to the

contrary that any persons holding such positions are Nasia
or Nesi sympathisers

(9) All judges, prosecutors and officials of the People's
Court (Volkagerichtshof), Special Courts (Sendergerichte) and

other extraordinary courts created by the Hasi regise
(10) Any national of any of the United National or
associated states who is believed to have committed offenses

against his national law in support of the German war effort,
(11) Any other person'whose name or designation appears lists to be submitted to you or whose CARE may be notified to
you separately.

If is the light of conditions which you encounter in Germany you believe
that certain persons within these categories should not be subjected
immediately to this treatment, you should report your reasons and
recommendations to the Joint Chiefs of Staff.

9. Political Activities:
. Initially you will not permit pelitical activities of any
kind, and you will sesure that your military government does not become

committed to any political group.

b. You will prehibit the propagation is any form of Nasi
and militaristic dectrines.

are not prejudiced, freedom of speech and press, and of religious

worship, will be permitted. Consistent with military necessity, all
religious institutions will be respected.
10. Public Relations and Centrol of Public Information:
As a member of the Centrol Council, you will endeavor to obtain
agreement on a quadripartite basis for uniform or opordinated policies with
respect to (a) central of public information media is Germany, (b) accrediting
of foreign correspondents, (a) press censorship, and (d) issuance of official
news communiques dealin with Control Council matters of Germany as a whele.

U. S. policies in these matters will be sent to you separately and you will
be guided by these in your negotiations on the Centrol Council.
11. German Courts,

a. All extraordinary courts, including the Velkagerichtshof
(People's Court) and the Sendergerichte (Special Courts), and all courts

and tribunals of the Maxi Party and of its formations, affiliated associations and supervised organizations will be abolished immediately.

b. All ordinary criminal, civil and administrative courts,
except those previously re-established by order of the military govern-

ment, will be closed. After the elimination of all Nasi elements you will
permit those which are to exercise juriediction within the boundaries of
your tone to resume operations under such regulation, supervision and central
as you may consider appropriate. Courts which are to exercise jurisdiction
over territory extending beyond the boundaries of your some will be reepend
only with the express authorization of the Control Ceuncil and under its
regulation, supervision and centrol. The power to review and vote decisions
of German courts shall be included within the power of supervision and centrol.

12. Police
With the exception of the Reichakriminalpolisei (Criminal

Police) all elements of the Beicherheitspolises (Security Police), .....
(Gestape) and the Sicherheitadienst der S.S.

BULL

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0

111

will be abolished. Criminal and ordinary police will be gurged of East
religious instruction in German schools, except insefar as may be necessary
persennel and utilized under the control and supervision of the military
government.

to issure that religious instruction and administration of such schools
conform to such Allied regulations as are or may be established pertaining

15. Political Prisomere:
Subject to military security and the interests of the individuals
concerned, you will release all persons found within your some who have

been detained or placed in custody on grounds of race, nationality, creed

to purging of personnel and curricula.
15. Arts and Archives:
Subject to the provisions of paragraph 5 above, you will make
all reasonable efforts to preserve historical archives, missume,

or political episions and treat them as displaced persons. You should make

libraries and works of art.

provision for the review of convictions of alleged oriminal offenses about

which there say be substantial suspicion of racial, religious or political
persecution, and in which sentences of imprisoment have not been fully
served by persons imprisoned within your same.

14. Education

a. All educational institutions within your except those
C

previously re-established by Allied authority will be cleaned. The cleaure

TOP SECRET

of Nazi educational institutions such as Adolf Hitler Schulen, Napolas and
Ordensburgen, and of Nexi organizations within other educational Institutions
will be permanent.
b. A ocordinated system of control over German education and

an affirmative program of reorientation will be established designed completely
to eliminate Nasi and militaristic destrines and to encourage the development
of democratic ideas.

0. You will permit the reopening of elementary schools at the
earliest possible date after Nasi personnel has been eliminated and testbooks and currieula have been provided which are free of Nasi and militaristic
doctrine. The Centrol Council may devise programs looking toward the
reepening of as condary schools, universities and other institutions of

higher learning. Pending the formulation of such policies by the Centrol
Council, you may formulate an interis program within your sone and is any
case may permit the reepening of such institutions and departments which

offer training which you consider immediately essential or useful is the
administration of military government and the purposes of the occupation.

d. It is not intended that the military government will intervene
is questions concerning denominational control of German schools, or is

10

11

PRECISION

MICROFILM

MICROSTAT

TRADE MARK

ROLL NO.

3/6/42

o

0

112

113

PART II

-2-

FINANCIAL DIRECTIVE (REVISED IN LIGHT OF PRESIDENTIAL POLICY STATEMENT)

a. To permit or require the Reichabank, the Rentenbank or any other

1. You will make full application in the financial field of the
principles stated electhore in this Directive. You will endeavor with-

bank or agency to issue bank notes and currency which will be

in the franework of paragraphs 3c and 5 of Part I, to have the Control

legal tender; without each authorisation no German governmental

Council adopt uniform financial policies, to carry out the purposes of

or private bank or agency will be permitted to issue bank notes

the occupation.

or currency.

b. To require the Gervan authorities to make available Heichmark

2. You will regulate and control currency circulation within your
sone in accordance with the following provisions, and subject to any

currency or credits free of cost and in amounts sufficient

agreed policies of the Control Council,

to meet All the expenses of the forces of occupation, including

the cost of Allied Military Government and including to the **

a. United States forces and other Allied forces within your

tent that compensation is made therefor, the cost of such

sone will use Allied Military parks and Keichemark currency
C

private property as may be requisitioned, seised, or otherwise

or coins in their possession. Allied Military marks and
1

Reichanark currency and coin now in circulation in Germany

acquired, by Allied authorities for reparations or restitution

will be legal tender without distinction and will be inter-

purposes.

C. To prohibit, or to prescribe regulations regarding, transfer

changeable at the rate of 1 Allied Military park for
sark. Heichakredi tkassenscheine and other German military

or other dealings in private or public securities or real estate

currency will not be legal tender in Germany.

or other property.

d. To close banks, but only for & period long enough for you to in-

b. You will receive separate instructions relative to the currency
which you will use in the event that for any reason adequate

troduce satisfactory control, to resove Nazi and other undesirable

supplies of Allied Military marks and Beichanarice are not

personnel, and to issue instructions for the determination of

available, or if the use of such currency is found undesirable.

accounts to be blocked under sub-paragraph 6d below.

e. To close stock exchanges, insurance companies, and similar

C. You will not announce or establish in your sone, until receipt

financial institutions for such periods as you dees appropriate.

of further instructions, any general rate of exchange between

f. To establish a general or limited noratorium or moratoria only

the Reichanark on the one hand and the U.S. dollar and other our-

rencies on the other. However, a rate of exchange to be used
exclusively for pay of troops and military accounting purposes
in your time will be communicated separately to you.

-

to the extent clearly necessary to carry out the objectives of
Allied Military Government.

lie Resumption of partial or complete service on the internal public

3. Subject to any agreed policies of the Control Council, you are

debt at the earliest feasible date is deemed desirable. You will endeavor

authorised to take the following steps and to put into effect such further

to secure agreement in the Control Council as to the time and manner of

financial measures as you may deen necessary to accomplish the purposes

such resumption.

your occupation:

5. You shall take no steps designed to maintain, strengthen or operate
the Garcan financial structure accept insofar as may be necessary for the

RECISION

TRADE MARK

MICROSTATI

MICROFILM

BOLL NO.

115
114

of Allied Military Government.

d. You will impound or block all gold, silver, currencies,
purposes specified in this Directive.

securities, accounts is financial institutions, credits,

6. Subject to any agreed policies of the Control Council,

valuable papers, and all other assets falling within the

a. You will prohibits

following categories

(1) the payment of all military pensions, or other

(1) Property owned or controlled directly or indirectly, is

emolumenta or benefits, except compensation for

whole or in part, by any of the following:

physical disability limiting the recipient's ability

(a) The German Reich, or any of the Lander, Gaue or

to work, at rates which are no higher than the lowest

provinces, any Kreis, Municipality or other similar

of those for comparable physical disability arising

local subdivisions or any agency or instrumentality

from non-silitary causes.

of any of then including all utilities, undertakings,

(2) the payment of all public or private pensions or other
emoluments or benefits granted or conferred
C

(1) by reason of membership in or services to the

former Nasi party, its formations, affiliated associations or supervised organizations,
(11) to any person who has been renoved from an office

or position in accordance with paragraph o of part
1 or paragraph 10 of this part, and
(111) to any person arrested and detained in accordance

with paragraph 8 of part 1 during the term of his

arrest, or permantly, in case of his subsequent
conviction.

b. You will take each action as may be necessary to insure that

all laws and practices relating to taxation or other fields

I

public corporations or monopolies under the control
0

of any of the above

(b) Governments, nationals or residents of other nations,
including those of territories occupied by them, at
1 September 1939,

(e) The Nazi Party, its formations, affiliated associations and supervised organisations, its officials,
leading members and supporters

(d) All organizations, clube or other associations
prohibited or dissolved by military governments
(a) Absentee owner's of non-German nationality including United Nations and neutral governments,
and Germana outside of Germany's

(f) Any institution dedicated to public worship, charity,

of finance, which discriminate for or against any persons be-

education or the arts and sciences which has been used

cause of race, nationality, creed or political opinion, will

by the Nazi Party to further its interests or to

be amended, suspended, or abrogated to the extent necessary to

cleak its activities

eliminate such discrimination.

c. The German authorities will be held responsible for taking

such measures in the field of taxtion and other fields of
public finance including such restoration of the tax system
and maintenance of tax revenues at the highest practicable

level as will further the accomplishment of the objectives

(g) Persons placed under detention or other types of
oustody by you, and all other persons specified

by military government by inclusion in lists or
otherwises and

PRECISION

MICROFILM

TRADE MARK

ROLL NO.

O

116

117

B

-5receipt of further instructions, authorize any outlay of German

(2) Property which has been the subject of transfer under duress

or wrongful note of confiscation, disposition or spolistion,

foreign exchange assets upon imports, including those from neutral

whether pursuant to legislation or by procedure purporting

countries, and will not authorise payment in Germany's foreign

to follow forme of law or otherwise;

exchange for any other purposes, except where clearly and urgently

needed to further the agreed objectives of the Allied Military

(3) Works of set or cultural material of value or importance,

Government. You will establish effective controls with respect

regardless of the ownership thereof.

You will take such action as will insure that any impounded or blocked

to all foreign exchange transactions, to effectuate the policies

assets will be dealt with only as permitted under licenses or other

of this Directive, including:

instructions which you may issue, In the case particularly of property

(1) Transactions as to property between persons inside Germany
and personal outside Germany's

blocked under 1 a above, you will proceed to adopt licensing measures

(2) Transactions involving obligations owed by or to because

which while maintaining such property under surveillance would permit:

due from any person in Germany to any person outside

its use in consonance with this Directive.
C

C

7. All foreign exchange transactions, including those arising out of

Germany and

(8) Transactiona involving the importation into or exporte-

exports and imports, shell be controlled with the sis of preventing Gereany

tion from Germany of any foreign exchange asset or other

from developing a war potential and of achieving the other objectives set

form of property.

forth in this Directive.

0. No extension of credit to Germany or Germans by any foreign person

(a) To effectuate these purposes, you will, is addition to other
measures stated in this Directive, reduce to the possession

or Government shall be permitted except that the Control Council may is

and control of a special agency established by you, within

special energencies grant permission for such extensions of credit.

your command, all German (public and private) foreign exchange

2. It is not anticipated that you will make credits available to

assots of every kind and description located within or outside

the Heichsbank or any other bank, or to any public or private institution.

Cermany for disposition as reparation or restitution or for other

If, in year opinion, such action becomes essential, you may take such

purposes as determined by appropriate authority. As U.S. member

emergency actions as you may deen proper, but in any event, you will report

on the Control Council you will endeavor to have similar agencies

the fross to the Control Council.

for the same purpose ostablished in the other somes of occupation

I

10. In addition to the provisions of paragraph . of Part I of the

and to have them merged as BOOD as practicable in one agency for

basic directive, you will eliminate other undesirable personnel and in-

the entire occupied territory

fluences from the Heich distory of Finance and from all public and private

(b) Subject to any agreed policies of the Control Council, you will
prohibit, except as you may permit by regulation or license, all

dealings in gold, silver, foreign exchange, and all foreign change transactions of any kind. You will not, however, until

financial Institutions, agencies and organizations.
11. Too will maintain auch accounts and records as may be necessary to

reflect the financial operations of the military government in your some

PRECISION

TRADE MARK

MICROSTAT

MICROFILM

BOLL NO.

O

-7and you will provide the Control Council with such information as it
may require, including information in connection with the use of
currency by your forces, any governmental settlements, occupation coats,

and other expenditures arising out of operations or activities involving participation of your forces.

118

120
SECRET

TREASURY DEPARTMENT

Memorendum of a meeting in theoffice of Lord Keynes,
British Treasury, whitehall, March 7, 1945.

INTER OFFICE COMMUNICATION

DATE April

Present:- U. K. Representatives
TO

Secretary Morgenthau (for information)

Loro Maynerd Keynes, Treasury Department
Sir Wilfred Eady, Treesury Department
10". P. 5. Harmer, Treasury Department

Mr. Coe

Subject: Rosensan-Keynes Conversations
U. S. Representatives

Lord Keynes stated during these conversations that:

Judge Sesuel 1. Rosensan, White House
Mr. D. M. Phelps, State Department

1. The British do not intend to use 3 (c) of the

Lend-Lense Act to obtain post-war credits. Keyner has BUGgested that further conversations be held in Washington this
summer or after hostilities in Europe are over to discuss
financial arrangement which shall supersede lend lease. In
this connection Keynes said that the post-vai situation would
call for a "brain wave" similar to the one the President had
had in 1940 when lend lense was evolved.
C

12. 4. n. Taylor, Treasury Department

The meeting with Lord Keynes neo been arrenzed at
the suggestion of MT. Hermer in order that the Judge
stent have an opportunity of exchanging views with
Lord Keynes of the British Treasury. Judge Rosenmen
explained briefly the purposes of his mission stating
that be had osen requested by the President to proceed
to Europe and examine the situation in respect to re-

2. Keynes asserted that Britain would need financial
assistance during the post-war period: that Britain's 108965

guirements for civilian supplies in the liberated areas.

as B. result of the VOI were of the same magnitude 8.0 the
reparations that Russia had requested should be placed upon

The President had also requested that the Juding should

discuss with the representatives of the liberated areas
the problems relating to their needs for financial
assistance in paying for civilian supplies and in rehabilitation and reconstruction in the post-war years.
The Judge stated that it would be helpful in this regard
if we could optain from the British Treasury any information they might care to make available in respect
to Great Britain's financial programming for Phase 3
that 18, whatever financial assistance Great Britain
might intend to make available to the liberated areas
together with P statement of the financial assistance
that Great Britain herself might require in the period

Germany at the Yalta Conference In view of Britain's heavy
burden of international indebtedness Britain VILE not in a
position to consider long-tors credits to any other country.

following termination of hostilities in the Pacific.

0

It was the Judge's hope that we might be able to discuss
these matters in B strictly general and informal way -and off the record.
Lord Koynes said that be did not think the present

121

122
o

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zone -- stockpiles or land-lease origin in the UK, goods
in the pipeline, goods manufactured but not yet shipped,

was timely for A discussion of the financial aspects
of these problems. He stated that in the Phase 2

goods in process of manufacture, goods for which contracts
had been negotiated in the U.S. out which hed not yet been
menutactured. Lord Keynes felt that the question of food
and or civilian supplies of lend-lesse origin were particulerly significant and would have to be dealt with on some
basis that would be mutually satisfactory to the American
and British authorities. Lord Keynes stated that at the
present time lend-lesse aid to Great Britain W85 running
somewhere in the neighborhood of 86 billion e year. He

negotiations that ned been conducted in Washington in
November of 1944 that the President had informed him

that he did not think questions of post-war financial
commitments should be discussed during the midst of R

military campaign. Lord Keynes stated that the Britien
were very much interested at the present time 10 the

question of the renewal of the Lend-Lesse Act by Constate
and also in the question of the Congressional appropriation that would be voted for lend-lease. Lord Keynes
stated that the British Treasury did not have an BETROO
finencial policy beyond Phase 2. the matter ned not
been conversed within the British Treasury although

estimeted that the total vol. of commodities in the pipeline might approximate Sk billion at any one time and that
If the stocks of goods in the UK of lend-leese origin were
added it would neesurably increase the values involved.

individual officiale had been giving the letter serious

consideration. 118 said that he would be happy to offer
some of his observations in respect to the financial
problems of the post-war period providing Judge Rosensan
understood clearly that these were merely in the nature
of personal constants and not to be given any publicity

0

Besides the problems of the twilight zone Lord Keynes
noted that there were anny imponderables in the present
situation which would have to be taken into account. Amongst
these ne noted the following:

or circulation. sir Wilfred lady confirmed that the

Treesury did not have an agreed policy and adidad that
he thought IT might be helpful If Lord Keynes were to
offer some of his personal observations in respect to

these matters. Lord Kaynes stressed that the British
did not think that land-lease would crove to be 8 satisfactory arrangement during Phase 3. in this connection
he montioned that the British did not intend to pursus
a policy similar to that of Frence of netra Section 30 of
of the Lend-Lesse Act 98 8 vehicle for the obtaining
post-war credits. Lord Keynes stated that it 10.8 his
view that lend-least and reciprocal nic should come to
an end with the conclusion of hostilities against Japen.
Lord Keynes observed, however, that it 70.8 obvious
that land-lease could not be terminated the day hostili- he
ties ceased. There would be en interim period which

referred to as a twilight zone during which lend-leas
and reciprocel eid would have to be continued and during
which a great many problems would arise, some of which Sir

would be of a very complex and difficult nature.
Wilfred Eady distinguished the following categories of
goods which would have to be dealt with in this twilight

1.

The rate of conversion or British industry from

wer preduction to consumption and export requirements.

2. The necessity of transferring great numbers of
men end equipment to the Pecific theater of NOT upon the

conclusion of hostilities in Europe.

3. The rate at which the repetriation and demobili-

zation OZ troops took place with consequent augmentation
of one labor force.
4.

the war.

The amount of the sterling balances at the and of

5. The nature of the negotiations terminating lend-

lease and reciprocal aid arrengements.

Lord Keynee stated It 85 his view that there would be
no great volume of labor available for use in Britain upon
the termination or nostilities in Europe. Sir Wilfred Redy
stressed that the Prime Minister had indicated what WBS to

124
123
0

for the export trade, true paving the way for Britain's

return to a position of economic and supply importance
in the affairs of the world. Questioned by Judge Rosenmen
OF to met the nature of the "brain weve" should be, Lord
Keynes indicated that no aid not think it desirable to
say anything additional about this subject et the present
time. be felt that the problem wes primerily one for the
Americans to consider and felt that the suggestions should

C

heppen when no informed the President that the British

were going "to TO all out" in the Pacific ser. it SES
unlikely that the precent restrictions on civilian

consumption, rationing and price control would be
appreciably nodified in the period immediately subsequent
to the conclusion of the European mr.

COMP from them. The proposed arrangement in order to be
acceptable to the American people would have to be one
that WED obviously American by origin and temperament.

Lord Keynes stated that tin considered the problems
concerning the termination of land-lease and reciprocal
aid arrangements and the question of what type or finenciel assistance W9B to supersede lend-lerse so important
that he unived that further conversations and consultations
about these letters should be held in Weshington in the

Lord Keynes wes asked if Britain would attempt to
make use of the borrowing facilities creeted by the
International Fund or the International Ben, and If
consideration had been dven to the cuestion of borrowing on the commercial markets of the world. Lord Keynes

early summor or this year or shortly efter the and of
hostilities in Europe.
Lord Keynes seid that upon the termination of
hostilities with Jecen there would be . need for some
new arrengement for American financial assistance.

stated that in respect to these international finencial

He

organizations Great Britein would DO P contributor rather
than E borrower. He stated that the Fund WES being set

O

up with the primery objective of stabilizing international
exchange races and that the countries of the worzo other
than the U.S. no U.K would be the grestest claimants
on the Fund. The funds placed at the Bank's disposal
would OR primarily for the development of the resources
of the backward pross of the world. Clearly Britain did

reiterated that the British were unmilling that lend-

lease should oe continued. 118 thought It 285 absolutely
essential, however, that there should be no reversion to
the ordinery type of conservial loan. Va melo that he
and informed the President when DA had spokan to tim in

not rell within this category. Lord Keynes felt that

(

November 1944 that anst WHE needed WHE for the President

thousan some of the other countries or the world might
wish to borrow on the capital markets of the world he did
not see now this would offer any effective solution to
the capital naeds of Great Britain in the post-war period.

to have E "brain weve" out or which would come sone naw
financial arrennment which would be successful in placing
world economy in e position to function in P manner gatisfactory to both the British and American Governments.
He stated that the President and such 8 brain REVO in
1940 when be davised lend-lease na the instrument of
making funds EDD 20008 available to the countries natively
enceped in fighting the mer. Lend-19880 nec successfully
lifted the question or financial end economic essistance
out of the levels of commercialism end BRO developed en

o

effective aschine that was e righting weapon in Itself.
The present callao for 8 new "brain weve" which would to
neither lend-lease nor commercial credits. There could
be no question out that Britain yould need financial
assistance in the post-war period and financial assistance
of a type that would allow her to buy needed rew materials
from the markets of the world end reconvert her industry

Loro Kaynes ONE asked it it WBR the British intention
to resume her position BE an International creditor
through renting loane to other nations in the post-wer
period. Lord Keynes remerced that it would be an essen-

tial adjunct in the finance of British exports to other

O

nations that Britain should wake short term commercial
credit arrangements which would be in keeping with the
type of goods involved. Thus certain types of exports
or varying life expectancy would be financed under flexible but besically short term credit arrangements.
However, for the time-being Britain would not be in a

126

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125
0

that Britain was the only United Nation which would
emerice from the wer with a heavy burden of international
indebtedness. The other United Nations might have large
internal debts but they had not contracted obligations

C

position to make loans as such to other nations.
Britain would be 0 borrower herself and It would tend

to impose too grant P strain upon British facilities

to the world at large. Britain was in the position of a

to expect nor to undertake financing of 9 long-term
character in respect to other crees of the world.

desperate creditor who had to find a remedy by one means

or another and, ano, in the event that satisfactory

arrangements could not be effected, would obviously
Bettle upon other alternatives no metter how bed they

Lord Keyner took this opportunity to comment on
the Bretton Goods financial proposals. He said that

British Treasury officials are following closely the

might be.

course of the Bretton Woods legislation before Congress

Lord Keynes stated that Great Britain's international indebtedness through sterling balances as a
result of the war was currently about $12 billion.
This indebtadness would increase with each month the

and were hopeful about the situation. He said that unfortunately in the U.K. there was a great deel or vocal
opposition to the Bretton Woods Monetary Agreements.

This opposition was induced in large part by 8 feeling
that neither the Fund nor the Benk offered an effective
solution to England's post-war economic end financial

war lasted and its ultimate level st this time could
not be detarminod. He said that the British did not look
formers to any considersole alleviation in the rate of
increase of their external debt BE 8 result of the
tarmination of hostilities in Europe for the British
were insistent that they were going to use their men and
equipment for cerrying the war to Japan. Futhermore,
even men the hostilities in the Pecific cessed this

problems. He said that England had thrown everything

she bad into the war without reservation. gland was

now destitute and without resources. Meny Englismen
were unable to understand what measures could be taken

to correct this situation and, hence, tended to fell

back upon e theory of imperial trade and preference and
bilaterel arrangements with other nations. Such views
had found expression in debates in the House of Parlie-

did not necessarily mean that an automatic stop would

occur in the rowth of Britain's International indebtedness. He stated that, including Canada but excluding
the U.S., Great Britain was spending for troop pay and
corvices to their armed forces in verious parts of the
world over A billion P year. This expenditure would
continue until the members or the armed forces were
browtht home and demobilized. HA was not senguine over
the repidity over which either the men could be trans-

ment. In order to elley a greet deal of this criticism

and feeling, Sir John Anderson ned held the third of a
series of meetings with important members of parliarent
yesterday afternoon. At these meetings Sir John Anderson
had explained cerefully and clearly the purposes and
necessity for both the und and the Hank and the part
that Great Britsin would play in these organizations.
The opposition of these Perlimentary representatives
to Bretton Woods had lossened pupreciably as e result
of these talks with the Chancellor of the Exchequer
but there ned been no lessening in the concern that
these Parliamentary representatives expressed esto
what #88 going to happen to Britain in the post-wer
period. The present sentiment in England in revor of
tariffs, imperial preference end bilateral arrencements
did not stem from belief in these things 85 such but

(

rather from the inability of people to think their way
clearly through the innumerable problems that would
confront England in the post-war years. He asserted

port or demobilization take place. He said that he
thought probably Canada could be excluded from this
picture because Caneds her offered mutual assistance

to the U.K. In that event, the annual rate of increase
for pay of troops end other only services would be
in 0X0051 01 $3 billion. growing out of these remarks

0

Loro Keynes said that on had suggested during the
November discussions in ashinston that upon the coming
of peace probably there should be a recenvessing of the
question of the burden of war costs and e redistribution

and reallocation of these costs. Asked If he would care

-8.

127
:

to comment further upon this subject Lord Keynes etated

128

under such circumstances. Nor could His Majesty's
opposition urge an extensive relaxation of the controls
without assuming 0 responsibility of interfering with
Britain's war effort in the Fer East. Lord Keynes also
seid that or course it would be necessary following VR
day to turn over such production facilities 85 might
becore aveilable, through 8 cutting back In war production,
for the export trade. Britain lived by exports and it
must return to the commercial markets of the world 85
rapidly 0.8 possible. He said that for as long 8 period
8.6 could be foreseen at this time the problem in relation
to exports would be one or an inability to produce 85

that the only additional recerk that he sould care to

make in this regard was that some Allies and depend-

enclos hed tended to take the view tist this was "our"
that 16, Britain's wr. it would be necessary to 10canvass this situation and nee what could be done about

It. At this point Sir Wilfred may said that President
Roosevelt usd also referred to this potentiality in
speaking of n nocessity of security coorifica for all"
Sir Wilfred Endy remarked that, or course, it would not
be possible to bring A bout equel secrifica for all but
that certainly greater Justice could be done to some.

much 85 the nations of the world could consume. The
years Immediately following upon victory in Europe would
be 0085 of gancral scarcity or goods throughout the world.

At this point in the discussion Lord Kaynes 358
raked IT ne would care to estimate the overell indebtedness that Britain ned incurred BB 8 result of war. Lord
Keynes replied that the only thing that he could ESY WBE
that Britain's losses B.B n result of the sur were of the
same maniture BE the reperations that Puests red re-

He stated that the goal that the British were striving
for in the export market NOB to increase exports five times
over their present physical volume.

quested should 08 pieced upon Germany at the Yelte Conference. The Russions had summerted n progrem of re-

Lord Keynes neked Jud e Rosenmen is he mes going to
interest himself in the question or UNERA. Judge Rosenmen

perations that in Its immunities was sta Prink.

replied that he wes naturally interested in the question
or UNREA to the extent that it would effect supply operations in the liberated areas. Lord Keynes stated empostionlly his view that UNERA had failed in its mission.
For over e year the nations of the world have been lookin to UNERA to help them in the relief of the destitute
and the provision of medical supplies for the weak and

Lord Keyner stated that one of the most Important
factors in discussing Britain's post-war economic and (in-

snetal position WES the national political situation.

Ha seid that for F long time the Government had been

telling the people that an election would be held within
a for manks or months or the termination or nostilities
in Europe. Lord Keynes was Inclined to on extremely
sceptical of oftner this vision or the Tizelihood of en
election being hold within the Bistad period. He paid
that, in view of the bariends that the Pacific FET would
place upon the production recilities of rest Britain
for a continued flow of FBT asterials and In view of
continuing sanpower shortaias EE a result of the trans=
forence of troope to the Pecific theater, it would be
necessary to continue in force, and without essential
modification, the present controls restricting civilian
consumption to the bare essentials in food, clothing,
and the scentities of life. Such restrictions would
certainly be resented by the British people and he
doubted is the Government would dare to O to the country

-9-

disabled. To date UNREA her done nothing except engage
in 9 nost or excuses that could be adjudged BE nothing

other than "clibi's" for its own inefficiencies. He

felt that the ineffectiveness of UNRRA derived largely
from two things. The first of these WES the failure of
the U.S. end the U.K. (he mentioned in this connection
Deen Acheson and Richard Law by name) the largest con-

tributors to UNHURA to insist that their point or view
should be adopted at the Atlantic city Convention at

which the charter and the terms of reference of UNERA
:

were agreed to. He said that BB a result of this
failure, the claimant nations who really were contributing
nothing to UNRHA had been mole to put over their own

point of view. He said that it WBR extremely ridiculous

that such ex-enamy countries 0.6 Itely, Bulgaria, Rumania

(

:

11 -

129

130

()

of sovereignty. Judie Rosensan also called attention to
the fact that the Allied Military Authorities had refused

- 10

C

to allow UNERA to commence operations in the liberated

areas during the military period -- the military period

and Hungary should have been excluded from UNERA

was generally understood to be six months from the date
or active military operations in any ATHS.

operations. He said that he could understand the
reason for the exclusion of Germany from UNREA

operations inesmuch as It might be necessary to treat

Lord Keynes stated that, in any event, the British
did not feel that they could contribute more to UNERA
than hed already been earmarked. He pointed out that

Germany 8.5 S separate case. The second reason for the
ineffectiveness of UNIVAL was the complete incompetence

of the present administration and its inability to come
to grips with practical problems. He spoice of IRREA
BE "the outstanding international failure of the wer
period". Because of UNERA'S attitudes and policies

larue British territories in the Far East, such 85

Burne, inleys, Honi Kong and Borneo which had been under
Japenese occupation for three years or more would require
extensive everyoney and relier shipments or foods, medi-

the nations of the world had cons to think of UNERA 05

cines, clothing and other vitelly essential materials.
Lord Keynes estimated that the total of these supplies
would DR in the neighborhood or 5 billion dollars.
Sir Wilfred Eady agreed with this estimate.

a policing organization -- one which would limit their
procurement of materials through screening rather than
an ^reanization which would sid them in relier and TAhabilitation. Both Lord Koynne and Sir diffred Eady
thought that there WELE still en o portunity of taking
UNREA an effective international organization. UNREA
was the natural body which should have control of the

O

Wm. H. Taylor

equitable distribution of civilian supplies to the
claimant nations in the post-war period and of Beeing
to it that some nations did not obtain civilian supplies
at the expense of others. However, such 3 progress could
be successfully instituted only under . new and more

effective administration.

Judge Rosenman s old that though UNREA might be

justly criticized for some shortcoming nonetheless no
felt that nome of the remarks that had been trade should
be more properly directed st the egreements reached DY
the United Nations in the mastinks of the General Assembly
of UNRA at Atlantic City and Montreal. He called
attention to the fact that UNREA was expressly prohibited
from providing relief end rehabilitation supplies to exenemy countries. This provision had been modified at the
Montreal Conference to the extent of ellowing UNERA to
spend 560 million for operations in Italy. Judie Posensan.
further pointed out that UNIHA was also prohibited from
carrying on activities in any national area without the
express consent of the Government of that area and that
(

most governments had come to look upon the request of

UNHEA to be allowed to supervise the distribution of
goods of UNREAL origin as an infringement of the principle

O

DEPARTMENT

INCOMING

OF

TELEGRAM

131

TREASURY DEPARTMENT
C

DIVISION OF
CENTRAL SERVICES
TELEGRAPH SECTION

STATE

INTER OFFICE COMMUNICATION
DATE

TO

Secretary Morgenthnu

FROM

Mr. Coe

Washington.

2978, March 22, 9 p.m.

pound credit would probably be given to the Czeche increach
as this WEB a pre-ver commitment. but a credit request from
the Turkish Government hns been refused. No other European
countries have approached the British for credits, according

by a program of Government sponsored long-term credite this
statement of credit policy by the U. K. Trensury cannot be

accepted as the unaltered British post-war position. It
clearly appears that the Britinh are deliberately holding
back on revenling their post-wer financial plans with record
to Europe until U. discussions on the financial arrangements which will supersede lend lense, are completed. The
British are obviously waiting for the "brain wave" that
Lord Keynes mentioned to Judge Rosenman before disclosing

their lending plane. It is obvious that they do not wish to
injure their claim to U. S. financial aid on the basic of
their "debtor" position.

Rec'd 11:59 p.m.

Secretary of State,

1. The U. K. Treasury has informed the U. S. Treasury
Representative in London that Britain's financial position
will not permit her to extend credito to Europenn countries
after the var. The U. K. Treasury stated that a 5 million

2. In view of the ineistence of the British financial

Dated March 22, 1945

other than a Governmental
agency. (SECRET 0)

SUBJECT: British Post for Foreign Lending Policy

community that Britain boleter her post-vnr export position

London

communicated to anyone

al

to the U. K. Treasury. It was conceded that exceptions to
this credit policy night be made for political reasons, no
in the case of the offer of a 30 million pound short term
credit to the Russians.

GEM-63

This telegram must be
paraphrased before being

FOR SECRETARY OF TREASURY FROM MANN

Reference to your 1936, March 13.
0

One. Sir David Waley states that in general
the United Kingdom because of United Kingdom external

financial position will not be in a position to extend
credits to European countries. The United Kingdom

Treasury appreciates fully the need of the liberated
countries of Europe for credits to obtain the imports
necessary for restocking and reconstruction but feels

that these countries "should look to credit_or nations
like the United States and Canada for necessary loans

and not to debtor nations like the United Kingdom.".

Two. According to Waley it will be necesary in
the financing of British exports to provide arrangements for short term commercial credits but the

-2-#2978, March 22, 9 p.m., from London

-3-#2978, March 22, 9 D.M., from London

133

emphasis will be on selling British exports for
cash whenever possible. He did not elaborate on

:

the other European countries have approached the

British for credits.

what such arrangements would be put emphasized that

while flexible enough to cover all types of goods
the credits would be basically short term in nature.
Three. Waley states that a credit of about
5,000,000 pounds will probably be given to Czecho-

Six. with regard to France you are referred to
the Anglo-French financial agreement which Waley

states was made available to you in Washington on
March 21, 1945.
WINANT

slovakia because of a pre-war commitment on the part
of the United Kingdom when Czechoslovakia made its

gold available to the United Kingdom.
Four. Reference to Embassy's 1749, February 20

to the Department. British have still not received
a reply to British proposal of short term credits
in the neighborhood of 30,000 pounds. Waley mentioned

that the proposal was made largely as a political
gesture and suggested that it may prove necessary

for political reasons to make exceptions in the case
of other nations to the United Kingdom Treasury policy
of not extending credits.
Five. According to Waley the Turkish Government

approached the British with a view to obtaining credits
and was immediately advised by the British that they

were not in a position to extend credits. None of
the other

WMB

134

135

TREASURY DEPARTMENT

136

April 9, 1945

0

INTER OFFICE COMMUNICATION

DATE April D. 1945

Dear Lieut. rutzell:
TO

FROM

1 as writing to acknowledge

Secretary Morgentbau (For Information

receipt of your letter of April 6

11th Con FC

Mender-France list finally resigned from the French
cabinet. Fleven in taking STAT the Ministry of National
Economy in addition to the Finance Ministry. The any after
Ein resignation l'endop-France gave 0 statement to the 17025
In which be attacked the financial polley of Please and said
that It FAR leading France into an Inflation which would wipe
out the Fresel nicel class.

Berne. still with radiotelephone which and Secretary was from message enclosed washington, Morgenthau #291 . copy but from is of

soon as be returns to his desk 1

as

shall bring your letter and its enclosure to his attention.
Yours sincerely,

It is expected that Fleves =111 be in this country for

(Signed) H.S. Klots

the San Francisco conference.

a. J. Klots,
rrivate Secretary.
0

Lieut. L. J. Putzell, Jr.,

Acting Executive Officer
Office of strategic Services,
Mashington, D. C.

(

137

RESTRICTED
OFFICE OF STRATEGIC SERVICES
WASHINGTON D.C.

6 April 1945

Honorable Henry Morgenthau, Jr.

The Secretary of the Treasury
Treasury Department

Washington, D. C.

My dear Mr. Morgenthau:

I am forwarding, as being of possible
interest to you, copy of radiotelephone message
#291, dated 5 April 1945.
It was received last night from our
representative in Berne.
Respectfully yours,

Lt. (jg), USNR

Acting Executive Officer

Enclosure

RESTRICTED

TRADE MARK

I c ROSTAT

NO. U.S.PAT. ON

MICROFILM

ROLL NO

138

OFFICE OF STRATEGIC SERVICES
OFFICIAL DISPATCH

(091
DATE

5 April 1040

PRIORITY
HBO

FROM

ROUTINE

Herno

DEFERRED
TO

DIRECTOR OFFICE OF STRATEGIC SERVICES

DISTRIBUTION

OFFICE INFORMATION

AFOR ACTION

RESTRICTED

--

RECEIVED IN PLAIN TEXT

RESTRICTED
GERMANY

According to reports received today from exonllont

Hitler is still at or neez Berlin with Borman and his chief advisors.
He is said to be endosvoring to reach 6 final decision, whether to make
last atand with his troops at Herlin, or to leave for the German reIt coors fairly cleez to at the German lave atendoned as hopelean any organized defense in the west but are still opeful of will
in off the Hussiana for # 0630 little tine longer It is cusior to Induce
the Certan soldier to keep up a hopeless rist arminal tue Lumpians
than it in eminst tie Americans and Tritish the 1000 score to be fairly
provelent in German Ulat for the soldiers taken risoner by the Sussiana
years of labor in Russis or Biber 10 no. be their fate. On the other hand,
it is generally bolieved that, 10 one becomes prisoner of to Americans
or Titish, tion, after brief period or ceptivity under comfortable
conditions, there 18 4 prospect of ourl return to Germany
0

PRECISION

Strange as it NGV soon, there is no conolusive evidence of
general and violesale avacuation of cover resent bureaus from Derlin.
Noat departments of the government still love their chief odministrative
centers there as yet, but not vary much to do. Ea oh department has one or
more places of retreat already chosen and with some personnel already
shifted to these retreats, However, the movement away from Berlin by
government personnel has been thrown into some confusion now
by the rapid
are name threatened
advance of our forces inforthegovernment
West, with departments
the result that
places
as
chosen
being
with

safe

refuges

overrun

by

our

forces.

No

general

movement

of

government

offices to the roduit has as yet been established, but a great many
high Nani officials have apparently moved their familion More.

RESTRICTED

140

139

Table 1

April 9, 1945

0

Increase in income tax attributable to application of
formula for allocating bank exement between taxable

MEMORANDUM FOR THE SECRETARY

and tax-exeapt income -- selected banks, 1943

Fron: Mr. Blough

Income tax

Subject: Taxation and bank earnings, allocation of
expenses between taxable and tax-exempt

Bank

income

Assets

After ap-

Before ap-

end of 1943

plication
plication
of formula of formula

$3,689,894,466

$5,126,123 67,012,393

This memoranium is in response to your request

of April 2 for examples illustrating the operation

Percent increase attributable
to formula

Large

of the formula for allocating bank expenses mentioned

in my semorandum of March 24. Under this formule,

I

an allowance would first be made for special expenses
accused to be associated with loans and special
departments. The balance of expenses would then be in
allocated between taxable and tax-exempt income
the ratio of tax-exempt income to total income.
Expenses allocated to tax-exempt income would be dis-

36.8

II

1,352,853,173

1,307,286

1,832,527

40.2

III

768,390,934

1,592,310

2,025,324

27.2

123,235,934

154,829

210,737

36.1

111,138,550

150,973

187,211

24.0

106,613,265

127,970

156,211

22.1

allowed for tax purposes. (For details of the formula
sec appendix.)

IV

V

VI

Small

VIII

5,294,487

1,322

5,261

296.0

4,422,226

1,723

3,626

110.4

exempt securities.

Attachments

Treasury Department

Division of Tax Research

0

--

6,932,975

IX

Further study may reveal the necessity of refining the formula, which 14 based on somewhat arbitrary
assumptions, to allow adequately for special expenses
on loans as distinguished from investments.

3,468

VII

0

The formula has been applied on a preliminary
basis to 3 large, 3 medium-sized, and small banks.
The effect of its application on the 1943 income tax
of these banks 10 summarized in Table 1. Further
details of income for each bank are shown on the
separate sheets attached. It has not been possible
to determine accurately the effect of the formula on
the excess-profits income of these banks, but it 16
probable that some of then would be made subject to
excess-profite tax.
It should be pointed out that the effects of the
formula as shown in these examples may be substantially
overstated. This 18 because the tax-exempt incose
reported on the tax returns is not always adjusted to
take account of premiums ordinarily paid for tax-

Medium
0

April 9. 1945

142
141
0
C

Application of formula for allocation of bank

expenses between taxable and tax-exempt income

Application of formula for allocation of bank

excenses between taxable and tax-exempt income
Bank II

Bank I

Assets, and of 1943 .
$1,352,853,173

Assets, end of 1943
$3,689,894,466

1. Income, 1943
1. Income, 1943
Taxable

Tax-exempt
Total

Taxable
Tax-exempt

$ 9,277,744

Total

13,847,245

$1,385,385

4,947,768
$6,333,153

$23,124,989

2. Income tax, 1943
2

2. Income tax, 1943
C
a.

a.

of formula

of formula

c. Percent increase
attributable to

7,012,393

0. Percent increese
attributable to
formula

$1,307,286

b. After application

8 5,126,123

b. After application
of formula

Before application
of formula

Before application

formula

1,832,527

40.2 .

36.8 *

The effect of the formula may be substantially
overstated, since it is not certain that adequate

The effect of the formuls may be substantially
overstated, since it 18 not certain that adequate

allowance has been made for bond premium on

tax-exempt securities in reporting income on
the tax return.

allowance has been made for bond premium on

tax-exempt securities in reporting income on
the tax return.
0

PPRECISION

TRADE MARK

MICROSTATRO BOLL NO

143
144
C

0

Application of formula for allocation of bank

Application of formula for allocation of bank

expenses between taxable and tax-exempt income

Bank III

expenses between taxable and tax-exempt income

Assets, and of 1943 $768,390,934

Assets, end of 1943 -

Bank IV

$123,235,934

1. Income, 1943
Taxable

Tax-exempt
Total

1. Income, 1943

$2,529,985
4,996,734

Taxable

$7,526,719

Tax-exempt
Total

8329,116
479,716
8808,832

2. Income tax, 1943

a. Before application
of formula

b. After application
of formula

c. Percent increase
attributable to
formula

2. Income tax, 1943
$1,592,310
a.

2,025,324

Before application
of formula

$154,829

b. After application
of formula

210,737

c. Percent increase
attributable to

27.2

formula

36.1 .

The effect of the formula may be substantially
overstated, since it is not certain that adequate
allowance has been made for bond premium on

.

tax-exempt securities in reporting income on
the tax return.

The effect of the formula may be substantially
overstated, since it is not certain that adequate
allowance has been made for bond premium on
tax-exempt securities in reporting income on
the tax return.

.

PRECISION

TRADE MARK

MICROFILM

MICROSTAT

ROLL NO

145

146

C

Application of formula for allocation of bank

Application of formula for allocation of bank

expenses between taxable and tax-exempt income

expenses between taxable and tax-exempt income

Assets, and of 1943 .

Bank VI

$106,613,265

Ansets. end of 1943 -

Bank V

$111,138,550

1. Income, 1943
1. Income, 1943
Taxable

Tax-exempt
Total

Taxable

Tax-exempt

$183,352

524,672

Total

of formula

C. Percent increase
attributable to
formula

$409,286

2. Income tax, 1943
Before application
a.

a. Before application

b. After application

141,755

$708,024

2. Income tax, 1943
of formula

$267,531

$

of formula

b. After application

$150,973

of formula

$127,970
156,211

O. Percent increase

187,211

attributable to
formula

22.1 .

24.0 .

.

The effect of the formula may be substantially
overstated, since it is not certain that adequate

The effect of the formula may be substantially
overstated, since 11 10 not certain that adequate
allowance has been nade for bond premium on

tax-exampt securities in reporting income on
the tax return.

allowance has been made for bond premium on

tax-exempt securities in reporting income on
the tax return,

0

.

148

147

Application of formula for allocation of bank

Application of formula for allocation of bank

expenses between taxable and tax-exempt income

Assets, end of 1943 .

Bank VII

expenses between taxable and tax-exempt income

Assets, end of 1943 .

Bank VIII

$5,294,487

$6,932,975

1. Income, 1943

1. Income, 1943
Taxable

Tax-exempt
Total

Taxable

85,262
26,625

Tax-exempt
Total

$21,363

2.

2. Income tax, 1943
a.

b. After application
of formula

Before application
of formula

$ 1,322

b. After application
of formula

83,468

formula

formula

.

The effect of the formula may be substantially
overstated, since it is not certain that adequate

.

allowance has been made for bond premium on

tax-exence securities in reporting income on
the tax return.

5,261

0. Percent increase
attributable to

c. Percent increase
attributable to

o

$61,199

bcome tax, 1943
a.

Before application
of formula

56,574

0

C

$4,625

298.0

The effect of the formula may be substantially
overstated. since it is not certain that adequate
allowance has been made for bond premium on

tax-exempt securities in reporting income on
the tax return.

PRECISION

MICROFILM

TRADE MARK

ROLL NO

150

149
0

APPENDIX
C

Application of formula for allocation of bank

Formula for allocation of bank expenses

expenses between taxable and tax-exempt income

between taxable and tax-exempt income

1. From total expenses (not including capital losses)
deduct

Assets and of 1943 -

Bank IX

a. All service, special department, capital

84,422,226

gains, and miscellaneous income (that 10,
all income except earnings on loans and
investments) plus

1. Income, 1943
Taxable
Tax-exempt
Total

b. Special or differential expenses attrib-

utable to income from loans in the amount
of 30 percent of earnings on loans.

$ 3,383
17,810

2. Allocate the balance of expenses /I - (1a . 1b)7

$21,193

to taxable and tax-exempt interest.

3. Disellow expenses as follows:
2. Income tax, 1943
8.

$

Before application
of formula

b. After application
of formula

C. Percent increase
attributable to
formula

8. Expense allocable to wholly tax-exempt
interest equal to the percentage of Item
2 which wholly tax-exempt interest 1/
bears to total earnings on loans and

$1,723

investments. 1/

3,626

b. Expense allocable to partially tax-exempt
interest equal to the percentage of item 2
which partially tax-exempt interest 1/
bears to total earnings on loans and

110.4

investments. 1/

4. Normal tax
The disallowed expenses should be the total of
items 38 and 3b.

The allowed expenses should be the total expenses

(before deduction of items 1s and 1b) less the

The effect of the formula say be substantially
overstated, since it is not certain that adequate

disallowed expenses mentioned above.

allowance has been made for bond premium on

tax-exempt securities in reporting income on
the tax return.
1/

0

Grone interest minus amortizable bond presium.

.

151

Appendix

-2-

5. Surtax and declsred-value excess-profita tax

152

The dieallowed expenses should be item 3b.

TREASURY DEPARTMENT

The allowed expenses should be the total expenses

INTER OFFICE COMMUNICATION

before deduction of items la and 1b) less the dieallowed expenses mentioned above.

DATE April 9.
1945

6. Excess-profits tax
normal tax (total of items 3a and 3b) unless the
bank elects to include tax-exempt securities in
invested capital for excess-profits credit and 18
therefore required to include tax-exempt interest
in excess-profite income. In that event, all
expenses should be allowed for excess-profite tax.
The allowed expenses should be the same as for

normal tax (total expenses minus total of items
3a and 3b), unless the election mentioned above
is exercised.

TO

FROM

Secretary Morgenthau
J. V. Pehle
FOR YOUR INFORMATION

The attached excerpt from the Congressional Record

for April 5 indicates that Senator McKellar has now
inserted into the Record the letter to him of April
signed by Chairman Gillette concerning the Treasury
Appropriation Bill. You will also note from the attached
2

The disallowed expenses should be the BEER as for

clipping that Jerry Klutt= carried the story of this letter
in his column on April 7.

Attachments

Jose

PRECISION TRADE MARK MICROSTAT MICROFILM

CONGRESSIONAL RECORD

The Washington Post

153

APR 7-1945

Thursday, April 5. 1945

The

Federal
Diary
By Jerry Klutter
SURPLUS PROPERTY

:

O
C

154

156
CONFIDENTIAL

Lend-Leose Operations

FORMIGN ADMINISTRATION

Executive Report No.1

Washington, D. C.

ALLOCATIONS, OBLIGATIONS AND EXPENDITURES

April 9. 1945

LEND-LEASE FUNDS APPROPRIATED TO THE PRESIDENT
Report or of Peb. 28, 1965
(Thousands of Deligra)
MEMORANDER

Adjusted
To:

From:

Appropriation Category

The Honorable Henry Morgenthau

Berbert Willett

Ordnance and Ordenance Stores

Director of Research and Reports
Office of General Counsel

Aircraft and Area. Material
Tasks and Other Vehicles

Subject: Monthly Reports on Lend-Lesse Querations

Watercraft

Miss. Military Equipment

Transmitted herevith are copies of Executive Reports

Production Facilities

on lend-lease operations as of February 28, 1945.

Agric. and Indust. Commodities

Servicing, Repair of Shipe, etc.
Services and Expenses

obligations

Expenditures

$1,467,306

$1,463,009

$1,381,776

$1,302,494

2,486,625

2,479,378

2,364,497

2,201,961

764,273

746,024

713,213

652,153

4,121,703

4,098,470

3,897,542

2,417,704

304,288

300,562

268,362

264,861

1,013,746

1,087,665

1,086,876

1,056,458

16,680,589

16,399,404

13,515,910

11,312,538

790,818

787,468

650,275

470,473

475,000

422,635

337,820

296,724

33,208

32,322

30,434

29,955

26,209,498

27,815,229

24,216,286

19,962,609

Administrative Expenses
Total

Procuring Agency

Bar Department

Cumulative to February 28, 1945
Allocations

obligations

Expenditures

5,414,949

5,234,772

4,909,416

Savy Department

4,315,566

3,398,879

3,104,497

Maritine Commission and Mar Shipping Main.

4,149,777

3,660,261

2,269,138

Treasury Department

6,016,032

4,865,477

4,119,913

Department of Agriculture

7,835,993

6,629,350

5,538,244

Other
Total

:

Camulative to Fabrierz 28, 1945
Allocations

Appropriations

Foreign Econoule Administration
office of General Counsel
Division of Research and Reports

April 1945

82,912

27,547

21,401

27,815,229

24,216,286

19,962,609

158

CONFIDENTIAL

Lend-Lease Operations
Executive Report No. 2
CONFIDENTIAL

STATEMENT OF LEND-LEASE AID
Report as of Fab. 28, 1945

Lend-Lease Operations
Executive Report No. 3

(Thousands of Dollars

type A14
Goods Transferred

Camulative to
Feb.28,1945
$33,813,526

Monta of

Jan. 31, 1945
$32,407,334

LEND-LEASE GOODS TRANSFERRED

Jan. 1945

Feb. 1945

$1,406,192

$997,106

Report as of Feb. 28, 1945
(Thousands of Deliera)

544,887

537,917

6,970

5,582

2,921,826

2,873,615

48,211

166,725

Production Facilities in U. s.

637,743

630,689

7,054

2,170

Ordenne (Excl. Ammunition)

Miscellaneous Expenses

101,727

108,443

6,716

1,779

4,150,664

55,519

178,246

36,557,998

1,461,711

Servicing, Repair of Ships, etc.
Rental of Ships,

Perrying of Atterneft, etc.

Total Services
Total Goods and Services

Cumulative to February 28, 1945

4,206,183
38,019,709

Cr.

Br. Empire

1,175,352

Date on Goods Transferred include value of goods procured free land-lease appropriations
to the President and to the Bar and Mary Departments.

Type ALL
Goods Treasforred

Servicing, Sapair of Ships, etc.

Jr. Empire
24,284,749
378,683

Rental of Shipe

Ferrying of Aircraft, etc.

2,277,372

China

U.S.S.R.

236,146

8,255,339

1,900

15,508

113,597

394,229

Other

1,037,292

Total Goods and Services

52,946

1,224

7,365

544,687

234,717

2,921,826

40,194

Total

$40,411

Ammunition and Components

1,942,016

8,220

465,466

93,890

2,509,592

Aircraft

3,267,135

76,750

1,034,623

178,635

4,557,143

Aircraft Regions, Parts, etc.

1,846,981

24,739

322,418

59.77

2,253,917

Tanks and Parts

2,734,918

1,584

509,707

53,621

3,379,830

938,822

28,383

1,810,159

815,298

27,656

Materoraft and Parta

2,038,357

447

Foods

3,052,290

$1,232,497

329,243

257,388

3,425,435

3,273

1,432,003

58,786

4,546,352

Other Agric. Products

731,136

543

23,164

Machinery

726,343

13,042

1,080,794

18,404

1,836,583

403

755,246

33,813,526
Metals

1,190.44

13,776

683,329

54,615

1,942,164

Petrolean Products

1,630,399

2,872

80,476

13,385

1,727,132

Miscellaneous Materials

637,743

-

Miscellaseous Expenses

Other

$298,659

Total

50,707

Production Facilities in U. 5.

D.S.B.R.

$14,690

Motor Vehicles and Parts

Cumulative to February 28, 1945

China

$878,797

and Manufactures

2,630,695

48,554

976,635

179,592

3,835,476

24,264,749

236,146

8,255,339

1,037,292

33,813,526

101,727
Total

38,089,709

Foreign Economic Administration
General Counsel

Foreign Seomonic Administration
office of General Counsel
Division of Research and Reports

DEVISED

of Research and Reports

April 1945

April 1945

Y

(

-

IMAGE MARK

160
159

(5) The open market rate for United States currency rose
PARAPHRASE OF TELEGRAM RECEIVED

to as high as 750-780 in Chungking, due to the raising of price

FROM:

American Embassy, Chungking via Navy

of gold and the consequent decrease in demand for six month gold

TO:

Secretary of State, Washington

DATED

April 9, 1945

deposits, but has steadied off to 700 since that tine. In running
the rate is 610, the disparity being due to active demand for

NUMBER

593

rupees for buying goods in India to be snuggled over the Ledo Road;
SECRET

rupees at 230 are at a premium over the United States dollar once

The following message from Adler for the Secretary of the

more. Now over 400 are savings certificates and the bond rate. Its

Treasury is transmitted.

February and March allotments have been sold out at 320 by the

This message is relative economic situation in China.

United Clearing Board.

(1) During the month of March there was no evidence of any

retarding of the rate of increase on prices. An increase of 33 1/3
% for wholesale prices in Chungking is indicated by one unofficial

ATCHESON

O

index.

(2) During March note issue CH dollars 246,864 million, which
represents an increase over
February of % while Chungking bank
up
clearings were almost 60%/at CN dollars 1300 billion.
(3) The revenues, CH dollars were 8,000,000,000 during February;expenditures will exceed CH dollars 40,000,000,000 during March.
(4) Sales of gold during March spot 21,000 ounces: 488,000

ounces total of six month deposits. The increase in official price
of gold to CN dollars 35,000 per ounce effective 29th of March
resulted in an increase of the price on the black market to CH
dollars 58,000 by the and of the month. During the last week the
demand for six month deposits has slackened off to 6,000 ounces

daily but it is probable that soon it will pick up again. The
short gold position of the Chinese Government is now one and . talf all
lion ounces,approximately.
(5) The open

for
4-10-45

162
161

- #405, April 9. 1945, from Ankare

PARAPHORE OF TELEGRAM SENT
FROM:

Secretary of State, Washington

American Askare

TO:

DATED

April 9, 1945

NUMBER:

405

the BROTTHINGHOLM. within the framework of the foregoing.

in 0664 the refunees cannot be admitted to Palestine, the Mar
Refugee Board is consulting UNREA to make provision for them at
an UKBRA control case,

The assurances given above should not be used in any way to
SECURIT

encourage refusal of admission of the group to Palestine by the

British, which is the most desirable solution by far.
Please refer to your cable of April 7. No. 473, which

STETTINIUS

as No. 29 was repeated to London.

The American Fabasay is London has been asked by the
Department and the Mar Refugee Board to emphasise with the

Foreign office of Great Byitain the destrability of reloving
Oayman nationals from Turkey from the standpoint of security.
Further, the message states that 11 would be highly desirable

that Jour who have been released from Germany for exchange not
since such an eventmality would seriously

entanger the success of exchanges later on. asida free almost
certain hardship to the people concerned.

You are authorised further, is this connection, to reason
is your discretion, the assurances whic were contained is cable
dated February as, 1944, from the Department, No. 146, and the

following is particulars

(a) Is maintaining refugees is Turkey, the Board
is prepared to render full assistance.
(a) The Board will make every effort to more refugees
from from Turkey to other locations, should such action because

desirable, If the Government of Turkey takes the steps

accessory to facilitate the entry of . substantial number

of refugees.

If. as and when 11 because evident that the 134 refugees na

the may not be admitted to FalesLine, the

repitisioninboard
such assurances
Government
shouldthe
Govern- be
made
yourofdiscretion
and to
forthethe
purposeofofTurkey
indictant
sent of Turkey to receive thes is Turkey pending arrangements for

should the

to some other place. The assurances which are

their contained reneval
is (a)inabove
in your the
discretion
be of repeated Great Britain to
Government
of Turkey
the event
Government

advises that the 134 refugees in question may be admitted to
Faleetine when the quest permits. You are requested to do everything
possible to secure the admission to Turkey of the 134 refugees aboard

WRB:GLM J
Paraphrased
DC/L:LOW: AJ

4-18-45

164
arrangement.

PARAPHERABE OF TELEGRAN RECEIVED

(SECRET #)

as URGENT

FROM:

American Legation, Stockhola

AMERICATION

TO:

Secretary of State, Washington

DATED:

April 9, 1945 (Rec'd April 10th)

NUMBER,

1326

BERN

1392

The following for MeClelland is 490.

SECRET

Reference your no. 1988 and our telephone conversation of

April 6th.

of war now on

The following message for the Mar Refugee Board and

for the Department is transmitted.

Bar Department has agreed to sell Board 206,000 United
States
prisoner
pareels
Switserland,
delivery by Intercross condition
that these
parcels
are in
repackaged
before

and that they will be delivered only to concentration camps.
For Department has requested American Red Cross to earnark these
206,000 parcels for transfer to Bar Refugee Board under arrangesents being worked out between Mar Department and the Board.

It is in response to message from the Department dated
March 27, No. 563.

Conversations have been actively pursued with the
Japanese, the Russiane and the Seedes reference the release

Board must know at once (repeat at once) whether you can

obtain new containers in Switserland for repackaging. If so,
can repackaging be done in sufficient time and in sufficient

quantities to utilise all transportation facilities including

trucks available for Board relief supplies. Board would be

unable to arrange for delivery in Switzerland of containers
shipped from United States for many weeks.

In the mentine, is view of your no. 2009 of April 6,
Board will bring to attention of Bar Department that Intercroes
is of opinion that these parcels could be used as they are with
exception of blacking out of markings, changing labels, etc.

and transport of Fabbinical group from Shanghai, by Fabbia
Jacobson and Helbe over . period of several months.

At high levels the interest of the Government of Seeden

- secured (a personal interest in the matter was taken by
the Crown Prince) and there were promises made which are still

in effect that the Rabbinical group would be given a collective
Swedish visa and would be received in Sweden and supported there.

STETTINIUS

The position that release of the Rabbinical group would be
(GHK)

allowed has apparently been consistently taken by the Government
WE

4/9/45

SWP

of Japan. There has been no quid pro que so far as is knowng

it is our understanding that the Japanese insist that, because
living conditions and congestion of civilians is Shanghai are

prectically unanageable, they would be glad to get rid of the
Rabbinical group. Nevertheless, the Japanese have stated that

HAS-1910

-2-

This telegram must be
paraphrased before being

,

communicated to anyone

other than Government

outside transportation facilities must be furnished, adding

Ankara

Dated April 9, 1945
Rec'd 8:30 p.n.

Agency. (RESTRICTED)

that they have no shipping between Shanghai and Vladivostak and
Secretary of State,

that rail transportation to the Fussian border from Shanghai

(which is . weeks run) is equally impracticable in view of the

Washington

fact that the facilities are reserved for military purposes

487, April 9. 6 p.m.

entirely.

The official in the Ministry of Foreign Affairs

The Fussians have expressed sympathy with the program but

who is handling the after (REENING 473, April 7) has just

have insisted that it is technically impossible for the Pursiana

informed - the Turkish Government has decided to allow

to furnish the transportation needed according to Jacobeon and

the 134 Jewish persons on the DR THINGHOLM to land at

Folbe, who state that no Russian vessels are running between

Istember pending the "eventual determination of their

Shanghai and Vladivostak which they call . prolonged run and

fate".

an extremely dangerous one. The Russiana state that the

Sent to Department, repeated London as 31.

,

Sibertan railway is overloaded and that no promises of trans-

PACKER

portation would be based on realism, furthermore.
JT

There is no shipping belonging to the Swedes in the
Shanghai area according to statement made by the Swedes.

It is the belief of the Legation that the problem of
moving the Rabbinical group from Shanghai has been examined

into thoroughly and that it is . technical impossibility under
conditions existing at present. For this reason we believe that
nothing can be gained through additional efforts in that

direction which would a retrace the identical steps which
have already been taken and is addition it would .... likely
that additional obstacles may be caused by the deterioration of
Tusso-Japanese relations.
JOHNSON

DC/L.LON.MEE 4/11/45

15.00 Chauncey (for the Secry), Cohn, Dullain, Caston, Model,
Matchison, MeCommack, O'Dayer, Files

166

PARAPERAES OF TELMORAK RECEIVED

108

167

AMERICAN LIMBON

FROM:

PLAIN

TOP

Secretary of State, Vashington

Lisbon

DATED:

April 9. 1945

Dated April 9. 1948

NUMBER:

748

Reg'd 8:45 D.M., 10th

Secretary of State

SECRET

The following massage WRB 377 is transmitted.

Washington

This message for Charles y free Sharp. Unitarian 430.

751. Ninth

Replying to year No. 263 there have been sent to the Inter-

VRS 378 JDC 213 FOR LEAVITY FROM KAROLD THORE

governmental Committee is Lender by way of the America Minist ter

Gottfarb Stockholm cabled *Professor Threspreis

is Lisbon all particulars regarding 180 Bryea cases and is
addition lists have been sent to the Mexican Legation is Lisbon
who forwarded them to Mexico to the Ministries of Interior
and Foreign Affairs there, 75 single men hiding is Lisbon were

received letter from . Gruenberg Refiel *Preseident

des Wirtechafterates bei der Jundisches Section der

Veterisendischem Front' asking for medical repair and

artisan tools. Please advise your point of view and

included is the liet and is addition as ethere imprisoned also

best ways of help and to whos help should be directed

19 families 3 of these being imprisoned; the namesef so of the

is case Syedish leve will send relief to Palgeria"
We replied: *Gied hear Swedish Jerry idering aid
Pulgaria and hope final decision will be affirmative.

meet endangered cases can be cabled if Deceasary Advice

should be furnished that their information is not

correct daily - are deported either to death or to Laprison

erat.

We giving $50,000 monthly through representative committee
headed by Maurice Marcus Sofia also joint representative

I learned yesterday that friend of President Barries,

Professor 011 Tarragut former chief Quadalajara division has new

been deported free Spain and put in prison. No exiled after

long deprisoment is Spain and was later terrisoned is Portugal
where - gave his assistance. Deportation to Portuguse Devile

Island Terrefal free which few return is being threatened to all

1

new Tetenbul availing visa enter Palgaria already sent
1000 medical supplies. Believe best all concerned to
keep work centralised therefore urge Swedish Jerry aid

through joint channels. If this principle accepted details

from the Uniteriass, what effort has been made to secure direct

regarding treasfer funds can be arranged later. As
Insurring nature committee you mention will send all
information soonest" Requesting information concerning

large - are available is France for their cliente who are not

committee free Maurice Marcus,

politicals. Is this company If we are not able to receive help
from Dryen, 10,000 Why is there se interest is Pertual If

in danger as year letter indicates. Is is requested that you

consult for runts Lee Parlia, Labor League Hunts Rights, American
Federation of Labor and National CIO of Var Relief Committees.

In this regard as approach is being made to the British by Marks,
CROCKER

DC/L.LOW: CVY
4/10/45

CHOCKER

KIN

PRECISION

TRADE MARK

MICROSTATI

MICROFILM

BOLL NO.

170

169
LPO-3977

Stookhols

Distribution of true
reading only by special

(

PARAPHERASIS OF TELEGRAM SUN

arrangement. (SECRET #

Dated April 9. 1945
Rec'd 6:55 p.m.

Secretary of State, Washington

FROM

Secretary of State,
American Embassy, London

TO:

Washington.

April 9, 1945

DATED

1328, April 9, 7 P.M.
2757

Following telegram has been sent to London 750g

SECURIT

U. s.

In VIAM of fact that ar Refugee Boards recently

See your March 28 cable No. 3186. War Refugee Board and

made available to local Yorld Jewish Congress 40,000
knower food parcels (helf to Goteborg for 185 by IRC

Department assume that you have discussed with the Foreign office

delegate) for distribution to Jewish concentration
campa in Dermany through the facilities of the Swedish

Ankara's April 17 cable No. 29. Along these lines, you should

23, 8:30 P.S. has lost considerable of its impdiate

stress the destrability from a security standpoint of removing
Deman nationals and officials from Turbey as soon as possible, a

view which the Foreign Office presunably shares. Also, it is believed
by the Department to be very undestrable that any Jawa released from
Germany for purpose of exchange be returned ultimately to Dermany as

such . development, apart free almost certain hardship to persons

Red Cross, the program referred to in your 270 of March

urgency. Receive of extresely limited transportation
facilities to Germany, local Jewish group is appreciative

of the fact that it will be nost fortunate if 14/succeeds

in delivering even these 40,000 packages. Local group
is very arecious to obtain necessary funds to carry out
its purchases for larger program, which supplies however

simply will be stockpiled for immediate post war delivery.
They are particularly excdous to purchase medical supplies

at earliest opportunity since they report local supplies
quite abort. Food also will to acquired locally, of

products indigencous to Uweden. Clothing is antifipated
to come from American sources.

concerned, would probably imperil seriously pending negotiations
looking toward the departure of Jown from Germany in exchanges, between
this Government and the Derman Government.
STATTINIUS

Repeated to Department for NER as our 134.
Shipments through commercial channel such as Mootbar

were discontinued same time age and expect for limited

parcels individually directed through parcel post channels
rest of shipments are entirely under auspices of Swedish
Red Cross.

JOHNSON

INS

MICROSTATI MICROFILM

171

PLACE

Decharest

0

Dated April 9, 1945

Secretary of State,
Washington.

254, Firth
Is reply to Department's 161 of March 28 Funanies

law of December 18. 1944 repealing all anti-Jerish
measures dees not (repeat not) specifically recture
citisenship to Jove denationalised by Remains decree

of January 20. 1938. The Justice Ministry since January
has been drafting law restering citisenship to Jove
denationalized under decree of 1938 to apply to Jove
0

at home and shreat. Latest available draft of this
law being transmitted by peach. No (repeat no) Rementab

law denationalised officeme of sthate German
origin service is Careas army but individual cases of
denationalization have been made under Rumentan law

of 1939 regulation acquisities and less of
Aumotes citisenship and es Council of Minister reporte
General law es subject is being drafted by Justice Minister.
BERRY

VIG

RECISION

TRADE MARK

MICROFILM

BOLL NO.

173

172

-2(

CABLE TO WINANT, LONDON, FOR MAY PROCE WILLIA O'DITER MAR
REFUCES HCARD

For your information, following 18 text of cable receive
from leClelland vander date of April 6th:
"Arragurements with ICRO for socuring trucks to

transport it's food parcels into Dermany for civil
detainess are shaping lap as follows: Six Renault

tracks will be available for loacing morning April 9
and should depart on April 10. ICHO's Division of

Special Assistance still to relief middy worsening
conditi of detained in concentration campo of Oran-

ienburg, lavensbruee and Hamburg If it

proves impossible to dispatch trucks this area they
will be sent twach region and east.
"Prospects are good letting four to six more

*Exact area of camp from which these persons come

is still unknown.

"Herbert Kataki arrived this afternoon, April 5

from Paris and will actively work with ne on these

WELL programs.

"All further significant developments in situation
will be reported to Hard.
For your further information, Hoard has agreed to purchase
from The Department 206,000 United States primoser of the par-

cels nor in Switserland for distribution by Intercross to refugees in German concentration campa. Details of transfer now
being worked out between War Department and -card.

Penaulta moving by April 13.

"These French trucks, although new, all TO-

quired light overhaaling, rainting with ICIC insignia,
of cetera, witch has delayed their use. with tires

and diesel oil procured for ICIC by Board's efforts
countittee hopes naice at least four tracks available

THIS IS - LONDON CAREX NO. 64

also next week for our program.

*Since it is quite possible that only areas of

Mutch and to east and northeast thereof will be

accessible in future it is planted to direct relte:
shipments by truck mainly to these regions taking in
campa of Dachau, Landaberr Anlech, Flossenburg and

Marthausen near Lins, including emergency relief to
evacuated deportees on roads. Those shipments would
be apart from any that might go to Lusbock area.
"Recent DATE from Dermany indicates that almost

all internal telephone and telegraph comunications
are disrupted so that individual care commanders are

progressively more isolated. Lattle of no centralised

SS control, therefore, appears to exist which may tend
to preclude any general last sinste extermination of
large group of civil detainees.
*ICHO reported this afternoon that truck convey
carrying 300 French women and small children, presum-

ably civil detainees, 10 expected to arrive groundigen

Location,

1,15 P.B.

April 9. 1945

PRECISION

MADE MARK

MICROSTAT

MICROFILM

175
174
(

CARLE TO AMERICAN LISBON. FROM THE WAR REFUGES BOARD
CABLE TO AMERICAN LEGATION, BERN, FOR MOCELELLAND. PROK WAR REFUGES BOARD

Please deliver the following message to Hareld Trabe free
Please deliver the following assenge to Nane Klee, 1 lue du Rhone,

H. A. Leavitt of American Jewish Joint Distribution Committee:

Genera, from Abrahan Silberecheim of World Jewish Congress)
QUOTE EARLY LAST TEAR VS PAID AMERICAN RXDCROSS
TASTESSUAND DOLLARS FOR MEDICANGESTS POLAND. SUPPLIES

QUOTE PLEASE INFORM WEETHER YOU HAVE SECURITY PROTECTIVE
DOCUMENTS FOR ABRAHAM, MARGARETHA, ARVOLD. MILLY DRUYF.

ARRANGEDCEITS MADE REDCROSS REPRESENTA*

MOSCOW FOR RECEIPT AND
NOW
TITA ERIVA
ELLIOTO POL
ANDREDCROSS
SHIRK CENTRAL
DISTRIBUTION
THROUGH
AND SUPERVISION JEWISH

COMMITTEE WARSAW. ADVISE SALY MATER REQUESTING HIS
COOPERATION FRANCIS JAMES REDCROSS REPRESENTATIVE

THIS IS WRB BERN CABLE NO. 492

GENEVA FACILITATE SHIPMENT. UNQUOTE

THIS IS WELF LISBON CABLE NO. 167

D

1:10 p.m.

April 9. 1941
1:15 P.S.

April 9, 1945

C

176
177

C

CABLE TO AMERICAN CONSULATE, ISTANBUL, FROM THE WAR REFUGES BOARD

1

CARLE TO AMORICAN LEGATION BERN, FOR MOCLELLAND, FROM WAR REFUGEE BOARD

Please deliver the following seasons to Professor Dr. A. Justow,

Please deliver the following message to Gerband Riegner. 37 Qual

International Rescue and Relief Committee, Istanbul, Kadikey, Mshurder

Wilson, Geneva, from Kurt Grossman of World Jewish Congress

Gaddees 121. Istanbul, Turkey from Sheba Strussky of International Rescue

QUOTE CHIEFRANSI BENSION OUNIKL JERUBALEM REQUESTED HELP
FOR 155 SALOMIKA JEWS SUBJECTS OF SPAIN IN
LAZARK RESTINISTY LAURANCE KNO IS IS CONTACT WITH RICHARD
LICHTHEIM IN POSSESSION THIS LIST WHICH YOU PLEASE SEOURX
AND SANT TO STORCH TO SEND THESE PEOPLE FOODPARCELS DRAW
SPECIAL ATTENTION CASE ORPHANS MAANINA SIG. AND HENRY
BERGENBELSKN STOP INFORMED THAT 40 JEWS ARRIVED LATALT
SWITZXRLAND FROM AUSTRIAN CAND PLEASE TRI FINE OUT WHETHER
MOSKOVITE. KELEXA AND BOT ANONGST THASE. UNQUOTE

and

an 4 Heller Committee!
COOTE PARTLY REPEATING OUR FIVE STOP WILL THOTHOUSAND MONTHLY
* SUFFICIENT ACCORDING PRESENT KEKOS QUERT RESIDUTION NECESSITATES

BY DESPERATE IN FRATCE AND ITALY STOP RECEIVED NEWS YOUR
EXUKLIKNT WORK FROM KATEKI STOP AWAITING YOUR APPROVAL TO APPROACH
FRANK BLACK TO JOIN TURKISE COMMITTEE STOP BRETHOLE SHOULD CONTACT
KELVIN BLUM OUR WORK IN LENT TO UNREA ATHONS AND EXPLORE WITH BLUM
POSSIBILITIES JOINS IRRO-UNIONA SUPPLEMENTARY PROJECT STOP CARLED
BLUM LIKEWISK STOP NO FUNDS FOR WORK IX PALESTINA BUT WILL REFER
CTLASEK TO OTHER ADDICIES HERE. UNQDOTE

THIS IS VKR BIRS CABLE so. 491

THIS IS WRB
1

1:10 P.A.

April 9. 1940

1:15 P.B.

April 9. 1940

0

RECISION

MARK

MICROSTAT

MICROFILM

BOLL NO

179

178

CARLE TO AMERICAN LISBON. FROM WAR REFUGES BOARD

D

CASU TO AMERICAN ENRASST. LISHON, year TEX TEACH RECURES HCARD

Please deliver the following message to Harold Trobe free
Please deliver the following message to Harold Trobe from

H. 4. Leavist of American Jewish Joint Distribution Committees

1/2 A. Leavitt of American Jewish Joint Distribution Committee

QUOTE ADVIS LINING AND SCHWARTE INVOIQUOTE AFTER
RECENT KEETING WITH KISSKLET WHO RETURNING MOSCOW

WK HATE PRACED TESTATIVE CONCLUSION TO VOTE KISSELEV
THAT WINNEVER DECISION REACEED BY HIS GOVERNGERT GRADL
UALLY RESETTLING JEVISH COLONISTS CRIKEA WX PREPARED

COOTS TOUR 367 GOTTER IMPORTATION REGARDING STOCKFILMS

DISCUSS OTTE PARTICIPATION IN PROGRAM. DISPITE our

GIVEN TO CONDRESS NOT FROM AMERICAN REDCROSS AND THIS

RUDGETART PROBLEMS VE DESIRE SHOW OUR CONTINUED INTEREST.
REALIZE WHESEVER SUCE PLANS SHOULD MATERIALIZE OUR PRESENT
STEP MAY INVOLVE OUTLAT RETWEEN FIVE HUNDRED THOUSAND AND

DESTINED 00 THROUGH SOUTH MEDCHOSS AND TICA, UNQUOTE

OF ADDITICAN REDOROSE UNTERSTAND AMOUNT SMALL
AND NOT ATAILABLE FOR SALE. 200,000 KILOS 2000 REPORTED
REPEAS TO PARCELS OF WAR REFUGER BOARD WHICH

ONE MILLION DOLLARS ANNUALLY OTHER PERIOD. WITHOUT
INDECATING ANT FINAL DECISION OUR PART OULLITOD ASCER.
TAIN WHETHER ICA FRIENDS WOULD BE PREPARED SHARE IN SUCK
ENTERPRISE IN ITANT SUCE CRIMEAR PROGRAM MAY STANTUALLY
EVOLVE. END INNERQUOTE UNQUOTE

THIS ID WITH LISHON CABLE NO. 166

THIS IS VRB LISBON CARLE NO. 168

1:10 P.R.

April 9. 1945

1:10 p.m.

April 1945

1

PRECISION

TRADE MARK

MICROSTAT)

MICROFILM

ROLL

181

180

14

CARLI TO AMERICAN LECATION, STOCKHOLD FOR OLSIN, FROM TAR RESPONSED BOARD

Please deliver the following message to lre. Kline Ottensen-Jeneen
John Ericsonag 6, Stockhola, Sweden from Sheba Strungley of International

CARLS TO AMERICAN SCHASSY, PRICE THE HAT RESUORS BOARD

Reacue and Delief Committee,

QUOTE UST DISCONTINUED TRANSVISSION OF FUNDS UNLESS IN RECEIVE
REPORTS ON EXPANDITURES AND ACTIVITIES STOP CANNOT UNDERSTAND
HIT HEACHSTEIN CANNOT SEND REGULAR MONTHLY LITTER AND STATEMENT
STOP AWAITING YOUR CANDED REPLY. UNQUOTE

Please deliver the following massage to Dr. schwarts from 1. A.
Lesvill of American Jowish Joint Instribution Committee
COOTS ALTHOUGH FOLLOWE NO UP WASHINGTON YOUR UNTY PURANTA

HULGARIA OUTLOGE UNIVERSITA FOR THINDIATS PROCESSION.

DIFFICULTY NOT ASHINATION BUT IN ALLIND COMMISSION. HOMEVER
DOING UTMOST THIS END. UNQUOTE
THIS III TITLE STOCKHOEM NO. 349

(

1,10 p.M.

April 9, 1945

1:10 p.m.

"pril 9, 1945

0

PRECISION

TRADE

MARK

MICROSTATIURLPO MICROFILM BOLL NO

183
162
CABLE TO AUTHASSADO WINANT AND STONE, FROM DEPARTMENT, FEA, AND WAR REPUBER
HCARD
(

CABLE TO HARRIMAN, MOSCOW. FROM DEPARTMENT AND WAR REFUCES

Reference our 2070 March 17 and your 2965 March 22.

BOARD

Reference is nade to Stockholm's No. 14 of April 4
to you, repeated to the Department All No. 1251 of April 4.
Department and Board would appreciate your giving all

No part of the proposed expansion in our 2070 will originate from the
United States, out rather all will be indigenous to Sweden
The relations between this proposed expansion and the originally approved

100 topa foodstaffe is only this That proposal outlined represents an expansion of the originally approved program of foodstuffs and in that expansion
medical supplies and clothing are proposed for inclusion.

possible support to the (medish Legation in Noncow in its
request to the Nassian Government for assistance in deter=

Tt is our intention that the distribution would be handled and supervised
by Lite Swediah YNGA, which, so for an cables from Sweden indicate, performed

with respect to handling and supervision on the initially approved 100 tona

mining the fate of tagul Tallenberg, Astache to the Swediah

foodstuffs. However, we have no objection to participation either on the part

Legation in Hadapent.

Jewish Joint Distribution Committee here finance this expanded program, it is
our intention that their representative in Stockholn shall be the spokesman for

The NB Refugee Board had special interest in Wallen-

of Swedecross or Intercrose Insamuch AS it has been proposed that the American
private agency interests in Sweden. Your reference to commercial channels,

that is, J. Nootcaar and A. 3. ankonpaniet, does not have our approval. father,

berg's mission to Hungary because of his outstanding work

in protecting Jown and other victims of I oppression

it is proposed that food parcel distribution to internees in concentration CATPS
in ecenty Europe continue to be controlled as in the past by private humanitarian
organizations who have demonatrated ability to perform with respect to distribution.

during the energy occupation of Bangary. .
(

THIS IS WILL LONDON CANER NO. 6)

1:51 P.M.

April 9, 1945

10.00 a.m.

Arril 9, 1945

PRECISION

NOT TO BE RE-TRANSMITTED

MICR

COPY NO.

184

SECRET

OPTEL No. 113

Information received up to 10 a.m., 9th April, 1945.
NAVAL

ANTI-SUBMARINE OPERATIONS. 8th. Frigates of 4th Escort

1.

Group made promising attack on U-boat S.W. of Ireland (R), while
promising attack also made against second U-boat by frigates of 21st
Escort Group in same area.
MILITARY

WESTERN FRONT. Southern Sector: 1st French Army made steady

2.

progress in face stiff opposition Karlsruhe and Heilbronn areas while
further north infantry of 7th U.S. Army has cleared Wurzburg while
armour of same Army has struck east from Heilbronn and reached Crailsheim.
Central Sectors 1st U.S. Army secured bridgehead over River 9th
Weser north of Munden and late reports state Gottingen captured.
U.S. Army advancing against Ruhr pocket from North is fighting in
Essen and Dortmund, while armour of same Army striking east now within
8 miles Hanover.
Northern Sector: Armoured columns of 2nd British Army crossed
River Leine N.W. of Hanover and now 7 miles from Bremen. Further
west 1st Canadian Army made good progress with elements 4th Canadian
armoured division reaching Meppen and Zutphen being cleared by troops

3rd Canadian Infantry Division. On 7th/8th special air service
troops dropped in advance this Army and have gained their first
objective.

EASTERN FRONT. Northern Sector: 8th. Assault on fortress

3.

city of Konigaberg launched when troops advancing from N.W. and

south linked up thus encircling considerable body of German troops
defending city while at same time main station and port captured
with 15,000 prisoners taken during day.
Southern Sector: Further progress made N.Y. Bratislava
where bridgeheads won over River Morava. South of Danube good progress also made N.W. and west Vienna while fighting continues in
southern and western parts of city where arsenal and three main railway stations taken. Further south gains of 12 miles on 30 mile
front made in area S.Y. Winer Neustadt.

ITALY. In Adriatic sector troops of 8th Army made further

4.

progress between Lake Comacchic and River Reno where 275 P.W. cap-

tured. In Nest coast sector U.S. troops captured Montignose.
BURMA. Central Sector: Further 10 mile advance made south
5.

Meiktila and our troops now 7 miles S.W. Pyawbwe.
AIR

WESTERN FRONT. 7th. Further reports state additional 435
tactical aircraft 0 missing ) destroyed 49 enemy aircraft on ground
and over 600 road and rail vehicles.
2th/8th, 209 Bomber Command aircraft despatched (1 missing):
187 against oil distillation plant Molbis (south Leipzig) and 22

6.

bomber support, when weather clear and bombing concentrated. Same
8th.

and

1

night 46 Stirlings
dropped
paratroops
Assen-Meppel
bombers
(10 area.
bombers
heavy
escorted
U.S.
1184

fighter outstanding) dropped 1493 tons rail centres Central Germany,
464 tons on 3 airfields Suremberg area, 656 tons on 2 ordnance depots
and 244 tons other targets, when all attacks except one made visually
and reported successful with no enemy air opposition.
SHAEF (Air). 801 medium bombers (9 missing) attacked conmunications and oil targets while 2073 fighters and fighter bombers
9 missing) operated Northern and Central sectors destroying or
danaging 800 road and rail vehicles while inflicting enemy casualties 35.4.13 in combat and 60,3,74 on ground. Air transport sorties
983 flown.

2.

MEDITERRANEAN. 2th. 668 U.S. heavy bombers despatched. but

majority returned early due to weather, while remainder dropped 289

tons on 5 alternative railway targets. 629 tactical aircraft operated
whole front cutting railway lines 53 places and destroying 7 oil cisterms.

#

April 10. 1945

184-A

-2-

184B

9128 A. M.
HMJr:
B:

Mr. Dan

Bell:

Good morning.

HMJr:

Can the people hear me?

B:

Yes, they can hear you.

HMJr:

And I'm making a record?

Yes, air, you are making arecord so be careful what

B:

HMJr:

What?

B:

And be careful what you say

HMJr:
B:

HMJm

B:

1.

HMJr:

(laughs) All right.
It will be held against you.
Well, now, Dan, I've got a flood of messages here
before me, see?

All right.
And in reply to this request of the War Department
to send some people over to run down German funds

HMJF:

HMJr:
B:

HMJr:
B:

HMJr:
B:

HMJr:

B:

I definitely do not want to send Harold Glasser.

All right, I told Harry that this morning.
I don't want to argue about it.
All right, air.
I want to suggest that Orvis Schmidt go.

All right, we already have that under. consideration.
Yeah, now I have, what I think is a brilliant suggestion
for a san to head that section. I mean, whatever you
call it, the Finance
The Finance section.

HMJr:

Yeah.

B:

Be over all, eh?

Yeah. I think he would do a bang-up job for us.
Now I'11 wait and ass what the crowd thinks.
Just a moment. (Talks aside)

B:

Harry and Coe think he would be good, but they don't
think he would go.

HMJr:

I think be would go. I don't think anybody can refuse
this.

Well, I don't know why they think he won't go. Let's
see. you got nother job in mind?

B:

HMJr:

Nobody can refuse to go.

Just a moment. (talks aside) Well, they still think

B:

he wouldn't go that they have other jobs in mind for

him.
HMJr:

Other jobat

talks aside) Oh, I thought you said. wait a minute.
go. He's quite certain that he will not go.

B:

Well, Harry saye there are several reasons why he wouldn't

Yes.

B:

All right.
I would like to suggest Milo Perkins.
Milo Perkins.

B:

you say.

HMJr:

Be over all.

HMJ:

B:

HMJ
B:

HMJr:

B:

Well, let Milo Perkins decide that.

All right.
Hello?

Yes, all right.
And you people this morning get in touch with his and
put it up to him.
All right.

HMJr:

See?

B:

Yes, sir.

HMJr:

Do they agree that if he would go he would be a good nant

-3-

184-C

184-D
B:

Yes, they all do.

HMJr:

What?

Herbert doesn't.

HMJr:

Well, what

On cartels.

B:

On cartels, yes.

HMJr:

Yell, we don't want a cartel man.

B:

No.

HMJr:

Well, talk it over amonget yourselves.

,

B:

HMJr:

Herbert doesn't think that he would be a good man,
most of the others do.

B:

All right.

HMJr:

What's Herbert's objection?

HMJr:

Now, hello?

B:

And Luxford thinks he's a cartel man.

HMJr:

A cartel mant

B:

Yes.

B:

HMJr:

B:

HMJr:
B:

Milo Perkins?

HMJr:

Yee, he wrote an article on it. Personally I don't
know him very well. I was never impressed when I was
in the Budget and he was in the Agriculture, but then

B:

B:

HMJr:

I wouldn't hold that against him because

HMJr:

Well, am I not right that he more or less spearheaded
this thing when we were trying to get Sweeden to stop
sending ball-bearings and that stufft

The t I don't know (aside) Was he? Lauch Currie

B:

was the head of that, they say - spearheaded.
HMJr:
B:

HMJr:
B:

Well, wasn't Milo Perkins very activet
He played a minor part. (Laughs) (Group laughter)
(He was on the other side of the fence entirely)
Well, then why do they think he is good?
Wait a minute. (The head financial section, yeah, head
of the financial section the Secretary is suggesting
him for). Coe said we have no basis for believing that

B:

HMJr:
B:

Well, you had better find out.
And, the only way you can find out is to send for him.

Well, we can find out. Hellot
Yes. DuBois says the one thing that he knows is the
article he wrotein Harper's which is against him.

Dan, I got this letter from Robert McConnell. Hello?
Yes, I haven't seen it.
Well, he wrote me asking ay advice, you see?

on, yes. He did talk to me, however, about it.

Now, what I'd like him to do is let him read

draft
which the boys sent down to as on reparations.
Hello?

this

B:

Yes.

HMJr:

And I want to know how McConnel feels about that. See?

B:

All right.

RMJr:

But If

B:

I get it.

HMJr:

B:

he would agree with our views on Germany.

HMJr:

Yes.

HMJr:
B:

HMJr:

the reparations draft, see?

And tell McConnel that if Mrs. Morgenthau continues
well
for another 24 hours, I will be coming up tonorrow.

All right.
And whether he would mind waiting until I got up there.
I's sure he would.

And that I then would like to sit down and talk to him.
But if he will go along with us on that reparations
draft, and that is good a thing as any to take anybody's
temperature, let his read that

-5B:

(laughs)

HMJr:

And

-6-

184-E
HMJr:

you know, riding in this morning with
Mrs. Lehman I got an idea. I think that there would

be some women in this country that we could send over
there who have lost sons and feel the way Mrs. Lehman

... amonget them you can find some University woman,
or some woman that would just tell some of these ap-

using the wife of General McNair. Hellot

Mrs. Lehman - she'd make even Joe DuBois pale.

Yes.

RMJr:

B:

HMJr:

B:

peasers where to get off. wish you could hear

And they are using her. There must be other people
like that because the mothers of America, you don't
have to tell then about being tough on Germany.
You mean in this over-all set up?
I can't understand why they
Yes. I just don't
don bring some women in. I mean, take a women like
Mrs. McNair. for instance. There are other women like
that I don't know, for instance, who General Rose's
wife is, who was shot there in Germany the other day.

B:

(Laughs)

HMJr:

Hello?

B:

Yeah.

HMJr:

B:

where.

What? What are you saying

B:

I say we might look at it. It hasn't been thought of
apparently here

HMJr:

What?

B:

Come from out in the Middle West someplace, I don't

HMJr:

B:

Denver. But I would think seriously of asking the Aray
about the wives of nome of these Generale-- who they are,

HMJr:

how such education they have. Now you take Mrs. George

Patton, she's wonderful We have used some of these
women in War Bonds. There are so few people in the country
who feel the way we do about Germany, I think we have
got to get a couple of women on that plane to come in
and sit in on these things.

B:

HMJr:

B:

HMJr:
B:

Do you suggest Mrs. George Patton

HMJr:

HMJr:

Well, I was mentioning her because she was very good.
Mrs. Mark Clark

Mrs. Mark Clark has been
Hello?

she's been in the limelight.

All right, we'11 take a look at it.
They need the money and everything else. What?

All right, we'11 take . look/at it and see if there

are any available.

B:

B:

I think nine Generals have died, and amongst their

wives there might be one or two very good women.

know.

"MJr:

She saw some German prisoners this morning working

here, fat as hoge, working around the hospital, and
the guard with his back turned smoking a cigarette.
Well, it hasn't been thought of here, but we might
look at it.

HMJr:

No, I don't know either. They come from out Vest some-

B:

thinking more of some widow of some General. Now there
are nine Generals who have been killed, and of those
hellot
certainly

does. We never think in terms of women. Now the

Army the State Department, for instance, is

B:

I say I'm just mentioning some of these people. I'm

B:

Mr. Harry

They'11 have some feelings on this thing.

All right, sir.
And, now, let as talk to Harry a minute.
Harry

White: Hello.
HMJr: Harry?

184

-7Good morning, air.

W:

HMJr

How are your

W:

Fine, thank you.

HMJr:

Good.

I with the hope that Mrs. Morgenthau will

HMJr:

And with that in mind I would kind of just like to

mark time on this Bretton Woods business until I can
get to grip with you fellows.

Well, that suite me, I don't know whether it suite the

W:

other men.

HMJr:
W:

HMJr:
W:

2

HMJr:

HMJr:

And. because I'd be influenced
Well, you saw ay telegram.

W.

Yes.

Exjr:

Yeah.

HMJr:

Hello?

Well, I know it suite Bell.
Oh, it does, well, now it's o.k.
Hello?

All right.
I talked to Bell last nite and the only thing he said
he' feel happy if he could tell Ecclee what . going
on.

W1

HMJr:

that too.

HMJr:

Are you fellows sure that
And I told his because
we've got the votes in the committee?

W:

Well, I think a recheck would be essential before that
definite statement could be made.

HMJr:

Supposing that be done this week

W:

I think it could be done this week.

HMJr:

If it could be done today or tomorrow.

W:

HMJr:
W:

Well, that I don't know. I don't know how many there
are, but we can find out. We can.
Suppose you try and find out.
Right.

Yeah, I'm lietening.
And, no. I'll know tomorrow morning. They want one
more 24 hours, you see.

W:

Well, we can find out what we dan today. Would you
suggest using Hannegan to find out, too, merely to
bring him in the picture, or do you want us to work
through Spence?

HMJr:

I would do it through Spence.

W:

What?

HMJr:

Through Spence.

W:

HMJ:

Yeah, I think that myself, I think that he should do

W:

If we have the vote.

I don't :-- by God, the way I feel, if we are going to
do
any compromising let's do it with our friends,
like CED.

W:

be well enough, I hope to get back Wednesday nite.
That's fine.

W:

184-H

184-G

W:

HMJr:

O.K.

Yeah. I told Bell last night and he's agreed that just
let Burgess 0001 his heels a little bit. Hello?
Yes.

The first thing you know another one of these fellows
will shoot themselves.

W:

HMJr:

W:

HMJr:

(Laughs) Yeah, I'm having. yeah, we are checking
up on where all the boys are all the time.

Yes. Now one other thing- this is for everybody. I
want to ask Bell and you and Coe this question, "Where
the hell 18 FEAT Why did they dump all this stuff in
the Treasury . lap?
Which stufft

Well, there's this stuff of setting up these committees
under General Clay.

-10184-I
W:

Well, I don't know about it so I'll ask Coe. (Frank,
did you hear what the Secretary said?) I'll put Frank
Coe on the line, because I don't know what you refer
to, Mr. Secretary.

HMJr

C:

Well, I hear that Douglas saye that the way the
policies are going that he won't have any industries
to run. He is very disturbed.

HMJr:

Well, the funniest one I read was by I.M. Stone

C:

Yeah.

All right.

184- J

Mr. Frank
Coat

Hello.

HMJr:

Frank.

C:

HMJr:

C1

HMJr:

Yes.

C:

In this business, in all this stuff that General Hilldring

HMJr:

and General Clay are asking us to do after all, FEA
is supposed to have a foreign economic section with
about one hundred and twenty-five people in it studying
Germany. Now General Clay and General Hilldring pay
me the compliment of asking me to do this and to do
that, but where the hell 18 Crowley and all of theat
Well, this is in connection with the financial and

propertysection
of the Army. That is under Colonel

Bernstein, and they frankly say they cannot get trained

C:

Now that isn't it. from the telephone conversation
I've had with Bell, I don't see where FEA 18 doing anyWell, they are planning to --- they've got about eight,
nine, or ten other economic sections of the Control

C:

Graney Howard. He's the Colonel who's been in
charge in London.

HMJr:

C1

HMJr:

Well

0:

By the way, I just heard from State that Lew Douglas is

going with General Clay.
HMJr:
C:

HMJr:

Bell knows all about it, he talked to Lew Douglas.
He talked with his?
Yes.

Oh. He's the fellow - there was some story about

the truck I forget - leave the trucks over there

so that they can sell new trucks.
Yeah, I think our boys --- I think Taylor and our
people had some trouble with his section over there
very definitely
Now, here's another thing --- I wrote down two names,
Milo Perkins, he may not be good, but you can check
it.

C1

HMJr:

of work.

HMJr:

I also hear that Graney Howard of General Motors
What

Commission for Germany and they are planning to feed

in civilian personnel into some of those sections.
There' a ommittee meeting with Hilldring and the
civilian agencies line up their people through that.
Now the Army, as in the case of Italy, first doesn't
want people, and then gradually as their men in the field
scream they start asking for more help. But the other
agencies are providing personnel but for different kinds

What?

HMJr:

thing.

O:

(Laughs) Yes, that's all over.

1e going.

financial men.
HMJr:

He asked. he said that when Leon Henderson was back,
he said, "Morgenthau is having his way, . because everyplace he went in Germany he just saw chaos.

Yes.

The other san I would like to bring in as an advisor
to the Treasury and get him into this picture somehow
or other is President Conant.

C:

President Conant.

HMJr:

of Harvard. Hello?

C:

HMJr:

Yes.

I'd love to get him down here in some way so that while

this thing at this end is in a formative period, that

he would be there as an advisor to me.

12 -

- 11

184. K
C:

C:

HMJr
C:

HMJ

C:

HMJr:
C:

HMJr:
C:

HMJr:

C:

HMJr:
C:

HMJr:

C:

HMJr:

Be here as an advisor to you.
Personally, yep.
Yeah.

I wish the boys would think about it.
We'll talk that over.
There's no question where he stands. Hellot

HMJr:

C1

HMJr

C:

HMJr:

C:

HMJr:
C:

HMJr

I haven't followed - I haven't followed him.
Well, read his article in Life of two weeks ago.
All right.
Read his article. And he has a wonderful position
in this country.
That's right.
Read his article of two weeks ago.

We will get it and pass it around.
Its the same as his speech . This speech was circulated about two months ago, but we could use somebody
like that.

Well, we will discuss it.

C:

HMJr:

C:

HMJr:
C:

We are about half way through the Economic directive
over there, and we sent you last nite - did you get 1 77
a report on how those meetings are going.

Wait a minute, I got everything here. Just a second, I don't
think I

HMJr:

Is that it?
That's it.
I got that.
That's the report up to date.
Now you tell your friend White he sent as one on
Belgium and Dutch lend-lease.
Yes.

I'm not going to worry about that until I get back.
All right, then, we will just proceed as indicated
Well, on the assumption that I will be back in a couple
of days. Can that wait?
Yes, air.
What?

C:

Yes, sir.

HMJr:

Ian't that really --- are you doing that or is White
doing it?

C:

HMJr:
C:

Well,
I got too such is right, but it is all right. Wait
a minute.

C:

reparations and

That's right.

HMJr:

HMJr:

Wait a minute, wait a minute -- I've got the one on

Now, I've got that one. It says here, "As previously reported,
the document - in a form acceptable to the Treasury is
revised
and ready for the Clayton Committee. Financial
Directive

C:

Maybe you have too much down there.

Well, in

The reparations 18 going good.

there.

Now, how are you getting along over there with the
State Department?

C:

HMJr:

184-L

I'm doing that.

White ought not to be doing it.
No, he isn't.
He's got all he can do on Bretton Woods. Well, did
Clayton get in on any of thist
Yes, Clayton has been in on this both on the Belgium
and on the Dutch lend-lease, and he is having a change

of heart. He said that Connally spoke to his very seriously

- 13 -

C:(Cont) about the 30 business and he is getting worried
about it. Also, as you say notice this morning,
Vendenburg 18 out asking the Administration for

184.M

a full statement of what they intend to do financially
around the world -- all their committments.

HMJr:

(laughs)

C:

HMJr:
C:

HMJr:

C:

HMJr:

8

No, all we get down here is the columnists.

All right.
All right.
Now, if Mrs. Klotz goes back to her office, I'd like
to talk to her.
All right, goodbye.
Bye.

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