BRITISH EMBASSY - FDR Presidential Library & MuseumBRITISH EMBASSY WASHING TON, D.C. 149 2Gth De...

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BRITISH EMBASSY WASHINGTON, D.C.

149

2Gth Dece~ber , 1931 .

PSRSO!!AL AND s:>C!ll!T

Dear ~:r . Secre tary ,

I enclose herein for 7our

personal ar~ secret info~tion copies

of the latest reports received fron

London on the mil1 tery situation,

'l'he Honourable

Believe me ,

Dear !.:r . Secretary ,

Very sincerely yours ,

(?or the AMbassador )

If. J. C..__...-~

llenry J.:orgenthau, Jr . ,

United St ates Treasury ,

wash i ngton, D. C.

Regraded Unclassified

(I) liO!M<

C.,py ... ..!!t.. IIIITlSH 1\CST S!l:RET

(u.s. SD:RET)

Intcrw.t-iOD reoetvod 1JP to 7 a,a,, 2)rd Deceabor, 1941,

Durizle the nJ.cht :U.t/Z2>1! • m>ll ~ ohip 1n tho -~

~!troltor eoavcr - torpedoed. A 70000 ton tlriUeh ohip .. , IIUlllc hy Dine ott t.:r.

&ut. coast on tho 21st.

(II) tln.rt.W

J.lllll• Roporta """ ,..,.,ei...S of ope>':ltioM h7 our - o4 coluzma

o.1 tht zotb state two lora• ODMIO' eol\E\.5 coot.&1nl..Qg ta..nU and SUft1 wt1"e m::cen•

lllll7 Ol1888ed ... ,. EL XARRUBl, two field guNI and WDh ll, r. de•t.roro4. ConUnuoWI

streu of &b&ndoDtld U, T • and oquipme:nt r eportod on line or advanco of our anoured •

terce tree m:Kll.I, IJit.ny prieonera e&ptured,

22:d, 1'bare art 1n:!.1ca·Uou t.bat t.be enea;:r, -..tnl7 It.&1.1a.a, llll7

tr7 to bold the aroo !L AliUR· l£1ll!1.2l, 1!>0 MJcrit;r of the G.,_.,. oro bollOTO<l

to bt turthor south tn tbe Jl.l».B[l area and 1101t ot t.beir o.1r forQOI .ae• to bo

operat..tng f'rcm eouth vest ot soum:, In tho north our adVdncc on BARCZ cont1nueJ

and &l..lo on ~lliW.ZI &Dd tho SOLtiX area,

~· 22nd, It 1a belined that e.O.f!CI.Y suffered heavy loeSN on

G.illl roed co the 2lat W'btre aituaUon ts nccr ~·-t. :mtb.1nc to roper'- h• ot.btr

ltet.c.rl,

fiPP xom, OUr rorcos continuo to hold the north .. ,'t or the

lllAnd fJld aho STANI<lY Poninrul& 1n the oouth, On tho 2lot the tn<IIIIY louncbed

' dtt.ena1ned at·ta.c)c tJ'rOII the Baat and have t aolat.S our position at LI'M'L£ J«:nli

xo:c "'-re food and ...Wtioo u at.cr.d, llo ve attoeki.og tho '"""" rur l'r<a

St.::u;y but ~ 11 o1oor and our rorcea ve ~ •ieD" ot -...uon.

~. l1'le RuJoi&M are contt.nu..lrle their otren.the oc the ucscc;;

~nt fJld 1n porUculor oro IOII.ld.o6 atrone ottocu 1n the orea bo- VERW.U: and

~DI (r...,.,...ti•o odJ.oa E&at or EURSK) ,

C rn) m or;znro:p

22:rd, Jb!.ona reported hitl CD a 21SCX) ton Mr<:ban~ ,.. ... 1 an:! a

6,000 t.cn te.nk«r orr OtiAJ,

22M/2.lrod, 22 bombers or flhiCh ten R.C.A. F,, wora unt. to ' i :ruEIJ,i.

'

Sfllvtll, all retun>od aaJ'ol;r, Bne,.y oetiviey 1n United KingdCil oroa ""' M£11s1blo,

JJml. 2Ltt, ~ tl.clhtor sw.- .... . a ddo .,. .. -~ no hoatn.

&.1:rcratt, .&.o ·~ bccbtr n.a ahot down 1D t.ht Gull ot ac:ta'. . Regraded Unclassified

151 · 2 -

~t/l2n4. ~ a tWioocl !IIJl'OLl (L) aa""""- deo~

0~ l ... t ..... duperMCI ILirenft .m c!~ ou-o bN~I tvlldt~o 4D11 bang-,

:l:rH 4,000 pollOI!-. _.. dro!'POd 1D tho U.T, c!upor aol - anc1 ~..~rp r~rea

Jeri .t.arW. llollola• 22n4, 1\., •- njdo qy a total or otcbtoon Cichtaro

"'tf't tilde on KUAlA UIW1It urodra.e. One enno- airoratt "' dt1troyed1 t.1:tree o!

.~~ .. rtahtero aro ad••lnll and one crubec!, tbreo p1loto ooro, 'l'llroo Dutch t1abtorc

00:. !"tpo!'t.d aiNinS on tbe liM d~ and a taurtb crubtd.

1Wi• 2lot, OUr ~ton !rca BUR!lA dootrc~ Ieven oirnrert on

ue..,-e~ ..

g IQrG. 20th. naw Ch.ineae b«Mera eeoorW by e1z f'1&bte:re

.... -• dl .. bcaiW>a tho • ..,.... .. nortb or l (JIL(X)X,

(IV) ~

(V) 1lWa A 00t1'f'07 ot ISCDe tnnty UI'Qbant ahipi to be IIOOrtod b)' TtVJhi~

Ia ropcrtod to bo tol'lllina at CASABLll!U tor JIARS£ILL&S, Sucb a oonYOY ia about

tO\D' t.!M1 the WNil. e1H tor t.Ma route.


9mLite M

lll'P 'Oil·

o,.. ... /¥ llll'J'lliH lllllt SDIT

(o.s. SIIOQt)

152

Situ&t1011 qp to S p, a. 2)r<l Oto-. ~ prniouo

24 •boUro tllOIII' kept qp lDOMOODt att&cb an! loo&l r&l4o aoo~ocl 1:v

1'"""d" "'*-"t. 1:v artill'"'l" -· &1>11 clin ,..,.. ..

s- .,._ 011 lllOllf CJ11!21Ql lDat <!urioc n1abt -

rooop.- NI')T iD ~ ~ pa1;:r IIOJ&llllriDio.

r:. &ttarDOCIIl M!Ml·- at LUJHI'OII IIIU. -t otr

- tiDD co-allT -be ,.,.,. troopo ftl'7 Urocl.

z._ 1o pooaauion of IDII1ao 111lltaz7 '-Ptt&l but repcrW bo!IPiDc 11&1.1

t.>nrdo """"'*l, Water pooitiOil iD oit:r &1>11 paak -t JINO&l'iOUO u ~

cipol naanoiro ,... iD .._. b&lll!o, an! ptpo l.ioao tlrca otlltro daopd,

Stro"'"""' ottcrta be~ Jlocle to aprove pooi tion toocl tupplioo IIN&tlT

-~•-aotion.

I!Mltl> oirili&D populatiDD ..-b)T coocl an! -

Ci.U det'ODOO -- ""' .. ...,. ..u. Cirili&D ..-:LU.. about £.000 ot - -ihlT 1,000


Cow llo, 1.!. BRITISH IICIIT SZCR!lT

(U.S, S!Cm)

153

Follorine 1.1 ~tuT ,..._ ot operational ovont1 ooTori.og

1bo period Uth • l8tb Doe I 1 1941.

(I) .aw. An It.al.ia.n bo.ttlotleet •• CLt nea covortns convoys to t.brtb Atriea.

!ritiab &nr! Ruut.an sul:aari.n61 bad aevtrAl. eucceasea in tbo U&cU.tel"ro.neM and in

iG:tboro WWI , A CtD'41M 4nlz'<l1er wtf' .... COMidMable ~ l'l'c. bea"7

-thor South or ICEIA!O oa 14th. There •1 little 11-beat aot!T!t;r duriJic the

period ..., tho gcnorol tron4 or oulllarine ..., . ... ,t. to tho lfecliterranoan IOem to

bave cont!nt»d, A _,. ban pueo4 GlbNltar e.o4 there are lndioatlone that

_.rel 1101 hi" turno« bo.clc after bonne boen attccloocl ao4 ~ Tho

lopanooo 1oeoe1 in tho Par Eut oro bolioTe4 to bo ono bottloohip 8\mk lod two

d"""od In addition to oaoualtloo to ll.aht orott ·en« trenoport.o, Shipping loaooo

h&"' boac llcht eltbough little 1otorut1on ~the Far kat or lloroantU. loaoca

llu ,..t boon recol'red. It 1a ~:nom> thet - Brltiah 1hlpo bon beao aeiae4 b7

tho Japanoaa who clolll to bovo ooptur«< ll01GCO ~rcoo tone,

li!AIIl• During tho ftak on41.og 17th Doo•bor 998 ahipo woro con•

~. lioj>Grt& into the u.x. clurllw the - ao4llw 13th Dooolol>elr totalle4

1,043, 000 tool ao4 inc1ude4 3501000 tone or t&nbr !Jiporto,

(II) UilMI

~ Tbo · - r- - IIUCh 41IOZ'pl1be4 and OOllliltlllfl or

tho ._to ot the ) --s 41Tllinlll, ~ It&llon ll0toriae4 41T!d0lll, ao4 not

OIICh -. than ~ It&llon It>tetrr DiT!oiOlll, h&TO rotra&t&4 lleotRrdo l'l'on the

DDUf MF!Jtt Uoe tonrda !EMlHAZI, where d•fondve mnob are reported to bo in

•-.. ot 001l01tr1>otl- '!bo tuk or the Brltiah ?..-- 1a to aroato contl>olon

...,.. tho on...,• I troopo ao4 ~ biJI rollJ'ills, thclllh the -!on or -

llnea or ·-·•tlon 11 ~lotntlllfl o4Jiinlltratlve 41tfioultleo in ~ .. i.og -

- OdTOlltap, l'br the • ._ &l.oo the IUI'Pl¥ qUOitlon 11 aoute, ao4 oven It l'l'eob

C<OT07f - in necMnc biJI t.brcoch II!IOIIIZI bo 1a lllco]T to baTO cl1ttlcult;;r

In ltoh!llolng treab 4otcnain pooltiono Eut ot that toom,

mAll• '1'he srartt;;r or the o1tuatloo in I.IAUD 11 eoirll3 due to

tho toot that the -· WM117 ._ 4 41-iaicm~ in otr~n~ th :dth at aut 150

tonka, lo able to 41-k rolot-nto in Southern s :r.w (chlatlT at SIJ(;aiA

and PATJ.III) uM1Jxlore4 l'l'on tho air, Io tho vbolo Far Eaotorn tbaatrc tho eneiiQ'

bas at ~Hot tho great e4Ventop or botnc able to 110vo blo forcoa In cceparatln

'


154 - 2 -

l)oiOCI"' rr<a . .. treat to .,.,thor, tile ohio! tactcro lntluoncillfl Japo.coM otr.

IOCJ at proMDt _.,- to be (.t.) tt., (B) t.be att.1tu4o or RUSSIA. J.t.PA1 _,

ot.WA qul<k rollllto 1D - or bor 41tt1cult oc- otW.tiDD ...s u. s-ito

bUitT ot cleteat, 1t t.ba 1I!II'I!D STAS aD! OUZ'ool.,.o - pnn tt. 1D llbiob to

tmld up olD" otre"' tb agaiJiat hor, Sho io oho anxi0111 not to otart another

treat 1.n tbe llortb, 'lhl.l.ot !t,btillfl io ot.i.U in -· on t.be Southorn ...S

ellllll rront. It u-.tare _...., tbot &!tor t.be Wt.ial plluoo or u.- ore

.. .,., tile poott.ion or JIJ>AII, wbo hal DOW belli ot - tor onr tour """" 1D Cl!D&,

.ru. boo- prooariouo 1t oporat.1ono art Op6Did on hor llortbern troot, ...S 1t tbera

11 ,tl'1ctaot till tor tile mnrm STAT&!! aad ourool••• to otrqt.ben .,.. 111l1t.r7

poolti<O 1D tho FAll BAST,

ml• C, 1D C, I !lli.t. included IIO!!II.t. 1D hta c.-Jll! oo rr.. l5tb

Dlc•ber,

~. The a......,. 1D tbe1r retreat are out!arillfl he&Y)' oaouolt.1ee

...s leo• or equts-nt ODS it 11 oltar that 1D ..- ooctoro tbe7 oro btillfl ,..,.,..]¥ baruoed ...s -ted rr.. vitbdftwtnc ..,C<lZ'dillfl to plM. 1'0rt.1cularq -t or oo;oor, llllare tbe7 baYe ~t JW.INIIIILIIII in t.be TULl oootor, "'-a tbe7 hoc! to

tall baok 6o miloo, In tbo Soutb tboy at.i.U bold TAOAN\CXl and have not rot.1re4 \

llltlt or t.ba RiYar Ullll, - io .. ••1denoo tbet - cllrldona ban rat boon

Pllled out ror ratitU.,.

<m> m nmow P'lD"§) '!KiP9'• A a.l.Jcbt iaprar881nt 1n tho weather tnabltd 0\11"

ol(bt boob1tlfl to be ro..- on a t&t.rq bcaoy ocalo. JJIBST ,.. attooked on 1~

lllchto b7 a totol ot 167 a1rarett abiob dropped m toao ot R.I. .t.ltbcooch iDt&M

U.-o ...S ottiotan\ - ._.. prnontocl aoourato -.,g r&SIIlto -

'-till. It 1o ootiatocl that about 13, 000 tone ot on1111 ohtppins oaro o\Ull: or

4*-Ced b)' our t.lroratt,

In opl.to ot .-.- &ad lntarior -tb&r ocm-. . cl!tt- tbo rtlrootillfl lllllll' wao p- DO roopl.to, 8)' dq, - llaht -· aad

tt&btora helped - crouad Op6r&t.10DI b)' cl1raotillfl troquoot &ad intonoo attaoko

ohiorl.1" upon M. T. ooooentre.ted and ret1.r1.ng on roeda and on Ml"odJoo.t~• Slnoo

tba - hoc! lcot at laaot o~ t......-.1 ....-_., thoro wu a oarta1D _.,t ot

OOD&totioo CD ta-. iD t.be B!li)IIUI ....... r..JJ. -.ota&t - t&bn ot tb1o

ot t..attoo b)' ..,. -... and ti&btl....-., Trw>op6rt atrorott tq:lnc bt

CRtm ...S IERNL to rol1ne t.be 41trtcult ooa rout&, were aloo tbe objeot or ep601ol

attack, lloa"7 o4bt--htn& ra1clo ware cltrootocl UJIOII tho MiD porto uoed Ill' ~

-liT both 1D .IJ!IICl ...s Southoro rutt. ~ A1z<lrltt oook ar c!_.s about 151000 Regraded Unclassified

l 54 -2 -

j'rtl'dc& l'r<C 0.., I'I"Cilt tc anothel', 'lllo obiot taotora Wl""""illS Jop&Maa atr.,.

!ACT at prooont - tc be (A) tiM, (8) tbe ott.l.tullo or RtiSSU. JAPAII ouat

cttaln qllick ro1111to in rtP of ber 41tficult OOOilCa1n otwatioa and tbo !Mnto•

b1lll1 of defNt, it t.bo 1llii'l'!ll SV.'l!ll ud ouroolna are Jive• tiM in ohlob tc

l>l!ld up oUT atrons th againet her, S.be ia aloe amd0111 not tc otort onothel'

n-oct in tho North, W!ilot flcht.l.ns 1o ot.l.ll in J'O'OSIWI on tho :loutbero and

cl!llf. tn>nt.. It t.lloNtoro -- tbot &t'tor tbo !nit.l.al plluea or t.bo - oro

o•er, the poa1t1o.o or JAPAN, wbo baa now been at ae.r tor over tov:r 1'1U. 1l1 CHirM,

.tU to..,. prooarioua it operat.l.ona aro opened on bor Northern l'ront, and it tboro

Ia surttcieot tlllo tor the maTED SV.'l!ll and ouraalvoo to atz.onst.bon our 101lit&r7

politico in the FAR UST,

mmlil• C, in C, IIOIA included IIUiliiA in bia Coalanl u l'rca lSth

Wli• The Oe.....,a in tboir rotr<lat are sutf'arins hoavr oa....tt.l.oa

and lc .. or eqv.1J80nt and it to clear t.bet in ._ oeotora they are beins onerel;r

baruaed am prneot.d tree vit!dHwJ.nc occardins tc pl&n. IVticularl;r Hortlmoat

or uosca~, otero tho7 hove loot IW.INIII ud in tho TOU ooctor, whore they hMI tc

fall back 60 Dileo, In the South they ot.l.ll holJI TAOAII\00 an! have not ret.l.rocl \

':rt-1t of the R19W HDJS. !bere 11 DO ov1d.enoe t.b&t aey div111ons ha-ve )"It boen

palled aut tor refitting,

( W ) AIR OfJW.n9t§

utanp xtrppw. A eliabt illlprovoao11t 1n tho weather enabled our

nl.abt bombins to be re.....S on a tairl;r heavy aoolo, lll&ST """ attool<od on oh:

ol(l>to by a total or lin a1ror&tt ohlob ~ppod m toea ot II.B. Uthoolsh intanoo

wta.no an! ottio!Aiot- aoroona prnontocl ac.,....to b.-billS ro.ulto oppo....S

1\opeflll. It 1a oat1116tocl thet ol>o\lt u,ooo tens or on.,.y obippinc voro ounk or

danagocl by ..... airarott,

GJV8B••uN• ID I'Plt• of' a&Blt tcr.l and interic:- .,..t.btr con-

41tt- tho ,..troottns ono..,- no Jinn ao respite, ._, 4&7, cur 14bt t..bero and

ftchtora holpocl O<lr C>'ound vperat.l.ono by 41rect.l.ns l'requont ud intoMo ot tanko

ahiof'lJr upon M, 1', oonoentre.ted ancS retiring on ro.dl and ort &erodrOIIO•• Sinoe

the ene~V" bed loet at least • tx tei"UU"d u.rodra~as, t.hefoe vu a oert.tn UIOWlt ot

CODpot.ion on - in tbe l!l!:~IIUI area. i'Ull odoontago ... tokon or tbia

•iboottcn by cur botobcro ud ttchtcr•bcaboro, Tronopcrt a.1rcrat't l'l;ri~ between

C11ET!! oocl Wilt\ to relieve tho 41trtoult ace r outo, woro aloo tho objoot or apco!ol

attock. Hoav7 ntcht-bcabins re14a wore .U.,..ctocl u,pcn tho u.1n pcrto uoo4 by ~

... ..,. both in .\J'RlC.I. and SoutborD rv.Lt, CW airorott ami< <:r 4--' al>o\lt lS, OOO Regraded Unclassified

155 ., .

...,. o! IJdl lll1!1Pl-.· 111e a- .t.1r roroe bopt ..., a 1-so ..w. .rr.n olt.bousb

tllo .. uvtl;)' or bU cllft -· DOt1ce&blJ' claor oNLI, pr<>b&blJ' oo1Jlc portJT to

lo.,., &Ill port.lT to OIIJIIIlT 41lt1cv.lu... JV 881• ·--·w a1alT oa n-eat..

line t.&l'Pt 10 att.aokl ou Mok ana aut : m'cat1oaa ._.. rvo. Ce:r"MMl a1ngl.t

~Old f1cbtoro -• .-plo)'ell to U.. ut.oot. llon7 !Ia 109'• ww. ohot d.., but,

,. .. roll¥ opolllcln81 tbo Go"""' •inele oll(lnod r18htoro had botn hendlocl .. :u. PAR, wt. Dur;.lng the period 7 to 17th a tott.l ot HVenteen •n1111

ail'Or&tt .... - to ho .. boon dutro)'ell in ti.t.IJ.ll, or oblch 13 ... olaiaocl b7

~ On U.. wbcl.o or U.. Con~ S.Otor, tbo c....,. .t.1r Faroe

SI!!Pl7 a1tuat1on -· ocloquato tar U.. pr9eoot requlr-ato of tbo rocl.-lli , ...,.. 1D tbU ...._ lD U.. Sotrt.h, Ruaoian _.,.. •-• to bo hoe"t1Nt

1z> ihl DCN:!S !W!Df but Clr:aD Hr F'orco --to in lllljlpOI't ot operoU- 1D

ihl CRliiU am WAR\al looalltlea ~blJ'.J1"8"0Dt U.. tllrniohl.ns a outtlciant

Air F- to ._ opontlooo turthor llorth, It 1a tbcu81>t ihlt !or ._ U.S U..

NJ>PlT oituiUon 1D U.. whole oreo Eoat of U.. DHlEP!I\ 11!:10 bu boon acute and

probab]¥ occOW>to !or U.. !allure hitherto to maintoln •• intenain ocole of

activity,

( IV) !!WUPt§. On l2tll/lJth Ootobor, ' borgoa looclocl with 1\>ol ell am s .. tor

torpoclo boato .... IUDk 1n U.. harbour, s- ...-w abolton nro "-cod·

U -.,, oaot. 36 ton& clro:>Pocl.

(Y) m smgun

Jllrt.lat.cl oirtllaa ca.ouolt1oo tor -k ondln( 0600/17. - ldllocl1

tour eori<lual¥ WOIIIll!ocl,


(

BRITISH EMBASSY WASHINGTON, D.C.

Dececber 2o th , 1941

1 J;RSONAL AliD SECRJ;T

Dear ur . Secretary,

I enclose he~eln f or your

re~eonel and sec!'t t l nrormo tion cop1P.s

of the letest ~eports rPce1ved from

London on the mil1ta~y altua t lon .

Eelieve me ,

Dear Hr . Sec.rettJry ,

156

Very 8l0Ct< I'ely YOUJ'6 ,

(For t he Ambaeeador)

Tte !ionoureble

Henry l.lorgen thau, Jr.,

United States Tr eosury,

l'lash1ngton , D. c.

'


cc T • U

~i L ::,. :.·i

IIR!T!SH OOST SEX:~ T

U.~ . !T.CR£7, 15?

2St.h Decsber, 174.1.

fliJCOMai&aoncs or BI\EST ye"t.crrday 1ho\•ocl that the.• GUEISf.NAU

t.td lot\. llroydock and cono to 4S3 torpedo bve..t at.ulon . Sf.HARI:i-tOnsr Md

tROll EUC-·f •ere nt.ill 1n dock. 1be Dutch 1ut:..r ino 0 .16 \'hteh &ank

rwr Japt.ntot '-rot.)Pihipl on thrt l?th, bln up roft.or \lnt.er1nc one or our

-l.Mf'leldt on her • &'I to S~, oo ~e 12th, A 6SOO \o:a 1\.ls.daa

Ta••ktr rtt to~oed an~ r\llk ncar the Llerdantll•a on \he lOU\. A ...U

!Otlctc.n L:•r.:hant •easel a"":.! a J!ledit1:1 :tb6~ Gre•k ohlp """ both ~ ~ ainu

err ti'le £aat. Coo1t. on tbt 2)rd a.n,t 2?nd ~upeet.lvel,y, a.ndi on the 2Jrd. a Cre,ek

lhip or e:LnU&r the ras mlnci off y.._qrJi...O'fH l'U\d hu httrl bN.c.hed. A emall

!titlrh ~rch•nt. dhip rae sunk ~J U-~\t. £A$t ot TODRUK yeat.ordfty,

2. M!LII.IRX

On 1.ht night. 21/22nd t :tong rango dt!l'tl"t ~t.rol dest royed

J7 ft'ltmy airert.ft. 11.t J£0AB1A. On 22nd our P"otroll Mr~u~ one~ 1nft~.ntry

•:.1'1 eol\Wll of u . T, 1n t.t.e u rec &.!~ 1. Pn~ ~ut.h or ZVLU".J. A!ter d rlrlng

of!' • O.t'Mn force ot JS tr.;nk.:. t:"\0 150 a1. l'. ~ey C'L'lpt.urtd jJITfl.A!' . L"l the

B:ortb our Coll.a:ln a.lreeW<' on OPN.A!AZI eont.Jr.ued 1\.a adY&nee ·~ .. ~ or £L

.UAAO&, ~ prllor.tro hc•e beu: t.eken :.n tAt:; arM.

On. 2)rd an en~ eoltz:'l n~r tolt~tar.i '~ D-llCI !:'«l!h or

£1~_.,z.t ~~ onc•4e-d and r etreat.ed b disorder l••lnc tlrt.y (;e:-u.:n p:-iaours .

!r.f"~ roportt-J dttll.roying aircraft. on I.U.G.RUM uerodrOM. A tot.A~ or 92

Gtr-ewn end 53 It.alt.a.n M.lJ tanks had b!J.n dtnroyed c r found det~"T"'"Jed by

R.E. u.p w l)t.h. Entlfl¥ o 1..1U appears to be tryl na to hold BUIOhA5 i W'ltU

htt has evacuu.od mor-e t~quiJ)clie'nt. and ::.toros. Our ollvanct hao b..ten delayerl

cnlntJ to bed coinc and Mint.enan:e :Utficultiti'J, 'nloff' •ro nOTr being

OY(!r 061!1 an..:. .-vert ef fort 1& beL'le d..i.r.r~ to· ttrdt prtvct"'\J.ng t.hC' eneary

Ut'.apt"l &..'\11. ~n deetrcyln.& hi:: .

~. 2,rd, ~forth - e s t, e"n' far c-e• no-, hold tbt ll.rlt or w

ft.f.AI( A her . !lorth t ' t. , oo.1r r(,)~es ~:& XELLnJ..f han bten .-!.\Jdre-:n to

the RAC!S-E!llfT'OefG Ue-8 . 'tbe en~·' a ll.c" vr ~v~cv 11 Uat ~ to e al.nttle

raUny end thtN 1a no 1n!"o n"8t :.on as 7~". e! any prelt\lre .


-~- 158

UlH!JPE lORCr!! o

11. N.a beta reported. ~t. a®:lli•U.on or t.tn '* d:hiaiot\S

bet - \Ollln& place In Jopon alnee tho lStho 11111 W brtnc U.. loO\al

r tr"f!Cli\b u.p w 72 d1¥la1ona 1:hieh lt. b ~ll"ed h the MX1INII tbtt Jt:pel\

can equlp aad M1n\.11n. ftepol'ta Sndicet.e t.h:.t. Japanuo tro eepb yhg in

Ill• PIIILirPDIES abou~ SSOOO !A> 60,000 on LUZO;J and about :!0,000 on MI!IWAOo

Stet.or.

The Rua~!ane are i ncreaoinn thtlr prtlcuro in tho LENINGRAD

North '::t at. of MOt.COt the Cflnatntl bnve boon t'oNod blck tor a con-

titl"'rtblt dtetanoe LO t.he ':!eat. ot the itALINl1f - &CSCO: Rlllttt¥•

) o 618 9P.Ml!O~S

JW"'Tbl!!! f!!O!!! ~2nd/2)rdo

21 Lana of H.E. ant 1,800 lnee.ndlarl .. Ttro dropped on

wa:utShJVlll . n:e to-n wt.s i dentified in aj)lt.e o~ .w:h eloud and bJ.rat.a 11e·re

~ ln the \.ar&•t. trea. 2)rd . A !'-.iod<Jrla.nl4 )lt(>btbl.)' h.1 t. .. 1 th bollbt a

12.000 t.on 1.anktr orr CAPE fllfiSn:.rut: . 2Jrd/24t.b . US drcre.ft. 'f'tre sent.

out. COLOOtlt 69, BR...ST 47 Seeamninin. '1\.'0 cJ":"~.shed on rot.urn. About. L8

enr,.y drcro.rt. u:-. oporat.ing at-.in5t. t.hio COW'I.t.ry.

L[piTfJ!RAH&;N

.IJ.llXA. l:AtihUH l.&.ntll ng (;t'ound r~att hvavUy bo::bo"d on 2lat./22nd

ant~ on tht tolto...-lnc day. At. least. e1.x enemy airora.ft trere deat.royed and

other-a d.u&atd. Our tieht.er .o a.t.tac:k.od about 2S ain:nrt. hlch .- ,"'*~ W.nding

&tid t.U.tnc or~ deauoyln.g nine of thea.

BlenheW

t.::.btd - .. t~ U.T. between S~ a!!IJ .:ISURAtA. ~ ftblcl .. r ere des

\royt4 Ol' duaa-" .an-t h•"r/ easualt.les r.en i.:ltuct..-d on tro()J)t. 2.2nd/2Jrd.

lllnt alroratt. t"ronn .auu.. bonbod Tk.IPOLI (L) :aerodrou.

PM WI

.RANOOCH ha.d lt.·o rlr.tt air r-aid en the 2)rd. A atl1tory

report at.atra that rour enoay e.ir cr (lft a ro believed to have batn nhot. tiotm .

Severcl boebins and QS.C:hinf' gun attftcka •~n·• ude by tnellf

aircraft on li'OH and t.ht ~'t'OCAI' Br1da• O'Ye:r t.b• PEHAX rl'ler. '· petrol

dur:.p aM UDUnitl.on t"'ln tter ·• d.,t-royed at. t:PO:t.

Ol.lteh and '9:r1Usb e lrcra.f'- N5A)TW'i on 2lrd et. l ent. troo en._,

endHra, three dett..ro7ers an4 ten transport.• aov·lo.g ln t.ht d1rect.loo of IWQIING.


(I) JIWio

(II) mlllll

e.wa.. .Ll 159

I!IU'I'IliH lla!t S.:Rit

(O,S, S-t)

.J.IlUl• Qlr -pa capturool BEIClltl ond ll!llnll on t.bo 11tor1109n ot

tho :!)rd an4 _,qda4 BBlll!IIZI on the -.. ot the 24t.b. 01> t.bo .. ani,. ot tbo

~ 74th Ibcll&n P:l..Uion ocaupia4 ll.II!CI after .....,cal. .. ·- reoutonc. ·

tho ld.ld lo tbo Baa\, Qlr _.t1o110 1n SOUl[ .._ &nil tbo occupation ot

ll!fDBAZI -• 1o baTo .. parata.~ tbe a._, &nil It&llan toreoo &till U\U. ttcht to

Itt\ In tbo latter, ,._ S...tb on the lltorncon ot the 23rd • tal.r]¥ :Lara•

G._ torco, otto. Mld.nc a .,._ o\&tlll o\ .umll.tT1 •• 111\.bdra'f'illc Soutb

hat ba'riJos outfared -h d.-,. &till a bo&"7 loot ot vohioloo, Stro,. ool,_

- boac dtroo\&4 - JmAlii1 &till otope \oiooQ lo out the roed bo-., JIID.IJI1l

an4 EL .IGHB~,

~~.~.~a. 24t.b. PlliUI, a. -""' oontaot, Qlr r...- -.,. nra 41 .. b<olbool oonotan\:1¥ cllrllll! 23rd/24tb &till on 24tb -~ •• bopboaard

IIIII r .. OUUAlUea rooultod, Otbor -lor• not.biDII to ro-t.

liAIW!Il· Lorge · - .... - tiolloootf S.400!& &till l.aoitJII• boiol

atlolopte4. IIICIIDO ~ 4on1e4 &till all denial schoMI ocaplatod 24t.b.

mrp pv;. OD tbe af"twDooa ot t.be 24th f'4b.1.Jlw .. cont.1.ni.1.Uc

!12th ...u.iniahad tnt.tnoitT olq \bo •- ll.no u pre"iouo night, .l oJieht

·- .,...v.u..a 1n tbo control -tor -.s. IIOUll1' c~ ... 'bW>8 ooa\&1na4

111' our troopo, l!noiG- --nt ot..., pooitiono troo aircraft -*• ond

ortU1"'7 ot all caU- -.. PoaitioD -t1&117 -~

(Ill) .llB sgurmp

23rd/24t.b. IIRIIST, ?2 tone ot 11,11:, wro dreppod &till -rio _.

... D aorot1 tbe cJooD but the .aD eo:reen p-evented. d.ouu..cl obMl"fttton.

r.gupw. 60 tou of R.I. and cwv 6,000 ~ ..,... droppe4

0• tbo ollt.!atod pooi\ioo ot tbo low lf'IOr vh.1oh booV7 ololal oon41 tiono • .,, •t.

13 A,C • .t,r. aat 7 lt, !f,.Z.AJ. draN.t't toot pu-t 1D tM J'd&bt'• operat.S..cat, ~

lin 2oolaDd al.roratt oroabod, ..,. ldl.le4 ond tift iojurool,

24t.b. !bo :Larao -.., at\aclrocl &till probah]¥ hit b7 an Auou

Uan -.rl&nl!, - acw p1ob4 up b7 • &mltrl&nl! &till ... - .. at ·- 12


160

- 2 -

tDOta vith a slJabt list and esoorted by a JU 88,

the JT1 as, Sun!erl.aD! attacked in race or heavy J..A, fue, At 10.30 a.a. the

tanker- again sighted at CltTJDUEIRA Harbour where aha was attaoklec! the -

afterDOOD b7 a Beaut art and bit uddsbipe 'llith one torpedo, Tbe abip no t1118ll¥

boa~. Qxl J!oapden attacked oDe or tbe battle oruiaera at BREST and dropped a

be•'Y •i&fat bomb in the tarset area,

@p:gRMIMN, ~ Hoeylanda attacked a Jarvllrc ground Vest of

EL AGHEIIA and Touhanlca destroyed 8 aircraft on tbe arOWld at I.IAGRUN, Hu:rrioanu

destroyed a petrol lorr.r and 8 other lcrriea on tbe road :Jest or EL AGIEIU,

ene117II, T, moveent 'tills reported East of this place,

23rd/24th. 7 11ellingtona auccessflillJ' attacked ben'aaka and ll, T,

parke at UISURA'I'A, A nuisanee raid lasting lD boura was made on 'IRIPOLI (L) ,

Ene117 aircraft attacked l.lAL1ll. without caustrc seriows cioaage and ...,.. suapected ot •

a1oo ~. ~ the 24th tour JU 88' • 'llith heavy tighter escort tttioe attacked

liALTA Harbour, One bomb bit a merchant vessel and one ot H.ll, abipe was s,l!gb~

Ol:Jaqed, Three JTJ 881e were destroyed and another probabl,r destroyed b7 A, A, and

ficbtera, One l!urrioane 1a lliaairc,

FAfi EAST, !!AIAYA, 23rd, One or our aircraft attacked PATANI

aerodrolle where about 100 &1\810" e.ircratt had been located,

DIIQ, 24th, l'tn BlenheiM attacked an ene.,r toroe ott JCUCHOO

&nd obtained one bit on a tranapart and aix near 1111saes, A beav,r ena;r at tack Oil

SINKA!1AN:l aerodrOID& rendered it uns<IM'ioeabJA but no e.ircratt were deatro,...S,

illlllll• Further Nparta of e.1r raids an RAIDOOH on 2)rd indicate

that or 60 Japanese balbers escorted b7 t!gbtara 10. e.iroratt ll8re shot down tar

the lees of three troa e.1r Volunt.W Oiloup Squadron, ~e pilot is aate, The

R,A,F, bed no ouua.ltiea, 11110ontu.ecJ •tiaates ot oaaua.ltiaa sin 400 peraona

lt1Uod. Anti.oparaonnal. lxUe uere larsa.l.r uaed and daaage to the Horbour was

•Uebt.


1.S1

MILITARY I~?ZLLIGENCB DIVISIOU VAR m:PART!G!i'l'

Vaahington , Decocbor 26, 1941

IlilO iUI.I.T 10 II llUI.LllT I II llo. 4

MID 461

!be lnforcation contsined in tbit torloa of bulletin~ will be reatrleted to lte=• fro• o!!lclal tourcca vhich gra ro~tonab~v confirmed.

Thie doc~nt la beln& gl•on an e~ro•cd distribution, and no edditlonP.l co:>io• ,.,.. aVAill\blo In tho Mill tary Intotllgcnco Dlvlalon. For proYltlono r,ov~rnlng lts reproduction. 100 Lotter TAG :150. 05 (9-19-40) ~1-3-K.

Eta'LOYMEl!'l' OF GC:RIWI @ TITIJll( @GI J.!EliT 0:1 11011-TAlll< IHSSIOIIS

Tbll bulletin 1s ba•cd on a r eport aubclttod by an Acerlcan otflclf\1 obac"cr In Berlin . 'l'ho tranolatcd article orlf:11l3lly llj)poarod In tbc Millti.r llocbonblatt, a acDI-ott1c1al Gar""" 1:1111-

t&r)' J011rnal .

GO!I'!'Eli'I"S

1. l1~1XJC'l'!Oll

2. A.>l AliTITANX CONPAliY Ill ACTIOII

3 . GOJ.!MENTS BY OFFICIAL O.BS't:RnR

' --


JHPLOniEIT OJ OIIR:IA:I AITITAIIl n::GI:.UT (I' b -tDI iiDftii

1. l!lTRODUCTI <II

162

tho regillelltal a.~tit&Dk • ""'P""7• the 14th CC1111p""7 in tho

Go,...,. infantry reg11Dent, i o OCIIIIpOI..S ot t our platoona. laoh pl &

toon hU throe antit&Dk- cuo aq.aada and & light .ubino-g~m aquad.

Durill& tho Campeign in tho r.oat ill 1!160, u tit&Dk ~mito •oro equip

ped with tho toa1Uar 37-. gwa. It 11 'belien<l thet tbia "'"POll 11 be inC ropl&ced by the ~-. anti taDk C\111• Current ,....r .. la and publiahed photograph• ot tho Ruooian Campaign ahow both the 37--. and the so-. woapono ill action.

All German antitank ~mito aro motori&ed, and the weapona

ore nor.::~~.lly towed by actor vehlolea. In cCDbat, honYor, aa the article tranolatad be10D' indicates, lituatio:a occalionallr viae

which noceuitato the ...,.,....,.t ot r ecilllntal antitank CUM by other

caeanl1 1\ICh u man power or horae power .

V1hen German auaul t infantry rogiaento are not threatened by hostile t.nka, the wo&pona in tho antit&Dk companieo of theoe

regl.menta are trequontl)' uood to auppl61l6nt tho fire of inf&ntryaccocp~ g~m~. tho action doacribed ill thia artiolo illdicatoo

how reciloental antit&Dk woapo:a h&Yo 'beoll uaed en ncn-t&Dk lllaaicu.

2. All AIIUTAIIK COUI'Alrt Dl AC'UOII

"Prior msnouvere alld combat tiring exerciaeo had given uo

ccnfldanoo in our anti taDk C""'• &nd our faith 1n thooo Yteapono !Jicreuod attar our tirot tow da)'l or actual o001bat experience.

"llarly on JUne 20, 1940, "" finally approach..S tho - · who woo ,..tbodlcall)' cOYerinc hlo retreat to the south with beay;y

and well-aimed artillerr fire . Tho eaot bank of the Yourtho at Flin had been In cur poeoosslcn since oarly in the morning and our

lliaaicn was to terce & orosling over the Ueurthe, and then to attack

and puroue the defeated toroeo. In opito of tho otronc artillery

tire, "hioh -o intond..S to prnent uo trCCI orooolllc tho riYOr, and

the doatroyed br14ce, ""' roached the other aide with our IJO&ll arao , etten l"adinc tbro~ water up to our hipo. the adY&Dcod ol-nto ot our re~imant quickly ooo~ied the outokirto and the exito of the

village. Reccnnaioaance ·~• immediatolr otartod ~y pa trols fro= tho bicycle c<np""7 and the re11iment and we T:ere ordarad to attack

hostile un1 to 'Jihlch bad obto.lned a tootin~; and nre ottorins ton&•

clouo realatanoe at a point 2 llllea oouth ot FUn. u the r egillellt

prepared to attack, - ••n<l our antitank woapooa to the oroot or a ridce. At firot, otron& hootile -chille•gw> tire preTentod ua

tram orooain& thlo rid&• • and in epito of all our ettorto it wao

impoosible to discover the exact location of the on~'• reoiatance

neeta .

"There were app&rontly 2 heay;y aaobino CUill directly ooutb

- 1 -


163

of US at a rans o or &bout 1500 yt.rdo, and tomO O .. Orl had bean bro~t into poaition at the edr;e or the wooda t o our ri£ht. Before ~ could s afely carry out the attack, those woapono had to be put out of aoticm. Ti'e fired about throe roundo l'roa each antitank p into the ou.pected ,..chlno•p pod tiona, and the r.gi-110ntal iDtantry-aoooapaeyill& ~ a loo tired OD the10 tarsoto . Presently the fi.re CCI:dD£ trO!> tho aouth ouboided, but i t contiDued rro= the wooda on our right and from the hei&ht• on our right front. Ao t he attock pro~roos ed, our infantrymen on the left advanced at a good pace, and the word l't&a paaeod arounds 1Antit&nlc guna, keep up olose--oonti.nuo advancing. 1

"Our motor Tehlclea we.re not &Yailable beoauae they were unable to croao tho Jl.eurtho until the pioneers had built a bridr;e . The terraiD aloped oli(;htl y to the oouth, howenr; u advanced rlthout difficulty, towing our r;uno by hand and carrying our &CIOu· nition the atJile way. Tho maohine•r;un &lid rifle tire on the ri.:ht ceased o.ftor the infantry on our right flank penetrated tho woodo.

"The advance ooet1Du.4 without complications in tho di r eotinn

of Do:opteil, and our auault o~nto w.ro soon out or ai&ht. \';ith much exertion on the part ot th. CUD orew• we croaaed the rid~e quickly. After wo had procHd..S obout 500 yardo, the projectile• began ..-hiuiDr; over our hoado and otriking in tho fanll)'&rd behiDd uo . lie !-.ad dre&d)' laarned that rapid, unl.Dtorrupted advance is

tho best protection againat hootqo artillery fire.

"rie covered the 3 l'!lilee to Domptail v;ithout our motor vehicles . One crew, however, round a horse and ueod it to tow their gun. Other cre\7S attached theira to pa seing ~:~otorcycles, and one cun """ tCft:od by .., abo.ndonod French tonk.

"l'.hon the aesault olenonta ent.ored Dacpt&.il, they ":J-ere

""t with he&Y)' rtre. Conocquentl)', "' rushed forward with our tun• to aaaiat our endangered oomradea . After paasing tho flret rew housea, we too wore greetod with deadly tlre. The men f r om

the rifle companieD were forood to co into shelter, tll\ile we aousht pr otection behind the shields or our antitank gtma. One houae after tho other w11u taken under tire by our guna, 't.'hi ch always uaod an antitank pr ojectile firot• and followed with an B. &. ahell . Graduall)' the hoetile fire subaidod .

"The intantrycen toll-ed on e1 ther aide or the atreot and oloarod ~~e houoea ayotemat ioally. At a turn 1D tho atroot wo began firtns asaiD, prosumns tha t it-· oafo to odY&DCO. A hoatile machine cun opened up, however, and r.ounded five men, one mortally. I t wao impossible to doto~ne the exact location of the machine gun, but we suspected 1 t t o he 1D ono of two hnusoe dmon the atroet on our ri&ht • Conaequontly, wo fired aix H.E. aholla iDto oaoh or them. 'nan OM bouae began t o burn, t ho

•Probably to dot.naine accuracy by aeana or tracer. ~·

- 2 -


. .. . 164

cac.!Jine G'ID ccued Nrlr.~ a.nd ..-e ren...-.d the a.dftnce . In accordance u!th cao'b&t-prov8ll pr ocedure, tl>e intantryr.on, protected by the "'111,

advanced on both aida• ot tho otroot and aeorc~ed all the houce• . The machine C'Wl vraa discovered in a. collar entrance, OIJ:l\Dufl&(;&d with branches to aake it 1nvia1blo from tho otroot, A fe> l llancl gran.o.dee

ollonood the aniper• firins from the roofo ,

"Attor an hour and a half, the villago wu oompbtoly in

our hondo. Clouds ot aolca rioing into the •Icy and bW'11.1n& house a

gave evidence of tba bitter strugclo. lie antitank r-en \rert prcud

that we had been able to clve such excellont aasietance to our caoradea in tho r ifl e oompanioa . "

3. co·A:JE!ITS OF OFFI CIAL OBSE!lVSR

a , Al thou&}\ the German anti tank &un 1a noru.lly t"""d by "

c:otor vohiole, gun orcrwe aro frequently required to reove their we•pono for oonaidcrable diatance by hand, In tho ection deacrlbod

in ~'• above article, ~ ~ra DOYod a t leaot 5 ~lee witllout tile

assiotance or their normal prt.e ~vera.

b. Althouy, the pr~ry nieoion ar antitMk woa~ono is to cocbat tanka, IOQe current German traininc raaphleta (tor exaople, Du ~dobuch by Colonel B' :n;en1ort , J'Ubliohcd in 1041) state

that in eroclal eituat!on•, ouoh u oOI>bClt in v!llagea, o.ntite.nlc

gun• are oopocially errootlvo Jn oubdui~ hoatil e otrone points . Uature.lly, auc:1 ooployment 1s reco:~F.~endod only in tho abaonce ot a hostile tank threat,

c . It ia loe;i.,lll ror !he <if,!'11W1~ to ~S..o a'!iv:mta~e of the !lability, firo pcr.;;er, "\ntl t:..e li!:ite~l 0.."":1~:" ?ro~et!on or their

reciltento.l anti te.nk '-'eA~cne t o use thcu ~a.inat 7ound ta.rtet::t cheekins; the ach·ance of Maault U!lits. They "'wJ>licve it ie an in

efficient uao or o.va.ilo.ble natoriel to !uwo such "•capctHl o.nd their crows remain i d.le durinG OOIUbJJ.t, if they can be uaod ortootlvely againat tr.eno.oine hoat.ilo targota :utd if thoro 5s no threat from onq tanko , Tho outhor•a etatel:lent that hia sun• oli.Ornated anti

tonk projectiles with B.C. •hello when ottem?ting to neutralize hostile fire coming fr03 houses on a villa'• street il noted •~th interest. Later, when th~ aource or the hoatile ~ire W&l localized to one or ~o buildings , he at~tes th•t H. E. ehe lle were uaed.

- s -


. (

'

165

MI~ITARY 15!ZLLIO~CE DIVIS105 WAR DEP.t.R1'ME!IT

Vathington, December 26, 1941

lliJ'ORIW'IOll l!UI.UTIII llo. 4

MID ~1

The tnforcation contained tn tbil eorl oa or bull~tlne will be rea trlcted to items fro• official •o~coa vbich are ro11.aonabl.v con!lrmed ..

Thia document la beln« «l•on ftD &P?rovcd d1etr1butl on, Md no Additional eopieo aro e.uilablo in the Military Intolltgcnco Divie lon. For prov1a1ono r,ovornln« tte reproduction, 100 Lotter TAO 350.05 (9-19-40) 11-:S..N.

EJ;!PLOYI~lT Ol!' G?RfWI A!l'I'!Tt.NK R?OII~EliT ON NO!l-!l'A!IJ( M!SS!OIIS

Tbil bulletin h be.aod on a repor t oubaittcd by an ""'rican o!!iclftl obocrvor In l!crlln. The tre.ntlatcd article or1g1ne.ll;y appoarocl In t bc Militer lloehenblatt, a oo•l-ottlclal OerQ)tl mllt ar:r Journal .

CO!lTE!ITS

1 . lllTJIOIXIC'I:!Oll

2 . All A!iTl!l't.NK COIIPA!IY Ill ACTIO!l

3. COMMENTS BY OFFICI~ OBS't:R'I'JR

'


(

!:.!PLOY'...IUT OF G!:!'.;.:.t.;; IJITIT..Jil( .roi::liT 0!~ UO!:- tA:'K JlSSIOiiS

1, !l"TROOUC'f!O!I

166

Tho regittental anti tanlc OCCipany, tho 14th Compa:\y i:> t.'le Gorc&n infantry regiment, is compooed or four platoor.s . S4ch pl a toon hal three antitank- gun squads and a light machine - gun squad , Ourlnc tho Compaign in the \:est in 1940, antitank units nero equippod t~ith the familiar 37-mm, gun. It le beHoved that t his >reapon 11 being roplaoed by the 50- m. ... anti tanlc gun. Current newsreels a.'\d publ1ohod ?hotographs of the Russian Carn,air;n show both t!>e 37 .. cm,. and the 50- :m:t.. weapons in action .

All !tortt:an anti tank units are notori:.ed, and the "''ea?ons o.ro nor::ally tor:ed ~~,motor vehicles . In cc:cbat, hem-ever , as t."e article translated bel~ 1ndie3tee, ~ituationa occasionAlly arise Yhich nocoaeitate the :.tove."'2nt ot regl.::ental o.ntitc.nk -;w:as by other =cant, such o.a OIU1 p<n':'er or hor so por.er.

~hen Ge~ &SS$Ylt infantry ros~nts are not thre~tencd b;r hostile tanks , the n-eapons in the antitank cowpa.nie:: or titese res!.,.nts c:.ro t'roquently used to suppler.>ent tho fire of inrnr.tryaccccp&n1ins guns . The actio~ describod in thia artic l~ indicates how regimental o.ntito.nk \·:eP.pons hava boC~n uaod on nan .. tank onitcions .

2 , A:l /JITITAiiK CO;J?AliT Ii: .'.CTIOll

" Prior mMeuvers o..nJ coll'tbat firing exorcises had given us confidence i n our antitank guns , a.'"ld our !'ai~ in these ·,·,•capons increased after our first rew days of actual conbi!Lt exper ience.

"Early on June 20, 1940, ltt finally approache-d the ~ner.ty, "ho na MthO<!icall:r cover in; his retroat to t.'>e south r:ith heavy ond well- aill:ed artillery fi re , Tho east bani: of tho ::eurt!>e at Flin had been in our possession einee early in tho ~or~~g an; our ::dalion t"'31 to force a crossin: over the Ueurthe, and then to attack and puraue the defeated forceto. L"1 a~ito of tJ1o atrong artiller y f'ire , '·hich t•aa intended to prevent us fro:~~ croaaing the r11fcr, and tho doatroyed brid.ge, T'e reached tho other aide T:ith our s:uLll am&, , !'ten t•ad1nc thro~ water u;> to our l1ip1 . The advanced elc:lJ6nts of our rolinont quickly occupied the outaklrtl and tbc o~its or ~~e \"lllaeo . Recon."'l.ais5a.rtco t"~s 1:-nediatoly atarted !)y pa tr\!ls f r c.'"n. tho bicycle co:"lpany and the rog!ment and we .:ere ordered to attack hoatllo units uh!.ch :uld ol>t(l::-ted o. footi~1t o.nd ' 'ero orr~ri:1s tenaGiuua roelatance at a. point 2 miles oouth or Flln. J~s t.."le reGt"Ccnt rroparod to a ttack, we .noved our antitank wonpona to the crost of • ridge . At first, stron~ hostile cachinc- &un tiro prevented us trom oroaoins t:.t 1 ridge , and in spite or all our e f forts it \".'8.s i.opo1aible to discover the exact loco.tion of' t!1e cneay ' s reaiste.::tce noata .

ftTh£re .-er·e apparently 2 heavy aachine s uns directly south

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/>. 167 of 110 at a rom;e or &bout 1500 yardo, t.nd ICI:le OtllerG heAl OOOD

brou£ht Into posi tion at the edse o~ the wooJa t o our ri£bt. e.e!'or• r.o could aarely c.rry o\lt the atta.clc. thoae we&?ons had to te put out or action, r:e Nrod about t hroe roi!Dda !'roc eAc11 antitank gun Into tho auapected ucbino•!!UII pooit1ona , an·l the regi mental lnfantry-accocponying guns alao tired on these tarsets. rreaently tho tire cooing froa the south lub•ided, but it continuod tram tho woods on our right and from tho hel~;ts on our rl&ht front. AI the attaok proer essod, our Infant rymen on tho loft advanced at a cood paco . and the word vraa paaaed around1 ' Antitank cuns, keep up oloae--continuo advancing. 1

"Our motor vehicles v:ere not available because they were unable to oross tho Uourthe until tho plonooro had built a bride• • Tho terrain olopod olichtly to tho oouth, however; ~• advanced without dlrtlculty, tcming our &una by hand and c,.rryln£ our mcunitlon the same wo.y. The ::~&chine -gun aftd rifle tire on the rl;;ht coued after tho Infantry on our ri£bt tlank pODetrated tho .,oodo.

"?he advance continued 1t1. thout ca:tplica.tiona in the dir ec:ti<'Ul of Do=ptall , and our assault el.clunta were eoon o\lt of 1i;;ht. ";';!th much exertion on the part or tn. cun cr.-a we oroased the rid'e qutckly. A.rter we hod prooeeded about 500 yards, the projecti les bolan ~l••ing over our bcado and s trikins In tho r~ behind ua. lie had already learnad t!lat rapid, uninterrupted advance Ia tho boot protection a&aln•t hosti le artillery tiro.

"~e covered the 3 ttllea to Dornptail •:1thout our motor vohicloa. One crAw, ~awever, round a horoo and ueed it to tow th~ir sun. Other crsus attachod theirs to pnaaint motorcycl es, and ono t;un wao te>to:! by ._., ab:u1donod Frenoh tnnk.

"'then the assault elencnte entered Doopte.il , they 7.'ere not w1 th heavy tir e . Consequently, we ruahed fon:ard Tri th cu.:tun• to aa1iat our endangered c~~adea . Arter paaain$ the ~irct few houaea, we too were greeted 1rlth deadly tir e . the :r.en tro2 tho rifle companies were forced to go 1nt o ahelter, lihile we sought protection bohind the •hiolds or our anti tank &un• . One houae att.r the other wa.s taken W"tder fire by our guna, •'hich alwoye used an antitank pr ojectile tirot• and fol lowed with an H.E. eholl . Gradually the hostile fire suboldad .

"The infantrymen followed on either aide or the atreet and c leared the houses systematically. At a turn in the s treet we be1an tiring a~ain, presuming that It was oafo to advance . A hoatile machine gun opened up, however, and ~~un4od five men, ~e mortally. It waa Impossible to determine the exaot looation of tho tuohino gun, but we suspected 1 t to be in one ot two hr-uses d~ the atreet on our r ight . Conacquontly, we flrod six B.B. •holla into eaoh of them. ?men ono bouse began to ourn, tho

•Probably to determine accura.cy by M IJ\B or traoer. ~·

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aachille CUD ceued N.ri nc &nd n rmewed th6 o.cthnce , ill accord&nce vith ca~bat-prOYen pr ocedure, tho intant..,...,., protected b)' the 'Rlla,

odvancod on both aidoo ot the atroet ODd aearc!...S a ll the houaeo ,

Tbo mAchine c;w> waa dlocon red in a ooll&r en t r&neo , o ..... urt aced with branohea to oake it inviaiblo tram t ho ot root. A t.-t hand ~;r.zwloa

1 i lenood tho an lpora tirins f rom tho r oofs ,

•.u-ter an hour aJI4 a b&lt, tho village wt.a completely in

our lw>dl . Clouds or QOI<e rlslD& into tho • Icy aM burnin& house• pvo evidence of the bitwr atrug;;lo , 'le t.ntitenl< <>Oil \O'cre proud

tb•t wo ht.d boon able to , sve ouch exoellont aoai 1tance to our

oomradoe in the r i fle oampaniea,"

3, C0:4!JE!ITS OF on iCIAL OBSERVlill

e , Although. the Gen1011 t.nti tank '"" 11 normally t.>wed by o. motor Tehiole, gun or ewa ~re frequently required to ~ove their weapons tor oonaiderablo dlatance by hand , In the action described in ~~&above article, ~ ~r• ~e4 at l eaat 5 mile• without the &&siotanoo or thoi r norma l prt.e .o• err,

b, Al thougp tho pr~ ~ai011 ot antitAnk ••apona is to ccabat tt.nka, ecce current Germ.n traini"& l'&lll'hloto (tor oral::plo,

Oao Kamandobuch by Colone l bycen<lort , publhhod in 1941) ataw

that in apeclai aituatiou, noh • • o..,bo.t in vill&j~U, antitank

gun& are especially errootl•o Jn subduin~ hoetil e atron: points . U&turally, auoh et::tploymont i n reoo::vnendod only in tho a.b1onco ot a hostile tank threat ,

c . It 1o lo;;ioo.l t or the G6""""1 to ta~o advonta&o ot the .~::~obili~J, tiro p~.-er, '\l'ttl the 1.1:itotl u:n-:.:- 'rotec~ion ot their reci.Jnonta.l &nt1 tank 1:08&-,<)n& to UBe thee &«AiD It ~round tt.re,ob checkint; the ad•Tance ot ... oault tmita . l'hey believe it 1o an inefficient uao ot o.vailable ttateriel to havo such Tocapona o.nd their or ewe remain idle during oomb~t, if thoy oan be uaod oftootlvel y

against menaoln& bootilo targets and it thoro Is no threat from

ene:.y tank• , The author • o itatooMt that hh t;W>• dwrnated antitao.k projootlloa with B. £ . ohello when att<>mpting to neutralhe

hootlle tire oCIIing frOIIl houoeo on a vill~&• at.r oot 1o nowd 'o1.th lnteroat . Later, when th• aouree or the hoatile ~ire waa looali ,ed to one or t-o buildin&•• he a tdtea that H. E. ohol ll Wire Uled ,

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169 RESTRICTED

G-2/2657-220; No , 581 I!.I.D. ,rr.D. lloOO A.t:., lleee<lber 26, 1S41.

SITUATION REPC»!T

I. Pacific Theater.

Philippines: In the north righting continues in the general areas preVious!¥ reported upon. &10!1\Y air activity continues . The si~uation in the south is obscure. According to the press, General l:acArthur bas declared J.:ani1.a an open city. Hawaii: No further report~ ot eneoo,y activity have been received. t..ala,y~...-rliihting continues along ~he Perak River in the west. The Japanese ve been bombing British c-.unlcations in that sector. In the eaat the British have withdrawn slightl,y without contact. !long kong 1 The press reports that the Britiah Colonial Office has confin1ed the rau of Hong Kong. Borneo: The n:tch elaia new naval successes ~! S.Uawalc. Japanese have cOOdiiCted air raids on Singlcawang (southwest coast) and Taralcan (northeast coa st) . West ~· No further reports of hostile action. --

II. Eastern Theater.

There is no indicated chanQe on tho Jlussian front. Both sides report hard fighting in the lloscow area . The Germans continue to hold tho line: Orel- Kursk- Kharkov.

III. Western Theater.

Air: No reports on Britiah offensive action. On the night of Dec0Ciber24, German Air Foree sent out several planes and a awnber of long range boabers, but onl,y one of these &irc:raft ""s seen inland over Oreat Britain.

IV. lliddle Eastern Theater.

Ground : With the fall of Bengasi on lleeecber 24, control ot Cyrenaica rtrtiiilly passed into Britlah banda. Groups of isola~ Italian troops remain in Cyrenaica, but the remainder of O.meral Rooznel' s Anoored Forces are endeavoring to break through to Tripolitania via Agedabia, where the British are pressinG the retreating forees. Inclement weather continuea to hamper the R. A.F. and Britieh Lotor Transport.

Air: It has been r eported that a number of Germsh planes were deatroyed on the ground by Axie forces befor e their evacuation of Bangaa1. Numerous Axie aircraft at Agheila airdrome were reported grounded by f\lel shortage. Brit1eh bor.>bere carried out a nuisance raid of several hours' duration on Tripoli.

RESTRICTED


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PARAPHRASE OF A S£CRET ~MESSIGE

REC£lVED AT WAR DEPT •

-, at

I ..:~o ~ l !l«geo!?er 27 , 19U. L-~~~~-~> ___ I

From filedll.-_ltRJ.olUOL-._-cl,~ llllntehtt 2U , 1!'41....

Received In I. B~:~Z~·..Ll~>.5 ___ , a. m.l Deg•htr 21 p.m. 19Ll No 21

Ft>r Arnold ltotA At:.inaon about yaur oaiJle Jlo. 190. (.LF. !!o. 540)

T<oo tollowin6 trouble• deYoloped aoonc the ~ e-17 c pl&aoo ~ch

rO&obod Uuo :!!d.dle Eut on !IOve:>ber l, lil4l.

1. So<d>o ~ 1n ncb, -.blab bas -n oorreoted by JNttin,

.sluavoe on Br lt1•h bor.lbs c:d ualQb A."31Urio..n rao~a.

2.. Eareb Joora Oi.ili.nro to o l oae \.bun o.,onad. &ve 110t. diaoover<Jd.

3 . A\oltCJii)M.tic pilotil\:; ru<lclor oout.rol 1"rvti1&1nt; . rot.&on not kno·Jon.

4. G"""'"' oubatluloe ol oolr-oeal1nt; oa.apount 111 .1\:el tenk e&uoln;

ono onu!n• to tree&e.

~ . E>teooo oil oonous~t1on by mnber 2 <lolld 3 on;;iJlu - up to l£

quarto - oau- not dotor:oinocl.

8. Tach<DOter treeal.D-.o • oil r.ohlnc; beuerator with DO draine: •

t o oil oyo-.

7. IU.;h oil aad cylinder het.<l teropero.tureo.

8, tou of en,;ino pow•r - cauood 'by oxha.uot ::~Anilolc:l l.UM;;o .

T'nroo h1.;h-lllt1t uuo d&yll0ht :U .. lono 114vo woo porfor~.old by llloao

planuo ao tollowao

NoVG':Iber 0: Z ple.ooa . with a mleai on ~;aJnat ~n!Jll&d,. a tote.l

•lhtl!l\co ot o.bout 1240 ..tl••· On U1e1r roturn ono pl&:lo force ltu>docl b•

o..uoo or lao:. ot tuel about 200 !l!loa 11oort ot boo:w bue in urw-JQ country .

Tno pl....., ....... bcnb oi.,)lt -re olostroyed &DU tho cr ... Wli<urt. T!.G lou of

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PMAPHRASE OF A SECRET C()IIF10EHT1AL RESTRICTED MESSAG£

RECEIVED AT WAR DEPT.

171

• ~~::: I 19L L___:~~-~--

F Filllll.__ _ _ --11 ~:: I

Rece~ In I. B I •· m.t • P.m.

tbo pUM - at t.rs.'bllt.ed. 1A J..ar&• ~ to erron bir the MI'V10a ......, and

pUot, Ite ~ t11:l8 - 5 halro SS almltoa ,

.. ~ 14• OliO plana, noac::t-1 biai1Cil, 4ppl'CIX1.m~ 720

!len h.r 19• 018 plana n tb Dane ~ot, a aiasim or abcalt

860 a1lN &lid 4 bocu'll 25 aimtee ~ t1.1:11,

~Uq~Uon or oil. 1a tnvest!Q.t.d. ~ an ....s1Jlc; a 8CII"mmU7 report,

All pl.e.M8 ..... l OIIdecl -.!.tb 8500 pc10JDCI8 ot bcxtle and uoo ~

caJ.lCINI of .fUel ,

(o-.2 c-to 'dl1a cable cororl.if's 'llitb clireoUCD c r 1181'1'1.7 Cb1e! o!

statt ror report ....-rl&ing operatl.caa, .UaiOila ;.net pa-!orDIIICI8 or

!VaJNuecl bir Captain l)oall a>8k All. oopl• 1A!...-t1ooal.

1. L 110 2l. ..,,.... a,.,_.., __ ,...,..., ___ ___ ....,..cr.., .

- -~· 00 1 OHQ OASW ..... OCAO C AAr ... QIS USif

9 2 X X X 5 6 ..... •• .. ... ~ ... . .. .. .. ... ... ... . .. ... ..... 2 2

ou • OI.L.A .... JlC - ·-X .,. ... SECRET X - Regraded Unclassified

P.arr:l .. n~ te:

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December 27, 1941 10:24 a.m.

172

..... go t in touch with several other things, and every thi ng's in the mill. I hooe to get something hy eleven o'clock.

The ~oy I ~sked you this morn i ng.

Th11 t's right.

!low, wha t •. ...

~ut I think I'd like to come in and see you five ~inutes before you eee them.

Tnot'e all right. Since talking to you t t is morn!1g, uo to very r ecently the biggest ueera or t~~cks &re the Russians.

I h3ve Hr. Gr omyko right here.

On this thing?

That's right. I' l l tell you why.

'i/h!o t?

I w111 explain to you "hY ·~hen I see :;ou.

',iell , gi 'le him wy regards.

I'll do that.

C11n he hear me?

He can hear me.

But can he hear mef

No.

Well, her e ' s vodka in hle eye.

(Leut;hs) Okay.

All right .

Good-bye •


Deonbar 27, 1941 10:29 a.a.

1.73

HI!Jr: HellO.

Operator: Mr. Swope.

!IMJr:

Gerard Swope:

HKJr :

8:

Good morning.

Th1a 1a Henr7 Morgenthau, Jr.

Good morning, how are 7out

I!Y.Jr : rlne. How are Jout

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HII.Jr :

Ver7 well, and I hope JOU had a lo•elJ Chriataae.

I did , and I hope JOU did.

We did.

Hr. Swope, I'm oalling you up tor thle reason. I wonder it you would oare to come down to Washington to talk with me about the poeeibilitJ ot coaing down here to help met

Well , that eounde Yery alluring.

Well, I want to tell JOU vhat I ha•e in mind. We haYe three departaente in the Treaeurr where I need help. One ie the Procure~~ent aeotion, where we're bUJing both tor the Go•ernmant and Lend-Leaae and we're bUJing at about a rate ot about a billion dollars a 7ear. Hello.

Xee.

And non-ailitary goode. For lnatanoe, we bu7 all the ateel tor the All1ea, all the copper, all the metala. We don't bUJ the oil- the NaYJ doea t hatbut all the non-a111tary goode under Lend-Leaee we bUJ.

x ... 'l'ber' re tJ'11ng to get me to bu1 aore eYei'J daJ, and


S:

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I ' m reluctant to take it on tor t ear that we won ' t be able t o keep up our good recor d.

(Laughe)

1.74

Then the eeoond thi ng ia the Bureau ot Engraving, which I auppoae 11 the biggeat printing plant in the world . We employ aixty-tive hundred men there, and we're having our troublea t o pr i nt these bonds teet enough. You aee, it'e a big production Job.

· And then we've got another manutaotur ing Job in the Bureau ot the Hint , where '" make t he hard money.

Yea.

Well, all or t hese thlnga are running fairly well; but what I hoped to get wae aomebody like yourself, with manufacturing experience, who could look the thing over and t •ll me where we're weak, where we have to strengthen ourselves. It'e ae big a bua1neae ae any bueineea in the country •....

Yea.

•••• , the three combined • ..•.

Yea •

•.... and that ' • what I had in alnd, a nd I wanted to talk to you about i t.

Well , I ' 11 be gl ad, a nyhow, t o come and talk to you about it; and maybe auggeet a better man.

No. Now, I talked t o the Prea1dent a nd be ea1d he 'd love t o have you come &own. Ie that ao. Well, euppoe1ng I come down anyhow and talk to you and aee what the thing ie.

Well, why don't- would you like to have l unch wi t h me on Monday?

I'll have luncheon with you on Monday, yee.

I n the Tr eaeury.


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tn-~Jr:

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I n the Tr easury.

Yes .

Wb8 t tlme?

One o ' clock.

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One o 'clock. I' ll be ther~.

175

\tell, ttu>t'll be nne; and you bo thlnlting about it, will you?

I'll be thinking about it t oo, yea.

And- because I take it you're ao s i tuated that you could come down.

"iell, except that , of cnurse, I'm Chairman of the Ne~ York Ci t y Housing Au t hority.

Yeah, but you've got no coney up there.

(Laughs) But we're sti ll bui lding. It's sti ll an 8~ministrst1ve Job. Yes, you're quite right about that. Anyho>.<, I'm coming down o.nd talk to you and look over i t wi th you.

·•111 you do that?

I'll be there at luncheon on Monday.

Tha~.k you so much.

And thank you for th1r.klng of me , and a happy New Y~ar to you and great eucceoa.

I> ell, I need help to make the euccees.

Well , 1f I could help, I'll love to do it.

But thi s particular - particularly the buyi ng of this non-milita r y for the Allies is where we need the 'llO&t help.

I'll come anyhow and tolk to you and Just look over H.


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!OIJr: 'l'ballk JOU.

8: Ooo4-b7•·

I!MJr: Ooo4-bye.


(

Conference in Secretary »or~otbau•s Office Deceaber ;n, 1941

11:15 . . ...

Present: Secretary »orgentbau ],fessrs. Rubin and SWetz, Dod30 Local-United Auto norkera Ur. White

•

lJr . 571etz and Ur. Rubin callod on Secretary l.lorgenthau at 11:15 !>aturday morni.n&. They explained to the Secretary that they rep:osented the united Auto rlorkors local in thu Dodge Plant, llhere 25,000 .... ~were no~ employed, They stated that 17,000 or these 'lfCrkors had been laid ott lut Ttwrsday, and tllere were no prospects 01 tr.eir bei"6 roel!lployed, so far as t hey knew. 'l'hey aoded that tho-f -•~ unable tc get ;,:ey definite in!or=tic:t !reo t!~& 1IID.I\&jl0mont as to '>'~len they might be ree·•ployod, but bad been told vague}¥ that there "'" so::>othi~ favorable in prospect, Thsy said that they expected t hat the remaining 8,000 men would be laid orr on February 1. They also stated that thsre v10re on}¥ 25 persons in the vrhole pl.n..'Lt r:ho .oro working on defense project&. This group had been working for

Jt.'Ul)' 1t0nths on designi"'l 11 CUD• More recent}¥ , they oaid, there were a s:oall number of tool and clio workers working on SOtll! project wJU.cb .i~ht ponibl)' be a det•nse project, but they bad no specific infor:aUon obout it inaa:lf<1Ch ao tho ple.nt's aanage!:lent r.ao reluctant t .o ;:tve

\:a a:v information about such mat to:.-e .

'li"'7 f'urthar stated that they thought that th11r pl.ont could ho ><tapted to ""ld.n;; coonorcl.al trucks n tb vel')· 11 ttle clu~ in cachinery, and J.areer truclal nth possibly 6 ""elcs or 2 180nths for rotocling and readjustments, if on!¥ one shift of l<ey men ,,ere employed. If three shifts were employod, they thouclht the j ob or rotuoHn~ could be compl etod within a month. They stated ~hat ~heir !.Ocal, not havin;; 111\Y prospect or work, had in desperation sont thom•olvea as representatives tc o(ashington to see 1f they could get "'ll' help. They had made inquiry at the OJ'>! and had learned troc OM or :.:r. i r"""'" assistants ~-tho Chrysler corporation had $108 lllillion o! orders for tanks which were bein<: produced in tho tanl< factory llhich lla4 boon espec1al4' constn>cted for thiS purpose. In addition, t~.e co::paro• bad $8 mUllon of contracts ror other defense articles, but it had no lliOre . OP'..: was unable to give the• any definite in!omotion a.s ~ prospective or possible defense orders for Dod~• ·


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The Secretarr told tbea tbat be would Me what be could do to help them, &1111 telephone4 Vr. Stettin!.ua and e1q>la1lled to h1a ftl7 brie!l,y tM eituation at tba Dodge Plant, &1111 ulct4 h1a 'llbetber be 41d not haYe eOJN truelao that he wanted. Vr. Stettin!.ua replied t bat he 41d. Tlw Seoreter:Y ulao4 'llbather he cO\Ild oo.o owr &1111 41ecua• the Jll&tter With bill and With the • n !rca tbe Un1on. Vr. Stettiniua uid be could. Secreta.,. IIOrgentbau pointed cut the DM4 !or urgent action, and ulao4 Vr. Stettin!.ua il it would be poaaibla to han a ••ti,. u.e41ate]T. Vr. Stettiniua qree4 to c.- to the Tre&eurT tor a oonterenco at l2tl5 p. a.


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H!<Jr: HtllO.

Cotrator: Nr. Stett1nius .

Hello .

Dec4~b4r 21. 19~1 11: ::9 a.m.

179

Edward Sttttlnl 'lB : Hello , Henry.

~Jr :

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H!)v ll r t- y ou?

Good, s tr; how are you?

All right . Ed, are y?u eo you can talk a oinute or two?

Y~s, !1r, I a:n.

Ed , representatives of the un i on in the Dodge main al en t ~t Detroit are her e in the room with me now.

Repreeentat1vee of the unlon or the Dodge plant.

Yeah.

Right .

Their complete oanutaeturlng unit - t hey ' v• got t~enty-tive thoueand men, ?r ~ld have, at work -they laid ot t seventetn thouean~ last ~eek .

R1t:ht.

Thtre are only twenty-five cen on detenee work .

Twenty-five ~en on defense wor k .

Out of twenty-five th?ueand .

Out of twenty-five thoueand.

Now they could be converted very rapidlY into a t~uci< pl l!nt - it ' F o comol~t~ ?lent rroo founor y right U? etralght thr ough.

I krow the plant ver• well. I 've been there.


l!l!Jr:

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Now, you need lote ot truoke tor Ruaaia and other plaoee •..••

We do.

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••••• and I wondered it you'd let me be helotul in th1• inetanoe and eee it wa oan't get tor tbia plant enough work to keep thaee men buey, indetini tely. Right. I think it' a a ewell idea, and we'd be delighted to go along with you on 1t.

HI!Jr : Vell, now, they're bare now. Vhet oan we do atlll today about it'

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Vell, ot course, the tlret thing we'•• got to do 11 to take theee requialtiona away trca the Ver Department and gi•e them to Traaeury Procure-ment ••.••

I aae.

••..• and turn the setter o•er to you.

Yea. Tbe t 11, Lend-Leaae to aak you to bUT trucks rather than the liar Department to bUT trucka. That'• the tlret aaJor operation.

Vall, hov ~Y hi•• you got'

Vall, we hi•• - about a a.onth ago, R1Uaan got e ttar Patterson and we sa•e thea a clearance to go ahead with the truok ordera.

Yeah.

Row, I think the aituatlon 11, Henry, we'll hi•• to go back and tind out bOY 1&01 truoka tha Var Department hi•• contracted tor and then take the requ1eit1one back troa thea an~ gi•e thea to you. That'll take a little Wblle to tigure out.

How lone do you think 1t would t&kat


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'.ltll , I might be able t o do it - I could review the thing probably ~nd cell you beck in a little whne.

'i' Jr: \{ell , whllt I was thinking- do you work Saturday ~tternoons or not?

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Sure. Yes , sir.

Yessiree. Sundays , t oo.

Do you t hink you could have the wholt etor y togeth~r, oaybe, by t our o 'clock?

I think we can ge t it bt!ore that. Ho~ l ong are you going to be ther' now?

Well , I ' m going to be here until one, Gr a quarter or one.

'tlell , now, let me get aome preliminAry thine;s and see lf I can 't oall you back pret ty quickly.

AncL .•.•

Just hold ' the wire one eecond. Let me ~sk a auePtion here in the room.

All right.

Henr•··

Yes.

I can call :~ou back within a half an hour and give you some preliminary figures .

Fine. And then I'd like to get toge ther with you on 1 t today .

We 1~111.

I 'd like you to meet there ~en.

Are they goins to be over there until noon?


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They oan be.

Well, now, let me round up theee t1gure• and I'll call you back w1th1n twenty m1nutea; and then we can talk to do the next etep.

And then might you have t1me to al1p overt

Sure.

What?

Sure.

'iho 1a your truck man?

\'/ell , General Spaulding baa been bandl1ng that -the over-all truok thing - t or ue; but what we do wbm we get the requis1t1on trom the tore1gn government, wby that goee to the 'lar Department. The War Depar tment, ot course, aotuall7 makes the purchase, Just l1ke l!ack does , you eee.

I eee.

But we haven't 'ot a truck specialist here 1n Lend-Leaee. We ll get the - chanoee are that Oscar and I'll come over together.

Do JOU want - all right, tbnt would be wonderful.

All right, old boy.

And 7ou'll call ae and let me know before?

I w1ll call you back w1 th1n twent7 minutes.

That would be perteot.

Right, t ellow.


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Hello.

Mr. Stettiniue.

Hello.

Deoeabar 27, 1941 12:08 p.a.

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Stettiniua : Henry.

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I'm five minutea late. through the llb1 te Houae a never.

Oh.

I tried t o reach fOU v1re, but 1t d1dn t

llov, we're in a peel t1on to do bue1nese v1 tb you,

Come on over.

All our - all the ouatomere need trucks.

'Xeab.

Tbe British, i n tbe1r future requirements -future estimates - are talking in terms or a hundred thousand and the Ru1a1ans about f1tty thousand. The concentration 11 between a quarter ton and two and a halt ton.

Xee.

Nov, we've got 1ome money i n a certain category, undlocated, that ve can give you 1uediately.

lfondertul.

Nov, the t1ret thing we ought to do, though, is to bave one ot the Dodge men come and look at the requi r ements and 1ee what truck be ia 1n a polit1on to make; and then we can go to town 1n a burry.

Well, I agree with you; but- this is, 1f you


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don't mind my sayi ng eo, good publ1o relati one to meet with these fellowe.

You'd 11ke us t o oome over.

Well , I ' ll send them over t o you if you'd rather hsv~ 1 t.

Well •....

Are you busy?

!lo , we 're all right here - Phll and Oscar and Joe Rowe and I ar e all 1n my ort1oe, and we csn coae over t here, or we'll walt here until they get here.

·~ ell , I • d 11ke to talk to you. le 1 t asking too much 1r you came over?

We' l l come right over.

'rlh ll t?

We' l l be over there 1n t en m1nut ee.

That'll be wonderful.

Al l right , old boy.


December 27, 1941

::;!Jr .Al:DUU r'IR ~ Stx:RETARI •S FILiiS

Conference in Seeretary IIOrgenth&u•e Office December 27, 1941

12•15 p.m.

Present: Secretary IIOrgentbau llesore. Rubin and Swetz, Doclse Loca1-Uni ted Auto Worker a Uesars. Stettinl.us , YoWl&, Cox, and ROW9-Lend.- Leaae ltrs. Klotz Yessrs . Vl'hite and 1AlJo&nn

Thia conference bad. been arranged an hour previous over the phone

by Secretary Uorgenthau.

Tho Secretary becan tho meating by stating that he wae vary

d.&SirOOS ot accompllahing two chief objectives:

( l) to help to utillze the tacili tie a of the Dodge Plant for production o! truclce naad.ed in the Lend-Lease program.

(2) to get the 17,000 Doclga workers who were laid off last ThllrldJliy re""'ployad. ae quic~ as po•aible on defense work.

i1e aslcBd ltr. Stettiniua how he t.binl<s they aigbt pro<:•ed tho IIO$t. rapic!ly.

Ur. Stettiniua replied that the Lend.-Loaee did neod eo.., nonlllilitary trucks between 1/4 and 2- l/2 ton aizes. He stated that it wae

his opinion that thoe Dodge Plant could be rapidly converted Tlitilin two or t.h.. .... o weoka to producing trucks of the aa>&ller sizes, that i8 1/4 to

J/~ tons. He stated that Land-Lease fund• were availabla and that ha ha1l the discretion in tho choice o! agenciee uaed. to - the purcba$10

and. he would l1Jce to aelact the Tre&IIDY to place the ordore.

l!r. llorgenthau said that be would like to clear tne matter With

OI'Jl. The question was railed by !l.r. Cox ae to whether or not eo"" procedure would not be violated if Dodge wore singled out tor this order.

:.!r. llorgentbau replied that ne felt that the tact that 17, 000 ""n are out. on the etreet wae autticient reaaon to taka any '--<~tate action that 11 poseibla, but that be certainly wanted to call ltr . JOIW1$en and.

obt.ain his aupport and help.

Ur. l.lorgenthau t e lephoned J,!r. IO'nldson, and told him that he wants

to help hie friend. Stettiniua and certainly wants to help those l? , 000


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•n 1tbo an 'ld.thout. work. llo ..s.s.4 that ""t ot 251000 •n 110.-J.l.T engaged in tN Dodge pl&Dt, o~ 2S ,..... work1Dc on de!o- 1nll'kJ aDd it appearo that U..re 1o o ... tbing wronc eo..wb&re. Uter ~ telepboDe corrroroation, Ill' . llorplltbau aa1d that. Mr. IDIWIMn b&4 apoeed that be woul4 not otand in tbo wq of tN tro....,.1 • doiJI& 'llbat. it OOOil.d on w o ltl&t tor. Ill'. Coot Mid that oinoo it 11 Ill". IOII>daonlo job to alloceto all ordero, 101wioon1 • ginnc cloaromc. to thio •t.tor 1ndicatoo that the l.:rfll!l bao not &eked BD>doon to p1.aco aqr ou~tiol. ordero with wtU.cb tbio would intortoro.

Ill'. lolorpnt.haR then tolepboDed Ill". r.u.r ( iA Detroit.) of the Cllryoler CarparatioA. Uter ~ connroation, Mr. llorpZitball N1d tNt 11r. r.llar b&4 aaid tbot Dodp b&o - J.ntrr ordero INt. that. ~r ll!.gbt. bo able to squeeso ~ order in ahMd of J.ntrr ordaro it tbo LonciLaaao .. t.boritioo wro w!lHng to accept at.aadarO lilllt trucke. Socrot.&r7 lolor&antbau bad aokod llr. Dller to ..,.. 1A C.th pl&DII ot t.bo trucke 1 t could produce. Ill'. Dllar bad &p'eld to oo• 1Ato tbe Secretazy 1 •

Ottico on llondq ~at 9t00 a.a. to brine pl&no aDd to dioeu~~ tbe Jlllottor. Ill'· llorplltbau aaloed Ill". Stottiniuo it aqr of tbe Lood-Leaao recipient& needed ...U trucko. 11r. Cox and Ill'. Stottiniuo ropl.iod that. the ellllloet. truck that tbe RuoliiJio want 18 l-l/2 to-larger tban tb& onoe diaouoled witb 11r. Jlilll&r. Jtpwewor, tb& Britiab want .... ouJJ. t ruoko 1 u light u 1/4 ton.

Secrotar:r MOrgent.b&u ouaeatod that Ill". Stotticiuo get 1A touob with the Br1 tiob and Ruaaian parc.baa1nc apnto o ... r tbe wok-end to dotorlllne wbotb&r tbe1r gowo..,_,to could uoe tbo ot.aadarO co-rciol. trucke in tbe lillltor weight&. 11r. Stottiniuo t."'"""t •~h a ..,.,. obould not. be -"'1 unt.U attor tba ••tine w1 th Dllor • Ill". llorpntbau po1Dted out that it would ..,.. t.t. it Ill". Stotticiuo could obtain .,... opiDiooa on t.~ point. prior to tbe -tuc-in order to talk teOro o!!ectiwoq with Dllar. 11r. Stot.t1Diuo agreed to get 1A touch nth t ho Britiab aDd li>l.loianll at. ODCO •

It wu agreed t.bot. Ill". stotticiuo wovl4 attend tbe llondq .orn1Jlc - ti.Jli nth llr. l(oller. Ill". ltln"'MD1 b7 tolopboDe, q:reod to oeod llr. St.ovonaon, bead of tbo Ofll ~ ... Dino1on, to tbe -ting.

T~ ••tine wao toro1Dated at. ltOO P•••


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Oper a t or.

December 27, 19~1 12:35 p. m.

Oe t me Hr. Knudsen , will you?

Ri ght .

Hello.

Yea.

8111.

Yee.

Thia · is Henr y talking.

Yee , sir.

How ar e you?

Fine , s ir. How a r e you?

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1V.Jr: Bill, Ed Stettinius 18 on the phone here wi th me , and we have a coupl e or Uni on r epresentatives from the Dodge main plent 1n Detroit here.

]( : Yes.

~Jr: Now, Stett1n1ue wants t o sek Treasury Procuremen t whether we'll buy some trucks t or Lend-Lease. Hello . And - small commercial t rucks, he'll t ell you - and bef or e I t ake t his on, I'd like to reel that I've go t your booking and can get your help.

r: \\'ha t s1 ~e true!< 18 1 t ?

£. R. St ett1n1u8: It' s concentra ted between - chi eflY - between

a quarter t on up t o two nnd a halt. The Treasury Pr ocurement have been buying commerc1el stutt t or ue the t wasn 't m111ts r y apeo1t1oat1on 1n the pe at.

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Well, that hasn't been ~et~rmined. It will bethe British nee~ many thousands in their new program, and a l so Ruesie; and we have available gome f unds to imme~iately allocate tor thi e purpose.

Isn't the Quart~rmaeter Deportm~nt supposed to place all of them?

:lo, no. That's within our di screti on as to what agency we a~k to make theee ourchaees.

Uh huh.

In other words, I have that decieion whether I ask Quartermaster or Trea•ury Procurement t? -ourcblo ee the t r uck after I eoprove the rea•;lei tion and aopropr1ate the funds. ·

I see.

And I'm perfectly willing to - would be haopy to allocate a given amount or money for a ~1ven number of trucks of two or thr~e months production to th1e Dodge plant, tor smell half ton or ton truck e .

All right.

And it's- as I say- it isn't mil1tRry eoecitication, it's a commercial it~m; end lt lsn't anything that the Querter:a6ter should get h1! nose out of joint on.

I see. Uh huh.

Well, Bill. Hello.

Yes.

The thing - one ~f the principal things that int~reate me ia they'v~ eo t seventeen thousand men on the street without a Job tor over a week.

Uh huh.

I menn, they've been there: and they think, sa


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tar a2 they know, the r est or t he•• ere going t o be lai d ott.

Uh huh. They wouldn 't have t he material tor t heee trucka any way , vould they?

'>'hat?

You wouldn't have the materiel tor theee trucke anyway , would you?

Why not?

W~ll, they wouldn't have them in stock, I don't suopoee.

Well , they would t or ouarter ton and helt ton.

Uh huh.

You see, a lot o! the aoaembllta could go right into that , you eee. They ne ve to ohPnse the inatrument boer d end the steering wheel and the tenders , but a lot or the basic etutf could be ae~embled tha t they ' ve go t 1n otock tor paeeengtr care.

Uh huh.

Ia that righ t?

\fell , I don't knew. Thl>t t! ependa upon ..-h& t kind or a truck it 18.

Yeah.

It it's a standard hal t ton w1th tour-wheel dr1 ve, why t hen they t~ouldn ' t hsve .

No , they wouldn' t, . no .

So 1t 1t'a a halt ton, tvo-vh eel drive , straight emall truck •..•.

Yeah • .. ... I haven't any ob j ection t o you placing that.


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Yeah.

I! there'• any !our-vhael drive aturr in i t, it ought to go through the Quarterma8ter Department, because they control the axlea and the steering gear.

Well , that ' e underetood; anything or a military epeci!icat1on we'd buy through the War Department.

Uh huh. Well, if you vent to buy etock trucka, 10u ean buy them trom an1bod7 10u like ae tar ae I'm concerned.

Oka7, old boy; that' • t he a naver.

Yeah.

Bill.

Yeah.

Are you going to be here tomorrow?

Yeah.

In town?

Yeah.

Yell, 1n oaee I can get hold or Keller or Eo~ebody to come down here and aattle thle tomorrow, could you g1ve me a balt an hour?

Certainly.

llhat?

Certainly.

Because what I'd try to do il eettle thia tomorrow.

Certainly.

And it • • .•.

I 'll be right here in the ottioe.

You'll be there tomorrow?

Yeah.


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I'll try to get hold or him.

All right.

191

But I mean , I Just - 1 wan t to eee 1! I can ' t help by ge t ting this thing settled.

Are you thi nking or- are you sure you ' re remembering that there are other peoole tha t ~re just ae bad of! without any truck orders.

S~re, but mY frie nd Stettiniue wants to do something tor - carry out hie end or the Job !or Lend-l.es~e.

'ies.

And I want to help him, and I want to helo t hese men that haven't go t any work.

Uh huh. It's all right ~<1th me . 'iou call me e~y t1~e you went to.

There ' a t~enty-flve thouesnd men ~ut ther e, and twent:t-flve or them are working on defense orders.

How many?

Twenty- five.

Uh huh.

Out o~ twenty-rive thoueand.

'ieah.

Something wrong somewhere.

or course, the reason !or t hAt ie that Kell•r hasn't got up hie Bo t or gun quick enough, eee? Arter he gets throu~h , he ' s going to nove - with the orderP he e go t now, he ' s go t work for sixty ?er cent or hie men, end we are Just giving him more work eo that he c~n take care or the rest or them.

But as ra~ as you ' re concer ned, i! we want to give .... .


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I! )'OU want to bu)' etook trucke, Mr. Hcr genthau, )'OU can bU)' them anywhere you want.

Thank you.

And you os ll me t omorrow any time; I'll be right here.

Thank you.

All r ight .

Good- bye .

!Ugh to .


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Y• l ler:

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How do yt>u oo?

Deceober 27, 1941 12: ~~ p. m.

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~enry :.;orgent hat; , Jr.

'lee , sir.

It' f e lor.e t1oe si r. c~ I'v ~ tal~~d to y~u.

Yes , 1 t ls.

I 1o~~ I hRve better l uck thls tlr.a .

(LIIughs) '<ell, "'e •;er• all rl.,h t the le~t t 1~e . It was ru1t~ e conruee~ olt~P tlon t her e .

~!'": ::e.r- l-, , !·1r. K'!l ler, ~4r . Stett1n1vE 1~ '1ere on the L~nn-te~~e , ~;.rl there are two repre ser. te:~v~e tre~ :tl')ur ;;o~b~ "ttrln ::l:Jnt o ~ the union. ::~noJ , t'"!.~j cene to uc. tt> see w~ether we c .>uldn' t hel > ~n eett1r6 ~or~ !or t • 1s ~lant .

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And r:r. Stett1n1UP httl 8£k ei.l ?roc·J.re:e::t 1n the ~reasur] to ?lace &o~e or~ere ~or srrnll t :· .. :.cks, non- t;J111 tar J , wl ttl t -"11: 'll&nt. ·::e talk~<! t? 6111 Knudsen, nn~ ~t es1d lt ' s nll r1,.ht '<1 th h1o.

Ye• . ~ow , ~o you su?ooee y-:~u C'J1 11 • come d?wn h~r! t~morro'.,. P::C el: "'1 tn m' ll'r Gf')rjs ll:t !'cr len~ enoug:!l t~':lorrow t ? cle~r. th1 e uo "" tha: we could t:o~1 ve y.,u th'! or~er Pnd you c ., )ld go h'li~ lth 1 t7


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Why, I'm planning to be there Monday.

You' r e plannin& to be there •....

'.l'ha t?

You're planning to be there Monday?

Yeah. I'm going to be in Washington Honday and I'm going to etay as long as neces~ary.

Well , Monday I'm supposed to rai se money to pay you tellove.

Yeah.

You couldn't give me Sunday?

Sunde.)' 7

'! eah.

I'll eee what I can do.

Because I. ....

But I've got all my head manBger s i n here. We're in a kind ot a lonG conference right now.

Yeah.

But it I can n~ssibly make lt, I 'll wire you.

Wdl. •...

We're working on an order t or 8~ ,000 halt tor. Joba, but ~e've got t o tear hell out of everyt hi ng to ge t them out in time.

Well , where are you go1ng to place those?

What?

What plant would t hat be?

In the Dodge plant.

That would be in the Dodge plant?


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Ob, yea.

Well. . . . .

In other worde, i! we take thia - it they give us this order on theee 84,000 Jobs, it's going t o take the entire engine capacity ot the Dodge plant: ane i t' e going to - I've got to take my assembly linee !rom the Dodge plant and put trucks ln.

Well, ~here coee thie order come !rom?

It's coming !rom Gregory in the ~uartermaeter'e Department •

.. 'ho?

General Gregory.

General Gregory?

Yeah.

Well , now, you don't know whether that's tor Lend-Lease or tor the Army.

No , that' s tor the Army .

That's tor the Army.

Yeah. Now, we have taken orders t or Russian Jobs, vhlch we're making 2, 500 ot them.

Yeah.

As a mat ter ot tact, we're going to have a tlet eoot in our truck production in February because we haven't got ordere now; and it the orders - 1! we get the ordere now, we can't g tt the materials in time to keep trom having a etreight ehut-down there.

Well , when would you know lt you could be here tomorrow or Monday?

I'll let you know by two o 'clock.


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Well •••.. hello.

I 'll call .you back. Now, how meny t r ucks -what I'd better do ie look up what I'm going to talk to you about , aeet

Yellh.

Now, it you tell me how many trucks and what e1~e .

I'll let Stettiniue talk t o you.

Okay.

(Talks aside ) He wants t o ltno~ what ltlnd or

'r. E. R. Stettiniua: K. T.

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Hello, Stet.

This is Ed. How are you, boy?

Fine.

The Ruasiana and the Bri tleh and all the foreign governments will need a vaat quantity or small, non-military trucks during the tirat six monthe ot the new year.

Yeah.

Nov, the heavy ooncentration tro2 a quart~r ton up to a ton and a hAlt and two ton.

Yeah.

Now, ot course, we r eel that the ~uartermReter, that ia, Gr~gory , naturally would procure military apec1f i cat1one aturt.

Yeell.

But anything or non-military epeoirications, that waa a standard commercial item, we woul~ like to place the order through Procurement or the Treasury .••.•


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Yeah.

.... . which the Secretary just described.

Yeah.

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Now, l t would eee~ to me t ha t you could get -lt we could glve you e lorge enough order t o t ake about three months' ~roduotlon tor a quert~r ton, half ton , and a ton, that you c~•ll d convert ovt'r a wful quickl y l n t he co'Jree

ot a tew weeks.

Yeah, the t ' e right.

And you could put - maybe take care or ten or t welve thousand men that a ren ' t going to have anything to ~o in the ~eentime until you get up

in your blg etutr in your Boro"' program.

There are t hings - I tell you whet we oen do . It there er e parte t ha t ve could use out ot whet might be called •passenger oar oroductlon• .•.. .

Well , there are , K. T.

••... we 'll be okay. 'te can 't do anything- e t th1 e time •.<e can't dO anything ln ton end a hal t on t~t then because lt ' e the axle capacitY and

thlnge like that.

I know , bu t rrom a quarter ton unto a t on there ar e many ?Brts - i ncluding the axles - thll t you can convert right over trom passenser to •~all

trucks .

~ell , that's just what I' m putting on here on t~e

three quarter tone.

Yeah.

The military speol t lca t lone don 't work out that way. Now, these are the rear wheel drive only.

Well , now, wha t I would oo on th1~ 1~ th1P. I woul d ask you t o get your boya to drav up e new speoit1cati on ot vhet e1ze truok end kind ot


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truck you could deliver , and wha t quantity at what price, over whAt period of time. And then we in t urn would go back to the va rious foreign missions and eay , •HarP ' s something w~ can give you i n a hurry; wlll you take it?"

'.iell , thAt's Just what I wee thinking abou t when I told the Secretary thet I didn 't know whether I could be t her e too:-orrow or J:onday.

Because you know there I. an awful lot or spinach in some of thesp foreign specificat ions.

You aee, what I'm thi nki ng about is thle. It's idle tor me to eo~e down there and not eay, •!hie is -.h8 t we can do. • tlow, tht trAin leav~s at 5:}5 here, you see ... ..

Yeah.

••. . . and tha t don't give me enough ti~e. I ' m a fraid, t o ge t toge ther what we oan do and present you a picture.

Yeah.

You see , t hat 1 s why I thought I may no t be able to do it un t il Hondsy.

'iPll , now, K. T., I think the sensible way to soproRch the thing would be this, that aesuming that you were going to get an order for twenty thousand t r ucte quick .. . ..

Yeah •

.. ... t o put in that nlant. W~t si~e would t nnt tr•Jck be, and what would t he general e:)eci ficati one be , and how much would it coat , and how long woul~ it take to del iver t hem?

Yeah , I under stand. r-Io•• , here' s what I'm thinking about, see• I ' m her e at n meeting th1e mo rning , ond ~e 've been talk1n~ sn~~thing all mor ni ng .•..•

Yeah .

.... . as to h~~ to g~t out S4,noo Jobe f or the Ar~y -

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three quarter ton, four-wheel drive - a nd get them by July.

Yeah.

And we've been - I've go t the whole gang in here and we 've been over every sctual part and everything on the job, what machinery we need en~ so f orth and so on. Now - and that's Just a starter , they tell me.

Yeah.

Nov, then, the thing that I've got to find ou t 1e what can I build while I 'm getting the t hings llned u;> .....

That 's exac tly lt.

..• .. tor th1e new j ob- what kind or a truck can it be •...•

Tha t's exactly lt .

.... . tha t I have the materiels for, and wh~ t can we give you thnt they could uee .....

Tha t's exactly lt.

•.. • • end whethAr they can use it.

Right.

Nov, I don"t see how I can get t ha t done and catch that train thla afternoon.

Well, Mr. Kel l er, I've been on the ohone.

Yeah.

Ir that's the caee, I'~ rathP r e.ee you sharp nine o ' clock Monday morning .

Okay.

See?

Yee, I'll do that; an~ then t hat ' ll give me


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t oMorrow to whip thle thing together.

But your thought 1e that while you're getting reedy for the Army, you Might take a standard Job and keep the plant buey in the Meanti me.

That's just exactly 1t, but we've got to the place where we've got to count our Material.

Well •.••.

And t he ••••.

• .••. that would be tine. That would please ever ybody - please St ettlniue and please the men- because you 're •....

I don't want to come down there and tali nonsense to you.

'llell , I'll tell you whet I'll do. Does your train g et in eo tha t you oen be he re at nine?

It does, yes , elr; if it i sn't lnte.

Well • ..••.

I'll be on the B & 0 , which gets in therp at g:l5 when it's on tiMe.

Well •..•.

And I'll come right . .•. •

E4 Stettin1ue eaye he cen be here at nine, and 1 111 aek Bill Knudsen to drop l n.

All rignt.

See?

All r i ght.

I' ll ask Bill to drop 1n eo that we won't have t o be tueaing around with pr1or1t1ee.

Okay. Wel l , we'll be right on the Job.


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And then 1 111 look rorward to eee1ng you at nine o'clock 1n the Treaeury, my ott1ce.

Thank you very mu ch, elr.

And thank you.

Good-bye, K. T.

Yeah.

Okay, boy.

That'e the rlght way to get at lt, lan't l t?

Yeah, that'a exactly right, tell ov.

Thank you very much.

R1ght o.

Good-bye.


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w1111em s. Knudeen:

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Hello.

December 27, 1941 12:55 p.a.

Bi1l , Keller is going to be ot 117 orrioe at nine o'clock Monday morning. He aaid he'll have the answer t hen. Could you drop by?

Uo, I can't, Mr. Secretary; I've got a starr ~eeting here every morn1ng at eight-thirty

Who'• your automobile man?

The automobile man ie a fellow by the name ot Stevenson.

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Stevenson. Could he - Ed aaked whether Harrison couldn't come. I don't know who he ie.

Harrison?

Yeah. Bill Harrison.

I don't know whether Harrieon will be back. He's out in Chicago looking at aome plants out there, but •.•. .

Well, send whoever you rely on over here, will you?

Yeah, all right.

Will you - but you'd better let me know.

Well , I ' ll eend Stevenaon.

You'll send Stevenson.

Yeah.

Wha t?

Yeah.

Stevenson.

ThAt's r i ght.


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And you r ely on him.

Yea.

Thank you .

All r i ght.

Thank you .

203


·~ "\ I ... v -.

!·:r. Knu<leen called me up Sn tu r <IA:I nl£h t o 1 1 ttle e!'te r r v•n o ' clock 11nd asked me how dld I (!P t lnt') th1• s•Jtomob1le t r: c .. l:>uy ln(! busl.n~es . So I ee l d t ha t theee t wo labor union , . n c•o• lr. t<> see :ne end ~<a nted oy h•ll' · An~ h~ s t>.l.C., w•ll , >.'h;• d l. cl n ' t they c o:nc to see h i m o r Sl.<lney H1llmrn o r :Iengle o

, r ... ··.. . I sa1d , t~ Th'!'y ' v~ t ried to see eomP"o~y and CIJ'.t)Cn ' t 11eP :;r, '/''>oC..y , so they've co:ar t o reP nc." 'tiel ! , he JuFt cou1dn • t .rd•rP~•~3 l.t . He •e l d t hPt ~nybody cou!d see him. They eould rPP "11a: 1n the he l l . I eei~ , "'.!ell , they hoven ' t bter. ~hle to ~,.,. "rl n?dy . • H~ ~P~ ~~l! te d1~P£rf"Cnt'le over the t>l:cne- , or.O ""~rl ~· h~:>Ps ~t&- t befor e I gav_. Pny or d •rc ror eny tr•Jck~ tnl't .,.~ ''' t our or<Jer 1:lto th~ gene r&l oool . lie eo l.ci thl' t S1dne;r 'ill:·er. hac! nr.slly :>er •usded "nder Secretary Bob ?t>.tVrF:>n ?t ::.~ .:r r Det>Brt:cent : o g1v~ h1:::. en or"~r f or <;~, 000 true/.£ , anc t ~.l' t · !" e exoectec t o ell">CPtf' th~Pe t>monsst all the ootoo::.,bl.le c~,~~~~~~ · e on Jcnu~r:· fifth. !!~ 1 :11oll ~c! t"" t H I {;PV P t h 1& : ; ~:; e D'•lse Cor.>:)llny , I' d;,., Fhow1n& ro"o r lt1ec.

Hp en ·-~ , "~lo\.: , dvn • t :hro~;· nny monk~y \o,trenchPF t ~ to 1-:. . " r AI' 1 ~ , " Ho•,, can I tnr ow any non key \,'J'"Nichee 1nto t h1 s thing ~~Pn th~re arP eeventeen t houAand m~n 1n thie one 1l~nt nl one ..,~).1\ lr.;; the rtr eetP wl t hout or.y "~rl:'l I cPn ' t unce r •tpnd " !':Y Y'"'U ha vl!n • t l'Jt thee- k no.,.,· l ! thero orr t>O l r.fi to be eny o r~ero . " $:)he eolc , oo·,;ell , t hP t ' s U;l to Kpll • r , the Pr~•1oent of :~.r:' '' • "" ·" So I e:.1d , ••::e l l , wh~ t pbout tr.eee hur.dredf: o f 1u l~clty :r.en t~t yct:.'ve got ov~r st the CP!~?" ·.-:el: , he Etl1d · ~• ~ I ::~lch t ~hr'>'·" a !:lonk•y wrP ncn ln. I t;o t r:;1 te <i1•e.;r eenble -~·,~l r , "'nd I d1Cn 't see ~tn:1 r ef'!f'lon '"rh:.r I eh-:ul d toke !.t fro~

,,1 " ·

So "le !e1e, .. ·.:ell , I cPl:ed uo !tct:~~lue , s~~ c:~~tt!.r. 1uf ft !. .. h~ c !. c. n ' t k ... :;,w enyt'r.!n£ abc·~ ~ 1 t , " tt ro t""l'- t - hac. ~ utt s •:1t !' ... r hl:. Tho t e~?"'"F whBt ~1nt' c~ ft f@llow Stttttn1u! 1s.

s, I ESld, fl~ell , a~ter ~11 , Knu~e~n , btf~re! dl~ Bny~ t r.l.n, I ce lled you uo o n the oh?n~ nn~ I ccn ' t eeP~V~~t Y~~ v• t;,? t t'l comf)l &l n ebout , .. or llf:O r c!e t o ~h" t errect . .e F.eot - e~eR t~ne , " tJow Con't :>lsce eny o r dfl'ra "''lth~ut g tv1.nf l t t.~ me , Y.n·t~Eer , ror a cl'.11nce to allocnte 1t . It s Ollr j oe t o a.loca t e lt. " Anc he i.eot EAyln!J , "If you l 1vP lt t? O.,Cf: e , 1<1\;' j'l)t1 1 ll be Eh0>:1n[: rt> VOrltl Ptll , H

Sc I thln~ t hP j oke 1• on Knu~sPr , b•cauoe RftPr t>l! , Kl'!" ' ':' t·.>l~ cr.e t ha t thtt'Y \"\'era ~l r;u r! "lS on •!. thor Af' P1 £;:"l. t y or


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r.tne tY thousand truck 9rder from the ~uartermnater General, end I sa t her t ha t t ha t s the whole order there is to be nlsced; end lf thnt 1en ' t f Rvorltism t o Give the whole or~er t c Chrysler , I J·;n ' t know ·,:hPt is. But evidently Knu<lsen doesn't know thle. so I'm goln& to find out an~ be eure to get rny r aete right· end 1f t he Quartermaster ~en•ral is giving the whole order' to r.hrJ1l er, without giv1nc an:- other comnonles e chance, tha,t certai nly is f avoritism.

Kn•ul.sen ' s conversation left a ver y bod taHe ln my mou th. 1 ~old Kn•.<lsen this . I said , •tlolf look, I' m gain;; t c see t hese oeo..,le Honday; and before I decl(e t o do anything, I will cPJ. l :rou uo per enns lly and dlscuee it with you. • Ou telde -:> f that, r cede him no , remises or any kind, al t hough h~ t ried ~~6 bee t t~ pi n 111e down.

I thousht socethl ng like thiS would hPp:,len , Rnd why they ~;ve to '<P tt until January fifth nnd why t hey csn' t just allocate t hese ~u tomob1l~s r 1e;ht e11sy , I don 't know.

Ch , another thing h~ es l d. '!~ eai<l, •Ne had everythinG 9rrsn£ed ~ll right . Then along c~m~ P~crl Hnr bor, a~d they took the r ubher aw11y from uo , ~.nd ••e had to ent down on the ~reduction of eutom.,bllea." But he kflo t rep~e tl~g th1e o.e t hou;;h t.h t s '''-' s a tre gedy; nemel;r , cu tt~ ng down on the number of IIU t()moblles . J\nd he tr1~d t <' nwke P ov to the t before Cecember s event h ever :; thing woe okay , but thnt they Juet hl<dn ' t hs~ tlme t o ~et enouch ~ruck ord~re to t~tke un the gs ? of t he 1ul 1t' .,nol decrease ln the numbe r c.t e•• t o" ; hl'..es tt&::•, r a ctured d"e t o lock :> f tlre11 . The:; ' • hio ator y, onywr:; , ""d 1t Jus t ~-~•·'t cdc up to r our. I Juc t d~n 't think it mPkes s ense , •r..! I ' m ce r tainly &ol ng to pur•Uf' H tint! ce t to t he b~ tto::> o! the thlnt' ; :-nd if Knudsen oloci:A me , I ' 11 fO d1r ectl:· t o t he ~r .. ldent.

I ' m <"?l n., t <) cell un e1 th-.r l's tte r eon o r l:cCl ' Y an<' !'inc ~ut ~b,ut-thle e•; t or.:obHe o rder , bec:>use " r.a t I i oe.t: i ne !uls h" ?~ned 1e t hPT. the •.:ar ;J.,;mrtnent h~e gone .:i r ectly : o Chr·,••ltr

"lt'l?•H lettinG OPM k now.


206

December 27 , 1941

At nve mlnutee of nl ne , I called up J ock ~tcC1oy and ~eked him whether Stett1n1us hRd tolked to him about th1e

8nd he sold he had and that P e tcr I' A he wo e c?ncerned,

t s l ong oe theee were non- military trucks lt WRB ell ~1ght r or t he Treasury to buy them. So I eald, "I ur.derP~and tne '1a:·~a:•maeter General 1s trylng t tl buy el ther olghty or ni nP ty t~~ueand trucks fro~ Chrysler, and I don't want Chrysler to

61v~ ~· the run-a round. I'd llke t o have the low- cown on p . • .~nd he pr o:tl s ed he ' ci l e t me know t oc;orrow mornl:16·


TREASURY CEPARTMENT 207

I NTER-OFl"'C E COMMUNICATION

CONFIDENTIAL

TO

Subject:

Secretar y Morgenthau

Dave H. Morris, Jr.

Capital Funds Committee

o .. u December 27, 1941 (12:45 P.M.)

The historical background which I have been able to develop so far is as follows:

October 1940: Mr. Jerome Frank sent to the War Department a memorandum suggesting the creation of a Capital Funds Committee. This me~orandum • was subsequently sent t o the President by Judge Patterson.

Nov. 30. 1940: The above-mentioned memorandum was r eceived by "the Budget" from the President. (As far as can be determined, no subsequent proposal was ever received by the Budget; and after investigation, the Budget apparently decided \

:-!ar. 18 ,1941:

Aor. 5 , 1941: (Saturday)

Apr . ll , 1941 : (Friday}

no action was necessary.)

Mr . Jerome Frank wrote you concerning the creation of a Capital Funds Committee, and. as a result, there was prepared in t his office, a proposed Executive Order creating such a Committee, together with a letter for your signature t ransmitting the proposed Executive Order to the President.

You apparently (the records unfortunc.t ely are not clear) took up and left with the President, the proposed Executive Order.

You had a telephone conversation with Mr. Frank, in which you told him that you had left with the President the "interdepartmental committee" memorandum (which presumably is the one covering a Capital Funds Committ ee). You added


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that he seemed interested, but it vas not a matter you felt could be pressed.

Dec. 12, 1941. to date, is covered by the suggested transmittal memorandum to the President, attached

Copies to:

Attachments .

hereto. rl Mr. D. V. Bell Mr. foley Mr . Vhite Mr . Haas


( 209

Ic accor4anco vi\b your icotructioao , I oaolooo horovi t h a ~otl4

repl1 \o Mr. lichor' o ... oraadua of Doooabor 17th,

ID cooo14or1at; tho aat;~o\14 roplr, rou.., bo 1DUrootl4 1D tho fol-

Oo Doc•bor 12 , 19'1, a\ Mr. lichor' o roquon ( ho bolat; coof1Do4 a\

hoao wHh a cold) , I oaw Mr. Purcell, who "'""o \14 \ho\ acU To coao14ora

tloo bo siTID ~D \0 \he ootabllohaoa\ of • Copltal lUnA• Coaai\too , aa4

( he left vlth ao a propool4 lb:ecaUTt Or4or oroaUnc ouch a Co•Uteo.

Oo Decoabor 16th , after h&Tins roTiovod \hlo oltuatloo vlthlc tho

'l'rta1Ul'1, aa4 afUr haTlUS dhcuooo4 1\ inforaallr vHh Mr. lccloo, vo

ttn1. eop1e• of \ bit propotecl :lseeut1•• Order, vlth a rectu•• t tor coatll'tl

therooc, \o \ho follovlat;:

!be V1ee Pree14ent, !ho Secrotarr of Acrlcul turo, aa4 'fho .ldainl.o \ra\Or of tho 114oral I.oan .\siDC1•

Oc tho oaao dato w JOoUfiocl Mr. Purcell of U>.lo acUoa.

011 Docoabor 27\b, \ho DopartMat of Acrlcul\uro noUflo4 uo \he\

thor vonl4 like \o baTt a rouo4- t ablo 41ocuaoloa at a \lao .utuallr con-

'fo 'bo alpl4: lloarr Mor~atban, Jr ,


210

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:Do&J' J1r, MoMr I

fiiMk ,... for '70IV _r...__ of lle.-'-r l?UI, chi-c • tilt

l ocruur Nl4 laoll&aco o-l11ioa11 earroa\ \llftcb\1 oa Ulo holraloill\7

o! a c.p1\al -~ eo-1. Uoo ,

Aa r• - · or- ao\ , kaov, U111 •t\lr baa- ... a\ ....,leu

Uaoo clurlJII Ulo pea\ :r-r or 1 0 - \lie laa\ \t. '-1-c la April (liHl)

..Ua llr. llorpat-. follovl JII a \Ilk v l \ll llr. Joro• J'ruk, clllouiM

1\ wi \ll .. • 1a nov of \1111. 1 toot ... f01IZ' ......... , p...,oaal vi \ll

llr. llorpataota. U 10- \Ia\ ,ov -•r&M .. to .. a"OIIM 1a tilt

Mil wi\ll a lo\\or troa \Ia 'frMnrr to llr. PvooU, oqiJII \Ia\ \laf

hacl tut ooa\ to \1.- ..,.lou 1atoro1\ool t.,.r-\1 Nl4 apaolol ooplol

of \Ia .,.... • ...,.u ... on- ,...,... -, u. aa..nuoo ..._ ....., ...

eo-i11loa .

'Chllor \llo1o o...UUoao, 1 n.uo1t \Ia\ \1.- •ttor '- ollo- to

ooa\l..,. l a \Ia - U baa '-oa 1\ar\ool Nl4 , la clu -~•. 1 alaU M

lahro1\ool 1a -Uc _, ooaol'Plou aro re....ut.

llaoor olr ,.,..... •

'fo M oipMI J'rultlla J) , JoooonU


''"I

Ill diD IDIIII

ftult J'O'& fer )'0111' _..__ ot :0.-\er 1?~, ll'l'iae M \M

.. ovU7 ul ...... o-ieoloa'• CIIIU'I'Ia\ \llftcla\e oa ~ 4eei.J'-'1U v

of a Oepl\al l'ullo eo-1 \ \ee,

c;roapo - n.ol> aa ~ hppl)', Prlorl\leo ul J.UooaUou Joari; \bt

!r ... 1U')' hpar-\; \1100 Bod of Oo.,......,... of \1100 J'e4u'al leeer...

171\•; \lwl :Depar-\ of Acrtnl\ve; \1100 J'e4u'al s-a~~ 11114

\bt llv•• of ~ ~' - I __.., ,..a -u- 1a ,.,.. wl~ --.

lla•erell',


OPFl<:a<#

TH& K C...,.AfiYOI' TM& T'ltKAMI'"

~o : !(r . Ol!tton MacA

l~r yow- 1n!or-Jt1on. Ple••• ra~uro.

to Roo:1 ;:a? •

•


III I ' U J4. 1941,

Tb&nlt tw tor 'fOV1r lftt«' of lleceaber Urcl 'llld.eh ret .... • OOPJ of l.'>a o\<1~ r11 'rl to ~ PrM1-doon\ br \M Jo1D\ Dal- hI hrtl• ec-lt\M, I baft 0..0 clad to Neill t.'lil 11\4 to paN u .... to ~ Pro.......aoot DiYiAOG 1A -~ wi\lo ~ rq.;..Uoo. ~ ,.... tor .,.,.r oUor to ~ ..r.uu~ 4IOpiM u .. <Miin to haft ~

llr. ll1lo rutliM, Chair-, -'-1._. s.ou.

of \M Joi.D\ w- ProlboUoo c-l\t.ee,

-..& of 1 11 •o Warfare, , ... ~. 1), c.

213

•.


• I

,

BOARD OF !COIIOMIC 1IARF Alii eGQNOM1G BEFEf'l&£ Bek.'m

WA!IIIlCl'CIN. 0. C.

DEC 23 \94l

Dear l!r. Secr etary•

lillcloaed ia a copy of a state11ent of policy

for the better integration of war production in the

Dnited Statas and canada. 'thio stat.uent ....,. reco.-

Mnded to the President 1'1 the Joint Dtfenao Produc---tion eo-ittee of the United States and canada and

waa approved br b1m in lettera to tho llembera of the

Committee. A copy of thia letter is oncloaod.

I t hink that Treesury Procurement will be in

tarcoted in this statement and I hope that you rill

pose it along to thea and give it your personal

blessing.

P. S.

ltUo Perldn• Chairman, Aaeriean Section of tho Joint Detaru1e Production Coaa1ttee

Nl.meogre.pbod copies of the joint policy atat.ment are available and r:t:1 otriee will be glad to INPply you with ao ll&llY copi es ae rou need for member s of your staff.

'tho Honorable

Tho Secretary of the Treaaury

2!4


ST ATEI.ZI."l' BY TilE !'I!ES liEIIf

Docecber :n, 1941

The Joint llo.r Production Colllllitteoa of Cntllldn end the

United Stntos hovo unonimously adopted o doclorntion of pol.iey

eolli1141 for o combinod nll-out wn.r production effort nnd tho rc

oovol of QJ1Y berriors utandin8 in tho wey of euoh n c ombinod ef

fort . This doolnration hns mot tho :lJ)jll'OVIIl or tho C=dinn

215

::cr Cobinct. It bus gy full npprovlll. To further its implo

:ocntntion, I hnve asked the nffeotcd dopo.rtD:mts end e.goncics in

our Govo"""'nt tn nbid~ by its l~ttcr end spirit, so rer u lies

within t.hoir po110r . I h<:n tllrt.hcr rcqu: atcd ~ir . l.!ilo ?l::rldns,

the Chninnnn of tho f.t~cric:m Cor:r.ittoc , to inwstiso.to , ith tho

oid of tho Tariff Commission ~nd other 1ntcroatcd ~one1cs, tho

oxtc nt to 11hich l ot;isJJ>tivc chnn••• Vlill be nocossnry tn s ivc

full effect to tho declaration.

Thrcugh brute force end cnslnv,mcn~, Hitler boa secured

o 110neurc of intc~rotion end coorc!inotion of t~o productive re

sources or c. urge pert of the continent or l)m)po . t;o OlSt

d< C>Onstr: tc thnt int<.grotion end coorc!inc.tion or tho productive

resource s of tho conti.-.:nt of Jo.rioc is po10ibl• tllrou;:h ~cno

er~tie processes end free coneent .


21.6

s.'UTLIIlf C. \iU PiiCmaCTICII POLIC! roa

CAIWlA Alii) TilE lllfiTID STAriS

Having regard t.o the tact tbat CeMd& an! u.e llllted Statee are oagaged in a war w1U1 ccxaan tllle81ea , Ute Joint 1iar Productian ec-t.t.tea of Canada an! the tbdted States rec-ms t.o U>e.I'Hal4ct ot tM

United states an! the PriM lliniater of Canlod& the !ollowiJ18 at&~ ot policy tor the war prodllction or the two countriea:

1. Victory will ~\lire Ute lll&.ld.mua war production in boUt oountd M in the shortest possible time; speed and voluu or war output, rather tb&n aoneta%')' coat, are Ute priuey objectives,

2. An aU-out war production ettort in both countri .. Hquirea the

ani""" use of the labor, re11 materi.ala and racilltiea in .. cb countr:r.

) . Aohievemen\ of mald Pll' YOluae an! tpeed of war output ~uirea that the production and rescure .. of both countries should be etreetive4' inteur&ted, an! directed towards a co::aon procr- of requir-ta tor the

total war attort.

4. F.a6 country should Produce those articles in an integrated prccx• ot requireeonte 'IIIIich will result in ~ joint output ot war goods in tho minin:111:1 t .inle,

5. Scarco raw materi&la an! goods which one country requires tr ... tho other in orclo:- t.o e&rT1 out the joint progroa of war production should be

ao allocated betlleon tho two countries that aucb uteri&la an! goods will

aalto U>o max1li:ua contribution tolm.~ the output of the -t noceeaar7

articles in the ahortost period or timo,

6, Legislative and adminietraUvo borriora , including taritta, import

autios, cuat.oma and other regulations or restrictions of ~ cbarec~ which prohibit, prevent, dalay Or Otherwise it1podo tho frOO flOW Of IIOC08Nl'7 =unitions and war au;>pllos botvoon tho two countries ahoulJI bo suapcmded ""

otbcrvioo oli.81natoc! for tho ciuration or tho war.

7. Tho two Oovornmonto aboul.C ta:to ell c.oa.suros nocosau'7 tor tho · fulloot implementation or the toroBo~ ;rinciploa.

M!mbcram~ G. ll:, Sheila, Cha1rlllan R. P. Boll B. J . ear.ichaol J. R, Donald II, L, Gordon H. R. J.lacllillan

•abora m 1r1w lUA WJ.o Porldna, Cba1ftUI J.V. Forrcatel \ ' • H. lla.rr1.aoa. R. P. FettoraCil E. R. St.ottil11ua H. L. VickGI'7


.... a. r.. vtot..,. no~ tJ. s. llariu- ec-s " '~,D.C.

lb' <Mar Ill", Vlot.-,.1

'fbll pollq ota-~ of \boo ~

a\ ita -ber lJ w"ns bu llee pn

o.ntecl ~ • aD4 bu ., •J>ill"'ftl• I aa _.

111£ ~ ~ or our -.r1 ... -u ... ~ t10rlr. '111 th ~ TarlJ't Col:laiN1011 aD4 the

..,._.. of tbe Dud.ie~ 011 \1>1 lqiol&Uw ouc

poU0111 ado, n will be &J>prooiatecl 1t

,..,.... .w.tt '111U. Ul1l ~-' ... _..

\bllr ~rt 1n ak1.ac it. atfoot.i w 1D -

Uoe.

217


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1JI& tile ~ ot """' .AMr1- eeoUoo to

..,r ll: with the Tar1ft c-1N1011 ud the

...,._.. or til• a..~pt oo t.1oe aaul.t.Uw nc

p~>U... ...te. I\ will be ~prwiated 1t

.,_ will tiJorou&blT NqWJA\ t.be t • ot

)'WI' .wt witb tb1a ·'--' ... _..

tlleiJ' ~in .-Ida& 1t otteotl w 1e _.

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(r.D.R.)

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~

~#"'FILE COPY


2871 WOODLJJID DRIVE

WASHINGTON, D.C.

22nd Dee. , 1941

Dear Mr . Secretary:

You have probably heard that the P- 40 1 s you were instrumental in getting for u.s scored their first victory with four Japanese bombers shot down near !llllllling. I am sure you must have thrilled with joy, as we are with gratitude to you for this success.

At the same time we cannot but indulge in the vain regret that if the Air Corps had followed your batch with more squadrons till we had built up our modest plan of 350 pursuits and 150 bombers we would today be a thorn in the ene~'s flesh as we would be on the flank to their present advance. Since we have more than a hun.dred airfields and an extensive air- raid warning system1 as against the handful of fields in Malaya and the Ph1lippines our squadrons could not be bombed out even by a very numerous eneJII1.

With kindes t regards,

Yours gratefully,

T. V. Soong , ) . .--.

CYV- y .. . .) L ., .. IJ .~ ~·-- ~ ....

\1


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ewu of tbt Jlajotitp l.talltt ~ ol Jl.qtrefcnt&dNI a. • ·

-..~a.-. a. c.

227 e:ueo. T , It~¥ - ./

December 27, 1941.

l!onornblo Henry ll.or~;anthoau , :·;ns..~incton, D. c .

DOnr l!enry; -

I t ried to r each Senator WalSh , as I advised you in rey tolocr lll'l, bef ore he loft 17nshinct on , but I ..:as u."\Oblo to . I r~caive 1 wordt!ln t ho had l ef t for his Clinton home . I trie•' sev ~nl times over Christmas to contact him there , but was unable to contact him. I am nd visina you so that you <~i ll !:now t he otfnl'ts I hnvo made t o co t i n touch with him. ll:t lool<S to m~~ , so fnl' ns I run concer ned, t 'nt t he s ruro YT1l l hnve t o ,-; t\1 t u.">t 11 I :lf vo an O!)Portun1 ty of scninll him in ·::nshlneton.

'."11th k1ndreco.rds , nnd tho Compli ants of t he SOlloon to ;;ou ard ~:rs . J.:orhnntheau , 1nwhich ~1rs . J:cC nrnnck joi ns r:i th

no , I aD

Very s1nco :ely ;;ours ,


WP137 103QOVT XC • 41 CLINTON MASS DEC 27 1941 120P

HOtJ H£>jRY MORGANTHEAU JR

SECY TREASURY

1 PEGPET TO NOTIFY YOU THAT I RESENT YOUR GETTINGI~rBH:I~I]N"'fM 2 12

PEOP'. E 1"1 BOSTON TO BRING PRESSURE UPON ME TO FAVOR THE

CO~F I RMATION OF DEAN LANDIS. YOU KNEW MY POS ITION ON THIS

~·ATTER AND YOU KNOW THAT MY OPPOS ITION I S A MATTER BASED ON

PPI~jC I PtE AND NO PRESSURE FROM POLITICIANS OR MEN OF MY OWN

POl ! T I CAL PART Y I N MASSACHUSETTS WILL OR CAN CHANGE MV


,11'1 ;7 SHE ET 2

CO'IV ICT IOI'I OF THE lN-ISUITABILITY OF YOUR SELECTION. AS I

SAID TO YOU BEFORE YOU CAN SELECT DEAN LANDIS FOR

NJY POS IT ION THAT DOES NOT REQUIRE MY APPROVAL BUT

I CAN~JOT BE A PARTY TO HIS CONFIRMATION BY THE SENATE

SENATOR DAVID I WALSH.

206PM

-


... . ... :·: .. .. I I 1 •


Tre&eury Dopartmen~ Division ot Yono~ory Research

( Dote _D.e.colbel!...2?.._ __ 19

41 -To: Seoretart Morgenth8u

Fro=: H. D. White

On November 12 we oab1ed Oaead&J tor

4 rull text ot the Oxtord Institute ot

sutUtioe etud)' ot the ll1n1eter ot Labor'• errorte to draw aarr1ed wo11en into war worlt .~a the atteota ot the new inco•e tax on shoes enawering the oa11.

Mr. OaeedaJ baa adTieed ue that the Oxford Institute ot 8tathtioe haB not pu~Uabed or undertaken a111 atudy ot the effects o! the new Brl tiah i noo•• tu on e~arri ed women engaged in war work.

There le appended a eua:marr and etudJ by t he I net1tute.

1


TO

FROM

TREASURY DEPARTMENT

INTER OI"FICE COMMUNICATION

)lr, llhitA

llr. llonich

Caaa.dq awt .. tbat the OXford Iaatit\lte of Stat1at1ca baa made

oo stu~ or the e.rtecta ot the """ i.Dcoae tax on aarried __, -..

gqed 1D war 'IIOrk, We requ .. tecl caa..sq to aeoa the text ot wch a ot.u~, 1D cable llo • .5lJJ ot llov-r 1<11 1941.,

He baa aant to ua the ~pended cow of an article, •Quantitative

and Qualltatin Full iloplo)'lUat•, apj)MJ'ing 1.n tho Qdord Inatitute

ot Statbtics B>lleti.n tor loTaober 11 1941.; alao the attached cJJ.ppiDa

t'toal the llancneater Cbardian of llovaber 8, 1941., perutntng tO the

article. The latter gina the l.Joprenion that the Qdord article

trots t.ba subject of wxat1on 1.n relation to aarriecl _..,, whir ...

i t do .. DOt. C&aaaq tlJou&ht that th1a or a a1111lar new_.. iwa

aight ban created the •- iapreaaion hera, therefore he aent tba

Qdord article aa the one pro~ r eferred to 1D our cable of llov-

ber 12.

Tho toll.owin& 1.ntereaUJig pointe are aaae 1D the article, 11Quao

Utat1n and QualltatiTe Full .illlplo111Mt• • .

1, Tbe author aakoa the \l.letu.l c11n1.nct1on between quanti\ative

ano qu.alltatiTe 1l&l.l e8Plo111Ct.

a, Quantitative 1l&l.l •plo111ent1 the traditional peac ...

time concept, uana tho &baence of involuntary e.plo1118Dt,

i,a,, DO a)re peraona 1l1l.l1ng to work at the proT.uin& wage

lll'ela, b . Qual1tatil'8 1l&l.l e.pl<>1118Dt, the icleol - ......

cono.1tiona 1 raters to a 100% uae of the aal• ano !aula popuU.

tion 1.n the jobs conai<lered _,n a .. ential to the war effort.

~ , Full quanti wti n -.plo111eat bad been reached 1.n Ck-eat. Br1 ta1D

1D Auguat, 1941., wban there wre 2201 000 wboll;r un-.ployed iDIRlred

persona, a)lt o! .00. were unau1Uble for inallatrial work,

) , Progreaa 111 the <l1raction ot qual1tatin 1l&l.l -.plo1118Dt, ,.....

8\llti.ng 111 fl>rtbar 1nc:reaaea 1.n war output, can he acbill'ed•

a. Fr<la tho aieting geini'ullJ' occupied labor force, b:y

•bitt1n& b'Oa .....,_..aential to '"antial 1ndll8Wiee.


(

- 2-

b. IV drawi:D& on 1>radea with low pi'Odl&oUnt.r (cb1e!l.T w d1atoribi&Un 1>radea).

c. IV ~ 1A - 'IIOriW'e bw the bouald. (~ wl. .... - ~ -•aote).

4• .tJ1 aD illd1e&UOD of ~be pc>ac!Ml!U• 1UIIi*l" ) b aD4 o, 1obe 111tbor •t.iaat.a the~, 1A lSIIl, -.o are 13 mu•on p4ll'eODe ap4 16 w ~. or 45% of the pc>pul&Uon 1A the 16-61 oc• P""'P• either WIOccupied or occupied 1A _.,, aDd t1Aazlce (110•1>1¥ 1A ~ cll.nr1-wUn w-) aDd 1A bou .. bold. aDd pereollal. aernce (1Dclud1.Dc boWle, catering aDd lawldr1•)•

5, Tbe toll.owin& apeoUic MU\11'118 are auu•\.ed w appro..,h 1obe

aoal of tllll qu&l.11oeUn ~·

e. S.Orpaiu.UOD of ~be N1oe1l w..S.. (1) Cell liP of - aDd waD&fer of - bw w

N1oe1l u..s., aD4 w OODHqUmual cloe1nc - of 1obe -..a~<•t• M1oeilert - 1obe aeUiod. DOW aw-tl;r be1nc tollOIOO<I b7 w ao .......... t .

(l!) Rep~ 1'Ull-tia• aploT ... b7 the part-t.iaa work of boueori .....

(3) Spr...U.OC 1obe work 1110re n~ - rec!ucinc 1obe peek load - b7 f1.ld.n& abopping dqa aDd bour• tor Tarioua groupe of aboppen,

b. a.orcADiu.tioo of the -Uc bouaald.. (1) Scat epeoitU u.t.ion o.t bouaald. .l:lmcUo,. w

b'et boua.-1 .... ror ~ o.plo,.c1>, nell .. (e ) : ,,., feeclinc end work& can-, (b) aoboOl aeala, (c) dq 1111r0ari•, (c1) c m•' lalmdr1•·

'


INSTTTOT! OY STATISTICS

OD'ORD

Bu.lletin Vol. It Nov .. ber l , 1941 No. 15

~UANTITATIVE AND <VJALITATIVB l"ULL WPI.Onml'r

The concept or rull employment commonly used in economic theory r efers only to gainfully occupied persona. Peace-time full employment means tba absence ot involuntary unemployment in tbe eanee that there are n?

1,ora workers willing to accept a given real

wage, or to put it in another way, given the laval ot reol wages no employer can increase b1s starr without reducing the atarr or another ~ployer . (2)

Tbe introduction ot conscription or labour during tbe war, bowever, puta tbe problem in an altogether different perspective. We are now concorned not only with tbe &bitting rrom one Job to another Of tbat proportion Of th8 popu.latiOD which ia willing to work tor a given wage, in order to obtain maximum output or war material, but with tbe wider task or &bitting about tbe entire able-bodied population so that no individual !a engaged on a teak, wbetber paid aa in induatry or ~paid as in housework, rrom wbicb be or abe can be opared tor more essential work . Not only tbe volume but also the direction or tbs avai lable labour toroe comas i nto tba tore ground,

Tbua in a war economr the ooncept or full employment must be sxtended to oovar tho occupational and industria.l changes or tbe hitherto gainfully

Ill

12)

occupied

Keynes, J.V, , "Gene~al Tbeory or Employment , Interest and Voney~ P• 12. Robinson, J., "Easayo in tbe Theory ot Employmsnt• p . 15 .


- 2 -

oooupied ud tho .. •unooouphd• who O&A be drafted i.oto trade 811d 1.Dduetr1, i.e. i Ato pilltlll oooupatioA. We UJ deAOte the traditionel coAcept iaplJi.aa aeralJ t he abaenoe or iA"oluntar, UA.,.ploJmeAt bJ 'q\14Jlt1tat1n r llll UlplOJIIent' 811d the wider aonoept ae 'qualitati"e full a.ploJIIent• beari.aa 1A IliAd that in practi ce the two ooncepte ehade into one aAotber. (l)

We may eay that gualit!ti"' tull emploJIIaAt ia t he lillit to which the ooutant prooeaa or ehirti~~& ot the oooupatione or the population ehould tend , thie lillit beina a 100 per oant uee or the male and rema1e population in diraotiona wbioh are considered aa 110re essential than othera, acooUAt being taken or particular abi11tiea BAd 1nab111t1ea or aex and age.

l.D Auguat 194.1 there ware 220, 000 wholly UAemp1oyed i.Dsured persona, aoet or whoa were UAauit ab1e tor 1nduetr1a1 won:. J'ul1 quaAtitathe emplo111ent bad been raanbad, though i t ia generallJ adllitted that further increaaea in war output C811 be aohie .. ed from tbe exiati.ng gaintlll11 occupied labour rorce i n emplo111ent by shirting rrom •non-eaeenti to •eaeential' induatriea. During the next etage or t he war it will be neceaaary to draw particularly on those trades whose progreea in integration, mechanization and acientitic management hae encroached leaet on the heritage or the nineteenth century, 811d to briAg 1.o new workere r rom domeatio households.

In 194.1 the distributive trades , whoae produc-ti .. tty is .. ery low, and doaeatic houeeholda l2) (') acooUAted tor about ll mill ion adulta (aged 16-64),' or a quarter or the total population or Great ~itain.

1870 1880 1890 1900 1910 1920 19)0

TABLI! 1. Gailltlll woi'liera in

P~ula- Produc- Dletrl-t on. tlon but l on

100 100 100 1)0 1)2 157 16) 166 257 197 196 )78 2)9 24) 51) 274 268 657 )18 271 877

Voluae or goode produced and dletrl~uted per worker Iii

PrOduction Dietribut1on.

100 100 l)) 112 145 94 175 91 209 99 278 ll) ))5 104

(~entieth Century Fund: •Doe a Distribution coat Too Wuch?' 19)9, p.)79 . )

(1) Oira&Ay 1D 1938 waa, tor i netance, an lnteraedlate oaaa, a.nd 'in .. olUAtary ' onrtia e raieee other queetiona or det1n1 tion, (2) The tollowill& table ia baaed on u .s.ceneua data and the index or pbJe1cal production prepared by the research depart .. nt ot the Federal ReaerTe Bank ot New York . OJ Accordi.aa to tbe Cenaua or Population, 19)1,2. 6 IUJU.~UJ peraone were occupied 1.o the d1etri but1"' trade , 1 . 5

111111011


• " ' "" !::;: ..... t .h ....

- ) -

TABL!! n !!.!!£ Total Pol!u.la- Persona occ~ied ~ Index tlon in PrlTate omea-

Numbere Index ~lc Serdce r"l!!-wabora Index on '000 '000 -

a)C)raat llritain:

1911 40, 8)1 100 1 , 6)0 100 4 .1 100 1':121 42 , 769 105 1 , )66 81 ).2 78 19)1 44, 796 110 1,626 96 ) . 6 88

b)Germany: 1907 54, 991 100 1,465 100 2. 7 100 1925 62, 410 ll) 1,)94 95 2.2 81 19)) 65 , 218 119 1,269 87 1 . 9 70

It took about t wo yeare during tho !Kat war to break down finally the ouatOCIIIry barriers to the a=ployment or women 1n induatriea which had hitherto been considered as suitable only tor men. Similarly, peace-time conceptions or tu.ll numerical employment and industrial distl"ibution (looking at labour rrom the demand side) can be traced in the Government policy during the tirat two years or the present war. The eize ot the labour market wee defined by the size or the popu.lation hitherto occupied (employed end unemployed) which reflected after all only the existing peace-time \ capital equipment or the country, and the distribution ot the peace-time national output . It the questi on or the unoccupied popu.lation wa a touched upon it was only in order to eetimate how many women hitherto unoccupied have to replace the called-up men, and not how best to utilize the whole populati on in the war ertort.

The rollowing tabla ia arri•ed at by applying to the 19)9 Unemployment Insurance data the proportion between the tiguree ot occupied aa given by the Ceoaua ot Popu.lation and the Health and Unemployment Insurance atatiatica or 19)1.

TABLE III

million 1n priTate domestic service, and there were 8.6 million unoccupied married and widowed women. It haa been assumed aboYa that the numbers occupied in the domestic houaeholda, conaiat or 1 . 5 million paid e:aployeea and 7.1 million unpaid married end widowed women .


- 4-

TABU III

latt.atad Occupied and Uoocoupie4 Popul!ti on (Great Britain, iUlt 1932)

ooo •• Kala a ~ Au •P•

22,289 Total population 24,lll 15,207 17.711 Agee 14 rears & OYer 19, 651

Unoooupied aged 380 1,701 14 and our 12,745

Occupied aged 14 14,827 16, 010 reara and OYer 6,906

2,275 2, 525 Commerce & Pinanca 1,188 766 8)8 Paraonal Serrlae 2, 0S2

236

16,617

10, )67

6, 250 l ,OSl 1, 861

It tollowa that ia July 19)9, 17 million persona, aged 16-64, i .e. 52 per cant ot the population (aged 16-64) were either unoccupied or occupied in commerce and tinaooe (IIOatly in t .he d.iatributin traCiea) and i n personal aarrloa (inoludi.ng hotels, catering, laundr7). No data are aYailabla ainca 1939, but it would cot ba unreasonable to eatiaate that the aboYa proportion in the summer ot 1941 ia not leaa than 45 per cent (aaauming a decreaas or about 3-4 millions in the number or paraooa unoccupied or occupied in commerce and pereooal aervice) or about 13 million persona.

Kias Iris Dou8laa<1,howe on the baai s or the 1931 Censua or Population that the ratio ot persona ooaupied in the retail trade (i.e. retail owners , managers and employees, oleriael start axaluded) to the total population in England and Walea ia 40 per 1,000 Tarring trom one county t o another , the lowest ratio being 29 par 1,000 in Oarmarthen, the highest being SO per 1, 000 in suassx, and the rati o tor London baing 45 per 1, 000. (2) A .. ua1ng that ooa-tourtb ot the total population tol'IU the regular ahopping (3) population, we tind that one pereon

in

(1) "tournai or the Royal statlstloil soolaty,19)$W Part (2) The ratio in the u.s .A. in 1933 waa 40 per 1 ,000, i.e. the aaae ea in Koalaod and Walea; in Canada 38 per 1,000, 27 per cent ot the nualtera ot tull-tiae eaployeea in the u.s.A. and 15 per cent in Canada are part- tiae workara. (u.s. Dept . ot Commerce: Oenaua ot American bua1oeas,l933, Retail Trade. 17th canaua ot Canada 19)1, Retail aerchan-dise trade . ) ~bop ()) That part ot the population is ••ant which! nenl7 aYarr week throughout the rear, moetl.r in conoeot i oo with bouael<eaping. Th1• proportion ia abort or all thou peraona who abop ragularlr eYarr week but do cot apend a long time in the ahop (at atationera ,tobaoocniata ,etc.) or abop irregularly, but spend aora time in the ahop (textile , olothing,et o. ) .


237

- s -

ill ~he re~ail ~rada, oa ~he •••race, aarYed aU: ouatcaara wae1tl7 • Iaoll oua~caer ool&l.4 therefore olaia, OA the •••rae•, about 11 ll<M&n weeltl7 ot ~h• paraoll ooo~q~ia4 ill ~he ra~ai.l tr•••· Tbua ooll41Uou bao ... aooan~ua~ad ill the 7aara 19)1-19)9. fila tollowias ~able 1Adioataa the crowth ot the diatr1buti'fe tradaa ill 19)1- 19)9 (Great Britai.ll).

Piatr1but1n Tracl.aa (as•• 16-64) ·~~9~1 ll&l.l 1939

1!!! a oreaae

UllgplOJIIIaDt Inauruoa Peta • • • • 1,8)7 2,046 ll" Total populatioll (all agee) ••••••• 44,8)1 46,400 )l'

On the baaie ot the 19)1 proportiolla .. 10&1 utiaata that iA 19)9 ti•• illatead of aix ouatoaera were aerYed waekl7 b7 one peraon ill the retail trade: or that the •••raga olaia ot one ahoppar Oil the ~t.e ot the retailer inoreaeed troa 8 hours wee1t17 to 9i houra .. eltl7. Tbia tenda to ollow that there 1e rooa tor aocae oontraotion in aerYioea ud, •• waa ahown ill a reoent BOLtftD (1), part1ol&l.arl7 ill tile non-f ood retail trade . The nooaaaar7 re-org&Aiaatioll ot the retail trade will llardl7 take plaoa without Go•ernaet interYantion. The oall

1 up ot JUA IU1d the trallatar ot wOClall from tba retail trade

1 without planned oonoantration ud the oonaequential oloaing dOWD. ot the •wealcut' reta1lera ••- to be the uthod followed b7 the Gonr.waant. Tile pat'ing of retailer• auaseated ill the artiola quoted abo•• wol&l.d uea to llaYe ao1ae adYutagaa. lioreoYer, tl&l.l-tiaa emplo7aea (part1ol&l.&rl7 ill the tood trade) ool&l.d ba partl7 replaced b7 part-tl.Jaa work of houaawi'fu, ud queua1Ac ool&l.d be reduoad b7 t1xiJIC ahoppill8 deJa and houra (illoludiAg a'faDiAca) tor atraeta or houaahold groupe ill order to taoilitata the ahopp1Ac of -•n worlcillg full t1ae ill illduatrJ.

Suob 'dilution• 1A retail trade ia oloael7 ooADaoted with aome raorgaAisaUon ot the do-atio houaehold. The &Y&raga houaewi.ta pertoraa the tunotion ot houaekaapar, oook, ollerwoaao aDd nuraa, &Ad her (household) aquipaant ud trainillg are tor tbia -11 aoalo etarpr1u.

It aa7 ba that apeoialiaatioA of houaewiYea io gro~q~a wol&l.d tree aomo t or iDduatrial aaplo,.ent, partioularlJ if the •aquipaeot' oould ba adJuated to auoh a aohaae. But quite apart from the pa7oholog1oal obataolaa to auoh a reorgan.iaation, oa.auoal taad1AB aDd worka outeena, aohool aeala and d&J nuraeriaa, aDd oo.aunal laundriea aigbt pro•• aaaiar to executa and ba'fa a greater diaplaoaaant ettaot.

(1) •RatioAal RetaillA& ill War T1aa•, b7 O.D.B. Worawiok, BUlletin, Vol. ), Bo. 1).


238

- 6-

It aeema &Tident, howeTer, that to draw upon the reeerToir or labour in the 41atributiTe trades and the domeetio sphere , some planned reorganization or both spheres is desirable in order to obtain the optimum ertort with a minimum ot hardship.

H • J!RANKIL.


/ 4

' ., DISTRICT BANK LIMITED HfAD oma, MAHCHfSTII

FINANCE AND B USINESS

FULL EMPLOYMENT IN A TOTAL WAR EFFORT

FRO>! OUR n !IANCIAL EDITOR (J.ffi,{ f ;... ~


~ . .., ~ . .,._'( TREASURY DEPARTMENT .A .J I V

~c. 240 PROCUREMENT DIVISION

WASHINGTON

December 27, 1941

":'~.ere i s sub:nitted herewith the oreratin!:

re:orl of Le:~d-Lease purc .. e.ses for the r.eek ended

_ece .. :ber 27, 1341.

J<rran~e:nents he. ve been workeu out with Lend-

Lease k~~inistration to allocate inmediatel y all

,,one~ s ear rnar ked f or t he 'i"reasur; Departnent,

Proct,rerent ::li vi sion .

~r."r.~k or of ~rocvrerent

\

( t


OPERATING REPORT - Llll.'D-LKASE PURCHASES

Wl!EK ENDED DECElmER 27, 1941

M AL ALJ..OCATJONS

U:SS: REVOLVING FUNDS $125, 330, 609.00 FUNDS AWAITlliG CLEARA.J\CE BY O.P. Io{. 8, 680, 000.00

.3. ALLOCATIONS

•>7.E ~LISITIOllS APPROVED FOR pr;,Cnif.SE

PlffiC11ASES PREVIOUSLY REPORTED PURCHASES THIS \"lEEK

'i'OfAL PURCJ-I.ASES

:I!..,.ISITIO:\S D1 PROCESS INCU.'DING Ti!OOE AWAIT:ClG SP!!CIFICATIOOS

$319,419, ?27 .47 22, 639,834.07

241

$572, 245,640.00

134,010, 609.00 $438, 235, 031.00

$382, 525, 025.33

342,059, 561. 54

$ 40, 465,463 .79

·~~] DIFFERENCE BETNEEN NET ALLOCATIONS AND REQU ISITIONS APPROVED

FOR PURm!ASE REPRIISENTS ALLOCATIONS IN EXCESS OF COIJL!ITI.!ENTS, REQUI

SITIO,;s T!WISFERRED TO ar!!ER AGENC IES, AND CANCELLilD REQUISITIOllS.


FIELD ORGANIZATION

.,,. ') ~ws/§tter

DBPSNSE SAV INGS STAPP

T RIASU RY DBPARTMBNT, WASHINGT O N, D. C.

DiCEMB!R 27 , 1941 IIOICB~ 32

A great rooponoibilit7 nov rooto upon tho thouoando of co.aittooo &D4 tbe tone of thouo&ndo of ind1Y1dualo making up tho Piold Orcantoa tion. It l o up to ua to pron tbAt tho .AIIorican public, Yoluntarilr, will oupport the great financial demando of war.

Each aontb tbo 'rre&OUJ7 will oxpoet aanr buodrodo of ailliono of dollar s !roe the aale of Detente BoMt. Onl7 a c;reat nat1on-w14e aceept&Dce

or plano to bur regolarl7 and OJOt ... tieall7 will anowor tbio .. billsatlon of 1nvea tort behind the Go~ernment 1 e call.

To occomplhb tbi e purpooo, &11 work lii10t be intanoifiod , 'rbore auot be an act1•• local coamittee in eYery eommuDlt7 in laerica. All c1t1aent ~•t be l•preeted vitb the laport&Dce of co»tlnuoua in~••~ent 1D the Traae

ury' e De!ente aecurltiet.

1'ho methodo of ~~&rl<otlng which oiapllf7 and oncouraco continuouo purchAt lng are vel l known and are being proaote4 b7 eYerr a ct1Tt comaittee. These eame setbodo- vltb the addition of plodgeo fro• eYOtJ .AIIerican, wbiob will de~onotrate to tho 'rroaoury Juat bow auob tbe public io willing to inveot sonth17 - can and will ouecood to a docroo unparollolod in bhtoey. the complete u ee of all plana .oow &"f'ailable will be Merica 1 t u...,•r to U¥

chelle~>&• to tho belief l n Yoluntarr a ctioa.

Allerico io arouoed. ~ taoll: io to put thlo epirlt into action. Succeu c•ll• !or oacrlflco on the part of tho burl~>& public - for both work and oacrifice oa the part ot eYorr committeeman. Tho oicnal to CO out and do the biuut flunciol taok ot all tiao bu been cinn, It 1o up to

us ~o product the resultt •xp•cte4 of ua.

Vlth crooUngo of tho Soaoon and onrr cood wiob for tho otronuouo

year e.head ,

SlnctrtlT 70urt,

GALl P , JOJIISTOI ,

Piold Director , Doteaoo 5aYiDCO Statf.


:J(_cws J.:sller

' - 'j ' M.

1111 u,... •. ~,t Moll

- - Yernu to the Chl~ Sua

1'0 !Ill ww - Pace 1a &.U>IO "'-'"'• • he• 19

IADIO XDtPn XIS letac l ecnUt.S. _ p~ 19 BtfllDIIIG A.'O tQU 4uoctaUoD Recru1 ta

Dollue for tltf~u _ Pace 20 MtSSISsmr.us Llu Up tor !ocd.e _ r..c• ao

- 2-

~~./Slier

R'WIO CXCIJIIICI CLitJS ... lQI IQIP'

d TW jKIO ••'ben of t~ Jtel4 I Wf • sun AUtahtret.ou, Steh a.tn~• u4 ~ ••~•r • of •"-'- u4 loc.l co-lthu, aet ta Chtc.co ~o-ber 16 11114 17, for u loh1ut,.. t wo-41.7 eoo.ftrtDOf OD W'll7S foD4 ata.tl.l to 1\ep "JJ .. 1 .. of Deteou BoD4t IUI4 11\PP• t:o 1111\ lh1 6..u41 o! a var eeoc.-.,.

PQ!P' raqs vyHII!O!(JI tor thh coar.recu vu St srttea ptprcythfu. tbott of 'bh 1•t cUett

1i.-110fl aa4 an.h\aAt l vho ar• coACt rnl4 v l\h 1te Deftcet s..-111&1 Procn.a, u4 tbt 41rectore, aul 1t&at 41n ct.ou aa4 th14 r ·9l'lltatethu of ,u ..... ral 41Yii 10D• u4 e.cttoa.t of \ht a....4-~t•re Del•" S..rtac• .. s~r.

l'- Qlllcbsl, Snit • ., lOU Cal .... Wfl 1lll

•• •••

tP KQTIF w CPD1R ~14.e.r aoratac -,. 1hl4 Dtnour Qelt r . Johetsop.. rtrtt •Jihbr vu Jorg14 1 . qra•u. Sp.clal Aut nut u the Seertury of the tr .. tuJ7 1 who .,., ·he:o to tu~leU chtra• of t he n.reue S.•tac• hocru e1oce t.be eupdp vn la\UW!h

td Mfl7 tbh 7t8.r . Mr. Orane outllne4 U\t pbllOIOPht &04 ec011ooalc rteiOD~tnc 1.1ft4trl7lftC t he efforh to ba'fa Dtflau loob end S'--Pt )JI.ll'cbau4 wHb soct1 vhle.h vw14 ot.berv1u be tpt.Dt for cooth pro4uoM lD c~\U.too wU.b t!a pro!~Uoo of war aahrl.ah.

1 1\ h OW' jol>, 1 l!lr, C.ra .. l N i4, 1 \0 Ut \0 it tbat ve MA\\factvt p a, plutl u4 I.IAkt to v1D tbh v.u. fbi lol1•t4.ul c1Uteo ara1t at., u 141 to ht lhe

C0'U1'UUt baYt the f &clUUu vltll w<b.tda tbat cu H ...... Mr. Or•••• polattd. out that Mlet of tbt lnl .. r u4 C Jood.t plUI tb.t

Nllu of tbt .. rlu 1 Boo4a of the U OO u4 11000 4.to. .. iaat1oca ac:~cOUDU4 for u uUM\14 11,705, 000,000 of th• ••••o .oath taln total of 12,008,000, 000 tor all dtn0111Aatloa• of all \brtt S1rl••• !Toe thl1 fact lt ol&bt bt atwee4 that a,pprox:1Mttl7 1303,000,000 of tht total 1o•uta.-ot 1o Dttenu S.•lGC• loo41 ht.• c ome out of c\U"rttlt euotnc1 rether than ac~attt

ta•hc•· 1!'h1t vo'\&1.4 . .. tl that --.c• ••ratrl wen to.•u U QC io tbt l>olld.1 a'bou.t 140,000,000 a aooth,1 e-oaaeattcl Mr. o,...,.,,, 'aa! thet ' • oal7 otl ... t eath of tbt Jol>. •

- 3- Regraded Unclassified

luf'7 Co1t.Uo Al)My ltvt

"PI om. la t r t.pUoeu Wtll '• ,..,.,. ... ~ tbe lr•IIIU7 :o.,.r.-...t f or ... 1• oouooUoo vUh W a cun.oo.

ogtq'LID IIUi!WfiSII •• to ttL. proot4w-o to 'be followt4 l .a 41Urlk "'" l iC Ua• • • cuh u4 ~tUoat •• to the hu411A.c of thh \ r-..u.,, -... takiac wlll 'bo fo.I"W&Z'4e4 to State A411lahtr-.toro l.o tho ...,. flltvo.

tp IIC91P pym at tho tiu t c•o.ral t tnl.oD of t M c.oo.toruu "" ' ''If OAtp£4, p:roftnor of pollUoll t olto.co at .&ahnd Colhc- u4 a IPfOlll oonnltut to S.out...,. Morcoo\ba'\l t lact tht laotpUoa of tbt n.,. Ito •• lu toc• Propu. Bh h~ptrlac a41lrou will loDC 'bo r•• 'bu·M bJ t bott wbo attt~ tho Cblcaco oootor oooo.

!Q .JUIGilfl (! Of Mia l CIIJTSI f t fhl4 41r.otor lltftctht J anaq 1 vtt UAOUDCt4 bJ" Mr. Cl'aTtt t t t bt CIODOl\UJOD Of t~ fir t t ,.OU'al ltU1QD.o' atr. lo)aotoe , v.to h rttu:roiac to bit CCIII'JlU,7, tl:&t Me·tropou .._ t.Uo lallll'-

uco ~ lo l ew t orll: CUr , will h c:r•t l7 a1 .. 114 117 all ._bt r t of U.. 1 hl4 Statf vbo han 'bo• prl'f1lerct4 to 'bte-c.e acqQ,J.l.Ut4 vUh u... ~iac t bt put aha• aothli ~ l'.at ' " n ot lllii" U , blu·t aD4 toGl, to tbt d.ntlo~ ••t ot t.tt. fh14 ort;D.Qhattoa. 1ort~hl1 he rill coa.tlau \o N ne U.t !'r•ftr'7 14 • co.ctalt.at he c:apaoltr.

ht b Kl· IOJm w. SfAIIS, u u toc latt fhl 4 1Urector dace url7 1D *'• • uo a»polahd fhl4 41l"totor t o wccu4 M:r. Jolulttoa, Mr. tparlct h

00 hf'lt fro• bit podttoo •• •t.c ... prttl4Wlt of tbt lloweJ7 S&Y1Q&t Jut ot lev Tork Our.

fiO! IW L ICII'I'IJ!i! YtZ't Ml4 ~Ud.aJ a.f\t.noOD. pd. Wt4uMq 110ralQCo f1at ooatue&ce vat 41TJ.d.t4 b to f O\I.r ••ottoot of ~O%t.tt17 -.MJ. t h t . • ob •aottoa took up • cla of Ut• prl'Dolptl ,._ .. , of tbt Pfoc:r .. vt\h t voln ropr•••tattnt of tbt> 'fatll.lJactoo olfl c., ...nac frc. ttOUoe , 0 ..otloo ..S h.Sl-c 41t cut l .oae ot lho N ,.. .. , o·r t.b.e PftCI'• u Yh.lcla ,...., a u tptOl&ll.t-c.

!WI( TD'!KmtEiu4 t:e. 41NUt loot wb..l.eh t:ht7 f16CMtrt4 GeM a t'na.1t:N la\..-. ct.l~C• of 14 .. • u4 • epirl.t of coaflcl•o• u& dt taNiUUOO Oil \lM put of t \a \ t 1N4trt tbA\ t:hq colll4 u4 voulcl 41t oharlt \be ,..,. ,

1pou1blllt7 vb.loh tMJ ba4 a ooQ t .td.; aM 41.,. eharc• u h ~h • ...,. t ba\ olt1•ea• of \ta.U r·• •JM'Otht e\.tt .. vnlcl alvqt h proU of \be ,..r1 Yhlob tb.elr t \a\t t.4 ptq..S. 1D. tbt Dr ftc•• ,. .. , .... Procna·

m lilA IPI'CII ot u.. coor ....... •• • l~.a.n ... uac t.a.ter.a. ' ' Ut 6el...,t.M \7 tM r..s.ud .. oun kDk ~ Cb:lcect a t nt.ch Stn•\&1'7 MorcctlreA •• t be prl.aol.JIIl rptotlctr. btraott r,... bit elCDiftMa·t ..,. ·irtU &rt prtt •tt4 OD t.he aut two ..... t f \ be J ae t,euu. ...-.. Ool4bt l'l

l!a · II! Iptk Qltz

oqq or !P 91QlllRILIGifl ot t M 1 aeaora'blt l\lDoil4oo aHtl.O.C vertJ the h\ro4uUoa or ttwt S.c.retu7 b7 lt4trt.l R•••r•• Jaak Pretl4aat 90 a. Iggpcl \he otlrrtac. ex\.aportAto~• t44r••• b7 Xtu ovl S\e tt Cba.t.r.u, Jl'f,!lcb l1ckQ1 \be 1 a.ll \o aot101111 tou4..S. liT 0... u 11l Cbtr lte 0. pgu ; aD4 t he t1atl7 ..a :Jt!'Uo•t r _..k• of feu t State J.9tahtr•t or lrepk lsoUtl4. Oncoll l~t• Qal,.... blatt BprJ. Mttttot.1.ttttt St.e.t• .U.lolttrator Dao.ttl J, PRbtur, l tJW York. 1\.a t • Cbair-=. lpb•t Y· PtUtr•oa. 'D\.U State 14a1Jd.• t rat.or m.rltt L • w .... ,.,.., Cbali"MA

Lf!l r , •ul!J.

4 m mgptu tqr ot tt:e Upo.r-w.uo ef the w .... St't'U&'t hocna. u4 • aov t.a4. ~Ut:r a4ortt.&D4JIIC of \llot cM1 t o \ e :r• cW. u4 tbt .. ,~ o4t to lie 'llttcl to a cbint ·tb.l t coal. oaa• to eU • vbo vert p:r1•U ect4 t o aueD4 t bh DOtallh p t be:rlac. la tla.e woNt ol .. orota.r'7 Mo:rc•t.h• 1l•

1 '!he d.tc.kt aro olear.ct t or aouoa aa4 U. h \II> to u.o to follov tb.roQCll. 1

• • • m flU Q fll ' l w

1 Vltboot 41ec:::ow:at.1.QC t:U ._,.rtu.ce of \ he n41o, pre .. ... O\ bu *Ct:DCl .. of ... llfpret floa, \bt uJ.tt.t.O .CC

C .. t or fa.Uve of the n.t••• a.•llt.r• Procrta Y1ll .._ pto4 llpOD. tM work of Ud t flel4 o:rpa.ba Uoa. It h, la tba l.at \ ual.7•'-· \broocb tb.l t ch&utl that t.bt 'rr•tw7 hope• to QP:tot.eb " ' coa.l- lh •.lh.._t. 1D aatlOMl 4-e:te:cu o1 ..,..,., au, ,... u4 c.h.ll cl 1D. U o

tra.u t4 St.a t.tt • • - tlr. 7et: er 04trp.r4.

- 0-Regraded Unclassified

IIWI RPPJIP

:J.(_ews .(stter

• It 11 ar TO us to ro:w..or !!!!!Mr

btncu froa S.ere\a.J7 Mo:rcu\l!&,• e A44.rtee !o U1• Dd'ect e S.•t.Dc• 1\aft t.U n :r ... la

Chle.co, Dec.• llu 17, lHl.

• •• • lov tha\ v• ban ol....-.4 the 4Mb tor ac\loo lt h S! \0 »' $:0 t91lgw tbrO'Mll· • • ·•

1Yt wut follow tbrouch, a.o\ oal.7 la t t rw.t of • tw aUU• tD4h14ual• or a c~• ot 'blllto1 4olla.r1, Wt 'tr e 4ttptaiRt4 t ffort. to reach ntu lq4h14uel ,ta \hh Aaiil:.a• 0 •

•rot all of ut ~ pilot a boa'blQC: plut or tire a CUA trc. tbe ·4eck of a bat t ltehlp. !bott of Ut who are too ol 4 or too 70\ID& to 1•t tcto UA&forw vill h at.\t4 to work lOftii T boVirt u4 per.)' hM'fhl' \Uti u4 clo WUbo\lt M IQ' of our accu.etoa.-1 CQaforte; bu.\ l o. th.h Deteu1 St~ &ace effort we art ~t tYM belq alkM \o c:h t OW" •o1117• Yt are Ju.e·\ beiAC a lklll! to h D4 ov _..,. to tb.t O.O.troant, to tc .. reu. ogr • Yiqct tor xtgtpq .

' !hat, H ... , \o • • • i t a call t o which nt.f'J'Oct will waat to utpOO!.. Yt vUl wut to 4o 1\ \' tl;e u n , tall of nr &'0111tz. • •

' Ov probl• , . .. 7ft. all bow, h oat of tla&~~ClCC tiM .unooal.7 upu4l.Dc cost or l.h.- wu -Ath aYot41cc U::t l•nM &114 4.ucet"ou .nh of htta uoc •••

1101' t.bU TM.aOZl, lt n•t t.o ••• GE MJor t((o[\ runt Dl\ )t Ureet.!4 ptrUeplerlt a \ tMet b t ll w l kt gr llCt o;bo uet h t n .gl H MZ try 'tM" W ee)erl fl •

1 1Gtlat1on f-.4 t oo curr.at to~o••• ra thtr thaD oa \bt •on., that AQW n th 1.c tba Taulh of M Y1DCt ballklo l\ ..., ... hH.rUut t o epMk of I SCIU t p l o41DC OD tbl pert of •1llloDt of ptopl e to t he • 1441e &D4 low 14ooat CJ'O'OJII I but 1D wuu._.., 1D the taoe of a U•Ht4 AM 4w1D4l1Dc tupplJ of Oi•111&a COo4t , t her e l t tueb & thtac. to varu.ae, ucen .,..Uac ..... , tbl "'toe of &JJ.:/ OOIIUio41 iT that we cu eafel.T 4o vttbO\lt.

-6 -

:J.(_ews J:stter

• ' ' u or m ttl to lOWJII mmgr

Jlnastt tt• ftsrtlm Mor g pUG' ' A44J'" ' (Co:aU-..4)

• 1 ht.YelltP ttke4 -=7 U.att vbtl:t.r vt a.-.e • coal. a .,oc.. tor tbt thai u4 Statu . 1 ba•·• e.lttrQt e.-olt.t &DIIWt r11lC vlt.b t 11011.17 flprt bKa11U 1 'trATt hto .C.~ IIOrt 1tUr·ntt4, tt..ntl.z, l .a reaehlAc •td ltll&'ot t ·t of 1..., cU Tidult , p4, IKOII41.7, 111. ab•or~1QC C'W"rt..D\ 1aOOM ntbtr tbu a.cc:uNlet-e4 ,.,..1CCt 1z; the ~.. bs 1 ylll teJl rpu QO'tC yMt V COt l h. vbe,t QW g e l elpll h y4 a.u...ll• U it to r•ch G1.;klr v Ubip thl pnt f g aoptht . -.arr tlftllt resipi•ot of rtcule r SUl'' R' iaapat i9 iiii 1fAiu4 Stttu. ee4 » han eng ops ot \b'" 30 eill len mplt uttin« u 14 t t og wft ot th•lr " ' 'tc\lrl t tlY v&thln tht thor t ee\ poltlblt \ 111 . Ap4 ybep 1 Ill •j9ji p:ji of their P"·' 1 11 pot thlpkip« l t t t lr pC 1 tpkeft eoatri)»ti op. 1 ••an • r•tl in•••' ' 'l'· the t•rx it.:i; ;;;:::; M9) P'!'!PD ey ef'i'O~ •dth9U\ I OtUflll $t lsl y ;;;ra:;r;th•r ptstulttn fro• bi"tlf tp4 Me cynz.

' • • • ()u.t t1&}:1tlq; IC 1D th PbiUppl.att aA4 lulu4, 1a • ve.u &D4 Val:t a:a4 X14WT, l.a all tbt pot t t of 4,uct:r oa All t.M ,.,.to •••· an looklae to u t o lfQ-ppl1 tb• wltll ttJ. pl.ut t u4 p.1 tbq ~.. D.t yMlt eo-sa 1t ltpJdM '2 "· ridrt W t ie tNe ge. tt jjill, )Ullet 2' f211tn to ytp thlt WI - D4 ltt MAt o1 O'IU' e.aeaht -.kt a~q att u.b a\ft.t lt, "' U't aol..aa to wto U. oa,r aUht la all CODtlA•te. vho .... ~- tt&tl\.oo tac ov llaUh with ov eouoa ~ for J.oac, Mr4 , ...,, , .,,... took:l.QC' to 11.1 , ud alto the oppreu t4 ,.opltt la \U COGqlar~ lall4t Vho trt DOW UrtJac 1A 4arbt tt - tbtlo too, u• loolda,c u ua. to ...,,., tbat 4arkutt •"7•

• h 11 , 7 t ar the cr• tt•t u t t ul thl erMA••• opportuUT that t-.,1 tnr oo• • to oQ.t cO\JrA\1'7• We la tbh roM w t t prou o\&ftthtt wortl:o' of that chl.tltACt • ftlt vor d.s \)at VlutoD Cbl.trc.h1U e.d4r·nt t4 to hh ow. peOJilt • T• f' llCO Ot.D. nov b t e,pplit4 to 0\11' I I

ILt \ Ut t O bttl" our ttl:rn, tbtt lt tbt tt Ulll sed. ssat n thool4. tad t or a tbo"'t&.DA ra.ar·t , MD will t tUl eq , 'Tbl• vet thtlr fla.u t bour. 11

-. -Regraded Unclassified

~~.(slier

"'An• • 99''' sa anu• M!'" q t N I

een qr gg J N.Itll mug wort.b of WaM ,_._. .-4 . ..... h 1 lMa coeJ. of .A.IMJ'leu ,., ,.uvo. ~-\ ot W t pal ._, .u. oa ._ ~.,. 11, ' ' \be QJ.O&&O c:.rer-.co of Dritf••• • rtac• t-.1 'J ~ ae tp 1. ""• PTu l._t M tbt a.- ttoro, ~. Jw ton u4 ca._1,._ ... of the ,. .. _,.,. 1t1tpar1aa.t' • A4'1"1.orJ" eo.tu ...

11 aa bqw to uco•" ~· 'bebal.f of tbo • \ell A4Ylto'7 e.-tu ... \bat , . ... ··~blhbe4 • tv'- of • • )lllhe UlJ.aU for t.M tale, lA 1M2, ot u. 1. u.f••• le'rtac• lt.-o• u4 loD4o· t~r ro\all .tor .. tbrnctao'at \M oou.t17. • .. ,, MaJor .... •tc ooutac thh l arc• ~\a ov Oo.aH• te.t bu • • • atACI.hl. of the tact \hit 1t h M?fl'.t u:.,, iD u co .. of tho \ot.l .-ou t rah.& \7 req ll n or .. 4v-1DC tlM •Uro pw t od. of t b.e t .. t -.r. We "Dt l h'f't bow..,.1r \btl\ \bt •• u4 YOMO Ybo an ...... la re\all 41Url'bu.-' uoe. ••• vtll all n l oo.. lhto ooacrttt oppoU-.U7 \o tbov tbtir ••t\lt. • . •

tQ IJDIIAJ 1Cil'OU1 of oao bUll~ 4ollau h .,..OX'-Ulr two p.-r cut of \be t t tl .. te4 nl,.. of retaU N l u for tbo ooa1ac ,..,, to acbt .. , tb.h o)J.ou .. r o\&Huo , ul r ·elllwble tke.lr .nort e \o .. u bood.o u4 otaape to tMtr .,, , ... rt, 101lcU or4an fl'a. \~lr t~~Ml .. al• eovc .. ot ""PPl7 u4 •htu\l..U., lacrMM \heir WD p:anla111 o~ l:lo·tb Meh u4 1 \Upt . •

R1.tUa w1:le ....Uo •U will llo tra.latd. to ..,., 'Mat I li'U J"99 pan •f 7fiiV ..... 1a I \Uiptl 1

Oaetese • M """'" .. rcllu41 M \h:ro'QCb charp accwau vUl lt• ci'na M t.-onuu, to lNr' \oDb b \.b4l .... •e:t• Ia tha\. .... , the rt\.allere • 111 acup t 'boD4 or4..rt tree out \ O..t l a ewa• tbe cr·t4U r ht, 'bola;J l.bt bo:D4 tro• a \.at~ u4 4t 11• ;r the 'boD4 to the CN.tl•IT•

.411 ofllsv e 114 -lertt• wUl " ' wpl to 'b\q" b~a4• ihroucb p1r1 roll allo.._t pl.aae or \ o Job ·~-I~WHk' ol"*bl o

tJpoa c•olwliac "'~ of u .. .. \&Uart ._ _ _ ..., ,or.._ 4ecl &r..,l • • .,....- • .-.,

. .... 11«• M UMa> IMk aor apec\ .., ,Ullc t awor for

.. ,_.. ..._, w r....,..t u ov ~· ,.utouo ft\7• '-4 w aM11 u..,, blip l.a • 1a4 t J:te\ RICb d'tor't • • •• eas ~. • a u e:r Mw l&rc• u ... , h ..... Ylll at..,, 'M -'1 1a ......,.h oa Y11ll u.. .non .... .,.111oe U.t wUl M ...S. - \M 70.C ._ ef OtV 00'111\,., .tiO .,.., ct'rl.ac ot ihelr all 1a tlM ..,.... 4et• " of OU'

• "•·' - 8 -

[ IR'"PfOMt

'!:"!::~~!!:~~~~~-- ... ~ •ll• rscw- W.. s" .. 1A ~ 1.-,... 1a ._. oalN *lak _. •~'-tu•• .....u- \o 1U' ..... • r. .,..,... ... u..\ .u.. ...,... .. .,.. eo~ at. • • "1P r -... Srlappl.1. ot bo\b bcelt aM .-...... -.. .. .. ,._,-~ 1a - oiU.. ~opi\0 _. eftarw ot ~ .. _.. _,, oliO _. llrt1co DoporWoa0 1111 ..... - ot ..... oUJ 1111 PriiiUOC \0 pro<tuc• ..,. .u..on-. ~ ""''P'J.o• to - .u -..

In la.rt. w*:t o ..... t.t W I'# w ~ tiprlt ~ tal.H "' ,..,... rutnt• t.l" l.all• o1t.J benkl 1A t t. ftr.et. t hi'M ~ ot _,. wt.tll U. ~· _. by t lw. .. blllka 1D t• tirO'\ t.UM dQ"t of u. pr...S.<~U .... " '" .,.. ... Lat.e.r tiF•• oa.pari.tw ell.ol dt#ltw tM tir.t ... of ww with t tl• • s.. tbl pr"t?i.OU .....

In lt.S kef qWtt1 b .UC. rtp<rt!Jw t o t ho Wriotn B&nbn & .. oolatUn eold 17'?.1 *"'' Dlftul Bmd• 4l.1.r1tc t.bl eecond ... of Doctllblr than tM7 ciJ.4 d~ tho tiro!. • •· s- notoblo PI"-' ... !.no- '

• * * *

_, _ Regraded Unclassified

:Jt(,ews .(stter l i i LD OIQ 41 1 1A! IOI IIJI

.QiaaU. l'ht Grap.4 Theltrt in 1htctral4 tho-u a sneci d Dt!ta .. loJWI. •ad• tnttu at eacb ot lh Ptrfol'll&l:lctt. !he t.ralhr, wiib -.rthl autlo &Dd I fltC ~C~~d, U7Ctt aGYlt ,Ottt to puroh&tt DeftDt t ~~~~ I I t.ht7 1 ... , 'ht t~trt. r

- 10"

r :/1(, ews .(stter lll tp OIO A III A IIQI 1 11 1

.If&· X.krt of tiM 8vJ1•tt• IntJa ftgu. all of htch tobool act. qoato.rt4 a wtU17 pulUoh.-1 u4 Vtll 1 Ueo4t4 1P.Ctut Su\y• St.ep 'hC:So t t'ectabt£ llo 1'0 pia ..S.lt slOA, U l.aclhld:tMJ. OJ' I CCKQ:Ilt ~ MJ't l f \0 &llov po11udon ot a Deft a tt St.a.p alba ooat.a la.lJtC tt hat t toor 2SI ,~ ... M•btu of tU Tnt.b 00\UI.OU pat O'Q u tftthudatUo t tup nlUcc e.upalp

4~toc tht tea '-1• prior to tbt 4anct , acre than re4oublloc tbtlr tffot'\ t 1rur \ht tUtc.k Oft Pearl B&rbor. Stu:p• u4 llbut v tre •ho ••• H a ble a t tbt door tor d..uotrt vho ~ aot pr ... lO\Ul7 JIW"G~ .. 4 th•• h]Mru .. ot \be o.ru. .. Sa'f'iac·• S~ Duet were bora. b)' tbt lwHytgp LoY• ot llkt, vbloh abo avar4-.4 pr-hu to b4hi4l.lalt &e4 teut ttlllac ~be l.atc:ut. a11.:lbn or a!!:ahtloat . Vbto the bo7t fCNDd. t h•talnt ~II& or4trt for ~Q4t at '"-ll

1 , s~·· the 1~ pr.-ptl7 offu.a4 a wH or cloth .. to the "' vbo•• Joe& er•btt to\.allt4 tlM l:d&bet t. ucru~.

lilW• h.tohett of a $1,000 n.fut t JoD4 ~ J.tl4J'Otc-OC£1n Lq.e.al 210 Of ~te tnUlt Ytrbtt tlptoa ot M uty, 010, wet UAOWletd Dec.ub:t.t 16 \7 Cf:OtU hl!tr. St.ah Dir-ector o! tM uloa. Mr. I abar abo M.14. t..M local wtllll4 ~leD .-.ct4C l h ow ._bt.t t tor \be • h of De!n.tt Soo4t u4 St..,t .

'l'b• lratylgk lulya lp•UtuUop hat •olu\ee.tN to t .. p t.bt 1\eluta

Stup .Ubuat btlOft&1DC to tc.bool chtld.ru of ll'Wlewlc:t l.D itt Y&ullt tA4 to tu4 th• by epeolal 'beAk u ttu.pr to loht tOhoolt on N.ch rfC'I.Il• r 11\.pf Dll¥•' 'fh• 'bult a euenc•r elto carrlu tO t.ht aobooh • w.ppl7 of atupa for n•ll \0 \be t \udtD\t.

KAI" •p. Oonraor Rybert J , 0 1Copor hat a e-cept.N appo1otaut •• hooor..,., chat~ of the XarJl.all4 W.ott S.rlQCt Co•tttM.

WMCIJsms. Bodo.n' • Ptru htlpe l lop); r•porh t~t., u • rteult e! t.ht ••lllac t.o itt cuatoae . .n of tbt kM 4ralt forw 1Uv..au·au4 o• PIC' 5 of tlwl l we Lttlv tor JOT•'ber 15t1:1, !lubt4t of Ut ~tCIUI't ba•• ntllorhtd. recvJ.ar 11011thl7 p:lttbe.tta of Dtt .... a.•toc• Boolt .

Ktgpgu. Ditton B~t ._, Upueu !or pufll•• vork h the "laa wbtcb the lonhere nwp 9gspyx of Miu.eapolh h \t.tlDC wlt.h ~7 c:ratlf71Ac ..... auHs. 'flLe e-o~ h eocq:e4 ta pro4u.clac tuuUal foClult-eDt. tor tht ...,.... eel torcu. r ace4 vlt.b the probl• o! workloc ~b• plut anec d.a7• & week, u. ttu1. ottert4 •• •olW'ltetrlGC for tbt l a te Sa~~ otcbt. u4 Mr11 ~4&7 t hlht , U• ... u4o-a-half onrt.l!t .,.:,. 'l'ht o l.he Cocrpall1 Jl'll ~ ~ !tftll Joo41 11 .ptolal pr1~•• tor tbt atD OD t.ht t l l.wo tbiftt . At tach wo~ n· utttt tb1 plut, ha pu_u bh a.r4 h~o • barrel, &D4 at. ttt. to4 of l.hl t ll.lh DUll art 4ran, The -.z~; wbott aut h 4rt'4'D t1rtt. wl.Dt • $100 10011, Pl'o.t hh O't' t r ·\S.., Sntnl $50 e.d 126 Sooh are aho avard.td. ~ ooePlll¥ tUl• U t tbat. t.bl • p1aD pz~u aa u t.r. t,OOO ....aehl.DI llowt of pl'04QcUoa per wHL ·

la AauU!, \be cou.\7 hfuM S.•l,oct e-J.Utt , X. r , n:p ;., cbat,_,., baa 4 .,.elo,.S. &D4 JIG\ tato ttf.c:l a ''~MM" shesk tllotMpt ply I.O t':IA~le t ara1r 1 Wbo are riCQlar- cr..-•'7 f\lfPU•n to ..., De:! a M loa4a ooo-•uintl, &D4 q ei.-.Uealll'·

... 11 -

•


1 1 1Lp Ol9 41114f l0 1 IIJI

KIHiplnl. !be CUr of typtlo ... _... u 1ahr .. uac 4Mlt.s,.1 bat 4.cl4ecl u clh\tllNt.t to cuto~ttn of lh t leot.r1o 4ht.r1ftUoa .,,, h , yt sm u)eu ,, ''" tom 9r Itttet.~tt Jce4• ap4 ,...,.. ONJ.autiT ~ ewplv.t ...,.,~ of tM '1\tpelo .,., ,. would M patM4 oa to cut.-.,., • \or hrUwr recl-.oUoot la electric ,., ... ftd t 7Mr• Jaow"e:r• 1\ "'*' felt tblt to ne.wr-ac• lwueu4 '"' of powu 'br a r.tw:Uoo la rattt v"-1.4 aot "• ..S'Yhe'blt la Ylw of the h•Y7 ci..Mt vhtch clefau llldue t.rl" ere ~ oo tht povtr rttOW'Ctt of tbt SCNthM.t t . Dil\r"llNUoo of tta. NrplV.t la Del••• loUt M4 Stupt vat ~1414 upon 'br cU7 oftlol&lt •• 'b.ot.h • pra tloal u4 t petrloUc t ol\IUoo to thlt ua.u.wal pro'bl•. c:-

llllmml· The tpteltl elllr; htUle qep thova a\

\ht lt!i "-' clttl&necl. by tht 11l)eu I . LtgQ4r4 Ce. J11K of lt.:Atat Cttr. the co~ reporh \hat cla.lrlu lo IUuou.rl &l't DOW 'b\r;rl.a, t.ht QW OQ 1o ltr&t llUPUU tt.

!I! JD.!IT. n. Jakta,:- , , ...... Oifltlo.n of the l ftUk o.re .. Sa•loc• eo..tu .. epootOrl4 t P•!tpH Stm bogtb la coueoUoa vltb tbe rece.t~.t 4hplq ot • f'l1ll .. tlu replica of the n too to Ant¥ fallk b t~ abovroo. of a ltWark Chryt l er 4Mltr. Ot't1ctl't ao4 .-ploy••• ot all c~ •nclal ~ anin,ct 'bukt hi l w ark •ol~mttutd t.Mlr ttl'Tlctt to -.onlac tiM boot.h. accor41Ac to kz I. !larhy. ,,. .. , • • , of the lwark Cle&r'lDc

Routt juHtaUoa ucl ellali"MMI. of tbt Buki..Dc uc1 r tu.ooe Oi•hloo or tbt Jtwark ec..u, ...

- 12 -

:J(.ews .(slier l l ! Lp 010 41 11 41 10 1 1111

'pD S'D w. not wa1D&117 , u:rae\ln Det••• le't'tiiC• noat dOW ,, the rl.cJlt ,., •t•tcl ta Qt:rJtUtl t onml CV1UMA Mll4t tr7 tta. Aetttw tmu s.,..., of cwlotu. 1a e441tloa to \.be ' Gin n.rcutt BoD4•' l .,..o4 at tbt •14-• • 1 lar't replto. ot t Defu M JoD4 " "" at iN -.oqrout ot iht floa&.

w ' "QK+• Olaahou Cl\71

•

•ne&Ol'J' Bouu• - tontrlr 'D.feott Boutt• or ' 'l'rtaW1"7 floutt1 - ..,., tol'Mll7 4t41catt4 oD \be t•tolDI of Dlo~ btr •· .U tbt clt4.1oat.lo.o c.r..ooht I · s. My• , prut4tOt. ot ibt Pb11Upt P.troleua Co., wbich oooot.NChcl \U 'flctol'J Route• " 01:11 of H 1 ooot.rl~ &too• to \ht Defeott .. .,tac• hocr•-• torallT prtt.ot-14 '' t.o lpQ len•ll, ehall'MD ot \bt OkUhou Ctt.7 Dttn•• S..-iQ&t eo.suee. 0\Mr ,,.atar, loelwitd. lryk lh:Ultpe, cbdr.a of tha bot.l'd ot Phllltp• Petrol.,. Co. a p. s. Swt.v llvr ft=•; 9elt 1 1 JWet.gp. riNd. Dluot.:or. -' IKl9d ~. lDfoJ'MUoa cllr·tot.or ol \bt Dtteue $&'Yl.Q&t Stall; l t.t t A4al&ltt.r.tor 1. c . Jyu ; u4 Itt} lvf•U, cbali'MA of t .bt Coutr De.ttott S.•t.ocec-.s.uee. Jtlow au pJot\V'tt taka a t &be 4e4tcaUu CIJ'IMD1tt.

' flctol'J Bou.t 1 boet.••••• &640 froa l eft to rlcM, X. 1. A4ut , Sooa\or ll•or Tbout ~4 Prank Phi\llpt.

ltpUe.t of • tb.lp1t

brtdct erect~ a.er \bt 1 f1ctor.r So~••' \o ,,,.., •• a •tact tor \ht -.QT .ptolal enott plunt4 tor each dq.

- 13-

Mr. Pbilltpl &04 ...... tor !hoMt \l'J' n:i u .lr'Q Jeep. oot of ,..,... tral plectt ot atlt~ i t l'7 "'"" s-• \ oa Atepl.,- Ota.t 1f l0\0'7 llw.M•'



~~.(slier

A LLO TKI!T

illete!Jt Proct!tt lfo!At:t-

l&cb of tht 1.,200 •plOJ'Mf ot the ~~~~io.J!:;;;:t, eM hl.M.U to .,.-chaM one or _... DdQe wu ..s. a the l.awu::bi.JW of t.IIO dwtro,.n oo 0.0..._ tlllt.e..Uoa t.bat. 1G7 lard worbn wn det.e.ndald to _. h.U"l ~-

- ot lQ p•rUclpoUOD ill .... - I'Oll .u..t- pla 11a .. -Nde bJ t ., l.&rJ• oot.W a1l.le 1A :kN.t.h Ct.rollnt-U. ' Pr 3 le £s up ot krtn1U. (1 )00 -.pi07"1) .ad tb• W·m= Cots= MU le ot .......... (l,:llO ~.!.

r ~~ .(stter

ZQI !II IQIOOt.l

Sharing America A OUlN.SE S AVINGS PaOCaAM r Ol SCHOOLS

,,.,..w~ T*' U. I. T o.-oo Doto•r•nt .. _ ..... .._ •M• TuU.I.~• •• l-.o..-

.• •• • u peo.lall7 haPPt to 1'..., u. onil•t .,.at\ paUtac w ... kTliiCI ... a oo.peUUn \atlt ••• • -4 l'-h Dlreo\ol' of 11--\UJ -..uoa _.. OuTlnl.a la • locq ......

td.a ' "-"·

• ta.t0,...uoo of \be ,,. COIA\alat4 lD t bh bultetLa t • ••rr t t-.17 aA4 will bt TtrJ •..tal 1a t"- ~Qool. JI'OCTP·' - A Int...,. auu aqt. or M.aoattoa.

• ••• ot rlkl s..port.POI \.0 U.. Unlopo ._, of \U W••• Sa'f;.

lqt trocr-··· ·- 7bl DlrtOtor of School S.•-1QCt, lc • Wp lor-t.bvnttro oU7.

t J • s-rUC'Ql.ll.r~ laF••M4 wttk \h plut for co"el•U.ac \hit ritlt. , ... t..c.kiDC of r~ .UJ.OU of \he c:ui'T'1ool•• · - J. ~""' ec-r •• of ld.uoaUoa of • !w Jlo&lol>4 ......

• IIIAllto' &MIRlCA vlll 'be belpt'Ol to .ebool fMPlt• I\ \rla• flltC Wi\b .... \o-e4 proJt ot• .-4 t ... •.•--Ci\7 tcMol .,_.tat--\ 1a u. OQJ.tal of ....... 1\.aU.

•. • • a tiM pteoe tf work, uA IIIIC&••'ioat to HUtr U will H ..,..,., .o«n.•- n~pr••· of a Mi4w .. \tn 1\ate baol»fr t ......


:J(_ews JStter

fO ! B I lr,lpl ll

Mre. Otsrge tat U Dpy:t ps.,snq

•y, an ttpUq the wu tor Deo.er-aq out lo IA41a.upol h,• xre. O.t .. 14. 1Aa4 ve 'belle•• that la. ord.er to viA tor D•oc rac1 a 'broa4, vet,., ·:to ttcbt 4goont1call¥ o.o t.bt boct troo·t . lA tbt O.hut "'•lace procr!! we ba•• 'bun W'Ct4 to c•t ill. ot tbt people to ~ loD4e u4 Stupe, u 4 thas h what ve ere cotac u li'J' atld do. At the ... , U•• •• vUl ha•• hUed btfon lit MTt btp lt we do oot t;iYt All of the people reprettD\au04 011 our Dtftntt S&•iDC• co .. itt•••·

1!has h vb7, h ntt1Ac up the Vueo'• Orce.ahaUoD tor MerloD CO\I.Dt7-vhtch tactdtotallr1Dolll4u 1/7 ot the popllauoo of lDdi.U~.A-ve M•t sr-hd so 4o \1. 4uocratlc•ll7. Ow> co.Hhe lceludtt Daoonte u4 ltp\ll>llct.~~t Cathollet u4 P'r$tu\az:r.te, Jeve and OecUlu, •tc:rou ao4 Whitu, Oollep ' all4 11oD-CoUect vo.t D. lllcb aeabu it Pret14ut of a l uet, iatlouatlal orCIJlha tioa of tbe dt7 or e0Wlt)'1 a.o4 ln aoet iattue-u tbe orcuha.Uo.o. h a cou.cll or h4uatlo.o vh.h maeroue uotta roch at ol'Ue, 'brucb .. , cbl:ptere or autllarha . tbq are tq V OJND vbo hi.Ya aatvd aee111 ~ tiM r~ar ehlude ot thUr or9-4i1&tlou to bm4ra4t of voac. 1'llu ov Yo.n' • Co•ltttt ra4bt" to tcs of tbouUlld.t of • .._.

•ve a.r·• U710C to Mke ov Iu<!Jaupolh voa• ful lbtt lbtt Deru•• S.Y1acs Procru h lkU proct'UI, rt:prd}tu or qce, cr..S or ,ollUc::t. 7or "' bO¥ lha\ vbu tbq \ltld.ust.u:S Ut.u tbq vlll Mkt n U7 N CI'lllce to WI loo4t a.Dd. Staapt. Ve •llo b.ov fro. espuitDct tbat Mluau.IMp h tvlct •• tfrectl•• vltb •o•t people it the .altaaaa. l t ODt or sbtlr OVD 1N 4tr .... ,o•.oce tM7 bow at~4 tnet.•

Tbh h wblt h lalovc. •• •practical d..aoc:ratle t. •

Yos•p Ltt 4ere Atttp4 ChlgA«S Qpnte~ecse

Atlen4Jni lht ••••lone or the Dtftate S••Scce ooatertnse held ln Chic.,o, lat\ Wttk1 wert soaaJtta.voan fro• tht llllaoh u4 Chlc.qo fi.Zid Cook Cov.D\.7 •~'~"• '" well •• ortlc'lah or .. Yt rtl luce vaen '• orpAt taUont.

S• tt4 OA tbt acta 1c tbe pleture a l the rtctc. IU'tt Xre. ltu etll f. atell, Voau't Ch.lrau for UllAoh. a.o4 Nre. Jot. Ald.to C.Z.putu, vbo rill bM4 q tbe .._ ••• orptrlta.Uoo tor Cllieaco a.n4 tbt Cook: CO\Uit7 .,....

- 18 -

r ~ws JStter

01 tHI A I I

1.1410 ,..,... tor"" r='M ...

!HI tft16SUII HOUit

"'III...llOIS FOR Dln!ISI"

Va.riot!' ,...,_ ld.•h l•~ e~trtli.,.q oC tt.t.&t, tcrMn1 and rtdl.o.

II AWEIUCA PREFZRRm"

91)0.10100 IV (AT) IIIC 11M llo<...tl

1100..9100 .. (IS'/) NIC ll\lt IK.rtl

91oo-l0100 IV (UT) ..n.utl Mtt.'IIOrtc

Alt....S lttl.lAJut.~.n•e Orcl:Met.ra: 0.... Taylor, ec-m.•t.or (JJpt !TABS• M • 't.ein41tlc .._ici.ant or Cortl&n birth

• • • • L\Dm tmftnS - .,.. DCW rtCJ"'it..:J for the Dt!MM S&'d.act S\..tt

b7 a ap~d&l .....S.\.t.tt bt....s.t ebai.r'Mft or t.,. board ot u. ladlo CorporaUOft or Mtrica. tdll " wichl.J' ~!Mom • n.e-.. ,....~ MIV' •alb ot ut• ttto 1d.U .ab brl.t talb oa ,,. Dtt-.e Su.lG&• Proana oo tt. thrM ~17 •cbt4altd l'Nu\11'7 s:rccr- aid oa otbtr a.at.10Q..tl...b' tpohtO....S rdo •t.,rk eh~•· Pl&n.t an aleo "-1-,. ....Uope4 t.o r.-cNlt. a.tlo Kimtt·t *"" to ~ oo l oc:.al tro.4c-ut.e of ..,., r.Uo •t.ti.OD iD the COWiit.1'7•

liON CJJ.tJI) AW!IUC4" 11 the tit.lt ot .. ••r1•• o! tt~· d:r .. U4 procr- on o.r ...... S.Ylnlt be1J:w ll'rit.t.en tor t.bt 'l"nu\ll"f Oepa.n..-nt b7 16 or tl» coun\.17'• leo~ r.U.o •cri.pt .n.tert. Tbt aerl.tt td..U b• rehU<td t.o aU rtldio atatione at an e&r}T dat.e.

At. U.• rl.PL# ODt ot a DWIIbe:r at ·~ei.al w.::: c•.m.t n&lhld. to all r.U.O n.at!OM 'b7 \.bt 8.141o S.CUOD ot the Oilf ..., ~· St.att wi\.b.lA a r .. 4..,w &f't,cr u. • e.t&reUce or ..,..

- 19 -

•


1RICIIIJITIIG DOLL.UlS JOR DKPDSI1 , , ,

!hit Ia the slogan of the Hollywood Buildiog & Loan Asaoc!atloo lo Loa Aogelea , Above, Loo Aogeles Postmaster Haey D, Briggs unfurls the aoeoc1at1on 1 e banner In the presence of en R. O.T, C, color guard from Hollywood High School.

F llU!.I(EN INVEST ,

~ws .(stter

J AC%5ar l .US USP<Ji1D , • •

To the Prea1dent 1 & historic addreos of Tueada;r even.iog, December 9, by l1nlnc up Wednead.a,y morn!~~& to buy Defense Bondo. The above picture was taken at that time in the Deposit Guaranty Bank & 'l'ruet Company, Jackson, Misslesippl ,

CHINESE CHARACTERS

Make the Minute Man poeter understandable to cueto:~era of the Oriental Branch of tho Bank of America ln San hancisco.

In Defense Bonde. Above are officers of the Portland (Oregon) Fire P!ghtera' Aasoclatlon , Local 5o , 143, lookiog over one of their recently purchased aecurltlao. The auoc!ation has already 1nuatod core than $2, 000 ln Defense !Iondo.

The poster shown aboYO , the contribution of the Schllt• Brew lnc Cocpan.r, III8J' nov be oeen oo aore than 2000 b!llboardo In 413 cltieo. In full color, It lo Indeed an !mprosalve dloplAY·


Deccber 27, 1941

TO: DR. llllJ

FROM: ThE SECRETARY

These estimates t or aalea tor Januar7, Februar7 and ~rch are ridiculoualJ low and it i a abaolutel7 no baa ia on which to f icure the production at the Bureau ot EngraTing and Printing

\

•

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(

fO

S\lbJect:

TREASURY DEPARTMENT Cv

INTIEI'I OFFICI£ COJolloiUNICATION

COPY OAT& Dece•ber 26, 1941 --Mr. Grano

l(r , K:llll

Eat i.mo.ted number of unite o! Seriea I oav1.nga bonds by denoll>IMtloos tuld b7 montbo through Mny 1942 ,

In "ecordance v1tb your verbal request . Y.r. Re~ baa l)repared a sc~edule thOvi!IG tho eo tlcatec! b:re&lalown of Ser1oo I defense bone! sales b1

d .. o~ln.,tlons and by months t hrOUGh 11..-.y 1942.

t~ Accor4ance vith your i.r!structiona , t he tlUached achedule i s bftte4 u-,.on the Aaau:rotlon thAt the aonthl.y aalea of Series 3 bonds vill !~<rta•o t rom th~ ~resent l evel to about $450 alll l on ln l~y 1942. It \"rt !\lrtber aaaumed t hat the 1ttereflte in the nuc'ber of 'Wlit.s ot each t rr.o:>!O'tion woul4 be untfor:ll fro:o JanUI\ry thrOUGh Y....- 1:)42 wen tba ilotrlbut!on vould A£<•• wtth the es tloate ClTen in ~ DODOraodum to you c!eted :>oco:~bor 24 . 19u1. On t ho bosh of &ctUI)l t nloa thrOUCh Dece::~'ber 23 , ~tcenber onleo v!ll mmroxl,.ate $300 mllllon. Soleo in Jonu.u)' vt ll

( undoub t edly fnll below thh figure . '!'he eotlmto of $200 oUHon f or Jnnunry , nlthoUGh only about t wo- tbirda of t he Doccobcr •~les i s apnroxi~tel;t double the actu._'ll ao.les Ln llovember.

I~ ahould be noted that 'he d!s trlbutlon by donomlnotioot depends lnr.;ely on the volUtle of total s ales . 1. e., t he lnrgor the volume of sa les t~e ._.re..:t.ter the probn~le proportion of t he amller deno~t1nst.1ona .


Koolh

7o6

711

2 ,2llo

1,700

Tebruaey }.375

llarch 5 .050

qrU 6,725

8,4oo

COPT

luaber of Uo1to b7 DaDoa1Dat1oo

October aa4 Wo.-..ber 1941 - .t..rtwr.1 llec•bor 1941 - lla;r 19112 - let1aate4

269 }82 65 62

257 }54 56 52

76o 1,020 152 128

535 670 100 80

851 878 105 82

1,168 1,085 110 85

1,484 1,292 115 88

1,100 1,500 120 90

24.5 CONFIDENTIAL

looue Pr1oe (1o •11110111)

1,484 fl2}

1,4}0 109

11,}00 }00

},085 200

5.291 262

7,1198 }25

9. 7oll }88

11,910 1150

-•


December 27, 1941

As a reault of ~ la7ing the law down to

Harold Graves thia morning, he sent the following

cable to all the State Administrator& and Chair-

man.

• ••••••••

246

'


TELEGRAM ()fl'ICIAL. BUSINESS-GOVERNMENT RATD

.Ul str.h Adllllniatr•ton and state Churatn•

~._~r:

''"* ottS oe of the S• or•t•!J

""'""" Dtftut Sulnp swt

The Secretu-y dtai reo U1at in n eeySt&te • drive be m.M ll:Dtdi atel1 t o aeoure ~opt1011 of p~oll ulobent pbn bf &11 ~lorera ill .CiTe hiiDilHd or _,, thio to be oomplete4 1f practiO&blt

b]. Jan1W7 t enth. Stop. It will be po11lble t o an contact with

all suo .. rirnt not &11'1~1 H&Ch.a on b&ela oi' o!U'dl tul'n1ahe4 tM State ;.d:'liniatntor b:y Internal Rnenue. St op. Contact should be

b7 vhit i! ponible, ot herviae by lette.r encloalng our d11oriptln ;l:lt:Uet IJld urcl tll doptlon o.t pl&n. Stop. Inaunnce UDderwrlttn an . .' other quallf1e4 voluntttrt thould bt uatd on thh :>reject to tba

fullut extent neotiii&J'1· Stop. \The 1'11'1111 emplo;ylng f in hlmdrt4

or DOre h&ve batn cnered, di'1Te ahould bo cont1nued u rapidl;r u lSSible to l:\cludt lllplO:yOI'I o£ 11101'1 th&n one hlmdJ'e4, ber;lnnlng

t he la.rg11t. Stop. On J.n1W7 ' ' ?', pleue eu\.Qlt to tbt

to the Zeorot.ry b:y dr -.n llat oi ~· of ul CO!ilpWIB 1n the

State w:1lch h•ve • greed t o adopt the pan, Ci Ting £01' I&Ch ODe tbt

add.ren and t:te approxlcatt totu Dllllber of e~:q~lo;e11 011 pi,Jl'oll.

Stop. This lht should incl ude 1'11'1:!1 prevlo111ly reported to ./iehl ntton hD~quartort. Stop. Si.lllllu lhh of !11'111 tubtequentq

IO'••!.llt t o adopt. plan ahould be aubml tted &lr l'l&ll t&Oh S&tur<lq until ?reJect h ca:~plettcl. St op. 'i'hla natter b urcont and ahould

ta::e prlorit] over all otMr acthltltt exceptlnc onll' the ccaplttl011 of local co::.ml. ttH Ol'ganiatlona ln lliOI'I pcpuloua t'CI!!I!!IJDI tltt. Stop. l okno11le4gt.

Dy direction of tM Seore\&J'11

!W!OIJ> 11. Gn.L VRS Aaalatant to the Secretar,r.


(

To Proo1don~o , Po4oral ftooorve B&Dtor

Boa t.on . u.. ... . New York, N. Y. Pbilodolphia, Pa. Cleveland, Ohio ftio'-or>d , Va. Atl&n~, a..

.... ····~·· tttl .. - -=1/ 1 ,/

.... '--

II[C 2 7 \MI

Ch1oa..,, Ill. St. Louh, llo. llinnoopoUo, lliDn. lt&noao C1t1, llo . Do.llaa, , .... San rrano1ooo , Call! •

:.!4A

•• .-..u .. ~...._ tM 1an et ~ ,,, .. • ..,. Movl .. ot

~1& ala l.a .,_ .,l.al• -a '-- a o.tftola\ ~ ot ._. .. a 'MMa

.. a.u ~ .. _.. .. , t11t,a&\l&a ._. h clut,a&\ot oOJI o\ \o \...t.aa\la

a\ .., U• oa loftbc .... , t• na llo..to ...._ \U oo,..Ul&• o\a\ocl --~

... 7"'" MH'IIJ •tMri .... M '"lcM\o .... -Uf)' ~ ........ ..,_.,._

llpJlJUI tor o.u toot,a&U•• _, ...,.. -liatl&ao ....... ,_ - ....U

'Ill 'r \M ...,..,,&. onr ,.,. ottiol&l olp&ftln ot tM _.._, • .., .t ..

J"oltoo\ ""S.. t...- (o) \M\ 1\ .,. • ._ a .,.,nU ..U.toooo\ ~ """

(\) \b\ u ..... u ........... - loftbc ........ (1) .... la ... _ ....

Nl b- ~la of aU ......... nqaiotU.~ (I) .... 17 wUII W.oo-r Obalal'o

'" ""' 5:JO ao rniMlf ()) --.17 wl• lao\....tloao """'S.. "' \r uonteoo l.a

""-•1&1 tor \M"M.ae .... '""' \Mrlet""" (II) 11o ".,...ute t• ..n.

et lh ottl-• """ -.pt.rMa 1.a Oo ... ....,, ,, ... """ &&lo ot .,. """' IIW

.. tro..., rlU la • .,. ....... ~ ..... u l.a .,.. ~· ' ,., ...

~\1 I I' o\ipoalatio• ollnl& llo ~I oot l.a .., lao._•


249

.,.. us Is'., ........ • u a e o .._,.. .-...,. ......

.. .,,_ • .._ tl "' tntr M * .. ,. US ¥Ills I b II ..

.-.rU. _. .. sea I II-,

.. ,_.. IHSiest .... a 3 9 a. .. ._. .... I 0 let ..... ..a1

........... 9a ... ••'•l A .. I 'ftll..._tl .....

Ita\.. .................. WI& ........ I 111 .. _...

.. ~ ... ,....................... ... .. ~ lllaa

__._,a ,., ......... ..._,..,. JJetrl._ .......... ...

.-..-a ....... ,.... ... , 1 .. , .... _._. •111a e as ' ....... " ~· .. ,_.1 .. ,.. ......... Jl ~···

t ._ . ... . -· ................. ", ............... -,.., ...... ._ .... .,r.._...u .............. _. ......... _ ... ..... ., .. el fll ..... - .... " •• rMI tt - ....

.... Ml .......... tl .. tlrlltiM' iJ JISillll ....... ....

.u .. -...u- ............... _. ..... 1 ,., .. _.

........ ,, ....................... ..._, .... .au ..

......................... , lkt

•1 A I I l$0 ... IIU M 5 rtell .. I Ill X J11 7'

..... Itt • I I 8 ......... I IS' .. I •• Pill ...... .....

ill JIG II I fill .. ,, • I I tell ..... IW .... ...

........ 1 ...

Ia 11 .,..., tt1e ,.alii e .. 11 a die I t •

.........Utrtl .. ,._tr~tiA 111 h« estr .. •=•rJIIIeMI• • tte w''rl"ll ._ .. u,.attw t1 ,... 1 trttwe .... ,. • 1 fill

...... ~

..... 11116 'll

-Regraded Unclassified

I.....

CounArn.t.lvo St.a\.eacnt o'! SA.lca 1Mr1nt; Fl rst Twenty-two Bu.elD••• 1lf\.y'5 of Dece:lber. :Jovu'ber N\4 October 1941

(Oct ober 1-25 , Nove=ber 1-23 , Decoaber 1-26) On Bas 1a o f I ssue Pr ice

(/.:I>OW1tO ln t hOWUUlM of dollo.ra}

.1mount of tncre.o.ae Percentage of lftcreaa• or Decrease !-l So lea or DecrMne (-l

Item December llo•omber December Jloyec.ber

December November October over over over oTer

November October Uovernber October

--· Serlo a E- Post Offices $ 82,799 $ }6.563 $ }4,205 $ 116,2,6 , 2.a58 126 . 5~ 6.9'~

Series II - l!anka 18},417 69,176 65.762 114,2 1 ~ 165.1 ...2.:!

Ser1ea 'i - cr-ota.l 266,215 1()5, 740 99.968 160,47~ 5.712 1~1.8 5·8

Serl" 'I - :Banks 25.925 18.051 18,5~ 7.87 479 }.6 - 2.6

Serloo G - Benko 126,1711 100 ,260 100,7 25.914 436 25.8 _:2

Total $418,}14 $224,0'j() $219 ,244 $194.264 $ 4,so6 86 . ~ 2.2'~

=

Dlvtaion of Res-i.;rcilinTii&Uotica. Dece<>ber 27 , 19111. Off ice of the Secretary of t he Treaoury,

source: All figures are deposita with the Treasurer of the Ubit od StRtea on ~ccount of yroceeds

of •~1eo of Unlt•d Stateo • ~vinao bonds . ltote: Ftgu.rea have been rounded to nearaot thousAnd and will not necetenr11y add. to totals.


Poot Office

Date l!OD4 S&loo

Serio• :1

Decellber 1941 1 • 2,976 2 1,229

~ 1,~10 2, 11

5 2,015 6 1,001

8 3,282 9 1, 828

10 1,651 11 1,909 12 2,773 13 2,767

15 7,185 16 2,11~ 17 11,16 18 5.382 19 ~.995 20 ,091

22 10,916

~~ 4.393 3.613

26 9.593

'lotal $82,799

u:n ~·.a=D :o-~ S..\vttto.s aCIQ)S

Da1~y Sa~ea - »-~ .. ber 1?41 On ~1• o~ lotue Price

( In t how"'nda ot doll4ra)

----ltN>k l!ond Seleo

Soriu :1 SerlH J' Sarles G 'i'otal

$ 3.9o4 $ 1,333 $ 7,220 $ 12 ,458 2,592 623 5. 750 8,964 2, 734 870 5,289 8,893 4,036 726 7.530 12,292 4,805 1,152 12,}57 18,314 2,293 656 2,776 5. 725

4, 764 1,011 ~, 810 9.aS5 3,877 601 .996 9. 75 ~, 566 491 2,612 6,668 • 763 719 3.423 8,905

5,012 658 3.768 9.437 5,0}0 584 2,120 7.734

11,679 1,022 4,1162 17.162 3.956 393 1,901 6.750 9. 750 1,180 6,}27

I 17,257

11,6}0 1,337 6,826 19,793 10,205 1,172 5,214 16,591 11,890 1,270 5,921 19,081

23,269 2,490 8,o67 33.826 10,642 1,972 6,8}1 19.445 13,085 1,629 8,900 23,613

29,934 3.536 10,076 43.547

$183,417 $ 25.925 $126,174 $3}5.515

All l!ond S&leo

Sorieo :iii Sorieo J' Series G 'lotal

$ 6,880 $ 1,333 $ 7,220 • 15,434 ~,821 623 5.750 10,193 ,244 g'fO 5,289 10,4o3

6,447 726 7.530 14, 703 6,820 1,152 12,357 20,}29 3.294 656 2,776 6,726

8,o46 1,011 ~, 810 12,866 5.706 601 .996 ll, 3o4 5,217 491 2,612 8,}20 6,672 719 3. 423 10,814 7.785 658 3.768 12,211 7.798 584 2,120 10,501

18,864 1,022 4,462 24,347 6,o6[ 893 1,901 8,863

1},91 1,180 6.327 21,421 17,012 1.337 6,826 25,175 16,201 1,172 5,214 22,586 15,981 1,270 5.921 2},172

34,185 2,'190 8,o67 44,742 15,035 1,972 6,8}1 23.8JS 16,698 1,629 8,900 27,226

39.527 }.536 10,076 5J,14o

$266,215 • 25,925 $126,174 $418,314

ortice of the Secretar)' of th e llreatUJ'7, D1Tbi01> of boearc:h aDd StathUco. Daceeer 27, 1~1.

Source • .U1 fi&Ul'•• are dopooits with t he Tr66surer ot the United St atoo on aecOW>t of p roceedo ot oaleo

ot United Stateo ••~ bondo. J'1cure• haft bee r01:UIIled to neareot t hou.oand and will not necena.rilf add to totalo .

• iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiliiiiiiiilliiiiiiiiiiiiiii~ Regraded Unclassified

..... ,.. w. '-'• ,_ tile h&-.1 ...... . 1oM at ... Terk, tu \lie ••fl'-\lel late ... \ltll at \IM -...~ et \IM tnw », ...,ua\lea tu tile ...... •Mel .._._ 17, 19111, oMwUc .. 1111r ille'NII '' ed at tiM ~\l .. -lre -' ,_.. __ ,, ., , ... hteftl ·- llak ., ... '""'· - tile-·_, *1 .................... .... flM ·t .

lDilltP-12/27/41

t

•


e 0 p f

(

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•

Docoabor 2b, 1941

COliJ'Itw;TLU.

Dear Mr. secretarr:

1 am encloa1ng our c~pilatioo for the vee~

out o! tho Br1t1oh implre and J~onc h occounto at thl•

bank and the meaoa by which the1e exp• nditurae were

financed.

Paith!ull r yours,

1•1 L· v. KJ>olto

z., V. J(J>oltO, Uco Prooid.ont.

The Honorable Henry Morgentb&u, Jr .• s ecre\arr ot t he ~reaaury ,

vaobiuct on, D. c.

bcloeure

253





)

l • Treasury Department 25? )iv!eion ot Wonetary Research

0 Da te .•• r.~~: ... g~ .. ~.?.~:\ 9

To: Uiss Chauncey

I don •t. t.hi nk 1 t 1a r.ecea-

sary to show these to the Socret.ary.

However, I have called t ho attention

of Ur, Bell to these cables .

H.o.w.

WR. lllii'I'B Branch 2058 - Room 214i

. .


CJ PlAin

Doeembrr 27 , 1941

FO?. Z'..-3 A:3A.3SAIXL':l. !he fol l or.1n'"' hat been r ece i ved

!rom Jesae Jones: G,.UCii'-E Re ferr ill!' t.o A.''"'bo.l t e.dor .• in&.'lt1 s

c,blegr e.u iourteentb , wil1 be £lt~U. to }Utvo f\1.11 !)Art icul~ra

au~reedeo Department1 s 5915 , Seven teenth.

DCA: lll!G: ILGS

Cow : l>J: ~10--42

bi/LL (?.i\G)

'


259 (

._.._.,,a,. •• MUCIII'

•· • .. aa

wau,.._.... ........ a' ....... · ,_, . ..,,a ,., ........................... 1 , .

, ........ SIMosl

•

'

(


UIU - ,, ...... • • • ' a • -. ••tZ'•• - .... If, 1,-

.. tnulllcr 116 • hut••• ...... tM ,_... ..._ ...... a... 1M- ..... u ...... ala'"""·, ....... u. ,_.., el _.. el

.., ........... ., ........ -... '-· M el - .... lriU I I'IJA'? ....... hllllt • ..._ le . Ia,

... ~ ..... ......,_ .. _ ... "' ...... ......,_ "- ... t) lr w-.

............. ,..., ! .... .....,.&£- ... "- .......

au. tl --- ............. ""' ... 'Tal .. _ ... ,., -.u . ..

tl ....... ....., • - .. ,.. .,.,.. ... --. . ...... tf ........

11-f, ... tlllttt lllall tltt - .. 'M ......,.J, UttMtl •UtMlt

wle.tn ,.,. .... e1 1 srtl .. _ let. " ' "- · u ,1 , eal -* antnl

u- •• ... ,.. ..._, """' r..-...•


c ' .s;

V~T~ a Oeeeaber ?.?, 1941, ? o.~.

Nt. , I tl 4'L

~ he ~•b~••r raters to the Deoertrent'• t8legraa

1 ~ . ~et , noon, d-\e6 t h@ ~4 th ot Ueoeaber.

.. ., , ... .

... vl

Tf'l . The t ollov1ne: \t tro01 A11 l er on behAlf of i'os

t or 1h~ Secr e t ar7 or the TreaaurJ.

•tth r eference t o tel~g..-~ ~o. ·~& , on Deoe~ber 15

: r. !"ox dep~~rhd tor [UJillllnF. '1' '11• wooe before the Arrlnl

of teleJrftm ~o. ~~ . &1nee t he 1? th of r ecember ve heY~

h~ O no defi nite neva ot Tftylor ~nd fre~e. ThAt the ~er1- \

csn colon7 1n BAnk Su\ldtnr, Kon~ ~onr , • ' unh•rmed hea

been reoorted 1ndl reo\1J. The t nrorm~tlon y\ Yen ••••r•1

dert AJ<O bJ the t.abtluJ ...,ul<l tend t o t-e " eonf1 nooJOUon

o r tM • re1)0rt . "then l<r, roa return• rrn,. ltUJ\¥flllnr he

v\11 e naver ot her r uettl o a \ n t he S: eoar1m•nt'• tale~


(

c . 0 p

03' l.:'J YOU

December 27 , 1941 .

S i r 1 Attention: :.1r. ~rank DJ.!t~

Ao au~ori•ed and roqueotod in your l s t te r

ot . .leeeaber 23 . 1$41, ve, a.e tiacal &~nt of the

1ill.l te4 States , cabled !:r.e Centrccl laNUc of Cill na on

tlectaber 2l. , 19~1, (';r~t1ng an extAna1on or tbe 8 1\-

ra.nce:ent for t he !f.>.rpooe of oupplyiD!: ~· l!e-"'bl1c

o! China with dollcr exenan~ aa outlined in our let-

te r of July 14, 1937 , a a amended .

\ie oncl os e 8 cop' of t"J.l" ceble~ar.l of ~-

eecber 24 , 1341, and a copy of t ho reply of ~~

Oontrto.l b&.llk of China , dAted ~ce.>ber 2€ , 1341, co,_

f1r:a1ng i ta e.graezent 1.0 t~ ext.ena1ou .

(Sie;Jl&d) D . ; • Case roo .

~ . J . Ce,.:3.eroo • . .a.n£a,er , ::•oraiOLl>e!]fl..rt~eut.

'lhe Honorable , The Secre t&.r~t o! t he i'reaaury , llatbint;toa, D. C.

CO)>)' :OC

1~29-lil

262


c 0 1'

T C 0 P T ----

OU'~GOI!lO C.&BU:~

ll.EC:i::·U!D 24,1941

!rile Cen ~ral llaU of Cbill&

Seoretnry Of tho 'rrOe«Ul')' hal authoriiOd Ul &I fitO&J. &sent

o! tha llni ~d Statoe to modJ.fr fur ther parasrapb 6 of our

lottor of Julr 14 , 1937 , ao modi.fiod, b~ clolot1n& 0 1lc>oombor

) l , 1941• wharner ouoh wordo and ti&Urtl aypoar in ouoh

par&SJ'&p:> ao mod1!1ed and inaortln& in U ou thereof •June

263

)0 , 1942" , l'leaoo e<>o!ino fO'OX ape:.ont to tuch :oditicaUon

of tba arr&J14Utnt.

Cop7:1o 12-29- 41


0 0 p

T

~

I!ICQUI!G CABIZGlUM

Deco~bor 27, 1941,

7eder&l Boeeroe Bank ot !lev York

!lev York

llo. 22

Your cabl e Uo . 19 We cont!ra.

'i'be Central lliU>lt of Cbi~~a.

264


e 0 p f

December 27, 1941

In repl7 r.ter to FP S4o.51 Prcten Oredito/4799

!be Secretary of State preoento bio ccap11aento to

tbe Honorable the secretary of the !raaeur.y &a4 tranaoito

herevit h a copy of &1r a&1l deopatch no. 142} of Dee .. ber

11> , 1941 frca the Aaeriean Jlabuoy at Oaraeeo, &a4 ito

265

four enc1ooareo, a tranelation of a note dated December

12, 1941 frao the ~roisn Minioter, ae ve11 ae a copy and

tranelat1on of tbe onc1ooure tberevltb (Official Gasette

Special xo. ;, Dec•ber 12, 1941), oont&1ninc the zeuureo

adopted by vanecuel& proh1b1UDC tbe tran.ter of aorchan-

4111, t'cmda et utera, &a4 vi\bdzpale tr .. credit 1not1-

:D>cloeur11

J'rCII Oaraue, no . 142}, December 16, 1941, Yith ellc1oturee.


2S6

liDo 142}

subjootl !rlollu1\t1JIC CapJ lAd t rual&UOil of luouUTt ~croo probl.bi\1DC t ho tr ... ttor of aorcballl!.ito , twl41, otc., lAd wUI>I!.ravalo frae credit iutitutoo b7 OOYtrutllto or uUOilalo of cou..trioo at war with loll Aaoriololl ution.

!llo Honorable

s1r1

t ho s oorotar.r ot State, Vaobl.DCton.

I ha•• t ho honor to rotor to tho Dopartaont•o Circular tologropbic iootrucUon ot DoCOlObor 7, 7 p .m. , and to m:r to10£1'UI lfo, 296 of ~c..,bor l2t b en tho abOYO mentioned ~bject, and to onolc oo a trano1atiop of a ooto dated Dooomber 12, 1941, from tho roro1CO )tiniotor oo well u a capy and tranolat1on ot tho onc1o~e tberowi t h (Official Oe.&otto Special 110.

5, December 12, 19111), containing tho a oaouroo adapted by VonO&uola •

• 1.1 cont~lahd 1n .t.rt1clo II ot t ho Docroo, i t llu nov boon annOilllcol!. 1o tho Official Oe.ootto of Deeoabor 1} , 19111 (Jo. 20669, poco 1}5,0}6) that tba M1n1ohr of J'inallco 1>u doloptol!. tho J&Dco Central ot vanu:v.olo aol!. tba -cioo of tho JaDCO ci8 Tonuuolo 1n tba interior to io~o tho porai h rtforrol!. t o 1n .t.rt1cloo 2 and 3 ot tho Juev.tho Docroo ot ~ccbor 1.2.

E.Dc1o~••• 1. Tranolation of Yoroicll Office noto. 2. Copy of Official o..•otto, Special IIO· 5· }. !ranolat ion of onclo~• ao. 2. 4. !ranolotion fr .. Official (le.&ott• ot

Doc .. bor 1}, 191!1.

151

JPf tw A true capJ of t ho • icn•l!. oriCinal-

rraoJ< p. corrtcao.


JIIClOIVI :IOo 1, \o J)eQ&Mia ]IO, 1~, tr• Qe •buq •• oar-.

J)irocUoa o.t :lcOAcalc Poliq ••• 50}1

IConoaic 810\iOG.

)(r. A»buoll4ora

287

I han tho hOGcr \c 1Dfora Tour :ll<Collouq ot tho rocoip\ o.t 7our

uh••4 :loh lfo, 5116, ot \he S\h o.t \hie aon\h, u ... u u ot tho -

rOAdml o.t J)ec•ber 9, COACenUII& tho ...u IIPJilicable tor pr*YIIItiJoc tho

\ran .tor or v1 \lwlzawal ot tu4o bel.CII&iJoc t o \ho ;..,....,, OcT..._\ or

oabJocto, pon4111& the oo\abliohaont o.t a c ... on polic7 oonoorni~~& thio

ao\\ar.

In replT 1 • &1M \o oend to Tour :ll<Collocr, attached hereto , a

cop)' of tho :r.ucuun J)ecrao o.t J)ec•b•r 12, 1941, liJ which are prohibUed

tho exportation of aorchan41oo or oocuritioo and \ho roaiooion or tranator

o.t flm4a to tho torrUor'7 of tho otatoo a\ war with 11q .t.aorican uU011,

or OCC"Qp114 liJ thea, or which are 4ootino4 or coooipod to uUoulo o.t

ouch otaht, whatft'or - be the place where \he bonofiOi&r"T or coooipoo

roo14oo.

IT the -• docrH ar• aloo prohilli ted the v1 \lldzawal tr• cro41 t

1notUu\oo oot~liahad in Tononol.a, t'cul4a or oocuri Uoo bi10JIC;1llc to, or

in which thoro 11 an inttrll\ , o.t \he OcTtrulllh or \he uUOAalo o.t

otatoo a\ war wi\h ea .t.aorio.n nation, or poroono or ... titioo 4oaic1114

or rooidon\ in urritorill occupied bT IIUCll o\aht.


-a-

1 .•aU ,q..U wl ~· appwwaU~ \a nuw .. tov -.u- t.M

auoraao•• w1 11111 JU&bl•' ooul&RaUea.

~aeloove.

to 111 ll<Oill eoaq rrllllk p . Corrlpa,

.&a-......aor D\raoll41ul7 M4 Plealpo\eoUeq wl \lie

( •l.cM4) o. ~ena.

Qal\M. S'&hl wl .&aerloa. ·-·

•

..


!rlWISLUIOii l'BOll omom aAZmTJ: or 'l!llll llliiTliD

SU58 or~. SPIOIJ.L 1ro. 5,

llocaber 12, 1941

Pruidan\ ot \he T11>1hd. statu ot Ten01uel&.

269

A et&te ot war oxiete botweon ~erican Ropublice and. non-American

( · Statet, which attoctt the political and economic interoato or the vholo

(

Cont inent and. daando tho adoption of •oaourot tor tho dotonto and tho

ooour1t7 ot the 11at1on; in aecordanco with Rooolution rf adopted in tho

Second MootiD& ot roroicD lliJliotert ot tho Amer ican Republica;

ln tho woo ot attrilolte 23 ot .t.rticlo 100 ot tho Jaticn&l coutitu

Uon; in cootormit7 vi\h .t.rUcle 36 and. ut t he tiro\ nuau&l ot pancroph

2 ot JWaer&l 13 ot .t.rUclo 15 or tho aa14 conotitution, with \ho C&binot

in 00WIC1ll

OX(JRJUa

.t.rUole 1. ~ho a:urciu of ind.1T14n&l I'JA'"aAhot apocitiod in

n1111or&lt 2, 8, and 9 ot .a.rUcle )2 ot tho )lation&l ConeUt uUon io re

otriohcl thrOIIPout tho torritorT ot t ho JepubUo in tho hno ot tho

proun t llOeroo.

.t.rtiolo 2. tbo ezportation ot aorobtaclioo or ooouritioo and tho

tran•luion ot r•lttancoo, d.rath, or aon.q tranotero 1o prohl.bitod. t o


270

-·-1\M• a' wr vi~ 1a7 .a-u. DU• er .....,w 1ir au. er 'IIIWIIl llitlat

M l.a~ tor er o=dp·l .. IIMa.lo ot - atatoo *'- tM

plaH ~· 'M ot tM ..__, -s.- er WUS., ot - >lllrM,

d.Hth, troaetoro or r&u-.

Ia .U oaao ot ..-no, lrotll, •raot•o or r•ll'- .. , -•II

liT .U proii1'111U• Nfenef. to l.a Wo 8ftlelo 'lod ~ .. 1Uoa111 t•

will loo rl9'1re4 •

..

.An10lo ). nt.~oa• oUet•••1 a poalt troa .u ~ ._u.,. u.

wl~ ot hM.o troa =H•1 oal ..ap -·•· .U IIOTial ot ..U

eccoaa\o MI. tiM wi\lllr.-1 ot arlleloo • Upool' 01' •-rlUoo ....

cu'oq ll prollilll W tr• M6 l.aoU "'U• ot orlll i oo,aliUIIMI l.a

Y••lllela Wla 'Ml_, .., ldJoot to iM II'Mr ot or 1.a '*loll - lo •

1.&, ..... , ot ~ '"-" 01' II&Uoull ot ........ - w1~ _, .-u-

oou.V7 or ot , ....... or .. uuao UaloUo& or rooluai l.a tottltorlao

OOIIO!iP1e4 1ir ..........

!1M ~ _..un, fer lloo JiUJIIII ot Initio~~ a ,..U•U• ot

aana1 .u ~u-t• •••'• ••lrt,lao ... era• .u oaU ,.Cll. •

.U l'ICLUI' ot .U ro .... Uft l.aoU"'U_, lllllol> olloul4 ..a ~ Jllr

-lo prortUI ~ ,., •• o..uu ........ ,

a) !alai~~ fll ..-,_.,_.......to •••"*• aaUoaal.o f11 1'-'" M - w1U a _.l_ ~at1• troa _.., 1.&\ort-.

o.pl-i er MU'IiQ 1.a lloo •iapftll M .U arUot' pottllllt -··


- }-

buliuttl cooaidered e.e non:tal for the enterprite. or to epec1al operation•

properly Juo~i.fiedl

c) Tb4.t the beneticiaey bindo h111oelt to afford all to.c111t1eo tut

the l'tdtral Xxeeu.tiYe 1Q3 deem neceaaary in order to 1napect the oper ....

Uono proporly.

d) AI>¥ other formal.Uy or requ1ro .. nt vhieh tho federal EU<:U•1n

,...- call tor t..rougA the hliU&IIet ot ~eeutho Ord.ro •

.Uticlo 4. •me pemUo roforrK to ill thh Docroo v1ll be grctod

tur- t bo Millhtry ot Jiacionde, vhich mq, thro\ICh tho iuuanee of

opooial ordoro , delegat e th.ia function to tho Banco Central de VOIIesuela

and to utner ent1tiea w~ich it Q8¥ deeg proper to chooee; and i t mAT alto

eatoblion roguletione anci 1'ormelit1oo for t ho fW>ctioning of t hia aorvice.

!hro~ ordoro and opecial illo~ruc~iono of the rederal ExeeutiYo a

11at ot peraoaa or entit1ea included in the rtatrlctlone vAich ~~ Decree

eetabl1abea .., be drawn up; and ~~ necttl&r7 aeeeurea will be edopt~

entitioo to t ho end tut their actiYitioo DaJ not bo exareioed ill a canner

det rimental to the 4&t1onal or continental aaeurlty or aeon~.

Ar~icle 5· Banko, credit illoti~utiooo and bouooo authorized ~o ro

ce1Yo dopooito , ootabliohed ill the cowo~ry , muo~ declare ~o ~he Mioiotry

of l!acionda, vithin the max1mu11 period of tiftoon ~·· oOW>ting from ~ho publication of the present Decree. tbe account•. &111\1 and funds referred

to in Articloo 2 and } of thi s Decree.

Azt1cle o . Infractions 8b&inlt the pro~iliODI o! the preaent Decree


c

-a.-

rill 'bo peul1ae4 wUh tlua 1apoae4 1;' \he Mlaia\17 ot JIA011114.o ot ..,,

uoe \Ilea oao bu4re4 'boUYV .. uA ao\ 1a ozoooe ot \ho _, ot \1M

opor aU011 wUh rupeo\ \o whicll u latraoUo" haa 11- o~Ue4.

J.r\iob 7. !ha proaa..\ :DeerH U.1 ao\ offiCI\ 1a U¥ wq \ho pro

'1'111""1 ot \ha oziaUac ])eCiraea CODCeniAC ro1\rioU01>1 oa \he -.:1M

ot ~\1\a\loaal cmar-a\aoa.

J,rUCil.l 1. !he 1Ua11\er ot :toro141> J.alaUou ae4 ot I!Mi..U ""

1opooiallT cllarp4 wi\h \1M -uea ot \he prMoa\ ])eCirao.

IooaH. 11po4, aeelocl. wi\h \he IMl ot \he h4orolJD=Un od

~oa~>hro1p.ocl. '117 \ho M1a11\ar1 ot \he ~\i'ro Jroaeh 1a \ho J'ocl.arol

Polaol 1a car- ea \he olnoa\ll U:t ot \ llo .. ,\A ot :ooc•llar aiao\o•

bw>.drocl. ton:r-o~>o . 132114 nar ot Xl~Uplll4.ol>oo &104 83r4 ot :re4orauea.


(

273

Jlli)!OOVa Jo, II to »-opa\ch Jo. 1112), :O.C•'bn 16, 19111, troa ~ Jlo'buq

a\ Caraou

lWII s!III or nw.urOJ

1J111ta4 Staht of VaDtiU1& - M1n1otry of 11&01.,.4& (:1'1uoca ) -Dhhlon ot kODoaJ a..cl. J'lD&Dee.

C&Z'&CU, __ , ... 1), 19111. 1}2Jicl. ao4 S}rcl..

USOLYIDI

ID axarc1to ot tho adhorU7 <>oDforrad upon thlo M1n1otry 1D arl1ola

4 ot I!UcullTa »-croa dated »-••'bar U, 1941, tha Pr .. 1dant ot the 1JI11\acl.

S\a\et of l'enosuola hu deerood that tha J&eco Oo~ttral do yonosua1a 'ba

dolacatod to cra..t panoito ratarred to 1D &Z'Uo1at 2 ao4 } of tha 0&14

Docroo ad alto the 'br&Dchat or agooo1to of tho ~&eoo do Vooosuola loeahd

1D th& 1Dhr1or of the !lapoo'bllc. !ha - poN1t appl1<>at10D u:r ,.., 'be

aaoUonecl.. tho ~~q~or1Dto»•cq of BaA~<• 1o lU:ovloo charca4 vl\h tho 11!.-

0Pto\1on ao4 c<>Dtrol ot operat1ooo ot th& ontorpr11tt or tDt1\1oo ratarracl.

t o 1D tha lut peracraph ot &Z'tlcla 4 of aa14 »-erao, which tuDcUooo _,,

'be uorchad 1D accorcl.aoc• v1 \h tho aaooluUono aod fPtC1al 1utrucUou

Chao 'by tha Ja4oral :mucuUTa. Othar orcan1u\1ono or onUUoo u:r 'ba

ll.kavha daol.patecl UDder o~ato !ltoolutiono aod tha7 U¥ 'bo o1a1l&Z'l7

dalaptad, thould the Jadaral )IDcuUn u• 1t OODTWOD\, to g&Dt per-

a1to ao4 oxero1oa oODtrol.

to 'bo o-.r.alcatecl ao4 pW>lhhed.

Jor t he h4aral RDcuUn1

CopJ:TW:lZ-}0-41


c

c 0 I' T

DIPAI!lllll! OJ' SUD

USIIIIO!Oll

lle-ber 27 , 1!)41

rep]1 rotor t o &40,51 frOIIll Crod.Uo/4826

!bo Socrot ar,r of Stato prooento h1o cn~1t.onto to

tho Bonoral>l~ the S.cret ar.r of tl>e !ro........,. &ll4 tr&DAito

horovith a COP'I of air 11&11 doopatch ao. }14} of Deco

ber 18, 1941 froa the JJ>orican lool>&n:r at BallaD&, &ll4 1 h

enclooureo , " cl1pp111& &ll4 tr&Dol&UoD thoroof troa tho

Official O.soth llo, n6 of Decoaber 16, 1941, CODtclDiDC

a doCl'OI 11.0, }}66 by >Ohich thO Ou'bllll 0oYo ..... Dt proh1'b1h

reait t&Dco o of fund• to countries vith which it 1o at

war &ll4 to thon >Ohich r utrict ~h to O..ba.

!nc1o.,....,

hoa Ba'b- DO, }143, De-ber 111, 1941, vi th nclolllrl••

274


0 0 .,

T

lo. 31113

.ua MAIL

S,.b.)IOtl

l!a'bazla, Deceaber Ul , 1941

(Oub&ll 0o'rU-at proll1'b1h na1U&IIO .. of (tuade to cou.atrhe vitb vh1oh 1t 1o at war (& tc tboee ..,1ch l:'oetr1ct }M1Mah to C,.ba

"Jle KoDOnble

Valh~ 11, D. c.

I have tbe hoDOr to 111cloee a cop)' and tnoel._ t1on of Cuba:> Decree llo. 3366, 4ah4 Deceaber 15, 1941, proanlpte4 1a ottic1ol Oasette J;o. 716 of Dec .. ber 16, 1941, which pr ohib1h tl>e aJ;portaUo.n ot •ac• of ~nt of all ldDAe to cou.atr1 .. at vor v1tll Cuba or which have reetr1cte4 t he payment of credit• .,._ longint to CUb&ne or ree14~te of Cubn.

!be decree under l:'lfennce coaple•nh U!at pert of Decree Bo , 3343 of Deceaber 12, 1941, of vh1cll a copr and tranllatlon wn ucloeed w1tb the :labu•r'• air •11 deepatoh llo. 3119 of Dice ... ber 16, 19"1, and vhicll froae all tlu>de 1n Cuba .,._ looc1D& to ene~ alieno. In add1 t1on, hovner, 1t probib1h t he u;portaUon of all ..... , ot pa:IJI'Int to COWitr1 .. ..,ioh lapoM r .. tr1ct1onl 011 p~ntl to C,.ba, In thl• nepect the decree 11 larcel.J' a r._ peUUoa of a bill inti:'Odnced 1a tl>e Cub&D CoD&ftU earl)' thh 7ear and of vbich a tranllaUoll vu e .. bodied 111 tbe t.bae or '• report Ro. 77 of Pobruar)' 27, 1941, eaUtlod "PI:'Dpo"d Eetablllh•nt ot EI.

ch&ll&' Conti:'Ol lleaiUI:'OI in O..ba •, .I.e """ Mnt1oned 111 tbe coat1deatiol eecUon of r eport !lo. 77, U!h

.. .....,. 11 d1reotld IIGI&iaot Spain, IOI!len Cuban •• porhro, oepec1ell)' of tobtcco and to\ac40 producte, haft ! r olla cred1.h ..,ich at the ti"" tbe r~?Crt vu vr1\ten, wre .. u .. te4 to totel $2,000,000.

!be DeportMnt' • a\\eat1on 11 iadted t o tbe

"coDA ~ ot .t.rticl• III of Dione Ro, 3366,

275


- 2 -

which pro'l'iuo \hat ell finlo or ill4J:ridualo rolllitUa.c t\Uidl ~broad or recoinnc reaithncoo froa abroad wot iA a ovorn ot~tea;ont uclaro tbo 114ture o.o! object of ouch relllit\anceo. ~h part1culu provioion of the decree vao aloo i ncludod in tho bill do ooribed ~n the E!llbato:r'• report l!o. 77, alld vae the eub ,1oot of t he J'cbaoo:~' • confidential air mail d .. -pc.tch lfo. 1661 of l'ebru&ey 2l! , 1941. At that t1""' Jtr. Edu.a.rdo llu,rruth:y, ttte Director General of St l\tiltico of t he Ou.btn lliniatey of Finance , ~uured the J'cbaeay t hat the requioite in quaetion vould not reoult in &~~7 dolaya or co~licationa in financial operation• el!. th"t the ut~ obtUDed YOuld bo uced pricaril:y for at~tiat1ca'l purpoaaa,

• One of the le,.ding local Aruli CI!D b.W..ro, v1 th whoa t h ia poiAt vao cUacuuod, 1nforMd t ho Co-rciol Attache that iA bil o;>Won t he prepuation of tho ..,orn ata teconta pronde4 for in Decraa lio, }}66 would conotituto no undue burden on thooe ralllittia.c !undo to the United Stat .. or recoi'r111C funda f...,. th .. t countey, Moreover, under exiot ing war conditione, tho Eebaaoy doeo not feel thgt an:r objection• could proporl:r bo raiaed to thia require~~~ent u the Cuban OoTernment ia doubt leaal.Y juoU!ied in adoyting ouch 110ooure e ao 1t ma:r deem adequate to aatogue.rd ~.t:Aino t pooaibll reeitt aneeo of !undo to undeairable deotinationa.

276

Reapeetful].y :youra, A t rua copy of the aigned original

l:ncloaurea: G!ORG~ S.

1, Jroa Official Qesette lio. 716, !leee,iber 16, 1§41

2. i'ranalation thereof

l'ile llo. 851 J.PU/ed

Cop:" o c al2.-}0-41

KEsSE!!Slam


(ha.,.laUoll) Doer .. llo. }366, Offici~ O.Cotto ,

Decoll)er 16, 1941.

~~· eo ... r ci&l relatione bl tvoon Cuba and oneral other countrioo are prooontl¥ oubjoot to di!fieultioo arioing froa tho i nterTtntion of tho State in the 110notc.ry &nd credit o:votemo of thooo OOW>tr i u ,

\.l!ll!USI I n •iov of t l>h oit'll&tlon, under llbic:h ct tho preoont t i me ~ citiaono ADd rooidoct o of ~ba fiD4 t1>oa .. l .,.o oubjoct to roatricU ou in coiUloction with the collection of leaiti&ato cro41to lillie!> t b.,. h&TO acainot ent1t1oa or 1D41Tidulo in tho notiono llbich follow thh precUco, tbo Go.,..,...,, of Cuba _,.t edopt naa.ourea to pro~ct thea ao edl (lll&ttl:r && poooiblo a.nd Y.>icl> conaht of reciproc~ ""...ur•• probibiUDG or roatrictiJIG ezporto of cap1t~, mono;r, or cred1ta to tho•• countr1ea.

loctRIAS 1 Onder the autl>orit:v contarrt4 upon :no b:r tho Conatit~tion ~ b;r the lav of Juno S, 1939, ~t tbe propoa~ of the MiDietr:r of Jinanco and upon tho approve~ of ths C&bi not ,

I BESOL Vlli 1

Jtrot1 to probibit the ezportation of all kiDde of 1101117, credito, cepituo, or .,. .... , of p&TOOOnt of an:r ldn4, -.bother b:r aea.no of their ~lieu extraction f r o,. the territor;r of tl>e Jlel>ublic, or -.bother b;r MIUll of tranotoro, drafts, or an:r other fina.nc1&l opara<ion ;iooti.nod to that end to tho co=trioo llbicb a.ro at var with C,.ba or which haft r e otrictod tho pa:raant of cre4ito beloDCiiiC to C,.b31ll or relidonto of C..ba.

StcoD41 To authoril• the lliDiotlr of JlinanCO to natabl ioh reciprocal reotric t1ono on tho ozportaticna of Mtnl of pa:v-nt ~tontioned in tho precod~ parauaph to notione at var with C..ba or vbicb h&TI 6atabl1obod ~ kind of rutrictiono on tho cir~at1on of their oapU~o or aoa.no of p~nt to Cuba,

~irdl 'lo prob1b1t the v1tb4rc.vllol of tunda, 01curit1u and other proportJ froa t ho banl<t 1n 'IIIlich tho;r are 4.oUed b;r naUoula of coW>trl"" at var vi \11

Cub ..


J.zq 11&\v,r al o r ,....i41c ~roon ncebinc or rtaHtinc fW>4e, cndih, or eAT oU.er M al1e of J)IQ'Mnt to or froa "broa4 ... , oot fo..U., by .. .,. of a avorn daolaration, t bo purpoao , character, canoe, 11114 objaot of oaid fina11-cial opera tion,

Pourthr fo author i ze the Mi ntator of finance to iiiUA t he noceooar:r r oaolutiona in order t o roCQlate f}ld to inaure CO!Ipli&l1Ct vith tho proThiou of thh ~oree.

tho banka vi thin a period of not 110ft than f ort:reill>t houra vill intora the Ninhttr of Pi1111!1eo of t ho !Undo, eecv.ritioa, 11114 other pro~rUoo roferr a4 to in tho Doird Article of thio Decr11 , aD4 vill l1kovil0 l\lbai t a report vi thin thct period on the cuh oper.,. Uo111 11114 on tho depoai h 11114 vi tl:dr......,a aado by natural o r juridic peroono fl·oa Dleosbor 7 to date.

Pitthr '!!bolO Tiolatioc the prorlliono of thio Decree v ill be liable to the pebaltioo eatabUoh•d b7 tho lav of June S, 19}9.

Sixth& Tho ~Unioter of Piii&DOt h ehar&'ld vith t ho appli cation and fulfi llment of tho prorloiono of thio Decree, vhich vill become effective u~on ito promul~ &ation in t ho OffiCial Galot to of t ho Republi c .

Si~~>•d at tho Proa1dant1tJ. Palaeo in Rabana, Deco ... bor 15, 1941.

C...1ot SaladrJ.cal, Frae Miniattr,

Oaoar Garci a Montoa, Miniator of finance .

2?8


c 0

p y

IEPAP.l'!.Z~:wr or sv.u liASEII:GTON

December 27 , 1941

In reFly refer to y: s«J. ~1 r roron Crodito/4792

!ho Secr etory of St&to prooonto bio co:p11oents

to t he Honorable the Socrotazy of t ho Trouc.ry and

tranocits herewith a co~ of air .. 11 4oopotch no. 1E98

of Docogber 10, 1941 fro:o tho Acoricen Leption at

'rosucig.Upn, and ito enclosure , " photootat cow of

Cir cular No. 37 of t he ~iniotry of Finance , quoting

the prov1a1ona of Executive Order Uo. 466 of December 9 ,

1941, oetting forth tho f roo•ins control oecaureo over

Jnran••• fundo and erocUto in l!ondur&o.

Enelooure:

Fro:> 'rogue ipl. pa , no. 1698, Dececbor 10, 1941, with e ocloaure .


(

(

c

t o. 1698

SubJect: !ralm>!tt~ Cop, ot llollduran Proulac Control RognL.tloco •

• ~ho Honorable

!be Secretary of St.a t e,

Slr1

•JO · 1 ...... "") L:

I baTe the honor to refer to the Depe.rtM:Dt' 1 clreular tele

cna of Deceaber 8 , 6 P.•·' end to t ftcloae 011.1 cow of the :U.c:-4tin

Ord.ar Wo. 466 or De-ce.aber 9, 1941, aettiac forth the treesitlg control

meuuret o••r Jape.neae funda and credit& in Honduru.

It will be obeerved that the free&tnc order a~llee to

coamerc1al ae;ente and c reditors, e..e well u b&nb: all auch firma

or J)lraont IIU.It repor·t their holdings or the obl1p.ttona due theD

OD behal! of Ja:pe..neae 1ntereata before December 13, 1941. AI aoon

u t h 111 4ata h&Ye been eoap1le4 'Qy the authorttill here, the Le~

Sloco the llonomnn l::telwlv Control Comloolon 1o """ pr<lhlbtteli

f1'o11 reltutoc ezr:t fUDd8: on behall of Japenltt f trsa or persons,

t b.ere 1t no d.aJ:lie:r of erq tubTenin uet of the J6J)&nllt 4apoaits 1D

th!o countey.

P..aapecU''Ullt your• .

John J). li:rwlo

J:ncloouro• (lo • lllel• cow) Cli'Cillar llo. 31 of tho lllnlotey of J't nanc•. ~u.o\lac the pro

Ylo1ono of J:xecutln ONor !lo. 466 of lllcoa~r 9. 1941.

Coplot tol Aaor l c&A nco Consuil ,.t Lo. Coiba _.,4 l'llarto Cor t oo.

J'U o ro. 8&1. !DGtjJL

J. \rno cow or the •lclo•li ortc14al• AJL

Copr:bJtl3-30-41 Regraded Unclassified

e~..........,.... ,, J.-t • .~ t6'fS~ '" """''- t...AV"--...- -JA,.. ...

.f~'-1 .... SECRETARIA D E HACIENDA. CREDITO

281

PU6t.ICO Y COMERCIO

Iff PUBliCA 0£ HON Ou -.,t. S

Teguclgolpo , D. C . , ~ <ie dlc l onb1•e d~ l t41.

Para au Ct"'loC'C~-1- ~. to y •'.u •. •o• eo 1· 1 t • .... v "" ~ no .. u J: . u:: , ~ r f'\.J -

crlho :.. Ud . ul oc·•~ :"rlo qoo d ! co :

"sr:CR·:'. ARIA flL: 'tA':l r:· n..A , Ca1.LI':'O r'll' .. d.~:cc ' c:::~R.t~ i r; . - 'l " t.r r .. Tegueig~lp:l, L. C., 9 do dlc!embro do 1041.-Cc:•:. : !!i.:;l/,:H;i) ; q.,: o> l d in ce oye r .)). Con<:;1·o so ::oclonAl dor.ro t6 el :::~ ta1o oa Guorra ont>•e Hou<l urus y El J a p6n )', como consucu.:>ncla do 6 ste , ol ostado du a1t1o en la :tnpC!bllen; y- COUSI:i.;RA<'DO:quo cooo una modlda do clvf'-.nsa naclot>Ol es neceMrl o Gt•o ol Goblarno o j or za control snl>r~ rondos q uo o::i3t~n en loo .. :.·1 · cos dol pn!s y alcu:1u.s a ..- :.:;oucina eot:'lorcln\I.)S , !).:rt~nuc1en· tes o personAs n">~ltralo:> o Juridlcas do nacionolldad japonosa,-- POR TA~T.) :- >l ?rosl<!Onto d o ln !lopCih l1cn- AC'.r.:ROA:-10.-A parti r d? >~to rocha y olon ~ros eubs1"t~ cl ost6~o do guorra olltro !ion.,ul·ns 7 El Ju:>6n , ql.>3dun 1'1n~v1lo• o c?n· celados todos los f'O'l<IO s '>X1stont..J3 I&&UtO v l d t:> do hoy y quo en lo sucJsiv~ oJxist1~ron , o>n p~.r d o lao lnst1 tuc l onos d~ cr6<!1to y n:;u.lci o s comorclOl..J s ostobloc1dos on ul pais, port~ncc1~n~J~ u p~rsonos naturolos o jur1<1 1cos do noc1onnl1do~ j uoolloan.- 2 Q,-Lao 1not1tuo1onos d e cr6ulto y ogone1as comoro1ulos quo t a"8on on su pod .J r r ondo s compNndidoe on el articulo ontor1or, dob •rAn d~el ororlos o 10 3Jerotor1o d o J'oc1oMo d . ntr o do ( J) tr.) • di"' o eontn,• c:l.o vs ta tocbo, y u l O.lt1r.~o dio hdbil do co<.lo m·•• de.,., r dn .. nvior un e stodo d<. tol : a t oncSoa n la Soerotorio m~ncionad:l. - J•.Loa r opruso>ntontoa l oaalo s quo o>n c umpliniunto d~ su mononto hAyon porc1b1do to~os provon1ont~ a d o cobr os " v cuolqui~r nAtur:lloan portonoc1ontos 11 p•r~onos n~turnl,)s o juridlctla d o nao1ont:l1dad jGpono3o, d"~Nrdn doelG r cl·los u l u Soorotnrin d e lltJc l >JncSO dout;ro tlol tlrmlno aon:> lkc!o on ol articulo quo antoo ad v y dupos1tQrlos on ul m1s~o pl~zo "" uno dol loa bonooa d>Jl p:>is, con cr.Sdito o aus mtuldc.t:~ r1oo.-4t,-Lo Com1a16n do Oontrol du Combioo Inturnoo1onnlus y Eat ob1U.aoo16n dol Slatumo llonotar1o no o.utorU:ord d.n11:>ndos do oaabl o que hoyon d o oul>rlrsJ con loa f'oudoa m•mc1onodoa on oato ueu ... rdo, --s•.-s 1, nc1o ostto d1svoaio16n una mcdl"o d ·l


282

SECRETARIA OE HACIENDA. CREOITO PUBLICO Y COMERC IO

Rl.P UBt.-ICA Or H 0 N CUIIIIAI

Teguc i ga lpa , 0. c.,

- 2 -

t'efonsa , s u v .\.o)&c i6n stu·4 J'\Z:ada ror l os Tr ibunales iUl! · tR rea :: ~n!l.Ja coJU'o:"::>e a lou leye a de 1a a 11 teria . -cc.:.!IJiii " 'ro..SE . -<; t~'l i~S A. - .::1 Soc:·otr.. r 1n de I!sted" on el Deapecho d e ·:ac1enola , Cr~O:.lto Xl!JHco y Como:oc1o, - -JULIO LOZA:IO h . - •

APV.

•.•• \ D• Cd . eten t o y s . S . ,' , ... ~.w., • \ ' • i f' ( '\ \ \.,_;~ ~<.) ~\ · ( -"' f · -'M.i o to~i?r) h . \•.',.' v . ~· >-- "'\


c 0 p . y

In repl1 refer to Ff 840. 51 Froaon Credit a/4824

December 2'1 , 1941

The Secretary of State preae.nta hie compll.menta t o

tho Honorable the Secretary of the !reaauey and tranam1ta

bare,ith a cow of air ,...n @apo.teh no. 378 of Dece,...

her 11, 1941 froa the Acerican lsbaaay at Uonto•ideo,

and ita ancloaures, a cow and t he l~liah tranalat1on

of a decree p1bl1ohed in La ~ of De camber lC, 1941,

prohibiting finaneial and other trade tranaaetions on

the pert of Japanese nationals and ent1t1oa.

Inclosure:

l"rOID KonteT1deo, no. 378. Deeeaber 11, 1941 , with encloaure•·


:llll!oi.SST a7 !BI lli/IDD StiUS Ol .&KIIU~

llOII!I:TilliO, llliiJGUAI

)lo. 3'78 llODtiYidoO, Urucu-r, lloohblr ll, 19U,

SubJect! Decree J'roed~~g J'apaaeoe J'un4o aD4 !rsnaactiona in Ul"IJ&Uqo

llr .liil II.UL L!.!. Y IllG IIOii"U""'f Illi""'O ISO 13 19U

!ho Boaol'ab1e

!bo Secretary of Stat e,

Waohillgton.

Sir I

284

1/ 11th reference to oq telegrBlO llo. &32 of December 10, I ban

2/ tlw boaor t o onc1ooo tho text, togotber dtb a tranalatioa 1D ll~~gUob,

of a 4.ocroo of Doeoaber 9, ao it..,.. pu.'bl1olw4 1D ~~of lloce.

blr 10, pi'Ohi'biiiQC fiDaDcW aD4 other ,,._. tranaaetiooo on tlw

part of JapoDO•• national• ao4 eat1t 1eo.

11111&11 Daooa.

SO I Mil

lao1oouroll lfo. 1- !ext of 4ooroo ao pu.'b11ohl4 lfo. ~ fraoolation 111 ll.ng111h

A true cow of tlw otc;ne4 orl&inal· ""'

COFJI'bJ1~30-61


IDGJ.oeure lo. 2 Deo:patch lo. 378 De-ller U, 1941, I.Mricu k'buq lloDtnt•o, Uroca.

IIICllEI 07 !111 UICU'ftn JQ'1J

!be lucutift Power thrCJU&h t ho llillbt1'7 of llac1o"" 1o tho followl.n& Ucr111 """

285

1D Tift of tho otato of war ubtl.n& lletwoon tho UDihd statoo of .Uorioa &Dd tho lmpiro of Ja:paD aDd the ool14arit:y which hae .,..., declared wi\h tho euHoood .U.ric&D State, &Dd ill accordiUico with tho pr1Dcipl .. proclaiMd 1v' tho Lla &D4 ilaftD& collftDtlODO tho ProoldoDt of tho llepll'bUc ucrHOI '

.t.rtlclo !-2here 1o prahi'bltod 1111tU fUrther ora.r tho tru81'or of tuna. a'broa4 ill &eDOral, ia 41roct or 1D41roct foN, or for wha-r pllrpCOo , ill faTOr of Japaceao poroooo or llltitioo. 1'ho proooDt -hi'bltloo lo oxtolldad to tho export of DOrch&o4ioo acd tho traco1'er of 'bo..U or oocuritioo of what .... r D&turo •

.t.rticlo ~lltwwioo there 1o ouapo..Ud uotil tu.rthor order traDeactlono 1n U"'CUI!Tal> or foreill' liODe:y which ..,. 1aplT or orlcilllto Ubi to 1n accouoto alread,y opeDod or which _, lie opollld ill tho - of Japacooo perooDO or ontltioo •

.t.rticlo ~itlod 'bonks are author1ud to e&rr'7 on •rch•np traooactiono , to ooll exchange for tho curronoioo ill which ~ haft 'boon 4r...., 4ratto origillltillg 1n Ja:paD or froa Japacooo fiNO in geueral with tho oolo purpooo of cancelll.n& the ·- ao roopeoto tho debtor. 1'ho corroopoll41n& oottlemento will lie offocto4 at tho ratoo which tho !aDk of tho OrlODtal llepll'blic of Urucuq ohaU fix &Dd tho 'banko ohall col.loct tho roopectlft ...,unto, hol41n& in ouapenoo tho roopoctl,.. ro1a'bur .. -DODh al>d upooltl.n& thooo aaow>to ill tho llo.Dk of tho OrioDtal bpll>lic of U l"'IC'UUJ •

.t.rt1clo 4-!ho llanl< of the Orillltal llept'bl1c of Urucaq 1o o.p<>Worod to onthorbo wboll:r or 1D part .. cor41Dc to cs.rc-ataocoo of tho 1D41'1'1aul caoo &Dd tille, u it eq Ju4go Docoooar:y or conTODioDt, t,.......tiou which are prahi'bitod or ouopolldod 1v' tho prooont docrH •

.t.rticlo 6-211• Cuotou l!ouaoo of tho llepo'bl1c, tho Pooh, tho Colq)trollor of blporto aDd lxporto, tho 'baJ>lal, tho oaTinp 'bollka • prha\0 'baoko, &D4 ucb•nce houaeo oota'bliohod ill tho c01111try are charged with tho otriot oDforcomeDt o1' thio docroo •

.t.rticlo t>-!o 'be coa~UDicato4, otc.

s ipodl JIALDOUil JaTior llaD41YU


DEC 2 7 1941

ftl1.e 1o te -ladga ..-lp\ of \be -...lll.;r lNlla\1a ca the _. JINP&I"8'' 1>7 'fOV o!t1oe.

I r..- t.1a1a ~ ot cooa1.M~Ule tawren, .. I 11.- 1..- otMr Mten.al ~ to' 'fOU. I ...,..U appne1de ..-lYiq t.ld.a ball.ua ~~ 1a \be ~ u ,_ ..... oya!leb)e t.be 11ft\ n1Da

' rr• at t.a1a ~ I ..,.!Wl l.J.D to baft thea to ocepate tbe tU.e •

.& ...pen • a..-~ 1A -er ud aateriAl cllll'iA& u. llu.N1& .-pa~.p 1o -ucmec~ u luw1A&....., 'ft'ittea 1A 'fOUl' otiS.ae. I -u. l.J.D to .-1ft t.ld.a repc'\, 1! lt 1o o...U.Oble.

liT "-' .s..-. tor tM ._ Ioar,

Sinoerel;:J' 'fOUl'&•

las-&) 1. len•\MO• IH

Dr. ~- P, ~, )t D!.rMU.., llrrUotll ot ~ .... ~. ~otlat..U.. 'lfiiMlllctol', D, C.

28€.


( 287

COOR D INATOR OF INFORM AT ION

WASHINGTON, O. Co

JJy dear ~. Secretary:

Enclosed is a copy of the latest weekly

bulletin on the war eocpiled in thie office , which

I Lhought might be of interest to you.

With best wishes.

The Honorable ,

Sincerely yours,

~rs;_k.·~, James P. Baxter, 3d Director, Branch of Research and Analysis

The Secretary of the Treasury.


fO

TREASURY DEPARTMENT

INT ER OFFICE COMMUNICA TION

Secre tary Morgenthau

lolr . Kamar ck

28E

oAn December 27 , lDil}

subject: Summary or O.C.I. Report on Wartlnique

1 . Wertln i que does not represent a denser to the United States, es any German movement towards the island could be eaa1ly inter cepted end deetroyed.

2 · The 100 Curt1aa planes era being kept 1n good cond1t1on, but cannot be used tor l~ck or a lend1n~ t1eld.

'· The armed forces, pr1ncipelly t he eailora 2,oooJ,000 strong, would res1et any attempt at 1nvaa1on. The1r motivation l a e des1re to "defend the emp1re• , aa ne1ther the Amer1cans nor the Br1t1sh hsve prcm1eed to restore French colonies to France after the war .

~ . The population 1e compooed or 5 ,000 wh1tes end 250 , 000 mulattos and negroes . Fear or being subjected to the American Southern treatment of negroes hae 1ncreased t he l oyalty to France of the bl~ck populAtion.


























TREASURY DEPARTMENT 313

INTER OFFICE COMMUNICATION

D ATE Dec • q , 19""1

10 Seere tary Morgen thau

••oM Mr . Kamarck

subject: o.c. t. Material : Secret Instruct ions of Spanish Merchant Ships

('!he ins t ructions, dated April 19U , are evidently to ensure t hn t the Spanish merchan t ships reach a s afe haven be fore Spain enters the war. The Br i t i sh secured them f rom the drowned corpse of a Spanish captain. )

1. The first section of the "Instrucci ones Secretas" order the cap tain t o maintain a radio vigil and to open tile second sealed section upon receiv i ng the code messac:~e "At 46o- 15' Lat . N. and 290- 25' Lon~ . w., a group or mines was found in the ship •a course.

2 . The second sealed section directs the captain , upon hearing a second code message verifying the first warnin0 , immediately to head for a safe port. If the ship is not wi th in 48 hours of a Spanish port, it should head for either a Norwegian port or an Argentine port. (My emphasis, AMK) .


I

I \

E. M. DE LA ARMADA

TRANS M ISIO N tS ~

~14

SECRETO

CuADERNO DE I NSTRUCCIONES

SECRETAS A CAPITANES

DE

ESuauEs ~ERCANTEs

Ejempt•r num. 1,..,_ I I


1

lnatruccionn Secretaa para el uao de eate cuaderno

315

:\nte I~ po• i hilid~J de que d EJt~do M~:V''' de 1~ ArmAd•

ICIIllA que d.arle ordencs, JC JCrvi r~ Vd. JCllu ir euctamentc: ,.,

in ttruc:cioneJ •illuicntes:

1 •0

- M~ntencr en inme jorahlu co ndiciones de cficicn c t~

J,,J serv icioJ de Radiotelegrafia de su buqur. unto en lo que

•r rcficrc al personal , como al mueri~l.

2 .0 -Cuidar~ pcrsonalmente de que lu horu de escuch•

relll~menuriu JC efectuen con tod~ cficiencu y Mricdad.

J ·0 - Sc orden.ari , que por rl person~ I de Ia Radio se pre Sic

1 ~ mayor ~lend''" a los avurnH·u de las eJtacioncs de R . T .

cspanolu, ta nh' civiles como de Ia Marina de G uerra , y que sc

lc aviJC inmed i~umente de recihir ~tlluno, cueleaqulel"e que •••n lea horea r clrcunatenclea.

i ·o - C uando V d . reciba euctamente cl •iguiente nurnn-c:·

"En 4e0 ·15' Let. N. J 2tt0 • 25' Long. W. fu' evla•

tedo grupo de min•• ••• derive,'' proceder~ a ahrir

cl documento que JC encuentra co•id.., y lacrado al final de eJic:

Cuaderno de lnJirucciones SccreUJ, cort ~ndolo, precisamenlc

' ''" unu ti jeras, por Ia ray~ puntud~ .

5·0 - Sc abJtendd de particip.ar ni C<'mentar con ~na

• lf(una, dbtinu de lu autorid~dcs de M.arina, cl contenidu· ~:

Ia n iJtencia del prcscnte documento .

Eua•rucl'¥a scri llevada huu d c:atremo de nel{&r Ju cais· \

tcncia, alcttando ignor.ancia. cuand<' su interrol(~do por cu.al -


316

2

(jUicr per'""~; ~un\j~C est.& sc~n ~Ito pcrs.•n .&l J c 1. , J>.I um.1.

J,,u '' •••mpo~ncr<H de pr" fcsi.>n.

6 ." -F.I C:uadcrno de lnurucci,lnes Secrcu< Jebcr.t <cr

•••nsen· o~J" en luj(.&r pcrfc.: t.amentc se~turo y " " ''' Jc tjUe sufu

cUrH' il• •' <e ,,h,ene a l~un .& ·.lllormaliJad en cl d.hcr~ du

, uenu inmedi.&Umentc a 1.& .&uturid.&J de Muin.& e>p.& ii<ll.& ,,

(:,,n,ulaJ,, Jcl primer puerto que ••isite, si cl c,,n .. l es CSJU·

iiol. En \"H O .:ontrari" en•·iar~ al E. M. de 1.& .\ rmad.& cl •i

~uiente cable ,, udi,, ur~e nte : Llegu' (neMbr-e del puer"to) eaperoo lnatr-ucclonea. Caplt6n.

- .° Cuando por cualquier circunuand.u cue ea el eta .. o

Jcl hu'lue, entregar.i d Cuaderno Je lnstrucdoncs Secntu a

Ia auto riJ.&d de Marin~ espanola pau que esu a <U \ ' CZ I() ft•

trej(Ue al C~pitan que le rcleve.

8.0 ·Tan pronto llej(ue a cualquier puenu de her~ pre sen·

larK, aln dalagar- par-a allo en nadia, al Comandante "

.-\ yudante de .\1arina de dicho pueno con cl Cuaderno de Ins.

trucdones Secretu para \jUe le sea hecha Ia anoucion corres.

~ndiente por cl propio C>mandante o Ayudante de Marina.

y.0 - · El tell tO de Ia avurnave podr~ .:amhiarsc con fre ·

.-uencia recibiendo oportunamcnte el nuevo tnto.

1 o .0 - F.n can• Je variaclon de estu lnstruccionu recibiu

lu nuens por cl mismo pro.:edimiento y con cl mismo ca.

r~cter que le son entrc~tadu c!sus .

• , .o __ Uu \'C.' Z cl upitjn Jcl buque en poscsiOn de Clle

Cuadcrno sed cl unlco rcspuns.ahle de IU conscrvaciOn , .

.:usc.-di.&.

1 " · 0 La pcrJada, " dererion• m.& nifieuu , del C:uader

'


- 3 - -

de lnJCru~d<>nCJ Sc:creus, tuer.l c<>nsigo .Au tom.A II. , """" pu.a

1u p<'sccdor 1 .~ inhahiliucion pcrpctu.a p.au m.an.J •. • lr hu'iuu,

•in pcrjuicio del f.~llo que emiu c:l Consc j•• de ( iuur, 'i"c lo

1u1 g.ari por cl del ito de Alta T uicion.

M.adrid, .3 0. de abril de ' 9i 1.

Dt o,.J,,. Jel Alai,.41t1t '}r{t Jtl E. M. J, 14 A,. • ...w.

•

317

'


- -318

- 11 -

dla de hoy ol presente C. I. S . no nr ~~~~~~ltlll~n alguna.

H de 1~. de1941.

. Rtsvistedo en ~ dla de hoy el pr~st:nt• : C. I. S. no

pres~~ta ;7rmalid~d alguna. •

En /)~+~'~ ... a .. / r de ~....,.....,.. de 1941.

hoy el presente C. I. S. no

1941.


-- 13 - '> 1 9 .....

~~~~,·~-=·~·~-~;z~:~

'-..':.:-:.·. . en,el draJe hoy e l presente

nrf''~~a anormalidad ~g..na.

C. I. S. no

,\... ... ...

\

C. I. S. no

M.,.;,..,

(Firma y .ello.)

de 1941.

!Jt~'-':4~

' •


• '

- 15 320

. '

1941.

C. I. S. no

de 1941.

el presente C. I. S . no

,

de ~.~~!''·*"de 1941.

L .. !ut~oriJM tl~ M..,.;,..., (Firma '1 tcllo .)

~. t)

D-'~·~ ...


- 17 - 321

Revlatado en el dla de hoy el preaente C. I. S. no anormalldad alguna.

~rvo~'~t.. de ~~-a 1941. ~~ .' .

t . 2 • • •

hoy el presente C. I. S. no

. de DeC f., • . - de 1941.

AM~ori.l.J M M.,;,.., •

&:J~--·-"~

hoy el preaente C. I. S. no

•

•

'


' 11

En

~evistilc1o en el d

'Pnta anormar

9Y~--

- 19 322

C. I. S ' IC

1941

"·

Revcstado en el dla de hoy el presentl.l C. I. S. no

a .

oy el presente C. I. S. no

alguna.

de

La Awtl'l'iJ~ J~ Marino~,

(firm~ '! sdl,q

de 1941.


" H ' -\ 1\ ISSTRL:CC I\.1:'\E:'\ (en c<IJ h,,j J sc numpu • n P" r IJ Auc.•riJ JJ Jc .\\J

''" • , , m,,, J;f;.:J, "'"C' '' nucvJ< rn<cru.:,·i••nc< ~uc rc.:ihJ n rclcrcncc Jl ( :. I \ ) .

•

1\)

0


\

21

··vistado t!n t:1 ct:11 de hoy el pr.•sent•· •

, ,·ntil <lnor·• · d 1r..H1 tllguna.

dt.:

l . .a .4 .. ,.,,.iJ..J J, .\i.an ~t.a .

( f irm~ ' ,el),, 1

324

')0

RevJSt ilclO tr · · !J t~ ch: hoy el pr• :St:ntr r. I S. no

·senta aP• "•nal ·1 -Fl C~lguna.

a de

/ . .a .4 utt•riJ.aJ J< M.ari,. .. .

1 Firm~ ~ ,c:IJ,, , )

Ot.: 1941 .

Revist<soo en cl dia de hoy el prP.sente C. I. S. no

~flsenta anorrn-'l•dad alguna.

de

L .. A utoriu.l J< Mari...a,

(Firm~ y ~ello. )

de 1941.


ASUNTO:

TUTO:

M I N ISTERIO DE MARI NA

or t ... ~ l ,, , • ,

lnatrvcclo,... ...,_ con orroglo o leo cuoiM dobo '' oc:eder fnm ..... m ente que H reciba el avur-M Yt d e ava.o~

1) Con oh1c:to .. cndonnc qlilc cl ~vv.tnnc rccibido

• • ,Jc del E.udo M•• r de u Arm•d•. dcbcri ordccur .I per· wrul nd1o q...e: c:.onllnu .. a ucuct-& sobtc l.a on<U y EsuciOn qDC Jao d .11vurnavc de .a.vuo

2) :0.\cd,.a h,,u <,run de ho~bcnc: rc.dbido c:J a·nu·u yc

Jc "'''t''· .. ld'ICrl rc.:1blr , , umcn1c: ole otto:

. Eviten naveg • • en zona 50 milia• al rededor pun-to avurnave antt >lor · lu ~uc lc c.onf~rmn~ )U autcntici·

........ ···••·· t'"o..tJc.ntc lltl had,• ,\\,.~vr Jc h >\ r-n,hl.t, 3) Una \c'l ccrc•n,J,, , le t \ IC punh:, l'r~cdcr-i •nmcdl&·

t.m\cntr .1 Jinjti''""""' puc-n.• ""·'•'ru.l "'"' prOJim"-'· -4) l>c ~ pode1 Jl..:.anurlo .a• tc:' dt" I.a .. 4 8 horaa, de·

l>c-r-.a Jmlf,IT sa huquc. tcp ' " \U ••IIU·"'' •n ,cc••~uh.!.& y tae:rv& de ,omhu~uhlc. ; rucrt1t S''"" ,CO, ru&nJo (ltlT c1 ~OrtC de lrbndia, ode b \mer ' Jd S..-r, .... ,. prc:fcrcnc• .. en cSIC ~. Argcnuno

f\. r • • .Jcr rc.al,, ,., lo e•puuh' en el ~o .antcno.'f por

t.1lu JC' .. ·r "· )(' J,n,.•r.a .a pueno ,,.,_.anol ..Uhq,UC• tude nu.s

~ 48 horaa. 5) lksJc cl mo,..,AIO en q\tc tC' .. Ib.a cl .avum.aH Jc C'on·

t•rm.a .... 'n K .a~Htndri en _..wluto de cnuur n~ngun..a s.cii.al ndiotdtp..aft.::.a, qucJ .ando JctJc te momcnc" en ~wrcn)4) l.a on:lc:a dt: J.ar l.a ,uu.aciOn o~ l tntJ,oJu

6 ) Dd cu.:lo c .... pllmicnto Jc c~U\ ,n,strUCCionu ur-i

rnpOI'I.J..lblc con .arrcglo J 1 •• lcyct de v~rn

.\\ I.,J,.trJc Abril de '~' · .. .- .. ~~~~·" .,., .... ~ .., ................. .

,, fi~,_J. ')tl1,

-

'


TEXT•

IIDIISTIII or IWUIII

(l) ln order to lll.ke certain tbt.t t.be w&rn1ag receind euoatea tl'<a laTa.l Headquarters, 70U will lnatruct tbe wireless operator to lt"P twled 111 on tbe wan-leQCth aad nation that gave out tbe w&rn1ag.

( 2) One baJ..t lloui- att.er recei pt of tbe wern1 ag, 7011 abould recehe \ tba tollowiag :

"AYoid rartgatl.nc within a zont 50 f1lto froa tho posi tion prertouou !!Unod uainat,• , which will cont'ira the authenticity ot the -••age aa baviag 001111 froa Haul Headquarters.

( 3) A a aoon as you aro reaaeurod 011 t h1a point you s hould proceed ~d.iately to lll.ke tor the nearest Spanish port.

(4) It 70u are unable to reach a Spanish port ritbin 48 bourt, you tbould •m ·i1•tel 7 aalte tor, clepeodiag on 7011r poaltioo sad ,.our tual reMrYeS, either a liorwesi&ll port, taldng a eou*se llortb of Irel&lld , or a South Aaerican port, pr eferably 1o th1a caae, Argentine.

It 7011 are unable to follow tilt. 1oatructioos 1o the preceding paragraph tor lack of ••oa, you rill proceed to t.be oeareat Spenieh port """ t.bough this will require aore than 48 hours.

(S) Yroa the tia you racein the contiraation ot the warniog, 'fOU will retr&UI troa a8110U.Di UJ¥ wirelau oi&JI&la, ignoriag troa that tiae tbe order to report your ooonci&T position.

(6) You will be belcl responsible for t.he exact c&rr'flag out ot theee orders , in accordance with the laws or warfare.

(STAIIP)

IIADRlD, April 28,1941.

87 Order ot

The Ch1at Aclalra.l ot lanl Headquarters

Tbe V1eKh1af

(RAPALLOJ


-,

M .::I S'I'llY OF L~'!i~

TRAESIW:>~ro: :s

Book of SPcr!'t ! n:;t:-uotior

to Cuptai ::s of ~:e•·cl.lll t ~J, i ps

Jlodcl ::o . 17?

327


SI:CRIT LSTPUCTIO .::. • )i USF . £'1'.,

TlliS YOJKL)'T

328

I n t ht> JO!:Dibili ~y tht ter fl ·ry ' i<;h

Con:::end oust ;i vf! :rot: Ol't ,..,., you 1\1' ~. 1 oll:>· c>xactly

1. ':':"'f' :"8. io SC' 'V ~CeC J!' "-''"' ::hi :nst

be kep t i:l t he vcr:; bf'st con i '; i o~ , not or l:r i n rf!

t;nrd ~o perronnfll , bu~ cleo r1r r·r n:: .'lt~":-i ol is

oonoc-rnc>d .

:> . '{ou ourt takf" P'"" o:-nl c•t!'C' t!;ot ~he

~C't;ular listf'ni ng hourf: br :";lt it. cve:7 ,.. J'ici ... ~c:r

and seve:-i ty.

persoMel g i ·;es PVP::f nttr-• io1. to • r ·a~· i - ·:: of

th~> Spnni sr ra-. io s~'l~ io. c, civilh=' 'lr · rll ~r '"llr

~.ari nt> , an•' t~at thr:r !lr irr,. i'ltr>ly ' vi~<'· ~~or.

stonsea.

1. l'.'ht>n :·ou .,.rr.c-i V!l "~oc · l y t) r follo~ ·-

· ~o 1" 1 1 • "JO n~ t Lo~ ' i n~ \''Orni ne: "1)+ q.o -- ;) o u • on __ , v •• •

, 0 0

group of a;i nes · nc ·our i . tL" rl i p' s course . "

- 1-

'


you will proceed to open tho document whi ch is found

sewn and sealed et t he end of t his book of secret

instruct ions , cutti ng it exactly wi th scissors along

the punctuated line.

329

5. You will abstain to oo~~unioete and

c~ent with eny person, outside of the ::a vy authori

ties , the contents e.nd existe~ce of this docu=ent .

Tbie rt>Servetion will be carried out to

the extrene of denying its exi stence, alleging i~

norenoe when questioned by any person unless it be

a high personage of the ship o"mor ' s f i rm or pro

fessional companions. 6. The book of secret instructions must

be kept in a perfectl y safe pl ace end , in case of

mispl acement or observing any abnorcality in it,

iuediate account of this nust be given to the

Sponieh !levy authorit ies or consul o• th" f irst

port which you vi sit i f the consul i s Spori sh. In

the contrary case, send thf' follov.1ng ceblo or ur

gent radi o to the Mi ni stry of ~orine: "Arrived

(name of the port) awai t ing i"'t: tructiono. Captain."

7. If for any reason you are relieved of

the ahip' e coi:Oanrl , the book of secret instructions

- 2-


must be <~<'liveroo t o t he ~poni::h •. nri ne eu~horitiPs

so thut they , i n thC' i l' turn , cun llolivc-r i t to thA

cnptni n who will relieve ;rou.

330

8 . As soon es •rou :p••·i VP ut uny port you

ourt ')" ... SE'r.t you- sell' , ·j.tho•1t •t;:l r ·ul i r · nn·;body

£lm:., •o thr eoo'l!lr. l'r o- BF~ir•n;-• o t',.. 'n··i ::e of

snV po,.t 'i th t he book :>: ~rr"ct i •·r• rJction~ so t h!l t

proper note can oc '-.to· .e !.:• thr co"-crpo~ i · co:-.:::m• er

or assi :;tunt of thf' :.:a:-i rt> .

9. 'lhr tPxt :n ' emi r · ..:e · br ch"n,·pd l'r c

!Ut"ntly anrl a new text 1•ill bl' ·rl'r i 'lf'd in ti11c.

10. In case tltrsc i •: t1-u~tio•,r Ghoul 6 be

ohnr~1P<i , you ·;:ill r ecci ve •.c" i rh·urt ionr b:1 t hP Eon"

11. Once e eapte i" ~· ~ ~h ip ir i ·as

session o '' th i c co:>k, ~.c !ll2llf. i r rl'spo··::iblc . o" its

preservation nn ! safety.

1~ . ~he obvious los~ or rot~1r"ior o: tt.e

book of i nstruct i ons •:• ill i'1 rd il't~"lY bri n.< upo~ i t s

pos sE>ssor thE' ~crpp'.;•tul ~ i !l "'.unli ' i oa" io1• !'o- col!ll'lunrl i nr.

shi ps "ti t hout prPjU'l lCP to thl' vr-,.ir·t pronouncec:' by

thl' ",fir Courcil, ··:hich will juJ '" !. in I o•· tr.e cri cc

-~-

'

'


331

ot high treuon.

lladridt April 30• 1941

By order of the AdJliral-in-Chief of l.!erine.

- 4-


c

TO

TREASURY DEPARTMENT

' ._.IMTER.OI'l'lC£ COMMU N ICATION

' _.<:. .; .

~Q~ Secretnr7 Horgonthau CO N FIDENTIAL

Res 1otorod otorl 1ng tran~&et1ona of the r eport ing ban~• vere a a tollovol

Sold to coDlm.ercial concern• Purchased from cocmereial concern•

£26, 000 £ S,OOO

()Qen :oarket aterl1ng eloa•d at ~ .0}-}/II, .,d thoro vere no r epor t ed trl\nuctiona.

'!'he Can,.clien dollar, w1cb clooecl. et a cli acollllt of 1}-7/S;o lut n1V>t &!ter rnch1nt; • new lov of lL}/S? , held ateecl.7 at 1}-7/fi.• to~. '!'he !lev !ork b&nk that htla be,en con•ertl.ng an A.a:ericen cuatocer'• Canadian funds i .nto U. s. dollara reported thh norning tho.t 1t had already aolcl 225 ,000 Canadian dollora Wider t hh order. About 16o ,COO reo:a1no to be oold; the cuatoaer hao pl actd a l1a1t o! l}-7/Sp on thia balance.

In llew Yorl<', cloeill€ a.uotr>tiona tor t he toro1cn curr enc1•• Hettel belov wtre na tollova:

Argentine puo (free) 3r az111an n1lre1a (free) Colombi an peso >~exican peso Uruguayan pe•o (free) Venea.uelan poeo (treo) Cuban ~so

. 2}6o

.0~16

. 5775

. 2065

. 5)10 • 270l' ,,...

!here were no gol~ t ransactions con•~~t~d b' ua toda~.

t'o nev gol ci eJl&R.&ec.enta were re-oorttd.

•

'


BRlTlSH EMBASSY WASHINGTON, D.C.

27th December, 1941 .

llERSON/U. c!: SECRET

Ueer Mr. Secretary ,

I enclose herein ror your personal

a nd secret inforMation a copy ot the latest

report received rrom London on the military

si t ua t<ion.

Believe me ,

Dea r Mr. Secretary,

The Honourable

Henry Moreent hau, Jr.

United Sta t es Tre&sury,

V/sshington, D. C.

Very sincer ely yours,

(For t he ~nb6ssador)

~. J. c

•

'


I

(I) JiWI,

OOPT llb, .L!::! Blll'TlSH llOST SECIIET

(o.s. SECIIET)

WorutioD roeeiftd up to 7 -. .. , 26th Do<>-.., 1941.

Report rr ... &IIFA out .. that on 2SU. • lll'illib 6, oco ten toolccr

wu co tire and & Horngi an 71000 ton Tanker had bton sove:re}1 d61J1Cod by tire. Ho

tu:rther dotaUo but thought tho reaul.t ot air attack. A naval a.nt.t~sut&Brine

vu o&l wu doatroyec! by onom;y aircrott at PEitA.Nl on tho 12th. Tn'o medium sized

Britiah • orohaot votsola and one ot amallor tonnaao have boon minod ott tho oast

co1.1t. 'lbo two tormor he.vo sWlk.

(II) MtLifW

J.mlA• Poc.ket.s ot enoQT b'oopo otill ......to an<1 .,... &borinc

fJ4bt in t.bo area acrtb out or EGHI.ZI. BARCE -- io not TOt considerocl

1&t'e troa sroun! attack. Ob the 24th enec:o- colU&M ot 11."! , 1 ~ cars am

aoee t..a.nD W9N attacked by 0\D" &1xed eol.ucnl in tba 01111niZS-BEDl-fCUl area, n-..e

••0117 io otill oborina s ian• ot llJ'e in the JEDABV. oreo end rill wldoubted.l.Jr do

bio boot to avoid beina cut orr. The purauit io heine .. inta!MCI,

~· Enemy troops Mve roAChed KJAI.A l'RElliGAHJ on the east

ooaat,

m§W. The enemy attack: <u'l SEVASTOPOL 11 oont1nuil'l6•

(III) Am OPk!UfiOI§

!l!!STffiN !l!W1I• 2Stlv'26U.. 'lhlrlor-nino 0"""17 aircraJ't ,.,..

opcrat.inc D&inl7 in tbe THAl3S !S!UARI,

ltmi1'F1ijtAP£\!f, 2)rd/Ut.b, S.ventHn ~ol.llrctons bc;;obod tbt

lan<ll.llc vcwld at EL AOHEIU ood another - in tho rlciJI.IIa' etartina fires,

~undrod ono~ wcrort were fcu.'XI deotroTOd on BERCl loodina arowld,

24th, Our fishtere attacked u. T. ar.d troops in t.ho EL AG!-:!:.IU

area. ~ vthiolee were destroyed or d&ea&ed end coiUOltita intlieted on troor

Threo BlonheS.. attackod a Ia:rse aohooner in ZOUA.AA flarbour, probably' d!Ur1081n& !t

!~etlan tht 1Ultor 11no. EnoPU airor att dropped teolvo mints on a:::te!i'l2! eleven o!

trh.loh fell out.ddo the harbour,.

24tlv'~~U.. llOne ~ellinatoM bombed llll POLl Harlx·U!' oni doo a

Cru1Ml" and throe Deet.rO)'er3 ten cl.les out.11do 1twrlne a tf.1l. tn)r. ce:..:rso. S!.r.

r.a'lal airor&tt. alao la!.d t'-14'1!11 '.,• 'i1:ree eneq a.ircratt ftN ove:r J:.\L~ ror e.~!:.;

ard halt heNri. ~b da:ACr. ..-~ "e:u:sld .

( tv) A Japanese divialoD probllbl.Y trooa StAll 11 r tpcrU·.J to be ccnce- •

~a tine in tho IliA Iotll=lo on the rallvq bot .... n P!UCHIIlB, lt!IIR:IA1r.: 6111 Cl-ll:ll'(P.':,


1'· m. I Doeomor 27 p.m. r SECRET

335

From Kyihxahoy Fik:d...l.k2..:1iu2.__-lj a.m. I Deow.ber...ll_. l9U p. rn. r Recelved in I. B..ll:1i;,;;3!lo0t._ ___ , a. m.l llooembor 26

p. m. r l~ No•--21~~3~-------

1, U. s.s.R. ot r ioinla doolino to ti•o inforoetion on air route• ,

whioll -• roqueoted ooperately bY OrU'tia one! by "'· t'l-.ey otete tllat

s,g-..t udo in ll'a:sun&ton a;>ooirioa t~t plGDOa will bo delhered to

Ruaoia a t Buro, and that it ia no lot~t;er racouary to furnioh tt.e

air ro\lte lnton.ation aou?;ht.

2. I requested dab no~ul red by oo.bl o 107 (12/5/H), but io viow

or So'fiet rofuat.l or 1nto ...... t 1on on air routoo . tllis do t o. will i•robabl y

not bo tumilllod.

3. At tho """"' thlo, Ru,.lane oak thi>t P-40 parts bo fo~rdod

a. For evary t ea 3h1pe; Nve relt.ys .nd &0';"8ntore, tw.o

n.ou\110 I"""P propollora aDd two 1\ool pwop pro;>Ollera, botll oooo9leto w1tll

an4 retraction asec:bly. as well ac actor val .,., , beeringa, ooune:~tltat;

roda, and a(»re pilton•:

b . For every twenty sh1~1; one ooa.:lete aet of oontrol cables

and ono eleotrlo bydr•ulio pump&

•• Dry batteries or 4~ : 15, and 120 volta •

4. Ao ot Dooeml>er 27, Ruooilllll ott. to that 35 out or 228 P·40'o

are OCI!II;>lotoly out of oomdssion, aDd the re•t arc o;>Or•tict; >rlthollt

;o.Dtratora.

:; , Ia It deai"~ t',.t I diooour~o or • n•ouror;o E:u .. i..,. 1!1 __ J!_!B:!,~!!"':.==:======:==::;.---


336

SEC REm ••-----ll~~t-l ---JJL L-~~~~~~-_J

'194_.

7 · 'lllt, a 1::1:-----lM,_ ....

" ,.,._ •'""'" a ot 1'-40 •Pl'lT wUII •• alll.ob tiler t.a• - doillc

aSMe D ' r lftf I loa• _,.,..w wUll ~. hopboc liD to~ -

- ...... ot .W- u to IQUt.&rJ Att.obe r-t:t-. •• ,._ .... ta Sa oo ... .-t- 1 ptller -t - or ,.,...,,...

- •1•. on t.ut ~17, ta ,..'bal>lo.

(G-1: t& CMle ot lt/6/tl - \o ooaW'- a l1at

ot 11 1'--- liD lodet. b)' AU ~. ooaum~ ilop>rbat

...uta ot -.1~. ... t w t~~at, a -tiao nth t11e P"paratlDD

or p1aMo tbr o.s.s.a. llhipoaat.)

,..,.......... "' *301' r. 1'. ewtt

.t..nt.. - tiD CldeJ' ot - AU C..rpa1 otlle,.. lotb-•Dill


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