840.48 Refugees/1119: Telegram
The Chargé in the United Kingdom (Johnson) to the Secretary of State
[Received December 15—5:40 p.m.]
1440. Personal for the Acting Secretary from Rublee. My 1437 [1436], December 15, 2 p.m. The meeting took place as arranged. Schacht presented his plan orally saying that it had the approval of Goering and was the best that could be put forward, although it did not necessarily exclude other plans, if a better could be found. The [Page 874] atmosphere of the meeting was extremely agreeable and it concluded by Schacht assuring me that I would be welcome in Berlin, if it was found that the plan presented a basis for discussion. Schacht did not say that the plan was a “take it or leave it” proposition but said that whatever observations we might have should be presented quickly because otherwise he did not know what would happen to the Jewish community in Germany. I explained that, of course, we would have to take it up with the governments, notably the American and British Governments, which would entail some delay but I hoped that I could give some indication of our attitude very rapidly.
Briefly, the plan as outlined was as follows. Schacht said there were 600,000 Jews in all under the Nuremburg laws in Germany, that 200,000 were old people who would have to remain in Germany, that 250,000 were women and children, and that the remaining 150,000 were workers. The plan contemplated the emigration of 150,000 workers over a period of 3 years at the rate of 50,000 a year.
Schacht said that the Jewish property in Germany amounted to approximately 6 milliards of marks. The plan contemplated that 1 milliard 500 million marks should be put in trust with trustees, one of whom would be a Jew. The Jews outside of Germany would have to raise a loan of the equivalent of 1 milliard 500 million marks in foreign currency either all at one time or in three annual installments. The loan would bear interest at 4 percent and would be amortized at the rate of 2 percent annually. Interest and presumably amortization would be used to buy German goods in Germany. Schacht said that Germany would not concede one cent out of the proceeds of its exports. He also said that as a condition of the plan persecution of Jews would cease.
As the plan was presented orally and no written memorandum was left by Schacht, Winterton is calling a meeting tomorrow morning at which Leith-Ross and other Treasury and Foreign Office representatives would be present when points which may be obscure will be clarified and the strategy of dealing with the other governments and the German Government will be mapped out. I shall report more fully after this meeting. [Rublee.]