Defense Files

United States Minutes1
secret

The President stated that he thought that a public statement should be issued in both Great Britain and the United States concerning the accomplishments of the Conference. This should be issued at an appropriate time.2

[Page 204]

Subject: New Agencies for American-British Collaboration.

The President stated that he was opposed to creating additional boards, but under the circumstances it appeared desirable to create certain agencies to insure the more efficient prosecution of the war. One would be a combined Raw Materials Board, which would involve the allocation of raw materials. The President stated that twenty-six nations were involved in the matter, and that he did not want the smaller nations to feel that they were left out of the proceedings.

Lord Beaverbrook stated that the British had already nominated Sir Clyde Baillieu as the British representative on this Board.

The President and Mr. Hopkins agreed that the American representative had not been decided upon.

The President then stated that this Board would have working under it a staff of appropriate size to insure efficient planning and the speediest development of raw materials. It would make recommendations to the heads of the Government in collaboration with the other nations. The Board would also confer with Russia and China on this matter.

Admiral King asked to whom the Board would make recommendations.

Lord Beaverbrook stated, “The President and the Prime Minister.”

The President then stated that it was proposed to establish an Anglo-American Combined Shipping Adjustment Board, which would have agencies in London and Washington. The executive power of this Board would be exercised by the United States Maritime Commission, in coordination with the British Minister of War Transportation. This Board would also confer with Russia and China and other interested nations on matters pertinent to its duties.

The President then stated that a matter of primary interest at this time is the assignment of munitions, and that he felt that all munitions should be placed in a common pool; that General Marshall and General Arnold had thought that a Board for this purpose should operate as a subcommittee of the Joint3 Chiefs of Staff Committee. This Committee would have a civilian chairman, one group operating in London and one in Washington, and would operate under the Joint Chiefs of Staff in a manner similar to the arrangement for unity of command in the Southwest Pacific area. The Board would advise on all assignments and priorities with reference to finished munitions.

Lord Beaverbrook asked who would advise him on the matter of apportionment.

The President stated that it would be handled the same as the arrangements for the ABDA Area; that if disagreement occurred, appeal could always be made to the President and the Prime Minister.

[Page 205]

Lord Beaverbrook then asked if it was desired to obtain goods for Russia, for example, to whom should we go?

The President stated that he should go to the Joint Chiefs of Staff, except that he would nominate a civilian chairman; also that the munitions subcommittee would invite comments on their allocations from representatives of the State Department and production agencies in both countries.

Lord Beaverbrook then asked that, if he was to go to the British civilian, where would the decision rest?

The Prime Minister stated that the two committees (one in London and one in Washington) would discuss the matter through the Chiefs of Staff Committees; that the arrangement of the British and American Committees would be somewhat different, due to the difference between the British set-up in Washington and the American set-up in London.

Admiral Pound asked who would be the British representatives in Washington.

The Prime Minister stated that the British representatives would be the members of the combined Chiefs of Staff Committee, with Mr. Hopkins as chairman.

General Marshall stated that the arrangement suggested by the Prime Minister above was not his understanding of the matter; that he understood that the Munitions Allocation Committee and its civilian chairman would be a subcommittee of the Joint Chiefs of Staff Committee and should deal purely with munitions. It would be composed of Army, Air and Navy representatives, plus British representatives, and would have Mr. Hopkins as chairman.

The Secretary of War stated that he felt it was important that Great Britain have representatives on the Committee, so that overall treatment of the problem would be on the same basis. In other words, that the purpose of the set-up was that the economic resources of the two countries would be combined.

The President stated that this particular Board pertained to finished munitions coming off of the line, and applied to final allocations.

The Secretary of War stated that, prior to the passage of the Lend-Lease Act, it had been necessary for the War Department to deal with ten or twelve buyers from foreign nations; that he understood that this proposed plan was one step nearer to insuring that allocations would make most effective the associations with our Allies.

Mr. Hopkins stated that the movement of tanks and airplanes, even if they are not given American troops, is under the present manner of waging war, an operational problem and a proper subject for action by the Joint Chiefs of Staff Committee; that the subcommittee would make recommendations for the distribution of munitions of war and report to the President through the Joint Chiefs of Staff. [Page 206] If the Joint Chiefs of Staff do not like the subcommittee’s recommendations, they can alter them or throw them out. However, room is left open for an appeal to the President by agencies below the Chiefs of Staff Committee.

General Marshall stated that he did not think that we should duplicate the Chiefs of Staff Committee in London; that the purpose was to set up a command post in Washington; that, at the present time, strategy is dominated by matériel, and any proposal with regard to matériel should come from the same source; that if the recommendations of the subcommittee, headed by Mr. Hopkins and the Munitions Committee in London, were not given proper appreciation by the Chiefs of Staff Committee, the President or the Prime Minister could reverse the Chiefs of Staff’s decision; that it is not logical to have some agency independent of operations, control the matériel which is a basic requirement to successful operations.

The Prime Minister stated that the Committee in London would be able to give surveys of matériel available, and as Minister of Defense, he could tell the British Staff, and through them their representatives in Washington, what line to take.

The President added that one reason for having the civilian chairman is to permit Lord Beaverbrook and similar individuals to bring up the political viewpoint with regard to certain allocations.

Lord Beaverbrook asked if the matter would have to be referred to Washington.

The President stated that it would.

Admiral King stated that if the Chiefs of Staff Committee has representatives in London, which would meet in London, that it would duplicate the present set-up and this was not the idea intended.

General Marshall stated that in London there would be a British Committee on matériel; that a similar committee would exist in the United States and that the recommendations of these committees would focus up into the Joint Chiefs of Staff Committee. That he did not see how it would be possible to conduct a war properly with two independent agencies making allocations.

The Prime Minister observed that he thought the military representatives would take the purely strategic view.

General Marshall stated that under the present situation there are two lots of munitions—British and American—and they should be merged.

The Prime Minister suggested that no announcement of this method of handling allocations be made, but that it be tried out for a month.

The President suggested that Paragraph 1 of the memorandum, which called for the pooling of resources and the exchange of information on materials be released but that the procedure not be released at this time.

[Page 207]

Lord Beaverbrook stated that before the system was permanently established, it should be given a trial; that he could envisage many difficulties which would obtain in England.

The Prime Minister suggested that the machinery be set up at once and the system tried for one month; then, if necessary, there could be a redraft. That the British are counting on lots of allocations from the United States and will want to know what the situation is; that they would be deeply interested in the margin or balance over and above 80% of the munitions.

General Marshall stated that there was more to the matter than this 15 or 20 percent margin, actual requirements have been the basis for most of our allocations of materials; for instance, many American units have kept below full equipment in order that this equipment could be sent to places where it was more urgently needed; that at the present time, the Army was planning to augment the number of divisions but only on a basis of about one-half of their equipment.

The President then stated, “We will call it a preliminary agreement and try it out that way.”

The Prime Minister suggested that the thing to do was to put it in practice, see how it looks a month from now, and then make an announcement.

Admiral Pound agreed that the system should be given a trial.

Admiral King stated that he was disturbed as to whether the Chiefs of Staff Committee in Washington would be duplicated in London. It was agreed that the proposed system did not involve this.

Subject: Communications with London.

The President stated that he wanted to work out a system of better communications with London.

General Marshall stated that the Signal Corps had advised him that there was no way in which secret messages could be sent by telephone; that the so-called scrambler system merely assured privacy.

Admiral Stark added that the longest cable line for telephone purposes is between Miami and Cuba.

The President stated that he thought it should be possible for the two Governments to have the full use of one cable.

General Marshall stated that at present one trunk cable is under lease.

The President added that if the Government had its own line, it could not be cut in on.

General Marshall stated that complete secrecy would be difficult because of the necessity of having the transmission go through the hands of a certain number of individuals and added that he would check on the matter and advise the President at the earliest practicable date.

[Page 208]

The President further stated that a study should be made as to the best method for improving the communications between Washington and London.

Admiral Stark stated that we have a set-up of that nature now—that direct connections exist, but messages cannot be sent by telephone.

Air Marshal Portal stated that the British were working on an instrument which he felt would be available in four months, which would insure secret radio telephonic transmission.

Subject: Gymnast.

The Prime Minister asked if anything further was to be said about Gymnast.

Marshal Dill stated that under the present plans, merchant shipping necessary for Gymnast operations would be delayed until May.

General Marshall stated that, regardless of the ABDA reinforcement, four weeks after D Day for Gymnast, it was estimated there would be enough shipping to send another 12,500 men from the United States, in addition to the original 12,000 to go on the available combat loaded type of ships.

The President asked, if the political situation could be kept stable until May, could the operation be put into effect?

It was agreed that it could be.

The President then stated that if the Germans should move into the Gymnast area in the interim, the thing to do would be to utilize whatever forces were available.

The Prime Minister observed that in this case we should make a slash with whatever forces were available and, if necessary, operate on the guerrilla basis.

The Secretary of the Navy suggested that we could take advantage of the delay to undertake some softening in the Gymnast area.

The President stated that he had taken steps to accomplish this.

After the exchange of certain amenities, the Conference adjourned at 6:30 p.m.

  1. The minutes are typed on War Department stationery and were presumably taken by Lieutenant Colonel Sexton.
  2. No announcement was made until after Churchill’s arrival in England on January 17, 1942. At that time the White House announced that “complete understanding” had been reached in the conference regarding present and future military operations. The press also learned in general terms about the establishment of a “U.S.-British War Council” and of the boards for allocation of munitions, raw materials, and shipping. See the New York Times, January 18, 1942, p. 11.
  3. The word “Joint” as used in this document undoubtedly meant “Combined,” i.e., United States-United Kingdom.