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14
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1
/
, EXCERPTS FROM
BRITISIT. DISCUSSIONS ON THE MAINTENKNCE OF
_FUL4EMPLWRENT1,0___,
In a modern industrial society an individualfs ability to
earn allying is as much dependent upon general economic factors
over Which he has no direct control as on his own initiative and
qualifications. The bitter experience of an economic breakdown
in the thirties which deprived millions of people of the oppor-
tunity to 'work for a living and the contrast presented by the
full employment attained ;during the war are largely responsible
for the nearly universal -opinion in Great Britain that the chief
long-run post-war problem facing the Government will be the
prevention of serious unemployment. Speaking for the Government,
The 'Chancellor of the Exchequer said in January 1945: "The
basic objective that we must set ourselves is active emplqyment
foiw the people of the country." (1)
DEFINITION OF FULL RMPLOYMENT
The Economist (October 3, 1942) points out that a state
of tt.FUll employment" is compatible with seasonal unemployment
and transitional unemployment, but not with depressed areas.
ere is genera/ agreement an -this point, and. it is the pre-
!elation of "mass unemployment" that at present concerns the
itish people. BeveridgelsnAssumption Cny without which no
aCttory scheme, ogsocial-security can be devised", is the
&lance of employmept, that is to say, the avoidance of
employment."
delfUnemplas ent,JAK07,exist oa a national scale as a result
lageneral trade depresdon (cyclical unemployment), or on a
otai scale a a result' of depression in a particular industry
r.Vtural Unemployment). Most of the discussions are concerned
.
treballY with cub-171cal unemployment, and this report is confine d
E cyclical problem.
e GOvernment? in aiming-at regularizing economic
fltme44t aim at regularizing it at top speed.
he social machinery cannot stand this continuously any
better'ttelkoti*r Machinery can.. The problem with which
to wa7r-Goyer.nments will be confronted is not only how
10 61Ve tie Imemployment problem by regularizing .economic
but -also how to -find the way from the dislocated
;41
ions created by the war to the level of peace-time
'ictiirity and employment that can reasonably
1xect?to b9-neither over notunderstrained.....No
ma ematiCal ftccmula can be found to define this level,
04ause amongst other reasons, the conditions under which
., ?
Ivan= DEBATES', House of Commons, Vol. 386, No. 24,
4fitliari .2, COr# 8140
"
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it will have to be established itielf are as yet vnealown.
It is IK this fi4d that economic policy will have to
stand its test.n (pp l 21, 22) ?
CYCLICAL Tri1121PLOYMENT
Mass" unemploymevt arising from cyclical fluctuations in
bu4iness activity is universally agreed to be the most devastat
ing kind of unemployment from the economic and social point of
vie* and the most difficult to-handle* ntructuralo unemployment
arising in depressed areas and depressed industries can be dealt
with only if a reasonably high level of full employment exists,
in the country generally. Consequently the causes and cures of
the business cycle arethe center of most of the discussions on
full employment.
There is a surprisingly wide agreement in regard to the
nature of cyclical fluctuations and the measures required to deal
with them.
Fluctuwlippgj.n Investment
It has, of course, been long remarked by economists that
activity in capital goods industries and in raw material producing
industries fluctuates much more violently than activity in other
sectors of the economy. Furthermore, as has been demonstrated by
Alitin Hansen and others, decreases and increases in investment
tend to precede in time the correspoMding movements of consumption.
From the data made-available by the researches of economists, it
- concluded that fluctuations in general economic
activity are caused by fluctuations in investment. It therefore
foflows that employ,ment can be stabilized by stabilizing the rate
dnivestment.
.INVESTMENT POLICY
, It is generally agreed that the policy adopted by the Govern-
mopt'to,stabilize investment must include considerably more than
a: prepared program -of public works. Measures designed to maintain
e protitability_of private investment in general, the extension
ublic ownersbipj4 the ?control of certain types of industry,
'4-ate ep9rdination fiscal and budgetary policy, and the
on p4 a' Vational Investment Board to coordinate all invest-
otivities and draw lap a scale of priorities are the chief
eationa put forward in the British discussions.
CONSUMPTION POLICY
a discussion so far has been concerned rith full employ-
icy fiat, the investment side, and as if full
-1xere4he odle goal of economic activity. .It is obvious
the qmate,parpose of economic activity is to
nee iiNgiits of human beings, and consequently
04oyment to the community 'an be greater or
p23:the extent to whiCh,it, ,dembers are employed
u1st essentitll for raisir, the standard of
,employment might 1); attained by an approp-
1:44 nhily people believe that a policy
he proportion of the national products
wpOld result in a more progressive and
A44 ed egonOmk, and would assist in maintaining economic
# 'oms Imp Ion po/ic n in this sense is not generally
p
az"
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adyocated as anajszlig&ilag to an investment poli.ey bnt ae a
stipplebent to it. For this reason, all of the disci4itsiono 1,17ge
an adequate social security progftm t maintain the money incomev
of individuals in times of stress $ and most of tkltro recommend
that measures should be taken to effect greater equality of
income distribution.
PROBLEMS ARISING IF A FULL EUPLOIMT
POLICY IS MAINTAINED
In a state of full employment inflationary terxencies will
arise if there is an increase in effective demand unaccompanied
by technical improvements which will enable an increase in output
to take place, since output cannot by hypothesis be iacreased by
using previously employed factors of production. In these circum-
stances the increase in. demand (i.e., purchasing power in the
hands of consumers) must be the result of an increase in the cost
of production of an unchanged quantity of goods and services arid
must therefore lead to a rise in prices, which may start what is
Called the "vicious spiral of wages and prices". A corresporAlent
of Zile Ti Mes has this point in mind when he points out (January
X940 that full employment would result in a substantial change
in the workers' bargaining position, and if "free wage-bargaining,
as we have know it hitherto, is continued in conditions of full
employment, there would be a constant upward pressure on money
wage-rates...Unemployment in a private enterprise economy has..3
indirectly the function of preserving the value of money." #
The inflationary tendencies with which the British discus-
sions are conceed do ni)t'include a mere rise of costs and prices
tesuItinz from the increased use of marginal factors of production
as fali em.ployment is approached. They are concerned with the
rise in prices that comes from an increase in effective demand
when Outptt can no longer be appreciably increasea. In other words,
a desire on the part of people to increase consumption without
-decreasing investment% This of course would cause no difficulty if
teobnaogica1 developments made possible an increase in output
wi-th the same or a,smallersupAy of labor or other factors of
odU4Ada a zItUation,that is characteristic of modern indus..-
nial If, hbi3Oa, techniques remained unchanged or
gedolOwly in a giveOperiod? it would still be perfectly
e if the'community desired to increase its consumption for
00#ral governstent to take measures to reduce the level of
ilett,
It 's in this connection that the statistical
adVeSor-with the aid of which a "balance sheet" of the
.onal. economy can be drawn up and an estimate of the position
the near futhre be made, become important.
!??
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. A
"
0
reloirt states that if the
le.,10enomena of economic life confirm that a boom is on
the way, the Govermment should apply the following remedies,
the dosage being adapted to their effectiveness:-
The credit basis of the
Monetary system should be reduced - or, to
?begitt with, its extension checked, the rate
of interest should be allowed to rise; the
use of-o'edit for various purposes should be
cprtaiiled.
&Aka -jkaAa es. The nextraordinar-J n budget
should be(ir--;tovered by raising taxation;
?
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INSIBEIGNiiiiillinned ass ifi ed and Approved For Release 2013/12/18: CIA-RDP13X00001R000100020008-4
the rate of depreciation allowed on f,ew
capital investment for taxation purposes
shuuld be reduced, if necessary to zero,
or even such capital expenditvre should be
taxed.
n(Lil)giamkgiggt.Unigtgitia-41 Capital expendi-
ture by the Government (central or local),
or controlled by the Government, shomld be
slowed down or stopped." (pp 21445)
EvenL Th Ecollmid. considers the nold monetary techniques
...too indirect, too blunt in their action", and therefore
sees no alternative but "direct physical control of all
investment .n How extensively this control will in fact
be exercised will depend on the measures required to
stabilize the economy in any given period.
,pigLit:hakt.y..of tae Fitonom
Defence against unemployment in the past has frequently
taken the form of protection of the status 1122 regard:Less of
efficiency-, restriction of .Output in order to maintain prices,
r'striettonist trade union regulations, and tariffs. That these
w.ld be disastrous methods of maintaining full employment after
the war is fully recognized in Great Britain. It is .s tressed
over and over, again that fuli employment must be made compatible
with eecia0mitt -Change and that Government measuires to promote
of laborand flexibility in industry will be necessary.
niftt emerges most clearly from recent experience is the incom-
,
TEib:iIitry of full employment with restrictive industrial policieson
Zranuary 23, 1945).. Vestrietive measures are one of
"daivertof so--called inastrial self-government.
INTERNATIONAL .PCT S OF A DOME' ST IC ELM,
- EMPLOYBENT POLICY
Oat Britain), an extensive international trade is the
of ct91;estie ,prosperityg since a large export trade
itai lit-Oder to prcmide; the imports required to maintain,
-6te i prove, ti 'prear standards of living. In these cir-
4pqa*.Ukeat -Britain Arast develop her export industries.
"17,014*enttix these industries, however, will depend on
gctillAitiO11-S tin the export markets 'and these are not subject
e. ;0,qt, insutenee Of a domestic full employment policy.
Efl es t#S' greatest handicap to a successful full employ-
er-in Great 13iritaltn. If a reasonable level of employment
taineViti those countries to which Britain must sell
-es to buy, she will be faced with the choice of
2loyed workers' in the export industries or of
ether industries. The latter policy would
se-effea on 'the ability of export industries to
efr -prodttets when employment improved abroad,
ip.Y: might result in .considerable continued =-
CONCLUSION
Brittsb. discussions Of the problem of maintaining full
t there is a Urcitv er s al assumption that full employment
100,,atto4ined--that mass cknemplOyment is not an uravoidable
Platherroorei there is nearly nnenimous agreement
'ent can bre Achieved without resorting to complete
..0a. Of all etaotagic activity. Sir William Beveridge
methods' ensuring full employment must be
reserva.tion of essential citizen liberties",
? , arraiewarsresmalb
Matt SMINIMMIMIES
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tai:ch he lists as ofreedom of worship, speech, wrirAng? 5tIl17
atd teaching; freedom of assembly and of associatiou for poli-
tical and other purposes, including the bringing abcut of a
pea0eful change of the governing authority; freedom in choice
of occupation; and freedom in the management of a personal
income01. The 4xlstenee of th6se o1reodom0? he mailitt.ins, niakes
the problem of maintaiting P.111 emploTment more complex than it
would be in a totalitarian society. Nonetheless, the sacrifice
of -them in the interests of sizplicity would not be acceptable
in Great Britain.
Freedom to change Governments, freedom to associate for
inftstrta-purposes; freedam to choose any occupation and freedom
ti manage personal income are especially important in connection
.-11-,h full employment policy,
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EMIR!.
EXCERPTS PROM ENCLOSURE 40, 1 to
BRITISH DISCUSSIONS 01, THE MAINUNANCE OF FULL
NUF_TIELD Cigdy=
WatTITIE RESEAM,1
AELL_ULLUM,t0C STRUC_IES_WMUfi
MEMORANDUM FOR COMIDERATION AT THE CONFEitEhCE
ON THE INTERNATIONAL ASPECTS OF POST-WAR
EMPLOYMENT POLICY SEPTEABER llth-12th, 1943
1
FULL PRODUCTIVE EMPLOYMENT IN A FREE SOCIETY
0????1?10611.011110?1". .1111??????????????????????noworlot.
2, nFull employment in this description does not imply the
absence of any unemployment, In almost every country, seasonal
influences will affect the demand for labour in particular oc-
cupations at certain times of the year. In any changing pro-
gressive society there will be changes in the demand for labour
qualitatively if not quantitatively; that is to say there will
be periods during which particular individuals can no longer be
anvantageously employed in their former occupations and may be
idle until they find or fit themselves for fresh occupations.
In a footnote to the Nuffield College statement on plent
lislam, and .(hganization of Industry after the Wamj. full employ-
ment is described as na state of affairs in which the number of
unfilled vacancies- is not appreciably below the number of un-
employed persons, so that unemployment at any time is due to the
normal lag 'between a person losing one job and finding another:.
This desetiption can be accepted. It has the merit of emphasisig
as the essence ;If full employment the positive feature of a strong
demand TOrlabour. If full employment in this seLse could be
maittained? the residual interval unemployment could be dealt with
adequately by unemployment insurance.
34 TherOquirement of "rising standards of living" implies that
the empUTment secured should. be productive and progressive. It
extivded a soltaon of the problem by occupation which is merely
time-wasting dieging holes and filling them) or destructive(war,
armaments and Ni drilling). While the memorandum assumes that
tards of living will continue to be raised by continuing
hsical advance, it is not directly concerned with methods for
Securing the efficiency of industry. These, while important, are
only direotly relevant to the problem of full employment. Another,
lactor, epon9mie rather than technical, which has contributed
erlear to raising standards of living in the past, is inter-
Eational trade based on division of labour and specialisation.
IS taotor calls for full discussion, particularly in relation
toftttain0 in this memorandum it is dealt with briefly in
paragralgnq 34-$7.
44 The Preeise effect of the proviso for "preservation of
esaential citizen libertiesn depends of course on the list of
osOential citizen liberties. For the purpose of this study they
taken,as freedom of worship, speech, writing, study and teach-
of assembly and of associAtion for political and
Or purposes, including the bringing about of a peaceful change
Ma Olterang authority; freedom in choice of occupation; and
,aration of this draft for discussion frequent use has
. Of a typescript Memorandum of Mr. E.F. Schumacher,
tint in raferences by the letter ?Sn.
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freedom in the management of a personal iecome. The provizo
ezeludes the totalitarian solution of full etployment In a
soeiety coMpletely planned and regimented by an irremovabee
dictator. It makes the problem more compIex in many ways, ef
lehich four call for special notice.
0 0 ? ?
* Fourth, freedom in the management ot a personal income
railmes the issue which Lord Keynes has diade the centre of argu-
?Tilent among economists today of off-setting in one way or another
the savings made by innumerable individual decisions, so that the
.community as a whole returns "to the income stream jel each period
as melt as it received in previous periods"; failure to secure
this return involves 'fa cumulative downward spiral of incorLe
employment' 1. A totalitarian regime, even if it eeed money and
price and wage differentials to stimulate and guide individual
a04vity, might abolish freedom of saving. It might retaie from
the national income of each year that portion which it needea for
inypstment, i.e. for the sustenance of persons egased in making
inOpruments and materials of further produceion; ale mieht issue
to consumers money which like ration coupoas could be usea only
stioified periods and could not be saved. In a free society
ividuals must be allowed to plan their spending over their
leteas a hhole.
2theigpet; ism etegotommigts
e
... ere Teas a time when economists generally were regarded as
tmal: felI0w, as raisers of Objections and difficulties, as
".,
,e,210useWodiments of tiller Geist dereeetels verneiAtn. There are
Wdqpbt Mime eponomists who still abide by this tradition. The
-
ei4441ii "a titude, on this problem of full employment, is
ezVli The danger perhaps is of excessive optimism.
17: Aerial of economists is based largely on acceptance of
lysis of the factors determining demand for
he apsence of any simple painless mechanism for
A
avis and invOspunt,
4-44401-.1.4-L-ffaLi
experience of war reinforces the analysis of the economists.
elPress- doubts as to the possibility of abolishing
_P17044:40 the simple answer is that in Britain and in most
attlitrtes where it was once most serious, unemployment has
abo141Shed twice in lifetime of most people now 1iving--
1 idAriar and in the second World War. Even more
s-t way in which war presents itself in the United
0. ozency whidh raises the national incoele, that is
Aitional output of goods and services, to unprecedented
roo the depression nadir of -10 billions in 1932 to
$,44,10g7 and 156 billions in 1943. The later figures
rise vg ,prices, but none the less represent a
easet#
?
1r
e rise of real income, uncomplicated by need to alloe for
is this done? The essence of the process is that the
9, schedule of needs in order of priority, substfAuting
e e!Oeneos: ta production for those of the individual Leder-
01,- hes those needs with purchasing power so as to make
Ott ive demand. The State is prepared to spend without
gett1ug fuli and over-full employment.
ki1614.0011411ftilialladialti)114,06.100,41110944N141114011~1C1001wariliolillor seilosemtliworeeftsmo????npapolow
100n1 in Pbst-War Economic Problems, edited by
f cGraw Hill Book Company, New York 1943) p.37
.2..
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einy,eAtmentApszaggh
24. A'very common approach to the problem of full employment
'-':tpday is from -the side of investmont. It is pointed out that
the main recurrent cause of mass unemployment it, cyclical
fluctuation which affects primarily investment industries,
pamelynthose making instruments and materials of productiw.
activity of the consumer goods industries is relatively
stable, while.,the:activity' of capital goods or Imvestment goods
lIndtStries is highly unstable; such instability as appears in
the forter is mainly induced by the instability of the latter.
,tarthis the: Inference is often drawn that the primary Objective
ota,f1II3 employment policy should be the stabilisation of in-
vestment.
ciSm of Invqstment =Roach
25. -First, investment lea uo the production either or market-
Ole OnsuMerst goods and services or of non-marketable goods
,ita seriices. The first is futile unless there is a market, i.e.
.,.. , , . , -
; unless consUmers have steadily expanding purchasing power and want
5, %0e4a goods and ser-Vices their demand will bring about the necessary
?Investmentrwithout any special steps being taken by the State.
'Th-e'seCond.eform of investment evades the difficulty of needing to
flild'Abarketfor the product of investment. But it is open to
'tie othe'm objectives.
,
,, .,...
t., ,
l) The scope of such investment is narrow--the kinds of
--?,174. .-
.),,-.; labour-that can be employed by means of producing unmarketable
, .,, ,---N-
, 4i and services (i.e. roads, Schools, parks and other public
works)_Jwile'lialitdd. If fliictuation of private investment covering
k
whole range of dtrable goods industries is assumed to continue,
-,1-
4A-
0
- ' ve gk of the types named cannot be relied on to offset
this ., ,
. - 416-bation, e.t-de t'sby assuming also an impracticable fluidity
,
,
.,
*;_,:: . ? '
T11-P0Oucts-ofAuchinvestment are not as urgently
e4
h, marketable goods needs of citizens for ade-
t
, . , .,TI P4Q0 ,-., --,,,,. and clot,. t ,
OY0.4 4ahing rank before roads and
4iiAhem .144#741.4.sdhools., first in order to evade
Of e:p?ii' nsumersr purchasing power (directly
?12.ppiVes,YiS'a. Allure of social policy.
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in any discussion of post-war problems
e proote4t* for' international trade play a leading
i*:4,!,#ade is significant for all countries as a
the At:44114rd of. living by diviiion of labour:
,,-'110portanee,- to Britain since Britain with her
)1;014gettocioitiapt ;lust lave large imports of raw mater-
t* lotpad: and in the immediate aftermath of war
40tlyincease.d exports. Any full discussion of the
?014.4 Wade .14 relation to a policy of full
opookt in Britain would require another Memorandum
tri'01:.thereseAt Memorandum in length and probably
ex only a gew general points of view can
; 1
r
j4 '*od.nt of view Cando it is suggested, from
itor14 as a whole) some restoration of an
sysstiem of trade in substitution for
4 tipakaModic controls and Interferences is
12,
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410
=1,
4
'ilaoot desirable thing. Any such intertioLal zystem limolves
the reestablishment of 90Md f ? of iLternationaa aurreney or of
omajnised- relation between national curremies. This is the
$04ffict 'both Of the British veheme for an iLternetional clearing
lotiO associated with the name of Lord Keynes un 6 the American
sdheme associated with the name of Ir. White. ? .
364' The ideal system, or the world az a wholo as for Britain,
wo4d be a true international system admInistered by an inter-
fla.0onl authority both for clearing and for lending and applyimg
in the international sphere the principle Mach should be applied
in. the national sphere; that, so long as there is any unemploy-
ment; the, remedy for deficient effective demand for goods should
be -not restriction of supply but expansion of demand by suitable
fin4nciaI, arrangements. It is clear, however, that the possibil-
itr.:Of any full international clearing and lending ystem Is
problematic. Britain, while working for such a system, must oe
prepared :to make the best of a. world in which full international.
cOOperatiou is not achieved, must hope for the best from other
gauntries,- must be prepared for less than the best, meanwhile
must do the best herself.
ThWpractical general conclusions are:
= , (a) -Britain should herself adopt a full employment policy.
T40, is the greatestand most necessary contribution for any one
o make to full employment in the world as a whole.
e any powerful economic country to adopt a full employ-
polAcyp, is alowst certain to aggravate the difficulties of
cpunt40e; b exposing them to the contagion of cyclical
s
am n should eIplort with other countries the possi-
#t4ods of international cooperation of various
etetess.fOr making internationsl trade as large
r-as-possible, but should not at the outset of these
Ativt pledges or assent to general principles which
*It her from making the best of a relatively bad world.
,
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W. F. BEVERIDGE
VW?
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-
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Major General Praia Parker*
EsAttutive Director*
Illinots War Council*
US Vest Randolph Street*
Chicago 1* Il3in*ia.
D* r General Parker:
I have your letter about 111.? Lao
BillflagSIM and the persona hiatovy statement
for Mu stitch you ware kind enough to furnish
utt?
Sonata= seems to have unusual
quailification* and I icx hOperta that we ahall
be, able; to find a Plait* tOr him', I alimall pas*
oik,Itia tile to our 'Persomel Procurement Affiv.
00110$ *hi) *ill be in a position to dete'rmitie
vilsokt*Ce %hare are 4avir openings in whist bin
obtlities could hs utised, In making this
ifietottaination I shall 'awe thea' to bear in mind
ladt. endorsement or him*
Thou* Tau A!'or having called
grit Bennissen. to our atterlatiOrl* We are always
eLad to hear of any poirine litho may be of use to
US*
very sincerely yours,
Bonesiac
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ILLINOIS WAR COUNCIL
GOVERNOR! DWIGHT H. GREEN
CHAIRMAN
IMO WIEST RANDOLPH SIMI
TICLEPRerN2 CSAP801114 MOO
C i4 1 C A 0 0 ,1
Brigadier General Donovan
Office of Strategic Services
ladhington, D. C.
It has occurred to me that this
man, whose record I inclosetmay be of use to your
organization. He was my assistant secirets.ry 1929-
-1933 when I was in command of this Corps Area and
the 2d Army. He is highly educated, a gentleman?
equally at home in English and litssian and a good
Preach scholar.
He desires to serve and Should
be useful to your organization. Be made a fine
record with me.
?
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z; ?
OISMittelkik~trasivolbetv roe 1611.00wrIews so.4..:r4ao tot itaaVi latit
LEI) BENNIGSEN.
Personal likt.922.
Mem:.
Born February 19, 1903, in St. Petersburg, Russia. Father, Count George Bennigsen,
served in Preobrazhensky Regiment, Imperial Russian Guards. At outbreak of World War
I he was captured by the Germans in the battle of Tannenberg while serving as a 14rajor
in the 1st Znfantry Regiment. Upon his release as a prisoner he came to England in
1918 and enlisted as a Private in the British Army. He was later commissioned as a
Captain and transferred to the Murmansk front where he was promoted to Major and was
awarded the Croix de Guerre and Military Cross. Both he and my Mother are residing
in Cambridge, England. The family has a military background, its Russian founder,
Count Levin Bennigsen, having successfully fought against Napoleon at the battles of
Pultusk, Eylau and Leipzig, and unsuccessfully at Friedland. He was my great-great-
grandfather.
:Education.
Grammar school education partially completed in St. Petersburg, Russia, until our
departure therefrom in 1918. Took home training and passed matriculation examination
for the University of London in 1920. Two years at King's College, University of
London, Faculty of Arts. Did not graduate as I had to leave college and go to work.
Also took two years business training (evening school) at the London Polytechnic
Institute with a view of passing the Institute of Bankers examinations. This was a
four year course which was cut short by my departure for America.
Business Foqtarience.
Tivo years, 1922-1924, with A. Buffer Si Sons, London,
the capacity of bookkeeper.
- 10 months as bookkeeper in the lot National Bank of Aurora, Aurora,
10, years with Sears, Roebuck and Co., in various capacities, i.e.:
assistant manager, auditor. I am at present auditor of the Aurora,
Present earnings: g 3500.00 per annum.
a commercial banking house,
iii.?EzSiggita ice.
Se.rvad in the United. States Army from Dee. 9, 1924 to Dec. 8, 1933, inclusive.
Disoltargsd a iergeant, 2nd Machine Gun Squadron, Ft. Bliss, Texas. 12/8/27.
? ''sOttlkaged as Pre. S.pec.1c1.. Hq. Det. 6th Corps area, Chicago,I11. 12/8/30(
.Settsirged as Staff Sgt. DEM (OR) Hq. 6th Corps Area, Chicago,I11. 12/8/33.
*lug the period 1929 - 1933 I ,erred, as translator and assistant secretary to
or General Frank Parker, Corps Area Commander.
papers show ley birhplace to have been Aurora, Ill., in lieu of St. Petersburg,
This, was, done on the advice of a recruiting Sergeant in 1924, when I first
seed. H informed me that I could pass myself off as an American for the purpose
fitment and could then take out my papers.. After enlistment I found that it was
simple a matter to take out my papers.
(,,,written Ati letter to the Adjutant General of the army informing him of the correct
lace and requesting that my records be changed.
in
Ill., 1924.
department manager,
Ill., store.
?
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irk
ReanMetur stme.V.........sitoKrettit.esskYSOSIKA rOj'.4r:IIIMO S iNWON.1.?it
.arta.eleSle04111a41.
Miscellaneous Information.
have an exi.lellent knowledga of the Russian language which I speak, read and write
fluently. I also have a good knowledge of French, especially reading. I can also
understand it very well, but do not speak it very fluently. The latter can be easily
corrected by some practice. My knoldledge of German extends to two yeare at school.
With some brushing up it would be better than average.
I was naturalized in the Aurora City Court on Feb. 16, 1944.
?
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CONIFIDENTIAI
Lt. Colonel Dix
S/ Branch
Lt. Putzell
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1111?1000?11,ORPONI?MMRSIOACIMPAC r;?64r, 000e,
18 August 1944
In acco ance with the Acting Director; request
I have talked with Colonel Hoffman, Chief, SO Branch
who immediately agreed to the transfer of Ur. Moe
Berg from the staff of SO Branch to that of SI Branchl
effectiVely immediately.
Copies of this memorandurm are being 3ent to
Colonel Hoffman and to Special Funds Branch.
?":r
6Cs Colonel Hoff
o'pecial
Files
ranch
B. J. Putzell, Jr*
USNR
AsAistant;'Ex.scutPe.Officer
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General Donovan
* Lt. Col. J. H. Rosenbaum
Dr. Lubin has requested the loan of the services
of Mr. Abram Bergson, who works for Dr. G. T. Robinson in
?s: A. If agreeable, Mr. Berg8011 would go as one of Dr. Lubin's
start on the Reparations Commission. The request was made by
Lubin. for the loan of Mr. Bergson's services for a three
?
Month peiviott. Through 14r. Ream the mitter is being taken up
with Dr. G. T. RobiAson.
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CONFIDENTA,
24 March, 1945
General Donot. iraz
Col. J.. E. Rosenbaust
1.4.1)14n *Las re:vested the loan of the services
Ort..BergsOnt. worIce fo*,, Dr. ar. T. Robinson in
14r. BergpOnuld. go as4 one of D.
ertreiteXilet imbues
pr olt
thAiil,TC'-' ''atiOns C.1,00014:0; The re'quest limo ma. e by
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. Ao12141(*Illetki.,COMMUNICATIONS TO,
. `i ' AtigigittagrAAY op Mat
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DEPARTMENT OF STATE
WASHINGTON
reply refer to
:DP
?
JAII 12 1945
lay dear General Donovans
Reference is made to your lettc: of
DEpcember v7, 1944 to Ur. G. Rowland. Shaw con-
'concerning the reimbursable loan of ldr. Abram
Bergson to the Department of State.
Your usxderstanding as to the purpose of
M. Bergson! a detail to this Department is
correct in every respect. In order to expedite
the work., it would be helpful if the loan could
become effective- as soon aspossible and I
thall greatly aPPreciate it if you will inform me
at the earliest date it will be- possible for
1dr. Bergson to report to the Department of State
rOtw this assignments
Sincerely yours,
For the Secretary of States
(:4(1.AW,44 OLAMitims",
Dem Aeheson
Assistant Secretary
?
in0 General William 3. DOnovan,
Lector,
Office olv Strategic Services ,
Viaslapoton, D. G.
,
'4,huirtp,--akrearair-ovarcititias4,
III?
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A, , J. 'Jr'
7 DoOembarr 3.044
Honorable G. Howland Shaw
Asaislent Secretary
Want of State
Wisabloston, D. 04
MO' deer Mr. Shy
I hate aim very oareful consideration, to your lletter
of 21 govenbor 1944, suggesting that the services of Kr.
rgikeBergson be made ayallfible to the Department of 13tste
ttJ ext402 of onewithirel 'of` hia tiaile for AM indefinite
ei cm the 'basis ii.tf a reisatUrrsabls loans
Thin suggeeied arranssitast itOs been the subject of var-
tout Ooltifersatio*a between rtiom's4ntat1ves 'of this ?trios and
th 1 ,,
dent of State. It 14 .olar. understanding, on the ba4s.
tailk 0 Vase 44:gaVersation.e, that the shier purpose of the
Wed arrange's:at would be tnable Mrs Bergson to main
AL ato'e digatteStiOn betwora, 'the trial Division, of the Offioe
1b D ertment, and to faollistalle a MaZialliUM utilization of
that swivel:I. staff of %he USSR Division and partioularly
f t11: 10 LO elitbtlivislog4 in the study of ituesian, a comma a
et 111160 in itnneettOne.vdth the operational of the
Ie?ts*in f * matter is in any wary at ye.
your mono we iphould greiatly appreolate your constants
fi:1 the further consideration of the projected are,
tbi?understanding, as above B1St4)4 iti oorrect, we
LL b? very glad to have the proposed arrangement take effect
ittely-f you so tietaret
Sincerely yours,
William ,Donoven
Director
"
311
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'MOS
CA,
Pitt 4;5*
iosupsidsWillimP001,111,50"4, r??? I
OFFICE OF STRATEGIC SERVICES
sEemoximarom D. C.
Ell 1 t' ?
1944 DEC b PM 24 CONFIDENTIAL
5 December 1.944
?
OSS
MEMORMTV
TO : Lt. Auchincloss
BROM : William L. Langer
In accordance with your request
of 28 November, I send herewith proposed draft
of reply from General Donovan to Mr. Howland
Shaw in regard to the State Department's request
for the services of Mr. Bergson.
tf)dem,61J
William L. Langer A
Chief, Research and w
Analysis Branch
attachments
0?200M
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DEPARTMENT Or STATE
WASH I NGTON
- reply refer to
DP
NOV 23 1944
My dear General Donovan:
The Department of State is very desirous of
having the services of Mr. Abram 1Bergson, who at the
present time serves as Chief of the Economic Sub-
division, Union of Socialist Soviet Republica Division,
P,-eir? $6300 per annum, Office of Strategic Services,
for special work in the Division of Pidancial and
Monetary Affairs.
The loan to the Department of State of
Mr. jiergsongs serVices at the earliest possible date
to the extent of one third of his time for an Indefi-
nite period of time would. be greatly appreciated. The
MO. of Strategic ServOes would be reimbursed Inr
the;09tpartn#41,t-of State for one-third of the salary
whi*.24tA; Bergson Jr:ieceiVe4from the Office of Strategic
_,J;ciet; namely, $65OO. per annum. plus ?overtime corn-
,
enOktion?aliowed by law,;.4rotit appropriation for salaries,
epiirtrnit State.- ?
.Bergson would serve in the Division of Finan 4.?
4.4
tlitonstery litt#tra:-Pits Consultatit on Ruscian
eonomic problems, 0/44..4KXal.)4 in the fields of recon-
strueti?land rehatit'Iltd0'.6n, and finance, s fell as
.13 Ott interests in t49, reconstruction and other
coteta and Southwestern hrope.
:-;O:t his background - and experience he appease.; to
4ellfnit 41,341tOcation3 for the work which the
ir;
lent desires hfiti to Perform.
0: or, General William J. ?Donovan,
DL'ectbr, Office of atititagiii Services,
and 4 Sti*Olt.g!?, liOrthviest,
Washington* tie a.
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Ilteora-
k
1r you approve Mr. Bergson's detail to the
Delpartment of State under the conditions set forth
above, I Shall appreciate being informed. You dhould
also let me know the date he could report to the
Department of State for duty.
Sincerely yours,
For the Secretary of State:
G. Howland Shaw
Assistant Secretary
40
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r4-?,
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104:000ion
004., Nrt# Secrettolt
30 June in witiAK
or Dr. Abviditi
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(ECRETARIAT
INTEROFFICE MEMO
3
igan 1944 JUL 5 P4 3 riligTE:
In accordance with your request of 30
June, I send you attached hereto a draft of a
proposed reply from General Donovan to Secretary
Stimson with reference to his request for the
part-time services 4.ro# Dr. Bergson. I also re-
turn herewith the copy of Mr. Stimsonis letter to
iii
the General which you forwarde to me.
1 . I i
104.4) .fi r
_) Zli
1 3.'. iam .w. Langer
Chief, Research arta/
Analysis Branch (4
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roittaar
oretarXat
_
'Oro' Berg11011
e. WOlda- IOU Consider the attaob,ed, litter from the
eit-retartr of Vier mcl prepare a reply for Colonel Buactont
ts
tare*
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WAR DEPARTMENT
WASHINGTON
The services of Dr. Abram Bergson, Chief of the Russian
Division, Office of Strategic Services, P-6, $6600 per ennuny
are desired on reiwbursable detail for coo or two days a week
for a period of approximately twelve "awls.
Dr. Bergson's knowledge of the economic and inctmwtrial
eituatton in the Soviet -anion will be of assistance to the
Axmvindustriel College of the War Department in formulating
its courses.
If the Office of Strategic Services conaurs in this
rimposto the Office. of the Secretary of War uill submit a
,oertifiod stabmwmib a Dv. Bergson's attendance on the basis
of *Joh the Office of Strategic Services should wuUmit vouchers
to the Office of the Personnel Manager, Office of the Secretary
of 'Oaf.
Release 2013/12/18: CIA-RDP13X00001R000100020008-4
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OFFICE OF STRATEGIC SERVICES
nmEOFFICE 14EMO
TO: 0,44#) OWN* 16 SOM
Re.t-i42v#'
DATE: ton Mk
SUBJEar: OSS Orders
1. You are hereby authorized and directed to proceed to the
destination indicated in your official travel orders, where
you will report to lawatiddmiudiatioLgathat____7____,
. You
(?Office or BrancTET---------
for duty -with the
vill thereafter act under his orders and direction.
MOM
_-( 80621
, ?
William J. Donovan
0***400. DiFFEE-07--
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OFFICE OF STRATEGIC SERVICES
INTEROIFFICE MEMO
DATE: rot tali 1944
TO: atinerel 'MIMS
FROM: Colonel Conway
%POEM /Sgt. Ininabetti Bennett
General Robertet 0.3 just phoned se to segp. tbat he had discussed file
release or Sgt. Bennett *with those 92 authority's cad that he hat beseibletly
tursea dale. I told his that / didn't thing, there was mon more that ite
s?4d do since be had exerted Ids good influence in cur behalf. 110711~0
s it you think we ought to, it seems to se about the only nay left mould be
fOr you to call General Bandy,' I think if I called Ma that General Roberts
would Oil up eet about it. Tbe other angle is perhaps to let the natter
drop tor a while end this maks*cflothe? vas%
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Declassified and Approved For Release 2013/12/18: CIA-RDP13X00001R000100020008-4
This morning I went over to see General Roberts under wham Sgt. Bennett
serves and I told him that you had met the Sgt. and was quite taken with her alert-
ness and "'enthusiasm and felt that if it was possible to get her that she would fit
admirably in a 'pob under Colonel Davis. General Roberts was most understanding and
said: he would like very much to agree to your request if it could be done. He
stated that he had a difficult problem because of he fact that Ile has to get rid
of his enlisted men and he is losing a master sergeant and plans to use Sgt. Bennett
in his place. i really think he will make a sincere effort to comply with your
reouest.
Declassified and Approved For Release 2013/12/18: CIA-RDP13X00001R000100020008-4
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FAT tt":5-,
TO cg OF STRATEG I C SERVICES
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? - OFFICE OF STRATEGIC SERVICES
OFFICIAL DISPATCH
12 PEWIT/An 45
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?a.
OFFICE OF STRATEGIC SERVICES
dIFOR ACTION)
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DISTRIBUTION
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DEFERRED
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RECEIVED IN CODE OR CIPHER
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? - OFFICE OF STRATEGIC SERVICES
OFFICIAL DISPATCH
12 PEWIT/An 45
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.;(08
?_ TO
;-?
?a.
OFFICE OF STRATEGIC SERVICES
dIFOR ACTION)
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.s1
V4 ShPemaker
4ig,COmmissioner
ation and Naturalization Servioe
traento JUStiee
eliphia 2* Pennsylvania
.4ear Ur. Shoemaker:
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. ._
4k(r..,eeriaing nxionxii,iF?:posteridorp and GySbert den, Bee-
'uh inadVerttraae* .,.#4. unkponn to 14:. Goff 'of tb.is
-:,- t'he matter of '',,their calearanoe with the Department
' Atit been clotiPle*ed prior to their arrival at
*e: jjoinE1 :te,Ste.te Department of all the
adivisell us that the entry of Messrs,
-an, 13e0e31lto1it ILS.s the Department's approval-?
ttCn o' this% tip1t0Val iiillund.oubtedly be sent to your
zthn b3' the DpDeattment or state.
,et the inoonvenienge which, this mat*.
eip
has cause
Declassified and Approved For Release 2013/12/18: CIA-RDP13X00001R000100020008-4
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1?
V
,.4earned of your courersatiOn with Miss
' - Arrival in thAts ,ogontry oe.Etienne
SOO*, .1*,-eill be appreciated
- e: WOW **pie: a waiver or visa for
.,-oneditch .1.11*tictpas* They. arrived
'-- - ' had 'ix tlitir possession
A,
.Kerican militatry orders,
-.---exit permits and clearance
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has bent issued and the ruzigra-
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Declassified and Approved For Release 2013/12/18: CIA-RDP13X00001R000100020008-4
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DEPART ENT OF STATE
ASH1NGTON
? March 7, 1945
coommuu
\4)(
fay dear General Donovan:.
Recently the Office of Strategic Services has been
instrumental in the entrance of Etienne Oostendorp and
4sbert den Besten, nationcls of the Netherlands, into
the United States without visas of gay kind and without
a. waiver from the Department of State. The persons men-
tioned above arrived at Boston on a Navy transport, hav-
ing been previously discharged from the Netherlands armed
forcear and -were evidently sent to this country for six
--months* training with the idea that they would later be
sent ,to- the Pacific war area. The immigration office at
Bon reported the -matter to the Commissioner of Immi-
,gration at Vhiladelphiav stating that they had arrived
10#444,pertission to enter the United States and the
TIOartMnt of State was asked for a waiver, The Depart-
tql*t-Applipd that it would not waive for these individuals
tO t kr,teiv more about them. In the meantime, Lt. Goff,
_ /rot the Transport Section of OSS, took the matter
?r.viti4 the immigration officials and the men were ad-
ed without further examination,.
Illy office was advised informally by Mr. Richard
Oputhgate of the Office of Strategic Services that a
e had.been made in procuring the admission of the two
.eA$ vItbout taking up the matter with the Department
-wte and that the mistake was regretted. Mr. Southgate
laso'gave assurance that there would be no repetition of
eitor.
?
General William 3. Donovan,
The Dive0or,
Otfibe of Strategic Services.
10/0004114e2WW/MONASSOatairSifT4-4.1.
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Declassified and Approved For Release 2013/12/18: CIA-RDP13X00001R0001 nnn7nnnR_Lt
Declassified and Approved For Release 2013/12/18: CIA-RDP13X00001R000100020008-4
-2-
appreciate the promptness with which your office
communicated with the Department, and 1 trust that in the
future OSS will consult beforehand with the Department of
State regarding any aliens whom it may desire to bring into
the United States.
Release 2013/12/18: CIA-RDP13X00001R000100020008-4
Declassified and Approved For Release 2013/12/18: CIA-RDP13X00001R000100020008-4
-2-
appreciate the promptness with which your office
communicated with the Department, and 1 trust that in the
future OSS will consult beforehand with the Department of
State regarding any aliens whom it may desire to bring into
the United States.
Release 2013/12/18: CIA-RDP13X00001R000100020008-4
Declassified and Approved For Release 2013/12/18: CIA-RDP13X00001R000100020008-4
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OFFICE OF STRATEGIC SERVICES
?
WA
e/5(tog" / 04/(riarcla 1945
SHINSMA C.
TO: lit* Col. James W. Kirk
FROM t Thomas Damb erg
SUBJECT': Oostendorp and Den Besten
.1,2t is our usual procedure to check on all aliens leaving or
_coming, to this country with the State Department by clearing
tj10*. 'through Special Relations.
proper channel is for the branch to take necessary action
?
Special Relations and inform Transportation Office.
i4-ro0rdingly.
Tit tibia ease the branch telephoned me and I failed to contact
Special_Relations due to unfortunate circumstances.
Atac is a, report from Lt. Goff who mst the men on their
arrival in Boston, believing all was in order.
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