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                            -3-                             
 
 
We can submit to you studies which in our opinion will demonstrate that
these propositions and others leading to the same conclusion are false.
 
 
This thing needs to be dragged out into the open.  I feel so deeply
about it that I speak strongly.  If we don't face it I am just as sure
as I can be that we are going to let a lot of hollow and hypocritical
propaganda lead us into recreating a strong Germany and making a foe of
Russia.  I shudder for the sake of our children to think of what will
follow.
 
 
There is nothing that I can think of that can do more at this moment to
engender trust or distrust between the Unted Stated and Russia than the
position this Government takes on the German problem.
 
 
Henry Morganthau (signed)
 
Secretary of the Treasury. 
 
 
 
P.S. I have sent a copy of this letter to Ed. Stettinius.
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