711.00111 Armament Control/Military Secrets/2158
The Secretary of State to Gibbs and Cox, Inc., New York, N. Y.
Sirs: I refer to my letter of September 9, 1939,9 and previous correspondence, in regard to the project of constructing vessels of war in this country for the Government of the Union of Soviet Socialist Republics, and have to inform you that I am in receipt of a letter of September 279 from the Acting Secretary of the Navy in which he states—
- (1)
- that heretofore the Navy Department has, in connection with this project, confined itself to expressions of objection or non-objection on the grounds of secrecy involving the national defense;
- (2)
- that the plans and specifications transmitted to the Department of State with your letter of September 59 are being studied as heretofore with reference to the question of military secrets of interest to the national defense;
- (3)
- that on completion of this study the Navy Department will be prepared to state its position with reference to matters of military secrecy;
- (4)
- that although there has been no change in the Navy
Department’s policy, there do, however, appear to be certain
other aspects of this project which should be brought to your
attention and by you to the attention of the representatives of
the Soviet Government who are dealing with this matter, viz—
- (a)
- that a survey of existing shipbuilding facilities in this country indicates that the new construction programs of the Navy and of the Maritime Commission will tax those facilities to the utmost; and
- (b)
- that the Navy Department is already receiving advices from certain machinery manufacturers that existing and prospective orders may result in obligating remaining available capacities to the detriment of future Navy requirements.
From the statements in the letter from the Acting Secretary of the Navy, it is clear that in his opinion there would seem to be serious doubt as to the possibility of construction at this time of the vessels of war which the Soviet Government desires to purchase as there is a strong probability that the demands of the Navy Department and of the Maritime Commission on American shipbuilding will require the use of all of the shipbuilding facilities in this country.
Very truly yours,
Chief, Division of Controls