File No. 411.57N83/26
The Vice Chairman of the United States Shipping Board ( Stevens) to the Counselor for the Department of State ( Polk)
Dear Mr. Polk: The Shipping Board, as you are aware from Mr. Rublee, has directed the corporation to proceed at once to take over to the Government all merchant ships under construction in the steel shipyards, whether for foreign or American account. I notified to-day by telephone both the Norwegian Ambassador [Minister] and the English Ambassador. I explained that this action of the board would not affect the final disposition of ships that were building for foreign account or affect the determination of the rights of those who held contracts. Neither Ambassador protested against the proposed action. I see no difficulty myself in immediate action. Both Mr. Hurley and Admiral Capps, who have had little time to [Page 614] consider the subject, suggested that a statement from you that there were no international objections to such a course should be secured.
I have seen and examined with care the treaty with Norway and Sweden. It seems to me very clear that that treaty did not refer to ships under construction in this country. I hope very much that we may hear favorably from you to-day. I hope also that you do not feel that I am too insistent about this matter, but there has been so much delay in the commandeering program and it is so essential, that not a moment should be lost.
Sincerely,