File No. 894.85/9

The Secretary of State to the Ambassador in Japan ( Morris)


Your March 26, 1 a.m. You are authorized to execute contract and employ counsel. We will pay 20 per cent upon signing contract, payment to be made United States. We approve clause 1 with understanding that it refers to plates and shapes ordinarily used in ship construction. We approve clause 2. We approve clause 3. Clause 4 satisfactory. We approve clause 5 excluding Vancouver. Clause 6 satisfactory. Clause 7—Materials referred to in this clause also scarce here and before making unqualified commitment we must know approximately quantity required and approximate dates of delivery. Clause 8 satisfactory, but will depend upon you for financial responsibility of each shipbuilder.

Second proposition: Will accept few 5,000 ton and 10-knot speed vessels but we prefer larger capacity and greater speed mentioned in earlier cable. Presume this concession required for some particular yard. Can you estimate number of ships to which this concession would be asked to apply?

If Japanese have any further ships for delivery prior to October 1 you are authorized to buy same on same terms as proposition 1 in our cable of March 19 [20].