File No. 894.85/20

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


Your cable April 4, 1 a.m. Following drafted by War Trade Board expresses decision of United States Government:

We accept three ships 9,000 [tons] each on the basis ton for ton Japanese old contracts for steel, we to pay $200 per deadweight ton for ships. Will accept delivery one November and two December, but extremely important that earlier delivery be made. Trust you can so arrange. Will authorize contract for 32 ships aggregating 253,800 tons at $175 per ton, built of new steel, at the ratio of exchange one ton of steel for two tons of, ships. While we will accept deliveries named in your cable as follows: one ship 9,000 tons January, four ships totaling 32,700 tons February, eight ships totaling 75,200 tons March, eleven ships totaling 79,700 tons April, seven ships totaling 50,400 tons May, one ship 6,800 tons June, we urge special effort to secure earlier dates. This is most important feature of the transaction. Will accept the five ships between 5,000 and 6,000 tons. Must be understood all these ships are to have sea speed of 10½ knots per hour, steamers to be fully laden and this average to be maintained for period of 24 hours, and that inspection and acceptance of workmanship and materials is to be approved by United States Shipping Board representatives at Japanese yards; that all vessels are to be classed 100A1, Lloyd’s classification, and that shipbuilders assume responsibility for delivering the steamers in good order in United States port. We agree to pay 20 per cent on signing contracts and balance of payment to be arranged when each contract is signed.