File No. 894.85/33

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


War Trade Board No. 11.

Your No. 4, April 22, 5 p.m.,1 and ours accepting your proposition. We understand you have now closed the entire 380,000 tons of ships to be built. Proposal number 1 for 100,000 tons, one ton steel to one ton ships on which contracts are now being signed. Proposal number 2 being 27,000 tons one to one on which we agree to your price of $212.50 and 127,000 of American Government steel, one ton steel for two tons ships at price of $175 for ships. You have still to cable us the delivery dates as worked out on these 253,000 [254,000?] tons of ships to be built out of steel at American Government prices.

We still have a balance of old contract steel of approximately 150,000 tons on which we wish to begin new negotiations along the lines of present agreement and recommend your going into the matter further as understand probable additional deliveries of about 100,000 tons ships can be built in 1918. Please cable us result of your efforts on this third and new proposition.

  1. Not printed.