File No. 863.852/464

Memorandum of the Counselor for the Department of State ( Polk)

Mr. Haight, representing the Austrian Line, showed me a telegram from Buenos Aires, dated April 17, in reply to his cable of April 16, as follows:

We think telegram received from Barcelona must be delayed one as we have received just now other from Barcelona authorizing sale Laura, Alice on best possible terms without mentioning any restrictions. [Page 448] Under the circumstances we consider best confirm sale collecting at once purchase money of the seven steamers committed leaving for the present Virginia, Martha Washington free. Laura, Alice under offer here.

I told Mr. Haight that this Department had no objection to selling the Austrian ships to the American owners; that this Department knew of no restrictions and recognized no restrictions. Mr. Haight stated that he had full authority to sell the ships without restrictions—that the ships were worth more than with restrictions. I told him that the Shipping Board, Mr. Chamberlain of the Bureau of Navigation, and this Department had no objection to the sale, but I warned him personally and confidentially that I could not guarantee and would not guarantee that this Government would not under certain circumstances requisition the ships for such purposes as the Government might wish to use them.