File No. 863.852M36/10
The Commissioner of the Shipping Board ( Page) to the Counselor for the Department of State ( Polk)
[Received January 10.]
My Dear Mr. Polk: Yesterday you received a memorandum concerning the status of the Austrian steamship Martha Washington1 One reason why the Board, through its Admiralty Counsel, advised against seizing her, was the fear that our negotiations for Austrian tonnage in Spain might be adversely affected by such action.
It appears to us now, however, that there is a way in which both the question of the Martha Washington and the other vessels can be brought to a head quickly, and with that object in view we have taken Mr. Phelps into consultation. The enclosed cablegram is the result of our conference and is forwarded to you for approval.2
In this cablegram Phelps indicates that he might sell the Martha Washington at the named price, if authority to sell this vessel is coupled with authority to sell the Spanish vessels. If a firm offer should come back on this basis, we stand ready to forego the exercise of our power to seize the Martha Washington. If no firm offer comes, we are not precluded from seizing her.
I am strongly of opinion that this cable will tend to clarify the situation, and if such course of dealing with Austria at the present time meets with the approval of the Department of State, I should like to recommend that it be sent.
Very truly yours,