File No. 863.852/299

The Acting Secretary of State to the Acting Director of the Bureau of Enemy Trade, War Trade Board ( Fuller )

Sir: I acknowledge the receipt of your letter of May 22, 1918, in which you express the desire to be informed as to the State Department’s attitude towards an application of Phelps Bros. & Co., of New York City, for a license to transmit an amount not exceeding $800,000 to Fratelli Cosulich, Vienna, Austria, for the account of the owners of eight Austrian ships purchased by the Kerr Navigation Co.

The Department felt at the time when the question of remitting the original purchase price of these ships was discussed that we were bound to facilitate the conclusion of this transaction. The considerations which led the Department to adopt this attitude several months ago have lost none of their validity and would appear to apply with equal cogency to the present remittance. The Department, therefore, recommends the issuance of the license necessary to the making of this remittance.

I am [etc.]

Frank L. Polk