711.00111 Armament Control/Military Secrets/1864

Memorandum by the Chief of the Division of Controls ( Green )

Mr. Scott Ferris, attorney for the Carp Export and Import Corporation, called me by telephone this morning. He said that he had called at the White House yesterday to discuss a political matter with the President; that in the course of their conversation the President had referred to the battleship which the Soviet Government desired to have constructed in this country; that he had then given the President a resume of developments during the last year in connection with the desire of the Soviet Government to purchase vessels of war in this country, stating that, although he had nothing but praise for the way in which the Department had dealt with him and his clients in connection with this matter, he did feel that the Navy Department intended to pile up difficulties by which action was continually being delayed and might eventually be prevented; that the President had said that he understood the situation and the tendency of some officers in the Navy Department to want to have considered as a military secret every possible item of naval equipment; that the President had said that he wanted this deal for the destroyers to go through; and that the President had directed General Watson to put him in touch with Captain Callaghan, who would be instructed to do everything possible to assist him. Mr. Ferris said that General Watson had this morning introduced him to Captain Callaghan; that he had accompanied Captain Callaghan to the Navy Department; that, in the absence of Admiral Leahy, Captain Callaghan had called on Admiral Furlong and had informed him of the President’s wishes; and that Admiral Furlong had said that he would discuss the plans and projected equipment for the destroyers and flotilla leaders in detail with Mr. Gibbs, who is expected to call at the Navy Department next week, and tell him exactly how far the Navy Department can go in releasing for export all of Mie items necessary for the construction, armament, and equipment of the projected vessels. Mr. Ferris said that he felt that his conversation with the President had accomplished a great deal toward bringing his clients’ business to a successful conclusion as he had gained the impression from what Captain Callaghan had told him that the President’s intervention in this matter had resulted in changing Admiral Furlong’s attitude to an attitude of cooperation.

Joseph C. Green