Foreign Relations of the United States, The Soviet Union, 1933–1939

711.00111 Armament Control/Military Secrets/1955

The Secretary of State to the International General Electric Company Inc., New York, N. Y.

Washington, November 8, 1939.

Sirs: I refer to the Department’s letter to you of July 20, 1939,¹¹ in regard to the sale for export of certain equipment for destroyers.

Although, as stated in the Department’s letter to you referred to above, military secrets of interest to the national defense are not involved in this equipment, and it may therefore be legally exported, nevertheless, I have to inform you that I am in receipt of a letter of November 3, 1939, from the Acting Secretary of the Navy,¹³ in which he states that a further study of the facilities for the manufacture of propelling and auxiliary machinery indicates that any further expansion of the United States Navy, plus continuation of the present program of the Maritime Commission, will undoubtedly tax to the limit the facilities for manufacturing marine propelling and auxiliary machinery, and that in view of the present general trend of opinion in favor of further increase of the United States Navy, the Navy Department has no alternative than to request that you be informed that any extensive obligation of such construction and manufacturing facilities for foreign account may react unfavorably against the defense interests of the United States.

The Acting Secretary of the Navy further states that the revised attitude of the Navy Department with respect to the industrial field does not indicate any change of policy, but he requests me to inform you as to the probable future demands on your capacities by agencies of the United States Government, in order that you may be guided accordingly in the matter of obligating facilities which may become essential to our own defense measures.¹⁴

Very truly yours,

For the Secretary of State:

Joseph C. Green

Chief, Division of Controls

11. Not printed, but see the memorandum of July 27, 1939, by the Chief of the Division of Controls, p. 893.
13. Not printed.
14. Similar letters were addressed to five other manufacturers on this same day. Commander Carney informed the Chief of the Division of Controls on November 9, 1939, that “the purpose of the Navy Department’s letter of November 3 was to furnish to companies which desired to break off negotiations with representatives of the Soviet Government a suitable excuse for taking such action.” (711.00111 Armament Control/Military Secrets/2285)