711.00111 Armament Control/Military Secrets/2389

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

Mr. Guy Vaughan, President of the Curtiss-Wright Corporation, called me by telephone from New York this morning. He said that he was about to give instructions that the company should break off negotiations which it has been carrying on for sometime with agents of the U.S.S.R. for the sale of a manufacturing license for one of the types of propellers which the company manufactures.

I pointed out that the statement which the President made on December 2 referred to exports and not specifically to manufacturing licenses.23

Mr. Vaughan said that the exportation of only two or three sample propellers would be involved in the proposed transaction but that, nevertheless, he was so outraged by the behavior of the Soviet Government in its attack on Finland that he was going to call off the whole deal. He said that it was the first time in his business career that he had ever foregone with enthusiasm a chance to do business. He explained that, if the proposed transaction were entered into, it would mean a down payment of $640,000 and further payments later of $950,000. Nevertheless, he was unwilling to do business with such a government.

Joseph C. Green
  1. For text of this statement, see Department of State, Bulletin, December 16, 1939, p. 686.