195 Code/83
The National Recovery Administrator (Johnson) to the Assistant Secretary of State (Sayre)
My Dear Mr. Secretary: Referring to your letter of the 5th instant, enclosing a memorandum concerning the proposed code for the shipping industry, in which attention is drawn to the possible conflict with treaties that may result upon application of this code, and also commenting upon the possible injury to American commerce resulting from the stabilizing or fixing of minimum rates for cargoes destined for foreign ports, I beg to inform you that the proposed General Code for Shipping covers not only the foreign commerce but all domestic commerce which includes inland waterways, coastwise and intercoastal shipping, and service vessels.
The General Shipping Code is not mandatory with regard to the fixing of rates. Rate schedules and regulations will be considered in connection with the formulation of the divisional codes which will be developed to cover specific trade routes or services. Therefore, there can be no possible conflict of treaty rights or injury to American foreign commerce until the divisional codes are effective. When these [Page 700] divisional codes are under consideration the deputy in charge, Mr. Weaver, will be glad to discuss with the State Department all matters affecting treaties and policies.
The Deputy Administrator in charge of this code has written to you calling your attention to this provision and asking that steps be taken to determine definitely the question of what actually will conflict with treaties in order that when the divisional codes are under consideration conflicts with treaties may be prevented.
In the light of the above discussion, it seems proper to proceed with the preparation and approval of the General Shipping Code and defer the consideration of treaty questions until the divisional codes are prepared.
Sincerely yours,