867.113 Jones & Lamson Machine Co./4
The Secretary of State to the Special Adviser to the President on Foreign Trade (Peek)
My Dear Mr. Peek: I enclose a copy of a letter dated September 26, 1934,74 from Mr. Ralph E. Flanders, President of the Jones and Lamson Machine Company, Springfield, Vermont, regarding the financing of an order for machine tools which the company hopes to obtain from the Turkish Government. As will be noted from Mr. Flanders’ letter, the machinery which his company hopes to supply to the Turkish Government is to be used for the repair and maintenance of artillery and small arms.
As you know, it is contrary to the well established policy of this Government to encourage the exportation of arms and munitions of war. This Department is of the opinion, moreover, that the granting of credits or other forms of financing by any agency of the Government for the exportation of arms and munitions of war would be tantamount to encouraging such exportation and hence contrary to the policy in question.
Since the machinery which the Jones and Lamson Machine Company proposes to supply to the Turkish Government is to be used for the repair and maintenance of artillery and small arms, it would appear to come clearly within the category of “arms and munitions of war”. Accordingly, this Department, while expressing no opinion with respect to any credit risk which might be involved, is of the view that it would be contrary to the policy of the United States for any public agency to finance or otherwise to encourage the exportation of the machinery which the Jones and Lamson Machine Company proposes to make to Turkey.
Mr. Flanders is being informed that his letter has been referred to your organization and that you will doubtless communicate with him in due course.