711.00111 Armament Control/624
Memorandum by the Assistant Secretary of State (Moore)
Some time before the President went to Georgia, he expressed distinct disapproval of the tanker36 being allowed to carry a cargo of oil to Italy.
During his absence in Georgia, the matter was brought to my attention from the White House, and I have reason to believe that subsequently, and perhaps previously, it had been brought to the President’s attention.
I had frequent talks with Mr. Schell, of the Department of Commerce, and on the President’s return to Washington, I inquired of him, through his personal secretary, Miss LeHand, whether he had reached any different conclusion as to what should be done, and Miss LeHand replied that he desired to leave the matter entirely to the determination of the State Department and the Department of Commerce. This morning I sent Miss LeHand a note as follows:
“My dear Miss LeHand: I am again referring to the matter of the shipment of oil to the Italian Government on the tanker Ulysses. Since our telephone conversation yesterday afternoon, I have ascertained definitely that as early as September, 1935, the owner of the vessel was expecting to arrange for such a transaction, and he placed the tanker in dry dock, where it was reconditioned at an expense of certainly not less than $25,000, and perhaps as much as $40,000; that on October 25 the vessel was chartered to the Reed Company for a voyage to Italy, and that on the same date the Italian interests entered into an agreement with the Reed Company for the vessel to carry a cargo of oil to the Italian Government. If the carriage of the oil is forbidden, the Reed Company will be liable to a suit for damages; the owner of the vessel will almost certainly look to our Government for the payment of damages; and the prospect of the vessel being kept in business so as to afford its owner some opportunity of paying the Government’s mortgage will be gone. It is thought by the Department of Commerce and the Department of State that we should not stand in the way of the transaction being completed. You will bear in mind that October 25 was prior to the announcement being made with reference to the shipment to the belligerents of five specified articles, one of which is oil.
The only reason I am writing you is that I wish the President to have all the facts, and if he desires to do so, confirm the understanding you gave me yesterday that he leaves the matter to the determination of the two departments mentioned. I hope on receipt of this you may be able to see the President within at least an hour or so and telephone me.
Yours very sincerely,”
Late this afternoon Miss LeHand telephoned me that “The President approves the recommendation.”
In view of the circumstances of the case, the Secretary of State, if the Secretary of Commerce concurs in his opinion, believes that the tanker should be allowed to proceed with the cargo of oil.37