711.00111 Armament Control/1230a: Telegram
The Secretary of State to the Chargé in France ( Wilson )
120. Miles M. Sherover,39a acting on behalf of the Spanish Government, entered into a contract in November, 1936, with the Bellanca Aircraft Corporation to purchase 20 single engine planes of a special type powered with Pratt and Whitney engines. The planes were paid for by Sherover with money provided by the Spanish Embassy in Washington. None of the planes had been built, however, before January 8 when the exportation of arms to Spain was prohibited by law. The Hanover Sales Corporation, of which Sherover is President, registered on March 9 as an exporter of arms. Sherover states that he has sold the planes to Air France and that they will be shipped from New York to Havre via the United States Lines in batches of three or four beginning probably on March 17. He states further that he has impressed upon the purchaser that the planes must not be transshipped to Spain.
These facts are furnished you for your information and such discreet use as you may deem appropriate. Full report follows by pouch.40