711.00111 Unlawful Shipments/282
The Secretary of State to the Chargé in Canada (Simmons)
Sir: The receipt is acknowledged of your despatch no. 2629 [2529] of September 10, 1938,38 transmitting a copy of a note of September 9 from the Department of External Affairs of Canada giving a blanket assurance that arms, ammunition, and implements of war exported under license from this country to the Canadian Car and Foundry [Page 362] Company, Limited, will not be transshipped from Canada to any country to which the export of arms, ammunition, and implements of war is prohibited under the laws of the United States.
Relying on this assurance, the Department will henceforth grant applications for license to export arms, ammunition, and implements of war to the Canadian Car and Foundry Company, Limited, which are presented by properly registered applicants without requiring specific assurances in regard to the ultimate destination of the shipments.
The Department, upon the receipt of your despatch, granted an application of the Bendix Products Division of the Bendix Aviation Corporation for a license to export undercarriage units, and an application of the Brewster Aeronautical Corporation for a license to export wings and tail units to the Canadian Car and Foundry Company, Limited, these being the only pending applications in its files for license to export arms, ammunition, or implements of war to that company. As you were informed in the Department’s instruction no. 1338 of August 17, 1938,40 licenses were granted at that time to the Aviation Manufacturing Corporation, the Aerial Machine and Tool Corporation, and the United Aircraft Corporation (Hamilton Standard Propeller Division), for the export to the Canadian Car and Foundry Company, Limited, of the articles referred to in notes no. 112 of August 5, and no. 113 of August 6, addressed by the Canadian Department of External Affairs to the Legation. The Department has received no application from the Lasley Turbine Motor Company for license to export arms, ammunition, or implements of war to the Canadian Car and Foundry Company, Limited. This company is, furthermore, not registered with the Secretary of State as a manufacturer or exporter of arms, ammunition, or implements of war and, therefore, could not legally obtain a license for the export of such articles to any foreign country.
Very truly yours,