893.51/6736⅝: Telegram
The Acting Secretary of State to the Secretary of State50
13. The President has informed me and he has also informed the Secretary of the Treasury that he desires to go ahead with the tung oil project. I have conferred with the Secretary of the Treasury and have suggested that implementation be held in abeyance until the President returns to Washington next week. The Secretary of the Treasury has agreed to this suggestion. Upon the return of the President to Washington I propose to call to his attention again the views which you expressed in your memorandum of November 14 and to raise for his consideration the question of general policy and procedure [Page 576] in reference to the Far Eastern situation and the question whether he desires to continue for the time being the policy and procedure which this Government has heretofore followed and to proceed with the tung oil project as an isolated act.
The problem presented is, as you know, especially complicated by virtue of the fact that positive commitments have been exchanged between very high officials on both sides. In view of this fact along with other considerations, our opinion and Treasury opinion at this moment lean toward treating the project under consideration, if consummated, as an independent and self-contained commercial transaction.
I should greatly appreciate any suggestions or comments in addition to those contained in your memorandum of November 14 which you would like to have me present to the President.
- The Secretary of State, who was Chairman of the American delegation to the Eighth International Conference of American States, was aboard the S. S. Santa Clara en route to lima to attend the Conference.↩