195.2/3727
Memorandum by the Chief of the Division of International Communications (Burke)11
With reference to various discussions held with Ambassador Oumansky by your Division and others on the subject of the reasons for the disapproval of charter of American vessels for Russian Government account by the United States Maritime Commission, the statements made to the Ambassador in regard to the Maritime Commission have been checked with the Commission as to whether they correctly represent the Maritime Commission’s position and as to whether that position is in any way altered by current developments.
We are assured by the Commission that it follows a fixed policy in considering charter applications under Section 9 of the Merchant Marine Act, 1916, as amended.12 This “fixed policy” is to consider on the merits each individual case as it comes before the Commission. The Commission gives consideration in each individual case and is largely guided by availability of and requirements for tonnage—
- a.
- For the domestic market (coastwise and intercoastal)
- b.
- For the hemisphere trades (in recent months South America, East and West Coasts)
- c.
- The length of time required of a vessel to comply with the charter requirements
- d.
- The various aspects of questions of national defense, and
- e.
- The proposed charter rate and its possible effect on the foreign and domestic rate structure,
and any other matters which, in the judgment of the Commission, appear to be pertinent and bear on the sound development of our merchant marine policy.
[Page 296]The Commission denies any discrimination against Russian interests and asserts that in its approach to this problem the current domestic tonnage situation and the shortage of world tonnage generally, both largely affected by war conditions, are of great weight in the Commission’s deliberations. The Commission asserts further, as evidence of its impartiality, that its failure to approve these charter applications in each instance has weighed heavily on the American owner of the vessels.