811.20 Defense (Requisitions)/31

Memorandum of Conversation, by the Chief of the Division of Far Eastern Affairs (Hamilton)

Mr. Morishima, Counselor of the Japanese Embassy, called at noon on Mr. Grady. Mr. Morishima said that the Japanese Embassy had just received word by telephone from New York that Japanese vessels there were not being permitted to load certains types of equipment, including machine tools. Mr. Morishima said that when inquiry was made of the customs authorities they said that they were acting on instructions from Washington. Mr. Morishima inquired under what law the American authorities were declining to permit the loading on Japanese vessels of this equipment. Mr. Morishima said that he was aware of the provisions of a national defense measure now under consideration by Congress but he pointed out that this measure had not yet been enacted into law.

Mr. Grady informed Mr. Hamilton of Mr. Morishima’s call. Mr. Hamilton made inquiry of Mr. Yost,89 after which Mr. Yost and Mr. Hamilton told Mr. Grady that earlier that morning the Soviet Ambassador90 had telephoned in regard to a similar matter affecting the [Page 573] loading of machine tools on a Soviet vessel; that under authorization from Mr. Berle91 an officer of the Department had informed the Soviet Ambassador that certain types of equipment, including machine tools, were indispensable from point of view of the national defense program of this country; that export of these particular commodities was not being permitted; and that the action of the authorities of this country was not directed against any particular country but was directed toward conserving for the national defense needs of the United States certain indispensable commodities.

As Mr. Morishima had pressed Mr. Grady to give him a reply in the afternoon, Mr. Grady telephoned Mr. Morishima and made to Mr. Morishima a reply which followed closely the lines of the reply made earlier to the Soviet Ambassador.

  1. Charles W. Yost, Assistant Chief of the Division of Controls.
  2. Constantine A. Oumansky.
  3. Adolf A. Berle, Jr., Assistant Secretary of State.