811.20 Defense (Requisitions)/21
Memorandum by the Chief of the Division of Controls (Green) to the Secretary of State
I have looked into the question which you raised in regard to the authority under which the Navy Department is requisitioning and hopes to continue to requisition machine tools and other types of machinery sold for export. I find that this action is being taken without legal authority and that no legal authority for such requisitions is proposed in any of the bills now pending in Congress. What the Navy Department plans to do is to ask this Department to refuse to issue export licenses for the particular items which it wishes to acquire. The exporters, then finding themselves unable to export these items will, it is believed, be entirely willing to sell them to the Navy Department for a price sufficient to enable the exporters to indemnify the original purchasers.
The same procedure would be applicable to the taking over by the Army of the Swedish planes which you mentioned.