810.20 Defense/68

Memorandum by the Secretary of State, the Secretary of War (Woodring), and the Secretary of the Navy (Compton)

After consultation among officers of the Departments of State, War, and the Navy, and between officers of the Department of State and [Page 10]the Chief of the Procurement Division of the Treasury, Chairman of the President’s Liaison Committee charged with maintaining liaison with foreign purchasing missions,19 the plan of procedure outlined below has been agreed upon for the negotiation of transactions with the governments of the American republics, pursuant to the Joint Resolution “To authorize the Secretaries of War and of the Navy to assist the governments of American republics to increase their military and naval establishments, and for other purposes” approved June 15, 1940.20

1.
Properly authorized representatives of governments of American republics desiring to take advantage of any of the provisions of the Joint Resolution approved June 15, 1940, will present their requests to the Division of Controls, Department of State. The Chief of that Division, after ascertaining from the appropriate officers of the Department of State whether the transaction in any given case would be in conformity with the foreign policy of the Government, will, if there is no objection on the ground of foreign policy, refer the representatives of the American republic to the President’s Liaison Committee with the request that that Committee refer the said representatives to the Clearance Committee, Army and Navy Munitions Board. The Chief of the Division of Controls of the Department of State will see to it that the Secretary of War or the Secretary of the Navy, as the case may be, is formally notified in writing that the said named representatives of an American republic have been referred to the President’s Liaison Committee.
2.
The President’s Liaison Committee will refer representatives of American republics who have been sent to it by the Chief of the Division of Controls to the Clearance Committee, Army and Navy Munitions Board, which will conduct the necessary negotiations for the transactions involved. Any question arising during the course of these negotiations which may seem to require the attention of the Department of State will be referred orally and informally by the Chairman of the Clearance Committee to the Chief of the Division of Controls, Department of State.
3.
When the negotiations referred to above have progressed to such a point that a tentative agreement has been reached, the Clearance Committee will see to it that the Secretary of State is formally notified in writing by the Secretary of War or the Secretary of the Navy, as the case may be, of the details of this tentative agreement. The Secretary of State will then request the President to direct the Secretary of War or the Secretary of the Navy, as the case may be, to conclude a definite contract on the basis of the tentative agreement. When a [Page 11]definite contract has been concluded, the Secretary of War or the Secretary of the Navy, as the case may be, will see to it that the President’s Liaison Committee is fully informed in regard to the details of this contract.
Approved:
Cordell Hull

Secretary of State
Approved:
Harry H. Woodring

Secretary of War
Approved:
Louis Compton

Secretary of the Navy
  1. This date appears to be the one on which the memorandum was drafted, and not the one on which it was signed.
  2. Interdepartmental Committee for Coordination of Foreign and Domestic Military Purchases.
  3. 54 Stat. 398.