390.1115A/552
Memorandum by the Adviser on Political Relations (Hornbeck)
Apparently the Army and/or the Navy have taken over from the American President Lines for Army and/or Navy use some 6 or 7 ships. They have, further, recently been making gestures toward taking over the S. S. President Coolidge. Mr. Grady22 gave me during his recent visit here an account of the whole matter and advanced excellent reasons why the S. S. President Coolidge should not be taken over by the armed Services and should remain in the hands of the American President Lines. Developments of the past few days serve strongly to support the views expressed by Mr. Grady.—At the present time, this ship is the only important passenger ship other than Japanese operating on the Pacific. The service which she will be rendering shortly in bringing home American nationals from Manila, Hong Kong, Shanghai, (and possibly Japan) is of definite importance. There will probably be need for a good deal more of such service in the immediate future. Operation of the ship as at present and under the orders of a company president who understands the problems which confront this Department, who understands our attitude and methods, and who wishes and is prepared to give us one hundred percent cooperation affords us a setup in which there is a flexibility which would tend to disappear were this ship taken over by one or other of the armed Services. Mr. Grady is doing his best to persuade the Army and/or Navy to refrain from taking this ship. In my opinion, if, where and as it is possible for us discreetly to support Mr. Grady’s effort, it would be in the interest of all concerned for us to do so.23