The General Counsel of the Division of Defense Aid Reports, Office for Emergency Management (Cox), to the Assistant Secretary of State (Acheson)

Dear Mr. Acheson: Thank you for your letter of October 9, 1941, in which you refer to my memorandum to you of September 29, 194159 regarding the proposed Lend-Lease agreement with Chile.

The terms of the agreement, including Article VI, as it is now drafted, are quite satisfactory with us, as is your proposed letter to the Chilean Ambassador. Article VI is written in the language of Section 7 of the Lend-Lease Act and there is therefore no possibility of an inconsistency between the Article and Section 7.

As now drafted, Article VI of the proposed Chilean agreement contains a reciprocity clause. It is our feeling that, if possible, the patent clause in Lend-Lease agreements should contain only those provisions required by Section 7, and that it would be desirable to eliminate the reciprocity provision. However, if any foreign government insists on the presence of such a provision, we will not oppose its inclusion.

As you know, the patent problems raised by Section 7 are now being studied by the Department of Justice. In the course of that study the questions posed by you in sections 3(a) to 3(d) of your letter will be examined. I therefore suggest that we hold in abeyance all Lend-Lease patent problems and re-examine them after the Department of Justice has completed its current study.

Sincerely yours,

Oscar Cox
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