894.60/7–2447

The Assistant Secretary of War (Petersen) to the Assistant Secretary of State (Hilldring)

Dear John: In connection with our discussion of the scope of activity of Overseas Consultants, Inc., under the terms of the contract with the War Department, Article 1 e of that contract requires the personnel of Overseas Consultants, Inc., to operate under instructions of the Secretary of War or his authorized representative.

Because of the difficulties attendant upon a formal amendment of the existing contract, the War Department will include the following [Page 421] in the instructions to be given to Overseas Consultants, Inc., by the Secretary of War:

A.
Article 1 a (2) and the last clause of (4). Overseas Consultants, Inc., is not engaged to set up or question the level of industry in Japan as contained in SWNCC 236/43 but, if during the course of the work done in Japan by the Overseas Consultants, Inc., they determine that a specific level of industry as contained in SWNCC 236/43, in their opinion is in error, they should include that opinion in their report.
B.
Article 1 b (c). SWNCC 236/43 is specifically mentioned in this Article of the contract and Overseas Consultants, Inc., will be instructed to be guided by that document.
C.
Article 1e. Overseas Consultants, Inc., will be guided by pertinent approved U.S. or FEC policy decisions.

If you agree to the above, a copy of this letter will be officially furnished the President of Overseas Consultants, Inc., as part of his instructions under para 1 e of the contract, and copies will be supplied to General MacArthur for his information.

I anticipate an early reply from you to the effect that the State Department is in full agreement with the purpose and the terms of the contract between the War Department and the Overseas Consultants, Inc., as further amplified by the above agreed instructions.

Sincerely yours,

Howard C. Petersen