346 FOREIGN RELATIONS, 1942, VOLUME VI

repeated investigations and discussion of the subject, the Navy De-
partment finally relinquished its claims to these three (3) vessels, not
because they could not utilize them satisfactorily but because of the
commercial conditions existing which made it appear more desirable
to retain them in commercial use rather than divert them to special
Naval use.

In the meantime, December 7th occurred and the necessity of addi-
tional ships far beyond those available either under American flag or
under American control became more and more evident. Specifically,
the War Department has definite military uses for these three (3)
vessels but in order not to seriously hamper commercial activities
whenever and wherever it can be avoided, the present general status
of the matter is to take these remaining three (8) vessels one at a time
and then only if urgent military requirements necessitate such action.

It is of interest to note that this design of ship has many advantages
for both commercial and military work but unfortunately some of the
important advantages are entirely dependent upon shore installations,
and the commercial operations of these vessels require primary utiliza-
tion at those ports only where exist the particular port facilities es-
sential to efficient handling of the cargo containers primarily utilized
in their operations. This being true, it 1s necessary for the Navy to
install cargo-handling devices on the ships themselves which the Navy
took over and some similar modifications and installations will have to
be made if and when any of the remaining three (8) vessels are taken
over by the Army. Present investigations indicate that less elaborate
conversions and installations will be necessary for Army purposes
than have obtained for Navy purposes.

In conclusion, please be assured that full consideration has been and
will be given to this matter and it is my understanding that final action
will not be taken with regard to the remaining three (8) vessels until
it is evident that the necessities of national defense require such action.

Very sincerely yours, Frankuin D. Rooskvett

 

800.8836/740

Memorandum of Conversation, by the Adviser on Political Relations
(Duggan)

| [Wasuineron,]| February 12, 1942.
The Ambassador *? informed me that the service of the United
Fruit Company between New York, Habana, and Central America

2 The Cuban Ambassador, Aurelio F. Concheso.