accept orders from a Japanese concern without any reservations, subject to cancellation in the event of a U. S. embargo. You further state that I failed to indicate the date of any letter by the Ohio Seamless Tube Company or the existence of any order to the Ohio Seamless Tube Company (if such existed) by which the Ohio Seamless Tube Company made any such proposal. I have not seen the Cleveland newspapers for September 12 and 13 but I enclose herewith a copy of my statement as it was made before the Kilgore Committee. You will note that the reference to the Ohio Seamless Tube Company occurs on page 22 and is as follows: "Ohio Seamless Tube Co., Air Associates, Dzus Fastner Co.: These three makers will accept our orders without any reservations and subject to cancellation in the event of a United States Government embargo or legislation preventing shipment." This reference to the Ohio Seamless Tube Company is quoted as a part of a letter dated February 10, 1939, from the New York office of the Mitsubishi Trading Company to the Tokyo office of Mitsubishi. The letter was quoted in order to show the problem of the moral embargo as applied to the activities in which the Japanese companies were attempting to engage. The documents included in the statement were requested from the Department of Justice by the Kilgore Committee. No charge whatsoever concerning your company was made by the Department of Justice. You ask that I personally appear before the Kilgore Committee and read to them your letter. I take it that this request was made upon the assumption that I had made some charge against your company but as you will note the only reference to your company appears in the letter quoted from the Mitsubishi files. I think it entirely appropriate, however, to call your letter to the attention of the Kilgore Committee which I shall be glad to do. I further suggest that in addition to placing this letter in the files of the Kilgore Committee, you might wish to include some supplemental statement commenting upon the Mitsubishi letter inasmuch as the transactions referred to in your letter to me appear to be later than the date of the Mitsubishi letter. Your letter indicates that your last shipment to the Japanese was in March 1939. I found this a matter of interest since I had had no previous indication that in fact your company did make shipments of materials after the Secretary of State's moral embargo of June 13, 1938, as the Mitsubishi letter of February 10, 1939, indicated you were willing to do. Chief, Economic Warfare Section, Department of Justice, Washington 25, D. C. DEAR MR. MARTIN: Accept our thanks for your very prompt reply to our letter of September 15, your reply having reached us this morning. We note with interest that a letter was mailed on February 10, 1939, from the New York Office of Mitsubishi Trading Co. to their Tokyo offices quoting that The Ohio Seamless Tube Co., Air Associates, and the Dzus Fastener Co. would accept their orders on the following condition: "These three makers will accept our orders without reservations and subject to cancellation in the event of a U. S. Government Embargo or legislation preventing shipment." Promptly upon receipt of your letter I had a search made of the files of corre spondence between our Company and the above-mentioned Japanese firm and we are unable to locate any letter from us to the above-mentioned firm containing the clause mentioned above. We have therefore telephoned to our New York representatives asking them to send us at once their complete file of correspondence with the above-mentioned Japanese exporting firm, and we will endeavor to see whether our New York representatives have issued a letter containing such a clause. We note that the documents which the Department of Justice submitted to the Kilgore Committee contained no charge whatsoever concerning our Company by the Department of Justice. We also wish to report that we are unable to find any memorandum, dated June 13, 1938, by the Secretary of State regarding a Moral Embargo to Japan. We should like to know how the statement of the Secretary of State was conveyed to manufacturers. After reviewing the file of correspondence from our New York Office, we will write you further regarding this subject. We repeat that we value the good name of our Company as its greatest asset and wish to protect it. DEAR MR. CONNELLY: Mr. James Martin of the Department of Justice has just forwarded to me copies of his recent correspondence with you regarding his testimony before the Subcommittee on War Mobilization. I shall be very glad to insert this matter into the record of the Subcommittee's hearings. We would be willing to print also, any further statement you may desire to make on your relations with the Mitsubishi Trading Company. In the event that you do submit such a statement, would you kindly document it with copies of your correspondence with that company? U. S. Senate Office Building. Washington, D. C. MY DEAR SENATOR KILGORE: I have been interested in the material that is being gathered by your Subcommittee on War Mobilization of the Committee on Military Affairs. Your approach and handling of this all-important phase of our economy should prove most valuable to business and government in guarding against enemy encroachment in the years to come. It is to be sincerely hoped that your studies and findings will lead us to sound arrangements whereby both business and government in this country can pursue technological experimentation and development independent of the need of financial revenue that might accrue from dealing with other governments. My 1 position on this subject is well known and I believe you are familiar with my recent testimony on behalf of the Aeronautical Chamber of Commerce before the Woodrum Committee of the House of Representatives and subsequently the Murray Committee of the Senate. My attention has been called to the testimony of Mr. James A. Martin, Chief of the Economic Warfare Section, War Division, Department of Justice, on September 8th, 1944. Mr. Martin's outline of Japanese commercial arrangements showing how that government sought to benefit through the ordinary commercial channels quoted a letter under date of October 28th, 1938, over the signature of Mr. C. A. Harrison who was at that time a salesman of the then Fairchild Aviation, Inc. Some of my associates and I feel that Mr. Harrison's letter might be subject to misinterpretation and I am, therefore, addressing a letter to Mr. Martin, as per the enclosure, that will afford a true and more accurate evaluation of Mr. Harrison's letter. In closing, let me reiterate my interest in your subcommittee work. I should like to assure you that either in my capacity as president of this corpora as a director of the Aircraft War Production Council or as a member Board of Governors of the Aeronautical Chamber of Commerce I support your objectives of making this country free and unencumbered in its abi realize completely its proper destiny in the field of technological developm free enterprise. Most sincerely, J. CARLTON WARD, Jr., Presi SEPTEMBER 26, 1 Mr. JAMES S. MARTIN, Chief, Economic Warfare Section, War Division, Department of Justice, Washington, D. C. I am sure you have recognized from the letter that Mr. Harrison is a sales-minded individual. Such is the privilege of a salesman and indeed an asset. There are, however, two points that I should like to emphasize should put this whole matter in its true and clear light without relating to you an unnecessary amount of details. First, Vice Admiral Maehara's (correctly spelled Maebara) visit to this country as well as to the Fairchild plant was planned well in advance jointly by the Japanese Embassy and our own Department of State. When visitors, such as the Vice Admiral, wish to see and inspect plants and installations, it is the custom to have the military and naval attachés of their embassy specify these wishes and clear them with the Intelligence Departments of the Army and Navy well in advance of the date of the visit. This, of course, was done in the instance referred to in Mr. Harrison's letter. We have in our files over the signature of the Assistant Director of Naval Intelligence, under date of October 13, 1938, a letter of permission and clearance for the Vice Admiral's visit to our Hagerstown plant on November 10, 1938. You will note that clearance was made almost one month prior to the specified date of this visit. Of course, at the time, there was no production of a military nature at this plant and consequently no secrets of a military nature could have been disclosed. The second point I should like to emphasize with you is that Fairchild rigidly observed the letter and purpose of Secretary Hull's Moral Embargo enunciated June 13, 1938, and I say this in spite of any misinterpretation that might be put on Mr. Harrison's letter. At the commencement of the Moral Embargo, State Department officials interpreted it as not applying to pleasure craft. However, in the fall of 1938, probably in response to public sentiment, the State Department commenced interpreting the Embargo to include all types of aircraft and equipment. The company's last sale and delivery to the Japanese occurred on July 12, 1938, and consisted of one Fairchild F-24 which was a two-seater countryclub type of pleasure craft. This sale, of course, was accompanied by an export license duly issued by the State Department. In view of the above-stated facts, my associates and I would deeply appreciate it if you would submit this letter to Senator Kilgore's Subcommittee to be made part of the record with reference to that portion containing Mr. Harrison's letter. As I have stated to Senator Kilgore, I am greatly interested in the sound work that his group is doing and I am sure it is not the purpose of anyone connected with this effort to unfairly reflect, even unintentionally, on the character and record of any individual or corporation. I am sure you will give this matter the attention it might deserve and I await with interest your reply. Very truly yours, J. CARLTON WARD, Jr., President. EXHIBIT NO. 660 CARLTON WARD, Jr., UNITED STATES SENATE, resident, Farchild Engine and Airplane Corp., New York, N. Y. AR MR. WARD: In response to your letter of September 26, with reference to hony by Mr. James S. Martin, I want to thank you for your clarification of cident referred to. Your letter is helpful in completing the record. Sincerely yours, H. M. KILGORE, Chairman, |