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CO SUMMARY Washington, D. C. June 26, 1945 2:40pm MRS. WORTH CLARK tells MRS. BEHAN that she has WORTH'S bag. MRS. BEHAN tells her that CORCORAN and CLARK are not going to New York now but that she should take the bag to the Southern Building. 3:05pm CLARK to CORCORAN. CLARK said he will go to the Plaza today and CORCORAN will come up tomorrow. CLARK said to tell MAC WRIGHT that CLARK has the "Petty letter. The "Petty letter," said CLARK, says in substance: "President TRUMAN has ordered Secretary ICKES to condemn or otherwise acquire the mineral rights under Los Certus (Phon.) Channel in California which the courts have held was deeded to the Federal Government for waterway use only. Mr. ICKES contends the government owns the oil and wants to prevent drainage. Oil rights were once auctioned by ICKES with highest bids "bonus of $5000 per acre, plus $40,000 per acre paid out 15% of oil produced by E. E. COOMBS (Phon.) acting for EDWARD W. PAULEY, Los Angeles. CLARK said there is a lot more but the letter will be over to WRIGHT soon. WORTH CLARK said further he had a "great conference with (JOSEPH) NUNAN this morning. Very fine! He says, "Hell, he's not going to sign any such closing agreement as that." And he immediately got MR. GATIN (Phon.) on the telephone and said: "Now, I've got SENATOR CLARK here" and he says, "I want you to give him all the time in the world on this proposition, he's gonna be back in town Thursday." And he says: "We've gotta watch our step on this," and GATIN apparently agreed with him and said he had three of them up there which I assumed is PUGET SOUND, WASHINGTON WATER POWER and NEBRASKA. So that's all set. They're not going to get any closing agreements, I don't think. I inquired of NUNAN what their policy on these tax things were. He says: "worth, it's the only thing I can tell you. If you can get any of these cases where the investigation has not actually been started, he said, "I will give you my word that there will be no criminal prosecution at all, provided they will file an amended return, pay their taxes and 50% penalty." "Now," he said, "when investigation has been started, we're gonna be in a tough spot. He said: "I don't know what to tell you about that; they're already under investigation and I don't know. We may be forced to prosecute. That will be a matter that has to be worked out but, frankly, OUT policy is going to be -- wherever we've had to go in and spend the government's money on an inves- tigation __" But he said: "If you can get 'em, you can tell 'em absolutely CORCORAN then asked if WORTH would call GEORGE HURLEY (Phon.) from New York. TOM said his number is Dexter 9300 in