Navy, January - February 1938

PSF Navy Dept. Jan. - Feb. 1938 GIZ 5 PSF FROM: COMRON 40 T 1938 nam ACTION: NAVY DEPT RESTRICTED ROUTINE 0028 111 ADDITION TO THE PROBLEM OF EVACUATING WHAT FEW AMERICAN CITIZENS WOULD BE WILLING TO LEAVE SPAIN IN THE EVENT OF MORE SERIOUS DEVELOP- MENTS COMRON 40 IS OF THE OPINION BASED ON PERSONAL INFORMATION OBTAIN ED BY FLAG SECRETARY WHO HAS JUST RETURNED FROM BARCELONA THAT CONTINU- ANCE OF THE NATIONALIST DRIVE ALONG THE ARAGON FRONT WOULD DOUBTLESS IN- TERRUPT MOTOR COMMUNICATION BETWEEN BARCELONA AND THE FRENCH FRONTIER AND THUS 180LATE MEMBERS OF THE EMBASSY AND CONSULATE GENERAL STAFF FROM ONE OF THEIR MAIN SOURCES OF FOOD SUPPLY PERIOD SINCE SUCH A SITUATION MIGHT DEVELOP MOMENTARILY COMRON 40 UNLESS CONTRARY INSTRUCTIONS ARE RECEIVED FROM THE DEPARTMENT WILL BE PREPARED TO DISPATCH A VESSEL UPON REQUEST OF THE CHARGE D AFFAIRES AT BARCELONA 1445 TOR IN CODEROOM 1245 28 MARCH 1938 DISTRIBUTION:- 13 ACTION 05 10A 11 19 16 38 FILE STATE SENT TOSTATE Franklin D. Roosevelt Library DECLASSIFIED DOD BIRL 5200.9 (9/27/58) Date- 11-8-63 Signature- barl L. Spicer capt [1-5-38] OFFICE OF THE ASSISTANT SECRETARY OF THE NAVY who Information in regard to High Speed Torpedo Boat (Aluminum) 1 Leahy PSF Noves Franklin D. Roosevelt Library DECLASSIFIED DEPARTMENT OF THE NAVY OFFICE OF THE SECRETARY DOD DIR. 5200.9 (9/27/58) WASHINGTON 5 January 1938. Date- 4-7-59 Signature- Carl L. Specer SUBJECT: High Speed Destroyer (Aluminum) 1. In December 1936, Mr. Starling Burgess, in association with the Aluminum Company of America, submitted to the Navy Depart- ment, a proposal for a "small destroyer" about 250' long, 745 tons displacement, speed about 58 knots to be constructed of aluminum alloy. Later the Bath Iron Works also became interested in this proposition. 2. The General Board examined this proposal, which was very sketchy at that time, and requested Mr. Burgess to submit further necessary data sufficient to form an estimate as to the value of the proposal. This further data was never supplied along the lines requested by the General Board. In view of the non- supply of this design data it became necessary for the Bureau of Construction and Repair to prepare data itself along the lines of the proposal, in order that the General Board might render report on this matter. In order thoroughly to examine the proposal, the Bureau of Construction and Repair prepared preliminary designs, in both steel and aluminum, of vessels of almost the proposed displacement, thus obtaining comparative weight data for aluminum construction. Model tests were run and all angles of the proposal were examined. This investigation is contained in Bureau Construction and Repair Pamphlet entitled "Design History, High Speed Destroyer". 3. On 14 May 1937, the General Board, after discussion with the Bureau of Construction and Repair and examination of its report, together with consideration of such data as was submitted by Mr. Burgess, expressed the opinion that the study made by the Bureau of Construction and Repair was sufficiently exhaustive to indicate that the construction of an aluminum hull, high speed destroyer would not be warranted at this time, due to the lack of corrosion resisting properties of aluminum and also the inherent risk of strangth reduction due to temperature about 100° F. This opinion was concurred in by the Chief of Naval Operations and approved by the Secretary of the Navy on 27 May 1937. 4. In connection with this matter however, the General Board considered that, due to the military advantages obtained by the use of aluminum for hull structures, the study of its use be -2- continued, particularly in connection with the experimental de- velopment of motor torpedo boats. Such study is being made, and in addition, final design work is completed on two coastal motor boats of aluminum for the Philippine Government. These Philippine boats and the other motor torpedo boats are much smaller vessels than those proposed by Mr. Burgess. The motor boats range from 50' to 70' in length as compared with 250' proposed by Mr. Burgess. 5. Subsequent to the action taken by the Department as stated above, the Bath Iron Works, represented by Mr. Newell, sub- mitted to the Department in November 1937, a fairly complete set of general plans and a model of a high speed destroyer of about 940 tons trial displacement, 285' long. These plans were prepared for Bath by Gibbs and Cox of New York. They are still under consideration by the material Bureaus and the General Board, and with the model are at present in the General Board Room. 10 PSF Navy DEPARTMENT OF THE NAVY OFFICE OF THE ASSISTANT SECRETARY WASHINGTON 10 January 1938 MEMORANDUM FOR: Honorable Marvin H. McIntyre Secretary to the President The Assistant Secretary asked me to forward the attached memorandum to you for the use of the President in answering inquiries concerning the expansion of torpedo production. Respectfully Lewis Compton Assistant to The Assistant Secretary of the Navy Inclosure. PSF Navy Franklin Roosevelt Library DECLASSIFIED DOD DIR. 5200.9 (9/27/58) IN REPLY ADDRESS BUREAU OF ORDNANCE, NAVY DEPARTMENT NAVY DEPARTMENT Date- 2/12/59 AND REFER TO No. S75 (AB) BUREAU OF ORDNANCE Signature- Care J. spicer WASHINGTON. D.C. 5 January 1938 CONFIDENTIAL EXPANSION OF TORPEDO PRODUCTION 1. In 1919, shortly after the World War and before the Wash- ington Disarmament Conference, the Torpedo Station at Newport reached 8. total of employees of 2758. After the Disarmament Conference for about ten years before 1933 the normal employment was about 1,000. 2. In October and December of 1933 the first destroyers and submarines were laid down in the new Navy Building Program and from 1934 yearly the number of men employed at Newport has increased un- til now they number 3375, bringing Newport up to its capacity produc- tion and using three shifts turning out 2-1/2 torpedoes per day with 221 working days to the year This is S.C. 3. About $700,000 has been spent in new construction at New- port in the last five years, including a new ferry boat. Over $100,000 has been spent annually on new machine tools. Total annual expendi- tures at the Torpedo Station in 1936 were $7,450,928; in 1937 they were $9,305,536. To-day Newport has on order torpedoes to the value of $29,000,000. 4. By January 1941, 34 new submarines and 89 new destroyers will have been completed. The primary armament of these vessels is torpedoes. Despite the maximum effort at Newport, we face 8 serious shortage of torpedoes. It is vital that another source of supply be established at once. A study of other possible sources of torpedo production eliminates, for one reason or another, all localities ex- cept Newport, Alexandria and San Diego. To further increase Newport is considered inadvisable for the following reasons: (1) There is too great a concentration already at Newport. our entire torpedo manufacturing facil- ities should not, from a military point of view be concentrated in one place. (2) To increase the output 50%, it would be necessary to provide about $4,500,000 for new buildings and tools. (3) It would entail a delay of about one year to con- struct the buildings and another half year to get the tools in and operating. S75 (AB) (4) After the peak, the great reduction in force would be & serious blow to this locality. Newport's present rate of production can be increased a small amount from 2.5 to 2.75 torpedoes per working dey by making shops less congested and modernizing by expenditure of $1,500,000 for new buildings end $500,000 for new machine tools. This is some improvement but does not meet our needs. 5. To establish a plant in San Diego would cost about 4,500,000 and would take about three years to turn out the first torpedo. 6. To re-squip Alexandria for torpedo production is the most expeditious and the most economical means of meeting this problem. Build- ings to the value of $1,745,000 already exist. An excellent proving range is available. The same military protection provided for the Nation- al Capital can protect Alexandria. The purchase and planning organization and the laboratories of the Naval Gun Factory are available to Alexandria, thus reducing overhead costs. 7. The funds asked for Alexandria in the 1939 Budget for all Bureaus are $1,521,000 and in 1940 to complete the tooling are $1,146,000. If these funds are provided Alexandria will begin deliveries in January 1940, and both Newport and Alexandria will be operated to their full capacity , Newport at three shifts and Alexandria at one shift, until at least 1944 to provide torpedoes for the new destroyers and submerines now built and building. This will keep these plants operating until that date if not another destroyer or submarine is laid down after the 1939 program. 8. From a standpoint of national security, it is advisable to have at least two plants tooled-up for torpedo manufacture. Two or more plants already in operation at a low rate can be expanded more rapidly in time of emergency than one plant already at capacity. 9. Newport is and will remain our primary source of torpedo man- ufacture and the center of torpedo research and design. Alexandria is needed now to help relieve the present shortage. It is needed also, and perhaps even more acutely, as a second source of supply capable of 1m- mediate expansion in the event of war. WR.7. MES W. R. Furlong. CONFIDENTIAL Lile compilational I PSF PSF: navy In reply refer to Initials NAVY DEPARTMENT name and No. OFFICE OF THE CHIEF OF NAVAL OPERATIONS WASHINGTON 11 January 1938 MEMORANDUM FOR THE PRESIDENT My dear Mr. President: In obedience to your request of yesterday the following are the distances by sea in the Western Pacific between the ports and places indicated: Miles Singapore to Honolulu - 5,881 " Midway Island 4,738 " Guam 2,585 " Zamboanga 1,197 11 Manila 1,330 " Shanghai 2,210 " Nagasaki 2,415 = Osaka 2,535 11 Yokahama 2,894 Midway to Osaka 2,610 " Manila 3,624 " Guam 2,301 " Zamboanga 3,600 " Admiralty Islands 2,730 Most Williams & cary respectfully, ps Fivary THE ASSISTANT SECRETARY OF THE NAVY WASHINGTON he x 14 January 1938 MEMORANDUM FOR THE PRESIDENT: In further answer to your memorandum in regard to Newport News Shipbuilding Company's lagging in construction, I attach a preliminary report which indicates some of the causes for delay. A more comprehensive study is being made and a further report will be submitted to you later, but I was anxious to get something in your hands before leaving for my three weeks' trip. Also, I have telephoned Mr. Ferguson, President, Newport News, and asked him to prepare a statement, 8.8 well, in explanation of the situation and he has agreed to do 50. Recently my office and the Shore Establish- ments Division have been somewhat reorganized. I now have Captain Church available, who was brought here mainly for the purpose of working on expediting the shipbuilding program. He will cover not only the Washington end of it, but also make frequent trips into the field. I hope better results all around will be attained. Charlis Colism Charles Edison DELAY ON VESSELS BEING CONSTRUCTED AT NEWPORT NEWS. ENTERPRISE (CV6) Original contract date of completion 2/3/37 Extended If If If 7/3/37 Estimated If " " 5/12/38 Five months' delay was granted because of change in the composition of the gasoline stowage tanks and extension of flight decks. The vessel would prob- ably have been delivered on 15 December 1937 but replacement of the main reduc- tion gears was found necessary. The vessel is now substantially completed ex- cept for the replacement of the gears and the work incidental thereto. The first set of gears was delivered on 27 December 1937 and the last set is expect- ed on 1 February 1938. The additional five months' delay has been reported as having been caused by late delivery of shaft struts, gun control equipment and flame-proof cable, heavy snow (4 days), defective armor plate and shortage of mechanics. BOISE (CL47) Contract date of completion 8/22/37 Estimated date of completion 7/15/38 No delay has been granted on this vessel. Delays are claimed for: Late delivery of armor, turrets, diesel generators, government furnished material (Ordnance), and plans from the New York Shipbuilding Company, heavy snow (4 days), and re-arrangement of superstructure and plotting room. This vessel would probably have been completed on 15 May 1938 if the ENTERPRISE had not ex- perienced difficulty with her reduction gears. This vessel was delayed by the Contractor in order that they would not be completing two major vessels at the same time. ST. LOUIS (CL49) Contract date of completion 1/2/39 Estimated " " II 4/1/39 No delay has been granted for this vessel. The Contractor claims delay for change in the design of the cooling system for the diesel generators, de- lay in the receipt of special treatment steel, boiler material, and fire control S.T.S. tubes; difficulty in obtaining satisfactory steel castings; non-receipt of information concerning fire control equipment (Ordnance), and delay in action on certain plans. MUSTIN Contract date of completion 4/12/39 Estimated If If "(BuEng Est) 7/12/39 A delay of two months has been granted due to the relocation of the auxili- ary diesel generators. The contractor has also reported & delay due to & change in the turbine drawings and due to non receipt of structural plans. RUSSELL Contract date of completion 6/12/39 Estimated If If "(BuEng Est)8/12/39 Remarks are the same as for the MUSTIN above. THE ASSISTANT SECRETARY OF THE NAVY WASHINGTON Edism 1 April 1938 MEMORANDUM FOR THE PRESIDENT. Attached is a brief factual statement in regard to delays on the WICHITA, HONOLULU and HELENA. Most of the causes for delay appear to be something over which the building yard had no control. The situation in regard to delays in ship- building is regrettable not only on the above ships but on many others. Yesterday, Secretary Swanson placed the responsibility for coordinating all phases of the Ship- building Program squarely on me and announced this to the Bureaus. It may be said that I already had this obligation but it was all rather vague to the Bureaus and many times I did not get a chance to get in on some decision or lack of it until I stumbled over a situation. Now, with everybody aware of the fact that there is one point of focus it is my hope that some improvement may be effected in our building schedules. Respectfully Charles Edison ADDRESS REPLY TO THE SECRETARY OF THE NAVY AND REFER TO INITIALS AND No. NAVY DEPARTMENT SOSED-1-Kr-3/30 WASHINGTON 30 March 1938. MEMORANDUM FOR THE ASSISTANT SECRETARY OF THE NAVY Subject: Construction Report. 1. With reference to the memorandum of the President, dated 16 March 1938, the following are the principal causes of delay on the cruisers WI- CHITA, HONOLULU and HELENA: C.A. 45 - WICHITA -(Philadelphia). Contract date of delivery 1 January 1938. Probable date of delivery 1 February 1939. Delay of Department on turret plans over which Yard has no control - 7½ months Development of an entirely new design over which Yard had no control- 4-6 months Contributory and concurrent delays caused by changes in fire con- trol arrangement with consequent electrical and structural changes; changes in ventilation layout which resulted in scrapping a consid- erable amount of design work; changes in compartment and access, and berthing and messing plans which resulted in scrapping 8. considerable amount of design work; changes in conning tower, late delivery of ar- mor, lack of machine tool capacity, rejection of turbine castings with subsequent delay in awarding another contract 4 months C.L. 48 - HONOLULU (New York), Contract date of delivery 1 September 1937. Probable date of delivery 1 August 1938. Delays on BROOKLYN are reflected in this vessel. Ship delayed by Yard in order to avoid an inefficient labor policy and maintain & more even work load. 11 months Contributory and concurrent causes are late delivery of 5" A.A. battery; late delivery of interior side armor; late delivery of tur- ret armor; late delivery of fire control apparatus 11 months C.L. 50 - HELENA - (New York). Contract date of completion 16 May 1939. Probable date of completion 2 January 1940. Late delivery of turbine castings from the Norfolk Navy Yard, over which the New York Yard had no control. 7½ months Contributory and concurrent causes are late delivery of fire con- trol tubes; late delivery of structural tubing; late delivery of piping system tubing. 5½ months In orgrees R. Defrees. EVAL DEE yet distute DEPARTMENT OF THE NAVY OFFICE OF THE SECRETARY WASHINGTON Cord 16 November 1938. MEMORANDUM d-' For: The President. SUBJECT: Small Boat Design Competition. The first stage of the competition (submitting prelimin- ary designs) has been completed, and the second stage (preparation of final designs) has begun. Ten weeks are allowed for the second stage, terminating on 18 January 1939, for the 54' and 70' classes, and on 25 January 1939, for the 110' and 165' classes. Preliminary Designs Permitted to make Submitted. final designs, 54' 24 3 70' 13 5 110' 8 2 165' 11 5 56 15 The attached extract from the public invitation shows the prize money to be awarded. The attached list contains the names of the fifteen designers who have been authorized to enter the Final Design Stage. These names have not been divulged to the material bureaus. In accordance with your wish as expressed to Captain Callaghan, the plans designated for the Final Design Stage will be delivered to you via Captain Callaghan tomorrow 17 November 1938. Acting LIST OF DESIGNERS AUTHORIZED TO ENTER INTO THE FINAL DESIGN STAGE. 54' Class. 70' Class. Henry B. Nevins, Inc., Mr. W. Starling Burgess, City Island, N. Y. 5 Bath Iron Works, Bath, Maine. A. E. Luders, President, Luders Marine Construction Co., Mr. M. E. Tullock, Stamford, Conn. Greenport Basin and Construction Co. Greenport, L.I.N.Y. Pigeon-Hollow-Spar Company, 131 Coleridge St., Mr. D. H. Sparkman, East Boston, Mass. Sparknan and Stephens, 11 E 44th St., New York, N.Y. Mr. A. E. Luders, President Luders Marine Construction Co., Stamford, Conn. Henry B. Nevins, Inc., City Island, N.Y. 165' Class. 110' Class. Gielow Inc., 25 W. 43rd St., Mr. A. E. Luders, Fres. New York, N.Y. Luders Marine Construction Co., Stamford, Conn. Tame Inc., 250 Park Ave., The Elco Works, New York, N.Y. Bayonne, N.J. Mr. Hubert Kempel, 52 Post St., Hilton Village, Va. Chris. B. Nelson, Box 26, Annapolis, Md. S. A. Vincent, Box 411, Semport News, Va. For all Final Designs accepted, the Government will pay the following fees and will retain, as its property and for its exclusive use as it deems fit, all the Data submitted by the competitors: For the 165' Steel Subchaser $20,000.00 For the 110' Wood Subchaser $15,000.00 For the 70' Motor Torpodo Bont $15,000.00 For the 54' Motor Torpedo Boat $15,000.00 For all other designs submitted at this time and which include all the required Final Design Data, the Government will pay the such following fees and will retain ns its property and for its non- exclusive use as it deems fit, all the Data submitted by the com- petitors: For the 165' Steel Subchaser $ 2,000,00 For the 110' Wood Subchaser 1,500,00 For the 70' Motor Torpedo Boat 1,500.00 For the 54' Motor Torpedo Boat 1,500.00 In order to insure impartial consideration in this compe- tition, each competitor, upon receipt of the Department Data, will be assigned a Designating Symbol by the Office of the Assistant Secretary of the Navy and to be held confidential within that office. All plans and other data submitted by each competitor throughout the competition must only bear this Designating Symbol in order that the agencies within the Department, which must pass upon the designs, will not be cognizant of the origin of the data. No other identifi- cation marks will be permitted on the design data submitted to the Navy Department. Department Data will include only the required military charac- teristics for each type, plus the weight, general location, and space necessary for those military features. This limitation of Depart- ment Data is made for the purpose of allowing the designers the widest possible latitude in development of their design conceptions. The items mentioned in the Department Data are by no means all in- clusive as regards items to be shown and carried by the Design. All items required for the service intended must be included in the design. All questions arising during the periods of the design competition must be submitted in writing. Copies of all such questions and the answers will be furnished each competitor. It being the purpose of the competition to secure for the Government the complete designs, and patent rights relating to material povered theroby, express'dAtenantseregerding patents and licenses which will be made a condition of any award are heréinafter set forth, 3 THE ASSISTANT SECRETARY OF THE NAVY Refunds WASHINGTON fill 1 confudented January 15, 1938. MEMORANDUM FOR MR. MARVIN McINTYRE: Dear Mac: The enclosed letter from Mr. William F. Gibbs contains information that I think would be of interest and value to the President in con- nection with the proposed conference with the Secretary and the bureau chiefs. Even though the letter is a rather long one, I think the President should have this information before the conference. I would like to invite his particular attention to the summary contained on pages 7 and 8. Faithfully yours, Charles Edison. TELEPHONE DIGBY 4-4366 CABLE ADDRESS GIBBARCH GIBBS & COX, INC. ONE BROADWAY NEW YORK September 7th, 1937 Honorable Charles Edison, Assistant Secretary of the Navy, Navy Department, Washington, D. C. My dear Mr. Edison: 1. In accordance with your request, we hereby confirm our conversation of September 2nd, at your office, relative to the request made by representatives of the Russian government that our firm design a battleship for Russia. 2. At our meeting of September 2nd, we referred to 8. con- versation the writer had with Mr. Lewis Compton on August 4th, 1937, dur- ing your absence from Washington, in which conversation Mr. Compton stated that you had been approached by certain attorneys representing Russian interests, i.e: The Carp Export and Import Corporation, with 6. request that you advise us that it was satisfactory to the Navy Depart- ment for our firm to design a battleship for Russia. 3. The undersigned stated to Mr. Compton: (a) That no representative of this firm had ever had any conversation or made any communication with respect to the design of a battleship with persons representing the Russian government, or The Carp Export and Import Corpn. (b) That the invariable policy of our firm with respect to design work involving foreign naval vessels was that we would not under- take such work under any circumstances, unless we could ascertain in any specific case from duly authorized representatives of the United States Government that such work was advantageous to the government and in line with the foreign and naval policy of the United States. (o) That while this firm might have a legal right to under- take such design work for foreign powers made no difference, unless the specific project was one which was advantageous to the United States. It was also pointed out that this firm did not consider itself in a position to decide whether any specific project of foreign naval design which might otherwise be legal, would be advantageous to the United States, and therefore any such project would be referred by us to the proper high officers of the Government for a determination on this point before this firm would undertake such a project. 2 4. Within the last two weeks we have been approached by the Russian interests who requested a conference. Accordingly, a meeting was held at our office on August 24th, and 8. subsequent meeting on September lst, 1937. The meetings were attended for the Russians by: Mr. Sam Carp Mr. Morris Wolfe Mr. Valarian Bjesinsky 5. On behalf of our firm, the meeting of August 24th was attended by Mr. F. H. Gibbs and the writer, while the meeting of Sept. 1st was attended by the writer only. 6. We were informed that Mr. Carp is President of The Carp Export and Import Corpn. at 220 Fifth Avenue, New York City. Mr. Carp stated that he is a Russian by birth, but a naturalized American citizen, and that the corporation was organized to carry out arrangements for the design of and fabrication of parts for a. battleship in the United States, the parts to be exported and erected at Vladivostock. 7. We were likewise informed that Mr. Bjesinsky was the head of a Technical Commission of several members who had been sent by the U.S.S.R. to aid Mr. Carp with technical advice, and that Mr. Wolfe is an attorney who is associated with Mr. Carp. 8. The Russian representatives stated that they were authorized by the Russian government: (a) To negotiate for the preparation of general and detailed working plans of a large battle- ship of at least 35,000 tons, with 8. main battery of 16" guns, and in this connection handed to the undersigned a tabulation of general particulars, copy of which is annexed. (b) To arrange for the manufacture of apparatus, guns, armor, machinery, auxiliaries and structural parts in this country, the parts to be exported and assembled into a. com- pleted ship at Vladivostock. and they requested our firm to undertake the design and allied technical work. 9. It was further stated by the Russians that in accord with recent treaty arrengements, a battleship for Russia, to be used in the East, was under no limitation of gun sizes or displacement. 3 10. The Russian representatives further stated that their governmental policy was to develop and further the most advanced techni- cal engineering and scientific approach to such a project and therefore they would expect this firm to develop in such 8. design B. most advanced type of ship, machinery, etc. and they would recognize that such design would not necessarily be in the traditional manner that ships are being designed and com tructed for the principal naval powers. In other words, they desired to make at one step, the greatest possible technical ad- vance, unhampered 8.8 Russia is by precedent and tradition with respect to heavy naval vessels, and they recognized but accept the greater technical risks associated with such a course. 11. In reply, we restated the condition which had been out- lined to Mr. Compton on August 4th, namely that this firm would only undertake work for a foreign government on naval design, provided such work was considered by the propoer high officials of the United States government to be to the advantage of the United States. 12. The Russian representatives stated in reply that they had taken up this subject with various high United States government offi- cials of the State and Navy Departments, and that they were satisfied that the United States government com ideredthe project outlined to be advantageous, and that our firm, on inquiry, would receive the assurance it required. In support of these statements the Russian representatives presented an original letter from the State Department dated February 27th, 1937, photostatic copy of which has been obtained from the Russian representatives and is annexed hereto. You will note from this communi- cationthat the State Department definitely takes the position there is no objection to the procedure proposed. 13. The undersigned again stated that while this le tter from the State Department indicatedthe legal right of our firm to undertake the design work for Russia, it was not sufficient; it would therefore be mecessary for us, before we would consider such an undertaking, to communicate with high officials of the Government and ascertainthat the project was to the advantage of the United States in connection with its foreign and naval policy. 14. It was further pointed out that we doubted the Govern- ment approbation which was required by us, as outlined inthe preceeding paragraph would be forthooming if such a project was allowed to inter- fere substantially with the present naval building program of the United States, and therefore, modification in the project might be desirable in order to insure that the amended project would be advantageous to the United States and justify the high officials of the United States government in viewing with favor the amended project as one which was advantageous to the foreign and naval policy of the United States. 15. We further pointed out that the amendment of the project might be desirable for technical reasons, one of which was the very great difficulty of making detailed working plans in New York, fabri- cating the structural parts and apparatus in various plants in the United States and assuring the satisfactory assembly at Vladivostock by more or less inexperienced personnel. Such difficulties could be very much ameliorated if a battleship were completed in the United States, under the direct supervision of the designers, and where inevitable errors could be corrected and necessary changes could be facilitated. 4 16. In order therefore, to make such a project more advantag- eous to the United States, and avoid technical difficulties, we recom- mended that the proper course of procedure would be for Russia to contract for one battleship complete, to be constructed in this country, by 8. shipyard not now doing or equipped for the construction of heavy naval vessels (cruisers, airplane carriers or battleships). Simultan- eously, contracts would be made for all of the materials, apparatus, armor, guns and the like for a duplicate ship, such parts to be exported to Vladivostock andthere assembled. 17. We pointed out to the Russian representatives that the construction of a battleship in this country, in a yard not now equipped to build heavy naval vessels would result in the improvement and expan- sion of construction facilities for heavy shipbuilding, together with training of personnel for such work. Such expansion of heavy shipbuild- ing facilities in the United States during the next few years is most advantageous since the United States has in mind a considerable program of heavy naval and merchant shipbuilding. In the event of war, such increased heavy shipbuilding facilities are of advantage and the Gov- ernment would be justified for these reasons in accepting the minor and incidental interference with the current Naval shipbuilding. 18. We further pointed out that the ship being built in the United States would necessarily be in advance of the second ship being assembled in Vladivostock, so that the accuracy of design, correction of errors and the necessary changes would be carried out on the ship being built in the United States, and such corrections and changes would thus expedite and simplify the assembly of the ship at Vladi- vostock. 19. The Russians replied that their Government had in view the construction of two or more battleships, but that at this time they were only authorized to negotiate for the design of the ship and the fabrication of parts for one vessel to be erected at Vladivostock. The Russians, however, recognized the advantages outlined for the amended project suggested by us. The principle disadvantage that they foresaw was that should Russia become involved in & war in which the United States was not a participant on the side of Russia, that the United States might invoke the Neutrality Law which would prevent the delivery of the ship under construction, or the fabricated parts and apparatus for the ship at Vladivostock. Likewise, they pointed out, in the event the United States became engaged in a war, the battleship building in the United States might be commandeered by the United States government and this procedure might likewise be applied to the parts under construction for the ship in Vladivostock. 20. We pointed out that these contingencies undoubtedly exist and will have to be accepted if the Russians are to secure parts of a battleship or the construction of a battleship in the United States. At the same time, as far as B. private citizen can forecast, duringthe period of five or six years involved in this project, it is difficult to imagine Russia and the United States except in friendly relations, and therefore, in the event the ship or parts were commandeered, it may be assumed that a. satisfactory basis of just compensation would be worked out between Russia and the United States. 5 21. The Russian representatives replied that they were 1m- pressed with the wisdom of the amended project, the advantages to both the United States and Russia, and that if we would make a preliminary design which met with their approval, the amended project would be presented by them to their Government, and they believed that the project would be accepted and they would obtain the me cessary authority to proceed as outlined above. 22. As you are aware, prior to 1933, our firm confined its activities entirely to the design of commercial vessels. In 1933, due to the expansion of the naval shipbuilding program, private shipbuilders approached us with the suggestion that we act for them in connection with the design work involved if they should secure a naval shipbuild- ing contract. 23. Before further negotiating with such private shipbuilders as above, the undersigned called on Rear Admiral E. S. Land, (cc), U.S.N., then Chief of the Bureau of Construction & Repair, and Rear Admiral S. M. Robinson, U.S.N., then Chief of the Bureau of Engineering and inquired whether the entrance of this firm into Naval designing would be welcome and advantageous to the Navy. We statedthat we had no desire to enter on naval design work and build up the very large technical staff required, unless we could be assured that such a. procedure was advantageous to the United States and would be welcomed by the Navy. We were assured that the Navy would welcome the entrance of our firm into naval design work and Admiral Robinson expressed the hope that we would advance Naval engineering in line with the great advance which we had been able to make in connection with engineering in merchant vessels. His feeling was that the Navy required most advanced engineering and that therefore, we would be welcome, in spite of the fact that our firm necessarily lacked intimate knowledge of naval requirements. 24. Acting on this advice and pursuant to the award of des- troyers of the 1933 program, our firm undertook, on behalf of United Shipyards, Inc., Federal Shipbuilding & Dry Dock Co. and Bath Iron Works Corpn. the development of plans for Destroyers DD364-369, and the sister ships being built in Navy Yards. The next year, 1934, we under- took the development of the plans of Destroyers DD381 and 383 for Fed- eral Shipbuilding and Dry Dock Company, and in 1935 we undertook the development of the plans for Destroyers DD394 to 396 for Bath Iron Works Corpn., and for Destroyers DD397-399 for Federal Shipbuilding & Dry Dook Company. In 1936 we undertook the development of plans for Destroyers DD409-14 being constructed by Bath Iron Works Corpn., Federal Shipbuilding & Dry Dock Co. and Newport News Shipbuilding & Dry Dock Co. 25. In the development of the DD364-9 Class and subsequent designs, a very modern and novel type of machinery has been developed, which has proven rugged and highly economical; the cruising radius of the destroyers mentioned at 12 and 15 knots, important cruising speeds, being from 25% to 33% greater than destroyers with other types of machinery. Since 1933, the type of machinery suggested by our firm on behalf of the shipyards, has been installed or will be installed in 53 of the 73 destroyers authorized since and including 1933. In this 6 year's program, for the first time, the Navy Department specified, without alternative, the type of high efficiency and rugged machinery which has been developed under our direction. Our firm is naturally proud of the fact that the Chiefs of the Bureau of Construction & Repair and Engineering, and other officers are pleased and satisfied with the naval designwork that we have done during the last four years and that this year the Navy required the type of machinery we have advocated without permitting an alternative. 26. You are aware that this firm is a corporation, the control of which is owned by Mr. F. H. Gibbs and the undersigned. No shipyard, apparatus manufacturer or material supplier has any interest in this firm, and we are naturally proud of the fact that so far B.S we know, it is at present the largest independent engineering organization in the world, and its activities are wholly devoted to ship design. We have an organization which totals about 475 persons. 27. The Navy Department, through the Assistant Secretary of the Navy and Technical Bureau Chiefs has expressed the opinion that our firm, with its intimate knowledge of destroyer design, is a dis- tinot asset to the United States inthe event of a national emergency. Due to our independent status and the confidence of the Navy in our principles,w are in a position to not with smaller shipyards, inex- perienced in naval work but which may well be called on to build destroyers for the Navy incase of war and thus by handling the tech- nical details with these yards, assist, relieve and conserve the technical personnel of the Navy. 28. The building up of this organization for naval design work has entailed great and painstaking effort, and the success which has attended the work carried out, as attested by the adoption in the latest vessels of the engineering principles advocated by this firm is a source of great satisfaction. You can well understand, therefore why this firm will take no action or undertake no work of any kind, and particularly naval design work for foreign powers which will in any way tend to affect adversely our standing with the United States Navy. We repeat that we are proud of this high standing and much as we would regret to have to disband B. large part of our staff on account of having no Naval design work to do, we would face such a contingency rather than undertake any foreign design work which was not advantageous to the naval and foreign policy of the United States. 29. During our conference of September 2nd, you deplored the necessity for the building of naval vessels. We agree with you fully in this; but in view of the World War and unhappy developments since, it is agreed that this country cannot fail to provide adequately for national defense. 30. In so far 0.8 the Russian proposal is concerned, you pointed out, in which thought we fully concur, that a refusal to assist the Russians in the construction of battleships will not prevent Russia building battleships in one way or another. If, therefore, the project as outlined above for the construction of a battleship in this country and the supplying of apparatus, structural parts and the like for assembly at Vladivostock of B. second ship is definitely advantageous to the United States, we would feel justified in undertaking the work. Conversely, if it is not to the advantage of the United States, we would not care to undertake it. 7 31. We desire to summarize the advantages to the United States of this project, which you reviewed during our meeting of September 2nd: (a) A large battleship of the most modern type would be under construction in the United States during the next five or six years, so that if the United States should become involved in a war, such a vessel might be commandeered and thus added to the naval strength of the United States to assist in meeting such an emergency. (b) A shipbuilding yard, not now equipped for heavy naval construction will have its facilities expanded and developed, and its personnel trained so that the United States will have available an additional major shipbuilding establishment, cap- able of handling heavy naval work in an emergency and also capable of handling heavy commercial work, S. program of which has been proposed by the U. S. Maritime Commission. (c) A large sum of money will be spent in the heavy technical industries of the United States. (d) In accordance with the requirements of the Russians, such a battleship will contain the most advanced engineering and design without the necessity for adhering to procedures and precedents which surround such construction for the prin- ciple naval powers. In other words, advanced technique may be installed in such a vessel and resulting sound conclusions will be drawn therefrom to the advantage of the United States Navy. (e) It would be a condition of the arrangement with the Russians (with which they have concurred) that all of the information with respect to the Battleship design and con- struction would be made are ilable to the United States Naval authorities as the work proceeds so that our technical bureaus would have available such current information for comparison with designs which they have now underway. We, in turn, would not expect information on the latest American developments, except those which the Naval technical bureaus would feel it advisable that we should have. (f) The carrying out of such a project by our firm will assure the continuance of our organization in the design of naval vessels and will expand its information and experience with respect to heavy naval vessels. 32. There appear to be possible disadvantages which you suggested as follows: (a) That our firm would seek to obtain information with respect to current battleship design from the Navy and dis- close such information to the Russians. 8 (b) That we would be in a position to hire draftsmen or other technical assistants at large increases of pay, thus attracting from yards presently engaged in naval design work for the United States men needed for such work. 33. The undersigned pointedo ut to you in connection with Paragraph 32 (a) relating to disclosure of secret information, that the experience of the Government with us over a period of fourteen (14) years, and the intimate experience of the Navy with our firm over a. period of four years must have indicated our good faith and our de- sire at all times to assist the government. We would hardly approach this Russian project as disclosed in this communication and as discussed with you, unless we were prepared to take every reasonable precaution to prevent the disclosure of secret information. Our work to date for the Navy has been wholly on destroyers which are unlike battleships, and therefore, aside from the fact that we are experienced engineers, we would not feel that the work we have done thus far for the Govern- ment would involve the risk of disclosure of Naval secrets in respect of battleship design. We understand that the Navy is in accord with making available information on older battleships designed fifteen or more years ago, but beyond this we would not seek information from the Navy. 34. In connection with Paragraph 32 (b) above, relating to hiring technical men on high salaries, we have faced the contingency to which you refer during the last four years. During that time we have built up a large staff and we have not sought to hire draftsmen or technical men from a Navy Yard or private shipyard doing Navy work, unless we could satisfy ourselves that the employer in question would not be handicapped thereby. Our policy in this respect is well known in the industry. A large part of our staff has been recruited from personnel in other industries. With respect to the scale of pay, the policy of our firm is to pay the highest salary rate determined by the prevailing rates for the technical personnel in the largest shipbuild- ing firms, taking into consideration the fact that our establishment is located in New York City where the cost of living is admittedly higher. We assure you that we have no intention of deviating from this policy, in the event that we should undertake the work of design on the Russian battleship, and we point out that our organization is fully manned so that we do not face the problem of building it up as we did in 1933. It should be understood, however, that we will have to acquire certain specialists, but this is quite different from building up a large organization at the expense of the yards doing naval work. 35. We have felt it desirable to put before you fully this confirmation of the conversation which we had with you on September 2nd, at which Mr. Compton was also present, because this matter is a most important one for our firm, and we must be guided by the opinion of the high officers of our Government who are able to tell us whether this project is to the advantage of the United States. 9 36. We will welcome the opportunity to discuss this matter fully at the meeting which we understand will be arranged by you with the Chief of Naval Operations, Chief of the Bureau of Construction & Repair and Chief of the Bureau of Engineering. 37. Thanking you for your consideration of this matter, we remain. Respectfully yours, GIBBS & COX, INC. withins hidds. WILLIAM FRANCIS GIBBS BATTLESHIP Characteristics: Standard displacement not less 35,000 tons Armament: 1st variation: Nine 406 nun (16 in.) guns in 3 triple turrets Sixteen 130 mm (5.1 in) guns in 8 double turrets Sixteen 37 mm automatic guns in pair mounts 2nd Variation: Nine 406 mm (16 in) guns in 3 triple turrets Twelve 152 mm (6 in) guns in 6 double turrets Twelve 100 mm (3.94 in) guns Sixteen 37 mm automatic guns in pair mounts Fire Control: Complete systems Ammunition: For 406 mm (16 in) 100 shells per gun For 130 mm (5.1 in) 200 shells per gun For 100 mm (3.94 in) 400 shells per gun For 37 mm 2000 shells per gun Armor: Deck - 203 mm (8 in) Belt - 406 mm (16 in) Speed: 30 Knots Radius of Action: 5,000 miles at economical speed Weight of Turret, with armor of the revolving portion: 2100 tons Diameter of Turret's base band: 12.m m. Catapults for Airplanes GOORESS OFFICIAL COMMUNICATIONS TO THE SECRETARY OF STATE WASHINGTON, D.C. DEPARTMENT OF STATE WASHINGTON In reply refer to CA 711.00111 Armament_Control/413 February 27, 1937 Military Secrets Carp Export & Import Corporation, 220 Fifth Avenue, New York, New York. Sirs: The receipt is acknowledged of your letter of February 20, 1937, with further reference to your pro- posal to purchase in this country for exportation to the Union of Soviet Socialist Republics materials, specifica- tions, and equipment for use in the construction and arm- ing of naval vessels. As stated in my letter of January 13, there are no treaties or statutes, except the provisions of the Espion- age Act of June 15, 1917, in regard to the revelation of information relating to the National Defense, which would constrain private American naval architects from preparing designs, plans, working drawings and specifications for vessels to be exported to the Union of Soviet Socialist Republics, or American companies from manufacturing and selling -2- selling for export to the Union of Soviet Socialist Re- publics equipment for naval vessels, and there would be no objection on the part of this Government to transactions of this character which were in accordance with the law. I shall be pleased to provide appropriate information concerning the policy of this Government with reference to transactions of this nature to any American manufacturer or other interested person who might make inquiry in regard thereto, but I would not consider it proper to initiate correspondence on this subject with a manufacturer who had not addressed an inquiry to me. Very truly yours, For the Secretary of State: Charl w Charles W. Yost, Chief Office of Arms and Munitions Control PSF In reply refer to Initials NAVY DEPARTMENT and No. OFFICE OF THE CHIEF OF NAVAL OPERATIONS many WASHINGTON 19 January, 1938. Memorandum For The President:- Subject: Tugs, Yachts and Patrol Vessels - Use of by the Navy. 1. Referring to your memorandum regarding the above subject, I enclose a memorandum from the Chief of Naval Operations giving the information desired. 2. The steps already taken and now being taken by the Navy Department appear adequate. W. B. Woodson. PSF Navy In reply refer to Initials NAVY DEPARTMENT and No. OFFICE OF CHIEF OF NAVAL OPERATIONS Op-12D-MG WASHINGTON (SC) A4-3/L9 II 19 JAN 1938 CONFIDENTIAL Memorandum for the Naval Aide to the President. 1. With reference to your memorandum of 17 January 1938, the follow- ing information is submitted: (a) The Commandant of each Naval District maintains lists of all small craft within his district, classified in accordance with their possible use by the Navy in war. Included in these lists are yachts, both large and small. Most of these yachts fall in the categories of patrol vessels, escort vessels and submarine chasers. Reports of these vessels, by name, are sub- mitted to the Chief of Naval Operations semi-annually on 1 April and 1 September. Under the Merchant Marine Act of 1936, authority for requisitioning these vessels is vested in the Maritime Commission. This act provides that, when taken or used, the owner shall be paid the fair actual value at the time of taking, or just compensation for the vessel's use. "In the case of a vessel taken and used, but not purchased, the vessel shall be restored to the owner in a condition at least as good as when taken, less reasonable wear and tear, or the owner shall be paid an amount for reconditioning sufficient to place the vessel in such condition." The question of the actual taking over of these vessels is now under study by the Maritime Commission and the Nevy Department. Tentative procedure, agreed upon to date, provides that District Commendants will furnish the represent- ative of the Maritime Commission in the district a list of vessels to be req- uisitioned. These craft will be requisitioned by the Commission through proper notification to owners, but the actual physical taking over will be accomplished by the representatives of the Navy, who will be responsible for furnishing to the Commission a complete survey report, inventories, expendable equipment, etc. on forms furnished for that purpose. Franklin D. Roosevelt Library DECLASSIFIED DOD DIR. 5200.9 (9/27/58) Date- 2/12/59 Signature- call d. spicer CONFIDENTIA CONFIDENTIAL (b) Lists of vessels, by name, suitable for use as seagoing tugs and/or coastal minesweepers are also maintained by the District Commandant under the same conditions as outlined above for patrol vessels. Most of the trawlers, fishing vessels, etc., are at present classed as coastal mine- sweepers, but their characteristics are known and they can be used as sea- going tugs if necessity arises. 2. The number of vessels at present carried in the classes covering yachts, fishing vessels and seagoing tugs are as given below: Coastal Mine Sweepers 512 Seagoing Tugs 147 Sub Chasers 111 Yachts (seagoing) 19 Yachts (coastal) 52 Inspection and listing is still going on. WILLIAM D. LEAHY ficusing January 15, 1938 Memo to Captain Woodson from the President In re-checking availability of yachts and tugs for patrol in case of War. SEE Captain Woodson (s) Drawer 2-1938 See -- - - PPF 4354 file NAVY DEPARTMENT OFFICE OF THE CHIEF OF NAVAL OPERATIONS WASHINGTON Confidential 21 January, 1938. Dear Miss Le Hand:- Will you please hand the President this memorandum to him from the Chief of Naval Operations. I am sure that the President is much interested. Franklin D. Roosevelt Library DECLASSIFIED Sincerely, DOD DIR. 5200.9 (9/27/58) Date- 4-7-59 W.B. Woodson, Signature- care Spicer Captain, U. S. Navy, Naval Aide to the President. Miss M. A. Le Hand, The White House, Washington, D. C. Enclosure: (Confidential) 3 PSF have In reply refer to Initials NAVY DEPARTMENT and No. OFFICE OF CHIEF OF NAVAL OPERATIONS WASHINGTON 20 January 1938 MEMORANDUM FOR THE PRESIDENT My dear Mr. President: The following extracts of a report received this day from the Naval Attache in Italy and dated 31 December 1937 are quoted for information: "Italian reaction to The President's diplomacy implemented by the sinking of the PANAY is of particular interest and importance. No news from the United States in recent years has produced such a profound impression. It is worthy of note to ob- serve that which does impress the Dictatorship Countries "From all sides and from people of different walks of life and social status, I have been asked, "Does the President really mean business?" So many "incidents" have occurred in the unsettled world, particularly Europe, in connection with the Spanish and Mediterranean situations, that many people have lost their perspective and cannot evaluate such important occurrences on the other side of the world, being engrossed in their own problems nearer home. "Many Italian business men, financiers and others of prominent families of long standing, however, realize that the United States and the British Empire are the great Consumer Countries, possessed of great wealth and extensive resources, and to whom Italy must look for future financial loans for development and consolidation of Ethiopia. The financial position of all three members of the Anti-Comintern Triangle is strained and it is not difficult to visualize the results upon them of a long war involving an economic and naval blockade. "Foreign Minister Eden stated in a Commons de- bate (during the recent Brussels Conference) that the British Empire was prepared to go as far as the United States and in conjunction with her in the Far East. The Dictators know the British Empire is in no position to do so alone. With the United States by her side the situation would be entirely different. The United States is therefore in a position where powerful, firm leadership in world diplomacy could accomplish more for world peace during the next few years than any other Country; but the success of this diplomacy depends completely upon a firm con- viction by the Dictatorship Countries that the United States is ready and willing to fight for protection of its interests. "Alignment of Italy with Japan is not popular in Italy. It is regarded as a political expedient aimed principally at England. Had Italy not become involved in Spain, she would probably never have adhered to the Anti-Comintern Pact. The warning of Mussolini against the "Yellow Peril" three years ago has not been for- gotten. It would be a tremendously grave, if not insuperable, problem to sustain the morale of the Italian people in a protracted war as an ally of Japan. "Apparently Il Duce feels impelled to give press and diplomatic suspport to Japan since joining the Anti-Comintern Pact. American press representatives in Rome are reliably informed that after Italy signed the Anti-Comintern Pact a general order was issued to the press to be favorable to Japan. This undoubtedly is responsible for the unfriendly Italian press regarding the loss of the PANAY and the diplomatic correspondence resulting therefrom. The editorial entitled "The Ludlow Case" which appeared 28 December, 1937, in Il Popolo d'Italia, is in line with the effort of the Government-controlled press to allay the anxieties of the thinking people of Italy with reference to what they consider the dangerous political policy of the Duce." Most respectfully, PSF file January 28, 1938. name Memo for the Pres. From Steve Early In re-Admiral Leahy telling the Press that Captain Ingersoll went to London on a mission for him in order to gain information from the British Admirality on the methods used for comupting exact tonnages of Men or War. SEE--Steve Early folder-Drawer 2--1938 PSF hour Feb. 3, 1938. Telegram sent to Embassy at Tokyo from Hull In re-Editorial comment on the mutilation of the flag etc. SEE--Cordell Hull folder-Drawer 1--1938 PSF: Navy a confidential la reply refer to Initials NAVY DEPARTMENT and No. OFFICE OF CHIEF OF NAVAL OPERATIONS WASHINGTON file name. February 21, 1938 Memorandum For Mr. Forster:- Subject: Stranding of U.S.S. SWALLOW. 1. Attached are several desputches which give the atory of the stranding of the U.S.S. SWALLOW. The SWALLOW was enroute to the island of Kanaga, one of the small islands in the western Aleutian chain, where we have recently established a meteorological station for the purpose of carrying supplies and replenishing personnel. Shown Captain, U. S. Navy. Woodson, Franklin D. Roosevelt Library DECLASSIFIED DOD DIR. 5200.9 (9/27/58) Date- 2-12-59 Signature- cared.Spicer CONFIDENTIAL NAVAL MESSAGE (NAVY DEPARTMENT) To From USS SWALLOW ACTION CINCUS Released by OPNAV X-6 Y-8 (Signature) COMTHIRTEEN Date 19 FEBRUARY 1938 To NITE to INFORMATION Write ACK. after addresse requiring arknowledgment ROUTINE to PRIORITY to ALL 0019 SWALLOW IS AGROUND IN HARBOR ENTRANCE AT KANAGA WITH ENGINES DISABLED. ALTHOUGH ABONDON ING SHIP IS NOT NECESSARY AT THIS TIME AS A PREVENTION AGAINST FUTURE DEVELOPMENTS WE ARE LANDING 0815 TOR IN CODE ROOM 1610w19 FEB DISTRIBUTION 38 ACT ION 01 GBA INCOMING 03 10A 11 100 13 16 19 25 23 BUAER BUNAV BUCON BUENG Franklin D Dessevelt Library BYDRO NAVA IDE DECLASSIFIED DOD DIR. 5200.9 (9/27/58) Date- 2/12/54 Signature- Carl d. Spicer - - I NAVAL MESSAGE (NAVY DEPARTMENT) From To USS SWALLOW ACTION CINCUS NAVY DEPT Released by X-G Y-8 (Signature) COMTHIRTEEN Date 19 FEB 1938 To NITE to INFORMATION Write ACE. after addresse requiring arknum ledgment ROUTINE to PRIORITY to ALL 0019 SWALLOWS STERN IS SETTLING TO THE LEVEL OF THE MAIN DECK DUE TO ALL COMPARTMENTS BEING FLOODED. QUARTERS ARE AVAILABLE FOR SHIPS PERSONNEL $959 TOR IN CODE RO OM 1758 19 FEB DISTRIBUT ION 38 ACTION gga #1 INCOMING da 19A 11 10C 13 16 19 25 23 BUNAV BUCON BUAER BUENG HYDRO NAVAIDE Franklin D. Roosevelt Library DECLASSIFIED DOD DIR. 5200.9 (9/27/58) Date- 2/12/59 Signature- care L. Spicer 4-7224 NAVAL MESSAGE (NAVY DEPARTMENT) To From uss SWALLOW ACTION OPNAV COMTHIRTEEN Released by X-S Y-8 CINCUS Signature) Date 21 FEB 1938 To NITE to INFORMATION Write ACK. after addressee requiring acknowledgment ROUTINE to PRIORITY to ALL 0619 SINCE SWALLOW IS WORKING UP ON SHORE AND APPEARS THAT SHE MIGHT TURN OVER BEFORE MORNING WE HAVE ABANDONED SHIP. WE ARE PROVIDED WITH FACILITIES AT THE BASE FGR MAINTAINING A SHIP RADIO WATCH 2205 TOR IN CODE ROOM days 20 FEB 38 ACTION SOA $1 63 19A 11 100 13 INCOMING 16. 19 ENVING 20. 23 BUAER BUHAV BUCON BUENG HYDRO NAVAIDE Franklin D. Roosevelt Library DECLASSIFIED DOD DIR. 5200.9 (9/27/58) Date- 2/12/59 Signature- Carl L. spicer 4-7224 - from A88 naval MESSAGE (NAVY DEPARTMENT) From To COMTHIRTEEN NAVY DEPT Released by X-6-3 Y-8 Date 19 FEB 1938 NITE to INFORMATION ACTION To CINCUS Write ACK. after addresse requiring acknow tedepment ROUTINE to USS SWALLOW PRIORITY to ALL 5519 I WILL SEND THE TATNUCK TO KANAGE ON AFTERNOON OF MONDAY 21 FEBRUARY TO BRING BACK THE CREW OF THE SWALLOW UNLESS YOU DIRECT OTHERWISE 1516 TOR IN CO DE ROOM 1836 19 FEB D ISTR IBUT ION 35 ACTOON BBA 01 da 19A 11 10c 13 16 19 25 NINAL BUAER BUNAV BUCON BUENG HYDRO NAVA IDE Franklin D. Roosevelt Library DECLASSIFIED DOD DIR. 5200.9 (9/27/58) Date- 2/12/59 Signature- Carl d. spicer HIM NAVAL MESSAGE (NAVY DEPARTMENT) From CINCUS To ACTION COMTH IRTEEN Released by X-G-S Y-8 Agnature) Date 19 FEB 1938 To NITE to INFORMATION NAVY DEPT Write ACK. after addresses requiring acknowledgest ROUTINE to PRIORITY to ALL 5519 REGARDING THE CONDITION OF THE SWALLOW, I SUGGEST THAT INFORMATION BE GIVEN TO COAST GUARD CUTTER WHICH IS BASED AT DUTCH HARBOR 1536 TOR IN CODE ROOM 1855 19 FEB DISTRIBUTION 38 ACTION USA 01 as 19A 11 10C INCOMING 13 16 19 25 23 BUAER BUNAV BUCON BUENG HYDRO NAVAIDE Franklin D. Roosevelt Library DECLASSIFIED DOD DIR. 5200.9 (9/27/58) Date- 2/12/59 Signature- Carl L. spair use NAVAL MESSAGE (NAVY DEPARTMENT) From To CINCUS ACTION COM INBATFOR Released by X-G-8 Y-8 Date 19 FEB 1938 To NITE to INFORMATION COMBATFOR COMSCOFOR Weile ACE. after addresses requiring acknowledgment ROUTINE to NAVDEPT COMCRUSCOFOR PRIORITY to ALL USS SALT LAKE CITY COMTHIRTEEN COMFOURTEEN 5519 IN CONNECTION WITH THE STRANDING OF THE SWALLOW AND THE TAKING OF PERSONNEL FROM KANAGA, ORGANIZE A TASK FORCE CONSIST- ING OF THE SALT LAKE CITY AND A minesweeper, HAVE THEM FUEL TO CAPACITY AND STAND BY TO PUT TO SEA. AT A LATER TIME, THERE WILL BE FURTHER INSTRUCTIONS 1541 TOR IN CODE ROOM 1855 19 FEB DISTRIBUTION 38 ACTION NCOMING XXA $1 de 15A 11 10C 13 16 19 20 23 Franklin D. Roosevelt Library BUAER BUNAV DECLASSIFIED BUCON BUENG DOD DIR. 5200.9 (9/27/58) HYDRO NAVAIDE Date- 2/12/59 Signature- care L. specer fileza THE WHITE HOUSE WASHINGTON SECRET February 10, 1938. \ MEMORANDUM FOR THE CHIEF OF STAFF THE CHIEF OF OPERATIONS I think this will interest you. Please read and return. F. D. R. attached excerpt from Lindbergs letter Franklin D. Receevelt Library DECLASSIFIED THE WHITE HOUSE WASHINGTON SECREE - February 10, 1938. MEMORANDUM FOR THE CHIEF OF STAFF THE CHIEF OF OPERATIONS I think this will interest you. Please read and return. F. D. R. Memo from Joe Kennedy enclosing excerpt from a letter written by Charles A. Lindberg. Bx In reply refer to Initiale NAVY DEPARTMENT and No. OFFICE OF THE CHIEF OF NAVAL OPERATIONS WASHINGTON 14 February 1938 MEMORANDUM FOR THE PRESIDENT I have read with much interest the paper returned herewith. The information contained therein is confirmatory of our information received from other sources. WilliamA Deahy- WAR DEPARTMENT OFFICE OF THE CHIEF OF STAFF WASHINGTON, D. C. February 11, 1938. MEMORANDUM for Colonel Watson: Herewith is a secret paper from the White House, which I found on my desk yesterday. It is unsigned and I cannot tell whether this has been sent to the Chief of Naval Operations or not. At any rate I am complying with the direction to return it to the President. I am obliged for the opportunity to obtain information of this sort and from such a source. I have checked the information very carefully in our Intelligence Branch and it checks very closely with the information that we have except as regards the number of men employed at the Junkers and Heinkel factories. The remaining information, in view of the source of the information, is taken as definitely confirming what we have on file. lualin Gray. Chief of Staff. encl. Franklin D. Roosevelt Library DECLASSIFIED DOB DIR. 5200.9 (9/27/58) Date- 11-30-69 Signature- JVDayo y R - 13106 UNITED STATES MARITIME COMMISSION TO: MEMO TO THE PRESIDENT FROM: Joseph P. Kennedy This is an excerpt from a letter written by Charles A. Lindberg, in which I thought you might be interested. JPK ... 10-6544 NMILED As you know, we have just returned from two weeks in Germany where I had a chance to see more of their aviation developments and general conditions. One cannot help being impressed with Germany regardless of the feeling he may have concerning some of the incidents which have taken place. There is a strength and vigour which it is impossible to overlook. The German aviation development is without parallel. I believe very few people realize what rapid progress has been made recently, and especially during the last year. I think Germany is probably the strongest air power in Europe. If she is not at the moment, she will be in the near future. The German facilities in the production of military aircraft are amazing and the expansion is by no means complete. I do not know how many thousand planes they can produce in a year in Germany but I believe it is many more than in any other country, not excluding the United States. The designs are excellent although, generally speaking, not yet up to our own. However, they are rapidly cutting down our margin of leadership. I think I told you last year that I went through the Junkers and Heinkel factories and that about 20,000 men were employed in the former and about 10,000 in the latter. Both of these organizations have been expanded during the last year. I understand that a new Heinkel factory has been constructed north of Berlin. TU - 2 - The present policy in Germany is to build smaller factories and more of them, in order to decentralize. The country is covered with aerodromes and aircraft factories already. The German policy is to select the best design and have it produced by various factories without regard to their ownership. In consequence, the Henschel factory near Berlin, which I visited, is producing Dornier DO-17s (a two-engined, mid-wing, all-metal bomber. The figures given me were 300 miles per hour at critical altitude of 4,000 metres and a bomb load of 2,200 lbs.) The Henschel factory is well laid out with buildings far enough apart to avoid making a mass target, and not more than two in line. Each has its own separate power plant and bomb-proof shelter with entrances leading to the workshop. American methods are obvious everywhere and handwork is minimized. For instance, the jigs are standardized so that they can be changed to accomodate any type of plane. They told me that they could change all of their jigs from the production of the Dornier DO-17 to the production of the Heinkel 111 within twenty-four hours. I counted sixty of these bombers from the time the two spars are first laid down in parallel to and including the flying field. There were twenty wings and twenty fuselages in the final assembly hangar. These were moving through on tracks and made one complete round of the hangar during the process of assembly, so that as the plane left 1000 - 3 - its assembly jig the jig was back at the beginning of the line, ready for a new fuselage. I should think that the production here is between one and three per day. To get some idea of the whole capacity of Germany, one must remember that the factory I have described is one of many and much smaller than such organizations as Junkers or Heinkel. The three planes which impressed me most in Germany were the Heinkel 111 (their standard heavy bomber), the Dornier D0-17, and the Messersmitt 109 (their standard pursuit plane). As you know, the Messersmitt 109 is an all-metal low wing monoplane. They say it is stressed for engines up to 1500 H.P. They told me that it had a top speed of just under 600 kilometers with the latest Daimler-Benz engine. I believe this develops somewhere between 1000 to 1200 H.P. I was told that they are producing seven Messersmitt 109s per day at the present time. I went through the Daimler-Benz factory at Berlin and found an excellent organization, well equipped with machine tools, in full production (two shifts per day). There were about fifty engines in final assembly and sixteen test stands. I should think that one might estimate a production of seven a day without being far off. This is one of the smaller engine factories, and one of many. The German research organizations are, in many instances, just beginning to function properly. They have also undergone an expansion programme. Their size, and the - 4 - attention they are receiving seems in keeping with the rest of the aviation programme. I shall not make this letter longer by writing about more of what I saw in Germany. I doubt that anyone can fully realize the magnitude of their aviation programme without visiting some of the establishments they have built. I think it is doubtful that any country in Europe will be able to catch up with them during the next few years. Please use the utmost discretion if you show this letter to anyone. The Germans said that they had no objection to my discussing what I saw with our own people. However, I would not want any of this information to be quoted in connection with my name. It is obvious that they feel very confident of their position in aviation. I wish I could see and talk to you about various developments over here and at home. Frankly, I am very much concerned about the future on both sides of the ocean. THE WHITE HOUSE WASHINGTON Hyde Park, N. Y., February 22, 1938. 33 Many Memorandum for Admiral Leahy: I am returning herewith the very interesting letter and memoranda prepared by Admiral Yarnell. F. D. R. (nomem attached PSF Navy In reply refer to Initials NAVY DEPARTMENT and No. OFFICE OF THE CHIEF OF NAVAL OPERATIONS WASHINGTON 18 February 1938 My dear Mr. President: I am forwarding herewith a letter received this date from Admiral Yarnell together with copies of some memoranda on the Oriental situation prepared by Admiral Yarnell for Mr. McNutt. It is believed that some of the material discussed may be of interest, and I am pleased to say that Admiral Yarnell's personal opinion as to the general features of a Pacific campaign are in very close agreement with a joint plan which General Craig and I agreed upon this morning after weeks of effort. Most respectfully, The President, The White House, It is requested that Enclasure he returned- 1 PSF file Nany In reply address not the signer of this letter, but Bureau of Navigation, Navy Department, Washington, D.C. NAVY DEPARTMENT Refer to No. Myles BUREAU OF NAVIGATION HH. WASHINGTON, D.C. 26 February 1938. Memorandum for The President. Subject: Naval Reserve Legislation. After my conference regarding Naval Reserve legislation, I have rewritten the Naval Reserve Bill and have shortened it, and am submitting a rough draft of this bill for your consideration. It differs from the original draft in the following particulars: (a), It has been rearranged in more logical sequence and shortened through this rearrangement and through the deletion of certain sections or parts of sections which might better be left to departmental authority, such as: (1) Precedence of Reserve officers among them- selves and with regular officers during peace times. (2) Deletion of authority to place a number of officers on one year's active duty (Other sections of the bill permit this to be done as training duty). heapy Inc. z IN (3) Requirements for annual inspections of Naval Reserve units and ships flying the Merchant Marine Naval Reserve flag (to be accomplished administratively). (4) Requirement that officers of the Merchant Marine Naval Reserve shall be discharged or transferred to the Volunteer Naval Re- serve three years after they cease to follow the sea. (This 1s to be accomplish- ed administratively and through the pro- visions of other sections). (5) The requirement that the Naval Reserve shall be allowed the same ranks, grades and ratings as the regular Navy, that certain officers shall be appointed by the President andothers by the Secretary, and that enlist- ments shall be for four years. (All this to be accomplished administratively). (6) The requirement that Naval Reserve officers shall be represented in the formulation of all policies, etc., and providing for a Policy Board. (This to be accomplished administratively). (7) The requirement that certain ex-Navy men now in the Naval Reserve under continuous service conditions from the regular Navy, shall be - 2 - re-enlisted in the regular Navy. (This can be accomplished administratively, if desired). (8) The requirement that for pay purposes week- end cruises shall not be regarded as drills. (This can be accomplished administratively). (9) The division of each of the branches of the Naval Reserve into various sub-sections. (This can be accomplished administratively). This redraft occupies 39 sections as compared with 57 sections of the Department draft, and approximately half the number of pages. (b) It divides the Naval Reserve into four compon- ents as follows: (1) the Service Reserve, (2) the Special Reserve, (3) The Merchant Marine Reserve and (4) the Volunteer Reserve. The following provisions of the Departmental Draft are among those retained in this bill. (c) Provision is made in the Service Reserve for regular Navy men who have left the regular Navy under honorable conditions after 4, 8 or 12 years of service, with a small amount of remunera- tion and periodic physical examinations -3- ($25,00 per year, tem of service in Reserve 4 years). (d) Provision is made for giving members of the Naval Reserve as well as of the other brandes, training duty without pay. (a) Provision is made for a number of officers of the Special Reserve in the grades of commander and captain, as well as similar provisions, but in fewer numbers, for the other two branches. The enactment of this provision would immediately provide for 146 of these higher ranking officers in the Volunteer Naval Reserve, and ultimately 280, not including an additional number in the other two classes. The principal differences between this redraft of bill and existing law are summarized as follows: (a) A separate classification is set up for those transferred or assigned to the Naval Reserve direct from the regular Navy. (b) It permits assignment of men to the above special classification (Service Reserve) after not less than one complete enlistment in the regular Navy and remuneration for these men at $25.00 per year (this feature was contained in the Act of 28 February 1925, but was later repealed. It -4- also permits assignment thereto of ex-regular Navy officers and enlisted men. (c) It changes the name of those belonging to the actively drilling components of the present Fleet Reserve to "Special Reserve". (d) It greatly increases the number of Reserve officers authorized to be carried in grades above that of lieutenant commander, and gives separate allowances of such officers for the Special Reserve, the Merchant Marine Reserve, and the Volunteer Reserve. (e) It allows one officer in the grade of rear admiral in lieu of the officer in the grade of commodore authorized by present law, and it also authorizes one officer in the Marine Corps Re- serve in the grade of brigadier general. (f) It increases the number of appointments from the Naval Reserve to the Naval Academy from 25 to 50. (g) It permits the employment on active duty of officers and men of the Homorary Retired List. (h) It liberalizes the provisions of existing law relative to compensation of Reservists injured while performing active or training duty, so as to provide compensation for injuries received at drills. - 5 - (1) It leaves the precedence of Naval Reserve officers among themselves, annual inspections of Naval Re- serve units, and certain other features of existing law to administrative action. (g) It gives the Secretary of the Navy discretion as to making transfers to the Honorary Retired List on account of age in grade. (k) It provides retired pay at a reduced rate for those members of the Honorary Retired List who have performed certain minimum active service immediately prior to their transfer thereto. (1) It extends to officers of the Merchant Marine Re- serve and Volunteer Reserve money allowances for the purchase of uniforms, heretofore restricted to officers of the Fleet Reserve. (m) It does away with the one month's retainer pay prescribed by existing law for members of the Merchant Marine Reserve, and permits drill pay in its place, depending upon departmental adminis- tration and appropriations. (n) It permits use of monies appropriated to the material bureaus for the part time or intermit- tent employment of technicists or scientists, for the active duty pay for qualified Naval Re- servists placed on active duty for the performance of these duties. - 6 - I would like very much to be afforded the opportunity of discussing this matter with you, in order that I may have your exact ideas and that this bill may fulfill your thought regarding the Naval Reserve. From the beginning of the time when I became Chief of the Bureau of Navigation I have taken a keen interest in and have worked hard with our Naval Reserve. I believe that we have & Reserve now which is efficient and which would fulfill its mission in being ready on "2" day to meet an emergency. 1 have eliminated a great amount of discontent among the Naval Reserve officers and sen, have inspected the different organizations and have tried to bring it up to the highest possible standards. In going over our War Plane, I believe we can with the present set-up meet an immediate emergency; but, of course, it is not large enough at the present time to fulfill all of the requirements which would be necessary in "X" plus 90 days - that 1s, the taking over of merchant ships and other activities incident to war. As I mentioned several days ago, the matter of the selection system of officers of the Line of the Navy is receiving very active attention by the Congress. I am prepared to lay before you for your consideration the views -7- of the Navy Department regarding this matter, and 1 would greatly appreciate being given time to discuss these two important subjects of Naval Reserve and the Selection System with you at your convenience. These matters will be taken up by Congress, as 1 understand, just as soon ns they have finished with the present bill having to do with the 20% increase in our Navy. Very respectfully, PSF Navy PROPOSED NAVAL RESERVE BILL REDRAFT OF DEPARTMENTAL DRAFT FEBRUARY 1938 A BILL To provide for the creation, organization, administration, and maintenance of a Naval Reserve and a Marine Corps Reserve. TITLE I - DISSOLUTION OF EXISTING RESERVE, ORGANIZATION OF NEW RESERVE AND GENERAL. Be it enacted by the Senate and House of Representa- tives of the United States of America in Congress assembled, That the Naval Reserve established under the Act of February 28, 1925, is hereby abolished, and in lieu thereof there is hereby created and established as a component part of the United States Navy, a Naval Reserve which shall consist of the Service Reserve, the Special Reserve, the Merchant Marine Reserve and the Volunteer Reserve: Provided, That all men who on the date of this Act are members of the Fleet Naval Reserve as the result of sixteen or more years of active naval service, Reserve are hereby transferred to the Service created by this Act, and shall receive the same pay, allowances, and benefits which they were receiving under the laws in force immediately prior to the approval of this Act, and all other members of the Fleet Naval Reserve are hereby transferred to the Special Reserve; and all officers and men who on the date of this Act are members of the Merchant Marine Naval Reserve and Volunteer Naval Reserve, including aviation cadets, are hereby transferred to the Mer- chant Marine Reserve and Volunteer Reserve respectively: Provided further, That such transfers of officers and men shall be for the unexpired period of their current appointments or enlistments in the Naval Reserve and in the same grades, ranks or ratings and with the same dates of precedence held by them on the date of such transfer: And provided further, That nothing contained in this Act shall affect the status or pay of members of the Naval Reserve Force or the Naval Reserve heretofore retired with or without pay, except that members of the Honorary Retired List on the date of the approval hereof are hereby transferred to the Honorary Retired List for the Naval Reserve created by Section 309, Title III, of this Act. Sec. 2. That the United States Marine Corps Reserve established under the Act of February 28, 1925, is hereby abolished, and in lieu thereof there is hereby created and established as a component part of the United States Marine Corps, a Marine Corps Reserve under the same provisions in all respects (except as may be necessary to adapt said provi- sions to the Marine Corps) as those contained in this Act or which may hereafter be enacted providing for the Naval Reserve: Provided, That the Marine Corps Reserve shall consist of the Service Reserve, the Special Reserve and the Volunteer Reserve, corresponding, as near as may be to similar classes of the Naval Reserve. Sec. 3. That the Act of February 28, 1925, entitled - 2 - "An Act for the creation, organization, administration and maintenance of a Naval Reserve and & Marine Corps Reserve", (45 Stat. 1080), as amended by the Acts of March 4, 1925, Section 19 (43 Stat. 1276); January 19, 1929, Section 3 (45 Stat. 1090); March 2, 1929 (45 Stat. 1476); May 23, 1930, Section 2 (46 Stat. 375); June 11, 1930 (46 Stat. 556); July 3, 1930, Section 1 (46 Stat. 1016); June 30, 1932, Section 1 (47 Stat. 431, 439); February 14, 1933 (47 Stat. 801); and May 29, 1934, Section 17 (48 Stat. 813) as contained in the United States Code, Title 34, Chapter 15, is hereby repealed. Sec. 4. That the Naval Reserve shall be composed of male citizens of the United States and of the insular possess- ions of the United States of seventeen years of age or over who by appointment or enlistment therein under regulations prescribed by the Secretary of the Navy or by transfer thereto as in this Act provided, obligate themselves to serve in the Navy in time of war or when in the opinion of the President a officer or man or the Naval Reserve shall he a member or aug national emergency exists: Provided: That non other naval or military organization except the Naval Militia: Provided further, That no existing law shall be construed to prevent any member of the Naval Reserve from accepting employment in any civil branch of the public service nor from receiving the pay and allowances incident to such employment in addition to - 3 - any pay and allowances to which he may be entitled under the provisions of this Act, nor as prohibiting him from practicing his civilian profession or occupation before or in connection with any department of the Federal Government. Sec. 5. That any member of the Naval Reserve including those on the Honorary Retired List created by Section 309, Title III, of this Act, or who may have been retired, may be ordered to active duty by the Secretary of the Navy in time of war or when in the opinion of the President a national emergency exists and may be required to perform active duty throughout the war or until the nationalemergency ceases to exist; but in time of he peace, except as otherwise provided in this Act, they shall only be ordered to or continued on active duty with their own consent: Provided, That the Secretary of the Navy may release any member from active duty either in time of war or in time of peace. Sec. 6. That in time of peace no officer or man of the Naval Reserve shall be discharged except upon expiration of his term of service or upon his own request or for full and sufficient cause, in the discretion of such administrative authority as the Secretary of the Navy may designate: Provided, That within a reasonable time prior to discharge for cause, officers shall be given an opportunity to be heard by the Secretary of the Navy, or such administrative authority or other agency as he may designate, which opportunity will be considered as having been given through the mailing of notice to their last known address: Provided further, That officers and enlisted men of the Naval Reserve on active duty shall be subject to separation therefrom in the same manner as may be provided by or in pursuance of law for the separation of officers and enlisted men of the regular Navy, subject to the provisions of Section 301, Title III, of this Act: And provided further, That members of the Service Reserve and officers and enlisted men who may have heretofore been transferred to the retired list of the Naval Reserve Force or the Naval Reserve or the Honorary Retired List with pay or may hereafter be 80 transferred, shall at all times be subject to the laws, regulations and orders for the government of the Navy and shall not be discharged therefrom prior to the expiration of their term of service, without their consent, except by sentence of a court-martial, or, in the dis- cretion of the Secretary of the Navy, when sentenced by civil authorities to confinement in a state or federal penitentiary, as a result of a conviction for a felony. Sec. 7. That officers and men of the Naval Reserve, includ- ing those on the Honorary Retired List or who may have been retired, when employed on active duty or on training duty, with pay, or when employed in authorized travel to or from such duty, and shall receive the same pay and allowances as is received by officers and men of the regular Navy of the same rank, grade or rating, and of the same length of service which shall include service in the Navy, Marine Corps, Coast Guard, Naval Reserve Force, Naval Militia, National Naval Volunteers, Marine Corps Reserve, or Naval Reserve, and they shall when travelling under orders or under competent authority receive transportation in kind, mileage or actual expenses as provided by law for travel performed by officers and men of the regular Navy: Provided, That aviation cadets shall receive the pay, allowances and other emoluments provided for them by the Act of April 15, 1935 (Vol. 49 Statutes at Large, Page 157): Provided further, That when officers and men of the Naval Reserve perform active duty or training duty with pay for a period of less than thirty days, such duty performed on the thirty-first day of any month shall be paid for at the same rate as for other days: Provided further, That officers and enlisted men while employed on active duty or training duty, with pay, which involves the actual flying in aircraft in accordance with regulations prescribed by the Secretary of the Navy, shall receive the same increase of the pay of their grades, ranks or ratings, as may be received by officers and enlisted men in similar grades, ranks and ratings in the regular Navy for the performance of similar duty. Sec. 8. That appropriations made to the various bureaus and offices of the Navy Department for part time or intermittent employ- ment of scientists, technicists and other personnel in connection with the work of such bureau and offices, shall be available for the active duty pay and allowances of such members of the Naval Reserve as, in the discretion of the Secretary of the Navy, may b e placed on temporary active duty for the purpose of prosecut- ing such work. Sec. 9. That the Secretary of the Navy shall prescribe all necessary and proper regulations, not inconsistent with the provisions of this Act, for the recruiting, organization, govern- ment, administration, training, inspection, and mobilization of the Naval Reserve, and shall detail such officers and enlisted men of the regular Navy and the Naval Reserve, and shall make available such vessels, material, armament, equipment and other facilities of the regular Navy as he may deem necessary and advisable for the development of the Naval Reserve in accordance with the provisions of this Act: Provided further, That all officers and employees of the United States or of the District of Columbia who are members of the Naval Reserve and assigned to any class thereof shall be entitled to leave of absence from their respective duties without loss of pay, time, or efficiency rating, on all days during which they may be employed with or without pay under the orders or authorization of competent authority, on train- ing duty for periods not to exceed fifteen days in any one calendar year. Sec. 10. That it is the purpose and intent of this Act that the United States Naval Reserve and the United States Marine Corps Reserve shall be administered with the definite objective of reach- ing the maximum numerical strength of trained and qualified officers and enlisted men in the several classes, as may be determined by the Secretary of the Navy, within a period of not more than ten years and, as nearly as may be possible, by equal annual increments. Sec. 11. That the necessary funds are hereby authorized to be appropriated annually, to be paid out of any money in the Treasury not otherwise appropriated, for the support of the Naval Reserve, including all expenses pertaining thereto as authorized by law. TITLE II - SERVICE RESERVE Sec. 201. That the Service Reserve shall be composed of officers assigned thereto as herein provided and of enlisted men transferred or assigned thereto in accordance with the provisions of this Act: Provided, That subject to their own consent, ex- officers and ex-enlisted men of the regular Navy who have been honorably discharged therefrom after not less than four years service therein, may, in the discretion of the Secretary of the Navy, be assigned to the Service Reserve created by this Act. Sec. 202. That for all purposes of this Act & complete enlistment during minority shall be counted as four years' service and any enlistment terminated within three months prior to the expiration of the term of such enlistment shall be counted as the full term of service for which enlisted: Provided, That all transfers of enlisted men to the Fleet Naval Reserve or to the Service Reserve, and all transfers of members of the Fleet Naval Reserve or the Service Reserve to the retired list of the regular Navy, hereafter or heretofore made by the Navy Department, shall Syrvice be conclusive for all purposes, and all men so transferred shall, from the date of transfer, be entitled to pay and allowance in accordance with their ranks or ratings and length of service as determined by the Navy Department: Provided further, That the Secretary of the Navy, upon discovery of any error or omission in the service, rank or rating for transfer or retirement, is authorized to correct the same and upon such correction the man so transferred or retired shall be entitled to pay and allowances as determined by the Navy Department. Sec. 203. That men serving in the regular Navy, who, having enlisted therein on July 1, 1925, or prior thereto, or who having been discharged therefrom prior to July 1, 1925, and reenlisted in the regular Navy within three months from the date of discharge, or who were serving in the Naval Reserve Force on July 1, 1925, in an enrollment entered into within four months from the date of their discharge from the regular Navy and thereafter reenlisted in the regular Navy within three months from the date of their discharge from the Naval Reserve created by the Act of February 28, 1925, shall be entitled to be transferred to the Service Reserve on the completion of sixteen or more years' naval service, and when 80 transferred shall, except when on active duty, be entitled to receive, if they have had sixteen but less than twenty years' naval service, pay at the rate of one-third the base pay they were receiv- ing at the time of transfer, plus all permanent additions thereto, and if they have had twenty or more years' naval service, pay at the rate of one-half of the base pay they were receiving at the time of transfer, plus all permanent additions thereto: Provided, That the X pay authorized in this section shall be increased 10 per centum for all men who may be credited with extraordinary heroism in the line of duty or whose average marks in conduct for twenty or more years shall not be less than 95 per centum of the maximum: Provided further, That the determination of the Secretary of the Navy as to the definition of extraordinary heroism shall be final and conclusive for all purposes: And provided further, That enlisted men 80 trans- Jami ferred to the Service Reserve, herein created, by this section and by section 1 of this Act, shall upon completing thirty years' service, be transferred to the retired list of the regular Navy with the pay they were then legally entitled to receive, plus the allowances to which enlisted men of the regular Navy are entitled on retirement after thirty years' service. Sec. 204. That men serving in the regular Navy who first enlist- ed therein after July 1, 1925, or who reenlisted therein after July 1, 1925, having been out of the regular Navy for more than three months and who were not serving in the regular Navy on July 1, 1925, and men who first enlisted in the regular Navy after the passage of this Act, may be transferred to the Service Reserve upon the comple- 9 Mr tion of at least twenty years' naval service and provided they are then found physically and otherwise qualified to perform duty in time of war and apply for such transfer, and thereafter except when on active duty shall be paid at the rate of one-half of the base pay they are receiving at the time of transfer: Provided, That allsuch enlisted men 80 transferred to the Fleet Naval Reserve, or to the Service Reserve created by this Act shall upon completion of thirty years' service, be transferred to the retired list of the regular Navy Jame with the pay they were then legally entitled to receive plus all permanent additions thereto, and the allowances to which enlisted men of the regular Navy are entitled on retirement after thirty years' service. Sec. 205. That the Secretary of the Navy, under such regulations as he may prescribe, may require any person here- after when enlisting in the regular Navy and may authorize any new enlisted man in such service to obligate himself to serve four years in the Service Reserve upon termination of his enlistment in the regular Navy; Provided, That upon termination of their enlistment in the regular Navy, men who have so obligated them- selves shall be assigned to the Service Reserve for the four-year period, unless they apply for reenlistment or extension of their enlistment in the regular Navy, in which event they may be reenlisted or may extend their enlistment in the regular Navy: Provided further, That, except as otherwise provided for in this Act, the men 80 assigned to the Service Reserve for the four-year period, and officers and men assigned thereto under the provisions of section 201 of this Title shall not, in time of peace, be ordered to active duty, except with their own consent, and shall be under no obligation to perform training duty or drill during X that period, but shall be paid in advance $25 per annum. Enlisted men of the regular Navy assigned to the Service Reserve in accord- ance with the provisions of this section, or enlisted men who within three months from date of discharge from the regular Navy upon completion of an enlistment, enlist in the Service Reserve, may, while so in the Service Reserve, be permitted to reenlist X in the regular Navy, in which case they shall be entitled to the same benefits as if they had enlisted in the regular Navy within three months of their last discharge therefrom. Sec. 206. That in time of peace all enlisted men trans- ferred to the Service Reserve may be required to perform not more than two months' active duty in each four-year period and shall be examined physically at least once during each four-year period: Provided, That any pay which may be due any member of the Service Reserve shall be forfeited when 80 ordered by the Secretary of the Navy, upon failure, under such conditions as may be prescribed by the Secretary of the Navy, of such member to report for inspection: Provided further, That members of the Service Reserve, exclusive of assigned members thereof, found not physically quali- fied upon such examination, shall be transferred to the retired list of the regular Navy, with the pay they are then receiving, and upon the completion of thirty years' service, they shall receive the following additions: That all men coming under the cognizance of Sections 1 and 203 of this Act shall receive the allowances to which enlisted men of the regular Navy are entitled on retirement after thirty years' service: Provided further, That all men coming under the cognizance of section 204 of this Title shall receive all X permanent additions to their base pay, and the allowances to which enlisted men of the regular Navy are entitled on retirement after thirty years' service: And provided further, That in the computa- tion of service requisite for transfer to the retired list of the regular Navy, service in the Army, Navy, Marine Corps, Coast Guard, Naval Reserve Force, Fleet Naval Reserve, Service Reserve, Marine Corps Reserve of the Marine Corps and on the retired list of the regular Navy shall be included: Provided, That such service as may heretofore have been authorized by law to be counted as double time shall be credited as double time in this computation. TITLE III PROVISIONS APPLICABLE ONLY TO THE SPECIAL RESERVE, MERCHANT MARINE RESERVE AND VOLUNTEER RESERVE. Sec. 301. That officers and enlisted men of the Naval Reserve, when employed on active duty, authorized training duty, with or without pay, drill, or other equivalent instruction or duty, or when employed in authorized travel to or from such duty, drill or instruction, or during such time as they may by law be required to perform active duty, or while wearing a uniform prescribed for the Naval Reserve, shall be subject to the laws, regulations, and orders for the government of the Navy: Provided, That disciplinary action for an offense committed while subject to the laws, regu- lations and orders for the government of the Navy, shall not be barred by reason of release from duty status of an officer or enlisted man charged with the commission thereof: Provided further, That for the purpose of carrying the provisions of this section men into effect, officers and may may be retained on or returned to a duty status without their own consent but not for a longer period of time than may be required for disciplinary action. Sec. 302. That in time of peace, upon first reporting for active or training duty, after enactment hereof, at a location where uniforms are required to be worn, or after the performance of 14 drills, a commissioned or warrant officer of the Naval Reserve shall be paid a sum of $100.00 8.8 reimbursement for the purchase of the required uniforms, and thereafter he shall be paid an additional sum of $50.00 for the same purpose upon the completion of each period of four or more years in the Naval Reserve: Provided, That this latter amount of $50.00 shall not become due any officers until he has completed not less than 150 drills or periods of other equivalent instruction or duty or appropriate duties and 56 days' active dr training duty, or 75 drills and 84 days' active or training duty, or 112 days' active or training duty: Provided further, That any officer who has heretofore received a uniform gratuity shall not be entitled to either of the above- mentioned sums until the expiration of four years from the date of the receipt of such gratuity: Provided further, That uniforms for aviation cadets shall be provided as heretofore authorized by law: And provided further, That in time of war or national emergency a further sum of $150. for the purchase of required uniforms shall be paid to officers of the Naval Reserve when they first report for active duty. Sec. 303. That in time of peace midshipmen, merchant marine cadets and enlisted men of the Naval Reserve may be issued articles of uniform, bedding, and equipment in accordance with regulations to be prescribed by the Secretary of the Navy: Provided, that upon first reporting for active duty in time of war or national emergency enlisted men of the Naval Reserve may receive in addition a uniform outfit of the same value as may be authorized for enlisted personnel of the regu- lar Navy upon first enlistment. Sec. 304. That, if in time of peace any officer or en- Naval listed man of the Civilian Reserve, physically injured in the line of duty while performing active, military or naval service, or who dies as the result of such physical injury, he or his beneficiaries shall be entitled to all the benefits prescribed by law for civil employees of the United States who are physically injured in the line of duty or who die as a result thereof, and the United States Employees' Compensa- tion Commission shall have jurisdiction in such cases and shall perform the same duties with reference thereto as in the cases of civil employees of the United States so disabled: Provided, That where a person who is eligible for the bene- fits prescribed by this section is also eligible for pension under the provisions of the Act of June 23, 1937, entitled "An Act to amend the provisions of the pension laws for peace time service to include Reserve officers and members of the enlisted Reserves" (Pub. No. 159, 75th Congress, Chapter 376, First Session, H.R. 2887), he shall elect which benefit he shall receive, and for the purposes of this section and of said Act all members of the Naval Reserve will be considered as performing active, military or naval service while perform- ing active duty with or without pay, training duty with or without pay, drills, equivalent instruction orduty, appropriate duty, or other prescribed duty, or while performing travel to or from such duties, irrespective of authorization for such travel: Provided further, That for the purpose of determining the benefits to which entitled under the provisions of this section Naval Reservists so physically injured while performing the foregoing duties in a non-pay status will be held and con- sidered as receiving the pay and allowances they would have re- ceived 1f in a pay status: Provided further, That Naval Reserv- 1sts who contract sickness or disease as a result of the per- formance of active duty or training duty with or without pay shall be entitled to the same hospitalization or other treat- ment during the continuances of such sickness or disease as is accorded members of the regular Navy: And provided further, That in time of war officers of the Naval Reserve who contract sickness, injury or disease, while performing active duty shall be entitled to all the benefits prescribed for officers of the regular Navy under similar conditions. Sec. 305. That, except as provided in Section 306 here- of, in time of peace, commissioned officers appointed to the Naval Reserve shall be commissioned to serve during the pleasure of the President, in grades or ranks not above that of lieutenant commander, except that a small percentage of officers in the higher grades or ranks, may, 1f qualified, be commissioned in the grades or ranks of rear admiral, captain and commander. Warrant officers, aviation and merchant marine cadets and midshipmen shall be appointed to serve during the pleasure of the Secretary of the Navy. Except as otherwise provided in this Act, the total number of officers in such higher grades or ranks in the Special Reserve of the Naval Reserve shall not exceed one-half of one per centum of the X actual number of enlisted men regularly assigned to the divi- sions or other units of the Special Reserve of the Naval Ro serve and entitled to pay as provided in section 313 of this Title. In the Special Reserve of the Marine Corps Reserve the total number of officers in such corresponding higher grades and ranks shall be in the same proportion to the total number of officers of said Reserve of the Marine Corps Recerve 20 as the number of officers in such higher grades and ranks in the United States Marine Corps bears to the total number of officers in the U. S. Marine Corps. In the Merchant Marine and the Volunteer Naval Reservesand the Volunteer Marine Corps Reserve, the total number of officers in such higher grades or ranks shall not exceed two per centum of the actual number of commissioned officers in each of these Reserves. Sec. 306. That in time of peace there shall be allowed in the Naval Reserve one officer of the grade or rank of rear admiral, and one officer in the grade or rank of brigadier general in the Marine Corps Reserve, the remaining officers above the grade or rank of lieutenant commander shall be dis- tributed in the grades or ranks of captain and commander in such manner as the Secretary of the Navy may prescribe. When- ever a final fraction occurs in computing the authorized number of officers in these said higher grades or ranks, the nearest whole number shall be regarded as the authorized number: Provided, That to determine the authorized number of officers in the grades or ranks above lieutenant commander as provided in this Title, computations shall, under such regulations as the Secretary of the Navy may prescribe, be made at least once during each calendar year and the resulting numbers as so com- puted shall be held and considered for all purposes as the authorized number of officers in such higher grades or ranks, and shall not be varied between the dates of such computations: Provided further, That no officer of the Special Reserve or the Volunteer Reserve: of the Naval Reserve shall be appointed or promoted to the grade or rank of rear admiral, captain or commander until he has served not less than two years in the next lower grade: And provided further, That no officer shall be reduced in rank as a result of any computation so made and that nothing contained in this Act shall be construed as re- ducing the present grade, rank or rating of any officer of man in the Naval Reserve, or as otherwise affecting the commissions now held by them or as restricting the promotion of officers in the Naval Reserve in time of war as provided for in section 312 of this Title. Sec. 307. That hereafter the Secretary of the Navy is authorized to appoint midshipmen to the Naval Academy from enlisted men of the Naval Reserve and Marine Corps Reserve under similar conditions 80 far as applicable as prescribed by law for appointments from enlisted men of the Navy: Provided, That not more than 50 midshipmen shall be appointed in any one year under the authority contained in this section except that in the event the quota of midshipmen from the enlisted men of the regular Navy is not filled in any one year, the Secretary of the Navy shall have the authority to fill such vacancies with additional men from the Naval Reserve. Sec. 308. That all officers of the Naval Reserve and the Marine Corps Reserve shall be examined physically once every four years, or oftener, as may be deemed necessary, and if upon such examination they are found not physically qualified for active service they shall be honorably discharged or, within the dis- cretion of such administrative authority as the Secretary of the Navy may designate, placed on the honorary retired list provided for in section 309 of this Title: Provided, That in determining an officer's qualifications for active service, due consideration shall be given to the character of the duty to be assigned him in the event of war or national emergency and, in the discretion of the Secretary of the Navy, to his age in grade. The Secretary of the Navy may, in his discretion, discharge or place an officer of the Naval Reserve on the honorary retired list on account of age in grade, when such officer has attained the age of forty years if in the grade of ensign or lieutenant, junior grade, forty-six years if in the grade of lieutenant, Fifty-two years if in the grade of lieutenant commander, or fifty-eight years if in the grade of com- mander. Sec. 309. That an honorary retired list for the Naval Reserve is hereby established and officers and enlisted men of the Naval Reserve shall be placed on this retired list of the Naval Reserve without pay or allowances, upon reaching the age of sixty-four years, or upon their own request, after thirty years' service in the Naval Reserve, except as otherwise provided in this Act: Provided, That service in the Army, Navy, Marine Corps, Naval Reserve Force, National Naval Volunteers, Naval Reserve, Naval Militia prior to August 29, 1916, Naval Auxiliary Service and Coast Guard, Marine Corps Reserve Force and Marine Corps Reserve shall be counted as service in the Naval Reserve under the provisions of this section: Provided further, That Naval Reservists who have been specially commended for their performance of duty in actual combat with the enemy during the World War, by the head of the executive department under whose jurisdiction such duty was performed, shall, when placed upon the honorary retired list, be advanced to the next higher grade. Sec. 310. That officers and men of the Honorary Retired List created by Section 309 of this Title, who have performed a total of not less than thirty years' active service in the Army, Navy, Marine Corps, Naval Reserve, Naval Reserve Force, National Naval Volunteers, Naval Militia in Federal Status, Naval Auxiliary Service, Coast Guard, Marine Corps Reserve Force and Marine Corps Reserve, or who have had not less than twenty years' such active X service, the last ten years of which shall have been performed during the eleven years immediately preceding their transfer to the Honorary Retired List of the Naval Reserve created by Section 309 of this Title or to the Honorary Retired List in existence on the date of approval of this Act, shall, except while on active duty, be entitled to pay at the rate of 50 per centum of their active duty rate of pay as prescribed in section 7 A, Title I, of this Act: Provided, That the pay of members of the Honorary Retired List prescribed by this section shall be paid from the appropriations as authorized in section x, Title I, of this Act. Sec. 311. That, in time of peace, officers of the Naval Reserve shall take precedence according to such regulations as the Secretary of the Navy may prescribe: Provided, That when mobilized with the regular Navy for war or a national emergency, each officer of the Naval Reserve shall take precedence next after that officer of the regular Navy of the same rank or grade whose X length of service in such rank or grade on the date of such mobilization is one-half or the nearest one-half of that of the Reserve officer. Sec. 312. That in time of war or national emergency, officers of the active list of the Naval Reserve or the Marine Corps Reserve employed on active duty shall be advanced in their respective corps in grade and rank in the same manner as is or may be prescribed for officers of the regular Navy or the Marine Corps, respectively, in such numbers for each grade or rank, as may be prescribed from time to time by the Secretary of the Navy, and when so advanced they shall take precedence among themselves and with other officers of the Navy and Marine Corps, in accordance with date of such advancement or promotion: Provided, That no officer of the Naval Reserve or the Marine Corps Reserve shall be advanced to a higher rank until he has qualified therefor by such mental, moral, professional, and physical examinations as the Secretary of the Navy may prescribe: Provided further, That all officers of the Naval Reserve and the Marine Corps Reserve who may be advanced to & higher grade or rank under the provisions of this Title shall be allowed the pay and allowances of the higher grade or rank from the dates of rank stated in their commissions: Provided further, That the provisions of this section shall not apply to officers who have been or may hereafter be retired from the Naval or Marine Corps Reserve Force or the Naval or Marine Corps Reserve. Sec. 313. That officers and enlisted men of the Naval Reserve shall receive compensation at the rate of one-thirtieth of the monthly base pay of their grades, ranks or ratings, not X to exceed $10.00, for attending, under competent orders, each regular drill duly prescribed under the authority of the Secretary of the Navy for the organization to which attached, or for the performance of an equal amount of such other equivalent instruction or duty, or appropriate duties, as may be prescribed by the Secretary of the Navy: Provided, That no such officer or enlisted man shall receive pay for more than 60 drills or periods of other equivalent instruction or duty or appropriate duties in any one aerial fiscal year: Provided further, That for those performing serial flights duly prescribed as a part of their training, the pay and the pay limits prescribed by this section, shall be increased by um 50 per cent for any quarter during which not less than four hours of such flying has been performed. Sec. 314. That, in addition to the pay to which they may otherwise become entitled, such officers of the Naval Reserve as may be designated by the Secretary of the Navy, regularly assigned to and commanding organizations prescribed by the Secretary of the Navy, and having administrative duties, shall receive compensation at the rate of $240.00 per year for the faithful performance of the administrative duties connected therewith. Pay under the provisions of this section or the preceding section shall not accrue to any officer or enlisted man during a period when he shall be lawfully entitled to pay for active duty or training duty. SPECIAL RESERVE Sec. 315. The Special Reserve of the Naval Reserve shall consist of organizations of officers and men available for immediate mobilization. Sec. 316. That in time of peace, except as herein otherwise provided, officers and enlisted men of the Special Class of the Naval Reserve shall be required to perform such training duty, not to exceed fifteen days annually, as may be prescribed by the Secretary of the Navy, unless excused therefrom for good and suffi- cient reasons by direction of the Secretary of the Navy: Provided, That they may be given additional training or other duty, either with or without pay, as may be authorized, with their consent, by direction of the Secretary of the Navy: Provided further, That when authorized training or other duty without pay is performed by officers or men of the Naval Reserve they may in the discretion of the Secretary of the Navy, be furnished with transportation to and from such duty, with subsistence and transfers enroute, and, during the performance of such duty, be furnished subsistence in kind or commutation thereof at a rate to be fixed from time to time by the Secretary of the Navy. MERCHANT MARINE RESERVE Sec. 317. That the Merchant Marine Reserve of the Naval Reserve shall be composed of those members of the Naval Reserve who follow, or who have within three years followed the sea as a profession, or who are employed in connection with the seafaring profession, or men who are desirable for training for service on board public vessels of the United States, or such other seagoing vessels docu- mented under the laws of the United States as may be approved by the Secretary of the Navy. Sec. 318. That in time of peace, except as herein other- wise provided, members of organized units of the Merchant Marine Reserve may be required, and other members of this Reserve may be authorized, to perform the same training duty as is prescribed for the Special Reserve. Sec. 319. That the Secretary of the Navy shall prescribe a suitable flag or pennant which may be flown as an emblem of the Merchant Marine Naval Reserve on seagoing merchant vessels documented under the laws of the United States under such regulations as he may prescribe: Provided, That such vessel be first designated by the Secretary of the Navy as suitable for service as a naval auxiliary in time of war: Provided further, That the Master or Commanding Officer and not less than fifty per centum of the other licensed officers are Navy or the Naval Reserve members of the ^ Naval Establishmont: And provided further, That such flag or pennant shall not be flown in lieu of the national ensign. VOLUNTEER RESERVE Sec. 320. That all commissioned officers, midshipmen, or merchant warms warrant officers, aviation cadets, or enlisted members of special or marine Reserve the Naval Reserve not assigned to the Floot Class or the ^ Merchant Marino Class thereof, shall be assigned to the Reserve Volunteer Class Sec. 321. That in time of peace, except as herein other- wise provided, members of organized units of the Volunteer Reserve Naval may be required and other members of this Reserve is may be authorized to perform the same training duty as ^ prescribed for the Special Reserve. Title IV - NAVAL MILITIA 401 Sec. 325. That of the organized militia, as provided by law, such part as may be duly prescribed in any State, Territory, or the District of Columbia, shall constitute a Naval Militia. Any officer or enlisted man of such Naval Militia may, in the discretion of the Secretary of the Navy, be appointed or enlisted in the Naval Reserve and assigned to the Special Reserve thereef in the grade, rank or rating not above the rank of lieutenant for which he may be qualified in accordance with such regulations as may be prescribed by the Secretary of the Navy: Provided, That each officer and enlisted man of the Naval Militia appointed or enlisted in the Naval Reserve and assigned to the Special Reserve thereof shall be required within one year after the date of his ap- pointment or enlistment in the Naval Reserve to qualify, in accordance with the regulations governing the Special Reserve of the Naval Reserve, for the rank or rating which he holds therein: Provided further, That officers and men of the Naval Reserve who are members of the Naval Militia of any State, Territory, or the District of Columbia, shall stand relieved from all service or duty in said Naval Militia when on active duty in time of war or national emergency, or when ordered to such duty: And provided further, That such vessels, material, armament, equipment, and other facilities of the Navy as are or may be made available for the Naval Reserve shall also be avail- able in accordance with regulations prescribed by the Secretary of the Navy for issue or loan to the several States, Territories, or the District of Columbia, for the use of the Naval Militia; but no such facilities of the Navy shall be furnished for use by any portion or unit of the Naval Militia unless at least ninety-five per centum of its personnel belongs to the Naval Reserve and is attached to or associated with an organization of the Special Reserve and unless its organization, administration and training conforms to the standards prescribed by the Secre- tary of the Navy for such units.