756D.94/64: Telegram

The Secretary of State to the Consul General at Batavia (Foote)

Your September 14, 1 p.m., penultimate sentence. This Government perceives no warrant for any apprehension or for dissatisfaction on the part of any Netherlands authorities regarding this Government’s record and policy in relation to sale of munitions to Netherlands East Indies Government. We have made careful examination of the record and it is patent that substantial orders have been filled over the past 2 years, that substantial contracts are in process of being filled, and that licenses for exports in large amounts are constantly being granted. In fact, the Netherlands Indies has been the fourth largest foreign purchaser of arms in the United States during 1940. A thorough investigation by the interdepartmental committee charged by the President with coordinating purchases of arms by foreign governments with purchases by this Government, during which all of the Netherlands and Netherlands Indies purchasing missions and many American manufacturers were questioned, has failed to reveal any cancellations of contracts for the sale of arms to the Netherlands Indies. Some misunderstanding appears to have arisen as a result of the fact that the above-mentioned committee was not able to approve a few relatively unimportant purchases which the Netherlands Indies desired to make. These were not approved because they would have interfered with our defense program.

You may in your discretion impart the substance of this to local authorities.

Hull