LETTER TO MR. ALLEN W. DULLES FROM GEORGE COCHRAN DOUB

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000700170061-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Document Release Date: May 4, 2007
• Sequence Number: 61
• Publication Date: June 19, 1956
• Content Type: LETTER

ASSISTANT ArroRN9Y~a ME`s ..d For Release 2007/05/06: CIA-RDP80BO1676R000700170061-2
CIVIL DIVISION
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J %10,j. `) 195o
Mr. Allen W. Dulles
Director, Central Intelligence Agency
Washington 25, D. C.
Your assistance is requested in obtaining information
relative to the disposal of twelve of fifteen ships sold by
the Maritime Administration to the Asia Development Corporation,
owned by T. Y. Fong, under contract MCc-61131 dated February 2,
19L.8.
There is enclosed a photostatic copy of a letter from
the 'iaritime Administration dated November 16, 1954 setting forth
the basic facts indicating that the Asia Development Corporation
probably breached its contract by failing to scrap twelve of
fifteen ships prior to January 3, 1951. The government may have
a substantial claim for liquidated damages if it can be proven
that scrapping was not accomplished or if scrapping occurred
after the deadline date.
Of the fifteen ships sold to the Asia Development
Corporation under the contract, there is no question about three
of them, namely Banshee, John L. Fremont, and Marivales (ex
Jamestown). Mr. Fong maintains that the scrapping of the remaining
twelve was completed on time, i.e. prior to January 3, 1951,
but the only evidence which he has produced are 7 surveyor's
certificates dated February 8 and February 9, 1951 stating that
scrapping was in progress.
From the available information it appears that the
following four ships clearly were not scrapped in time and were
sold to Chinese Communist interests in Canton?
1.
Abarenda
(ex Acme)
2.
Belusan
(ex Vistula)
3.
Kenwood
(ex Johren)
4.
Etamin (ex Isaac Babbitt)
ieyy orfl ~l to
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 Approved For Release 2007/05/06: CIA-RDP80BO1676R000700170061-2
It is possible that they never were scrapped but were made
operable by the Chinese Communist interests. It is probable that
the following four ships were not scrapped prior to the contract
deadline since information concerning their disposal is limited:
1. Antelope (ex H. H. Young)
2. Joseph Carrigan
3. Flagler
14. Henry L. Abbott
:ye request you to furnish the following information about
each of the eight ships aforementioned as well as the Benjamin
Peixotto, Edgar Allan Poe, Juan De Fuca (ex Araner) and Orvetta
(all of the twelve vessels listed were liberty type except the
Flagler and Orvetta which were cargo motor vessels):
1.
Was it scrapped completely?
2.
If so, when?
3.
If scrapped,
where?
4.
If scrapped,
If scrapped,
by whom?
state dates upon which
scrapping reached the following states
of completion: 25%, 50%,75% and 100%.
6.
If not scrapped, what happened to the ship?
Hollers Ltd, of Hong Kong and Captain w. A. Doust, a
Hong Kong surveyor who allegedly executed the surveyor',-, certificates
submitted by Fong are potential sources of information.
We would appreciate receiving this information at your
earliest convenience.
Sincerely yours,
GEORGE COCHRAN DOUB
Assistant Attorney General
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