DEAR ADMIRAL HILLENKOETTER:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00682R000300090149-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: April 17, 2001
• Sequence Number: 149
• Publication Date: December 9, 1949
• Content Type: LETTER

/ ~?'~ ' ,,.. ~~'C~'t?,C'U~ Kam, '
Approves For Release 20011#)~I~fA-RDP91'=~0682R00030009~49- `
'dOC~Declassification & Release Instructions on File -.Nor er~~sto" OC ~,~
uNrTSO srw~ w.w.v ~ ..~..............~.....
w~n~rror+ ~ ~~. ~ q ~?l~~
R.sar Adstiral R. H. Eillealtoet~
DlreoLsr of Csatral Intelit~woe
1Rashisgton Z6~, ~. C.
Diu ldariral Hillenhootter? "
The iafornation ~soatRiaod in your.letter of Decen~".+er I, 194~i,
rw!ardiag the operation of II. S. an~i foreign flag tat~lters to ports
and+r Soviet oetiatrvl has heretofore berg brought to ovr_ atteisti~n}?
flegardisa tie tsro ?eeeels wtiosed. is the first paragraph
of year lottsr, the isisraatiod oeaoersiaH the titl''1.~W HILI.B h+a
been ~~?nfiraed Dy us. 11e . eaartot ol~tais easot infornatioa oosceral ~$
the other ~-ssel weationed~ narol,i- tLe B?A1J~ARD. There i? a oargo
vrsssl by this aw ceder the Q. 8. tlwg wl:ioh we Y~ow is and has
not bees tradis6 with Rvetia. Another Teesel br th3s nacre was trkns-
ferred to Ryssi- ?u~,dwr the terns of the Lend Lewss Ap;reemr--rt in
~1,araty 1946? It has sinoe been renRwed ~IUHi.SBV and 'gat evRr b.. ~c
E ret~ira+d bT the Russians is spits o~ r+qussts ~s;de vpan this by tr_s
State D+partaeat. thin sane rel~seis aooorAing to our latest infor-
aatieqs,. sailed tros iaeaohi on C~ltobwr 18 for Dairen order ohwrtsr
tt 4 Pussies, ag+aey,, vs~ely Mvter~ilot. A third aH~CR33ARDs a
taakera is usder the Herwe6lan flan. This vessel sailed tres Sisaa-
por? Au6u,*. 10 for Dwirea and Plsdivostoh, acrd on a.u,gust S] aailA9
for lienstn.,
As previous?Y stated, the Yariti.ae Casssissi.oa has fo= s_?rce
tine b-set aware of the partioipati^a b7 nose U. S. flag taak+re in
this trade, but feels that under present oirounstascres, there ;a n~
notion which shcwld be talcw- by us. the 1~faritias Ca~isston, through
the authority vested is it by iNtiea- f of tbo S11Fp-la6 Act, 19161
as,_aaesded, ~ approve or disapprove t~ eharter of Q. S. ~'laE ves-
sels to slieasi and La bass o! satianal s~rgency or for str~rg
reasons of publto interest has eaceroised sash ?oatre~l. Such oontr.ol
b7 the l[aritine Carasissioa '.y not be *rbitrary or. c~aprietvus bnt
Host be based on the stroosest oensideratio~e o! aationa] policy.
For 6uidanoe is t~-e field of iateraational polieys the liarltiaas ~oe-
aissioa loops to the Departisat of State ride up to. this point., it
has r~aeived ao indieation WM-t the tradinH of IIaited States flag
rossels with Cowaisi*eaitro]~~,1d ports is eve~ttra:?y to over ~atioaal I~/
interes#e ~ ~ I~
+J
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~~
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Approved For Release 2001/09/04 :CIA-RDP91-00682R000300090149-
 ~ApprQve~For Release 2001/09/((~4~~P91-00682R00030009a149-9
Aotuall'e the Ifaritiae Cos~tssioa lelda~rali~-ditt?rwutial'h
seterwl steeasbi p oogaaio? !er the psyts~t o! op is6
subsidies, which oaalraot~ iaolndo Lt tho itiseraries to be aerwo~ls,
ports wAioh are vsder fo~lot or Coae~siot oeatrol? lla these are dry
cargo ser~ioes, it ss~ De that the aar6oes carried are wb~eot to ex-
p4r t aoatrol s. Ferthes'oore, sn1~ teasel s, isels-dia6 the ISSTL~IIAlI HILLS .
were sold Lo their grosent U, S. oitiaen awaers seder the authority of
the Ship Sa1N Vt,r 15~, Sostiaa l (o) of whiaY s'~itisaltr pratides~
>The contract of sale, sad the src-rtgaae 6i.t~ to
sea~.re the hayaent of the vtap-id balaneo apt the
pwrahRSe price, ei~wll t1,ot restrict the lscsrtul o~
proper use of operatics of the ~es~el.?
Ia the absenoe~ therefore, of direst adtiae fresi t~-e State Degartsr+at,
?rhxeh advtoe w~vld of coarse base to .be snde p~lie~, it is questionab:e
whether *he 1Qaritteee Cowr~issior could le6ally rostr'iat the t;.pw of
trading senttoned in your letter. Howeter? eeen'+Yt~u6h the Yarltine
CaraisBiaa s~aould attes-pt to ezeraise such aoatrol oter United Stat"'es
t1e~g eess~l s, it could not of course el i~aiaate the sotesisat of petrol wu1Q
products to 8oeist-ooatrollod pe+rte a? tcrei6tt t1a~r n-esel ? would het
tAe buriaeso. 'i'he result would einply be that Ueiilted Stats~ rl~P tes-
sels would be dsprieed of the e~Qlo>?ent, .rhic}- would reader gTeate-
t?:e~ r difficulties iz !ee*.iag their f?_nancial eb] i~~eti oaa to t1:e ,Jcver-~-
stent or baaJcin6 lnetitutions, a Situation which is alre*,c~y be:.oa~ing
crit~aal by reason of the aostisued dopressioa of the te~aker market,
9ery t*uly y o+ur s,
B. l~le~n~
iraaa
Approved For Release 2001/09/04 :CIA-RDP91-006828000300090149-9
 4 ~pprove8~ F~~ Rele~,sei,;2~.Q~/,(Jr9/0 m ~ 3i91-'~8'b682R0003000'90949-9
t'~.
Uoftad &atita 1~3r arias
Ch~ais~ ~ ~dlip D~ .
waaRi~4ory ~ D. Q.
Daar Qaoaral ~+arda~l
Ola 10 mast 14t9~ it ~rar rapoa~~tad that tbr` B~t~rd ?aNoar
~Y'P~a~ had r~aant],Y abarba+rd ~ Y. 3, and tom
!]~ Lanloara to tpaeapa~rt amt 1are+o~ !~a? CaArResaf .
AmMeai~a, to and ~alrau. ~ ~!' ~, ii~a ~t~y~~
~ilL aa~ tba Haaanr,Qaa=d,~ lead aira~ Pfd idto the li~it~raoaaei
boupd !af Dalran.
additional intoroat-ioo Lat bNn raaa~i~nd thro~;ti ~alir~
aa,d Jarria, tba oporatigt a~etta ~ of ~ ~ totiG1~ Si.21y 'Wat tb3s
tissal !a ua~dar . awr 02~arta~, t~ha ~JO~l, aorport oa~p is
ttooooR, !or ona ~ taip, ~1aok ~ to Wis. Tea tatLl+asa~n .Kills
fs nc. Laing Bahrain with ao a:tiaatad,ti.a of arrial.io
~abw~rp of is Bao4abar 19ii9 aAd is wcpaatad to peovMd altar hor
oal7. o! lntawrp to Canstanaa- or Bttmy mat pa~obrb3;/ th. latter.
~ ~inoars]~ri
~sd dispatat~ad ~~/',~/49
Dl,ats~ibnti0a t
Orip i~ 100 - ~idrassN
1 00 - 1~I
1 oa - Catttral, Raoerds
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~. B. stiZl~artdlt
BNr ?dait+~l, Dot
Diraaloar os CwKaral
~lligastos
~laraooae
,Apprc~,~cgd.~For Relea~e~~200~~09/04 : GJA=RDP91-00682RD0030009U149-9'