EXHIBIT No. 33

Economic Cooperation Administration payments for freight on United Tanker Corporation tankers

DEAR GENERAL FLEMING: The Department of Defense is concerned that two U. S. flag vessels, the S. S. Kettleman Hills and the S. S. Christopher, have been chartered to transport gasoline and other petroleum products from Constanzia, Rumania, to Dairen, China.

Permitting U. S. flag vessels to transport high war potential goods to and from Communist-controlled ports presents a definite threat to the national security of the United States. Under existing export control regulations it is doubtful that shipments of petroleum products would be permitted to Communist China from this country. This Department would certainly oppose any such transactions. We have consistently opposed the export of highly strategic items to Communist China as well as to other areas of Soviet control or influence. Tankers are subject to rigid export control. Therefore it might be inconsistent if the U. S. while strictly controlling the sale of tankers should permit the uncontrolled chartering of such vessels to Soviet controlled organizations to transport highly strategic materials.

In view of the above it appears imperative that action be taken immediately to prohibit the chartering of U. S.-flag vessels to haul strategic items which we ourselves would not export to areas of Soviet control or influence. It is understood that the Maritime Commission is considering the revision of its General Order 49 to require the specific approval of the Commission in all cases involving the chartering of American-flag vessels to aliens. If such an amendment will facilitate control of this trade, I strongly endorse such action by the Maritime Commission.

Should you desire the assistance of the Department of Defense in reviewing requests for chartering of American-flag vessels to aliens, I would be pleased to designate representatives of the staff of the Munitions Board to cooperate with the Maritime Commission staff in this regard.

Sincerely yours,

/s/ LOUIS JOHNSON.

EXHIBIT NO. 36

Admiral E. L. COCHRANE,

MARCH 3, 1952.

Maritime Administrator, Room 4842, Commerce Building, 14th and Constitution Avenue, Washington, D. C. DEAR ADMIRAL COCHRANE: At my direction Mr. Irwin of my office this morning called your office and, I am informed, talked with Mrs. Van.

As you know, testimony already adduced at the hearings before the Subcommittee of the Senate Expenditures Committee, of which I am a member, has established that two of the surplus tankers included in the eight tankers acquired by the Casey group had been used to transport petroleum products between Communist-dominated countries.

As Mr. Irwin advised Mrs. Van, I would appreciate receiving by noon tomorrow, March 4, a letter detailing all pertinent data in your possession as to what other tankers, disposed of by the Maritime Commission as surplus, have been used to transport petroleum products directly by, or for the benefit of, Communistdominated countries.

I understand that in the telephone conversation referred to, Mrs. Van stated to Mr. Irwin that such information had already been compiled, and I therefore assume that no trouble or inconvenience will be experienced in furnishing me this data in the time requested.

In closing, may I state that upon receipt of the information, I expect to have it made a part of the record of the subcommittee's proceedings.

Sincerely,

U. S. DEPARTMENT OF COMMERCE

MARITIME ADMINISTRATION
WASHINGTON 25, D. C.

RICHARD NIXON.

Hon. RICHARD NIXON,

United States Senate,

Washington 25, D. C.

DEAR SENATOR NIXON: Receipt is acknowledged of your letter of March 3, 1952 wherein you call attention to the two war built tankers sold by the former Maritime Commission, which transported petroleum products on several voyages from June 1949 to June 1950 between Communist dominated ports. As you no doubt are aware, these ships were under charters for less than a year's duration, and under the provisions of General Order 59 of the Maritime Commission then in effect, did not require specific approval.

You requested information with respect to other tankers disposed of by the former Commission which may have engaged in like trade. The staff of the Maritime Administration has checked with the Department of State and with the Office of Naval Operations and so far as we have been able to learn, no other American flag tankers have engaged in trade with Communist dominated countries.

During the period January 1948 to February 1949, all charters of American flag tankers to noncitizens required the specific approval of the Maritime Commission. The Commission by General Order 59 gave blanket approval for the charter of American flag tankers of less than one year during the period December 1945 until October 12, 1950, except during the period above indicated. The records of the former Commission do not disclose that any specific approvals were given for voyages in excess of a year for transportation of petroleum products to Communist ports, nor has it been called to our attention that American flag tankers with charters of less than a year traded with the Iron Curtain countries except the two of which you have knowledge.

Since October 12, 1950, General Order 59 has provided that all charters of American flag ships to noncitizens for the carriage of cargoes to the fourteen

identified Iron Curtain countries must receive specific approval. No approvals have been sought under this Order.

A large number of tankers were sold by the former Maritime Commission under the provision of the Merchant Ship Sales Act of 1946 for foreign ownership and registry. The foreign owners of these vessels are not required to make reports to this Administration or to its predecessor organization, and information as to their trading practices is very fragmentary.

To determine whether any tankers sold for foreign operation have engaged in trade with Communist dominated ports would require an exhaustive study of the itinerary of over 200 tankers.

If there is any further information that you desire, I will be glad to cooperate. Sincerely yours,

E. L. COCHRANE, Maritime Administrator.

EXHIBIT No. 37

Statement of fees billed by Lovejoy, Morris, Wasson & Huppuch (formerly Post, Morris & Lovejoy)

United Tanker Corporation and Subsidiaries:

In addition, bills were rendered to Meacham Corporation in the amount of $5,000 for 1949 and $3,000 for 1950.

Bills rendered to China Trading, which have included services in connection with tanker charter arrangements, have been as follows: 1947, $2,000; 1948, $1,000.

In addition, bills were rendered to China Trading in the amount of $250.00 for 1949 and $2,500 for 1950 and the first six months of 1951, which did not relate to tankers.

No charges have been made to The China International Foundation, Inc., for legal services.

While no bills have been rendered for 1951 to the above companies, it is estimated that total fees from Meacham Corporation, United Tanker Corporation and its subsidiaries may aggregate from $50,000 to $60,000.

EXHIBIT NO. 38

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA, NORFOLK DIVISION

Libel of Information for Forfeiture-Admiralty No. 7477

United States of America, Libellant, v. Tanker “MEACHAM" and her tackle, furniture, equipment, etc., in rem.

To the Honorable Judge of Said District Court:

The libel of information of the United States of America by its proctor, A. Carter Whitehead, the United States Attorney for the Eastern District of Virginia, in a cause of forfeiture, civil and maritime, for breach of the provisions of section 2 and section 9 of the Shipping Act of 1916, as amended (46 U. S. C. 802, 808), and for violation of the provisions of Revised Statutes 4139,

4142, 4143, 4163, 4172, 4173, and 4189 (46 U. S. C. A. 19, 20, 21, 33, 41, 42, 60), upon information and belief alleges:

I

That at all times hereinafter mentioned libellant was and is a sovereign power.

II

The steam tanker MEACHAM, Official No. 245009, of 10,048 gross and 6,301 net tons, is a large and valuable tanker, Type T2, which was built by Kaiser Shipyards in 1944 at Portland, Oregon, for the Maritime Commission and was duly registered on January 23, 1944, as a merchant vessel of the United States.

III

The said T2 tanker MEACHAM was a war-built vessel offered for sale by the Maritime Commission under the provisions of the Ship Sales Act of March 8, 1946 (60 Stat. 41, 50 U. S. C. Appx. 1735–1746). Said Act, among other provisions, gave a preference to citizens of the United States and Section 3 (g) of the Act (50 U.S.C. Appx. 1736) duly defines a citizen as follows:

"Citizen of the United States' includes a corporation, partnership, or association only if it is a citizen of the United States within the meaning of Section 2 of the Shipping Act of 1916, as amended (sections 802 and 803 of Title 46.)

*

Paragraphs (b) and (c) of said section 2 provide:

"(b) The controlling interest in a corporation shall not be deemed to be owned by citizens of the United States (2) if the title to a majority, of the stock thereof is not vested in such citizens free from any trust of fiduciary obligation in favor of any person not a citizen of the United States; or (b) if the majority of the voting power in such corporation is not vested in citizens of the United States; or (c) if through any contract or understanding it is so arranged that the majority of the voting power may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States; or, (d) if by any other means whatsoever control of the corporation is conferred upon or permitted to be exercised by any person who is not a citizen of the United States.

"(c) Seventy-five per centum of the interest in a corporation shall not be deemed to be owned by citizens of the United States (a) if the title to 75 per centum of its stock is not vested in such citizens free from any trust or fiduciary obligation in favor of any person not a citizen of the United States; or (b) if 75 per centum of the voting power in such corporation is not vested in citizens of the United States; or (c) if, through any contract or understanding, it is so arranged that more than 25 per centum of the voting power in such corporation may be exercised, directly or indirectly, in behalf of any person who is not a citizen of the United States; or (d) if by any other means whatsoever control of any interest in the corporation in excess of 25 per centum is conferred upon or permitted to be exercised by any person who is not a citizen of the United States."

IV

The said SS MEACHAM is now lying on navigable waters of the United States within this District, and within the admiralty and maritime jurisdiction of the United States and of this Honorable Court.

V

Certain alien Chinese interest, including the Chinese Petroleum Corporation and the China Trading and Industrial Development Corporation and their officers, directors and stockholders, sought to obtain tankers from the United States Maritime Commission either upon their application or the application by the United Tanker Corporation, a Delaware corporation organized by and for the benefit of the Chinese interests for the purpose of obtaining such tankers. These applications were not approved by the United States Maritime

Commission. The alien Chinese interests therefore sought to control companies which had obtained or could obtain tankers from the Maritime Commission.

· VI

On or about August 27, 1947, American Overseas Tanker Corporation, a Delaware corporation, made its first application to the Maritime Commission for the purchase of tankers, filing among other papers its affidavit, signed by the President, stating:

"4. That all of the officers and directors of the Bidder are citizens of the United States.

"5. That title to 100 percent of the stock of the Bidder is vested in citizens of the United States free from any fiduciary obligation in favor of any person not a citizen of the United States; that 100 per cent of the voting power in the Bidder is vested in citizens of the United States; that there is no contract, understanding, or arrangement that more than no per cent of the voting power of the Bidder may be exercised, directly or indirectly, on behalf of any person who is not a citizen of the United States, and that the control of the Bidder is not conferred upon nor permitted to be exercised by any person who is not a citizen of the United States by any means whatsoever."

On September 17, 1947 the Corporation amended their application, stating that

41* * * it is proposed that title to the tankers be in the applicant, a citizen corporation, all of the stock of which is owned by citizens of the United States, and all of the directors and officers of which are citizens of the United States."

Later, on November 13, 1947, the Corporation filed an Amendment No. 2 to its application in which they listed the stockholders and the shares of stock assigned to each one of them. On December 30, 1947, the Maritime Commission approved the sale of three T2 tankers namely, the MEACHAM, the KETTLEMAN HILLS, and the ANTELOPE HILLS. Under date of January 22, 1948, the Corporation filed Amendment No. 4 to its application in which they recited the sale of the three tankers and requested that title be taken in the name of National Tankers Corporation, organized under the laws of the State of Delaware, the application stating among others-

664 * The National Tanker Corporation has the identical officers, directors, and stockholders of the American Overseas Tanker Corporation,

"The vessels will be registered under the American flag, and the purchase price will be paid in cash".

The National Tankers Corporation was not incorporated until January 23, 1948.

VII

The said alien Chinese interests had agreed to finance for about $1,500,000 each the purchase of these three tankers, including the MEACHAM, by National Tankers Corporation for their use under a plan whereby United Tanker Corporation, a corporation also organized under the State of Delaware, in which corporation the Chinese interests owned all but a nominal amount, obtained an irrevocable option to purchase all of the stock of National Tankers Corporation at any time between September 15, 1948 and October 15, 1948 at an agreed price. The agreement between the alien Chinese interest and National Tankers was reached some time before January 24, 1948.

VIII

The agreement was carried out and on or about May 14, 1948 National Tanker Corporation duly and legally registered the MEACHAM with the Bureau of Customs, Treasury Department, on an affidavit prepared by the Secretary of the National Tankers Corporation, who swore as follows:

that the President and Managing Directors of said corporation are citizens of the United States; that 75 percentum of the interest of said corporation is owned by citizens of the United States; that the title to 75 percentum of the stock of said corporation is vested in citizens of the United States, free from any trust or fiduciary obligation in favor of any person not a citizen of the United