The Finnish Attache has also advised the Committee that
a firm of brokers in New York has offered him 37 Pratt & Whitney
twin Wasp engines, 24 Pratt & Whitney Junior Wasp engines, and 22
2-place Bellanca airplanes. From what can be ascertained, this
offer is for new equipment which was originally produced for the
Spanish Nationalists and the brokers are evidently trying to sell
it to the highest bidder.
 
     In this connection, it is desired to point out that the 
Legation of Finland has kept the Committee fully informed on all 
of its activities.
 
               FRANCE
 
     A list of possible sources for gun tubes, small arms, 
small arms ammunition and fuze components was furnished to the 
French Attache. France is also inquiring of the McQuay-Norris 
Manufacturing Company for 1,000,000 20 mm shell and 2,000,000
25 mm shell. The officials of the company have been in to see the 
Committee and have requested certain assistance on specifications 
of corresponding American shell. It seems probable that if this 
company accepts the order it will install screw machines at a 
slight additional cost which will be entirely suitable for the 
production of our own 37 mm shell.
 
     The Bethlehem Steel Company has inquired whether there 
is any objection to acceptance of an educational order for 90 mm 
gun forgings from the French. The Committee has encouraged this 
order since an American 90 mm gun is now under development and the 
creating of facilities at Bethlehem will be to our advantage.
 
     An informal inquiry has been received whether we would 
release the Garand rifle to the French and if so what size order 
would be required. There seems to be no objection to the release 
of this design if an order for at least 50,000 rifles is placed.
 
              The French are buying horses and automotive equipment in 
considerable quantities.
 
              A firm in New Bedford, Massachusetts, which can make gas 
masks, has been approached by the French with a view to an order for 
gas masks with a fully molded rubber facepiece. This is the type of 
facepiece which our own Chemical Warfare Service would like to see 
developed, and encouragement has been given to the commercial firm 
to go ahead with the order if offered to them.
                         -3-