-2-
 
The two vessels furnished by the War Department would make the West
Coast of South America trip to the United States.
 
       Assignment of the passenger vessels will have the following
effect:
 
1. The discontinuance of American passenger service to the East Coast
of South America formerly performed by the SSs URUGUAY, BRAZIL and
ARGENTINA. (The ARGENTINA is now in the southwestern Pacific.)
 
2. Complete discontinuance of American passenger service to Venezuela
and to the West Coast of South America. These services were formerly
performed by the SSS SANTA ROSA, SANTA PAULA and SANTA ELENA (all three
are now in military service) and by the SANTA LUCIA and SANTA CLARA,
now required by 'the War Department.
 
      (The only remaining American passenger service to the East Coast
of South America will be four vessels operated from the Gulf by the
Mississippi Shipping Company, each vessel having a capacity of.
approximately 45 passengers.)
 
3. The SANTA PAULA, now included in the new military movement, was
about to perform a military mission to the Red Sea which would have to
be postponed.
 
       The assignment of approximately 16 cargo vessels for the
proposed military movement would have the following effect:
 
1. It would involve the employment of 13 EC-2 vessels scheduled for
delivery on the Pacific Coast during February and March. The remaining
three vessels can undoubtedly be supplied from tom, age already
allocated to the War Department.
 
2. The 13 vessels are suitable for the Russian service, are so
intended, and their assignment for other purposes will further
'jeopardize the fulfillment of this commitment.
 
3. The maintenance of the contemplated movement would require the
furnishing, beginning in April, of approximately four vessels monthly.