AS
THIS TELEGRAM MUST BE
CLOSELY PARAPHRASED BE-            LONDON
FORE BEING COMMUNICATED 
TO ANYONE.  (SC)                        DATED DECEMBER 6, 1940
          
                                   REC'D 9:10 A.M., 7TH
 
SECRETARY OF STATE,
     
     WASHINGTON.
     3984, DECEMBER 6, MIDNIGHT.
     STRICLTLY CONFIDENTIAL FOR THE SECRETARY AND THE UNDER
SECRETARY AND FOR TRUITT MARITIME COMMISSION.
     MY 3965, DECEMBER 5TH.
     THE SHIPPING SITUATION IS LESS FAVORABLE THAN IT APPEARS ON THE
SURFACE.
     VESSELS UNDER THE BRITISH FLAG AGGREGATED 17,750,000 TONS BEFORE
THE WAR.  ON OCTUBER 27 THE FIGURE WAS 17,639,000, AN APPARENT NET LOSS
OF ONLY 111,000 GROSS TONS.
     THESE FIGURES DO NOT INDICATE THE TRUE POSITION, HOWEVER. 
NEWTRUAL VESSELS WHICH WORKED FOR BRITIAN IN THE LAST WAR EITHER
ARE NOT AVAILABLE OR ARE INCLUDED IN THE FOREGOING FIGURES. 
MREOVER, 4,200,000 GORSS TONS ARE CURRENTLY UNDER REPAIR.  THIS MEANS
THAT THE WORKING MERCHANT MARINE AT PRESENT CONSISTS OF 11, 739,000
GROSS TONSE.  SOME OF THIS TONNAGE, HOWEVER, MUST WORK IN TRADES
AWAY FROM THE UNITED KINGDOM.  THE TOTAL NOW AVAILABLE TO
 
REFRADED UNCLASSIFIED