hart in June. Following the disastrous end of the flight the battleship Colorado, aircraft carrier Lexington, and a division of destroyers searched for the lost flyers. Aircraft of the Colorado and Lexington participated in the search.

The U. S. S. Marblehead escorted the transport Chaumont from the west coast to Shanghai and will remain in Asiatic waters as long as her services are found necessary.

The supply ship Bridge made a special trip from San Francisco to Shanghai with supplies for the United States Asiatic Fleet.

The airplane carrier Ranger, with the U. S. S. Hall and U. S. S. Worden, participated in the Inter-American Technical Aviation Conference at Callao, Peru.

That is all the employment at variance with the 1937 program.

PROPOSED EMPLOYMENT OF VESSELS DURING FISCAL YEAR 1939

FLEETS AND SQUADRONS

The United States Fleet will be employed in conducting its yearly intensive training, including a fleet problem, from its west coast bases. I do not know where the problem is going to be. It might be in the Atlantic and it might be in the Pacific, but it will start from the west coast bases.

The Asiatic Fleet will operate in general as in previous years, carrying out their gunnery and tactical training as opportunity permits. The employment of vessels on the Asiatic station is dictated by special conditions and circumstances as they arise, making it impracticable to predict exactly where their services will be required for the protection of American nationals.

Mг. THOM. Can the large boats go up the Yangtze River to Nanking?

Admiral LEAHY. They could if the river were not blocked, but the Chinese have a barrier across the Yangtze River below Nanking, and at the present time ships can neither go up nor down.

Mr. THOM. But ordinarily the largest vessel can go up to Nanking; is that right?

Admiral LEAHY. Not the largest vessel, but light cruisers go there. Mr. CASEY. In that connection, how about the Panama Canal? Is it sufficient in size to take care of anything in the future?

Admiral LEAHY. The Panama Canal will take care of anything that we now have or anything that is in contemplation.

The Special Service Squadron will base on the Canal Zone and conduct normal operations in its assigned area unless a situation should develop that will require it to shift its base.

The training detachment will be employed in the annual summer cruise for the midshipmen from the Naval Academy in conducting fleet landing exercises, in training cruises, and in local drilling of the Naval Reserves.

DETACHED SERVICE

The vessels on detached service will continue to operate as in previous years.

EFFECT UPON FUEL REQUIREMENTS CONTRASTED WITH PRESENT FISCAL YEAR AS PLANNED ORIGINALLY AND MODIFIED

Fiscal year 1938

(a) Estimated fuel-oil requirements for fiscal year 1938_---barrels__ 8, 898, 107 (b) Total sum originally asked of Congress under the appropriation, “Fuel and transportation, 1938," based on a cost price of $0.8491 per barrel_

$7,555, 315 (e) The appropriation bill as passed by Congress for the fiscal year 1938 provided for---. ----barrels__ 8,000,000 (d) Total sum appropriated with which to purchase the 8,000,000 barrels allowed for the fiscal year 1938, and based on a unit price of $0.844 per barrel--‒‒‒

Fiscal year 1939

$6, 752, 391

(a) Estimated fuel-oil requirements for fiscal year 1939_---barrels 8,237, 420 (b) Total sum required under the appropriation, “Fuel and transportation, 1939," based on a unit price of $0.9746‒‒‒‒‒‒

$8, 028, 190 Mr. UMSTEAD. Admiral, I have some questions to ask about that matter, but I suppose you prefer that they be submitted to the chief of the Bureau, who will justify those estimates.

Admiral LEAHY. I would prefer that. I can say that due to economies instituted in the fleet, it is estimated that the fuel consumption for the fiscal year 1938 will be under the 8,000,000 barrels. The price of fuel oil, however, since the estimate was made has increased from the original estimate of $0.844 per barrel. The average contract price for the first quarter was $0.971 per barrel, and for the third quarter it is estimated will be $1.0015 per barrel. The average cost for the year will be approximately $1 a barrel. The Bureau of Supplies and Accounts will tell you that there will probably be a deficit for the year 1938.

Mr. UMSTEAD. Did you have any difficulty before the end of the fiscal year 1937 with the fuel appropriation for that year?

Admiral KIMMEL. We did have some difficulties, and they put in the most stringent economies and stopped all but essential steaming during the latter part of the year, and we think we got through without creating a deficit.

NAVAL

ACTIVITIES ABROAD, INCLUDING
WORK, SINCE LAST HEARINGS

RELIEF

Admiral LEAHY. I have a large list of naval activities abroad, including relief work, since the last hearings.

Mr. UMSTEAD. I have examined it and my thought is to omit from the record all but the portion relating to Spain and the Fart East.

SPAIN

A special squadron, composed of the U. S. S. Raleigh, Hatfield, and Kine, maintained in southwestern European waters, evacuted over 200 United States nationals from Spain.

FAR EAST

CHINA

At the outbreak of the present Sino-Japanese conflict, U. S. Naval forces were distributed for the protection of American nationals as follows:

Shanghai: U. S. S. Augusta (flagship commander in chief, Asiatic Fleet); U. S. S. Peary; U. S. S. Sacramento; Fourth Regiment United States Marines.

Peiping: American Embassy guard.

Yangtze River: U. S. S. Luzon, Guam, Monocacy, Oahu, Panay. Tutuila.

Chefoo: U. S. S. Black Hawk, Paul Jones, Parrott, Edsall, Alden, Barker, J. D. Edwards, Whipple, Pillsbury, Pope, Bittern, Heron. Canton: U. S. S. Mindanao.

Pagoda Anchorage: U. S. S. Tulsa.
Peitaiho: U. S. S. J. D. Ford.

Swatow: U. S. S. Asheville.

Tsingtao: U. S. S. Canopus. Bulmer, Isabel, Pigeon, Stewart. En route Tsingtao: U. S. S. Pecos.

As conditions became serious, the United States forces at Shanghai were augmented by the U. S. S. Edsall, Stewart, Bulmer, and Parrott, which acted as escorts to United States merchant ships evacuating refugees; while the U. S. S. Sacramento landed guards for the Shanghai power plant. Omission of Shanghai as port of call by United States merchant ships later necessitated employment of the U. S. S. Sacramento, Canopus, Pecos, and Gold Star to evacuate United States nationals; assisted by the U. S. S. Chaumont after that vessel had disembarked, on 19 September, reinforcements consisting of 80 officers and 1,244 enlisted marines from the 6th Marines of the Fleet Marine Force.

The U. S. S. Marblehead escorted the U. S. S. Chaumont from the west coast to Shanghai and will remain in Asiatic waters to augment forces there as long as her services are found necessary. Due to a shortage of supplies in Shanghai, the supply ship, U. S. S. Bridge. made a special trip from the west coast to Shanghai with much needed supplies for the United States Asiatic Fleet.

The U. S. S. Chaumont evacuated United States nationals from Tsingtao and Chefoo, landing them at Yokohama.

As hostilities continued, the U. S. S. Mindanao, Tulsa, and Asheville were made available to evacuate United States nationals from south China ports.

JAPAN

The U. S. S. Gold Star, Chaumont, Henderson, Edsall, Parrott, Stewart, and Bulmer touched at Japanese ports for United States mail or to transfer United States nationals.

UNION OF SOVIET SOCIALIST REPUBLICS

The commander in chief, Asiatic Fleet, in the U. S. S. Augusta, with the U. S. S. Alden, Whipple, Barker, and Paul Jones, visited Vladivostok in July.

TREATY ARRANGEMENTS INITIATED OR CONCLUDED SINCE PREVIOUS HEARINGS

The London Naval Treaty of 1936, effective between the United States, Great Britain, and France on July 29, 1937, will remain in force until December 31, 1942. The essential building limitations of the treaty follow:

The treaty specifies that the maximum gun caliber for capital ships shall be 14 inches; provided, however that if any of the parties to the Washington Treaty of 1922 failed to enter into an agreement to conform to this limitation by Apr. 1, 1937, the maximum caliber should beco e 16 inches. Failure of Japan to agree to the 14-inch limit, therefore, makes the maximum calber allowed for capital ships 16 inches.

Notwithstanding the limitations given, if the requirements of the national security of any of the high contracting parties are in their opinion materially affected by the actual or authorized amount of construction by any power of light surface vessels of subcategory (b) or of light surface vessels not conforming to the re trictions outlined above, such high contracting party shall, upon notifying the other high contracting Parties of his intentions and the reasons therefor, have the right to lay down or acquire light surface vessels of subcategories (a) and (b) of any standard displacement up to 10,000 tons Each of the other high Contracting parties shall thereupon be entitled to exercise the same right."

Cruisers, both subcategories (a) and (b), destroyer leaders, and destroyers are classed by the treaty as light urface vessels.

No further construction during the period of the treaty.

Part III of the treaty, entitled "Advance Notification and Exchange of Information," is the most important remaining feature. In accordance with its provisions, signatory powers communicate to each other within the first 4 months of each calendar year their program of construction for that year of all vessels in the various categories of capital ships, aircraft carriers, light surface vessels, and submarines, stating the number of vessels in each such category and for each vessel the caliber of the largest gun. Not less than 4 months before the laying of a keel signatory powers agree to communicate the following particulars in respect of each such Vessel: Name or designation; category and subcategory; standard displacement, in tons and metric tons; length at water line at standard displacement; extreme beam at or below water line at standard displacement; mean draft at standard displacement; designed horsepower: designed speed; type of machinery; type of fuel; number and caliber of all guns of 3 inches caliber and above; approximate number of guns of less than 3 inches caliber; number of torpedo tubes; whether designed to lay mines; approximate number of aircraft for which provision is to be made. It is also specified that as Soon as possible after the laying down of the keel of each such vessel, the date on which it was laid shall be notified and that within 1 month of completion of each such vessel, the date of completion shall be notified, together with all the particulars once again mentioned above. Annually, during January, any changes in the program of construction made during the previous year, or changes in the details of vessels, shall be notified. Signatories agree to keep This information confidential until published by the signatory power supplying it.

36929-38

Italyo-German-Japanese anti-comintern pact: Effective between Germany and Japan on November 25, 1936, and with Italy on October 6, 1937.

Principal provisions: The three Governments consider that international communism endangers the civilized world, and agree that close collaboration in maintaining peace and order are essential to defense against this danger.

Procès-verbal relation to the rules of submarine warfare set forth in part IV of the treaty of April 22, 1930: Signed in London on November 6, 1936. Because of the expiration of the London Naval Treaty of 1930 on December 31, 1936, the signatories to the treaty issued the procès-verbal relating to submarines to call attention to the fact that part IV of the 1930 treaty restricting submarine warfare remained, as specified in the expiring treaty, in force without limit of time, and to invite other powers to adhere. The procès-verbal was signed by representatives of the United States, Great Britain, France, Italy, and Japan. Subsequently the following countries have adhered: Guatemala, Afghanistan, Peru, Switzerland, Estonia, Poland, Brazil, Turkey, and Egypt. The procès-verbal reaffirmed two rules relating to submarines: (1) In their action with regard to merchant ships, submarines must conform to the rules of the international law to which surface vessels are subject; (2) in particular, except in the case of persistent refusal to stop on being duly summoned, or of active resistance to visit or search, a warship, whether surface vessel or submarine, may not sink or render incapable of navigation a merchant vessel without first having placed passengers, crew, and ship's papers in a place of safety, etc.

Anglo-German naval agreement: The position of the new German Navy relative to that of the British Navy has been finally set down in five diplomatic documents:

The Anglo-German naval agreement of June 1935: The Anglo-German naval agreement of June 1935 limited German naval strength to 35 percent the British strength by total tonnages in the various warship categories. Sliding scales between light cruisers and destroyers, and submarines and the other categories, were permitted, provided that increases in any one category were at the expense of another and the total tonnage never exceeded. However, no qualitative limits were placed on German naval construction.

The bilateral Anglo-German Naval Treaty of July 1937: In the bilateral Anglo-German Naval Treaty of July 1937, effective November 4, 1937, Germany accepted the definitions, individual tonnage, and gun-caliber limitations, obligation to exchange information, and the other provisions of the 1936 London Naval Treaty.

Protocol of signatures of the bilateral Anglo-German Naval Treaty of July 1937: The protocol of signatures of the bilateral Anglo-German Naval Treaty of July 1937 regulated exchange of information pending ratification and going into effect of this treaty.

An exchange of notes regarding German rights in the construction of type A cruisers: In the exchange of notes Great Britain recognized the German right to build or acquire five A-class cruisers. Germany, on her part, remained content with the three A-class cruisers now building, and will only construct the fourth and fifth units if "special circumstances force her to." The rate of construction of Russia's program of seven 8.000-ton cruisers to mount 7.1-inch guns is understood to be the "special circumstances" which will affect the building of the fourth and fifth units of Germany.