P.S. — "While  as  indicated  above,  I  do  not  tliink  that  price  is  the  main  con-
sideration, in  this  job,  if  the  amount  of  commission  asked  should  for  any
reason  be  the  controlling  element,  I  will  of  course,  pass  along  to  Santiago  any
counter-proposal  you  might  elect  to  put  forward.
Senator  Clark.  I  will  get  back  to  this  Chilean  matter  later.
Now,  referring  to  this  sale  of  submarines  to  Peru,  Mr.  Spear,  you
had  come  difficulty  in  getting  by  the  American  Naval  Mission  on  your
plans  and  specifications,  did  you  not?

Mr.  Spear.  I  do  not  recall  any  great  amount  of  difficulty.  I  think
there  were  some  changes  they  wanted  made,  as  I  remember  it.
Senator  Clark.  Did  not  the  Commission  complain  you  had  re-
duced the  capacity  of  the  boat  without  reducing  the  price?     For


120  MUNITIONS    INDUSTRY

instance,  I  will  refer  you  to  a  letter  from  Commander  Aubry,  dated
March  31,  1024,  which  letter  I  will  ask  be  marked  ''  Kxhibit  No.  09."

(The  letter  referred  to  was  marked  "  Exhibit  No.  69  ",  and  appears
in  the  apjiendix  on  p.  360.)

Senator  Clark.  At  the  bottom  of  the  first  page  of  this  letter,  "  Ex-
hibit No.  69  ",  it  says :

The  reduction  of  the  submarines  speed  to  a  uiininium  of  8%  miles  also  is  a
pore  point  because  Woodward  told  mo  tliat  he  could  not  understand  improving
the  quulities  of  the  boats  by  reducing  the  main  features.
