Senator  Bone.  Had  a  great  deal  of  sentiment  for  naval  defense
been  generated  there  in  the  meantime  ?

Mr.  Carse.  It  had  been  going  for  submarines  and  this  fund  had
accumulated  in  that  way.  They  were  going  to  use  it  at  one  time —
and  I  think  it  was  shown  here — for  the  buj'ing  of  some  submarine
boats  from  Italy.
Senator  Pope.  Was  this  United  States  naval  mission  down  there
at  that  time  ?

Mr.  Carse.  When  did  they  go  ?  They  were  there  when  we  got  the
order.
Senator  Clark.  They  went  there  in  1920  or  1921,  did  they  not,
Mr.  Carse?

Mr.  SuTPHEN.  About  that  time.
Mr.  Carse.  Sometime  around  that  time,  because  they  passed  upon
all  the  details  of  our  contract  specifications  and  so  forth.  Is  not
that  so?

Mr.  Spear.  Yes,  sir.
Senator  Pope.  You  were  in  very  close  touch  with  them  all  the
time?

Mr.  Carse.  We  were  not.
Senator  Pope.  Your  agents?

Mr.  Spear.  They  were  responsible  to  the  Government  to  see  that
they  got  proper  material,  and  they  were  the  people  to  scrutinize
the  specifications  and  the  contract  and  to  take  care  of  it  for  the
Peruvian  Government.
Mr.  Carse.  The  Peruvian  Government  did  not  give  the  contract
until  after  the  American  mission  had  approved  the  plans  and  speci-
fications.
Senator  Clark.  The  first  paj^ment  was  $461,254.15,  was  it  not?

Mr.  Carse.  I  think  so.
108  MUNITIONS    INDUSTEY

Senator  Clark.  I  offer  in  evidence  as  "  Exhibit  No.  64  "  on  that
point  a  letter  signed  by  Mr.  Spear,  addressed  to  the  Minister  of
Marine  at  Lima,  Peru.
