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2.

(iv) It is belioved that if construction of T.L.C's in North America is contemplated, a far more promising field than Canada is U.S.A. where it may be possible to use untapped capacity such as the vast Constructional Engineering Industry. A personal discussion on the subject with the Chief of the Bureau of Ships leads to the conclusion that the project will need tackling on the highest place and the U.S. Authorities convinced of the strategic implications.

(v) The only possibility of finding untapped capacity not otherwise employed on war production lies in the U.S.A. We have just put a fresh

proposal to the U.S.A. suggesting that they should fabricate, send over here and assemble with American labour as a task job. Mr. Harriman seems to think this might be feasible.

The Signal referred to in clause (d) has been despatched. A copy is annexed.

3.

Investigations into the points raised by the Committee at (e) and (f) are not yet complete.

}

Admiralty, S.W.1.

4th December, 1941.

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(Signed)

H.R, MOORT.

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