611.6131/587: Telegram
The Chargé in the Soviet Union (Thurston) to the Secretary of State
[Received 5:50 p.m.]
849. Your telegram 360, July 10, 6 p.m. I called on Mr. Stepanov this morning and informed him that I had been instructed to say, in response to his communication of July 6, that the Department of State has been giving attention to the question of a possible renewal of the 1937 commercial agreement as extended to the 6th of August 1940 and that in this connection I should be glad to receive an early expression of the views of his Government with respect to the renewal of the agreement in its present form. Mr. Stepanov stated that he would communicate my statement to his superiors and inform me of their reply as quickly as possible.
I then stated that I had been authorized to say that while a further extension of the agreement would be entirely agreeable to my Government, it is recognized that the adoption of certain measures designed to insure our national defense may adversely affect the availability for export of certain types of equipment and commodities heretofore purchased in the United States by the Soviet Government and that under these circumstances it is realized that the Soviet Government may desire to advance certain suggestions. I stated that if so, my Government is prepared to give careful consideration for use in such suggestions. Mr. Stepanov again stated that he would convey this information also to his superiors.
As it was quite apparent that Mr. Stepanov was not empowered to enter into any conversations with me at this time, I did not take up the question of alleged discrimination or of your note of July 1 to Oumansky.54 These questions will of course, come up in later conversations and I will then discuss them along the lines of your instruction.