611.6131/324: Telegram

The Secretary of State to the Ambassador in the Soviet Union ( Bullitt )

149. Department’s 147, July 10, 1 p.m. The following is the text of the statement which the Department would like you to make to the press, in particular to representatives of the American press, at time of signing or when releasing for publication, notes relative to the generalization of tariff concessions to the Soviet Union:

“In connection with the trade agreements program of the Government of the United States, conversations were entered into with the Soviet Government with a view to ascertaining the attitude of the Soviet Government with regard to the expansion of trade between the United States and the Soviet Union. It is the purpose of the trade agreements program to bring about an extension of foreign markets for products of the United States by affording increased market opportunities for foreign products in the United States. In return for assurance of the Soviet Government that it will be its policy to increase substantially its purchases of American products, the United States is prepared to extend to the Soviet Union tariff concessions granted in trade agreements with other countries. The identic notes signed today make of record and confirm this agreement.

You will note that it is stated in the letter from the People’s Commissar for Foreign Affairs that it is the intention of the Soviet Government to purchase American goods to the value of $30,000,000 within the next 12 months. Inasmuch as the value of the exports from the United States to the Soviet Union has averaged only $12,000,000 during the last 3 calendar years, the purchases contemplated by the Soviet Government will result in a very considerable increase in the exports of American goods to the Soviet Union. I hope that, as a result of the extension to the Soviet Union of tariff concessions made in trade agreements with other countries, there will be also an appreciable increase in Soviet exports to the United States, which have averaged somewhat less than $12,000,000 during the past 3 years. Increased imports of Soviet products into the United States will provide the Soviet Government with greater purchasing power for American products.

The present agreement, in making provision for an increase in the exchange of goods, lays clown, in my opinion, a sound basis for the development of trade between the United States and the Soviet Union, and I am personally very pleased at the considerable increase in American-Soviet trade which is in prospect as a result of the notes exchanged today.”

Department has noted the following minor errors in text of identic note transmitted with your 272, July 8, 8 p.m.: use in two places of “Dear Ambassador” in place of “Mr. Ambassador”; omission of “of” before “Soviet Socialist Republics” in first paragraph; omission of “agreement” following the words “pursuant to any trade” in last part of second paragraph; failure to begin a new paragraph with sentence [Page 211] “This agreement shall come into force,” et cetera; use of “high” in place of “highest” in subscription.

With reference to text of supplementary letter from Litvinoff transmitted with your 243, June 19, 10 p.m., “Mr. Ambassador” should be substituted for “Dear Ambassador” in the salutation and subscription of that letter.

Hull