611.6131/408: Telegram
The Secretary of State to the Chargé in the Soviet Union ( Henderson )
98. Your 161, July 3, 4 p.m.
1. Your numbered paragraph 6. Department has no objection to your writing the following informal letter to either Neymann or Rosenblum:
“Referring to our conversations concerning the tax imposed on coal imported into the United States from the Soviet Union I may say informally and for your strictly confidential information that it is my understanding that the Department of State is considering at the present time the possibility of seeking the removal of at least the discriminatory features of the tax by legislative action at the next session of Congress. It is not possible, of course, to forecast what action Congress may take.”
This letter should be considered as part of the discussions leading up to the agreement and accordingly should not be published under any circumstances until further definite authorization.
2. Your numbered paragraphs 8 and 9, in respect to note B. Department approves text of proposed note B with following changes: (1) the substitution in two places of “next 12 months” for “forthcoming year”; (2) the transposition of the phrase appearing towards the end of the note “in the course of the next 12 months” to follow “America”; and (this is important) (3) the insertion of the adjective “American” before the word “goods.”
Department desires you to endeavor to have the words “at least” inserted before “$30,000,000”. While the insertion of this phrase does not increase the obligation assumed by the Soviet Government, it offers a basis for the American Government pointing out, as suggested by Neymann (your numbered paragraph 7), that Soviet purchases may exceed the amount for which Soviet Government has obligated itself. If the Soviet Government is strongly opposed to agreeing to this proposal you are authorized to drop the matter.
While note B may be dated 2 days later than note A, it is desired that your inquiry be dated several days prior to the date of note A. Your inquiry should follow the phraseology of that of Ambassador Bullitt of July 11, 1935,69 except that reference should be made to recent conversations “in regard to the prolongation of the agreement of July 13, 1935, concerning commercial relations between” et cetera.
3. Your numbered paragraphs 8 and 9, in respect to note A. Department would prefer the following phraseology which is more precise: [Page 340]
“In accordance with the conversations which have taken place I have the honor to confirm on behalf of my Government the agreement which has been reached between the Governments of our respective countries that the agreement regarding commercial relations between the Union of Soviet Socialist Republics and the United States of America recorded in the exchange of notes between the People’s Commissar for Foreign Affairs and the American Ambassador on July 13, 1935, shall continue in force for another year, that is, until July 13, 1937.”
4. Department suggests that the identic notes be dated July 11 and that they be released in Moscow to the press at 5 p.m., that day, Moscow time (10 a.m., Washington time). Department will make available to the press at the same time text of the notes together with an explanatory statement. Department assumes that Soviet Government has no objection to the Department pointing out in this statement that the Soviet Government has given assurances that it intends to purchase during the next 12 months American goods to the value of $30,000,000.
Department will release to the press at 10 a.m., Washington time Monday, July 13, and suggests that you do the same at 5 p.m., that day, Moscow time, texts of your letter of inquiry with regard to Soviet purchases and of reply of the Soviet Government which should be dated July 13.
Please telegraph as soon as possible full text of notes so that Department will be able to make them available to the press.