611.6131/463: Telegram
The Secretary of State to the Ambassador in the Soviet Union (Davies)
108. Your 183, July 22, 10 a.m. References are to your numbered sections.
Your 1. It is utterly impossible for the Department to agree to the Soviet proposals with regard to modifying the exceptions to the exportation clause relating to the exports of arms, etc. While the Soviet proposals might permit the full operation of the present Neutrality Act, this Government could not assume an obligation which might limit the operation of any legislation enacted by Congress in the future with respect to the export of arms, etc. Although it may not be likely that Congress will enact any such legislation within the 12 months of this agreement, nevertheless, the inclusion of the proposed qualifying phrase would constitute a precedent for future agreements. You should emphasize that the policy of this Government in this matter is definitely fixed, as is shown by the fact, already stated in section 1 of the Department’s 104, July 20, 7 a.m., that the exceptions relating to the export of arms, etc. appear without qualification in every Trade Agreement containing an exportation clause.78
Your 2. The Department is prepared to accept the reservation regarding the right of the Soviet Government to decrease the purchase figure in the event of adverse court action on Soviet coal, if, in your opinion, this concession will result in the speedy conclusion of the agreement. The text of the proposed letter would then be acceptable to the Department, but the word “only” which appears in the first paragraph immediately preceding “in the amount of” is superfluous and should be struck out.
Please ascertain if there would be any objection on the part of the Soviet authorities to the wording of the following statement which would be included in the Department’s press release at the time of Proclamation: “the Soviet Government has informed the Government of the United States that the appropriate Soviet economic organizations will increase their intended purchases during the next 12 months from $30,000,000 to $40,000,000 worth of American goods, provided the most-favored-nation provisions of the present agreement are completely operative with respect to Soviet coal.”