711.00111 Lic. Consolidated Aircraft Corp./61/1

The Chargé in the Soviet Union ( Henderson ) to the Secretary of State

No. 322

Sir: I have the honor to enclose herewith, for the Department’s information, a memorandum of statements made by Mr. Etienne Dormoy,32 the chief engineer in charge of the group of engineers of the Consolidated Aircraft Corporation who are to work in the Soviet Union under a technical assistance contract between that company and the Soviet Government. Reference is made, in the above connection, [Page 474] to the Embassy’s despatch No. 328 of May 26, 1937,33 regarding the technical assistance contract between the Vultee Aircraft Division of the Aviation Corporation, of Downey, California.

In regard to the efforts now being made by the Soviet Government to further develop its military air forces, Mr. N. M. Kharlamov, the director of Tsagi (Central Aero-Hydrodynamic Institute), informed an officer of the Embassy staff, that he had recently signed four technical assistance contracts in the United States with American aircraft manufacturing concerns. Besides the above-mentioned contracts he also signed contracts with the Douglas Aircraft Company, Incorporated, of Santa Monica, California, and the Glenn L. Martin Company, of Baltimore, Maryland. He stated that engineers from the Consolidated, Vultee, and Douglas companies, would proceed to the Soviet Union to assist in developing these planes, but he made no mention to the effect that the Glenn L. Martin Company would also send engineers to this country. In this connection, it may be of interest to note that since January 1, 1937, the Embassy granted visas to fourteen Soviet engineers and specialists who are proceeding to Baltimore to the Glenn L. Martin factory. This information would appear to be significant in view of the statements made by Mr. Dormoy, in the attached memorandum, relative to the difference between the contract signed by the Soviet authorities with the Consolidated Aircraft Corporation and the Glenn L. Martin Company, in which he points out that he understands that the Martin Company is to design and develop a new type of large plane for the Soviet air force instead of selling somewhat obsolete models which have been released for export by the American military authorities.

It may be of interest to point out that, in the past months, the Soviet press has carried a number of articles praising the advancements made by Soviet aviation and claiming, in many cases, that their planes have surpassed those of other countries in efficiency.

In this connection, there is attached, a summary, in translation, of an article which appeared in the Moscow Pravda No. 45, of February 15, 1937,33 in which the author claims that Soviet aviation can outstrip that of any other country. The most significant parts of the article are given in quotations, in full translation. Despite the fact that Soviet pilots, in Soviet-made planes, have established a number of world records, it would appear that the military authorities, at least, are not satisfied with the development of Soviet aviation and, therefore, have decided to endeavor to modernize their air fleet through technical assistance contracts with companies such as those enumerated above.

Respectfully yours,

Loy W. Henderson
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