The Chargé in the Soviet Union (Grummon) to the Secretary of State
[Received August 4—9:15 a.m.]
427. Department’s telegram No. 113, August 3, 7 p.m. During the meeting on July 31, Mikoyan made it clear that the Soviet Government is not interested even in exploring the possibility of negotiating an agreement under the Trade Agreements Act. He made it plain in [Page 835]this connection that he had apparently interpreted as a request the statement made to Potemkin on July 3 under authority of the Department’s telegram No. 73, June 27, to the effect that an upward adjustment of guaranteed Soviet purchases would be warranted by the increased benefits which had accrued to Soviet exports as a result of trade agreements concluded during the past year and that consequently the Soviet Government demand for a reduction of duties and the purchase of manganese had been put forth as counterproposals.