761.6211/280: Telegram
The Ambassador in the Soviet Union (Steinhardt) to the Secretary of State
[Received October 31—11 a.m.]
839. My telegram No. 706, October 9, 1 p.m. I am informed in strict confidence that the German economic delegation here has reached an agreement with the Soviet authorities for the delivery during the next year of slightly less than 1,000,000 tons of petroleum products ranging from high test gasoline to crude oil. In respect of high test gasoline it was stated that satisfactory samples had been presented to the German experts by the Soviet authorities (while it is possible that this high test gasoline may be furnished by Ufa refineries which were recently installed by American engineers it is also possible that the reexport to Germany of high [test] gasoline imported from the United States is contemplated). My informant added that at the end of this week the economic mission headed by Schnurre will return to Berlin for a temporary visit over the Soviet holidays.62
As of interest in connection with the foregoing a member of the Italian Embassy informed me in the strictest confidence that about 2 weeks ago the Italian semigovernmental corporation which under the terms of the Italian-Soviet commercial agreement purchased some 400,000 tons of Soviet mazut63 had been informed by the Soviet trade delegation in Rome that the next delivery of oil would not be made. Under instructions from the Italian Government, the Embassy here took up the question with the People’s Commissariat for Foreign Affairs but as no reply has been received as yet my informant was unable to say whether the statement of the Soviet trade delegation referred to one particular delivery or to all future deliveries. My informant concluded with the observation—as an example of “Soviet efficiency”—that after the Soviet trade delegation had stated that the oil would not be delivered the Italian vessel which had previously left Italy unaware of the new situation arrived in Batum, received the oil without difficulty and departed for Italy.
Repeated to Berlin.