661.6231/286: Telegram
The Ambassador in the Soviet Union (Steinhardt) to the Secretary of State
[Received 8:17 p.m.]
1590. I was informed by Schnurre yesterday that the trade negotiations which he is conducting are proceeding in general to his satisfaction. He stated that Soviet deliveries under the February 1940 agreement have been “astonishingly good” and that he feels that German deliveries to the Soviet Union about which, as reported, complaint has been made by the Soviets, will begin by February of next year to come up to the desired level. His explanation of the German failure to deliver on schedule thus far, in contrast to the Soviet performance, is that the Soviets are delivering raw materials while the Germans are required to deliver manufactured products. It has therefore taken some time to get the German deliveries under way. He emphasized that Germany is not endeavoring to buy from the Soviet Union everything which that country can furnish but is limiting its purchases to articles which are really essential to Germany. In the case of oil, for example, he stated that the stocks which Germany had acquired through the occupation of France and other countries made its needs less so far as the Soviet Union is concerned. As regards fodder, on the other hand, this is an item of particular interest at the present time. He stated that he expected to be in Moscow for several weeks to continue the present talks.