811.20 Defense (Requisitions)/43
Memorandum of Telephone Conversation, by the Assistant Chief of the Division of European Affairs (Henderson)
Mr. Oumansky talked to me this morning by telephone from New York. He said that the situation with regard to the loading of the Soviet steamship Rodina is much more serious than he had realized during his previous conversation with me on the subject. For five days the Rodina has not been able to continue loading as a result of the obstructionist tactics of the customs officials. These officials are asking numberless questions, many of which do not appear to have any direct relation to the question whether or not it is legal to export the machinery destined for the Rodina. They are asking questions relating not only to the machinery but also to the activities of Amtorg. When certain questions are answered, new ones are raised. The officials, furthermore, continue to maintain that they are acting under orders of the Department of State and not under the Departments of Treasury or Navy in pursuing their queries. In the meantime, the financial loss to Amtorg and to the Soviet Government is terrific. Queries made by officials of Amtorg of the customs officials as to the law or regulations upon which they are basing their actions have not been answered. It appears, therefore, that Amtorg is suffering losses as a result of actions of the customs authorities which are not authorized by law.
Mr. Lukashev, the President of Amtorg, has asked Mr. Oumansky the following question:
“I have received instructions from my clients in the Soviet Union to place millions of dollars worth of orders for machine tools and other machinery. I have no certitude that even if these orders are accepted they will be executed. I have no guarantee that even if the orders are executed the machinery will not be requisitioned. What shall I do? Shall I inform my clients in the Soviet Union that I have suspended the placing of orders or shall I seek to place orders, only to learn later that the machinery will not be delivered?”.
The Ambassador stated that he was unable to answer Mr. Lukashev’s question, and he asked me what kind of a reply I would suggest.
I told the Ambassador that I was not in a position to give any advice on the matter. I said that in our previous conversation I had told him that the situation should be somewhat clarified in a short time. It might be easier then for Amtorg to decide for itself the policy which it should pursue. The Ambassador said he wished that the Department would present Mr. Lukashev’s question to the Navy Department or to those officials who were responsible for the present [Page 310] situation. He added that he could not stress too strongly the fact that conditions at present were such that it was physically impossible for the Soviet Union to engage in commercial transactions with the United States. The outcome of this matter was certain to have a profound effect upon Soviet-American trade, not only in the present but in the future.
I told Mr. Oumansky that I would convey the statements which he had made to me to the appropriate American authorities.