811.20 Defense (Requisitions)/33
The Secretary of State to the Ambassador of the Soviet Union (Umansky)
Excellency: I have the honor to acknowledge your note of June 12, 1940 in which you state that the Government of the United States of America has adopted certain measures which are discriminatory against the Union of Soviet Socialist Republics and incompatible with the principle of unconditional and unrestricted most-favored-nation treatment embodied in the agreement of August 4, 1937, between the two countries, as extended.
After examining the contents of your note and after giving full consideration to oral statements recently made by you to various members of the Department, as well as to the statements made during your call upon me on June 12, I have to inform you that my Government is of the opinion that it has taken no measures and has pursued no policies incompatible with any of its agreements with the Union of Soviet Socialist Republics. In this connection, attention is called to the fact that the seventh paragraph of section one of the agreement of August 4, 1937 permits the Government of the United States to take “such measures as the Government of the United States of America may see fit with respect to the control of the export or sale for export of arms, ammunition, or implements of war, and, in exceptional cases, all other military supplies”.
In view of the present world situation, for which this Government is in no way responsible, my Government has been compelled to take certain measures for the purpose of ensuring the national defense of the United States. In connection with these measures, my Government has found it necessary to adopt a policy which calls for acquiring certain machinery manufactured in this country under order of foreign firms and governmental commercial organizations. This policy, as has been explained to you on a number of occasions, is not directed against the Soviet Union or any other country and is being applied without any intention of discrimination against the Soviet Union. It is being carried out solely for the purpose of providing essential materials and equipment necessary for our national security. I can assure you that my Government is endeavoring to administer this policy in such a manner as to minimize, so far as the interests of our national defense will permit, inconveniences to Soviet commercial and industrial organizations. My Government sincerely regrets the inconveniences which have already been experienced and hopes that the effects upon those organizations of this policy, following the perfection of the procedure for executing it, will be less severely felt. It is prepared to cooperate with the Soviet Government in an endeavor [Page 324] to maintain between the United States and the Soviet Union commercial relations of as normal a nature as is possible in the present international situation.
With regard to your statement relative to compensation for losses resulting from the policies of this Government, it is suggested that you inform your Government that arrangements are being made for compensating the owners of the property being requisitioned.
Accept [etc.]