711.61/757a: Telegram

The Secretary of State to the Ambassador in the Soviet Union (Steinhardt)

630. Department’s 614, October 3, 2 p.m.

1.
The Soviet Ambassador called yesterday1 at his request on Mr. Welles to inform him of the following instructions received from Molotov:
(a)
The Ambassador is authorized to recede from his adamant position in refusing to agree to the retention in the interests of national defense of equipment ordered by Soviet purchasing agencies prior to July 2. He is instructed, however, to obtain assurances that irrevocable export licenses will be issued in the future.
(b)
The Soviet Government has taken note of Mr. Welles’ statement regarding the gold purchasing policy of this Government and desires that a formula be worked out in accordance with this statement for inclusion in an exchange of notes between the two governments.
(c)
The Soviet Government has noted with satisfaction the results obtained in regard to the availability of American tonnage to Soviet commercial organizations.
2.
The Department has been informed by the Financial Adviser to the Chinese Government2 that it has been decided to ship to Hongkong by sea the airplanes mentioned in the Department’s 614, October 3, 2 p.m., and that it would no longer be necessary for the Government of the United States to approach the Soviet Government on this question. If you have not yet done so, it is suggested that you do not raise this issue with Molotov at the present time but that the question be left open since it is possible that endeavors [may?] be made next year to fly additional planes to China via Siberia.
Hull
  1. October 7 is the date intended; no record of conversation found in Department files.
  2. Arthur N. Young.