861.24/438½
Memorandum of Conversation, by the Assistant Chief of the Division of European Affairs (Henderson)
The Soviet Ambassador telephoned me late this afternoon. He said he had just returned from a talk with Colonel Maxwell; that as a result of the conversation, the machine tool situation had been somewhat clarified but, unfortunately, clarified in a negative manner.
The Ambassador stated that Colonel Maxwell had informed him that a number of the machine tools contained in the list of 21, which on December 16 the Under Secretary of State had informed could be released for export, had already been handed over to American manufacturers, were being used in American factories, and could not possibly be dismounted and sent to the Soviet Union. As a result, instead of the $670,000 worth of machine tools which Mr. Welles had promised him, the Soviet Government would receive tools only in the value of $270,000.
The Ambassador said that Colonel Maxwell stated that the error was entirely the Colonel’s own fault. This confession of error on the part of Colonel Maxwell, however, did not relieve the situation so far as the Soviet Union was concerned. It would seem that the machine tools in question had been seized by the Navy without legal authority prior to July 2 and, without any requisitioning or any authority, had been diverted to use in American plants.
The Ambassador said that he has asked Colonel Maxwell regarding the machine tools in List C; that the Colonel had told him that the tools on List C were being given a constant study with the hope that it might be further possible to release more of them to the Soviet Union. The Colonel, however, was unable to give any assurances that any more of them would be released.
The Ambassador also referred to the list of six items which the Under Secretary had given him on December 16 with the statement that they were not needed for national defense and may be released. The Ambassador said that Colonel Maxwell had told him that he could make no definite promise that these machines would be released for export. Colonel Maxwell had said that they “may be released”. Colonel Maxwell could give no absolute assurance that these or any other machines, regardless of whether or not export licenses had been obtained for them, could really be exported.
[Page 434]The Ambassador said that he regretted to say that he felt there had been little improvement in the whole situation with respect to machine tools. The many discussions had yielded few concrete results. He appreciated the fact that the Under Secretary had endeavored to be of assistance and regretted that the joint efforts of the Under Secretary and himself should have been almost in vain. Apparently the American Government had no intention to accept the conditions laid down in the Ambassador’s memorandum of October 7.32
- Not printed.↩