Foreign Relations of the United States Diplomatic Papers, 1940, The British Commonwealth, The Soviet Union, The Near East and Africa, Volume III

881.24/4344/6

Memorandum of Telephone Conversation, by the Assistant Chief of the Division of European Affairs (Henderson)

[Washington,] December 26, 1940.

The Soviet Ambassador called me this afternoon in order to make further representations regarding the requisitioning by the American Government of machine tools which had been ordered by Soviet purchasing agencies from the Gear Grinding Machine Company of Detroit, Michigan. The Ambassador said that he had discussed the matter with Colonel Maxwell and regretted to report that eight of the ten machines were to be requisitioned. He said that although the total value of these machines amounted to only $64,349, nevertheless, they were very important to Soviet economy. They were needed by the Soviet automobile plant in Gorki. Soviet engineers had spent much time in designing and inspecting these machines and the loss to the Soviet Government was much greater than their value.³³

The Ambassador said he hoped that steps would be taken to revoke the requisition orders which had already been issued for them. He added that the Customs office in New York had informed him that Mr. Schnee had instructed them by telephone to detain the machines if they had not already been placed on board the ship, and said that if they were already loaded, they were to be permitted to proceed. The Ambassador also referred again to the welding machine, the license for which had been revoked, and said that he hoped that steps would be taken to permit it to go forward.

The Ambassador stated that he had had another conversation with Colonel Maxwell which was not at all satisfactory. Colonel Maxwell could not guarantee that any machines would go forward, including those on the lists given to Mr. Oumansky by Mr. Welles. The Colonel had stated that the presentation of lists of this kind to the Embassy merely signified that the appropriate officials of the American Government were willing to reconsider the question of the export of the machines on the list.

Colonel Maxwell also had as yet no good news for the Ambassador with respect to List C. Thus far, the Colonel maintained the position that it had been found impossible to grant export licenses for additional machines on this List.

33. Mr. Henderson wrote at the beginning of this memorandum: “Note. The Soviet Ambassador called Mr. Henderson by telephone on December 30 in order to state that he had been advised by his Government that the gear grinding machines were urgently needed in the Soviet Union and to press for their release. L. W. H.”