Office of the Historian

861.24/4345/6

Memorandum by the Assistant Chief of the Division of European Affairs (Henderson) to the Under Secretary of State (Welles)35

[Washington,] December 30, 1940.

Mr. Welles: You will observe from the two attached memoranda of conversations between the Soviet Ambassador and Mr. Henderson of December 23 and December 26, respectively,36 that the Ambassador is asking:

1.
that steps be taken to revoke requisitions which have been issued for a number of machine tools which the Soviet Government has purchased from the Gear Grinding Company of Detroit, Michigan;
2.
that a new export license be issued to replace a revoked license covering the export of a welding machine valued at $200,000 manufactured for the Soviet Government by the Federal Machine and Welding Company of Warren, Ohio.

[Page 441]

The matter of the machines mentioned above has been taken up informally with Colonel Maxwell who insists that these machines are necessary for the national defense. In view of Colonel Maxwell’s statement, it is suggested, subject to your approval, that we inform the Soviet Ambassador that unfortunately in view of the demands of national defense it has been found impossible to release these machines for Soviet use.

You will note also attached hereto a telegram37 to the Amtorg Trading Corporation notifying Amtorg of the revocation of licenses authorizing the export of a grinding machine and two lathing machines. This telegram has been held up until the matter could be discussed with Colonel Maxwell who advises us that the machines in question have not yet been manufactured and that the manufacture of them for the Soviet Government just now would not be in the interests of national defense. This telegram has, therefore, been initialed by Eu.38

None of these machines have appeared on any lists thus far presented by the Ambassador to Colonel Maxwell.39

  1. Mr. Welles wrote on this memorandum: “I agree. S. W.”↩
  2. Ante, pp. 435 and 437, respectively.↩
  3. Not attached to file copy of this document.↩
  4. Division of European Affairs.↩
  5. A final note by Ray Atherton, Acting Chief of the Division of European Affairs, reads: “31st. The Soviet Ambassador is pressing for a reply today. R. A.”↩