195.2/3822

Memorandum of Conversation, by the Under Secretary of State (Welles)

The Soviet Ambassador called to see me today at his request.

The question of the charter of tonnage for Soviet purchases was brought up in the conversation. I stated that I had discussed this question fully with the Maritime Commission and that the Commission had informed me that there had been no change in policy whatever since I had given the Ambassador assurances on that question some months ago. The present difficulties, I added, were due solely to economic reasons relating to our own necessary defense. I said that the reason why the Maritime Commission was not approving the charter of merchant steamships to the Soviet Union for the transportation of products purchased in the United States to Vladivostok was solely due to the fact that these vessels had to return in ballast from Vladivostok since there appeared to be no cargo available in Vladivostok for transportation to the United States. I further said that the Maritime Commission had informed me that charters would be readily approved if there were return cargo from Vladivostok, or from some other point in the Far East where strategic materials could be obtained as cargo for the return journey. The Ambassador said that he was glad to tell me that he had already learned that this was [Page 693] the fact and that one vessel had now been chartered to the Soviet Union upon the understanding that a return cargo would be found at some Indian port. He urged that similar action be taken with regard to the steamship Kentucky, which the Soviet Union desires to utilize in a voyage to Vladivostok. I said that if the arrangements I had mentioned could be made, the Maritime Commission I was certain would approve the charter.

The Ambassador again brought up the desirability of excluding the port of Murmansk from the combat area reaching around the northern tip of Norway. I said that this question had been under consideration for some time and that I would be glad to discuss the matter further with the Ambassador in the near future.

S[umner] W[elles]