861.24/480

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

Mr. Welles: Colonel Henry W. Eglin, member of the Compensation Board, Claims Division, the American Army officer who has been in charge of the work of requisitioning for American use equipment ordered by the Soviet Government in this country, has just come in to see me, at Mr. Green’s39 suggestion.

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He says that up until recently Amtorg has been refusing to accept any notice of requisitions and has been insisting that matters relating to compensation for requisitioned material must be handled through diplomatic channels. Amtorg has suddenly reversed its policy and is frantically endeavoring to get in touch with the various American firms which have received payment from it in advance for equipment, and is asking them to return the funds paid at once to Amtorg. Apparently Amtorg is willing to sign some kind of a release of claim for the equipment in return for the funds. The interesting feature of this change of policy on the part of Amtorg is its insistence that all funds be paid over to it by Monday, April 14.

In view of the present international situation I am wondering if this reversal in Soviet policy may not have a significance much deeper than a mere matter of commercial relations between the United States and the Soviet Union.

  1. Joseph C. Green, Chief of the Division of Controls.