811.22761/59

Memorandum by the Assistant Secretary of State (Berle) to the Acting Secretary of State

Mr. Welles: Mr. Henderson and I have been reviewing the meeting yesterday. As you probably know, the meeting was unanimously against handing over military secrets to Russia, or permitting Soviet engineers to enter the plants other than for normal inspection work in connection with goods which are destined for them.

The list of the military secrets requested itself shows very efficient espionage. Many of these secrets were divulged to us by the British [Page 799] and, of course, cannot be handed over without their acquiescence. The previous conduct of the Russian engineers in the plants made it plain that their real work was not limited to the nominal scope provided in the contract.45

After discussing this with Mr. Henderson I believe that the policy should be to make available all possible matériel to the Russians as matériel; to permit them all normal privileges in inspection work within the plants. But we do not accord the privilege of continuous presence within the plants to anyone (not even the British). The secrets endangered are British as well as our own; and at least for the time being we are not too clear about the Russian policy (in this connection note that the Communist party line in Mexico is anti-United States even since the invasion).

Since the Russians have declined to permit American observers both in the war zone and Vladivostok, it would seem that there was a perfectly adequate reason for declining to afford them the extraordinary privilege they now ask. It developed in a discussion yesterday that Secretary Stimson46 had stated this quite bluntly to Ambassador Oumansky who had requested the delivery of military secrets from him.47

A[dolf] A. B[erle], Jr.
  1. A representative of the Radio Corporation of America had remarked to Mr. Henderson on July 2, 1941: “The continued presence of Soviet engineers would be a nuisance, particularly in view of their attitude of never being satisfied with what was being shown to them.”
  2. Henry L. Stimson, Secretary of War.
  3. Mr. Welles noted upon this memorandum: “I agree.”