861.24/638a: Telegram
The Secretary of State to the Ambassador in the Soviet Union (Steinhardt)
1089. From Secretary of Treasury for Harriman. For your information. Mr. Gromyko of the Soviet Embassy and Mr. Lukashev of Amtorg called at their request on Secretary Morgenthau this morning. Mr. Gromyko pointed out to the Secretary that the $10,000,000 which Jesse Jones had given his Government as the first installment of the $50,000,000 advance would be exhausted, as cash advances for goods ordered and as payments for goods purchased, before the end of the month. Mr. Gromyko said that Mr. Jones had promised to advance another $10,000,000 installment on October 1 which he understood was to last until the next monthly installment expected on November 1. It was explained to the Secretary by Gromyko that this $10,000,000 would be far from covering the needs and that up to October 10 they would need about 12 million and for the remainder of the month substantially more. Mr. Morgenthau asked the two Russians how much more they thought they would need during October to which they replied that inasmuch as it depended upon the quantity of goods that they would be able to order and purchase they could not say definitely but estimated the need during October as 100 to 150 million more. They explained the size of the sum as due to the large cash advances they are required to make in placing orders.
The Secretary repeated to them what he had told Mr. Chuvakhin of the Soviet Embassy the day before. Mr. Morgenthau said the President desired, pending the completion of longer range plans, to see that the Soviet Government would have the dollars it needed to meet the current requirements. The Secretary advised them that the Treasury, complying with the President’s desire, was prepared to purchase a reasonable amount of gold from the Soviet Government for future delivery. The gold to be delivered within 90 or 120 days or if necessary even longer but the dollars on the purchases to be made available as needed. Mr. Morgenthau requested Mr. Gromyko to inform his Government of this message and to find out how much gold the Soviet Government wished, on the basis indicated, to sell during October to the Treasury. [Morgenthau.]90
- Mr. Harriman replied through Ambassador Steinhardt in telegram No. 1739, October 1, 1941, that “the subject of finance has not been raised as yet by anyone in conferences here”. (861.24/648)↩