Office of the Historian

861.24/678: Telegram

The Secretary of State to the Ambassador in the Soviet Union (Steinhardt)

Washington, October 21, 1941—midnight.13

1151. Your 1796, October 13, 3 p.m. You may inform the British Ambassador that there is no ground for his concern that the shipment of war materials from the United States to the Soviet Union may be delayed as the result of failure of the Governments of the United States and of the Soviet Union to complete financial arrangements.

[Page 848]

It may be added for your own information that since the middle of September our Government has advanced the Soviet Government $90,000,000, $40,000,000 of which were derived from gold purchases made by the Treasury and the balance from purchases made by RFC. The total amount of cash placed at the disposal of the Soviet Government in this country is sufficient to purchase all of the munitions now available. All of the war material promised for October has been obtained by the Russians and will be sent before the end of the month. Discussions are proceeding in Washington which undoubtedly will result in solving all financial problems connected with Soviet purchases in this country which may arise in the immediate future.14

Hull
  1. This telegram was based upon information supplied by Harry Hopkins on October 15, 1941. It was delayed in being sent because Ambassador Steinhardt was on his way to Kuibyshev, after evacuation from Moscow, between October 15 and 20. For correspondence concerning the removal of the Embassy from Moscow, see pp. 907–911.↩
  2. In a letter of October 15, 1941, addressed to Loy W. Henderson, Assistant Chief of the Division of European Affairs, Harry Hopkins further explained: “The final determination as to how the Soviet purchases are to be handled in this country is held up pending the passage of the Lend-Lease Bill [the reference is probably to the Second Supplemental National Defense Appropriation Act, approved October 28, 1941; 55 Stat. 745]. No mention should be made, however, that our Government is going to use the Lend-Lease Bill to finance Russian purchases. Harriman was to secure certain information which may lead this Government to insist that the Soviets sell us a stated amount of gold each month as partial cash payment, at any rate, on material advanced to them. Furthermore, Jones may advance further funds, provided there is some real evidence that the Soviets can deliver raw materials.” (861.24/705)↩