893.24/1359: Telegram
The Ambassador in the Soviet Union (Standley) to the Secretary of State
[Received 11:35 p.m.]
544. Department’s 225, May 15, 3 p.m.10 The Counselor of the Chinese Embassy has informed Page11 that Lozovski12 recently advised the Chinese Ambassador that the Soviet Government could not discuss the question of the exchange of Soviet gasoline for Chinese tin until the Chinese Government had settled certain tin and wolfram commitments made under former Soviet-Chinese trade agreements which had not been fulfilled. To this the Chinese Ambassador replied that since these products could no longer be exported to the Soviet Union by sea but had to come by truck, and in view of the shortages in China of gasoline and spare truck parts, it would be impossible for China to fulfill the commitments in question until it had received sufficient quantities of gasoline and spare parts.
The Counselor stated that although no progress has been made in the discussions relative to transit shipments to China the Soviet Government continues ostensibly to desire to keep the question open. He is of the opinion that the refusal of the Soviet Government so far to grant transit rights is based on political and not technical considerations and believes that the Soviet position is attributed not only to a reluctance to provoke Japan but also to a policy, which the Soviet authorities consider politically unwise to alter at this time, of not permitting military supplies to pass in transit through the Soviet Union. This policy was set forth in an order of the Commissariat [Page 599] for Foreign Trade, dated March 18, 1941, prohibiting the transit shipment of arms, munitions, military supplies, et cetera through the Soviet Union, and was reported to the Department at that time.
As I intend to continue to impress upon the Soviet authorities the interests of my Government in the question of the movement of supplies to China, I would appreciate receiving any recent information on this matter, and especially whether it came under discussion during Molotov’s visit.