861.24/912: Telegram
The Secretary of State to the Second Secretary of Embassy in the Soviet Union (Thompson), at Moscow
160. From McCabe for Faymonville. Refer your telegram 157.5 On May 29, 1942 Foreign Affairs Commissar was given joint proposal by United States and British Governments for second protocol. Schedule of supplies from the American Government is in response to request filed in early April with this Government. Schedule of the British is based on assumption that supplies from Britain are desired at levels approximately as at present. Offer is made in present proposal to make available at centers of production in United Kingdom between 800,000 and 1,000,000 tons and at centers of production in the United States approximately 7,000,000 tons of goods. American goods broken down as follows: 1,800,000 tons of machinery materials and industrial equipment; 1,110,000 tons of naval and military equipment, ammunition and armament; and 4,300,000 tons of food. Possible limitations on shipment is reviewed in the proposal. Limiting factor shipment by southern route is inland transportation from ports on Persian Gulf. Controlling factor governing deliveries by northern route is the amount of shipping that can be convoyed. In view of the factors limiting shipping United Kingdom and the United States request that the Soviets select approximately 4,400,000 tons of supplies from the total joint offering. Selected supplies would then become the basic program for shipments from both United States and the United Kingdom via the northern and southern ports.6 In the event that items not listed in the second protocol are later requested, other promised items must of course be relinquished in order that the shipping limitation will not be surpassed. In the event that the Soviets desire to furnish their own vessels for shipments from Pacific ports, additional supplies may be had up to total amounts listed in the offer. Shipping necessary to lift that part of the 4,400,000 tons for which the Soviets are unable to supply vessels will be transported by the United States and the United Kingdom. New Lend-Lease agreement signed by the Soviets on June 11, 1942, and replacing previous credit arrangements, will form basis of financial arrangements to cover American portion of the proposed new protocol and any adjustments thereof.
Non-protocol items as well as items from the first protocol not shipped by the 30th of June will be included automatically in the new protocol and quantities of new material to be ordered thereunder will [Page 710] be reduced proportionately. In order to reduce the carry over every effort will be made to transport as many of the items as possible and as are available in June. Selection of the items to be included in the 4,400,000 tons is now awaited by this Government. In the meantime, in order to avoid possible hiatus because of delays in Soviets response to offers, a priority list for July is being prepared by General Belyaev.
In view of the necessity of planning production of items such as trucks, it is requested that you urge prompt action in selection of items desired within the 4,400,000 ton program. Belyaev and Burns have informally agreed that in connection with the Pacific Ocean shipments there shall be no increase in the Pacific of the number of Soviet vessels over present number through diversion of Soviet vessels now operating in the Atlantic. Total shipments to both northern and southern ports will continue to be restricted by limitations on available shipping to 4,400,000 ton figure even should capacity of inland routes in the south be increased and convoy difficulties in the north simplified. [McCabe.]