861.24/973: Telegram
The Chargé in the Soviet Union (Thurston) to the Secretary of State
[Received July 1—8:15 p.m.]
573. Today’s local paper publishes an announcement of the signing in Moscow on June 27 by the British Ambassador7 and Mikoyan [Page 711] of an agreement concerning the financing of war deliveries and of other military assistance from the British Government to the Soviet Government. This agreement guarantees (1) deliveries of war materials and other military aid to the Soviet Government by the British Government (2) deliveries of armaments of Empire manufacture free of charge and (3) further improvement in British war deliveries to the Soviet Union. The agreement also states that it is the wish of the Soviet Government that any assistance from the one party to the other be rendered on the basis of reciprocity. It contains a retroactive clause to the effect that it shall be considered to have entered into force on June 22, 1941.
The announcement points out that this agreement does not in any way affect British deliveries of raw materials and equipment of a general nature which are regulated by the agreement of August 16, 19418 concerning mutual deliveries, credit and payments “which created all the prerequisites for the constant expansion observed in the delivery of English goods to the Soviet Union and of certain Soviet goods to Great Britain”. It is also announced that as the 10,000,000 pound credit extended to the Soviet Government by the British Government under the agreement of August 16, 1941 is nearly exhausted a further credit of 25,000,000 pounds was made available a few days ago by the British Government on the basis of the same agreement.
The announcement concludes with the statement that “the new agreement and the new credit provide a wide financial base for economic and military assistance from Great Britain to the Soviet Union”.