Foreign Relations of the United States: Diplomatic Papers, 1942, Europe, Volume III

861.24/1041: Telegram

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

Moscow, August 19, 1942—6 p.m.
[Received August 20—4:09 p.m.]

317. To McCabe from Faymonville.

1. Commissar had already learned from General Belyaev your views as explained in paragraph 1, your cable 230, August 13, midnight. In extended discussion, the Commissar was most interested in your shift to money value as basis for substitutions in list of requisitioned items. Heretofore, it has been understood that exceptions in lists may be made for three reasons: first, special military requirement here; second, production possibilities in America considering time and availability of raw materials; third, transport limitations affecting gross totals and. size, weight or handleability. Russians understand these reasons and concede that they must influence substitutions. Your unexpected decision that money value is to be the basis of substitutions introduces a new limitation which will both hamper supply and put Soviet requests in a false light. The Soviet Government is asking for items necessary to win the war, first, by direct supply of munitions from America; and, second, by supporting munitions industry in Soviet Russia. Physical difficulties which may require substitutions are understood but any attempt on our part to haggle over prices of substitutes appears inappropriate. In authorizing substitutions in protocol list, I recommend that you cease to use money value as basis for authorization and revert to the three principles of military necessity, production possibilities and transport limitations. General S. P. Spalding concurs.

2. Reference paragraph 3 your cable 230, August 13, noon [midnight]. Commissar states that he has already instructed General Belyaev as to what articles may be deferred if necessary to meet shipping limitations. He repeals that foodstuffs, especially wheat and flour, will be first subtractions. All industrial items are highly necessary to meet critical needs. All such items go to munitions industry immediately. Commissar specifically includes presses for aviation industry and measuring and testing instruments, electric furnaces and machine tools for munitions industry as critically needed now. Commissar reminds that although this industrial equipment for war industry has been urgently needed for a year, and although delivery was expected during the life of the first protocol, none of the highly necessary industrial equipment was received except for a few machine tools. The extremity of the need is magnified today after a year of war in which Soviet munitions industry has suffered severe reverses. Commissar further notes that types ordered are in practically all particulars identical with American models and standards. He feels that items on his requisitions would be useful in the United States in case shipping difficulties prevent their delivery to the Soviet Union. He therefore sees no reason to fear the accumulation of munitions above “reasonable cargo accumulations” and hopes that attention will be focused on maximum production, [Faymonville.]

Standley