861.24/1110

Memorandum of Conversation, by Mr. G. Frederick Bernhardt of the Division of European Affairs

Participants: Major General J. H. Burns, Secretary [Executive] of Munitions Assignments Board; Brigadier General Sidney Spalding, Assistant to General Burns; Mr. Arthur Van Buskirk, Assistant General Counsel, Office of Lend-Lease Administration; and Mr. G. F. Reinhardt, Division of European Affairs, State Department.

The meeting was called by General Burns who discussed the signature of the Second Protocol between the USSR, the United States, and Great Britain on the subject of aid to the Soviet Union.

After some discussion it was the consensus that in as much as some time had elapsed since the proposed Second Protocol was presented to the Soviet Government and because of the change in the general situation particularly with respect to the problem of shipping, a brief Protocol should be drawn up for signature by the three Governments to which the original Anglo-American proposal and the Soviet acceptance would be attached as annexes. It was further agreed that the substance of this Protocol would consist of a statement of Anglo-American policy on the subject of aid to the Soviet Union, an affirmation of the original Second Protocol including the fact that it was deemed to have been in effect since July 1, 1942, and a paragraph on the subject of the three Soviet desiderata contained in the Soviet Ambassador’s note of July 7, 1942. With regard to the Soviet desiderata it would probably be impossible to record more than an expression of Anglo-American intention to make every effort as far as the military situation would permit to meet the Soviet requests.

During the course of the conversation General Burns explained that the principal reasons why the Protocol had not been signed to date were (1) the difficulties involved in the effort to meet the Soviet requests contained in the Ambassador’s note of July 7 which were still insoluble and would delay the signing of the Protocol another six months unless treated in the manner mentioned above, and (2) the changes in the general situation of Soviet supply brought about by the convoy difficulties encountered this summer in the north Atlantic. General Burns said that after the experience encountered by the June convoy a letter had been sent to the Soviet Purchasing Commission on July 29 proposing a readjustment of the shipping schedules because of the shipping problem and a readjustment of production schedules in order to avoid the accumulation of large stocks of material which could not be moved. He said that the Soviet reaction was [Page 723] very violent and that the Soviet representatives energetically opposed any readjustment of production schedules. On August 13 another letter was addressed to the Soviet officials in which it was agreed that the production schedules would not be modified but that the American Government reserved the right to divert products when necessary in order to avoid undesirable accumulation of stocks. General Bums stated that in as much as there had been no reply to this last letter it was assumed that the Soviet representatives were agreeable to this procedure. At this point General Burns emphasized the importance of drawing up for signature a Protocol which did not reopen these problems which were not susceptible of final solution.

Mr. Reinhardt stated that the Department had been informed by the British Embassy that Lord Halifax had received full powers to sign the Protocol for the United Kingdom. General Burns added that he felt sure the British Ambassador would be agreeable to such a document as was proposed.

General Burns stated that the next round-table meeting on Lend-Lease matters with the Soviet representatives was to be held on Friday, September 25, and that it was, therefore, desirable that the Protocol be signed not later than the proceeding [preceding] Thursday.

General Burns requested Mr. Yan Buskirk to make a draft protocol along the lines discussed in the meeting and it was agreed to meet in General Burns’ office for the purpose of studying the draft at 9 o’clock on Monday morning, September 21, 1942.

It was agreed that when the text of the Protocol was in its final form and had both British and Soviet approval it would be given to the Department for final typing for signature. In order that the preparation of the documents might be started without delay Mr. Reinhardt was given a copy of the proposed Second Protocol which was handed to the Soviet Government.