196.6/1586: Telegram

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

1250. Department’s 779, August 31 [26], 7 p.m. Commander Frankel36 states that he understands that gratuities were not paid to crews of any ships that left United States after June 1942 and that some of the vessels leaving prior to that time did not receive payments. He states that payments were made to captains of the ships in form of dollar drafts on American banks and the captains were free to distribute proceeds among crews as they saw fit. Upon their return to the USA, Frankel thinks that in some cases payments may have been made to armed guard crews but that this would have been done unofficially and receipts would not have been obtained.

In view of the indirect method of payment, the difficulty if not impossibility of determining what payments have been made and fact that return of money to Soviet authorities would probably arouse some resentment on their part, I recommend that attempt to refund not be made at this time.

Standley
  1. Comdr. Samuel B. Frankel, Assistant Naval Attaché and Assistant Naval Attaché for Air in the Soviet Union.