740.0011 European War 1939/31891
Memorandum of Conversation, by the Chargé in the Soviet Union (Hamilton)72
On October 15 at 8:30 p.m. I accompanied Mr. Donald M. Nelson in a call which he made on Marshal Stalin. The Marshal received us alone, the only other person present being his interpreter.
The call lasted for one and one-half hours.
During the first fifteen or twenty minutes, Marshal Stalin confined his remarks to brief, matter-of-fact comments on what Mr. Nelson had said. There were at times periods of silence. Thereafter, throughout the remainder of the conversation Marshal Stalin talked more, laughed, and exhibited definite interest.
Mr. Nelson covered much the same ground, though in different form and language, as during his talk with Mr. Molotov on October 12.
In connection with Mr. Nelson’s comment to the effect that in his judgment the American people and the Russian people should get along well together and there should be developed large trade between the United States and the Soviet Union, Marshal Stalin said that the Soviet people liked Americans better than the people of other countries and preferred American products, though expensive, to the products of other countries, because of the high quality of those products. Marshal Stalin said that there was no reason for there arising between the United States and the Soviet Union conflicts of interests.
When Mr. Nelson said that the United States, after the war, would have surplus capital equipment and could easily supply the urgent needs which the Soviet Union would have in rehabilitating its country and its industry, Marshal Stalin stated that the Soviet Government could use certain specified quantities of locomotives and several other commodities. Mr. Nelson made note of the quantities and the commodities (see attached secret list73) and said that it would be easy for United States production, taking into account what we would have available at the end of the war, to supply these needs. He said that the only item mentioned by Marshal Stalin which might present any difficulty was the locomotives. Marshal Stalin said that the figures he gave represented simply an initial order or need. Marshal Stalin asked whether the United States would have a surplus for export of machine tools. Mr. Nelson replied in the affirmative. In reply to [Page 714] further inquiry, Mr. Nelson said that the United States would not have a surplus of consumer goods.
Marshal Stalin asked whether the Soviet Union could purchase from the United States on credit. Mr. Nelson replied that in his individual judgment an arrangement could be worked out whereby, during the first years after the war when the Soviet Union’s income would be less and when its expenditures for rehabilitation would be comparatively great, payments to be made by the Soviet Union could be small and later gradually increased as the Soviet Union gained in economic strength and income. Marshal Stalin appeared to be greatly interested in this idea and in obtaining United States goods on credit.
During the conversation Mr. Nelson advanced as his own personal idea the suggestion that there be appointed a group of American business men to meet with representatives of the Soviet Government to study and work out a plan for a peace time exchange of goods between the United States and the Soviet Union. Marshal Stalin said with indication of approval that this represented a business-like and direct approach by Mr. Nelson. Marshal Stalin inquired whether Mr. Nelson’s idea was that there should be a joint commission of Americans and Russians and whether such a commission should be established immediately. Mr. Nelson replied in the affirmative on both points.
Several times Marshal Stalin stated that the Soviet Government could be definitely counted upon to pay its obligations.74 He said that the Soviet Government would not make “token” payments as many other Governments had done after they had incurred obligations. This comment brought forth a general laugh but Marshal Stalin’s repetition of the comment showed definitely that he intended it to be taken seriously. Mr. Nelson said that as soon as he got back to the United States he would present to the President this idea of a joint American-Russian commission to be established with a view to formulating a plan for future exchange of goods between the Soviet Union and the United States. Marshal Stalin expressed his definite approval.
At several points during the conversation Marshal Stalin said that the Soviet Government would be glad to assist Mr. Nelson in any way while he was here. He said that no difficulties would arise in connection with Mr. Nelson’s desire to leave by the Siberian–Alaska route. He said that this was the safest route.
[Page 715]The conversation was carried out in an atmosphere of friendliness. At the outset, Mr. Nelson presented Marshal Stalin with three pipes and a can of Mr. Nelson’s favorite tobacco which Marshal Stalin accepted with an expression of thanks.
- Transmitted to the Department by the Chargé in the Soviet Union in his despatch No. 309, October 21; received November 12.↩
- This brief list specified 10,000 locomotives; 50,000 railroad cars, including: flat cars; 30,000 kilometers of rails; and 300,000 to 400,000 kilowatts of steam and hydro capacity.↩
- For the earlier failure of negotiations in regard to claims and credits between the United States and the Soviet Union, see Foreign Relations, The Soviet Union, 1933–1939, pp. 166 ff., and particularly the statement to the press on January 31, 1935, by Secretary of State Hull, p. 172.↩