840.70/10–844: Telegram
The Ambassador in the United Kingdom (Winant) to the Secretary of State
[Received 1:30 p.m.]
8486. To Berle from Allison, Moats and Hooker. Copy of Soviet amendments to EITO agreement and of their statements at first meeting with them are en route by pouch.48 As indicated in Department’s 8190, October 6, midnight, effect of amendments is to deprive organization of any effective power. At three-hour meeting yesterday (to be followed by meeting today) Soviet Delegation took position that powers contained in article VII, sections 2 and 6, which are the most important sections from our point of view, and which they wish stricken out, constitute an infringement on the sovereignty of the member nations and an interference with their internal economic affairs. They further contend that the amendment to article VII offered by them is sufficient to permit the operation of the sanctions inherent in sections 2 and 6. This is clearly not the case. They profess to favor the sanctions explained by us, to be contained in sections 2 and 6 but do not favor the retention of these sections.
To the question: what are the Soviet reasons for wishing to limit the character of the organization to coordinating and consultative functions and to eliminate powers of allocation with respect to certain categories of transport equipment and material and over traffic of common concern, they replied that their amendment to article VII was sufficient to accomplish the purpose.
It is obvious from the above that little if any progress was made on either side in understanding what was in the minds of the other. It is hoped at today’s meeting to take the Soviet proposals one by one and elicit the reasons for each. [Allison, Moats, and Hooker.]
- For text of Soviet amendments to EITO agreement, see infra. Notes of the first meeting held by the American, British, and Soviet delegates are not printed.↩