740.00119 E.W. 1939/9–844: Telegram
The Ambassador in the Soviet Union (Harriman) to the Secretary of State
[Received 8:22 p.m.]
3383. ReEmbs 3343, September 6, 4 p.m. In the conferences on the Rumanian armistice terms, full agreement has been reached on the wording of all of IDS [its] terms with the exception of the indemnity to be paid by Rumania to the Soviet Union. (The new protocol has not been discussed, reEmbs 3382, September 8, 4 p.m.) The changes in the language are in the nature of clarification and practically all of the Department’s suggestions have in substance been excluded [included] with the exception of the paragraph on contribution to general relief. Molotov objected to the inclusion of this provision in the armistice but agreed that if occasion arose when it was desired to have Rumania make a contribution to relief of other countries, the subject could be a matter of consideration at that time, bearing in mind Rumania’s capabilities in the light of the other obligations she assumes under the armistice.
The British Ambassador today proposed a redraft of the article on reparation to the Soviet Union which excluded reference to the percentage which the $300,000,000 bore to the total damage caused by Rumanian occupation of Soviet territory and inserted the word “provisionally” in the clause that fixed the sum. Molotov agreed to the first of these proposals but insisted on the elimination of the word “provisionally”. The British Ambassador agreed to drop the word [Page 227] “provisionally” provided a separate protocol were concluded between the three Allied Governments which would cover (1) a clause to the effect that the inclusion of the fixed sum of $300,000,000 had been agreed to without prejudice to a revision if it developed that this amount was beyond Rumania’s capacity to fulfill and (2) a provision that while the British Government did not object to deliveries to the Soviet Union alone within the amount of $300,000,000, it should be borne in mind that other claimant countries should receive in the final settlement an equitable proportion of the total reparations received from all enemy countries.
The British Ambassador had been instructed to inform the Soviet Government that it was the British opinion that $300,000,000 considering Rumania’s other obligations would probably be beyond her capacity to pay. Molotov made it clear that the Soviet Government would not agree to sign a separate protocol of this character. Thus the British and Soviet Governments are again at an impasse and the British Ambassador is cabling for further instructions.
Sent to Department as 3383, September 8, 5 p.m. Repeated to London as 165, September 8, 5 p.m.