871.6363/11–344: Telegram

The Chargé in the Soviet Union (Kennan) to the Secretary of State

4221. Upon receiving Kirk’s 1106, November 2, midnight to Department52 concerning removal for shipment to the Soviet Union by Russian military authorities in Rumania of refinery equipment and accessories of the Romano-Americana and other oil companies, I got in touch at once with the British Ambassador. He had several telegrams on this subject including one instructing him to take it up with the Soviet authorities. I told him that although I had no instructions I wished to take the matter up on my own initiative without further delay and we agreed to go to the Foreign Office together for this purpose.

Molotov was unable to see us and we were not able to see Vyshinski until this evening. The British Ambassador first read to Vyshinski a memorandum the main points of which were as follows: The British Government considered this action on the part of the Soviet authorities harmful to Allied interests and in conflict with the policy of Allied cooperation and requested that instructions be sent immediately to cease the removal of equipment and accessories of British owned companies [Page 255] from the oil fields pending discussions with the British representatives on the Control Commission. It was possible that such equipment might be made available for use in the Soviet Union but only after joint agreement between the three delegations and the Control Commission. The British Government asked that all machinery, except such as might be removed by agreement, be returned. Finally concern was expressed at the harm which might be caused generally to Rumanian economy by lack of discrimination in the policy pursued by the Allied Control Commission. The British Government hoped that efforts might be made to avert a serious deterioration of Rumanian economy which would be a bad advertisement for Allied rule in Rumania.

When the British Ambassador had finished his statement I said that while I had no official information on the subject I had received detailed reports from reliable sources which led me to believe that property of the Romano-Americana Company was being removed by Soviet military authorities for shipment to the Soviet Union. Assuming that these reports were correct, I wished to make certain following remarks:

I then said that I had not yet received instructions from my Government on this subject and that I might have to raise the matter again in a broader way when instructions were received. In particular I thought it possible that my Government might also have observations to make concerning the effects of this action on the economic situation in Rumania and on the prosecution of the war against Germany. For the moment, however, I had come only to express my own surprise and concern over the action the Soviet military authorities had taken. I drew Vyshinski’s attention to the Embassy’s memorandum of October 10 concerning property of the Romano-Americana Company in which the People’s Commissariat was informed of the interest of our Government in the protection of this property and to the People’s Commissariat’s reply of October 12 stating that this information had been transmitted to the Soviet military authorities in Rumania. I said I was unable to understand how the Soviet authorities, acting unilaterally and without our agreement, could have insisted on removing property of this company the status of which had been specifically made known to them. I said I expected that this property would be returned and restored to its former condition at once and that the Soviet military authorities in Rumania would be instructed to take no further unilateral action affecting property in which American nationals or companies were interested. In conclusion I told him that I thought this was a serious matter and was sure that a similar view would be taken in Washington. I expressed the earnest personal hope in the interests not only of our property owners but also of American-Russian collaboration in general with respect [Page 256] to former satellite countries, that the People’s Commissariat would give immediate and favorable attention to the matter and that the Soviet Government would take steps to remedy matters without waiting for any further communication from our Government.

Vyshinski, in replying to these representations, took the position that according to his information the items removed by the Soviet military authorities were entirely German property, tubes to be exact, which had been brought there at one time in transit, destined for use in the Caucasus. (This assertion, incidentally, is flatly contradicted in the reports which the British Ambassador has received from the British representative in the Control Commission in Rumania.) Vyshinski admitted that English and American properties were of course inviolable. He undertook to make further investigations into the character and ownership of the property which was being removed.

I said that if none of the items removed were ones in which there was an American interest my foregoing remark of course did not apply; but that I could not in any event concede the right of the Russian military authorities to remove any property whatsoever from the premises of American-owned companies in Rumania without prior consultation with those companies or with our authorities, and I wished to warn him in all friendliness that unilateral actions of this sort would unfailingly lead to trouble. To my surprise he agreed that what had been done in this instance should not have been done without consultation.

The conversation was conducted throughout in a friendly and conciliatory spirit, and I feel that it was definitely beneficial. Regardless of the facts with respect to the ownership of the property, I think we will find that it has not been wasted effort to exhibit from the start a lively and serious interest in the protection of our property rights in Russian-controlled areas.

Sent to Department as 4221, November 3, 11 p.m.; repeated to AmPolAd, Caserta, as 19 and to London as 248.

Kennan
  1. Not printed.