861.51/3046: Telegram
The Ambassador in the Soviet Union (Harriman) to the Secretary of State
[Received April 20—2:15 p.m.]
1361. My oral statement of March 11,69 reference my immediately preceding telegram,70 reads in paraphrase as follows:
- 1.
- Soviet requests for transfer of what is possible (under the Lend-Lease Act and the Master Lend-Lease Agreement) of equipment needed for the improvement, rehabilitation and reconstruction of transport, production, and other facilities in liberated areas and in other parts of the USSR which is useful for the fullest and most vigorous prosecution of the war will be given consideration while hostilities continue. Acceptance of requests under the limited authority of Lend-Lease will have to be confined, as at the present time, to those which can be delivered and installed in the USSR within a justifiable period of time.
- 2.
- At the conclusion of hostilities some of the material for these projects may not have been delivered. Obviously, however, the lend-lease program must assure until hostilities are actually concluded an uninterrupted flow of supplies needed for the war. Simultaneously an orderly carrying out of these war programs at the conclusion of hostilities should be assured. With these considerations in mind it is proposed that the Soviet Government undertake to accept all equipment in agreed-upon categories which is not delivered at the conclusion of hostilities under a separate contract calling for repayment on terms of interest and amortization to be agreed upon.
- 3.
- There is no agency of the U.S. Government at the present time which is empowered to finance projects for reconstruction not definable as essential for the war. For this reason there is being given consideration to securing legislation for increasing the lending powers of the Export-Import Bank and to eliminating certain limitations which now [stand in the way of extending credit to the Soviet Union and to certain other European]71 countries.
- 4.
- I have been asked to obtain from you in connection with the above a list of items included in the billion dollar program which you mentioned to me some weeks ago, and also as much information as is available on subsequent requirements for the projects in connection with your long-range reconstruction program which you have in mind. I would appreciate receiving this information or any part thereof as soon as possible since it will be most helpful in connection with developing in the United States a program to deal with Soviet requirements in the most effective manner possible.
Mikoyan’s oral statement of April 18 reads in paraphrased translation as follows: [Page 1077]
The Ambassador’s statement made March 11 during the last meeting, setting forth the United States position with respect to the delivery to the Soviet Union of equipment needed for the improvement, rehabilitation and reconstruction of transport, industry and other facilities, has been brought to the attention of the Soviet Government.
The Soviet Government has noted with satisfaction the Ambassador’s statement to the effect that the United States Government in the period prior to the termination of hostilities against the common enemy will deliver to the USSR, according to the Lend-Lease Act and the Master Lend-Lease Agreement, equipment necessary for the improvement, rehabilitation and reconstruction of transport, industry, and other facilities in the liberated areas and in other parts of the USSR and useful for the fullest and most energetic prosecution of the war.
From the Ambassador’s statement, the Soviet Government expects that Soviet orders for delivery from the United States of the abovementioned equipment will be treated most favorably.
The Soviet Government agrees with the proposal of the United States Government to the effect that all equipment in agreed-upon categories not delivered upon the termination of hostilities will be accepted by the Soviet Government on conditions which will be established in an agreement between the two Governments and will be subject to regular payment of principal and interest.
The Soviet Government, in accordance with the desire of the American Government which has been communicated by the Ambassador, will transmit to the United States Government, as soon as the data are prepared, information regarding further requirements for the effecting of the long-range reconstruction plans.