871.6363/6–2945: Telegram

No. 834
The Acting Secretary of State to the Chargé in the Soviet Union (Kennan)1
secret
us urgent

1621. Embassy may have received Dept’s Instruction No. 678 of July 22 containing purported text Russo-Rumanian economic agreement of May 83 summarized in Bucharest’s tel May 17 reported [repeated?] to Moscow as 97.2 Dept’s A–276 June 294 contains instructions for protest to Soviet Govt on removal of oil equipment from Rumania and gives general guidance for further discussions with Soviets on petroleum matters. Bucharest’s telegram of July 8 repeated to Moscow as 1212 indicates possibility of new “fait accompli” based on agreement of May 8.

Dept now feels that strong presentation of views of this Govt both about the economic pact and the oil arrangement foreshadowed in Bucharest 121 to you should not be delayed pending receipt of A–276. [Page 738]You are therefore requested immediately inform appropriate Soviet authorities of this Govt’s concern over the possible application of the Russo-Rumanian trade pact in view of the policy of United States Govt of conducting trade with every nation free of discrimination arising from exclusive economic arrangements between nations, and also in view of our common interest in an equitable allocation of products in short supply in reconstruction period during which Soviet presumably wishes United States’ cooperation.

Please further inform Soviet authorities that conclusion of any arrangement affecting Rumanian oil or other industries such as indicated in Bucharest 121 July 8 would by same token be of equal concern to this Govt and should be deferred pending forthcoming tripartite discussions. This issue and the principles involved therein are on the United States agenda.

With specific reference to petroleum, please point out sacrifices accepted by American people in rationing of fuel oil and gasoline substantially restricting their military, industrial, and civilian consumption and sacrifices accepted by U. S. oil industry in allocation of equipment to the U. S. S. R. You should point out that oil picture in Rumania is only one aspect of a world-wide problem and that conclusion of treaties granting exclusive rights and of monopolistic corporate arrangements between Soviet and Rumanian Governments as well as arbitrary measures such as removing equipment, monopolizing petroleum supplies and delaying entry of American petroleum experts may force the United States to reconsider its policies which have hitherto been so favorable to Soviets with respect to supplying petroleum, technical data, equipment and products.

Please inform Harriman.

Repeated to Bucharest as 354 of July 16.

Grew
J[ohn] A. L[oftus]
5
  1. The gist of this message was included in telegram No. 43 of July 17 from Grew to Byrnes (file No. 800.00 Summaries/7–1745).
  2. Not printed.
  3. Signed at Moscow. Text in British and Foreign State Papers, vol. cxlix, p. 876.
  4. Not printed.
  5. Document No. 323, printed in vol. i .
  6. Not printed.
  7. Loftus’ initials as the official authorizing the dispatch of this message are not in his own handwriting, although he personally initialled the message elsewhere.