Foreign Relations of the United States: Diplomatic Papers, 1945, Europe, Volume V

661.7131/5–1745: Telegram

The American Representative in Rumania (Berry) to the Secretary of State

Bucharest, May 17, 1945—noon.
[Received 7 p.m.]

345. Remytel 294 of April 21, 7 p.m.⁷⁸ The Rumanian economic delegation has returned from Moscow having signed two agreements there dating from May 8. The first is a 1-year trade agreement⁷⁹ and the second agreement covers a 5-year period of economic collaboration.⁸⁰ Full details will follow by pouch.⁸¹

Under agreement No. 1 the Russians are to deliver the following quantities in metric tons: 25,000 of semi-manufactured steel, 60,000 of cast iron, 1,000 copper, 100 tin, 10 antimony, 4 cobalt, 70,000 anthracite coal and 50,000 coke. Other products will include carbon electrodes, electric power cables, ball bearings, filters and chemicals such as potassium chloride, phosphorus and sulphur. 40,000 tons of raw cotton from Russia are to be spun in Rumanian mills, of which 20,000 tons are to be returned to Russia as thread. Other products include tea, gum arabic, vegetable oil, cotton seeds, cigarette paper and even quantities of rubber which will be the object of a special agreement.

Rumania is to deliver 267,800 tons of petroleum products including 100,000 of motor gasoline, 10,000 kerosene, 50,000 fuel oil, 45,000 gas oil, and 39,000 lubricants. The delivery of gasoline and kerosene is dependent on the discontinuance of deliveries of these products for account of article X of the armistice agreement. Other products include 250,000 cubic meters of timber, 1,000,000 square meters of window glass, 50,000 tons of cement, 10,000 tons of tar paper and quantities of carbon black and soda.

In agreement No. 2 Rumania was told that it could expect no agricultural assistance but Russia renounced its demand under article XII of the armistice for 2000 additional tractors. A prospectus was outlined to be implemented within 2 months by a Russian Economic Commission to be sent to Bucharest which provides for Soviet participation in all phases of Rumanian industry and transport. A Rumanian-Soviet Oil Company will be organized⁸² on equal shares. The agreement states that this company is to have preferential rights in securing oil exploration concessions. Similar joint companies are to be organized for heavy industry, lumbering river, Black Sea and aerial navigation. A Soviet Rumanian bank also is planned to finance the execution of the two agreements.

Officials of the Rumanian delegation state that they received every consideration in Moscow and that they were assured the Soviet Union did not desire a preferential economic position in Rumania over America and British interests but merely equal rights. The delegation was encouraged to consider prospects for quick additional trade agreements with Poland, Bulgaria, Finland and Hungary. Russians refused to discuss prospects of Rumanian trade with Turkey and the Near East and said that Rumania could surely receive all its needs from the Soviet Union and the states previously named.

Competent Rumanian economists state agreement No. 1 is not as bad as Rumanians originally feared but that it virtually monopolizes all potential Rumanian exports leaving the country without the possibility of exchanging commodities with other countries. They realistically regard Soviet assurances of equal national treatment under agreement No. 2 as impossible. With one joint Soviet Government and Rumanian company operating in each field preferential treatment is sure to result. Also the equality theory was abandoned in the agreement evolved for the joint oil company since it is to receive preferential exploratory rights.

The strongest critics of the agreements stress their essentially political implications as a Russian attempt to monopolize Rumanian markets and to restrict its trade to states in a Soviet dominated economic zone. An impression some members of the delegation received was that of Soviet desire for haste in securing actual operation of the two agreements within the shortest possible time.

Repeated to Moscow as 97.

Berry

78. Not printed; it reported that a Rumanian delegation had left April 23 for Moscow to negotiate a Rumanian-Soviet commercial accord (661.7131/4–2145).
79. For text of the trade agreement between Rumania and the Soviet Union, signed in Moscow May 8, 1945, see Economic Treaties and Agreements of the Soviet Bloc in Eastern Europe 1945–1951, Mid-European Law Project (New York, Mid-European Studies Center, 1952), p. 73.
80. For text of the agreement between Rumania and the Soviet Union concerning economic collaboration, signed at Moscow May 8, 1945, see ibid., p. 18, and British and Foreign State Papers, vol. cxlix, p. 876.
81. Copies of the two agreements were transmitted to the Department as enclosures to despatch 316, May 18, from Bucharest, not printed (661.7131/5–1845).
82. For text of the convention between Rumania and the Soviet Union regarding the creation of a Soviet-Rumanian company for the exploration, exploitation, refining, and marketing of crude oil and oil products, signed at Moscow on July 17, 1945, see Economic Treaties and Agreements of the Soviet Bloc, p. 24.