861.24/2–2045

Oral Communication by the Chargé of the Soviet Union (Novikov) to the Acting Secretary of State on February 20, 1945

1) Credit clause.

Concerning the supplies to the Soviet Union in pursuance of the Fourth Protocol of that part of equipment which the Soviet Government agrees to pay for according to terms of a long-term credit the Soviet Government as it was mentioned in the Memorandum handed to Ambassador Harriman on January 3, has in mind the realization of such supplies on the basis of a special agreement concerning the long-term credit not connected with the Agreement of June 11, 1942. It was the very agreement that was mentioned in Ambassador Gromyko’s note of January 4, 1945, addressed to Secretary of State Stettinius.

In this connection it would be desirable to omit from section 3 of the introductory part to the group V “Machinery and Equipment” of the program of shipping and supplies by the United States the following:

“the terms of a proposed agreement supplementary to the Mutual Aid Agreement of June 11, 1942, when executed, draft of which [Page 978]was transmitted for the consideration of the USSR by the U.S. on May 24, 1944.”

substituting it for [for it?] the following:

“the terms of a possible agreement concerning the credit between the Governments of the USSR and the United States in the future.”

With the same purpose it is proposed to include in the first paragraph of Article IV of the Protocol, after the words “by Mutual agreement” the following: “or with the terms of appropriate agreement concerning the credit.”

Article IV

“The financial arrangements concluded between the Government of the Union of Soviet Socialist Republics and the Government of the United States in connection with the supplies furnished in pursuance of the present protocol may be in accordance with the terms and conditions of the master Lend-Lease Agreement of June 11, 1942, and with the terms and conditions of any amendments to said agreement which have been or may hereafter be concluded by mutual agreement or with the terms of appropriate agreement concerning the credit or the Government of the Union of Soviet Socialist Republics may elect to purchase from the United States schedules of supplies for cash.”

Section III of Group V—Machinery and Equipment

Items designated by the symbol III in the following schedules totalling approximately $481,807,000 represent supplies requested by the Union of Soviet Socialist Republics for its war production programs, which require a long period to produce, or to reproduce it [if] already constructed, and have a long period of useful life. Except as otherwise noted, items included under this paragraph will be subject to the terms of possible agreement concerning the credit between the Governments of the U.S.S.R. and the United States in the future. Items under this paragraph may also be placed on order without the financial assistance of the Lend-Lease Act. All items under this paragraph are also subject to the following conditions.

2) Schedule of Supplies.

It is necessary to ascertain whether we understand correctly that the schedule of supplies, outlined in Annex II, does not include quantities of articles of supply delivered during the Third Protocol period but unshipped from the United States by July 1, 1944.

From the whole text of the last draft of the Protocol as well as when comparing this draft with the American draft of August 2517 such a conclusion suggests itself; however, it would be desirable to introduce into the text of Annex II an appropriate direct provision as follows: [Page 979]

“Quantities of articles of supply, delivered during the Third Protocol period, but unshipped from the United States by July 1, 1944, are not included in the quantities mentioned in this Annex, provided however, that the shipments of the quantities unshipped by July 1, 1944, will be subject to the provisions of the first paragraph of the section ‘Supplies’ of the United States schedules of shipping and supplies.”

3) Transitory Supplies.

The Soviet Government, taking into consideration the statement set forth in the note of the Department of State that the shipping during the Fourth Protocol period will comprise a minimum of 5.944.000 short tons and the shipping from the Western Hemisphere to the Soviet Union during the same period will comprise minimum 55.700.000 short tons, including 356.000 short tons from Canada, —expresses the wish that the figure of minimum transitory supplies of 600.000 short tons be included in the Fourth Protocol in conformity with the statement mentioned in the United States draft of August 25, 1944.18

For Stockpiles

Note to Annex I

“Grand total for six groups is 5.944.000 short tons, of which 5.344.000 short tons for shipment within the period from July 1, 1944 through June 30, 1945 and balance, i.e. 600.000 short tons as stockpiles by July 1, 1945.”

4) List of Supplementary Deliveries.

The Soviet Government authorized me to draw your attention to the fact that up till now a list of deliveries in accordance with the requirement, transmitted to the United States Government by the Government of the USSR on October, 17, 194419 has not yet been prepared by the Government of the United States and the Soviet Government would appreciate it if this list be prepared in the near future that it might be included in the Fourth Protocol.

  1. See paragraph numbered 4 of telegram 2066, August 29, 1944, 3 p.m., to Moscow, Foreign Relations, 1944, vol. iv, pp. 1123, 1126.
  2. See paragraph 5 of telegram cited in footnote 17, p. 978.
  3. List not printed, but see note from the Ambassador of the Soviet Union, October 30, 1944, Foreign Relations, 1944, vol. iv, p. 1150.