861.24/3–345
Oral Communication by the Acting Secretary of State to the Ambassador of the Soviet Union (Gromyko)
1) Credit Clause
The only financial arrangements possible under existing legislation are those authorized by the Lend-Lease Act and are fully provided for under Article IV of the Preamble to the Fourth Protocol which reads as follows:
“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 the Government of the Union of Soviet Socialist Republics may elect to purchase from the United States schedules of supplies for cash.”
The above provisions adequately cover the only possible arrangement under existing United States laws by which supplies of the classes specified in the proposed supplementary agreement to the Master Lend-Lease Agreement of June 11, 1942 submitted to Mr. Stepanov on September 14, 1944 can be made available on credit terms. The terms set forth in this proposed agreement were reached after careful consideration and long discussion with representatives of the Soviet Government and, as the Soviet Ambassador was informed in the Department’s note of February 2, 1945, constitute the final United States offer.
The Soviet Government’s proposals submitted in its memorandum of January 3 are being given careful consideration. They constitute, however, a separate matter and must be considered apart from the Fourth Protocol.
2) Schedule of Supplies
The understanding of the Soviet Government is correct that the offerings listed in Annex II do not include items pertaining to the Third Protocol but remaining unshipped on July 1, 1944. These items, in so far as they have not been diverted to other uses, are available for shipment from the United States under the terms of the Proposed Fourth Protocol. With reference to this question it is believed that the text, as submitted, is adequate.
This text contains the following paragraph, appearing on page 1 of the United States Schedules of Shipping and Supplies. The pertinent words have been underlined.29 [Page 986]
“The Government of the United States will make available for shipment to the Government of the Union of Soviet Socialist Republics during the period of this Protocol, July 1, 1944 to June 30, 1945 from supplies made available under the Third Protocol but unshipped on July 1, 1944, and from quantities to be made available under this Protocol a minimum of 5,944,000 short tons of supplies as set forth in Annex I provided the quantities of specific items to be made available do not exceed the quantities of specific items offered in Annex II.”
In view of this paragraph the change in the wording suggested in your memorandum seems unnecessary. If any question as to interpretation should arise in the future, this memorandum clarifying the point should be conclusive.
3) Transitory Supplies
The need for reasonable stockpiles of supplies in the United States to facilitate shipping operations is appreciated and every effort will be made to provide such stockpiles. However, recent requests of the Soviet Government have been filed for an accelerated shipping program. Such increases in shipping programs, if accomplished, will correspondingly reduce the amount of stocks remaining at the end of the Fourth Protocol period. In view of the large number of unknown factors in the shipping and war situation, this government regrets that it cannot commit itself to end the Fourth Protocol period with stocks of any specific quantity. Measures, with which the Soviet Government is familiar, have already been taken in this connection to provide metals and some other materials and equipment for shipment after July 1, 1945.
4) List of Supplementary Deliveries
The list of supplies, which is to be designated as Annex III, is not yet in final form and will not be available in time for the signature of the Fourth Protocol. It will be delivered subsequently. The Soviet Government may rest assured that every effort is being made to meet as fully as possible the requirements stated in this list.
- Printed in italics.↩