861.24/3–2345
Memorandum by the Acting Secretary of State and the Foreign Economic Administrator (Crowley) to President Roosevelt 34
Subject: Withdrawal of Agreement Offered in September 1944 to U.S.S.R. under Section 3 (c) of Lend-Lease Act.
The Soviet Government has not indicated any willingness to accept the terms offered by us for the proposed agreement under Section 3 (c) of the Lend-Lease Act, the first draft of which was submitted to it in May 1944, and the final United States terms for which were communicated to the Soviets in September 1944. On the contrary, they have indicated that they expect to finance the deliveries contemplated in the proposed 3 (c) agreement through a long-term postwar credit which they have requested in the amount of six billion dollars. Furthermore, in view of the present military situation, the initiation at this time of a program of procurement under a 3 (c) agreement of industrial plants requiring a long time to manufacture, ship and install, might possibly be considered by the Congress as a use of the Lend-Lease Act for postwar reconstruction purposes.
We recommend that the Soviet Government be informed that we cannot maintain the offer contained in the draft agreement submitted in September 1944 but that we believe it would be to the interests of both Governments to conclude a 3 (c) agreement concerning the disposition of certain lend-lease supplies in inventory or under contract at the end of hostilities against the common enemy. There is attached an aide-mémoire which we propose to be handed to the Soviet Ambassador35 if you approve this recommendation.
We are submitting this matter to you in advance because of the possible implications the withdrawal of the agreement offered may have from the military and political standpoints.
Leo Crowley