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

861.24/5–1345

Memorandum by the Chief of the Division of Eastern European Affairs (Durbrow)

[Washington,] May 13, 1945.

Subject: Retransfer by Soviet authorities to third countries of goods similar to those furnished under Lend-Lease.

In view of the President’s directive of May 4^49a ordering the curtailment of lend-lease shipments to the Soviet Union and careful screening of all lend-lease supplies which may be shipped to that country in the future, the question of the transfer by the Soviet authorities of lend-lease or similar goods to third countries has lost some of its importance.

Since July 6, 1944 the United States Government has been endeavoring to reach an agreement with the Soviet Government regarding the retransfer of lend-lease or similar supplies to third countries.⁵⁰ It was explained to the Soviet authorities that unless they obtained the prior consent of the United States Government to the retransfer of such supplies we might find it necessary to curtail the shipment of such supplies to the Soviet Union on the theory that such retransfers would be evidence that the Soviet Government no longer needs the supplies from the United States.

Although this question was taken up formally with the Soviet authorities on several occasions subsequent to July 1944, they never have asked the prior consent of the United States Government before transferring lend-lease or similar goods to third countries. When representatives of our embassy in Moscow discussed this question with the Vice Commissar for Foreign Trade he denied that any American equipment or supplies had been transferred by the Red Army to third parties, but he did admit that trucks, grain and other supplies had been turned over to the Polish or other authorities in liberated areas. He added, however, that these goods were in general of Soviet origin and not lend-lease supplies, and indicated that any lend-lease supplies which may have been turned over to the Polish military authorities for instance were in fact turned over to an integral part of the Red Army engaged in pursuing the war against the common enemy. The general thesis maintained by the Soviet authorities was that there was no need for them to inform us of the transfer of similar goods of Soviet origin to third countries. It was made clear to them, however, that if they should continue to transfer similar goods to those being furnished under lend-lease it might be necessary for us to curtail the shipments of such supplies.

Late in April consideration was given by the Coordinating Committee⁵¹ to instructing Ambassador Harriman to again take up the matter with the Soviet authorities and to make it absolutely clear to them that if they failed to provide full information concerning past transfers as well as the right to pass upon future transfers of lend-lease and similar goods the United States Government would cease shipments of specific items which had been transferred without authority. Before this question could be finally decided the cessation of hostilities in Europe took place and thus a new situation has been created.

Under the present directives regarding lend-lease to the Soviet Union which requires that the Soviet authorities furnish adequate information regarding the essentiality of Soviet military requirements it would appear that the question of retransfer could be handled by making it clear in each instance that the United States Government could not furnish any particular item if the Soviet authorities are transferring similar items to third countries. This question is of particular importance now in view of the recently concluded Soviet-Bulgarian trade agreement,⁵² which according to an unofficial copy received from Sofia calls for the transfer to Bulgaria of a large number of goods similar to lend-lease supplies which have been sent to the Soviet Union. It is recommended, therefore, that this aspect of future lend-lease policy to the Soviet Union be brought to the attention of the Foreign Economic Administration in order that in the screening process they will bear in mind the possibility of retransfer to third countries.

There is attached a table⁵³ containing a list of articles similar to those furnished under lend-lease which according to Soviet press reports or other reports have been transferred by the Soviet authorities to third countries. This list is only partial and confirmation of such transfers is not available in each case.

1. No directive dated May 4 has been found; but see memorandum by President Truman of May 11, p. 1000.
50. For aide-mémoire handed the Chargé of the Soviet Union on July 6, 1944, see Foreign Relations, 1944, vol. iv, p. 1098.
51. The Coordinating Committee of the Department, with the Under Secretary of State as chairman, dealt especially with matters of policy or action arising in daily operations and questions of interoffice relations.
52. Signed at Moscow, March 14, 1945; the text was not published.
53. Not printed.