861.24/5–3045: Telegram
The Ambassador in the Soviet Union (Harriman) to the Secretary of State
[Received May 30—3:20 p.m.]
1812. From Harriman supplementing Deane’s Army cable M–24482, May 28, to President’s Protocol Committee. In my call at Stalin’s suggestion on Molotov and Mikoyan yesterday afternoon to discuss Lend-Lease matters, Mikoyan stated that he had been informed that we had been diverting to France, Belgium, UNRRA, etc., industrial equipment ordered by the Soviet Govt under the Third and Fourth Protocols which thus far had not been delivered. These undelivered orders, he said, totalled about $330,000,000. He requested that such equipment be not transferred to third parties and that orders for industrial equipment placed in the US by the Soviet Govt be not cancelled or at least that the Soviet Govt be advised in advance of any cancellations.
I stated and reiterated several times that their failure to accept our proposal for the 3–c credit agreement was the cause of the present situation. I explained the legal limitations with which we were faced in connection with Lend-Lease on the termination of hostilities in Europe and reminded them that their representatives in Washington beginning a year ago had been fully and repeatedly forewarned that the present situation would result without an agreement on 3–c. Molotov inquired whether I had any suggestions to make which might facilitate in clearing up the present deadlock. I replied that I could offer no suggestion under Lend-Lease and that, in my opinion, it would now be necessary to obtain legislation from Congress repealing the Johnson Act61 and authorizing postwar credits. I added that I would, of course, advise my Govt of the conversation and request information. I request that I be urgently informed on this question including our decision regarding remaining equipment for partially completed projects and whether any arrangements other than cash payment can be made whereby deliveries of any of the other equipment on order can be effected.
[Page 1009]I assured them that I knew all Soviet requests would be viewed sympathetically and that the new situation did not signify any unfriendly attitude on part of my Govt. However, I did not give them any encouragement that the equipment in question could now be delivered to the Soviet Govt under Lend-Lease terms.
Molotov stated that no reply had been received to the Soviet note of January 30 [3] and asked for such a reply. Although I reminded Molotov that I had told him at the meeting in which he handed me the note that in my opinion, it was inadvisable to combine the Lend-Lease period and postwar credits, I do feel that some reply or explanation is due the Soviet Govt to this note of January 30 [3] and would appreciate being informed so that I can officially advise Molotov of our position in regard to his note.
- Approved April 13, 1934; 48 Stat. 574.↩