861.24/5–3045
The Foreign Economic Administrator (Crowley) to the Chairman of the Government Purchasing Commission of the Soviet Union in the U.S.A. (Rudenko)62
Dear General Rudenko: With reference to General Wesson’s letter of May 19, 1945, to Mr. Eremin and the subsequent discussion between them, I am setting forth the cash payment procedure and terms that would apply to the transfer to the U.S.S.R. of supplies now on order or in stock and covered by Soviet lend-lease requisitions which the Soviet Government desires to purchase and the FEA agrees to furnish on this basis.
The supplies which your Government desires to obtain on a cash basis should be described in letters to the FEA in terms of the serial numbers of the Soviet requisitions, or portions thereof, covering such supplies.
The Soviet Government shall agree to pay for the supplies in dollars upon the presentation of bills to the Soviet Government Purchasing Commission by the FEA. These bills would include:
- (a)
- The contract price of the supplies plus 15% of such contract price to cover transportation, storage and accessorial charges; or a proper portion of the contract price plus 15% thereof, where only a portion of the supplies covered by a contract are involved.
- (b)
- In cases where the supplies are moved on WSA63 vessels, the bills would include the ocean freight on the supplies, which includes port, stevedoring and other cargo expenses directly related to the handling of the supplies. In cases where the supplies are moved on [Page 1010] Soviet flag vessels, the Soviet Government would pay the port, stevedoring and other cargo expenses directly related to the handling of the supplies.
If the Soviet Government makes a request to purchase specified supplies on the above basis and the FEA agrees to provide the supplies, and the Soviet Government subsequently determines not to accept the supplies, the Soviet Government shall pay any net losses to the United States, including contract cancellation charges, resulting from such determination by the Soviet Government. The United States Government shall have the right to dispose as it sees fit of any supplies which the Soviet Government does not call forward and ship within six months after it is advised of their availability on a cash payment basis and the Soviet Government shall pay any net losses to the United States resulting therefrom.
I would appreciate it if you would advise me whether the above procedure and terms are acceptable to your Government.
As General Wesson stated in his letter of May 19, 1945 to Mr. Eremin, it is urgent that we be advised of the desire of your Government to purchase supplies in stock or on order in excess of eligible Soviet requirements on straight lend-lease terms in order that your Government’s requirements on this cash basis may be considered along with the urgent requirements of other competing claimants for the supplies.
Sincerely yours,