861.24/7–2245
Memorandum of Conversation, by the First Secretary of Embassy in the Soviet Union (Page)76
| Present: | Mr. W. A. Harriman, American Ambassador |
| Major General Sidney P. Spalding, Chief of Supply Division | |
| Mr. Edward Page, Jr., First Secretary of Embassy | |
| Mr. A. A. Mikoyan, People’s Commissar for Foreign Trade Soviet Interpreter |
Subject: Termination of Lend-Lease.
The Ambassador stated that after his recent talk with Mr. Molotov and Mr. Mikoyan on Lend-Lease matters he had immediately telegraphed to Washington regarding the industrial equipment items of the Fourth Protocol that had remained unshipped. He explained that the undelivered parts of plants on which shipments had already been made were receiving special consideration but that as far as other items were concerned there was no way those shipments could be made under the law except against cash payment. The Ambassador continued that he never understood why the Soviet Government had been unwilling to come to an agreement on the credit terms previously offered to it under 3C. He had written on August 31, 1944 about his concern as to what would happen unless such credit arrangements were made. This was past history; however, the Ambassador wished to make it clear that the American authorities had over a year ago given notice to the Soviet Government as to the situation which would arise in connection with Lend-Lease upon the termination of hostilities in Europe in case credit arrangements were not made. The fact that Marshal Stalin had said that such notice had not been given had greatly disturbed the Ambassador and had caused him carefully to go [Page 1019] into the record. For that reason he wished to refer to his letter of August 31 and to quote several sentences of it. These stated:
“I have been asked to call to your attention the fact that until a financial agreement along the lines proposed is reached it is impossible for my Government to put into production these items, that after the termination of hostilities there is at present no legal way that my Government can extend credits to the Soviet Union to the extent required, and that unless some financial agreement is reached prior to the termination of hostilities with our common enemy, shipments under Lend-Lease will automatically cease. There is at present no other legal way my Government can finance future shipments and considerable time may elapse before other financial arrangements can be made. A situation of this kind would be regretted by my Government since as you know it is its policy and desire to render the fullest assistance within its power to the Soviet Union.”
The Ambassador said that his letter also expressed his personal concern over the situation and his willingness to come in and see Mr. Mikoyan at any time to discuss the matter.
The Ambassador continued that his main reason for going into past history was to make it absolutely clear that his Government had done everything in its power to take measures to meet the Lend-Lease situation which would arise upon the termination of hostilities in Europe. In this connection he wished also to point out that in May 1944 Assistant Secretary Acheson had explained fully the situation to Mr. Stepanov. Therefore Marshal Stalin’s statement that the Soviet Government had not been given sufficient notice did not conform to the facts.
The Ambassador continued that the American authorities were now trying to work out some measure to permit the shipment of items for uncompleted plants. He did not know exactly where this matter stood at the present time but knew that the Soviet Purchasing Commission and the Lend-Lease authorities were working on it. However on other items the Soviet authorities in the United States had been informed that they would be delivered only against cash. Under existing American law there was no other way to arrange this.
Mr. Mikoyan stated that the Ambassador’s statement was not the one the Soviet Government had expected. With respect to the back history he must remark that Marshal Stalin was correct in his statement that sufficient notice had not been given. It was true that the Ambassador and Mr. Acheson had stated that upon the termination of hostilities supplies should be made available on a credit or cash basis. The American authorities had put forward certain proposals and it would have been surprising if the Soviet authorities had merely turned down the United States proposals without putting forward their own. They had done so and also stated that they would agree [Page 1020] to pay for undelivered items after the war. This had never been disputed. The negotiations over credit however were still going on—there had been no rejection or refusal to discuss this matter. In addition Mr. Mikoyan had been informed that the American Government was continuing its studies on post war credit arrangements. Mr. Mikoyan stated that he had hoped that the Soviet Government would be given notice in advance concerning the cessation of shipments. If the United States desired to stop shipments he expected that before doing so the two sides might get together and work out some kind of a modus vivendi to cover the intermediary period. Mr. Mikoyan stated that the very good collaboration, insofar as supplies were concerned, that existed during the war gave him reason to believe that a way could be found to handle Lend-Lease shipments upon the termination of hostilities and thus to wind up a good job. He expressed gratitude for the assistance rendered the Soviet Union under Lend-Lease.
The Ambassador stated that perhaps Mr. Mikoyan did not understand the functioning of the American Government. The American Government was not run by administrative decisions but by authority from Congress. No action could be taken except under the authority from Congress. The Ambassador continued that he could not accept Mr. Mikoyan’s statement that the Soviet Government had not been advised in good time as to the present situation. American officials had repeatedly explained to the Russian authorities how Lend-Lease would terminate upon cessation of hostilities. This was necessitated by law—by Congress. Definite suggestions had been made to cover the present situation. Mr. Acheson and Mr. Stepanov had discussed the matter for over six months. The American Government had made as great concessions as it possibly could to meet the wishes of the Soviet Government. Before the end of last year the Soviet Government was informed that the maximum concessions had been offered to it and that this was the final offer. In addition the difficulties which would arise if the American proposals were not accepted were pointed out. The Ambassador stated that the Soviet Government had of course the right to accept or decline the American proposals. However, the present situation had been fully explained and the American Government could not be blamed for the difficulties that have arisen. Soviet officials had been informed that the American authorities were giving consideration to the question of postwar credits. It was possible that arrangements would be made in the near future but Congressional authority must first be obtained. That would cause delay. The Ambassador concluded that he “simply could not accept any intimation that his Government had not acted in the best of faith and had not made every effort to reach agreement with the Soviet Government on this question. If the present situation was not satisfactory to the Soviet Union it was the Soviet Union’s own doing.”
[Page 1021]Mr. Mikoyan stated that he could not agree with what Mr. Harriman had said and added that there would seem to have been some change in the situation since the Crimea Conference. For example, up to April the United States authorities had stated that they wished to obtain the Soviet requirements under the Fifth Protocol. They knew the war in Europe would shortly be over. This appeared to be proof to Mr. Mikoyan that neither the American nor Soviet authorities at that time contemplated the cessation of Lend-Lease shipments with the end of hostilities in Europe. The Soviet Government could not understand how the United States would decide to stop shipments without attempting to reach an agreement on the matter. During the war both sides had always been successful in reaching agreements because there was good will on both sides.
The Ambassador stated that Mr. Mikoyan was evidently laboring under a complete misunderstanding. He said that he regretted that Mr. Mikoyan felt that the United States Government had not been fair in this matter and again pointed out that Mr. Acheson, other officials of the American Government as well as he himself had again and again explained the situation to Soviet authorities. He was unable to say any more at the present time, except to assure him that the American Government had tried to be as fair and frank as possible. He regretted that he was unable to find words to convince Mr. Mikoyan of the position of his Government. He could only state the facts.
Mr. Mikoyan stated that he did not claim to understand the workings of Congress and the United States Government. But he knew that they were institutions that would always find a satisfactory solution when the interests of the country so demanded. He concluded that he, too, was sorry that he was unable to convince Mr. Harriman of the Tightness of the Soviet position.
Mr. Harriman stated that Prime Minister Churchill had once said that no man could understand the politics of another country and few were wise enough to understand the politics of his own. So with Mr. Churchill’s advice he would not attempt to explain American politics as he was not sure that he was wise enough to know them himself.
Mr. Mikoyan agreed with good humor with the Ambassador’s remarks and the conversation, which had been somewhat strained, took an easier turn in the discussion of these matters.
- Copy transmitted to the Department in covering despatch 1824, June 22, from Moscow; received July 26.↩