861.24/6–1245: Telegram
The Ambassador in the Soviet Union (Harriman) to the Secretary of State
[Received June 12—6:30 a.m.]
2017. ReDept’s 1208, June 2. My formal reply to Molotov’s aide-mémoire of January 3 made on June 9 referred to Under Secretary’s communication to Ambassador Gromyko February 2 informing Gromyko that proposals were receiving careful consideration but that Lend-Lease Act provided only legal basis then available under US law by which industrial equipment items could be offered and put into production on a credit basis. I stated that the Soviet Govt had at an earlier date been advised that draft agreement for proposed supplement to Lend-Lease Agreement including 3–c had been the final offer possible for the US to make and remarked that it had been a source of regret to my Govt that Soviet Govt had not considered it possible to accept this offer as this was only legal method under which my Govt after defeat of Germany could continue to furnish most of undelivered equipment ordered under Protocol.
I also reminded Molotov that Soviet Embassy Washington had been again informed on March 24 that Soviet proposals for postwar credits were being carefully studied; that they would have to be considered apart from Fourth Protocol and that action in pursuance to them would require legislation and in any case take considerable time to be effected.
I concluded that my Govt had asked me to call above to his attention in response to his verbal inquiry at our meeting on May 28 and also to inform him that my Govt was of definite opinion that long term postwar credits constituted an important element in postwar relations between our two countries; that the enactment of necessary legislation for an extension of long term credits for postwar projects was being actively pursued but that until it was enacted by Congress no agreement could be formalized with respect to such credits.