861.24/6–2645
The Acting Secretary of State to the Chargé of the Soviet Union (Novikov)85
Sir: The statement of the lend-lease requirements of the Soviet Government that you transmitted, with a covering note of May 30, 1945,84 is being carefully studied by the United States Government in the light of the principles of lend-lease aid to the Soviet Union that were explained in my note of May 12, 1945. As soon as possible you will be advised as to the action of this Government as regards this statement of requirements.
I wish, however, to advise you now that as regards Note One at the end of your list of requirements, every effort is being made to supply the materials included in the October 17, 1944 program86 and that programs have been approved for the Arctic Region, Aviatrassa, Dalstroi, Narkomribprom, Sakhalin, Petropavlovsk and Soviet Harbor. These programs, which contain substantial quantities of machinery and equipment, have been approved on the basis of being in direct support of the October 17, 1944 program. The food and petroleum products requested in the Norilstroy Program are also being made available.
With reference to your request for machinery and equipment ordered under the Fourth Protocol, and undelivered as of July 1, 1945, and the additional items included in II (Machinery and Equipment) of your statement of requirements of May 30, I wish further to call your attention to the principles set forth in my note of May 12, 1945 that the delivery of supplies on lend-lease terms must be justified on the basis of adequate information regarding the essentiality of Soviet [Page 1028] military supply requirements and in the light of competing demands for such supplies in the changed military situation. In the absence of adequate justification, the United States Government cannot supply on lend-lease terms any undelivered machinery and equipment ordered under the Fourth Protocol, or the items listed in II (Machinery and Equipment) in your note of May 30. In general, the future supply on lend-lease terms of machinery and equipment, in addition to that included in the approved programs mentioned in paragraph 2 above, will be limited to the items required in connection with field operations of Soviet forces.
Consequently, in the absence of an undertaking by the Soviet Government to purchase such undelivered machinery and equipment ordered under the Fourth Protocol as is in excess of that referred to above as eligible for lend-lease, the United States Government feels that it can no longer make the expenditures necessary to continue to produce or to hold this undelivered machinery and equipment. Accordingly, we are taking steps to protect the interests of the United States by diverting machinery and equipment to other requirements and by cancellation in cases where other requirements do not exist. Since these plans are well under way it is urgent that we be informed promptly if you wish to purchase any of this machinery and equipment. I am informed that much of this machinery and equipment can be delivered to your Government if you decide promptly to accept delivery under the terms transmitted to the Chairman of the Government Purchasing Commission of the Soviet Union in the U.S.A. by the Foreign Economic Administrator, who is responsible for the distribution of this machinery and equipment.
As regards undelivered portions of plants the Foreign Economic Administrator has written to the Chairman of the Soviet Government Purchasing Commission asking to be advised whether the Soviet Government wishes to accept further deliveries of certain plants on which proportionately small shipments have been made, upon cash payment by the Soviet Government of the total cost of the plants including the cost of any licenses under applicable patents. A prompt reply would be appreciated in order that this matter may be settled.
Accept [etc.]