103.9169: Telegram
The Secretary of State to the Ambassador in the Soviet Union (Harriman)
1877. From FEA Crowley [to] U.S.S.R. Deane for Spalding.
1. Supplementing Protocol Committee’s report on termination action included in War 50599 dated August 17,92 following is sent for your general information:
2. President on 18 August approved general policy for all countries as follows: (a) No new contracts will be entered into for goods to be furnished under Lend-Lease except for such items as the Joint Chiefs of Staff may approve for payment out of military appropriations, (b) Countries with which 3(c) agreements are in effect will take and pay for goods involved in contracts yet to be completed, goods awaiting shipment, those in transit, and inventories abroad, (c) Countries which have not entered into 3(c) agreements may obtain goods now in process of manufacture, in storage, awaiting shipment, being shipped, or in inventory abroad, upon their agreement to pay for them on such terms as may be determined by this Government, and (d) All uncompleted contracts for goods not to be delivered under (b) and (c) above shall be immediately reviewed to determine whether their completion would [Page 1032] be in the best interest of the U.S. Government and, unless so determined, such contracts will be cancelled.
3. In notifying General Rudenko on 20 August, the following letter was sent as to FEA items:
“In view of the termination of hostilities, the Foreign Economic Administration is desirous of entering into discussions and negotiations immediately with you relating to the discontinuance of its lend-lease aid to your government in an expeditious manner which will best promote the mutual interests of our respective governments and which will be consistent with the provisions of the Lend-Lease Act. I suggest in connection with such discussions and negotiations with respect to the lend-lease programs undertaken by the Foreign Economic Administration that the following general principles should apply: (a) No new contracts should be entered into for goods or services to be furnished on lend-lease terms. (b) Supplies which are now in the process of manufacture, in storage, awaiting shipment, or not yet transferred to your government, and services within presently agreed programs, may be obtained by your country to the extent that they are available against payment on appropriate terms and conditions. We also desire to discuss with you the amount and the terms and conditions of payment for existing lend-lease supplies which are in shipment or in inventory under the control of the U.S.S.R.”
4. Discussions referred to will take place in Washington. You will be advised of progress. Meanwhile advise us of any considerations you believe necessary in preparing for discussions and advise as to possibilities of estimating inventory under control of U.S.S.R. [Crowley.]
- Text of President Truman’s directive of August 17 terminating Lend-Lease is included in telegram 7012, August 18, 4 p.m., to London, vol. vi , first section under United Kingdom. For subsequent modification of a portion, see telegram 7056, August 20, 6 p.m., to London, ibid . See also memorandum of August 21, infra.↩