103.9169/8–3145: Telegram
The Secretary of State to the Ambassador in the Soviet Union (Harriman)
1935. From FEA—Crowley. Your 3054 August 25. Soviet Government through General Rudenko on August 28 requested credit of [Page 1037] $400,000,000 to cover Lend-Lease material on hand or on order in the U. S., lists to be submitted subsequently. They offer repayment at 2⅜ per cent interest and amortization beginning ninth year at 2½ percent for first 4 years, 3½ percent for second 4 years, 4½ percent for third 4 years, 5½ Per cent for fourth 4 years and 6 per cent for last 6 years. They also request that actual warehouse and transportation charges, rather than a percentage figure, be used in this transaction. They also request a discount of 10 percent from the contract price of the goods in question. They have been advised that the interest rate and amortization terms are probably acceptable but that no reply can be given as yet on the requested discount until clarification of the amounts and types of commodities to be sold is obtained.
It is contemplated that this proposed sale of Lend-Lease goods on hand and on order would take place under the Lend-Lease Act.
Soviet Government through General Rudenko has also requested an Export-Import Bank credit of $1,000,000,000 for new purchases of additional material on interest and amortization terms identical to those requested on the Lend-Lease material. They have been advised that the interest rate at the Export-Import Bank must be uniform for all countries and that a rate of 3 percent, together with their proposed amortization terms, will be recommended to the Board of the Bank.
The Lend-Lease goods which they desire to obtain are informally understood to include among others, industrial equipment, locomotives, food, rails, pipe and steel. [Crowley.]