861.24/11–2945
Memorandum by Mr. John N. Hazard, Chairman, U.S.S.R. Working Group, United States Lend-Lease and Surplus Settlement Committee,20 to the Foreign Liquidation Commissioner (McCabe)
Subject: U.S.S.R. Position on General Lend-Lease Settlement
Rear Admiral Yakimov, Deputy Chairman of the Soviet Government Purchasing Commission, was discussing several matters with me yesterday. I used the occasion to mention informally the growing sentiment in Congress for a general settlement in the near future of the Lend-Lease obligations of the various countries. Admiral Yakimov’s reactions may be helpful to you in considering the problem of a general settlement with the U.S.S.R.
Admiral Yakimov explained that he did not feel that the majority of the people of the United States would expect a general settlement with the U.S.S.R. under which the U.S.S.R. would make a transfer of money, if the people were sufficiently well informed of the situation in the U.S.S.R. He recounted the losses of the U.S.S.R. in the war, pointing out in large measure the same figures which have been used in the joint indictment against the Axis criminals now on trial at Nurnberg.21 He said that under the circumstances the losses of the U.S.S.R. were suffered in the common cause and that he felt the American public would appreciate this fact if it were properly presented to them, even though it meant that no funds were to be requested of the U.S.S.R. for Lend-Lease aid.
Admiral Yakimov referred to President Roosevelt’s earlier statements to the effect that the Russians had already paid in blood for the Lend-Lease aid which they had received and said that he felt that these statements had been very favorably received at the time. I pointed out to him that since that time there has been a considerable discussion in Congress and in the newspapers about a settlement and that Mr. Crowley had written the U.S.S.R. asking for an inventory. [Page 1048] He said he had noted the discussion in the papers but that he had also noted in many of the papers that there was a discussion about a future war between the United States and the U.S.S.R. He said that this latter discussion of possible war was entirely irresponsible and he felt that the voices requesting a payment from the U.S.S.R. for Lend-Lease aid were equally unrepresentative. I pointed out that there is considerable discussion of the desirability of a settlement at least for the industrial equipment which has been transferred and will be of postwar use to the U.S.S.R., particularly when some persons anticipate that this very equipment will be used to manufacture goods which may appear in the international market in competition with American produce. He said it was absurd to think of any such competition because the Soviet shortages at home were so great that it would probably take from 30–40 years to meet them.
Admiral Yakimov concluded by saying that the opinions he expressed were solely his own and he did not know whether they were the opinions of his Government. It happened, however, that these same opinions, in less extensive form, have already been given as personal opinions by Mr. Eremin, another Deputy Chairman of the Purchasing Commission.
You may also be interested in the Admiral’s statement that the Soviet Government Purchasing Commission would move to New York during the first quarter of 1946 since it feels that the primary activity is now to be with American business and not with the Government.
- This Committee was established November 16, 1945. Mr. Hazard had been with the Foreign Economic Administration, but, in accordance with Executive Order 9630 of September 27, FEA had been terminated and the Office of Foreign Liquidation in the Department of State had been established to take action on the continuing functions pertaining to lend-lease obligations, among other duties. Thomas B. McCabe became Foreign Liquidation Commissioner and also Special Assistant to the Secretary of State.↩
- For the indictment presented to the International Military Tribunal sitting at Berlin on October 18, 1945, see Department of State, Trial of War Criminals. Documents: 1. Report of Robert H. Jackson to the President. 2. Agreement establishing an International Military Tribunal. 3. Indictment (Washington, Government Printing Office, 1945), pp. 23 ff.↩