661.6431/3–546: Telegram
The Secretary of State to the Chargé in the Soviet Union ( Kennan )
us urgent
391. In connection with the deterioration of the economies of the satellite states and with particular reference to Dept’s request to Soviet Govt that talks be initiated in Budapest on economic situation in Hungary, Dept believes that another effort should be made to obtain from the Soviet Govt the texts of all economic agreements, including supplementary contracts and arrangements, which Soviet Govt or its economic organizations have made with satellite states.
You are requested therefore to address a note to Soviet Govt41 referring to the several requests already made for this information. You should inform Soviet Govt that it has come to attention of US Govt that special agreements implementing the Soviet-Hungarian agreement on economic collaboration are being concluded between Soviet Govt and its economic organizations and Govt of Hungary. It appears that some of these agreements establish joint Soviet-Hungarian [Page 270] companies in various sectors of Hungarian economy, e.g., the bauxite aluminum industry, navigation, aviation, oil, etc. US Govt of course recognizes that close economic relations generally develop between friendly neighboring countries and anticipates growth of such relations between Soviet Union and Hungary. Concern is occasioned in this instance, however, by reports that these joint companies are being granted monopolistic rights and special privileges not extended to other companies. These developments are difficult to reconcile with Mr. Vyshinski’s statement that the agreement on economic collaboration “contains no element of discrimination against third countries”.42 Joint companies with such rights and privileges would exclude the possibility of equal opportunity to participate in economic life and development of Eastern European countries and can be said to discriminate against third countries.
You should also point out that unsuccessful efforts have been made to obtain the text of these agreements by American representatives on the Allied Control Commissions and add that refusal to make such information available is contrary to the understanding which resulted in the establishment of the Allied Control Commissions and the agreements reached at Yalta.
In conclusion, you should state US Govt has noted Soviet Govt’s view that these various agreements do not limit commercial opportunities or discriminate against other countries, but in the absence of information regarding the terms of the agreements and their implementation, US Govt is not able to determine whether it could make the same interpretation of the facts. US Govt is therefore obliged to request, as a signatory to the armistice arrangements, that Soviet Govt furnish immediately texts of following agreements, including supplementary contracts and arrangements, to which USSR or its economic organizations are a party:
Rumania: Trade and economic collaboration agreements signed Moscow, May 8, 1945.
Hungary: Trade and economic collaboration agreements signed Moscow, Aug. 27, 1945.
Bulgaria: Trade agreement signed Moscow, March 14, 1945.
- On March 7, 1946, Kennan addressed a letter to Vyshinsky in the sense of the instructions contained in this telegram.↩
- The quotation is from a note of October 31, 1945, from Andrey Yanuaryevich Vyshinsky, Assistant People’s Commissar for Foreign Affairs of the Soviet Union, to Ambassador Harriman. The note, which rejected a proposal for tripartite consideration of issues raised by the Soviet-Hungarian economic agreement, is paraphrased in telegram 3735, November 2, 1945, from Moscow, Foreign Relations, 1945, vol. iv, p. 901.↩