861.24/1–1746: Telegram

The Acting Secretary of State to the Secretary of State, at London80

secret   niact

520. For the Secretary from Acheson. Representatives of the USSR have inquired as to the credit terms available to them for purchase of U.S. surplus property abroad.

If you approve the Dept would reply that it is willing to sell to the USSR up to a maximum of 100 million dollars of U.S. surplus property abroad on credit terms which are identical with those contained in the 3(c) Lend-Lease agreement with the USSR,81 with interest at 2⅜ percent and principal payments to begin after 8 years.

It would be made clear to the USSR that no allocation of surplus of this amount is to be made and that the 100 million dollar maximum is only an upper limit on the amount they can buy if they can find surplus which they want up to this amount.

May we know your wishes on the proposal and on whether we should negotiate on any other questions with the USSR in connection with this transaction.82

  1. Secretary of State James F. Byrnes was in London attending the sessions of the United Nations. This telegram was repeated to Moscow as 93.
  2. For text of the agreement relating to the disposition of lend-lease supplies in inventory or procurement in the United States (the “Pipeline” agreement), signed at Washington on October 15, 1945, see United States Treaties and Other International Acts Series (TIAS) No. 3662, or United States Treaties and Other International Agreements (UST), vol. 7, (pt. 3), p. 2819.
  3. The Secretary, in telegram 677, January 19, 1946, 3 p.m., from London, gave approval to this proposed credit arrangement for purchase by the Soviet Union of United States surplus property abroad. He also wished to know what other questions the Acting Secretary had in mind which should be negotiated with the Soviet Union in connection with this transaction. (861.24/1–1946)