Foreign Relations of the United States, 1946, Eastern Europe, The Soviet Union, Volume VI

861.24/1–1946: Telegram

The Acting Secretary of State to the Secretary of State, at London⁸⁸

secret

Washington, January 22, 1946—5 p.m.

686. For the Secretary from Acheson. Reurtel 677, January 19.⁸⁹ I repeat Harriman’s reply re sale of surplus to U.S.S.R.

[Here follows text of telegram 184, January 19, 4 p.m., from Moscow, page 820.]

I agree, of course, with Harriman’s general analysis with respect to economic arrangements with the U.S.S.R. I question whether surplus property disposal is an apt case. I recall your conversation with Messrs. Clayton,⁹⁰ McCabe⁹¹ and myself after signing the British arrangement in which you indicated the most important thing was to get rid of surplus as quickly as possible and get it off our hands, also your desire not to raise at this time the question of a loan through Eximbank to the Soviets. In view of the extremely difficult nature of the problem of surplus disposal throughout the world and of the pressure by the Army to be relieved of the necessity of guarding and otherwise taking care of U. S. property abroad so that the troops may come home, foreign governments, including the Soviets, know that we are at a tactical disadvantage in the sale of surplus which increases with the passage of time. Therefore I believe that surplus property is the poorest type of economic arrangement with the Soviets to which to attempt to tie satisfaction of any or all of our own desiderata. They would, I think, want to tie in a loan to such broad negotiations.

I did not have any specific problems in mind and my reference in Deptel 520, January 17, to other questions was merely to give you an opportunity to instruct us. Perhaps you would wish to consult Bohlen.⁹² As I see it the question is whether or not we wish to sell to the Soviets who apparently want to buy.

Please indicate to me and Harriman whether you agree with the views above so that McCabe can take appropriate action.

Acheson

88. Repeated to Moscow as No. 120.
89. Not printed; but see footnote, 82, p. 819.
90. William L. Clayton, Assistant Secretary of State for Economic Affairs.
91. Thomas B. McCabe, Special Assistant to the Secretary of State and Foreign Liquidation Commissioner.
92. Charles E. Bohlen, Assistant to the Secretary of State.