861.24/6–1246: Telegram

The Secretary of State to the Ambassador in the Soviet Union ( Smith )

secret

1067. From Hazard. Your 1767 June 5.27 No agreement yet reached on surplus property disposal to USSR. Principal difference is clause relating to expenses of Embassy for which USSR proposes restrictive provisions as to annual amounts of currency available and uses permitted. Delay also occasioned by inability to reach agreement on what specific surplus items meet Soviet specifications. European surpluses now nearly exhausted and Pacific area surpluses are principal source. Soviets request inspection tour of Pacific presenting security problems. Anticipate slow developments toward signature and deliveries.

Summary of May operations report following later. [Hazard.]

Byrnes
  1. Not printed.