Memorandum by the Deputy Director of the Office of European Affairs (Hickerson)1

I understand that we have not been successful in securing the support of Congressional leaders for legislation permitting the delivery to the USSR of the remaining material under the Lend-Lease pipe line agreement.

Since this material includes equipment necessary to the operation of oil refineries which have already been delivered, it is feared that such a default on our part will provide the USSR with possible grounds for questioning its obligation, in whole or in part, to make the payments provided for in the agreement. In addition, it may well embarrass us in placing the USSR in default for refusing to negotiate a settlement under the master agreement.

It is therefore suggested that a further and very strong effort be made to secure Congressional approval for permitting the completion of pipe line deliveries to the USSR.

J[ohn] D. H[ickerson]
  1. This memorandum was directed to William L. Clayton, Under Secretary of State for Economic Affairs.