Foreign Relations of the United States, 1948, Eastern Europe; The Soviet Union, Volume IV

611.6131/8–2548: Telegram

The Secretary of State to the Embassy in the Soviet Union

secret

Washington, September 3, 1948—7 p. m.

1066. Ur 1751 Aug 25.¹

1. Have sent you copy instructions to Harriman for negotiation Western Governments control of exports Soviet orbit.²

2. State representative in Europe to work with Harriman this project for brief period. Also instructed discuss further with Harriman and if possible with Emb London problem control shipments for U.S.S.R. stockpiling such items as tin, wool and rubber. British response in reply recent approach respect rubber was uncooperative.

3. Your suggestion consider effect denunciation commercial accord on manganese and chrome shipments appreciated. Will receive careful study here.

4. Data requested on status manganese and chrome programs will be sent you shortly.³

5. Have been discussing with Treasury steps to prevent Soviet securing dollars through sale gold. Have initiated discussion interdepartmentally similar problem of sterilization of dollars secured through Sov luxury exports.

6. Are also discussing interdepartmentally in preliminary way policy and administrative problems that would be involved if future developments should make it desirable put U.S. trade with Soviet orbit on government to government basis.

7. In general appreciate greatly warning contained in urtel. As plans take shape along lines mentioned above will be sent you for comment.

Marshall

1. Ante, p. 563.
2. The reference here is to telegram 3352, Torep 816, August 27, to Paris, supra.
3. The information on manganese and chrome ore programs was supplied in telegram 1065, September 3, to Moscow, not printed. The message stated that the metallurgical manganese ore position was not good (611.6131/8–2548). In a reply in telegram 1926, September 6, from Moscow, not printed, Ambassador Smith expressed alarm regarding the manganese ore situation and reiterated his opinion that top priority should be given to building up manganese reserve stocks and developing alternate sources in order to eliminate dependence on Soviet supplies (611.6131/9–948).