701.0961/8–248: Telegram
The Ambassador in the Soviet Union (Smith) to the Secretary of State
1504. While no official notice as yet received from Foreign Office, Soviet customs administration has notified Embassy orally Soviet decision grant additional customs exemption quota 300,000 rubles for calendar year 1948 and demanded we immediately proceed remove goods from customs warehouse or ship out of country. Additional quota plus unused balance 250,000 rubles remaining seems enough, according our best estimates, cover most goods now in customs with exception of order belonging MA consisting mostly of blank paper and supplies on which duty is exorbitant (estimated duty on latter alone is 675,000 rubles which is far beyond quota now available). MA states further that these supplies were ordered long ago in anticipation of expansion instead of contraction and are not now needed since six months to year’s stock now on hand.
I therefore propose to ship these supplies as well as a small quantity of unessential State Department supplies to Helsinki for storage and redistribution to other offices or eventual re-forwarding to Moscow, as need arises, either by courier or incoming personnel with laissez-passer, or under next year’s quota. The remaining goods I shall start clearing immediately in accordance, so far as possible, with following plan: (a) general priority to articles of large bulk relative to value; (b) specific priorities as follows: (1) essential official supplies, (2) commissary staples, (3) private shipments (mostly potables for which equitable distribution scheme is being worked out), (4) commissary de luxe items.
Although impossible estimate with accuracy duties to be charged against quota, we are working on basis following: (1) essential official supplies: 105,000 rubles; (2) commissary staples: 365,000; (3) private shipments 70,000 rubles; (4) emergency quota retained 10,000.
[Page 909]While it is estimated that the quota of 550,000 rubles will approximately cover goods remaining in customs, with possible exception category (4), any goods remaining after the quota has been exhausted (except for small quota retained for emergency shipments during balance calendar year) will also be shipped Helsinki for storage and possible reforwarding.
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Same complex problems should not arise again, if, as we must assume, customs quota granted for 1949 same as total now granted 1948. In future we will be able carefully estimate requirements and institute appropriate regulations controling commissary and private shipments in order to ensure optimum use quota.
While going ahead with clearance goods, we are attempting get formal confirmation from Foreign Office and shall continue to press for broader interpretation “official supplies” as well as for authorization for individual staff members to import outside Embassy quota against payment of duty.