The Acting Secretary of State to the Ambassador of the Soviet Union ( Panyushkin )
Excellency: I have the honor to refer to the conversations and communications between representatives of our two Governments in connection with the compensation of United States nationals for the use of their patented processes in the oil refineries supplied to your Government under the Lend-Lease Act and particularly to Section VI of this Government’s note of September 3, 1948 wherein it was stated that this Government expects that prompt settlements with United States patent holders will now be accomplished in fulfillment of the obligations of your Government pursuant to the Master Lend-Lease Agreement between our two Governments, i.e., the “Agreement between the United States of America and the Union of Soviet Socialist Republics on the principles applying to mutual aid in the prosecution of the War against aggression” concluded on June 11, 1942. No [Page 1017] response to this Government’s note of September 3, 1948 has yet been received.
Article IV of the Master Lend-Lease Agreement provides as follows:
“If, as a result of the transfer to the Government of the Union of Soviet Socialist Republics of any defense article or defense information, it becomes necessary for that Government to take any action or make any payment in order fully to protect any of the rights of a citizen of the United States of America who has patent rights in and to any such defense article or information, the Government of the Union of Soviet Socialist Republics will take such action or make such payment when requested to do so by the President of the United States of America.”
In a letter dated June 8, 1943 to Major General A. I. Belyaev from Mr. E. R. Stettinius, Jr., Lend-Lease Administrator, and in a letter dated October 16, 1943 to Mr. K. I. Lukashev,1 from Mr. Bernhard Knollenberg, Acting Lend-Lease Administrator, your Government was advised that the Government of the United States had acquired licenses from certain United States firms for the use of their patented processes and technical information in the oil refineries supplied to your Government under the Lend-Lease Act, specifically Lend-Lease requisition R–4200, including requisitions supplementary thereto, and copies of these license agreements were enclosed. In these letters your Government was authorized under the terms of these licenses to use the processes covered by the licenses and the information supplied thereunder during the war and for war purposes in connection with the refineries supplied under requisition R–4200. Also in these letters, in order that the rights of United States nationals who have patent rights in and to the aforesaid processes and information might be protected, your Government was requested, under Article IV of the Master Agreement of June 11, 1942, not to use the processes or information except in accordance with the terms and conditions of the licenses and, secondly, not to use the processes or information after the termination of the present national emergency, as determined by the President of the United States, except upon compensation to the United States nationals who have patent rights in and to the processes or information.
In a letter dated February 10, 1947 from Mr. W. C. Moore2 to Mr. I. A. Eremin, confirmed by letter dated February 13, 19473 to Mr. Eremin from Mr. Chester T. Lane, Lend-Lease Administrator, your Government was advised that the Government of the United States would not avail itself of the options contained in the license agreements [Page 1018] with the United States patent holders to continue use of the processes beyond the periods specifically authorized by the licenses, and your Government was requested, pursuant to Article IV of the Master Lend-Lease Agreement, to make the necessary payments to the patent holders for continued use by your Government beyond such periods.
On July 7, 1948 the President of the United States determined that the emergency relative to the lend-lease program referred to in the provisions of the Master Lend-Lease Agreements had terminated. Furthermore, the periods of use authorized by the license agreements between the United States Government and the following process owners have now expired:
- Petrolite Corporation, Ltd.
- Stratford Development Corporation
- Universal Oil Products Company
- International Catalytic Oil Processes Corporation
- Houdry Process Corporation
The information contained in the Embassy’s note of June 24, 1948,4 as to dates of commencement of operations, indicates that the periods of use authorized by the license agreements between the United States Government and the following process owners will expire on or about March 1, 1950:
- Texaco Development Corporation
- Max B. Miller & Co., Inc.
By direction of the President of the United States, in accordance with Article IV of the Master Lend-Lease Agreement between our two Governments, I hereby request the Government of the Union of Soviet Socialist Republics to compensate on or before January 1, 1949 the five United States patent holders listed above, the licenses for use of whose processes have now expired. Similarly, I hereby request your Government to conclude agreements on or before January 1, 1949 to compensate the two United States patent holders listed above, the licenses for use of whose processes will expire on or about March 1, 1950, such compensation to be made not later than March 1, 1950. The compensation to be made to these patent holders should be for the continued use of their processes in the refineries supplied to your Government under lend-lease requisition R–4200 and requisitions supplementary thereto beyond the periods authorized in the license agreements between these firms and the Government of the United States. The terms and conditions of such compensation should be those set forth in Mr. Stettinius’ request of June 8, 1943, namely, “such terms and conditions of compensation to United States nationals who have patent rights in [Page 1019] and to the processes or information as shall be mutually agreed upon as fair and reasonable on the basis of use of the processes or information and in the light of the compensation to which such nationals would be entitled for similar use in this country by or on behalf of the Government of the United States.”
- Konstantin Ignatyevich Lukashev was Chairman of the Amtorg Trading Corporation and Vice Chairman of the Government Purchasing Commission of the Soviet Union in the United States.↩
- Not printed. Mr. William C. Moore was Director of the U.S.S.R. Division in the Office of the Foreign Liquidation Commissioner, Department of State.↩
- Not printed.↩
- Not printed.↩