861.24/11–848

The Director of the Office of Financial and Development Policy ( Knapp ) to the Chief of the Division of Supply, United States Maritime Commission ( Steffes )

My Dear Mr. Steffes: It had been the understanding of this Department and, I believe, also of the Maritime Commission that, as of December 31, 1946, no lend-lease goods procured by the Maritime Commission out of lend-lease funds appropriated to the President remained for delivery to the Soviet Union. I am now advised, however, that there have come to light a few such items which were included for delivery to the Soviet Government under the post-war Lend-Lease Agreement of October 15, 1945, but have not as yet been transferred to the custody of the Soviet Government.

In accordance with the terms and intent of the Supplemental Appropriation Act, Public Law 271, 80th Congress, approved July 30, 1947, and the Third Deficiency Appropriation Act, 1946, Public Law 521, 80th Congress, approved July 23, 1946, such items should not now be released for shipment to the Soviet Union.

The Maritime Commission should take immediate steps to dispose of all such articles, whether now in storage or to become available under existing contracts. The disposal, hereby authorized, should be accomplished in a manner that will best serve the interests of the United States, either as surplus or in fulfillment of some requirement of this Government.

Sincerely yours,

For the Acting Secretary of State:
J. Burke Knapp