895.6463/7–2148: Telegram
The Ambassador in the Soviet Union (Smith) to the Secretary of State
1384. Following translation substance note received today from FonOff dated July 20, signed Vyshinski:1
Re your letter of June 26 to FonMin USSR V. M. Molotov about question of supply to South Korea of electric power I draw your attention to exchange of correspondence on this question between Soviet commander North Korea and American commander South Korea.
Soviet commander in letter on March 16, 1948 asserted that agreement June 17, 1947 on form and dates payment of electric energy supplied South Korea during period from August 16, 1945 to May 31, 1947 was not fulfilled by American command. On March 15, 1948 there was applied on account in payment for specified electric energy by American command a sum in goods amounting to only 15.6 percent of the cost of this electric power. As regards electric power furnished [Page 1253] South Korea after May 31, 1947 the American command displayed no desire whatsoever comply with corresponding agreement re settlement for this electric power.
Concerning this Soviet commander notified American commander that Soviet military command North Korea cannot perform function as mediator between American command and People’s Committee North Korea in matter of delivery electric power to South Korea. Since electric power stations, as all nationalized industries North Korea, are under direction People’s Committee North Korea, Soviet commander stated that further negotiations re electric power should be conducted directly with People’s Committee.
In letter July 13 Soviet commander pointed out that suspension of supply electric power to South Korea was carried out solely because American command had not fulfilled agreement with regard settlement for electric power. During several months previous to suspension of power supply, People’s Committee North Korea repeatedly warned American command of necessity liquidate its debt for electric power and fulfill agreement with regard electric power in future. People’s Committee also warned that if contrary occurred, it would find it necessary cut off supply of electric power to South Korea.
In answer to statement of American commander contained his letter April 27 to effect he did not recognize authority of People’s Committee, Soviet commander pointed out that such a statement could not be recognized as in any sense convincing explanation of failure to pay stated sum for use of electric power.
In letter June 26 which contained answer to letter of American commander of June 12, Soviet commander informed American commander to effect that according information from People’s Committee North Korea, latter was prepared immediately to resume supply electric power to South Korea as soon as American command paid debt for electric power received by it in period August 16, 1945 to June 1, 1947. As pointed out in this letter, People’s Committee, taking note of statement of American commander that previously designated goods for payment of electric power were in warehouses in Seoul awaiting shipment to North Korea, agreed send to Seoul its representatives to receive specified goods. Re proposal of American commander for negotiations on question electric power Soviet commander pointed out that suggestion for opening such negotiations had been given American command by People’s Committee North Korea as early as March of this year.
Therefore, regulation question of electric power depends completely upon American command South Korea.
Sent Department as 1384; Department pass Seoul 15.2