711.61/8–849: Telegram
The Secretary of State to the Embassy in the Soviet Union
567. Lend-lease (Deptel 544, Aug. I1) being a matter strictly between our two govts might well be raised specifically by you. In this connection you may state that prompt resolution of lend-lease issues wld definitely contribute to more friendly relations between our two govts, particularly in view of widespread interest of US public in this subj.
With respect to return of Naval craft you may state it is hope of US Govt that recent appt of Sov experts to arrange details of return of the three icebreakers and 28 frigates is an indication that prompt action will now be taken with respect to all the Naval craft specified by US for return under Art V of Agreement of June 11, 1942. You might add that this particular aspect of lend-lease matters is considered by US Govt as particularly urgent in that Sov commitments with respect to return of lend-lease articles are clearly and unequivocally stated in Art V of the agreement between our two govts concluded on June 11, 1942 and many months (three years in the case of the icebreakers) have passed without necessary actions being taken.
Stalin may be told that obligations of Sov Govt to compensate US firms for use of their patented processes supplied under lend-lease are clearly and specifically set forth in Art IV of Agreement of June 11, 1942. You may state that agreements between Sov Govt and patent holders have been long delayed and there have been no indications that Sov Govt is taking necessary action to conclude this matter. You may state also that Sov Govt was informed of detailed requirements in this respect before processes were delivered to Sov Govt during war and US Govt cannot understand why necessary action has not yet been taken.
As to the over-all settlement, you may point out that principles upon which US proposals are based are those used in settlement agreements already concluded with the other major lend-lease recipients. You may state that amt of over-all settlement proposed by US in note recently transmitted to SovAmb Panyushkin in Washington, i.e. one [Page 722] billion dols, is considered fair and reasonable valuation of remaining “civilian-type” articles having peacetime utility to Sov Union. US, in keeping with spirt of agreement of June 11, 1942 asks no payment for lend-lease assistance expended in war effort and moreover asks no payment for remaining combat-type articles to be retained by Sov Union in the settlement.
At this point you may choose to add that under arrangements between himself and President Roosevelt in Oct–Nov 1941 Stalin agreed to pay one billion dols without interest within fifteen years after end of war, this amt representing full cost of total aid then contemplated.2 It shld be mentioned in this connection that although this agreement was superseded by agreement of June 11, 1942 it has significance as an indication of the reasonableness of present US settlement proposal, since it wld have required full payment for all lend-lease assistance furnished thereunder, while in the present circumstances US is asking payment in an amt equal to less than one-tenth of value of total aid provided.
In leaving this subj you may state it is urgent hope of US Govt that the recent proposals made by the US may serve as basis for prompt and mutually satisfactory over-all settlement.
(Texts of our recent notes to Amb Panyushkin on subj of patents and over-all settlement are being forwarded by separate cable.3)
- Ante, p. 635. This telegram advised Ambassador Kirk that instructions would be coming to him for guidance in connection with the prospective interview he might have with Generalissimo Iosif Vissarionovich Stalin, Chairman of the Council of Ministers of the Soviet Union. The interview did take place on the night of August 15. For documentation on this event, see pp. 634–654, passim.↩
- See footnote 3, p. 720.↩
- The two preceding notes of August 8, 1949, from the Secretary of State to Ambassador Panyushkin were sent to the Embassy in Moscow in telegram 568 at 5 p. m., on this same day.↩