861.24/9–2849
The Acting Secretary of State to the Secretary of the Navy (Matthews)
My Dear Mr. Secretary: On September 27, 1949 representatives of the Soviet Government agreed on procedures implementing the return to United States custody of three icebreakers and twenty-seven frigates of the United States Navy which were transferred to the Soviet Government under the Lend-Lease Act. The icebreakers are to be returned to the United States Naval Commander at the port of Bremerhaven, Germany and the frigates at Yokosuka, Japan all before December 1, 1949.
Article V of the Soviet Master-Lend-Lease Agreement of June 11, 1942 which provides for the return to the United States of Lend-Lease articles obligates the Soviets to return such articles as are determined by the President of the United States “to be useful in the defense of the United States of America or of the Western Hemisphere or to be otherwise of use to the United States of America”. This language has [Page 741] been construed by the United States Government as clearly permitting disposal of any returned articles in any manner considered useful to the United States, including retransfer to third Governments. In the negotiations for the return of Naval craft, however, the Soviet Government took the position in agreeing to the return of the icebreakers and frigates that it proceeds on the assumption that these vessels are needed by the Government of the United States itself and that this Government does not propose to sell or transfer them and that accordingly no discrimination against the Soviet Union occurs. In reply the Soviet Government was advised of the position of this Government that the return of articles under the terms of Article V is not dependent upon the use of such articles to be made by the Government of the United States. The Soviets, however, maintained their position stating that the United States position does not accord with the provisions of the Master Agreement which provide for the safeguarding of the interests of both parties.
In conversations with the Soviet Ambassador on June 13 and June 20 in which the return of Naval craft was pressed forcefully, the Soviet Ambassador adhered steadfastly to the position stated above and added that the Soviet Government was not indifferent to the use to which returned military articles would be put. In these circumstances, the Ambassador was informed that Article V of the Master Agreement was perfectly clear as to the rights of the United States with respect to the use it made of returned articles. In order that this factor might not be used by the Soviets as an excuse for not returning the vessels, however, the Ambassador was told that the United States did not in fact intend to dispose of these vessels.
The only specific rights of the United States with respect to the return of Lend-Lease Articles transferred to the Soviet Government are those stated in Article V of the Master Agreement which requires the return of articles of use to the United States. In our endeavors to reach an over-all settlement agreement with the Soviet Government on the basis of the provisions of the Master Agreement, we have reserved our rights under Article V to demand the return of all Naval craft, all merchant vessels and such other Lend-Lease articles as the United States may designate if a satisfactory settlement is not concluded promptly.
It is clear that the return of additional Naval craft and progress toward the conclusion of an over-all lend-lease settlement agreement may be prejudiced if the Soviet Government should learn that the vessels which have been returned have subsequently been disposed of by the United States. It is, therefore, requested that the Department of the Navy consult with the Department of State before taking steps toward or making any commitment respecting the disposal, transfer [Page 742] to or use by a third country of any lend-lease Naval craft returned to the United States by the Soviet Government.
Sincerely yours,