761.56/3–2150
The Chief of the Lend-Lease and Surplus Property Staff (Murphy) to the Special Assistant to the United States Maritime Commission, Department of Commerce (Morse)
My Dear Mr. Morse: Reference is made to your recent telephone conversation with Mr. George E. Truesdell1 in which you requested information concerning the Status of the current lend-lease discussions with the Government of the Union of Soviet Socialist Republics and particularly the negotiations pertaining to the disposition of the 84 lend-lease merchant vessels now remaining under the Soviet flag.
As you will recall, of the 125 merchant vessels transferred to the Soviets under the Master Lend-Lease Agreement, 25 were returned to the United States during the war and 4 were lost leaving a total of 96 vessels in Soviet custody on V–J Day.2 Since that time, however, a T–2 tanker which broke in two in February of 1946 has been returned to the United States, 3 pre-war built dry cargo vessels have been Reported lost, and 3 EC–2 tankers, 4 T–2 tankers and 1 old dry cargo vessel, the latter seized from the Italian Government and later returned to that Government, were returned to the United States at the request of this Government. Accordingly, our records indicate that a total of 84 merchant vessels how remain in Soviet custody as follows:
| 36 | war-built Liberty dry cargo vessels |
| 44 | old dry cargo vessels built in 1902–1920 |
| 1 | old tanker built in 1921 |
| 2 | war built tankers |
| 1 | old tug built in 1919 |
Negotiations are still under way with the Soviets for settlement of all aspects of the Master Lend-Lease Agreement. Several issues still remain to be settled before an overall settlement can be reached. As you know, the question of the disposition of the 84 merchant vessels is one of the subjects currently under discussion as part of the overall negotiations and their final disposition still depends upon the outcome of these negotiations. Agreement has been reached on some of the issues under discussion. As a result of the Department’s negotiations on the issue of the return of the U.S. Navy vessels, the Soviets have returned to the United States 27 Frigates and 1 Icebreaker (the remaining 2 Icebreakers to be returned in the late spring of this year).
With reference to the 2 Liberty ships, S.S. John Langdon and S.S. Charles Gordon Curtis, procured with lend-lease funds and loaned to the Soviet Government during the war in lieu of equivalent tonnage [Page 1286] of the Italian merchant fleet, the Department has undertaken a comprehensive investigation as to the status of these vessels and whether or not their return from the Soviet Government should be demanded. In order to determine the exact circumstances surrounding this case, it is necessary to go into the records of the original transaction by which the vessels were turned over to the Soviet Government and those concerning the disposition of the Italian merchant fleet under the Peace Treaty with Italy. As yet, the Department has not been able to obtain sufficient information to substantiate a final position in this matter. Until this work has been completed, it is suggested that you refer the inquirer to this Department should you be questioned concerning the status of these vessels.
Sincerely yours,