761.56/6–1550

The Secretary of State to the Chargé of the Soviet Union ( Bazykin )

Sir: I refer to your note of September 30, 1949 concerning the obligation of your Government to compensate United States patent holders under Article IV of the Master Lend-Lease Agreement of June 11, 1942, which was the subject of this Government’s communications of October 12, 1948 and August 8, 1949.1

This Government finds it necessary again to remind the Soviet Government of its obligation, clearly stated in Article IV of the Master Lead-Lease Agreement which provides that the Soviet Government will take action or make the payments required to protect United States patent holders when requested to do so by the President of the United States. The request by the President was duly made known to, your Government in this Government’s note of October 12, 1948.

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The Government of the United States has noted with satisfaction the Soviet note of September 30, 1949 which informed this Government of the readiness of the Soviet Government to continue negotiations with interested United States firms with respect to the compensation to be paid for the use of their patented processes in the Union of Soviet Socialist Republics.

In connection with the Statement in your note of September 30, 1949, however, that the Government of the United States has taken the position that agreements with the patent holders should not come into effect until a joint agreement was reached for the settlement of lend-lease accounts, it must be pointed out that this Government has at all times held to the position that under Article IV the Soviet Government was clearly obligated to reach agreements with United States patent holders immediately upon a request by the President of the United States.

The Government of the United States has also taken note of the conclusion of an agreement with Max B. Miller & Co., Inc. However, since the conclusion of this agreement there have been no indications of Soviet efforts to conclude agreements with the other six patent holders; quite to the contrary, two firms experiencing prolonged delay in receiving compensation from the Soviet Government under Article IV of the Master Lead-Lease Agreement, have resorted to the entry of suit against the Government of the United States in an effort to collect the compensation which they consider due them. It becomes necessary, therefore, to observe that the expressed intentions of the Soviet Government bear no correspondence to its acts. Until such time as the Government of the Union of Soviet Socialist Republics enters into serious negotiations with the remaining six United States patent holders and provides adequate compensation for their patented processes, there can be no alternative but to regard the Soviet Government in clear default of its obligation under Article IV of the Master Lend-Lease Agreement.

The Government of the United States cannot understand the reasons which have caused the Government of the Union of Soviet Socialist Republics to avoid compensating the six United States patent holders. It is, therefore, requested that the Soviet Government immediately make available to the Government of the United States a detailed statement of the reasons for the failure of the Government of the Union of Soviet Socialist Republics to meet its obligation under Article IV of the Agreement of June 11, 1942.

Accept [etc.]

For the Secretary of State:
James E. Webb