961.53/8–1550

Memorandum of Conversation, by the Acting Officer in Charge of Economic Affairs in the Office of Eastern European Affairs (Truesdell)

secret

Mr. Truesdell advised Mr. Morse1 of the transmission to the Soviet Foreign Office on August 11 by Embassy Moscow of a note requesting the return to the United States of the U.S. merchant vessels the John Langdon and the Charles Gordon Curtis which were transferred to the Soviets under a special agreement relating to the disposition of the Italian fleet. Mr. Morse was given a copy of instruction No. 12 of July 28, 1950 to Ambassador Kirk in Moscow which contains the text of the note, also a copy of the statement concerning these two vessels which was forwarded as an attachment to the above mentioned instruction. Mr. Morse expressed his gratitude for this information and his pleasure that the matter had reached a conclusion. He said that as far as the Maritime Commission was concerned they considered these two vessels as being the responsibility of the Department of State as successor to the FEA and the Lend-Lease Administration. He said [Page 1313] that it was his understanding that these two vessels were, for Maritime Commission purposes, in the same category as other lend-lease vessels remaining in Soviet custody. Mr. Truesdell concurred with this view.

Mr. Morse was then asked certain specific questions concerning the possible return to the United States of the other 84 lend-lease merchant vessels still held by the Soviet Union. In connection with the possible usefulness of these vessels to the United States, Mr. Morse advised that at the present moment 2128 vessels are now in the United States Reserve Fleet, a large proportion of which are Liberty ships. He stated that 150 vessels, mainly Victories, had recently been withdrawn. He stated that the cost of placing a vessel in the Reserve Fleet amounted to $8 to $10,000. As to the usefulness of the pre-war built lend-lease vessels to the United States it was his opinion that these vessels would only serve a useful purpose in the United States as scrap and he mentioned the growing need for scrap in United States industries. He said that the war-built vessels and the Liberties would be of some use in the current merchant ship program. He advised that it would cost approximately $70 to $80,000 for the Maritime Commission to bring a ship back from a far eastern port but advised that the Maritime Commission would be in a position to bring them back if the Department of State made the arrangements with the Soviets for the return. It was his hope that the vessels could be returned to U.S. ports, if such were possible.

Comment was made by all concerned to the effect that merchant vessels in the hands of the Soviet Union would have little strategic value in the case of hostilities between the United States and the USSR. It was agreed, however, that these vessels undoubtedly were contributing to Soviet supply of North Korea.

Mr. Morse was advised that while the Department did not expect anything to materialize in connection with the return of the vessels in the near future, we were anxious to have the views of the Maritime Commission and the above information for possible future use.

G[eorge] E. T[ruesdell]
  1. Huntington T. Morse was special assistant to the Administrator of the United States Maritime Administration, Department of Commerce. Dr. Lehman Patton Nickell, as adviser on shipping in the Shipping Policy Staff of the Office of Transport and Communications, was also present during the conversation.