761.56/11–2450

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

Sir: I refer to Mr. Bazykin’s note of November 24, 1950 concerning the obligations of your Government arising from the Master Lend-Lease Agreement of June 11, 1942.

The $240 million offer of your Government for an over-all settlement of its lend-lease account does not meet the United States Government’s conception of a reasonable offer. The Government of the United States, however, in furtherance of its efforts to bring these protracted lend-lease negotiations to a prompt conclusion, continues willing to resume negotiations with a view to reaching a mutally acceptable settlement.

With regard to the question of naval vessels which were leased to the Soviet Government, the Government of the United States continues ready to resume discussions between naval experts in conjunction with the over-all settlement negotiations. However, in the note of November 24 it was stated that the Government of the Union of Soviet Socialist Republics agreed to the resumption of talks by naval experts in Washington, “proceeding on the basis that these experts will discuss the conditions of the sale of these naval vessels to the Soviet Union, concerning which the United States Government has previously expressed its agreement”. It will be recalled that the Government [Page 1327] of the United States, in its note dated September 3, 1948,1 expressed its agreement to the sale of certain naval vessels as part of a prompt over-all settlement and demanded that the Soviet Union, in accordance with its obligation under Article V of the Agreement of June 11, 1942, promptly return to the United States certain other naval vessels. Therefore, it is expected that the forthcoming discussions between naval experts will deal with the disposition to be made of all naval vessels leased to the Soviet Government in the light of the provisions of Article V of the Agreement of June 11, 1942.

The Government of the United States takes note of the statement of the Soviet Government concerning negotiations between the Soviet Purchasing Commission in the United States and two United States patent holders for compensation for the use of their patented processes in lend-lease oil refineries in the Soviet Union. This Government expects that the Soviet Government will proceed promptly to discharge its obligations, under Article IV of the Agreement of June 11, 1942, to all the American claimant companies.

The Government of the United States, as stated above is ready to resume negotiations. However, January 15 would be more convenient than the December 20 date proposed in Mr. Bazykin’s note of November 24. Representatives of the United States Government, therefore, will be prepared to meet with representatives of the Union of Soviet Socialist Republics on January 15.2

Accept [etc.]

For the Secretary of State:
James E. Webb
  1. As originally sent to the Embassy of the Soviet Union the date of the note here referred to was given as “October 7, 1948.” This mistake was corrected and the proper date of “September 3, 1948” was substituted in a telephone message to the Embassy on December 14, 1950, and was also confirmed in a written note of the same day.
  2. The substance of this note was sent for the information of the Embassy in the Soviet Union in telegram 420 on December 15, 1950. (761.56/11–2450)