611.6131/591: Telegram
The Chargé in the Soviet Union (Thurston) to the Secretary of State
[Received 9:05 p.m.]
954. Dickerson69 and I were received by Mikoyan this evening and I presented to him a paraphrase of the confidential portions of the Department’s 405, August 1, 5 p.m.
As to the substitution of the second paragraph of draft (c), Mikoyan stated that as he understood it from its oral translation, it is apparently acceptable. With respect to drafts (b) and (d), however, he stated that what is wanted is a practical solution not merely a general discussion and he queried how we could trade if these problems were not solved. He also asked where and when the suggested discussions might take place. To his second question I replied that although the Department had given no indication of its plans in this respect I assumed that the discussions could take place according to his wishes either in Moscow or Washington and at once.
Mikoyan then stated that he was naturally not satisfied with the answer of the American Government which he construed to mean that what it desired was merely the maintenance of the status quo and that it did not wish to take the trouble to endeavor to solve the problems [Page 453] posed by the Soviet draft proposals. He added hastily, however, that he would think the matter over, consult his Government and let me know its decision.
I said that I was glad he was not making a final decision now as I was compelled to disagree with him thinking him mistaken in the view he had expressed. I said that I had good reason to believe that the United States Government sincerely wished to negotiate a new agreement pointing out that some days ago the Department had telegraphed inquiring as to the present status of the negotiations, observing that if agreement were not reached Soviet coal imports70 would immediately be subject to tax. In this connection and following a remark of mine as to the desirability of speed particularly in view of the effect upon Soviet coal imports of a lapse of the current agreement Mikoyan said that it was not through any oversight that he had failed to mention coal imports in his draft proposals but that he had done so in recognition of the opposition to that arrangement on the part of American producers and that he had intended the omission to be a friendly gesture to which we had not made the hoped for response.
Mikoyan then stated that he had not intended to imply that either Government was disinterested in concluding a new agreement but that the United States Government was not taking steps which would facilitate the Soviet Government from a practical point of view in conducting its trade with us. He insisted that if the American Government were really interested in this trade it would not have rejected his drafts (b) and (d).
I replied that I must be permitted to disagree once more; that it was not the substance of (b) and (d) to which we necessarily objected but their inclusion in these particular commercial negotiations as we are quite willing to enter into friendly discussion of the problems concerned but only as a separate negotiation. In answer to this Mikoyan repeated he would consider the matter definitely with me later.