Moscow Embassy Piles: 690—Surplus Property
Memorandum of Conversation, by Mr. Richard H. Davis, Second Secretary of Embassy and Vice Consul in the Soviet Union
| Present: | Mr. Mikoyan, Minister of Foreign Trade |
| General Semichastnov, Deputy Minister of Foreign Trade | |
| Soviet translator | |
| American Ambassador | |
| R. H. Davis, Secretary of Embassy |
Subject: Exchange of Surplus Property to the Value of Ten to Twelve Million Dollars for Lease of Land and Construction of Embassy Buildings in Moscow.
At the Ambassador’s request Mr. Mikoyan received him at seven p.m. to discuss the project whereby 10 to 12 million dollars worth of surplus property items would be turned over to the Soviet Govt, in exchange for the lease of land and the construction of buildings for [Page 753] an Embassy in Moscow.94 The Ambassador began the conversation by stating he had come to do some buying and selling with Mr. Mikoyan today and explained that he had talked with Mr. Vyshinski in Paris about the project, which he then explained in its essence. The Ambassador stated that he understood that the negotiations between the USA and the USSR for a $100,000,000 surplus property loan were about completed and the agreement about to be signed in Washington. While the proposition for the exchange of 10 to 12 million dollars worth of surplus property for land and buildings for an Embassy in Moscow had not been finally agreed to by the Soviet Govt., the Ambassador believed it had been favorably received.
Since the Ambassador had a personal interest in this project, while he was in Paris he went to see Mr. Virden, Foreign Liquidation Commissioner, and obtained the latest lists of the surplus property items now available. Not long ago a Soviet general heading a small group had come to Paris with a list of items, mainly heavy trucks and road building equipment, which the Soviet Govt, was desirous of acquiring. But as these items had not yet been declared surplus and since the Soviet commission had no authority to negotiate for other items, no sale had taken place.
In the meantime, other govts, and individuals are buying these surplus items and at the present time the Ambassador understood an agent of the French Govt, was in Washington negotiating for the sale in bulk of all American surplus property in France.
The Ambassador stated that he was anxious to have the Soviet authorities go over the lists of surplus items currently available, which he had brought with him from Paris, before they were disposed of to other purchasers. These lists should be of great interest to Mr. Mikoyan, and many of the items would undoubtedly be of use to the Soviet Govt, in carrying out its new Five-Year Plan. The Ambassador had this request to make: (1) that Mr. Mikoyan have these lists examined and have picked out items which would be useful to the Soviet Govt, to the value of 10 to 12 million dollars, which could then be wrapped up, so to speak, in a bundle and reserved for the Soviet Govt, and (2) that Mr. Mikoyan indicate any other items over and above the value of 10 or 12 million dollars which the Soviet Government would be interested in purchasing, and the Ambassador would request Mr. Virden in Paris to reserve them as long as possible for the Soviet account.
[Page 754]Mr. Mikoyan stated that he could not say anything in regard to the project for the construction of an Embassy since that did not fall within his competence. However, he was interested in surplus properties.
The Ambassador understood that the Embassy construction project did not come within Mr. Mikoyan’s jurisdiction and explained that in talking with Mr. Vyshinski in Paris about this plan, Mr. Vyshinski had told the Ambassador that when he returned to Moscow he should “please take those property lists to Mr. Mikoyan and do not bring them to me”.
Mr. Mikoyan expressed his thanks for the lists which he thought would be useful and inquired whether they referred only to equipment in Europe. The Ambassador confirmed this.
Mr. Mikoyan stated that the lists would be examined and that as soon as the $100,000,000 agreement had been signed the Soviet Govt would draw up a list of surplus property items of interest to it and would send a commission to Paris. This question would be handled by Mr. Mikoyan’s deputy, General Semichastnov.
The Ambassador requested that regardless of final signature on the $100,000,000 agreement Mr. Mikoyan pick out now 10 to 12 million dollars worth of property which could then be held in reserve for the Soviet Union pending the final conclusion of the agreement.95
Mr. Mikoyan again repeated that he was not currently informed about the project for construction of a new Embassy, but he promised that the lists would be studied and the results communicated to the Ambassador.
The Ambassador concluded by explaining that his personal interest in this project was to find a place to live.
- With regard to earlier inability to reach an agreement for construction of an Embassy building in Moscow, see Foreign Relations, The Soviet Union, 1933–1939, index entries under “American Embassy in Moscow,” p. 1017.↩
- For documentation concerning negotiations for the sale of surplus property in 1946 to the Soviet Union and their lack of eventual success, see pp. 819–832, passim.↩