761.56/12–1453
No. 612
Memorandum of Conversation, by George E. Truesdell of the Office
of Eastern European Affairs
Subject:
- US–USSR Lend-Lease Settlement
Participants:
- The Soviet Ambassador, Mr. Georgi N. Zaroubin
- Mr. Nikolai K. Grigoriev, Counselor, Soviet Embassy
- Mr. Anatoli G. Myshkov, Third Secretary, Soviet Embassy
- The Acting Secretary, General Walter B. Smith
- EE—Mr. Truesdell
- TC—Mr. Logofet, Interpreter for the Acting Secretary
The Soviet Ambassador called at his own request at 3:45 p.m. today and made a statement summarizing the position of his Government on the lend-lease question, namely, that the Soviet Union had striven for a lend-lease settlement; that the Soviet Government has already returned 3 icebreakers, 27 frigates, 7 tankers and 1 dry-cargo vessel; that agreements had been reached on compensation of holders of lend-lease oil refinery patents with all those interested firms willing to negotiate on a mutually acceptable basis; [Page 1221] that the Soviet Government had increased its global settlement offer up to $300 million while the United States had not reduced the amount asked although stating it would do so; that thus the Soviet Government had made essential concessions; that the Soviet Government expected the United States to reach agreement on all questions, especially the amount and to fulfill previous agreements on merchant ships and naval craft; that the Soviet Government was willing to cooperate on all questions concerning lend-lease and had in fact in its note of October 20,1 proposed direct negotiations on a general lend-lease settlement; and finally that the Soviet Government hoped the United States would not limit the negotiations to technical questions, i.e. the 186 naval craft, for the Soviet side itself would also strive to settle this question.
The Acting Secretary commented that with respect to vessels, it should be noted that, if they were not returned shortly they would have lost their usefulness. He then asked if he understood correctly that the Soviet Government wished to buy some of the vessels. The Soviet Ambassador replied that his Government wished to purchase those vessels which the United States had already agreed to sell and to discuss all questions connected with lend-lease.
The Acting Secretary after obtaining confirmation that the Soviet position was to discuss all problems related to lend-lease, said that he did not reject the Ambassador’s suggestion and that he did not feel that the Ambassador would find the United States position unreasonable. He said that the United States had already shown its willingness to compromise and cited as an example the fact that no payment was asked for lend-lease ammunition which was provided to the Soviet Union for use against the common enemy. The Acting Secretary then stated his belief that item by item discussion of the topics at issue provided a sound approach and that the question of ships should be settled first. The Soviet Ambassador expressed agreement but stated that his Government did not wish to confine discussions to technical questions only. He said that the solution of the question of the 186 vessels left only two other questions, namely, the global sum and the sale of the other vessels.
The Acting Secretary emphasized that there appeared to be little advantage to making each item dependent upon conclusion of an overall settlement but said careful consideration would be given to the Ambassador’s statement and that he would consult the Secretary about it. He said that the Secretary would be back Thursday [Page 1222] and he hoped to be able to give the Ambassador a reply on Friday or shortly thereafter.2
- For text, see Department of State Bulletin, Jan. 11, 1954, p. 45; see also Document 609.↩
- The Department of State reply to Ambassador Zarubin’s proposals was presented in an aide-mémoire of Dec. 24; for text of that document, see Department of State Bulletin, Jan. 11, 1954, p. 45.↩