811.22761/37

Memorandum by Mr. Harold W. Moseley, of the Division of Controls

At Mr. Green’s6 request I called at the Navy Department today where I discussed with Commander Phillips, Lieutenant Taylor, and Captain Nixon a matter relating to the withdrawal of Soviet engineers from the plant of the Wright Aeronautical Corporation.

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I explained to the naval officers that my mission was purely a fact-finding one and that I wished to ascertain if there had been any new developments in this case since my last discussion with them on January 15, 1940. I informed them that the Soviet Ambassador had recently called at the Department and had again complained that his country was being discriminated against by the request of the War and Navy Departments that the Soviet engineers be kept out of the Wright plant.

Commander Phillips and his colleagues quickly replied that there had definitely not been any discrimination against the Soviet engineers and that the Soviets were receiving the same treatment as the representatives of any other country. They pointed out that temporary visits to the plant are approved for the representatives of all foreign countries who are calling to inspect engines or other machinery which the foreign country had contracted for. They said that this type of visit will be permitted for the Soviets as well as any other nationality. For proof of this statement they gave me copies of grants (attached hereto)7 of permission to visit the Wright plant which had recently been issued in behalf of Soviet engineers. These authorized visits of the Soviet technicians were for the purpose of inspecting 10 Cyclone engines which were being built for the Russians. Thus the Soviets were being granted the same treatment as the representatives of other countries, as the visits of the French, English, and other representatives were authorized for the purpose of a temporary visit to inspect equipment that had been contracted for.

Referring to the request of the Inspector of Naval Aircraft on December 26, 1939, that previous authorizations for visits to the plant by Russian technicians be cancelled, Commander Phillips pointed out that this request had reference only to the Soviet engineers being continually present in the plant, and that it had been stated at the time that temporary visits to inspect work contracted for would still be permitted. He stated that there was no discrimination involved in this request as it was the opinion of both the War and Navy Departments that the interest of the national defense suggested that the representatives of a foreign government should not be continually present in a plant which was doing confidential work for the armed forces of the United States. It was maintained that this was no slur upon the Russians and the same treatment would have been accorded any nationals of any other country. I may add, however, that the naval officers frankly stated that they thought that all Soviet engineers were spies. I inquired whether the activities of the Soviet engineers at the Wright plant had appeared to be suspicious [Page 292] and the officers replied that their suspicions in this case were based on the fact that there was a rapid turn-over in the representatives at the plant and the number of engineers at the plant had been increased to 23 from the 15 who had been granted permission to be in attendance at the plant according to the original contract. The officers were of the opinion that there had been discrimination in the past in behalf of the Soviets rather than against them as their engineers had been in the Wright plant for several years which was a privilege few other countries had enjoyed.

The officers pointed out that the Soviets were still obtaining the technical assistance and information that they had originally contracted for as the Wright company was conducting its relations with them in a separate building apart from the main plant. It was pointed out that this was quite in accord with the original contract as for all intents and purposes the technicians were at the Wright plant, although they were not necessarily given access to all the buildings. To the claim that under the contract the Soviets were entitled to a knowledge of the latest processes and inventions, the officers pointed out that this information was still being released to them by the Wright officials at the special plant which had been set aside for them, subject only to the general restriction that they should obtain information on equipment which had been officially released.

Summing up this discussion it seems apparent that the Soviets are receiving the same treatment as anyone else as far as being granted permission to visit the Wright plant to inspect work that has been contracted for. Their right to have their technicians continually present in the main plant has been denied in accordance with the provisions in their contract. A privilege of this type has not been granted to any other nation and thus the claim of discrimination hardly seems justifiable. If the Soviets are dissatisfied with the present arrangements under which they receive technical information at a building apart from the main plant, this would seem to be a matter to be taken up with the Wright company.

I called Colonel Thornton of the War Department and asked him whether he had any facts regarding this case which were not known to the Navy. He replied in the negative stating that the War and Navy Departments had acted jointly in this matter and that the information of the War Department on this case was the same as that held by the Navy Department.

H. W. Moseley
  1. Joseph C. Green, Chief of the Division of Controls.
  2. Not printed.