611.6131/590: Telegram

The Secretary of State to the Chargé in the Soviet Union ( Thurston )

405. Your 936, July 30, 6 p.m., and 937, July 31, 9 a.m. In support of your statement to Mikoyan to the effect that the United States and the U. S. S. R. should find it possible promptly to reach an agreement on commercial matters you may inform the Soviet authorities that this Government is entirely agreeable to renewing the agreement on the basis suggested by them as outlined in the documents referred to in parts (a) and (c) of your 937. In view of the possible unavailability here of certain commodities of interest to the Soviet Union this Government has no objection to including a suitable qualification to the Soviet agreement to purchase “American goods to the value of $40,000,000 or more” along the general lines indicated in your part [Page 452] (c). It is suggested, however, that the second paragraph of the document given in part (c) of your telegram be deleted and the following paragraph added in its place:

“If, however, restrictions imposed on exports by the Government of the United States should render it difficult for Soviet economic organizations to satisfy their needs in the United States, it may be impossible for these organizations to carry out their intentions. The Government of the Union of Soviet Socialist Republics is therefore not in a position at the present time to guarantee the above-mentioned value of its purchases in the United States.”

This Government does not consider that the points mentioned in the documents referred to in parts (b) and (d) are appropriate subjects of commercial negotiations. In recognition of this position these matters have in one form or another been excluded or specifically excepted from the operation of all commercial or trade agreements concluded by the United States. This Government, however, is prepared in a friendly spirit to enter into discussions not connected with the negotiation of this agreement of various problems affecting relations between the United States and the Soviet Union.

Hull