861.24/1704: Telegram
The Ambassador in the Soviet Union (Harriman) to the Secretary of State
[Received November 10—10:46 a.m.]
1880. For Hopkins and the Under Secretary.41 One of the formal discussions of the question of American participation in postwar reconstruction of the Soviet Union would be initiated in Moscow between the Soviet Government and our Embassy.
This subject came up in my call on Mikoyan last week. I was somewhat embarrassed to learn from him for the first time that you had discussed this question with Lukashev and had suggested the formation of some kind of a committee to study it. Mikoyan seemed surprised that I had not been informed. Please advise me the substance of this talk and as the Soviet officials in Washington cable their Government at once of discussions with you I suggest that you likewise keep me currently informed.
I am sure you appreciate how necessary it is to have clearly defined procedures and arrangements in all of our dealings with the Soviet Government and I believe we should reach a decision promptly as to the procedure to be followed in dealing with this important subject.
I do not know whether the committee you had in mind was to be an interdepartmental coordinating committee to formulate general plans and obtain the necessary approvals or whether it was to be a committee to handle negotiations with the Soviet Government. If it is to be a committee to negotiate I would view it with some concern based on my experience in London as well as our experience in Moscow with special committees.
It is my view that there are many advantages in having these matters under instructions from Washington initiated, and fre [the?] general arrangements negotiated by me and the staff here with such additional assistance as may from time to time be needed. I believe we are in a better position to find out what the Soviet Government really wants and the kind of arrangements that would be most satisfactory to both sides. It is important that we be reasonably sure that equipment now being asked for under Lend-Lease be really for the war and not postwar and that particular requests for postwar which we might be willing from time to time to put into production [Page 787] before the end of the war should come under different financial arrangements than Lend-Lease. I am confident that we will be on a relationship with the Soviet officials here by which a reasonable opinion can be formed on this aspect of the requests if you will keep us informed of the details and any doubts you may have in Washington as to their current requests.
Molotov and Mikoyan both indicated that they liked American equipment better than that available from any other country but they believe that our prices will be high. The terms of credit under which this will be financed will have an important bearing on the extent to which they will purchase American equipment. There is no doubt they want to do the maximum amount business that is possible with us but they are going to be tough in their trading. I believe that a better deal from our standpoint can be made in Moscow. We are dealing here with the authoritative policy Soviet officials.
We must not lose sight also of the fact that this subject is of great importance in our overall relations with the Soviet Government.
Of course detailed arrangements and the actual placing of orders would have to be done by the Soviet Purchasing Mission in the United States under an overall general agreement previously made.
I hope that you and Stettinius can thrash this matter out with the others concerned to the end that a policy and procedure be agreed upon in Washington in the near future. I would appreciate being currently consulted in order that you may have my reactions for what they are worth before a conclusion is reached.
- Edward R. Stettinius, Jr., who became Under Secretary of State on October 4, 1943, succeeding Sumner Welles.↩