861.24/9–1944
Statement by the Foreign Economic Administrator (Crowley)27
The Soviet Supply Program
I. Fourth Protocol
Schedules of offerings were submitted in August by the United States. The Preamble was submitted on September 9, 1944. Considerable delay was encountered this year in the preparation of the offerings, due in part to the Soviet delay of one month in presenting them over the schedule of other years and the large number of requests for industrial equipment which have required lengthy studies.
[Page 1133]Offerings from the United States total 7,400,000 short tons, from which the U.S.S.R. is requested to select a minimum of 5,700,000 short tons for which shipping is assured. The balance will be procured as a reserve in the event shipping in excess of minimum commitments materializes.28
Soviet response to the offerings is anticipated. When negotiations as to the final form are completed, the document will be signed in Ottawa. This will complete the cycle of capitals: the first protocol having been signed in Moscow in 1941,29 the second in Washington in 194230 and the third in London in 1943.31
II. Financial Discussions
Discussions begun in July have continued throughout August to lead to an Amendment to the Master Agreement of June 11, 1942. Representatives of the Foreign Economic Administration, and the Acting Executive of the Protocol Committee have joined the State Department representatives for the discussions.
While the Soviet delegates declare their acceptance in principle of the proposal to arrange for the ultimate payment by the U.S.S.R. for certain specified categories of supplies which may be on hand or under contract at the termination of hostilities against a common enemy, the discussions have been protracted on the terms of the credit arrangements, and are not yet completed.
III. Shipping
Clearances in August fell below the July tonnage, for only 558,000 long tons were shipped. The reduction was due to the fact that there were not sufficient available vessels to keep the Persian Gulf route full. Only five vessels sailed against a capacity of 25 or more.
In spite of reduced sailings in August, shipping for July and August exceeded minimum Protocol commitments by 39%. Estimates through January, 1945, indicate that the advance rate should continue so that by February 1st, the program will still exceed minimum commitments by 37%.
Increased shipping has presented problems in procurement, especially of metals for bottom cargo. The Subcommittee on Supplies of your Protocol Committee has authorized procurement to the full offering of 7,400,000 short tons, as set forth in the Fourth Protocol. This procurement will be speeded to assure availabilities well in advance [Page 1134] of the end of the Protocol Period on June 30, 1944, since indications are that the material can be shipped.
IV. Aircraft
Clearance of Aircraft in August was considerably reduced over July figures, for only 247 planes departed. All but one of these left via the Alaska–Siberian route and included 55 for the account of the United Kingdom and 192 for the account of the United States.
The primary cause of reduction in departures is the smaller Fourth Protocol program calling for delivery of 245 planes per month.
Navy planes are now moving well. 138 have been delivered at Elizabeth City, North Carolina, and 30 have left the United States for departure points. These planes are not included in the Army Air Force plane figures reported above.
- Transmitted by Leo Crowley to President Roosevelt on September 11 and forwarded by President Roosevelt on September 19 to Under Secretary of State Stettinius and Secretary of the Treasury Henry Morgenthau, Jr.↩
- In statistics prepared by the Secretariat Subcommittee on Shipping of the President’s Soviet Protocol Committee, as of September 8, it was shown that “the minimum target (5,600,000) will be achieved by April, and the total offer (7,400,000) by June.” (861.24/9–1644)↩
- Signed October 2, 1941, Department of State, Soviet Supply Protocols (Washington, Government Printing Office), p. 3.↩
- Signed October 6, 1942, ibid., p. 15.↩
- Signed October 19, 1948, ibid., p. 51.↩