851.6363/8–3045: Telegram

The Secretary of State to the Ambassador in France (Caffery)

4098. Following summarizes status French petroleum program this date: [Page 781]

1.
Straight lend-lease will terminate V–J day and U.S. military supply responsibility for both civil and military requirements of French terminates 1 Sept 1945.
2.
Transfers to the French out of stocks in the theater will therefore continue as straight lend-lease up to V–J day or Sept 1 whichever is earlier and by agreement with ANPB will consist of regularly scheduled Aug requirements plus such excess stocks as the French can accommodate in their storage up to the limit of 60 days bulk supply and 90 days lubes and greases.
3.
On 1 Sept French national program assumes full responsibility for French civil and military imports. USFET13 interested only in avoiding conflict in discharge where common use is made of port facilities.
4.
ANPB has advised USFET Frankfort of above.
5.
For procurement of Sept civil and military requirements French are requesting and FEA14 is extending government procurement under cash reimbursement requisitions. U.S. Government procurement assistance under cash reimbursement requisitions will be available to French for 60 days after V–J day.
6.
Our estimate of purchase cost of total Sept requirements as per column 6 of slate attached to your despatch no. 2541 of July 1615 is about $10,000,000. French Mission state they are authorized to spend only $6,885,120, equal to total cost at estimated prices indicated by Paris. In order to avoid delay in initiating procurement and shipment French Mission is preparing preliminary cash requisition for 50 per cent of above mentioned quantities product by product. Meantime Mission will ascertain if Paris wishes to remit further dollars and/or arrange sterling purchases for balance of requirements.
7.
As products are procured under this requisition European Petroleum Supply Committee will request assignment of tankers by London which will check with French regarding desired discharge ports each cargo. Individual bulk shipments will also be coordinated with ANPB in connection with paragraph 3 above.
8.
Reurtel 509516 Arabian crude cargoes shipped or commenced loading prior to V–J day will be lend-leased. Seller discussing with French payment terms for all subsequent shipments.

Byrnes
  1. United States Forces, European Theater.
  2. Foreign Economic Administration.
  3. Not printed.
  4. Dated August 23, 1945, not printed.