Office of the Historian

861.24/6–2447

The Secretary of State to the Ambassador of the Soviet Union (Novikov)

Washington, June 24, 1947.

Excellency: I have the honor to refer to the “Agreement between the Governments of the U.S. and the U.S.S.R. on the Disposition of Lend-Lease Supplies in Inventory or Procurement in the United States” executed on October 15, 1945. This Agreement states in the final paragraph of Schedule II:

“Interest on the unpaid balance of the total amount determined as set forth above in paragraphs C and D shall be paid by the Government of the Union of Soviet Socialist Republics at a fixed rate of 2⅜ percent per annum accruing from July 1, 1946. Interest shall be payable annually, the first payment to be made July 1, 1947.”

[Page 696]

A portion of paragraph C of the Agreement reads as follows:

“The amount which the Government of the U.S.S.R. shall pay the Government of the U.S., for articles transferred under the provisions of Article II of this agreement, shall be the sum of the following items set forth in subparagraphs 1 and 2:

1.
The fair value of the articles.
2.
The costs incurred subsequent to transfer for storage, inland transportation, inland accessorial charges, and port accessorial charges.…”

The Government of the United States through the Treasury Department has up to the present time formally submitted to the Government of the Union of Soviet Socialist Republics monthly statements of transfers under paragraphs C and D of the Agreement totaling $196,191,601.75. In addition, transfers totaling approximately $37,000,000 have been accomplished but have not yet been included in statements to your Government. The amounts of these additional transfers, as they are audited and verified, will be included in future monthly statements submitted by the Treasury Department.

The Government of the United States will expect to receive from the Government of the Union of Soviet Socialist Republics on or before July 1, 1947, payment of interest in the amount of $4,659,550.54 which represents interest on the preliminary total amount of $196,191,601.75. Payment of interest due July 1, 1947 on additional amounts will be expected as monthly statements are submitted to your Government.

Your checks made payable to the “Treasurer of the United States” should be sent to:

  • Lend-Lease Fiscal Division,
  • United States Treasury Department,
  • Washington, D.C.

Accept [etc.]

For the Secretary of State:
Willard L. Thorp