861.24/7–447
The Ambassador of the Soviet Union (Novikov) to the Assistant Secretary of State for Economic Affairs (Thorp)
No. 118
Sir: In connection with your note of June 24 of this year concerning payment of the first interest installment in accordance with the Agreement of October 15, 1945, I have the honor to communicate that the Government of the U.S.S.R. has given instructions to make the first interest payment to the Government of the U.S.A. for the equipment and materials delivered according to the above-mentioned Agreement. However, in the equipment delivered there should not be considered those items of delivery which are yet to be completed for the proper fulfillment of their industrial purpose and which have proved to be incomplete as a result of the suspension of shipments on January 10, 1947 by a unilateral decision of the American party, which was a violation of the Soviet-American Agreement of October 15, 1946.
The value of the equipment transferred to the Soviet Union, which cannot henceforth be properly utilized until its completeness is ensured, amounts to more than 20 million dollars. After deducting the latter amount from the total sum represented by the deliveries made in accordance with the Agreement of October 15, specified by the American party as 196.2 million dollars, the first interest payment will be 4,170 thousand dollars.
The Gosbank of the U.S.S.R. is transmitting the above-mentioned sum of 4,170 thousand dollars in the name of the Treasurer of the United States, Lend-Lease Fiscal Division, United States Treasury Department.1
Simultaneously, the Government of the Union of S.S.R. calls the attention of the Government of the U.S.A. to the fact that, as a result of the aforementioned unilateral decision to suspend the shipping of I equipment to the U.S.S.R., the Soviet party is suffering considerable losses because of the impossibility of beginning the operation of a [Page 703] number of enterprises. These losses are being computed and will be communicated to the Government of the U.S.A.
The Government of the U.S.S.R. considers that the shipping of the detained equipment under the Agreement of October 15, 1945 should begin as soon as possible.
For its part, the Government of the U.S.S.R. will fulfill its obligations in connection with payment of the full amount of interest which is due according to the above-mentioned Agreement.
Accept [etc.]
- For public announcement of this payment released to the press on July 9, see Department of State Bulletin, July 20, 1947, pp. 148–149.↩