861.24/9–1047

[Translation]

The Chargé of the Soviet Union (Tsarapkin) to the Secretary of State

[No.] 184

Sir: On instructions from my Government I have the honor to communicate the following:

In November 1946, in spite of the terms of the Agreement concluded between our Governments on October 15, 1945, the Government of the U.S.A. made the reservation that deliveries of equipment and materials after December 31, 1946 in accordance with this Agreement be made dependent on cash payments by the Government of the U.S.S.R. amounting to not less than 2.5% of the value of the unfinished deliveries.1

The Government of the U.S.S.R. agreed to satisfy the said demand of the Government of the U.S.A. and placed $725,000 at the latter’s disposal on December 27 [28], 1946.2

However, on January 10, 1947, the Government of the U.S.A. suspended the deliveries of equipment and materials to the Soviet Union provided for in the Agreement of October 15, 1945.

In spite of repeated requests on the part of the Government Purchasing Commission of the U.S.S.R. made to the competent agencies of the U.S.A., the said deliveries were not resumed, and, in this connection, on June 13, 1947 the Ambassador of the U.S.S.R. made a statement to Mr. Clayton, Under Secretary of State of the U.S.A., with reference to the unwarranted delay in deliveries and requested that the Government of the U.S.A. take the necessary steps for their earliest possible resumption.

By the note of July 5 [4], 1947, which the Ambassador of the U.S.S.R. sent to the Department of State of the U.S.A. in connection with the payment of the first installment of the percentage in accordance with the Agreement of October 15, 1945, the Government of the U.S.S.R. again called the attention of the Government of the U.S.A. to the necessity of expediting the delivery of the withheld equipment according to this Agreement.

However, even after the said representations the question did not meet with a satisfactory solution.

The fact stands out that at the present time deliveries of goods to other countries in accordance with similar Agreements are being made without hinderance, and thus, with respect to the Soviet Union, discrimination is being shown which is absolutely inadmissible and cannot fail to be considered as a gross violation of the Agreement.

[Page 707]

Insisting upon the fulfillment by the Government of the U.S.A. of its obligations in accordance with the said Agreement, the Government of the U.S.S.R. expects the Government of the U.S.A. to adopt measures for the delivery of the equipment withheld and to notify the Embassy of this fact at the earliest possible moment.

Accept [etc.]

S. Tsarapkin