861.24/9–1047
The Secretary of State to the Chargé of the Soviet Union (Tarasenko)
Sir: I have received the Ambassador’s note of July 4, 1947, No. 118, concerning the first interest payment made by your Government under the Agreement of October 15, 1945 and Mr. Tsarapkin’s note of September 10, 1947, No. 184, concerning the termination of delivery of articles under the terms of this Agreement. In view of the fact that it was not possible to complete deliveries under the Agreement of October 15, 1945 before December 31, 1946, and since legislative authorization to make such deliveries has terminated, it is necessary to inform you that no further articles can be made available or can be transferred by the Government of the United States to the Government of the Union of Soviet Socialist Republics under this Agreement and such articles as have been made available and have not been delivered to the custody of your Government can no longer be considered available for the purposes of this Agreement.
The fund of $725,000 which was deposited by your Government with the Treasurer of the United States for the specific purpose of defraying the costs of administrative expenses and accessorial charges connected [Page 711] with the delivery of goods under the Agreement of October 15, 1945 can no longer be used for this purpose. Your Government may wish to redesignate these funds to apply against other amounts due to the Government of the United States in connection with lend-lease matters.
Representatives of this Department are prepared to discuss with representatives of your Government at a time to be agreed upon the questions referred to in the Ambassador’s note of July 4, 1947 concerning the value of equipment transferred to your Government which cannot be utilized properly because of incompleteness and concerning the losses which the Ambassador’s note stated are being experienced by your Government as a result of the termination of deliveries of articles included in the Agreement of October 15, 1945.
Accept [etc.]