861.24/12–1647
The Embassy of the Soviet Union to the Department of State 1
In connection with the proposals by the American Government on June 25, 1947 concerning the basic principles of lend-lease settlement, the Soviet Government makes the following statement:
Whereas:
Lend-lease was a part of the common war effort of the Allies in the struggle against the common enemy, being one of the forms in which the United States of America contributed to this struggle and a means of guaranteeing the defense of the United States of America;
As indicated in the preamble to the agreement of June 11, 1942,
“The President of the United States of America has determined, pursuant to the Act of Congress of March 11, 1941, that the defense of the Union of Soviet Socialist Republics against aggression is vital to the defense of the United States of America;”
As acknowledged by leading government authorities of the U.S.A. in their official statements, the contribution of the Soviet Union to the conduct of the war against the common enemy and to the achievement of victory was exceedingly great, both in those things which lend themselves to monetary computation and in those which do not lend themselves to such computation;
In official statements of leading government authorities of the U.S.A. it was pointed out repeatedly that the hastening of victory over the common enemy and the saving of millions of American lives as the result of the war effort and sacrifices of the U.S.S.R. constitute the benefit which, in the sense of the agreement of June 11, 1942, the U.S.A. received in exchange for the lend-lease aid which the U.S.A. furnished;
The expenditures on the part of the Soviet State in the war with Germany as well as with Japan, and the losses in revenue which were suffered by state and cooperative social enterprises as well as by the city and village population of the Soviet Union as the result of enemy occupation constitute, for the war period only, no less than 357 billion dollars, in addition to a direct loss amounting to 128 billion dollars suffered by the Soviet State and population as the result of the enormous destruction and plundering of state, cooperative and personal property during the war years in that territory which was occupied [Page 716] by the enemy, while chiefly through the war effort of the Soviet people the United States not only avoided any kind of destruction on its own territory but even found it possible during the war to increase considerably its own material resources;
In the agreement of June 11, 1942 there is no mention made of a difference between articles used directly in military operations and all other articles provided by lend-lease, since they were all equally intended for the winning of the victory over the common enemy;
According to Article V of the agreement only those lend-lease articles, were to be returned to the United States of America which had not been used upon the cessation of military operations, that is, by September 2, 1945;
As seen from the text of the agreement of June 11, 1942, this agreement was considered by the Governments concerned as a preliminary one, and the definitive settlement was postponed until “the progress of events makes clearer the final terms and conditions and benefits which will be in the mutual interests of the United States of America and the Union of Soviet Socialist Republics and will promote the establishment and maintenance of world peace”;
As indicated in Article VII of the agreement of June 11, 1942,
“In the final determination of the benefits to be provided to the United States of America by the Government of the Union of Soviet Socialist Republics in return for aid furnished under the Act of Congress of March 11, 1941, the terms and conditions thereof shall be such as not to burden commerce between the two countries, but to promote mutually advantageous economic relations between them and the betterment of world-wide economic relations.”
The Soviet Government considers that the collapse of the common enemy was brought about to a considerable degree by the efforts of the Soviet Union, and that the benefits received by the United States of America as a result of the war effort of the Soviet Union immeasurably exceed the benefit received by the Soviet Union in the form of lend-lease supplies.
Nevertheless the Soviet Government, with a view to meeting the desires of the American Government, proposes to conclude an agreement for the settlement of lend-lease on the following bases: [Page 717]
- 1)
- The Soviet Government would pay on long-term credit the partial sum agreed upon for lend-lease goods in transit at the cessation of military operations, that is, on September 2, 1945, and also for goods received from the U.S.A. during the period extending from September 2 to 20, 1945, when lend-lease deliveries were suspended, and, in addition to this, goods remaining in Soviet ports and bases on September 2, 1945 which were not delivered to their ultimate destination.
- These articles are enumerated in the list submitted to the American Government on June 11, 1947.2
- 2)
- The Soviet Government would pay on long-term credit, in accordance with the agreed prices, for all merchant ships and 3 icebreakers received on lend-lease and now at the disposal of the U.S.S.R.
- 3)
- The Soviet Government would take the necessary measures to conclude satisfactory agreements with the American firms concerned on the question of patents for oil refining processes.
- 4)
- The Government of the Union of Soviet Socialist Republics would agree to consider the proposal for supplying to the United States of America, within specifically agreed limits, Soviet currency for the purpose of payment by the Government of the U.S.A. for services rendered by the Soviet Union to diplomatic representatives of the U.S.A. in the U.S.S.R., the amounts of Soviet currency made available being charged against the account for the payment of the dollar obligations of the U.S.S.R. in accordance with the agreement for lend-lease settlement.
- 5)
- The present settlement of lend-lease would be recognized as full and final with respect to the mutual obligations of the two Governments in accordance with the agreement of June 11, 1942 and with respect to all claims connected with the execution of this agreement.