EXPANSION OF US-USSR TRADE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M01009A000801140007-9
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 11
• Document Creation Date: December 27, 2016
• Document Release Date: March 28, 2013
• Sequence Number: 7
• Publication Date: January 19, 1959
• Content Type: MEMO

Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
AP/
O33,C///
tafIVI8kle2ds CONF IAL
?
SUBJECT:
79/
PARTICIPANTS:
D't ?
PARTMENT OF STATE
Memorandum of Conversation
sion of US-USSR Trade
DATE:Januarg390 1959
Anastas It. Mikoyan Deputy Premier of the USSR
Mikhail. A. Menshilmer Soviet'AmbaSsador to the United States
V. Smolyaichen',e ,Aide to Mr. Mikoyan
Vladimir S. Alkhimov -Commercial Counselor;, Soviet Embassy
G. Douglas Dillon - Under Secretary for Economic Affairs
=MEM: Llewellyn E. Thompson - United States Ambassador to the USSR
W. T. M. Beale Deputy Assistant Secretary for Economic Affairs
Alexander Logofet - Language Serviceso Department of State :(Interpreter)
COPIES TOg s/6 (29) G5 C4 4/P9 INR }II's Pa EUR (3)i AF (3)s ARA 0)0
NEA (3)S FE (Oa EB Ws OT (4)0 OFD (2)0 OR (2).9 REA$ E - Mr. Beale (5)
For list of di lomatic sts see attachment
Mr. Dillons I am delighted to have this opportunity to discuss common problems
of trade. We have always favored peaceful trade and an expansion of trade.
This attitude is fundamental to our belief that trade is a very useful thing
for every conntry. In particulars insofar as trade with the Soviet Union is
concerneds we feel that there would be a special advantage in promoting greater
understanding between our peoples which would lead to the relaxation of tensions.
We believe that there would be greater value in the latter sense than in the
economic sense. Statements made by the President at the meeting in Geneva were
in that line and so it was only natural that he replied in the sane vein to
Khrushchev,s letter and hoped that there would be an expansion of trade.
We have noted that in the past few years our trade has not been large and we
have bought considerably more from the Soviet Union than you have bought from
us. Some people have thought that export controls have made it difficult to
buy here in the United States. But actually only about 10 percent of the Items
moving in international commerce are subject to embargo the rest can be bought
under permits and permits will be granteds so we feel that the way to increase
this commerce is to start doing it. We have noticed the arrangement to buy
steel which some of our companies recently completed in return for purchases
of chrome. That was a fine arrangement. One thing puzzles us a little bit.
It is fairly clear that most of the long list of items in Prime Minister KhrushcLevos
letter are available for purchase in the United States, On the other hand he
mentioned items which he said the Soviet Union was ready to sell. Many of those
we already produce ourselves or buy from otherss so that the market for them
can't be
CONF1
INFORMATION COPY
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
CONFIDENUAL
-2-
Cangt be-fade-4y expanded. But perhaps there are some things* more technically
adeandeds. that the Soviet Union have toOffer. Our business firms might be
intereeted in such items. We would be interested in knowing more about what
those types of goods might be. One thing I think you realize* and that is our
business is done by private companies. That is the only way trade can be carried
on from the United States. Wnether items are available therefore depends upon
your negotiations with those private industries and businesses.
I noticed that one of the main things you indicated an interest in was the
products of the chemical industry s such as plastics s synthetics s and so forth.
Purchases of those products require negotiations with our Chemical industry.
From the information available to you, you should be aware that the past business
relationships of our chemical industry with the Soviet Union have not been satis-
factory* This is because in two o?r three instances they have arranged to make
know-how available and to be paid royalties in returns but in none of these cases
have those agreements been carried out. I am aware that the Soviet Union has
reasons for being unable to complete those arrangements, but nevertheless the
chemical industry feels that they have not been treated fairly. This is something
that would have to be looked at very carefully and arrangements made for
protecting patent rights s etc..* of American producers.
/ have noticed that some wonder has been expressed as to why an additional
answer to Mr. Khrushchevs proposal has not yet been forthcoming from the State
Department. We have prepared such a note and it would have gone out but, unfor-
tunately,* there were political occurrences in the Far East and in Berlin ehichs
from the standpoint of public opinions made it impossible to forward the type
of response we would have liked to make. While we dont want to feel that poli-
tical complications are tied into trades nevertheless it is a fact that they go
hand in hand. In a particular case having to do with the extension of creditss
there is nothing to prevent normal business creditss that is credits up to six
months. Such credits are available. As for other private credits* it is illegal
to extend such credits under a law going back to 1554 which was not particularly
directed against the Soviet Union but against the defaults of other countries.
It would require legislation to change this situation and certainly it would not
be possible to undertake such legislation until we had reached agreement on
lend-lease products which have not been discussed for some time. I do not know
'why there have been no further conversations for several years* but the United
States is prepared to entertain such conversations at any time the Soviet Union
wishes to do so. I cannot think of any one thing that would have a better general
effect on public understanding and would do more to advance the cause of expanded
trade than a settlement of lend-lease. Now I have talked much too longs and it
is your turn.
jr,?22_11k14,27_ang I think you might have said more,
Mee Dillong I will answer any questions.
Eire Eikoyang When Mr, Dulles suggested that I talk with yous I had expected
positive and constructive suggestions would be made. We have heard many sweet
\.
kg
CONelOENTIAL
INFORMATION COPY
words
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
? Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
CONFIDENTIAL
-3-
verds but 'would expect more constructive ones. I have heard you and others make
statements that the Soviet Union is carrying on trade for political reasons*
I aannat'agree. 'I -at now convinced that the UnitedStates 'is carrying out such
a. policy. - 'The United'Statea-has-pursued that kind ofpolicy because the answer
hae' been Protradted for eight 'tontha-ohly'because political occurrences have
taken piade. You are okperiendedenough to know that -political matters do not
decide trade matters although they affect them. There is one basic truths
that bad political relations do not contribute to expansion of trade. There is
a second truths that trade expansion does contribute to good political relations,
Dillons I would agree uith that.
Italymas Then if you agree with that we are for the Christian principle of
an eye for an eye and a tooth for a tooth. That is the gist of the natter. You
said that you buy more than we buy. Evidently you are convinced of this but
I think you are misinformed. I have heard such things being said and I have
therefore asked to have something prepared. When making such a statement you
take into account only commodities, but you do not take into account ezpenditures
in dollars* The figures for 1957 conpletely refute what you have said. The
export of goods to the United States frmz the Soviet Union is valued at $16
millions, whereas imports from the United States to the Soviet Union are valued
at about $10 million. Payments of the USSEfto the United Nations are valued at
$6 million. So we pay dollars to the United States.Horeover, capital and
interest on credits received atter the war amount to $7.6 million a year. So
the total expenditure of the Soviet Union in dollars in the United States is
$23.6 million. The difference of $7.6 million was covered by money we got by
selling gold in other countries. These facts refute your thesis on these
matters.
So far as the question as to the possibility of exports is concerned t you
refer to goods you are producing yourselves or buying from other sources. We are
not offering those. We are exporting goods valued at $1.4 billion and those are
the goods the United States is importing. Some hundreds of millions of dollars
might be chosen to be imported into the United States considering the great ex-
pansion of our exports. The Soviet Union has increased its external trade with
capitalist countries 3.3 times since 1950 and 1957 inclusive.
The United States no longer a capitalist country but is a semi-capitalist
country* That conclusaxh, speaks for the great possibilities existing in the
Soviet Union for an increase in exports. The achievement of self-sufficiency
and expansion of the economy in the Soviet Union presupposes an increase in
foreign trade*
You refer to private companies and firms as deciding what foreign trade
shall be carried. on. This is true in a general ways, but is not true so far as
the Soviet Union is concerned. So far as the Soviet Union is concerned, they
are tied hand and foot by the State Department, If the State Department did
not interfere or if your legislation were repealed then we would have found
a common
CONFIDENTIAL
INFORMATION COPY
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
Declassified and Approved ForRelease2013/03/28 : CIA-RDP80M01009A000801140007-9
CONFIDENTIAL
a common language with those firms and would have reacheei agreement with them.
After Nre Roosevelt became the President there was a conMiercial agreement.
This agreement was a simple one but it played a great role. Although you said
that your policy does not determine foreign trade matters s still it was the
United States Government that denounced the commercial agreement in 1951.
As a result we are placed in a state where we are discriminated against. So
far as deliveries to the United States of those goods that the United States
is not producing are concerneds after the commercial agreement was denounced
new inport duties were placed on some commodities from the Soviet Union. It may
be that you lack concrete into: ationbut judging from what you have said you
are well versed in these matters. As a result of the denunciation of the com-
mercial agreement import duties on some goods are higher than duties on other
goods. The duty on manganese ore is four times - high as before although it
was a traditional item of trade. The duties on ferrochrome and ferro-manganese
are three times as high. These are ategic materials which add to your war
potentials but we are not afraid to sell them. Bowevers let U4 stick to the
views that non-delivery would impede your armaments. I may even console you in
the fact that the list which prohibits exports to the Soviet Union only helps
us to produce in the Soviet Union and to supply other countries. Timber is a
big export item for the Soviet Unions which is large in timber resources. But
some import duties are four times a,s high as some other, countries. The duties
on birch plywood are three tines as highs on tob coo two times as highs and on
liquors s inoluding vodkas four times as high. If you don't want to drink vodkas
that's all right with nes but it is such a good drink that it seems improper to
discriminate* You produce vodka in the United States and you call it by the
Raasian word nvodka' but you don't pay apy royalties on a fixed percentage
basis. You only count your olPip$3 against us $ not oars against you. I therefore
reserve the right to raise the question of patents for vodka in the United
Vire Dillons Unfortunately it is trues since you produce very good vodka. I know
of one American firm that imports it in bulk and bottles it and as I have found
out for myself it is very good.
Nhy "unfortunately"?
Mr. Dillon "Unfortunately" because we cannot make vodka as well as you can.
Mr. Mikoyans It is interesting that you should feel that way.
Mr. Dillehg It is the psychology of friendly competition.
Mr. Eikoyans What you proceed from is not friendly competition. One more
point relating to Soviet furs. Soviet furs do not undermine capitalism.
Indeeds they only make your beautiful ladies more beautifuls so they do ,not
undermine your system. Your Congress has banned imports of furs since 1951
without reason. Seven kinds of Soviet fare have been banned but no reasons
are stated. Presumably no reasons were given because it is expected that
every fool will understand the reasons. But we do not consider ourselves in
CONFIDENTIAL
INFORMATION COPY
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
. Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
CONFIDENTIAL
the category of fools and le can understand it. Perhaps the reason is that
your finaice ministry had no other useful business to do. I do not mean your
present finance minister, who is a pleasant fellow.
'With reference to crahmeat, so far as I know Americans are fond of crab=
meat. I' have done my best to find Irby crabmeat imports are prohibited. It
was stated that a.coording to exact information available to the United States
?crabmeat Was produced by Jqoanese prisoners of war or Soviet prisoners.
Evidently the minister of finance was a capable ran to invelt this. It is
well known that our caned cra.bmeat is produced on floating factories. There
has never been a single Japanese on those floating factories, and you cannot
find a reasonable businessman Trit10 will be letting prisoners into his factory
to work.- There are many civil workers who can do that kind of a job. Last,
but not least, we don't have a single Japanese prisoner of war. But the United
States Goverment keeps out the goods. The sane argument can be generally
applied and then there 411 be no trade. You might declare that all workers
in the Soviet Union are prisoners. Such decisions are not an ornament to your
government. If I had revealed these facts on a television program, your people
would have laughed at you. You speak in favor of expansion, but is it possible
to trade under such circumstances? I expected when I cane that you would make
some saggestions for eliminating the obstacles existing since 1951.
So far as the claims of the chemical companies concerning disputable
matters, there is sane foundation for what you say, but your information is
outdated. I have been informed on one problem connected with the Dupont Company.
Although we had all the rights to insist on our position, nevertheless our
economic organization is prepared to reach an agreement. So it should not be a
long time before the dispute no longer,exists. I have been informd that 17 oil
and chemical firms had patent claims after the War. All claims disputes have
been completely settled with 15 out of those 17. There is a difference of opinion
with the ten remaining firms so far as th sum of compensation is concerned.
They didn't like the figures on the Soviet side but, instead of negotiating with
us, they interrupted the negotiations. We are not responsible for that. Negotia..
tions on sums is the usual thing in a business. Therefore, these kinds of
disputes can't be considered real obstacles.
don't want to go into this depth on an analysis of the list of goods which
require permits. You are aware of many things that should be corrected in those
lists if we are to develop trade. At one of the meetings I had with your business-
men, I quated some of the items on the list and there was a great deal of laughter,
not at us but at the State Department. It was not my/ ,:lvse to cause laughter
but to convince them that some reason should be applied. I don't know what steps
businessmen contemplate should be taken, but they will get there. It is said that
your State Department enjoys very great powers, in fact dictatorial powers as it
is the fashion to say.
You have referred to chemical firms. They behave better with respect to
our trade organizations and our importing organizations have been negotiating
to place orders. Chemical firms agreed to accept orders for petrochemical
plants but said they had to ask the
CONFIDENTIAL
State
INFORMATION COPY
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
CONFIDEICIAL
-6-
State Department. Quite a period has elapsed but the firms have informed us
that the State Department has neither refused or taken a decision. This is a
very flexible approach, very fine, not rough, there is lots of elegance in this.
So far as credits are concerned, you said that it is possible to get six
months credits. I do not quite understand this. Is there an instruction or
legislation tat.makes six months possible and seven months impossible? If
you pass that rule on the way we repay our debts why does the rule affect
Six months credit and not seven months? Certainly six or seven months are of
no practical importance. You also emphasize the Johnson Act.
Mr. Dillons It is the same law.
Mr. Niko ms That is right. It is not directed especially against the Soviet
Union. Incidentally, we were granted bigger credits by the United States in
spite of the fact that we never stated our intention to repay the Czarist debts.
Certainly Americans are reasonable enough not to expect us to pay the debts of
the Czars. If you mean repaying Czarist debts, then that is another object of
laughter. But under your present interpretation of law we are put in the cate-
gory of those Nino are not exact payers. An idea has just struck me. We are
making payments to you on our obligations. That is our 1945 credit. The entire
sum with interest amounts to about 000 million. We have actually paid more than
0 millipn. Maybe it is necessary in order to support your stabemext that we
have to stop paying interest and capital on this sum. If you stick to that,
and your opinion evidently supports it, you have no right to make claims on us
and we could save over a quarter of a billion dollars. Your idea is worth
study but we consider ourselves accurate payers.
So far as lend-lease is concerned, in the lendpaease agreement it is not
particularly stated that we are to pay. There is not a single word to that
effect. The gist of the idea in that agreement is that if the efforts are com-
pensated that uould be enough for the United States. If we compare our efforts
with yours we know that we bare the brunt of the burden of war. So we compen-
sated by our sacrifices several times the efforts of the Americans. In his
message of October 9, 1941 Mr. Roosevelt stated: "I solemnly declare to you
that in the event the present war plans of Hitler are successfully carried into
effect, we the Americans shall be impelled to carry on the same devastating war
as he is now waging on the Russian frontu. Mr. Acheson, in July 1942, said
nIs it possible that you want to put on one side of the scale costs of tanks and
ammunition and on the other side the cost of the lives of those who died in
these tanks? khat comparison is there between,4uch costs and the lives of
those people who perish in snow, etc., etc.?" .2.-/ These quotations make quite
clear the position in these matters. You should offer long-term credits to increase
the orders that the Soviet Union night place in the United States, and you have
promised that firms could make available six months credit. You have also sug-
gested at the sane time that we should settle the lend-lease. Evidently we must
make payments to you. There is no mutual trade in:this, just a one-way street.
I draw the conclusion that for reasons of a political nature the cold war con-
tinues and you are not prepared to expand trade but to make statements only to
1/ Notes are not exact for
this quotation.
CONFIDEMIAL
INFORMATION COPY
console
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
. Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
CONFIDENTIAL
tOnsole people. In spite of the friendly expressions you have used and the
IiOt business-like way you have talked, I am still disappointed. As a
Satter of fact, as we are not carrying on negotiations I do not see that
there is something the United States is willing to do. Let us, therefore,
wait until better times. Perhaps they will come.
Mr. DiIlona Thank you Mr. Minister, for your full exPlanation Which has been
vcWiZife-iiring.? As regards- the Use of trade for political riurposes, I have not
MeritiOned that Subject in talking with you. There have been. StateMents Made
publicly in which I have referred pa.rticularky to the action Of your Chinese
fiend e in cutting off trade with Japan? which they admitted was done for poli-
tical reasons.
_M_ikap_.n.g But you told. untruths when you referred
It iIt..0 We have not stopped trade. It is at
But you evidently needed to make that statement.
Mr. Dillow Vm glad to hear that the actions of the
Yugoslavia and Finland have no political motivation.
otherwise.
to Soviet-Yugoslav trade.
the same level as before.
Soviet Union toward
Many people have thought
Mr. Mikoyang We. did not pursue the purpose of developing trade. We have deferred
payments but trade has continued.
14r. Dillow However, the subject does net have much ...to do with what we are. talking
abOut,--75u inentiOned that popular opinion is important; that political events do
affect -pUblid opinion; and that -political events affect trade. Two events, the.
abrogation -Of the tradei.egreeitient. and legislation concerning biro, were both the
reedit Of adtion'of Congress and were not the result of suggestions by the
Executive Branch.
Mibatitallv When then shouldnot you make a suggestion to Congress that these be
corrected?
Mx.. Dillong Such a suggestion -would be possible, but it is a question whether
it would be useful until Congress is ready to act, and Congress is responsive to
public opinion. Therefore, it couldn't happen until relations are better than
they are now.
Mr. jaca.....ang I ¬ think I am wrong in my impressions from businessmen that
they seem to be in favor of an expansion of trade.
Mr. Dillong You are in favor, and we feel that trade can be expanded in many. items.
?Lou gave me a long list of items on which our tariffs are higher against Soviet pro-
'ducts. I could make one equaLly long in which there is no tariff difference and in
which there could be an expansion of trade, for example, chrome ore. But surely
you would not feel that we should stop buying these products from the underdeveloped
countries, that we should stop such trade and immediately switch he business to
you.
Mr. Mikoyang
CONFIDENTIAL
INFORMATION COPY
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
Declassified and Approved ForRelease2013/03/28 : CIA-RDP80M01009A000801140007-9
CONFIDENTIAL
-8-
Mr. Mikoyang I don't demand that. But your requirements are growing; or are
-duly not?
Mr. Dillon: !es s an. possibly an expansion could take place through growth.
You mention difficulties in getting permits. If you take the figures for
the past years out of $22 million for which export permits were asked by various
conpaniess only 0.5 million were not granted, So the great majority are granted.
ftLjaimaph: I wonlA like to know what the sum is for those petrochemical require-
ments that are under consideration. That is another matter.
Kr. Dillon: They don't add up to any particular sum because most of the permits
under consideration are for engineering and technical services. These are sib-
contracted out and they say that they don't know just how big these are.
Mr. Mikoyan: The sum of this category will be Agger.
Mr. Dillow You should not feel that these will not be granted as no decision
has yet been reached on these items.
Mr. am It may happen that there will be no need for permits since we shall
either produce these things or buy them somewhere else. This delay is in fact
a form of refusal.
Mr. Dillon: Regarding crabmeats imports are embargoe under law which goes back
141930. The law does not apply only to the Soviet Union and we are ready to
consider its removal and allow the entry of erabmeat if you will allow the
Treasury Department to obtain the necessary information to be sure that the con-
ditions existing in 1951 do not exist any more.
Mr. Mikoyan: You haven't got the data to prove your conclusions. You would
evidently like to send controllers to be placed at each floating factory. We
are fond of crahmeat ourselves and will keep it.
Mr. Dillon: You might talk further with Ambassador Thompson about this and
something might be done.
We are glad to hear your figures on trade balance for 1957. Our figures
show that exports are valued at $405 millions while our figure for imports is
very close to the figure you used. I am surprised to hear that you consider
that United Nations expenditures are part of trade with the 'United. States.
^ b-
.
CONFIDENTIAL
INFORMATION COPY
Mr. klik07
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
.. Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
C-ONFIDEN TIAL
-9-
Miloyana It is a matter of the balance of payments in dollars. We have
to sell in the UN countries in order to get dollars. How would we get them
otherwise?
Mr. Dillon: Gantt you pay in gold?
If Hannarskjold were sitting in Moscow, you would have to pay him.
Dillon: We mould pay in gold.
Mr. Eikoyan: We do not want your gold.
Mr. Dillon: Regarding the Johnson Act, the law provides that there can be no
loans. Tile Attorney General has ruled that ordinary commercial credits, that is
up to 180 days, are not loans.
As for lend-lease? as you know we have reached accords with all other
countries. We don't ask for anything they acquired during the course of the
fighting. All we are asking for is settlenent of civilian items delivered after
lend-lease trade had ended.
H ang You night be mistaken in your facts. After the war ended America
s opped de veries with only one day's notice. The civil supplies affected after
that valued at $210 million were continued under credit arrangements.
Mr. Dillang Our figures are based on the date on which we considered that
lend-lease was over. We do feel that there is an Obligation on the Soviet Union
for an undetermined amount. This to be paid over a period of time. We do feel
that it should be honored as eyelid obligation. Regarding your suggestion
concerning a possibility of ceasing payments on your post-war debt, we would
regret such action, but it mould have the effect of making it perfectly clear
that the Soviet Union does not always honor its obligations.
Mr. Mikoyan: I don't understand.
Mr. Dillon: What I said was that Mr. Iviikoyan had said that the Soviet Union
might not honor the obligations under the credit and that we mould regretthat
but it mould have the effect of making it perfectly clear that the Soviet Union
does not always honor its obliktions.
Et.j.ila_c.ang There was no such intention on the part of the Soviet Government.
The Idea just cane to mepersonally in connection with your statement that we -
are not accurate payers.
Mr. Dillon: I never said that the Soviet Union were not accurate payers but merely
that we couldn't proceed with other obligations until settlement under the lend-
lease had been made.
Unmentioned items under export control IthiCh you considered foolish. We are
are of the items you mentioned to Amrican business people as being under con-
trol. The facts are that they are not under control. We
didn't
CONFIDENTIAL
INFORMATION COPY
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
CONFMTIAL
didngt want to take issue publicly with what you said, but you were misinformed.
lizt_Miks We are not going to weaken your strategic position.
Mr. ons We do feel very seriously that there is a great deal of room for a
substantial increase in trade and, as the President said in his letter to Prime
Minister Khrushchev, all that is necessaly is to make contact with private people.
If there is no such effort on your part we can regretfully draw the same conclu-
sions that you have drawn, but in reverse, that the Soviet Union is not really
interested in expanding trade but merely send us letters for political purposes.
We would hope that times would become better and that we would be able to reach
a point where trade can expand because it would be a useful thing.
Mr. Nikana In order quickly to place big orders one has to have cret3..4s.
!iii to that suggestion you say pay for lend...lease. What kind of trade is
that?
Mr. Dillon: Lend-lease must be settled before any credits can be extended in
large amounts. Nevertheless, we can increase our trade without large, long-term
credits and such an increase would be useful.
LIE....ailsg?ana Well, without repealing mme of those laws, there would be some
expansien but not a big expansion of trade. Concerning lend-lease I ask you.
to think over the sacrifices that the Soviet people had to make, the destruction
of war and the millions that perished.. And then put on the scale. the expenditures
you went into during the war. You should also consider the outcome that
the defeat of Hitler.
Mr. Dillona The Soviet Union has never until now said that it was not prepared
to setarlend-lease. In the past it has made concrete offers and only the exact
amount has been in dispute. I am surprised at the Minister's position that the
Soviet Union is not prepared to make any papaen.t at all. This is certainly a
change in the Soviet position.
Mr. Niko. ant We are not obliged to pay anything on lend-lease. We want to
tr .e. u ,first you must give us credit so that we can start. If you can't
make credit avatlAbley then we must do without trade. Our plans don't take
into Account credits, but if you give us credits we can make changes in our
plans.
(NOTE: This memorandum is not a verbatim transcript but is
based on detailed notes. In reporting Nr. Nikoyanis remarks
the first person pronoun has been substituted for the third
person pronoun used by the interpreter.)
?CONFIDENWAL
al. INFORMATION COPY
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9
Declassified and Approved For Release 2013/03/28 : CIA-RDP80M01009A000801140007-9
? -1' *tik GONEIDENTIAL
?
BY POUCH TO FOLLCMING POSTas
fl EUR Diplomatic Posts and Paris USRO and Luxembourg MEC
All ARA ';11omatic Posts
KU FE Diplomatic Posts and Hong Kong and Singapore
American Embassy ANKARA
American Embassy ATHENS
American Embassy CAIRO
American Embassy KARACHI
American Embassy NEW DEMI
American Embassy TEHRAN
CONFIDENTIAL
INFORMATION COPY
Declassified and Approved For Release 2013/03/28: CIA-RDP80M01009A000801140007-9