could gain at the price of forfeiting the good relationship which, at the Summit Conference, the Soviet rulers seemed to want. On my return to the United States, I shall report to President Eisenhower. He has closely followed this Conference on a day-today basis, and will evaluate its result against the background of his vast knowledge and abhorrence of war, and his dedication to the cause of a just and durable peace. I am confident that our national policy will continue to find the way to serve the cause of human dignity, as represented by the freedom of individuals to exchange ideas; the cause of humanity, as [re]presented by control of disarmament; and the cause of justice, as represented by the unification of Germany. 49. QUADRIPARTITE COMMUNIQUÉ, NOVEMBER 16, 19551 In compliance with the Directive issued by the four Heads of Government after their meeting in Geneva in July, the Foreign Ministers of the French Republic, the United Kingdom, the Union of Soviet Socialist Republics and the United States of America met in Geneva from October 27 to November 16, 1955. They had a frank and comprehensive discussion of the three items entrusted to them in the Directive, namely: 1. European Security and Germany, 2. Disarmament, and 3. Development of Contacts between East and West. The Foreign Ministers agreed to report the result of their discussions to their respective Heads of Government and to recommend that the future course of the discussions of the Foreign Ministers should be settled through diplomatic channels. G. NEGOTIATIONS REGARDING A LEND-LEASE SETTLEMENT 50. STATEMENT BY THE DEPARTMENT OF STATE, U. S.-U. S. S. R. negotiations for a settlement of the Soviet wartime lend-lease account are to be resumed in Washington on January 15, 1951, with representatives of the Soviet Government nominated for this purpose. These discussions will deal with lend-lease matters only. The question of a settlement of Soviet obligations under the The Geneva Meeting of Foreign Ministers, October 27-November 16, 1955 (Department of State publication 6156; 1955), p. 305. 2 Supra, doc. 41. 3 Department of State Bulletin, Jan. 15, 1951, pp. 93–94. U. S.-U. S. S. R. Master Lend-Lease Agreement of June 11, 1942,' has been a subject of discussion between the two Governments since 1945. Formal settlement negotiations were first undertaken in April 1947. The forthcoming talks result from a United States note of June 15, 1950, to the Soviet Government 2 suggesting the resumption of negotiations in a further effort to reach a long-overdue settlement of this lend-lease account. The main problems to be dealt with are: (1) The amount, and terms of payment, for the reimbursable portion of wartime lend-lease aid from the United States to the Soviet Union. This reimbursable portion does not include articles lost, destroyed, or consumed in the common war effort. It thus comprises only a small part of the total of approximately 11 billion dollars worth of lend-lease aid from the United States to the Soviet Union. (2) The disposition of naval and merchant vessels loaned to the U.S.S.R. which are subject to return to the United States on request. After the Soviet authorities failed for 2 years to comply with requests for return of certain vessels, the United States, on October 7, 1948, formally demanded the return of 3 icebreakers, 28 frigates, and 186 units of other types, mainly small craft. To date, the U.S.S.R. has returned the frigates and one icebreaker but has failed to comply with the request for the other vessels." (3) Compensation to United States firms for the use of their patented oil refinery processes supplied to the U.S.S.R. under lendlease. To date, the U.S.S.R. has reached agreement with only one of the seven interested United States firms. 51. NOTE FROM THE SECRETARY OF STATE TO THE SOVIET AMBASSADOR AT WASHINGTON,' FEBRUARY 7, 1951 I have the honor to refer to Article V of the Master Lend-Lease Agreement of June 11, 1942, between the Governments of the United States and the Union of Soviet Socialist Republics' which provides that: The Government of the Union of Soviet Socialist Republics will return to the United States of America at the end of the emergency, as determined by the President of the United States of America, such defense articles transferred under this agreement as shall not have been destroyed, lost or consumed and as shall be determined by the President to be useful in the defense of the United States of America or of the Western Hemisphere, or to be otherwise of use to the United States of America. 1 Executive Agreement Series 253; 56 Stat. 1500. 2 Not printed. * In a note not printed. An agreement of Sept. 27, 1949, provided for the return of three icebreakers and various frigates; TIAS 2060 (63 Stat., pt. 3, p. 2810). 5 Alexander S. Panyushkin. Department of State Bulletin, Feb. 19, 1951, pp. 302–303. 7 EAS 253; 56 Stat. 1500. On July 7, 1948, the President of the United States of America determined that the emergency relative to the lend-lease program referred to in the provisions of the Master Lend-Lease Agreements between the United States and various lend-lease countries had terminated. I have the honor to confirm herewith the statement made by Ambassador John C. Wiley during the Lend-Lease Settlement discussions on January 27, 1951, that the President of the United States of America has determined that certain defense articles are of use to the United States, namely all the naval and merchant vessels and military watercraft which were transferred to the Government of the Union of Soviet Socialist Republics under the Lend-Lease Agreement of June 11, 1942, and which have not been heretofore returned to the United States. This will also confirm the request made by Ambassador Wiley on January 27, 1951, as directed by the President of the United States, that the Government of the Union of Soviet Socialist Republics immediately return to the United States these defense articles in accordance with Article V of the Master Lend-Lease Agreement of June 11, 1942. A list of these vessels by category is attached hereto.2 It is further requested that representatives of the United States Government be permitted to examine all unserviceable vessels in order to determine the ultimate disposition of these vessels. The Government of the United States expects that the Soviet naval experts now in the United States will promptly make arrangements with American naval experts for the immediate return of the vessels referred to above. The Government of the United States reserves its rights under Article V of the Master Lend-Lease Agreement of June 11, 1942, to demand the return to the United States, under the provision of this Article, of such other lend-lease articles as may be determined to be of use to the United States. 52. NOTE FROM THE SECRETARY OF STATE TO THE SOVIET AMBASSADOR AT WASHINGTON, APRIL 6, 1951+ 3 EXCELLENCY: I have the honor to refer to your note No. 22 of March 21, 19515 concerning this Government's request of February 7, 1951 that the Government of the Union of Soviet Socialist Republics promptly return to the United States all vessels loaned to the Soviet Union under the terms of the Master Lend-Lease Agreement of June 11, 1942. In your note you declare that agreement had already been reached between our two Governments for the sale to the Soviet Union of all the merchant ships and part of the naval ships received under Lend 1 Not printed. ? Not printed. See table of Apr. 24, 1952; infra, doc. 55. Alexander S. Panyushkin. * Department of State Bulletin, Apr. 23, 1951, pp. 646–647. Ibid., pp. 647-648. * Supra. Lease and that this Government's note of February 7, 1951 "violates" this agreement. By "agreement" it is presumed that you have reference to this Government's notes of February 27, 1948, September 3, 1948 and August 8, 1949 which dealt with the disposition of lend-lease vessels. With respect to the thirty-six war-built merchant vessels this Government's note of February 27, 1948 stated: The agreement of your Government concerning these vessels resolves tentatively one of the several points necessary to a satisfactory comprehensive settlement of the obligations under the agreement between our two Governments of June 11, 1942. Your attention is invited to the fact that at the first meeting of the Working Groups on May 3, 1947, United States Representatives stated that since the object of the negotiations was to achieve a satisfactory comprehensive settlement, agreement reached on any particular subject was tentative and subject to agreement on all issues necessary to a general settlement. The Soviet representatives indicated their concurrence. Accordingly, the first paragraph of the Outline of Main Points of Settlement Proposed by the United States Side in keeping with the above-mentioned understandings reached by the representatives of our two Governments on May 3, 1947 reads in part as follows: "As both sides have understood from the outset, the reaching of agreement upon any one issue is tentative and subject to the conclusion of a satisfactory comprehensive settlement." With respect to pre-war-built merchant vessels and tugs, this Government's note of August 8, 1949 stated in part: The Government of the United States considers this amount ($13,000,000) satisfactory as the cash price for the sale of the vessels, effective as of September 2, 1945, it being understood that the sale will be consummated only upon conclusion of the over-all Lend-Lease settlement. Agreement on this point resolves satisfactorily another of the several points of a comprehensive settlement, but the Government of the United States will continue to reserve its rights under Article V of the Agreement of June 11, 1942, to require the return to the United States of the pre-war-built merchant vessels and the tugs as well as other Lend-Lease articles until such time as a mutually satisfactory over-all settlement agreement is reached. With respect to naval vessels, this Government's note of September 3, 1948 stated in part: Provided a mutually satisfactory Lend-Lease settlement is promptly agreed upon by our two Governments, the Government of the United States is willing, at agreed prices, to sell to the Soviet Government as a part of such settlement and in accordance with the surplus property procedures outlined to representatives of your Government on June 25, 1947, the following naval craft . . . ... Moreover, on other occasions this Government has made perfectly clear to the Soviet Government its position concerning the disposition of lend-lease vessels. In this Government's note of May 7, 1948 which referred to the conditional nature of the agreement concerning war-built merchant ships as set forth in this Government's note of February 27, 1948, it was stated: the position of the Government of the United States is that, if a comprehensive lend-lease settlement is not concluded promptly, the Government of the United States under Article V of the Agreement of June 11, 1942, will require the return to the United States of the lend-lease merchant vessels now remaining in the possession of your government. In this Government's note of September 3, 1948 in connection with the need for a prompt and satisfactory settlement, it was stated: Therefore, notwithstanding certain offers which this Government has made in connection with its settlement proposals, unless a mutually satisfactory settlement is promptly agreed upon by our two Governments, this Government will have no alternative but to withdraw its offers to transfer full title to certain lendlease articles to the Government of the Union of Soviet Socialist Republics and will be obliged to exercise its rights under Article V of the Agreement of June 11, 1942 by requiring the return of such articles to the United States. This is particularly applicable to all merchant and naval vessels. It applies also to military vessels and to certain other lend-lease articles which would be of use to the United States. From the above it is clear that the agreement referred to in your note of March 21, 1951 consists of a series of tentative offers by the Government of the United States which have been explicitly conditioned upon the conclusion of a prompt and satisfactory lend-lease settlement. In the current conversations on the subject of a lendlease settlement, Ambassador John C. Wiley has repeatedly called to your attention the fact that the Soviet Government by avoiding the reaching of a prompt and satisfactory over-all settlement clearly has failed to meet the conditions for the sale of any of these vessels. Therefore, this Government is free to withdraw its conditional offer to sell such vessels and this was done in this Government's note of February 7, 1951.1 Your note of March 21, 1951 advances as a second reason for not returning lend-lease vessels the argument that the vessels are not needed by the United States. Article V of the Master Lend-Lease Agreement of June 11, 1942 is clear and specific on this point, reading as follows: The Government of the Union of Soviet Socialist Republics will return to the United States of America at the end of the present emergency, as determined by the President of the United States of America, such defense articles transferred under this agreement as shall not have been destroyed, lost or consumed and as shall be determined by the President to be useful in the defense of the United States of America or of the Western Hemisphere or to be otherwise of use to the United States of America. This article places upon the President of the United States alone the responsibility for the determination of the usefulness of lend-lease articles to the United States. The point raised in your note of March 21, 1951 that certain vessels of the United States may have been disposed of to third countries bears no relationship to the obligations of your Government under Article V and is not subject to discussion between our two Governments. On July 7, 1948 the President of the United States of America determined that the emergency relative to the lend-lease program had been terminated and the Government of the Union of Soviet Socialist Republics was so notified on October 7, 1948. On this date the Soviet Government was also notified of the determination by the President of the United States that 3 icebreakers, 28 frigates and 186 other naval craft were of use to the United States and their return was 1 Supra. |