57. AIDE-MÉMOIRE FROM THE DEPARTMENT OF STATE TO THE SOVIET EMBASSY AT WASHINGTON, SEPTEMBER 11, 1953 1

On November 5, 1952 the Acting Secretary of State addressed a note to His Excellency the Ambassador of the Government of the Union of Soviet Socialist Republics concerning the negotiations for a settlement of the obligations of the Soviet Government under the Master Lend-Lease Agreement of June 11, 1942. In this note it was pointed out that although the Soviet Government had expressed its readiness to return to the United States 186 naval craft, the return of which the Government of the United States initially requested in its note of September 3, 19483 and repeatedly requested thereafter, the Soviet Government had not been prepared to take any concrete action for this purpose. It was suggested that if it was in fact the intention of the Soviet Government to return those vessels, the Government of the United States should be informed without further delay of the dates and ports of return, or alternatively of the date when Soviet representatives would be available to work out with representatives of the Government of the United States the details for the return of the vessels.

The Acting Secretary's note also reiterated the position of the Government of the United States with respect to the other lend-lease vessels remaining in the custody of the Soviet Government. As had been made clear in the United States notes of April 6, 1951 and January 7, 19525 and in meetings of the lend-lease delegations of the two Governments since January 1951, the offers of the Government of the United States early in the settlement negotiations to sell lend-lease merchant vessels and a number of lend-lease naval craft were expressly conditioned upon the prompt conclusion of a satisfactory lend-lease settlement. When in January 1951 the Soviet Government had not arrived at a settlement of its lend-lease obligations the Government of the United States withdrew these offers and requested the return of all lend-lease vessels. Furthermore, it had become unmistakably clear from the history of the negotiations that the Soviet Government had consistently avoided the conclusion of a prompt settlement.

With respect to the question of a financial settlement the note of the Acting Secretary recalled that the Government of the United States had offered to accept the sum of $800 million which it considered fair and reasonable compensation for the vast quantities of civilian-type lend-lease articles remaining in Soviet custody at the end of hostilities, but that in the interest of achieving a settlement, the Government of the United States was willing to reduce further this amount provided that a truly constructive offer were made by the Soviet side. It was again emphasized that the United States considered the Soviet offer 1 Department of State Bulletin, Jan. 11, 1954, pp. 44–45. The aide-mémoire was handed to Ambassador Zaroubin by Under Secretary Smith.

2 Supra.

Quoted in part in the U.S. note of Apr. 6, 1951; supra, doc. 52. 4 Supra, doc. 52.

Supra, doc. 54.

of $300 million to be far from fair and reasonable compensation for the residual lend-lease articles and it was pointed out furthermore, that the Government of the United States had to take into account the fact that by not returning the 186 naval craft and other vessels requested, the Soviet Government was in clear default of the very agreement under which negotiations have been carried on since April 1947. The note of the Acting Secretary of State affirmed that it is therefore the position of the Government of the United States that when the Soviet Government has made arrangements to fulfill its obligations under Article V of the Lend-Lease Agreement of June 11, 1942, the Government of the United States in the interest of a settlement, will be prepared to make further proposals concerning a financial settlement.

On March 20, 1953 a further note 1 was sent to the Embassy of the Union of Soviet Socialist Republics inquiring when a reply to the note of November 5, 1952 might be expected. No replies to either of these notes have been received by the Government of the United States. As His Excellency is aware, more than six years have elapsed since the beginning on April 30, 1947 of the negotiations for a settlement of the obligations of the Soviet Government under the Lend-Lease Agreement of June 11, 1942. Accordingly, the Government of the United States requests that it be advised at an early date of the intentions of the Soviet Government with respect to the return of United States-owned lend-lease vessels as required under Article V of the Agreement of June 11, 1942.

58. NOTE FROM THE UNDER SECRETARY OF STATE 2 TO THE SOVIET AMBASSADOR AT WASHINGTON,3 NOVEMBER 24, 1953 +

EXCELLENCY: I have the honor to refer to your note No. 13 of October 20, 19535 concerning the negotiations for a settlement of the obligations of the Government of the Union of Soviet Socialist Republics under the Master Lend-Lease Agreement of June 11, 1942.

The Government of the United States notes that the Soviet Government has again stated that it is prepared to return the 186 naval craft initially requested by this Government on September 3, 1948. The Government of the United States also notes that the Soviet Government states it is now willing to discuss the technical arrangements for the transfer of these vessels to the United States. Accordingly, it is proposed that representatives of our two Governments meet on December 15, 1953 at the Department of State to work out the details for the return of these vessels to the United States.

1 Not printed.

2 Walter Bedell Smith.

* Georgi N. Zaroubin.

Department of State Bulletin, Jan. 11, 1954, pp. 45-46.

Ibid., p. 45.

Text quoted in part in U.S. note of Apr. 6, 1951; supra, doc. 52.

The Government of the United States would appreciate being advised at the earliest possible date whether the above date is acceptable to the Soviet Government.

Accept, Excellency, the renewed assurances of my highest consideration.

59. AIDE-MÉMOIRE FROM THE DEPARTMENT OF STATE TO THE SOVIET EMBASSY AT WASHINGTON, DECEMBER 24, 1953 1

In its note of November 5, 1952,2 the Government of the United States pointed out that the Soviet Government, by its failure to return the 186 naval craft and other lend-lease vessels requested by the United States, was in default of the very agreement under which lendlease negotiations have been carried on since April 1947. The Soviet Government was advised that it is therefore the position of the Government of the United States that when the Soviet Government has made arrangements to fulfill its obligations under Article V of the LendLease Agreement of June 11, 1942, the Government of the United States in the interest of a settlement, will be prepared to make further proposals concerning a financial settlement.

The Soviet Government in its note of October 20, 19533 again stated that it has agreed to return the 186 naval craft and also stated that it is willing to discuss the technical arrangements for the transfer of these vessels to the United States. Accordingly, the United States proposed in its note of November 24, 1953 that representatives of the two Governments meet on December 15, 1953 at the Department of State to work out the details for the return of the 186 naval craft to the United States. His Excellency, the Ambassador of the Union of Soviet Socialist Republics, replied by note on December 3, stating that the Soviet Government was in agreement with the proposal of the Government of the United States that representatives of the two Governments meet on December 15.

From these exchanges of correspondence it was the expectation of the Government of the United States that working groups of the two Governments would meet on December 15 to work out the details for the return of the 186 naval craft to the United States. However, on December 14, His Excellency advised the Acting Secretary of State that the Soviet Government desired to deal simultaneously with all of the issues in the lend-lease negotiations including the return of the 186 naval craft to the United States. The Acting Secretary replied that the Government of the United States favored a step-by-step approach but nevertheless undertook to consider the Soviet position. Subsequently an officer of the Soviet Embassy informed the Department that it was the position of the Soviet Gov

1 Department of State Bulletin, Jan. 11, 1954, pp. 46–47.

2 Supra, doc. 56.

Departinent of State Bulletin, Jan. 11, 1954, p. 45. 4 Supra.

5 Department of State Bulletin, Jan. 11, 1954, p. 46.

ernment that the meeting scheduled for December 15 should be cancelled.

The Government of the United States has carefully considered the position of the Soviet Government and has concluded that the various questions should be dealt with on a step-by-step basis. In reaching this conclusion, this Government has been guided by its belief that adherence to the terms of the Lend-Lease Agreement of June 11, 1942 can best contribute to the creation of the mutual understanding necessary to the negotiation of a final lend-lease settlement agreement. With respect to the question of the 186 naval craft, the Government of the United States has taken into account the fact that the return of these craft was requested initially on September 3, 1948,1 more than five years ago, and that at no time were these vessels offered for sale to the Soviet Government. Furthermore, Article V of the LendLease Agreement of June 11, 1942 provides unconditionally that the Soviet Government shall return lend-lease articles to the United States when requested to do so by the President of the United States. Accordingly the return of lend-lease vessels requested by the President of the United States is not an issue for negotiation nor can it be made dependent upon the resolving of other questions in the lend-lease negotiations.

It is the position of this Government, therefore, that the first step should be the working out of detailed arrangements for the return of the 186 naval craft. In this connection, the United States working group previously designated for this purpose will be prepared to meet at the earliest convenience of the Soviet representatives. Following the working out of such arrangements the two Governments should be prepared to take up the remaining matters under the Lend-Lease Agreement.

60. STATEMENT BY THE DEPARTMENT OF STATE,

MARCH 26, 1954 2

Agreement was reached on March 26 with representatives of the Soviet Government on the dates and procedures for return to U. S. control of 38 small naval craft loaned to the Soviet Union under the World War II lend-lease program.3 The 38 craft, consisting of 12 motor torpedo boats and 26 submarine chasers, are to be returned at the port of Istanbul during the months of May and June 1954.

These craft are part of a group of 186 naval craft, the return of which the United States first requested on September 3, 1948. The Soviet Government agreed to return the 186 craft on October 20, 1953, and on December 28, 1953, representatives of the two Governments began to work out the necessary details for the return of the craft.

Discussions are continuing on the ports, dates, and procedures for the return of the other 148 naval craft.

In a note quoted in part in the U.S. note of Apr. 6, 1951; supra, doc. 52. 2 Department of State Bulletin, Apr. 12, 1954, p. 563.

TIAS 2990; 5 UST 1067.

61. STATEMENT BY THE DEPARTMENT OF STATE,

DECEMBER 23, 1954 1

1

The Soviet Government has agreed on the dates and procedures for the return to U. S. control of 27 small naval craft loaned to the Soviet Union under lend-lease during World War II. The 27 craft, consisting of 4 submarine chasers, 8 motor torpedo boats, and 15 landing craft (infantry), are to be turned over to U. S. Navy representatives at the port of Maizuru, Japan, during the months of June and July 1955.

These craft are part of a group of 186 naval craft, the return of which the United States first requested on September 3, 1948. The Soviet Government agreed to return the 186 craft on October 20, 1953, and on December 28, 1953, representatives of the two Governments began to work out the necessary details for the return of the craft. In May and June 38 naval craft, consisting of 12 motor torpedo boats and 26 submarine chasers, were returned to U. S. Navy control at the port of Istanbul, Turkey.

Discussions are continuing on the ports, dates, and procedures for the return of the other 121 naval craft.

62. STATEMENT BY THE DEPARTMENT OF STATE,
MAY 27, 1955 2

On May 26 representatives of the U. S. and Soviet Governments signed an agreement on the dates and procedures for the return to U. S. control of 62 small naval craft loaned to the Soviet Union under lend-lease during World War II.3 The 62 craft, consisting of 6 submarine chasers and 56 motor torpedo boats, are to be turned over to U. S. Navy representatives at the port of Kiel, Germany, during the months of July and August 1955.

These craft are part of a group of 186 naval craft, the return of which the United States first requested on September 3, 1948. The Soviet Government agreed to return the 186 craft on October 20, 1953. On December 28, 1953, representatives of the two governments began to work out the necessary details for the return of the craft.

In May and June 1954, 38 naval craft, consisting of 12 motor: torpedo boats and 26 submarine chasers, were returned to U. S. Navy control at the port of Istanbul, Turkey. Twenty-seven other craft, consisting of 4 submarine chasers, 8 motor torpedo boats, and 15 landing craft (infantry), are to be returned at the port of Maizuru, Japan, during the months of June and July.

Discussions are continuing on the ports, dates, and procedures for the return of the remaining 59 naval craft.

1 Department of State Bulletin, Jan. 10, 1955, p. 52.

2 Ibid., June 13, 1955, pp. 969-970.

3 TIAS 3384; 6UST 3825.