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HOTES CONCERNING SOVIET AID FBOQRMC I. a&INNIMG Off f HOGRAM Oil July 2X # 1941 the President wrote General Burns asking him to coordinate the Soviet Aid Program, Re created the toriet Supply Division far this purpose • The present Division is the expanded form of the original organization* The work front July to November 7, 1941 was concentrated on obtaining priorities for cash purchases and on scrutinising programs with other Government Agencies• XI> HQSCOW CONFERENCE A On October 1, 1941 Mr* Harriman and Iij^ ^ ^ e r b r o o k signed the Moscow Protocol whieh was the first supply agrejM&t* T ^ s Protocol was prepared for two reasons, (1) to indicate to titf/Byj•3*a« ih# determination of the U.K. and the U. S* to support it In i U resistance to Hitler and (2) to provide * flra schedule which might ^.preaanted to all U« 3« Supply Ageadies and eliadnate the need for tnx^wSMM^m^jeig of Soviet requirements by ^goncies which were still dp^S^ElbL of Soviet need and possibility to continue resistance. |( y\ III> IMD-l&kSE FHA3E BlfeNS ^ On November 7$ 19iX'<^^taid*nt declared the defense of the U«S«S»R» essential to the defense of^Che U* S. The U«3«S«R* was not, however, put under the Lend-Lease Act the same way as Britain had been* Repayment of Lend-Lease credits was a condition of Soviet participation* The credits were granted to the extent of $1 # 000 # 000 # 000 repayable over a period of years* IT* MASTER AQRRJKffiT On June 11, 1942 the U«S*S*E. signed a Master Agreement along similar lines to that signed previously by the U.K. An exchange of notes was attached making the Agreement retroactive to the beginning of the LendLease Period, so that there was no precise obligation to repay as hod been previously arranged* ~ 2 ~ y» SJCOHD fflOTOCOL Whan the First Protocol expired am June 30* 1942 # * Second Protocol was negotiated and pat into force• the First Protocol was performed more than 100$ if tonnage is used as the criterion. Certain items originally promised were not delivered, however, but substitutions were accepted. The Seeond Protocol was not completely fulfilled* due primarily to unexpected shipping difficulties which developed In connection with the German activities along the Northern Koute and prevented continuation of convoys. ?I» THIRD^ PROTOCOL The Third Protocol was Inaugurated on July I, 1943 &nd la still in effect. Tonnage commitments of this rrotocol have been more th&n performed up to the present date. The President has ordered, however, that shipments continue to the full capacity of the routes, e$en though tonnage commitjaents have already been iaet# flit THK PROTOCOL CQMMITTKB On October 25 # 1942 the Fresi^NN^6reated a Soviet Protocol Cos*~ mittee under the chairmanship of Mr« Hs&klruu This GoirodLttee was made necessary because of the i n t e K ^ ^ ^ & sevwtal Government ^apartiaenta which required coordination in one plaoe/\aue to tha fact that similar items lalght be requested by the U#Siaj^yyram dii'Hermit Departfaant^ ^^4 ao unified program would ba^^ssioi^Miriihout coordination* Coordination was also necessary becarae o£^the shipping program, since production had to be controlled in ali^Agenajes if stocks were not to accumulate beyond expectations* x ^ / The Coasmlttee has representatives from the Sferf llavy# Agricultur«ij| Treasury and State Departaenta, the *tr Production Board, Petroleum Administratlon for far, War Shipping Adainiatration, the Maritime Comi-L^sion, the Office of Defense Transportation and th^ Foreign Economic Adodxdstoi* tion, *«% The Secretariat of the Comittce is provided by the Division for Soviet Supply in the Foreign Jtoepogis Administration. Due U this fact, a considerable staff is necessary, solely to prepare the records required by the Cwmittee. - nil. 3- RSUTK»»!IP WITH OTHER APS3JCIBS Due to the fact that each Agency concerned has a representative on the Protocol Comfflittee, relations between the Division and these Agencies are of a direct character* All programs are* howeverf coordinated with the functional section of the Foreign Beanon&c Adndrdstratlon concerned* so th&t the Shipping and Storage branches and the Bequire«ienfcs and food Branches of the Bureau of Supplies are fully informed at a l l times of the activities in connection with the Program* IX, ?CP,EIGN iqSSIpK There has been maintained sine** the beginning a Supply Mission in Moscow* It was originally under the ChaiwMuwULp of Colonel FaymonHlle and i s nov; under the Chainawiship of Brigadier^ General S« P* Spelling. General Splitting was originally resigned ttr^^v^d-Leaae Adc&nistmtion and directed the imrk of the Division fj» 3ovleiN^upply# He subsequently was General Burns1 principal aseistJurt^n\the Munitions ^sigaaentfi Board and supervised the Soviet r rograra tm^Ad/wkkte House. >ith MM are several officers of the Arap* and e i u u u a personnal« Attached also to the Mssion are specialists from otheil\topartmBnt3 concerned with the Supply Erogrejn as well as eng^rar^^occupiecl in constructing uvrxi~ijee.$e plant3# Ho economic rep^p*4|ig iT-oSrfe by the Mission as this i s taken care of by the State Deperta!^t# Jfoe Mission serves primarily as a service agency in exploring thb( use df American equipment and in studying transportation problems m% A^vi^*%orta nhen they relate to convoys* X.n L 3CR|ENIHG Due to the lack of information on Soviet Supply positionsf requi*» sltlons are not screened in the same manner as is cuatoimry for other Lerxl-Lease Missions* T h e screening procedure takes two forma, (1) when the Protocol Requirements are received each your and (2) when each requisition Is submitted under A category agreed upon in the Protocol. In the first instance, the agencies concerned determine supply possibilities and the Protocol Conmlttee moo these reports in reaching an Agreement on what would seem reasonable* In the second instance, the Individual requisition is screened against the Protocol cofladtaent and if the H e m clearly falls within a category* the subsequent screening relates only to the suitability of specifications from a production point of view. In the unusual ease when an itea does not seem to be lei*l-leaaeable# the mtter Is referred to the Clearance Coamittee of the Bureau for a determination . - 4XI. IMPORTS Before Lend-Lease ima extended to the U«8«S«R#* Defense Supplies Corporation made a contract with the Soviet Government represent*** lives calling for the delivery of critical materials. An advance of #50*000*000 was made against subsequent deliveries. Shipments under this Agreement have mm reached $18#000t000 in value. Those items are imported which the War Production Board, the Anqjr w the Navy request and are sold by Defense Supplies Corporation la the Aasrl&an market. Nearly every item which can be imported from the Soviet Union is included under the Agreement except for furs, caviar and some Items of minor importance, these are omitted so that the Soviet Government may obtain a sufficient dollar balance to cover Its immediate representational expenses in the United States, The value of these Items not included In the Agreement, Is approximate^ !10,000,000. When special attention Is to be given an item requested fon importation, the Mission In Moscow Is asked to aid in presenting th» matter to the Commissariat for Foreign Trade* 4/2*M
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