861.24/713d: Telegram

The Secretary of State to the Ambassador in the Soviet Union (Steinhardt)

1189. 1. About 2 months ago we indicated to the Soviet Government that the American Government would be prepared to approve the construction in the United States and the export to the Soviet Union of certain plants for the refinement of oil. Since that time there have been numerous conversations among American manufacturers, officials of this Government, and Soviet technicians. Unfortunately little progress has been achieved in the direction of the [Page 854] completion of the plans for the construction of these plants. This situation is due primarily to the fact that (a) plants of the type under consideration are extremely intricate and represent the latest developments in refining technology—some of them are barely past the experimental stage; (b) it would be impossible without incurring considerable losses in time and material to construct such plants unless the manufacturers are in possession of precise and detailed data with regard to the conditions under which they are to operate; and (c) the Soviet technicians in the United States are unable to furnish such data to a satisfactory extent.

2. New demands made upon the United States for the furnishing of large quantities of aviation gasoline and for the immediate construction of aviation gasoline refineries in strategic locations in which they are urgently needed in connection with the carrying on of the war have resulted in a shortage of manufacturing facilities, technicians, and materials necessary for the construction and erection of oil refining plants. It is, therefore, necessary that all of our efforts be concentrated on projects immediately essential to the common cause and that every precaution be taken to prevent wastage resulting from miscalculation, errors, or insufficient knowledge.

3. In order that the plants of the Soviet Union be constructed with the least possible wastage, it is suggested that before any construction work be undertaken arrangements be made for an American expert refinery technologist to proceed to the Soviet Union to study conditions on the spot and to obtain such detailed information as may be necessary for the working out of designs which will insure satisfactory performance. This expert should be accompanied by at least one engineer experienced in the field construction of such plants to assist in developing information concerning numerous details entering into design, fabrication, shipment, field erection, local transportation, availability of materials, of skilled labor, and of construction equipment, etc.

4. Our suggestion is that these experts be selected by the appropriate American authorities with the approval of the Soviet authorities and that they go to the Soviet Union as employees of the Soviet Government with the understanding that they are to be furnished with all the data that they require and be permitted personally to make such inspections and investigations at the proposed sites of the plants as they may consider necessary to the complete success of their mission.

5. Immediately upon receiving the necessary information from the experts plans should be drawn up in the United States with the advice and assistance of American engineers nominated by this Government for the construction and erection of the plants in question following which the Soviet purchasing organization in the United States would [Page 855] be in a position to enter into contracts with American firms specializing in the manufacture and installation of oil refineries.

6. In your discretion please set forth the views and suggestions contained in this telegram to the appropriate Soviet authorities and ask if they contemplate issuing instructions to Soviet representatives in the United States which would make it possible for these suggestions to be carried out.

7. The contents of this telegram are also being conveyed to the appropriate Soviet purchasing agencies in the United States.

Hull