840.50 UNRRA/8–645: Telegram

The Acting Secretary of State to the Ambassador in the United Kingdom (Winant)

6627. For Clayton. Discussions have been had with Acting Secretary48 and Acheson on questions raised in your 7910 of August 6. Will advise further if Secretary upon his return has additional comments.

We believe it very unlikely that additional contributions to cover Russian request, together with other planned operations, could be obtained from Congress. It is important therefore if entire program is not to be jeopardized that Russian request be either withdrawn or otherwise disposed of prior to presentation of UNRRA program to Congress.

You may, if you believe it advisable, convey to Russian UNRRA delegation anticipated difficulty in securing from Congress UNRRA contribution containing funds for Russia in view of their strong foreign exchange position, other assistance from Eastern European countries, receipts from reparations, and possibility of credits from Ex-Im Bank and World Bank.

Our goal should be to avoid approval by the Council of an operating budget containing Russian program. Department believes you [Page 1006] should decide, in light of discussions in London, whether our objective can best be obtained by attempting to secure an immediate decision by [Sub] committee under Resolution 23 adverse to Russian claim as a non-paying government, or by attempting to delay decision in hope that Russians can subsequently be persuaded to withdraw their claim or a decision adverse to them later obtained under Resolution 23.

We agree that Russians should be advised that Ex-Im Bank is now in position to go fully into proposals which they may put forward. We are asking Harriman to make such a suggestion to them. Simple announcement that he has discussed matter with them will be made here when we receive word from him that he has done so.

Repeated to Moscow for appropriate action and report as 1760.

Grew
  1. This telegram was drafted by Dallas W. Dort, Adviser in the War Areas Economic Division.