Foreign Relations of the United States: Diplomatic Papers, 1945, General: Political and Economic Matters, Volume II

840.50 UNRRA/8–2245: Telegram

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

London, August 22, 1945—8 p.m.
[Received 9 p.m.]

8544. My telegram 8499, August 22.⁷⁷ For the Secretary, Thorp, Phelps⁷⁸ and Wilcox⁷⁹ from Clayton. Following my telephone conversation with you Monday⁸⁰ events in the United Nations Relief and Rehabilitation Administration Council have rapidly come to a head. The Council today formally approved the Italian and Austrian resolutions⁸¹ as passed yesterday in the committee on policy. The Council will tomorrow consider the question of Korea, the enlargement of the Central Committee and the report of the Committee on Financial Control regarding the auditors report.⁸² The major issue of additional contributions regarding which no proposals have yet been made in any committee meeting is scheduled to be taken up Friday⁸³ which will be the concluding day if all goes well.

Meanwhile I have been in constant touch with the Russians, British and Canadians regarding the Russian request for 700 million dollars and its relation to additional contributions. The Russians recognizing I believe that they could not get definitive action here have privately suggested several resolutions which would leave the door open for them to press their case subsequently in United Nations Relief and Rehabilitation Administration and the Central Committee. Moreover they have shown signs of weakening with respect to the full 700 million dollars.

The British, Canadians and we have prepared as a final position the following documents which carry out the proposal which I outlined to you on the phone:

1. Draft resolution on further contributions.

[Here follows text of a draft resolution on further contributions to UNRRA.⁸⁴]

2. Draft letter to the Soviets from the United States, United Kingdom and Canadian members of the United Nations Relief and Rehabilitation Administration Council.

“The United States, the United Kingdom and Canadian delegations have given very careful consideration to the draft resolution with respect to the distribution of United Nations Relief and Rehabilitation Administration supplies which you handed to us 2 days ago and which we discussed with you last evening.

We have concluded that this matter might best be handled in the over all resolution on additional financial contributions which must be adopted by the Council if activities of United Nations Relief and Rehabilitation Administration are to be continued and completed.

There is attached a copy of the draft resolution which we have prepared in order to make it possible for the three of us to recommend to our respective Govts that they each make available their share of the requisite funds.

As we indicated in our conversation last evening we believe it absolutely essential if we are to obtain the money that our Govts should be able to demonstrate to their legislatures that there will be provided a more effective type of control over the use of these funds than has existed in the past.

It is our understanding that if this resolution is adopted by the Council the application of the United Soviet Socialist Republics for United Nations Relief and Rehabilitation Administration assistance will after the Council meeting be replaced by applications on behalf of the Ukrainian and Byelo Russian Soviet Socialist Republics. These new applications will of course be considered by appropriate committees to be established in accordance with Resolution 23. We are satisfied from what you have told us that the facts will permit the United States, United Kingdom and Canadian representatives on such committees if the additional funds contemplated in the resolution are made available by the three principal subscribing govts to support the eligibility of the two republics for receipt of free assistance in the amount of 250 million dollars for the two together.

We need hardly assure you that we are making this proposal because in our opinion it is the only one which will enable us to secure further funds for United Nations Relief and Rehabilitation Administration and also to provide the assistance referred to in the previous paragraph.

We hope therefore that you and your Ukrainian and Byelo Russian colleagues will be able to accept the arrangements set out in this letter and that therefore you and they will be able to associate yourselves with the passing of this financial resolution through the Council.”

3. Draft reply by the Soviets.

“I wish to inform you that we have considered the letter of August 22 signed by the members of the United Nations Relief and Rehabilitation Administration Council representing the United States, the United Kingdom and Canada and that we will support the resolution on additional contributions to United Nations Relief and Rehabilitation Administration which was attached to that letter.

You are further informed that I have consulted with the delegates of the Byelo Russian and Ukrainian delegation and we accept your suggestions of action on applications for assistance from United Nations Relief and Rehabilitation Administration.”

Only the draft resolution has been handed to the Soviets this afternoon. Recommendation 4 is an effort to meet their proposed texts and we have indicated that we would gladly drop it. We all set a great deal of importance on recommendation 2.

I have made it entirely clear that our support of such a resolution in the Council is subject to our reaching a private understanding with the Soviets regarding their request for United Nations Relief and Rehabilitation Administration assistance, and that any additional United States contribution is of course subject to congressional action. I then orally outlined the proposal regarding up to 250 million dollars for the Ukraine and White Russia as contained in the draft letter to Sergeev. I stated that I could not make such a draft letter to Sergeev. I stated that I could not make such a proposal definitely without your approval and that while you knew in general of my views regarding such a proposal you had expressed neither approval nor disapproval. The British told the Soviets that they also would have to receive ministerial approval. (Following the receipt of the information regarding continued shipments from the Lend Lease pipeline pending mutual agreement on terms contained in your 7056 of August 20⁸⁵ Bevin and Dalton have as a matter of fact somewhat reluctantly approved full British participation in additional contributions of one percent to United Nations Relief and Rehabilitation Administration provided the above resolution and proposal regarding 250 million dollars are accepted by the Soviets. The Canadians have full authority to accept these arrangements.)

The Soviets at first argued about the 700 million dollars; then tried to broaden recommendation 4; but finally as we remained firm agreed to cable to Moscow our final position provided that I would simultaneously request your approval to make my proposition definite in the event of Moscow’s agreement and that the British would also seek ministerial approval. It was agreed that we would all seek definitive instructions by Friday morning London time.

It is my belief and that of the British and Canadians that the Soviets are definitely weakening and probably will agree to trade on the basis we put forward. I accordingly request authority to make the arrangement which I have outlined above provided the Soviets agree. [Clayton.]

Winant

77. Not printed.
78. Presumably Dudley M. Phelps, Chief of the Division of Foreign Economic Development.
79. Clair Wilcox, Director of the Office of International Trade Policy.
80. August 20.
81. For discussions concerning Italy and Austria, see Journal of the Third Session of the Council, pp. 100–117; texts of the Resolutions approved by the Council, Nos. 73 and 74, are in Woodbridge, UNRRA, vol. iii, pp. 143–144.
82. See Journal of the Third Session of the Council, pp. 120–122.
83. August 24.
84. The text of this draft was virtually identical with Resolution 80 as passed by the Third UNRRA Council. For the introduction of the resolution by the U.S. delegate and the discussion prior to the vote, see Journal of the Third Session of the Council, pp. 123–130; text of Resolution 80 is in Woodbridge, UNRRA, vol. iii, p. 146.
85. Printed in vol. vi , section under United Kingdom entitled “Continuation of informal and exploratory discussions regarding postwar economic policy …”