Potsdam Conference (TERMINAL)

U.S. State Department (July 16, 1945)

871.6363/6-2945: Telegram

The Acting Secretary of State to the Chargé in the Soviet Union

Washington, July 16, 1945 — 5 p.m.
Secret
us urgent
1621

Embassy may have received Dept’s Instruction No. 678 of July 2 containing purported text Russo-Rumanian economic agreement of May 8 summarized in Bucharest’s tel May 17 reported [repeated?] to Moscow as 97. Dept’s A-276 June 29 contains instructions for protest to Soviet Govt on removal of oil equipment from Rumania and gives general guidance for further discussions with Soviets on petroleum matters. Bucharest’s telegram of July 8 repeated to Moscow as 121 indicates possibility of new “fait accompli” based on agreement of May 8.

Dept now feels that strong presentation of views of this Govt both about the economic pact and the oil arrangement foreshadowed in Bucharest 121 to you should not be delayed pending receipt of A-276. You are therefore requested immediately inform appropriate Soviet authorities of this Govt’s concern over the possible application of the Russo-Rumanian trade pact in view of the policy of United States Govt of conducting trade with every nation free of discrimination arising from exclusive economic arrangements between nations, and also in view of our common interest in an equitable allocation of products in short supply in reconstruction period during which Soviet presumably wishes United States’ cooperation.

Please further inform Soviet authorities that conclusion of any arrangement affecting Rumanian oil or other industries such as indicated in Bucharest 121 July 8 would by same token be of equal concern to this Govt and should be deferred pending forthcoming tripartite discussions. This issue and the principles involved therein are on the United States agenda.

With specific reference to petroleum, please point out sacrifices accepted by American people in rationing of fuel oil and gasoline substantially restricting their military, industrial, and civilian consumption and sacrifices accepted by U.S. oil industry in allocation of equipment to the USSR. You should point out that oil picture in Rumania is only one aspect of a worldwide problem and that conclusion of treaties granting exclusive rights and of monopolistic corporate arrangements between Soviet and Rumanian Governments as well as arbitrary measures such as removing equipment, monopolizing petroleum supplies and delaying entry of American petroleum experts may force the United States to reconsider its policies which have hitherto been so favorable to Soviets with respect to supplying petroleum, technical data, equipment and products.

Please inform Harriman.

Repeated to Bucharest as 354 of July 16.

GREW
J[OHN] A. L[OFTUS]