Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-03-11

assistance. They are as follows:
/. Supplies in the Russians p
which were in disable condition
and were of value for civilian
peacetime purposes.
Washington estimates that the
Soviets still had supplies of this
description worth $26 billion as
of VI day. 1t is asking $500
million for them. The Russians
are Offering $240 million.
2. Six hundred and seventy
two ships loaned and leased the
Soviets.
The United States is asking fol
the return of such of these vessels
as are still af1oat and in disable
condition. The Soviets have re-
turned So other vessels requested
by this country, and have &C
counted for two more, but show
no sign of intending to return
the 672.
Moscow says it wants to buy
these ships. Washington declines
to sell them.
3. Patented oil refining proc
esses which the United States
made available to the Soviets I'M
der lend-lease.
The patents are owned by seven
American companies. The Soviets
have made an agreement to COM
pensate one of the seven and are
negotiating settlements with the
six others.
Discussing First CATEGORY
The discussions now going on
here are primarily concerned with
the first of these three categories
disable civilian supplies other
than ships.
Negotiations for the return of
the ships are being conducted
mostly by means of notes ex-
changed through regular diplo-
matte channels. Discussions of
compensation for the use of the
American oil refining processes
are taking place directly between
the Soviets and the owners of the
patents.
American and Soviet represent
stives are meeting here on an
average of once a week in an
effort to work out an agreement,
but the negotiations are hopelessly
deadlocked. American officials say
they see no prospect of a settle
ment.
No real negotiations are, in
fact, going on. in any proper
meaning of the term. The United
States has submitted several pro-
posals for a compromise settle
ment, but the Soviets have refused
to bulge from the position which
they took at the first meeting of
the negotiators more than seven
weeks ago.
The Russians merely go on re-
peating their original, opening
statements and make no serious
pretense of discussing points
raised by the Americans since the
talks began. They have even re-
fused to ask Moscow for instruc-
lions for replying to the new
American proposals.
Chief American representative
In the negotiations is John C..
Wiley, one of this country's ablest
veteran career diplomats. Wiley's
last post abroad was that of
Ambassador to Iran. He has also
served in Moscow, among other
places. Principal Soviet negotiator
is Alexander S. Panyushkin, Rus
sian Ambassador here.
This country tried for almost
two years, beginning in August,
1945, to induce the Soviets to
provide an inventory of the disable
lend-lease supplies which could
be employed for civilian peace
time purpose and which were in
the Russians possession as of the
end of the war and to provide an
estimate of the value of these
supplies. The United States asked
for such information from all
recipients of lend-lease aid and
all the others furnished it. The
Russians, however, refused to do
so.
New Approach in 1947
Beginning in 1947, accordingly,
the United States tried a differens
approach. It informed the Soviets
that this country estimated the
value of the supplies in question
at $2.6 billion and asked Mos
COW to make an offer for a set
tlement.
This figure of $2.6 billion
seemed to the United States to be
a remarkably modest estimate of
the value of the supplies in ques-
ton. It appeared in quite a diff
ferent light to the Soviets, how
ever. They replied to the Amer
lean request for an offer by pro-
posing to pay $170 million in final
settlement of their account.
The Russian offer amounted to
1.57 per cent of total lend-lease
aid the Soviets had received and
6.5 per cent of the American esti-
mate of the value of the supplies
on which this country was asking
a settlement.
The United States found the
Soviet offer totally inadequate,
and told Moscow so. Washington
countered the Russian proposal
with a request for $1.3 billion
This request was made in Sep
TENDER, 1948.
More than two years of further
exchanges of views through diplo-
matte channels then ensued. Dur
ing these negotiations the United
States came down to ST. billion ir
its request and the Soviets went
up to $24O million in their offer
These were the bargaining posi-
tionS of the two governments