Dear Mr. Pearson:

It is now more than four months since Mr. Wrong wrote for the Secretary of State for External Affairs, at our request, to ask the Government of the U.S.S.R. for repayment of the amounts advanced on her behalf late in 1945 under Section 3 of the War Appropriation Act and which the U.S.S.R. undertook to repay. (Please refer to your Note No. 14, dated September 26, 1946,² addressed to the Charge d'Affaires a.i. at the Embassy of the U.S.S.R.)

While this is, of course, a matter for the most careful diplomatic consideration, so far as we know there has been no reply or even acknowledgment of this communication by the U.S.S.R., and we feel that we should not allow the subject to he neglected or forgotten. We would, therefore, suggest that a further note of an appropriately diplomatic nature be addressed to the U.S.S.R., inquiring when we may expect some action on this matter. We should be glad to assist in any way we can in framing such a note or, if you wish, in discussing the matter with appropriate representatives of your Department, perhaps making use of the presence here of Mr. Wilgress.

We shall also he writing you separately about, and might discuss in the same connection, the question of billing the U.S.S.R. for industrial equipment which they obtained' after V-P Day from the Mutual Aid Board. The U.S.S.R.. as you may recall, undertook to pay for such equipment delivered after V-J³ Day on a long term credit basis to be agreed, but it has not proven possible to agree on the terms, and we feel, in the circumstances, that they should now be asked to settle without further delay. In this instance our case is less strong than in the one referred to above, and we have not wished to complicate our better case by mixing it up with this second one. However, it seems undesirable to let this Mutual Aid settlement claim remain outstanding much longer without our making some efforts to reach a definite arrangement in connection with it.

Yours very truly,
W.C. CLARK

²Voir le volume 12, document 1257./See Volume 12. Document 1257.

³Victory-in-Japan.