TELEGRAM 178
London, October 11, 1941
MOST SECRET. Following for your Prime Minister. Begins. Thank you for your telegram October 4th, No 206.
2. Information as to results of the Moscow Conference is being sent to you through United Kingdom High Commissioner.
3. You will see that the Russians have asked for 200,000 tons of wheat which we presume to be a monthly requirement. We understand that the Russians have been advised that wheat can be obtained in open market in Canada. Nevertheless in view of great importance which is attached to shipments starting immediately, Ministry of Food has made arrangements to buy 40,000 tons of Canadian bagged wheat at once. We have not yet been able to discuss terms of payment with the Russians, but as we are acting as agents for them in this purchase, we assume that terms will be the same as in the case of transactions likely to be completed within six months, Russia will give irrevocable letters of credit in United States dollars and that as regards transactions extending over a longer period Russia will pay 30 percent down and remainder cash against documents all in United States dollars.
4. We will consult you further regarding arrangements for wheat purchase. Meanwhile we should be inclined to suggest, on assumption that financial difficulties can be avoided that it might be preferable for further purchases to be handled in the same way by Ministry of Food. We should be grateful for views on this suggestion which might, it is felt, facilitate coordination. It will be appreciated that in view of the magnitude of Russia’s demands it may be necessary for shipping reasons for part of their requirements to be drawn from sources other than Canada. Ends.
