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United States Department of State / Foreign relations of the United States diplomatic papers, 1934. Europe, Near East and Africa

Lithuania,   pp. 620-626 PDF (2.7 MB)

Page 623

He was then informed that the Consulate had received several com-
plaints during the past few months from local importers of American
goods, for the importation of which a license is not even required,
and that in one instance at least one government purchasing depart-
ment had rejected the bid of the local agent of an American automobile
manufacturer in favor of the British-made Morris, although the price
of the latter was considerably higher. To this, Mr. Garsva replied
that other factors must have entered into the purchase since his depart-
ment had issued no instruction to the bureau concerned or to any other
and, since all contemplated government purchases come through his
office for checking against individual countries, he would have been
aware of any discrimination.
  I then mentioned that information had, however, been received
that both the Aviation Department and the Military Technical
Supply Department had intimated that they would be unable to pur-
chase American material in 1934 in view of the demand to buy Brit-
ish goods-regardless of price or quality-unless the American manu-
facturer were in a position to offer some form of compensation in
regard to exports from Lithuania. Mr. Garsva stated that this as-
sertion belied the facts since each government department was re-
quired to submit a program at the beginning of each budget year re-
garding the purchases it contemplated making and from which
countries. This program must be approved by his department as
well as by other pertinent authorities.
  To prove his point, Mr. Garsva exhibited a table which had been
prepared by the Lithuanian Ministry of National Defense showing
its contemplated purchases in 1934 by countries and departments.
  Although I was not given an opportunity to memorize the plan,
nevertheless sufficient time was had to confirm the information which
Mr. Garsva himself had divulged that the Ministry of National De-
fense contemplates purchasing from abroad in 1934 approximately Lits
20,000,000 worth of war materials of which 50 per cent will be pur-
chased by the Armament Department and 25 per cent by the Aviation
Department. Of the total sum, Great Britain has been allotted ap-
proximately Lits 6,500,000, Germany Lits 3,900,000 and the United
States, Lits 200,000. The balance of the purchases are divided be-
tween about 10 other countries, principally Czechoslovakia and
France. The sum allotted to the United States represents purchases
to be made by the Armament Department. Of the total purchases
by the Aviation Department, aggregating about Lits 5,000,000, it is
understood that Great Britain has been allotted Lits 4,500,000.
  From other sources it has been ascertained that the appropriation
allotted the Aviation Department in 1934, the largest in many years,
is for the purpose of acquiring eight airplane motors, two to four

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