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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 624

bombing planes, and pursuit planes, number unknown. Lits 2,000,-
000 was allotted Great Britain by the Armament Department for the
purchase of anti-aircraft guns from Vickers (erroneously reported
previously as having already been purchased from Schneider), and
auxiliary equipment, consisting of height finders and anti-aircraft
  In further elaboration of the operation of the program, Mr. Garsva
explained that, the Ministry having decided from which countries
purchases in 1934 would be made, steps would immediately be taken
by his department with those countries whose balance of trade were
unfavorable to Lithuania to force them to make some concession. In
the case of Germany, for instance, which has been allotted Lits 3,900,-
000 in military equipment purchases alone in 1934, Mr. (iarsva stated
that the Lithuanian Government would demand that Germany take
Lithuanian butter to an equal amount. This procedure would off-
set the virtual stoppage in butter exports to Germany which took
place recently as a result of political reprisals.
  In view of the fact that the preparation of such a program as out-
lined by Mr. Garsva anticipated purchases from specific countries
he was asked if a government department would be permitted to pur-
chase from a different country than foreseen and what effect the bid-
ding would have. HIe stated that bids were not always called for
if the purchasing department had already arrived at a decision, but
that, nevertheless, even where bids were called for the department
had the right to make purchases elsewhere with the approval, of
course, of the proper authorities.
  Mr. Garsva's attention was then called to the fact that several
American firms were desirous of participating in the bids on Govern-
ment contracts in 1934. He discreetly stated that it was entirely up
to the American firms to offer something in the way of compensating
exports such as other foreign firms were doing.
  It was pointed out to Mr. Garsva that since there were no restric-
tions in the United States on imports and exports with the exception
of alcoholic beverages, it was impossible for an American firm to
obtain guarantees from its government to buy Lithuanian products.
He replied to this that large American manufacturers desiring to sell
their products in Lithuania or rather to compete in government bids
should be able with their wide contracts to import Lithuanian goods
themselves for distribution in the United States, but if this was im-
possible then it was up to the United States Government to conclude
a trade agreement with Lithuania such as was recently concluded
with Denmark whereby the foreign trade between the two countries
would be balanced every six months. Similar agreements are now
being negotiated with other countries. Mr. Garsva stated that an

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