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DECLASSIFIED E.O. 11652, Sec. 3(E) and 5(D) or (E) STATE KOCAN TO GUSTARTON GSD letter, May 3. 1972 1-2072 MOOT By NO.GC NARS Date 6-29-76 The July 24, 1945. My dear Mr. President, I thank you for your memorandum of July 17. I am pleased that you say the Agreement made in Washington last autumn stands. We have never, of course, regarded the munitions schedules as absolutely rigid. Indeed I am told that our munitions requirements have already been scaled down from the 2.8 billion dollars agreed last autumn for the first year of Stage II to 1.8 billion, and that all these items are within the terms then arranged. Unfortunately the Departments in Washington have recently been insisting that nothing can be delivered save what is needed for direct use against Japan, and interpreting this in the narrowest possible sense; this has reduced munitions supplies almost to vanishing point, and has put us in a very difficult position. Much as I dislike tiroubling you with technical questions of this kind at the present time, it is urgently

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