File No. 600.001/25
The Ambassador in Russia (Francis) to the Secretary of State
[Received July 24.]
Sir: In another communication I have given you an account of some matters discussed with M. Sazonov in an audience granted me at the Foreign Office this afternoon.
I suppose you have read in the public prints of the United States the action of the economic conference of the Allies held in Paris June 20–23 [June 14–17?]. I took up, that subject with M. Sazonov, whereupon he gave as his judgment that the conference had been a great success. When I told him that I had seen no official proclamation of the resolutions adopted, he said he would send me a copy of them.
I told him that judging from what I had read through translations from the Petrograd papers the conference appeared to me to be an offensive and defensive alliance between the Allies to the exclusion not only of belligerents, but of all neutral countries. He again disclaimed any intention on the part of the Allies to exclude America from any commercial relations with Russia, as he did upon a previous occasion of which you were advised.
When I called his attention to some provisions of the resolution to the effect that any surplus an Allied country might have would not be subject to purchase by belligerent countries nor by neutrals until the other Allied countries’ wants, if any, should be met, he answered by stating that the action of the conference was not binding as yet, but merely recommendatory. I should be pleased to have your views concerning the action of this conference and also your instructions or suggestions as to the course I should pursue in that connection.
The object of the conference was undoubtedly to establish a closer blockade around the Central powers and to prepare for a continuance thereof in industry and commerce after the close of the war. The editorial in the Novoe Vremya of to-day, copy of which is forwarded [Page 982] under separate cover, charges by implication that America is planning to secure commercial advantage out of this war without participating therein, and consequently without any sacrifice of blood or treasure. The expressions in President Wilson’s speech delivered to the League to Enforce Peace, May 27, in Washington, have been misconstrued by the European press and consequently have been misunderstood by many in Russia, and apparently by many in France and England also. That speech, however, according to reports in American papers of May 28/June 1, the last received, seems to have met with favor and elicited widespread commendation in the United States.
M. Sazonov expressed great gratification at the consummation of the $50,000,000 loan made by American bankers to Russia, saying he hoped it would be the beginning of much larger financial transactions between the two countries.
I have [etc.]