File No. 871.51/53
The Secretary of State to the Ambassador in Russia ( Francis)
1675. Your 1640, August 17. Referring to your statement that “should we grant such a credit, most or all of it would be expended in the United States or in Russia,” it appears that lack of transportation, both by land and sea, render impossible the sending of any materials from the United States to Roumania for delivery within a practicable period. The Secretary of the Treasury, however, desires to know what, if any, materials were contemplated by the above-mentioned reference to the United States. Further, as to purchases in Russia, reports from the members of the Root mission indicate that nothing can be had in Russia for Roumanian consumption except wheat or other grains, and it is desired to know whether it is not possible for the Russian Government to extend the necessary credit for this purpose or whether it cannot accept, upon satisfactory terms, the paper money of the Roumanian Government with the necessary paper roubles to make wheat purchases. It is most important that whenever possible European belligerents should use European money for European purchases, thus diminishing the already enormous demands on the Treasury of the United States. If, however, it should appear after due consideration that the Roumanian Army must have Russian wheat and cannot get it save through the purchase by the American Government of Russian roubles, two questions remain concerning which the Secretary of the Treasury desires information and advice: (1) what is the best method of making such purchase of roubles and the figure at which it would be accomplished; and (2) what organization can be formed in Russia and Roumania to control the expenditure of funds thus put at the disposal of the Roumanian Government. If American officers are available for going to Roumania and staying there, it is probable that they should act in connection with English and French representatives.
[Page 727]It is also important to know whether Roumanian diplomatic representatives expect to be in Washington at an early date, as no loans can be made except against obligations of a belligerent Government, and these must be drawn in specific form and be fully authorized. It is possible but not at all desirable that these obligations be signed elsewhere than in Washington.