File No. 871.48/37a
The Secretary of State to the Minister in Rumania ( Vopicka)1
For Vopicka from Treasury:
No reply has been received from you to our last despatches relative to rendering assistance to the Roumanian Government. However, in view of the urgency of the situation and the impossibility of our now dealing directly with the Roumanian Government, the Secretary of the Treasury has to-day arranged to loan $5,000,000 to the Russian Government on condition that the Russian Government will immediately in exchange for same open a credit of 25,000,000 roubles in favor of the Roumanian Government for the purchase of food supplies in Russia which Russia agrees to furnish to Roumania to that extent. The 25,000,000 roubles shall be loaned by Russia to Roumania for three months at 4¼ per cent interest, the Russian Government having agreed with the United States Government to accept $5,000,000 and interest in satisfaction of said 25,000,000 rouble obligation at any time within said three months. This limit of time is fixed in fairness to Russia in order to protect herself in exchange, and on the supposition that within the three months specified Roumania will have a representative duly authorized to contract obligations directly with the Government of the United States, in which event this Government is willing to advance to Roumania $5,000,000 on the same conditions as advances to other Allied Governments, with which to discharge the above obligation to Russia. If, however, Roumania should prefer to maintain the loan of 25,000,000 roubles from Russia instead of borrowing $5,000,000 from this Government with which to satisfy the loan from Russia, then Roumania may arrange with Russia for continuing the loan in roubles after the expiration of the three months. The above procedure seems the most practical solution under the circumstances, and this Government because of the urgency of the situation has taken this action independently of arranging further credits and assistance to Roumania in cooperation with England, France and [Page 733] Russia, which is being taken up with those countries. Please explain the above to the Roumanian Government, and also that the Secretary of the Treasury is endeavoring to obtain through England the equipment for the Roumanian Army requested in your despatch No. 139,1 in order that said supplies may reach Roumania quickly.