File No. 861.00/812

The Consul General at Moscow ( Summers) to the Secretary of State

[Telegram]

116. The system of workmen’s control to be instituted in all factories in Russia practically deprives directors or owners of any management of their property. The eventual nationalizing of such plants will cause incalculable losses both to Russian and foreign interests and will curtail if not stop all production. It can be easily seen that Germany will profit by this paralyzation. I am handling each concrete case where American interests are involved energetically as possible with a view to protecting their interests but fear that the general decree of nationalization and control will eventually be carried out. I may likewise add that the Soviets, Moscow, manifest a desire not to create international difficulties for which reason I am unofficially impressing upon them the danger of the proposed measures.

Summers