File No. 861.00/1934

The Consul at Moscow (Poole) to the Secretary of State


578. In peace negotiations at Kiev Ukraine has stipulated the following fundamental conditions:

Establishment new line of demarcation;
Free transit for Ukrainians out of Russia with their property, including money and securities;
Restitution within fortnight of railway rolling stock taken out of Ukraine;
Ukraine to be permitted, on the basis of reciprocity, to maintain representatives in Russia for the protection of interests of its citizens.

Consulate General informed by Commissariat Foreign Affairs that proposed new demarcation line begins in south at Bataisk just east Rostov-on-Don, follows River Don, and the northern Donets, then runs northwestward taking in cities of Valuiki, Belgorod and Rylsk, last just west of Kursk.

According to Kiev press, emissaries have arrived there from the North Caucasus representing Southeastern federation. This is federation formed in October last by the governments of the Don, Kuban, Astrakhan, etc., and reported upon at the time in connection with the Don movement. From Kiev there is also news of the formation of a reactionary Don government which will join Austro-Hungarians in driving Red Army out of that region. All this is preparatory, of course, to absorption of the Don and North Caucasus [Page 692] by the Central powers. From wording of Don government’s proclamation and the presence of Turkish and Bulgarian as well as Austrian troops in Odessa it is presumed that this further advance will be carried out by Germany’s allies while Germany attends to the Ukraine. There is discussion whether the Crimea belongs to the Ukraine or should be given to Turkey.