File No. 861.51/387
The British Chargé (Barclay) to the Secretary of State
Memorandum
The British Chargé d’Affaires presents his compliments to the Secretary of State and has the honour to refer to the Department’s memorandum of October 22 [21]1 with regard to the proposals made by the British Government in connection with the introduction of a new currency medium in northern Russia.
The substance of this memorandum was communicated by telegraph to the British authorities, and His Majesty’s Chargé d’Affaires has now received instructions to reply that His Majesty’s Government much appreciate the action of the United States Government in withdrawing further objection to their plan for the immediate issue of a currency in northern Russia. His Majesty’s Government beg to confirm the assurances they have already given that the issue of currency, now projected, shall not be allowed to prejudice any future currency arrangements for Russia to which the Associated Governments may in future agree to afford their support.
Whether the new currency eventually to be established should be of an inter-Allied or of a purely Russian character is a question which, the United States Government will doubtless agree, cannot be prejudged at the present time. His Majesty’s Government are themselves hopeful that it may be possible to merge the present emergency issue in a purely Russian currency, and that any inter-Allied intervention in the matter may eventually prove unnecessary.
As regards the suggestion that the emergency character of the present issue should be emphasized by notes bearing on their face a time limit, within which they must be presented for redemption, His Majesty’s Government regret, after having carefully considered the proposal, that technical objections render its adoption impossible. Apart from the fact that the notes have already been printed, and cannot be altered within a reasonable time, His Majesty’s Government are of opinion that the conversion of a currency document into short dated bills would be likely to render it extremely unsuitable for currency purposes.
The question of currency in Siberia will doubtless be the subject of further correspondence.
His Majesty’s Government would much welcome the establishment of a currency in Siberia either under United States or French auspices on lines similar to those adopted by them in northern Russia. The French Government have lately indicated that it may be necessary for them to take some sort of action on these lines for the [Page 87] purpose of financing the Czecho-Slovaks. The representatives of the United States Treasury in London are fully acquainted with these proposals which are, at present, of a very tentative character. His Majesty’s Government will welcome their full cooperation in any such arrangements, whether it proves more convenient that they should be initiated under American or French auspices.
In conclusion, His Majesty’s Government beg to assure the United States Government that the latter correctly assume that the present arrangements do not imply a suggestion on the part of the British Government that distinct spheres of influence should be set up in Russia, but merely that practical situations may from time to time throw upon one of the Associated Governments a greater measure of assistance than may fall on another.
[Received November 2.]