File No. 861.51/382

The Secretary of State to the Chargé in Great Britain ( Laughlin )

[Telegram]

2593. For Crosby 1 from Rathbone:2

Embassy’s 3126 from London, October 26, 5 p.m.; your 723. Embassy’s 3169, October 29, 7 p.m.; your 729.

1.
British plan for special ruble currency in northern Russia has been considered by State Department and Treasury. Believe this plan open to serious objection either of putting out at a discount rubles which would ultimately have to be redeemed at par, or else of denominating as a ruble something which would be redeemable at less than the normal worth of the ruble. Do not think that this point would be sufficiently covered in practice by any notation on the face of the ruble. Understand Department of State, in view of British representations as to urgency, has acquiesced in this plan’s being adopted as temporary measure in northern Russia but only on certain conditions.
2.
Believe steps should be taken as soon as practicable regarding currency in northern Russia similar to those taken in Siberia so that two systems can at proper time be merged.
3.
State Department advises that no emergency exists in Siberia except for small ruble notes. Our Consul at Vladivostok cables these can be arranged for by deposit with local branch government bank of [Page 88] ruble notes of large denominations and issuing certificates against same in small denominations exchangeable for larger denominations when presented in requisite amounts. See no reason why temporary needs British, French, and ourselves should not be provided for by the purchase of existing rubles with provision for small notes as above. This much preferable to initiating new and imperfect plan as temporary expedient. It is not intended to adopt in Siberia even as temporary expedient anything similar to British temporary plan in northern Russia.
4.
The plan for currency for Siberia which in principle has been approved by the Treasury is satisfactory to Bakhmeteff and has been the subject of conference between State Department, Treasury, and War Trade Board before being submitted to representatives of Allied Governments here. State Department advises us that they wish to continue these discussions in Washington and not in London or Paris. This plan is being proceeded with and every probability that existing rubles can be used until this plan can be put into effect. For your information we are sending by mail copy of this plan.
5.
French offer has not changed our views nor those of State Department as expressed above.
6.
War Trade Board instructing Owen, its representative in Sweden, to proceed to Russia and join Francis.
Lansing
  1. Oscar T. Crosby, delegate of the Treasury to the Inter-Allied Council on War Purchases and Finance.
  2. Albert Rathbone, Assistant Secretary of the Treasury.