File No. 861.51/414

The Chargé in Russia ( Poole ) to the Secretary of State

[Telegram]

587. The temporary government of the northern region issues national credit notes of northern Russia secured by foreign exchange at the rate of forty rubles for one pound sterling on the following terms:

1.
For the emission of the aforementioned currency the temporary government founds a national émission caisse presided over by a financial adviser, who will be assisted by an advisory committee of four members appointed by the temporary government, who can be dismissed by them. The financial adviser will be appointed by the temporary government or its successors in agreement with the British Government. If an agreement is subsequently entered into with the French and American Governments on the lines of the agreement with the British Government such Governments shall also concur in the appointment of the financial adviser.
2.
The national émission caisse is an organ of the temporary government of the northern region or such other government as may succeed it and be recognized by the Allies. The issue of currency now projected will not be allowed to prejudice any future currency [Page 91] arrangements for Russia to which the Associated Governments may in future agree to afford their support.
3.
The national émission caisse issues rubles secured by the whole resources of the nation and a special fund at the Bank of England in sterling, payments in francs and dollars will also be accepted at the rate of exchange of the day. (Arrangements will be made with first-class banks in France and America for special funds securing the new notes at a rate equivalent to the exchange value of one pound sterling as being the value of forty rubles.)
4.
The new ruble shall be issued in unlimited quantities immediately upon receipt by the caisse of information of deposit in the Bank of England of the suitable equivalent.
5.
When not less than three million rubles shall have been issued according to the above paragraph the national émission caisse shall have the right to issue a further amount of rubles not secured by such fund in the proportion of not more than one third of the whole sum in circulation issued under the security of the foreign reserve. The said additional issue serves for loan to the northern Russian government for its needs and under its guaranty and also for buying the present all-Russian rubles now in circulation at a rate to be established from time to time by the national émission caisse. In no case may there be more notes issued otherwise than against foreign currency than an amount equal to one third of the total of notes issued against such foreign currency and in circulation.
6.
The financial adviser for the first six months shall be Mr. E. M. Harvey and he can only be dismissed from his duties in the event of his not complying with the regulations and rules confirmed for the national émission caisse. Mr. Harvey’s successor will be appointed by the temporary government in agreement with His Majesty’s Government.

Poole