File No. 861.51/160

The Acting Secretary of State to the Ambassador in Russia (Francis)


1568. Following from Secretary of Treasury:

The Secretary of the Treasury, in conformity with his declaration of July 9 answering Mr. Root’s recommendation of July 8, has to-day agreed with Ambassador Bakhmeteff to place to the credit of the Russian Ministry of Finance, specifically to the account “Compte section étrangère extraordinaire” in the National City Bank, the sum of $75,000,000 in parts as the same may from time to [Page 13] time be called for by the Russian Ambassador, beginning to-day with $10,000,000. Future payments on this account are authorized by the Ambassador to be made to Mr. W. Novitsky for deposit to the same account. It has been assumed that the Ambassador has the right to sign obligations of his Government for the sums loaned; to receive the moneys covered by such obligations; to deposit them in depositaries chosen by him; and to designate to the Secretary of the Treasury others than himself to whom Treasury warrants may be drawn and upon whose order deposits may be made of the sums involved. The Secretary of the Treasury respectfully requests to be informed as to whether this assumption is entirely correct and that the Russian Government approves and adopts all that has been done under this procedure by its Ambassador.