File No. 861.51/166

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


1524. Also for Secretary of Treasury:

Foreign Office in note of July 14 received 16th in Russian, translated to-day, states Minister of Finance has just been informed by his agent in England “of the categorical refusal of the British Government to continue payment on Russian orders in the United States in view of the fact that the British Government itself disposes of no other credits in dollars save those which opened for payments of English orders.” Russian Government consequently asks: “A further credit of $25,000,000 destined to cover most urgent payments on orders formerly placed in United States as against English credits.”

The note refers to another credit of $25,000,000, of which I am not aware, the only credits advised being $100,000,000 and the $75,000,000 with which to purchase Finnish marks. Following is suggested disposition of the two credits of $25,000,000 each:

Urgent payment on orders of the Minister of Ways of Communication, $2,500,000;
For adjusting various financial obligations, among them our debt to Guaranty Trust Co., $12,005,000 [sic];
For urgent needs of Russian industry, $9,000,000;
For transportation through Sweden of agricultural machinery bought in America and for the purchase, $1,000,000;
For urgent payments on orders leaving to-day against British credits, $25,000,000.

[Page 14]

Am not seeking additional work or responsibility but think these financial credits should be extended through me or that I should certainly be advised thereof especially as Minister of Finance resigned last evening and successor not yet named. Entire Provisional Government has uncertain tenure, four Cadet ministers having resigned and remainder now conferring with Workmen and Soldiers concerning future policy. See my No. 1521.1