File No. 861.51/165

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


1525. Also for Secretary of Treasury:

Answering Department’s 1568, July 14, 4 p.m., just received. Nature and operation of $75,000,000 loan fully explained in my 1497, July 11, 9 p.m., which stated none of such required for ten days or after negotiations consummated with Bank of-Finland. That cable framed after personal conference with Director of Credit Chancellery who said would confer with president, Bank of Finland, 17th, and advise result. Note from him dated July 14 received yesterday states:

Russian Government would notify Federal Government through American Ambassador, Petrograd, of the amount of dollars to be deposited on account of the Russian Government at the National City Bank, New York, to enable same to proceed to the crediting of the Bank of Finland. This notification be accompanied by a copy of the telegram addressed by Minister of Finance to National City Bank, which telegram would direct disposition of such deposit.

Have no reason to believe that Russian Ambassador at Washington not authorized to accept $10,000,000 payment but the manner of payment on this $75,000,000 loan shall [should] be defined and I should be advised thereof as loan negotiated for specific purpose and available for no other. See my No. 1524 concerning situation at Ministry of Finance. Shall cable when Minister of Finance appointed or when can see Minister for Foreign Affairs which is impossible now.