File No. 861.51/189

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


1642. Please communicate following to proper officials:

Secretary McAdoo has established a further credit in favor of the Russian Government of $100,000,000 available to cover rifle contracts and other orders already placed by the Russian Supply Committee in New York; also, as transportation facilities permit, some portion for supplemental orders to be placed and for current expenses of Russian Ministry of Finance; a portion for transportation charges; and $5,000,000 for emergency expenditures in Scandinavian countries.

The Secretary of the Treasury gives assurance concerning railway material that from future credits a sufficient sum will be allocated to cover the purchase of 30,000 additional cars and 1,500 additional locomotives and Vladivostok shops. The actual placing of these orders for this railway material is deferred until an appropriate time, probably not later than November 1, when it is hoped that prices lower than existing ones can be secured.

Concerning British credits, negotiations are pending which may be concluded in the next few days. Other portions of the program originally submitted calling for $733,000,000 will be given further consideration as soon as possible. Future congressional authority will be asked for and must be obtained before any larger program can be finally determined upon, but the Secretary of the Treasury will take into the most careful and sympathetic consideration all requirements presented to him, bearing in mind the financial limitations of the United States Treasury as well as limitations of transportation by land and sea. It is of course understood that these credits are available only during the time Russia is engaged in war [Page 23] against Germany. Bakhmeteff has been fully consulted in making determinations above set forth.