File No. 861.51/138

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


1359. From Secretary of Treasury:

Cable received. Am considering carefully credit needs Russia along with other governments. Hope to reach conclusion shortly [Page 6] and will advise you fully. Contemplated orders for freight cars and locomotives should not be considered without consultation with Treasury Department. This most important if purchases are to be made on reasonable basis and proper deliveries secured. Contemplated financial arrangements under act of Congress will necessitate formation of commission under direction of the Treasury through which all purchases of supplies in United States for Allied Governments may proceed with assurance of proper coordination and best results. Great Britain, France, and Italy have accepted this principle and loans to them will be made on this basis. Understand that Russia also accepts this principle. Details being worked out. Full advices will be sent you at earliest possible moment. Meanwhile somebody in Washington should be given plenary power to act for and sign necessary obligations and agreements for Russian Government as well as power to draw checks against deposits of the funds which may be loaned by Treasury Department. Otherwise unnecessary delays will result.