File No. 861.51/394
The Russian Ambassador (Bakhmeteff) to the Secretary of State
My Dear Mr. Secretary: The coming 15th of November brings forward the question of payment of interest due on certificates of indebtedness of the Russian Provisional Government to the United States. Anticipating that a demand will be made in time by the Treasury Department requesting such payment, and not questioning [Page 50] in any way the legality of such demand, I nevertheless have the honor to bring to your attention certain considerations of general and political character which seem to justify my most earnest request to the United States Government that the payment of interest on November 15 be postponed.
The only means of effecting this payment, amounting to something between $4,500,000–$5,000,000, are moneys obtained or obtainable from the sale of goods belonging to the Russian Government and stored in this country. These materials represent practically the only asset left at the disposal of the Russian Embassy in Washington, and the payment of interest to the United States, together with payments due in December and January on previous loans, would practically exhaust the funds of the Russian Government in the United States and thus thwart any further possibilities on the part of the Embassy to be of effective assistance to the Russian people. Meanwhile, the progress of the national movement in my country is opening promising opportunities and is bound to reveal different requirements of most urgent character, many of which, for certain formal reasons, might not be conveniently met except through funds disposed of formally on authority of the representative of Russia.
The features of the case, however, appear especially convincing when viewed in the light of the general policy of the United States toward Russia. Following the announcements of the desire to assist Russia, a practical policy of aid has been initiated by the United States Government and in particular the War Trade Board has been provided with a fund of $5,000,000 to effectuate such assistance which may not be carried out through private commercial channels.
Such an appropriation with a parallel demand by the United States Government of an equal sum from what little remains in the possession of the Russian Government will not be understood by the Russian people. Intricate and technical matters of judicial character do not generally appeal to the people’s mind. My countrymen will be unlikely to conceive how an exaction, based on formal and technical considerations, would conciliate with the general broad and open-hearted attitude of the United States toward Russia.
Public opinion in Russia will not comprehend the motives of the United States for levying the payment at a moment when any funds disposable are of such immense consequence. Especially when considering the relative insignificance of the amount when compared with the expenses of the war and with the momentous character of the question involved.
Furthermore, in the conception of the people there is no reason to regard with any distrust the future fulfilment by Russia of its international financial obligations. The most exact and punctilious [Page 51] observance of such liabilities has always been a fundamental and indisputable principle of Russian statesmanship, both imperial and democratic. Without hesitation, it may be stated, that any future government, really representative of the country, will consider as its manifest duty to stand by all financial liabilities emanating from legally established international obligations of Russia. To meet such liabilities the riches of Russia and the prospects of future development within a country reconstituted on principles of constructive democracy, provide most ample security.
I therefore most earnestly solicit that favorable consideration be given by the Government of the United States to this question. A generous decision, besides being under circumstances of considerable political bearing, will enable the rendering of substantial assistance to my country.
Accept [etc.]