861.51/703
The Acting Secretary of State to the Russian Financial Attaché ( Ughet )
My Dear Mr. Ughet : In response to your letter of September 22nd,7 I beg to inform you that there would seem to be no objection to the [Page 458] Embassy’s proposal to sell to Admiral Kolchak’s Government certain unexecuted Russian ruble notes which were printed in this country. I understand that part of the notes in question is now lying at Vladivostok, and that the balance, or such portion of the notes as may not be under direct control of the Embassy, is in the custody of the Sub-Treasurer of the United States at San Francisco.
In compliance with the request of the Embassy, Mr. Heid, at Vladivostok, has accordingly been instructed to deliver to the duly authorized representative of the Government of Admiral Kolchak such ruble notes as may be in his custody, and at the same time I am informing the Treasury that the notes held at San Francisco are to be delivered to such representative of the Embassy as the Ambassador may designate, and assume that you will inform the Treasury Department who is to receive the notes under the circumstances.
I should add that the Department offers no objection to this transaction on the understanding that there has now been paid to the accounts of the Russian Embassy, arising from American funds advanced to Russia and which have heretofore been disbursed only with the acquiescence of the Treasury Department, the sum of $650,000, representing fifty percent of the cost of manufacture of the bank notes in question, and that the balance of the total cost of $1,239,000, namely, $589,000, will be deposited to the same accounts on or before January 1, 1920, in completion of the purchase price which you tell me has been agreed to by the Government of Admiral Kolchak.
I understand furthermore that in the event that the Government of Admiral Kolchak fails to fulfill the terms of payment as indicated above, the Embassy will then withhold from shipment to Russia an equal quantity of ruble notes of the same series and denominations from the supply which you state is now being printed by the American Bank Note Company under contract with Admiral Kolchak’s Government.
I am [etc.]
- Not printed.↩