861.51/485: Telegram
The Chargé in Russia ( Poole ) to the Acting Secretary of State
[Received February 10, 3:40 a.m.]
845. Reference Embassy’s 744, January 15 [12], 7 p.m.16 Provisional Government addressed memorandum yesterday to the American and Allied Embassies. Summary as follows.
Failure of Emission Office to provide full amount of currency promised (see 744) and necessity for prosecuting energetic military operations to bring about the reconstitution of the Russian state, in which all countries of the world have an interest, force Provisional Government to bring once more to the attention of friendly powers its difficult financial situation. Expenses of Provisional Government include expenditures for national purposes, which the northern region assumes temporarily and extraordinary, and purely military expenditures relating to operations at the front and preparation for subsequent operations. None of these can be stopped. Statement is given of expenditures chargeable to the presence of Allied troops, showing total to date 503,000,000 [53,000,000?] roubles or almost the exact amount of Treasury notes so far issued or authorized. Provisional Government asks loan of 300,000,000 roubles, to be guaranteed by the Allies through deposit of security in Allies’ banks, loan to be included in the general Russian debt made, and conditions of repayment to be determined by the Peace Conference.
I have carefully refrained from discussing this matter with the Provisional Government, leaving initiative entirely to the British Commission[er]. He has referred memorandum to his Government with adverse recommendation and at the same time renewed his proposal of January 9th, as mentioned in my 744, that in view of necessity of keeping Provisional Government afloat the following be done: Provisional Government to be left to find the means needed for purely local administration while Great Britain or the Allies finance operations of national character or those arising out of intervention. These include budgets of War Ministry, Port and Marine, Transport and Railways. Administration would be left in Russian hands with British or Allies financial control. At the time proposal was first made, monthly outlay under these heads estimated at 6,000,000 roubles but probably now greater, owing especially to recent order for general mobilization.
Repeated to Paris as number 36, February 9th, 6 p.m.
- Not printed.↩