861.48/1029
The Secretary of War (Baker) to the Secretary of State
My Dear Mr. Secretary: In reply to your letter of November 12th, in which you refer to proposals being made to purchase from the War Department surplus materials such items as clothing, shoes, cloth, etc., for shipment to South Russia, and in which you state that the State Department recommends encouragement of such transactions, I have the honor to advise you that the War Department will be pleased to cooperate to the extent of its ability in furnishing the inhabitants of Russia with such articles as may be available, and for which a ready market is not found in the United States.
Contracts have already been made with certain cooperative societies in Russia, which will enable the Russian people to secure much needed materials on very favorable credit terms. Sales on credit are also being made thru representatives of the Russian Embassy.
This Department has recently been approached by commercial organizations who desire to purchase from the surplus War Department stocks items of food and clothing on terms even more liberal than those granted the cooperative societies. Because the terms proposed include insecure credits, uncontrolled profits, distribution, etc., it is not thought advisable to grant such requests.
Very truly yours,