861.00/5800: Telegram
The Minister in Denmark (Hapgood) to the Secretary of State
[Received 8:40 p.m.]
289. O’Grady’s negotiations with Litvinov now centering in large part on foreign trade. Litvinov emphasizes communistic doctrine [Page 128] of right of government to control any industry it wishes including import and export. Litvinov, however, calls attention to his right under his credentials to change conditions, provided he knows just what is desired by England or other countries involved. O’Grady considering the implications with great caution but inclined to think monopoly by Soviet Government not important in postulating as if blockade is lifted private traders in England, for instance Swedish trade, will insist making own terms and this steady pressure from freedom trade and ability to examine and follow-up trade most (more?) likely than anything else to put end to communism.
Also Litvinov assuming that end of intervention, including lifting of blockade, will mean presence of consuls which O’Grady thinks would also tend strongly toward ending or transforming [omission?] present régime. O’Grady represents only trade interests but as he is member of British Labor Party his opinion will have a strong influence on future events in England whatever the outcome here.