661.1115/49: Telegram
The Ambassador in France ( Wallace ) to the Secretary of State
[Received 6:17 p.m.]
942. Mission. Following is translation of note received from Foreign Office this noon.
“Mr. Ambassador. You were good enough during your visit of yesterday to inform me that your Government has decided to remove on April 10 all restrictions imposed on commerce with Russia, but that it is wished beforehand to be informed of any objections which the French Government might wish to make.
I have the honor to refer to the note of April 595 in which my Department indicated that its views coincided with those set forth in the memorandum from your Embassy dated March 11.96 In that note my Department declared that it was in agreement as to the advantage to the Allied and Associated Powers of reaching an agreement as to the general conditions under which resumption of traffic with Russia could take place. The British Government has justly pointed out in this respect that it would be difficult to agree upon these conditions before being informed of the proposals which the Russian delegation presided over by M. Krassine had to make.
However the immediate removal of all restrictions whatsoever on commercial transactions with Russia seems to me now to give rise to very serious objection.
The first was set forth by your Government which in the memorandum above mentioned pointed out the advisability of taking measures to prevent the Bolsheviks dispersing abroad the securities which they may have acquired unlawfully.
Moreover the destruction of means of transportation and the general ruin of the country do not admit of the belief that Russia is [Page 710] capable of exporting much merchandise. Its immense needs on the contrary will be a drain upon the resources of the world which today are too reduced in such measure as to increase the present economic distress. In default of any other alternative Russia will be tempted to solve the question by alienating or encumbering parts of its public domain in the shape of concessions on monopolies or in some other form. But it is to be noted that this public domain constitutes the common pledge of the creditors of the Russian state and especially all foreign subjects who subscribed to pre-war loans but whose properties and industrial and commercial enterprises have been looted, confiscated or nationalized, without indemnity.
Under these conditions I feel that before removing restrictions on commerce with Russia, the Allied and Associated Governments would find to their interest to come to an agreement with a view to insuring the protection of this common pledge whose destruction they cannot allow. It would be expedient also that they should agree upon declaring that they deny to the Soviet Government all right of alienating the property constituting the former Russia and representing in that capacity guarantees for the execution of its international agreements.
So long as the Russian Government shall not have fulfilled its former obligations it would be an absolute paradox on our part to ask it to contract new ones which would have no more value than the former ones which they are liable to annul.
Moreover I intend very shortly to submit to the Allied and Associated Powers a proposal with respect to the measures which the Russian Government should adopt so as to insure the fulfillment of the obligations which the former regime bequeathed to it. It is absolutely essential that these obligations should be explicitly recognized by those who to-day hold power in Russia; any arrangement not based on the condition precedent of such recognition would be to our eyes bereft of all authority from the point of view of international law.
I am persuaded that these considerations will appear to the Government of the United States to be in conformity with the principles of equity which it has always upheld and I would be grateful if you would be good enough to let me know if it is disposed together with the Associated Governments to examine measures which it is expedient to take before conferring complete freedom upon commercial transactions with Russia. Accept et cetera.” Signed Millerand.