The Ambassador in Italy (Child) to the Secretary of State
[Received May 2—4:03 p.m.]
19. The Allied note to the Soviet representatives which is now being drafted will provide for recognition only after an indefinite period of probation. The note will insist upon Russian pre-war debts and a pledge for the restoration of property or indemnification for it. According to reliable information, the Russians will delay and then refuse to accept. The report of a monopolistic concession for the sale of exports follows intimations which I have received from French and German sources here that negotiations of that nature are taking place. The values of such former concessions as the Nobel11 would be infringed upon by a monopoly of export sales. I have not found it possible to secure information sufficient to create an alarm [sic], because of my inability to interrogate Russians and also because of having been informed from British sources that if there were any negotiations they were not Anglo-Persian and were private. I am now seeking to secure confirmation of my information that a contract was signed Sunday. I wish instructions. It is probable that inquiry of the Russians would only yield the same sort of misinformation as was given to Logan.12 There is still reason to believe that Soviet Russia is reluctant to give offense to attitude of Americans.