861.01/443: Telegram
The Ambassador in Italy (Child) to the Secretary of State
[Received 9:55 p.m.]
77. Krassin says that the United States has the confidence of Russia to a greater extent than has any other country for the following reasons: [Page 814]
- 1.
- The two nationalities have similar republican individualism.
- 2.
- The reconstruction of Russia can be aided by the United States.
- 3.
- The consideration of European intrigue does not apply to the United States.
- 4.
- The Russians have great gratitude for American relief work.
Krassin says that for the reasons indicated above Russia is willing to restore or to make complete compensation for all American private property, while temporarily not admitting her obligation to do so. He also stated that Russia is so anxious to obtain the cooperation of the United States in respect to political recognition that in fact if not in law she will make restoration or restitution and is disposed to give most-favored-nation treatment to the United States in all international negotiations [unintelligible passage]. Krassin said that the Soviets are taking steps to restore freedom of labor and to reconstitute judicial system. He substantially admitted that mutual guarantees against subversive propaganda were more necessary now to the Soviets than to the United States.
I warned Krassin that it would set back American interest in Russia for a decade if anything were done infringing the rights of our legitimate claimants to equal treatment with respect to debts and private property. He promised on my suggestion to send me privately and confidentially a communication confirming as much of the above as he dares. If the State Department allowed and his personal safety permitted he would go to the United States. He says he has personal knowledge that Great Britain and France in their dealings with Russia are showing bad faith toward each other and that the British are using Germany as a tool. He gave the implication that the Soviet memorandum of May 1135 was intended for Moscow consumption being written after hope for the negotiations at Genoa was abandoned. He regrets this memorandum.
Krassin is known as a conservative as compared with Litvinoff, but he says that the evidence leads him to have faith that American interests may deal with Russia without fear of losing their property interests by nationalization or other means. I said to him that it is better to conduct business with not so much polemical negotiation than to have a lot of polemical negotiation and not do any business. He said he felt the same and that he did not have particular hope for the meeting at The Hague. He agreed that it would be better for the Soviets to have a committee merely of experts but that it was necessary for Lloyd George and Schanzer to make a gesture in order to save the face of the Genoa Conference.