The Secretary of State to the New York Trust Company

Sirs: I beg to acknowledge the receipt of your letter of July 10, 1926, relating to a proposed arrangement for the re-discount by American banks, on the terms indicated in your letter, of certain Russian obligations. The Department greatly appreciates your careful exposition of the terms of the proposed arrangement, and your analysis of the situation presented.

It appears clearly from the information at hand that, in its essence, the proposed transaction would be Russian financing and in effect the employment of American credit for the purpose of making an advance to the Soviet regime. That regime, as you know, has repudiated Russia’s obligations to the United States and to American nationals.

In the circumstances, I have to advise you that this Government would not view the proposed financing with favor at the present time.

I am [etc.]

For the Secretary of State:
Leland Harrison

Assistant Secretary