[Enclosure—Extract]
Statement Covering the Activities of the
Department of State2
Russia
During the past four years the Government of the United States has
maintained the position that it would be both futile and unwise to
enter into relations with the Soviet Government so long as the
Bolshevik leaders persist in aims and practices in the field of
international relations which preclude the possibility of
establishing relations on the basis of accepted principles governing
intercourse between nations. It is the conviction of the Government
of the United States that relations on a basis usual between
friendly nations can not be established with a governmental entity
which is the agency of a group who hold it as their mission to bring
about the overthrow of the existing political, economic and social
order throughout the world and who regulate their conduct towards
other nations accordingly.
The experiences of various European Governments which have recognized
and entered into relations with the Soviet regime have demonstrated
conclusively the wisdom of the policy to which the Government of the
United States has consistently adhered. Recognition
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of the Soviet regime has not brought
about any cessation of interference by the Bolshevik leaders in the
internal affairs of any recognizing country, nor has it led to the
acceptance by them of other fundamental obligations of international
intercourse. Certain European states have endeavored, by entering
into discussions with representatives of the Soviet regime, to reach
a settlement of outstanding differences on the basis of accepted
international practices. Such conferences and discussions have been
entirely fruitless. No state has been able to obtain the payment of
debts contracted by Russia under preceding governments or the
indemnification of its citizens for confiscated property. Indeed,
there is every reason to believe that the granting of recognition
and the holding of discussions have served only to encourage the
present rulers of Russia in their policy of repudiation and
confiscation, as well as in their hope that it is possible to
establish a working basis, accepted by other nations, whereby they
can continue their war on the existing political and social order in
other countries.
Current developments demonstrate the continued persistence at Moscow
of a dominating world revolutionary purpose and the practical
manifestation of this purpose in such ways as render impossible the
establishment of normal relations with the Soviet government. The
present rulers of Russia, while seeking to direct the evolution of
Russia along political, economic and social lines in such manner as
to make it an effective “base of the world revolution”, continue to
carry on, through the Communist International and other
organizations with headquarters at Moscow, within the borders of
other nations, including the United States, extensive and carefully
planned operations for the purpose of ultimately bringing about the
overthrow of the existing order in such nations.
A mass of data with respect to the activities carried on in the
United States by various Bolshevik organizations, under the
direction and control of Moscow, was presented by the Department of
State to a subcommittee of the Senate Committee on Foreign Relations
in January 1924.3 Since that time these activities have been developed
and extended to include, for example, the stirring up of resentment
against the Government and the people of the United States in the
countries of Latin America and in the Far East; and the supervision
by Moscow of the organizations through which these activities are
carried on has become even more comprehensive and more pronounced.
The Government of the United States feels
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no concern lest this systematic interference
in our affairs lead in the end to a consummation of the Bolshevik
plan to bring about the overthrow of our Government and
institutions. The Government of the United States, however, does not
propose to acquiesce in such interference by entering into relations
with the Soviet Government. Nor can the Government of the United
States overlook the significance of the activities carried on in our
midst under the direction of Moscow as evidence of the continuation
of the fundamental hostile purpose of the present rulers of Russia,
which makes vain any hope of establishing relations on a basis usual
between friendly nations.
In the view of the Government of the United States, a desire and
disposition on the part of the present rulers of Russia to comply
with accepted principles governing international relations is an
essential prerequisite to the establishment of a sound basis of
intercourse between the two countries. A clear and unequivocal
recognition of the sanctity of international obligations is of vital
importance, not only as concerns the development of relations
between the United States and Russia, but also as regards the
peaceful and harmonious development of relations between nations. No
result beneficial to the people of the United States, or, indeed, to
the people of Russia, would be attained by entering into relations
with the present regime in Russia so long as the present rulers of
Russia have not abandoned those avowed aims and known practices
which are inconsistent with international friendship.
While the international aims and practices of the present rulers of
Russia preclude the recognition of the so-called Soviet Government
by the United States, the Government and the people of the United
States are now, as in the past, animated by a sincere friendship for
the Russian people. As President Coolidge stated in his annual
message to the Congress of December 6, 1923: “We have every desire
to see that great people, who are our traditional friends, restored
to their position among the nations of the earth.”
As concerns commercial relations between the United States and
Russia, it is the policy of the Government of the United States to
place no obstacles in the way of the development of trade and
commerce between the two countries, it being understood that
individuals and corporations availing themselves of the opportunity
to engage in such trade, do so upon their own responsibility and at
their own risk. The Department of State has endeavored to reduce to
a minimum difficulties affecting commercial relations. Visas are
readily granted by American consular officers to Russian nationals,
even if associated with the Soviet regime, provided that the real
purpose of their visit to the United States is in the interest of
trade and commerce and provided that they have not been associated
with the international revolutionary
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activities of the Bolshevik regime. The
American Government has interposed no objection to the financing
incidental to ordinary current commercial intercourse between the
two countries, and does not object to banking arrangements necessary
to finance contracts for the sale of American goods on long term
credits, provided the financing does not involve the sale of
securities to the public. The American Government, however, views
with disfavor the flotation of a loan in the United States or the
employment of American credit for the purpose of making an advance
to a regime which has repudiated the obligations of Russia to the
United States and its citizens and confiscated the property of
American citizens in Russia. Various Soviet commercial organizations
have established branches in this country, and, as may be observed
from the following table, a substantial trade has developed.
American-Russian Trade
(In dollars)
|
Imports from Russia |
Exports to Russia |
1912 |
28,346,870 |
27,315,137 |
1923 |
1,481,699 |
7,308,389 |
1924 |
8,030,465 |
41,948,578 |
1925 |
13,001,731 |
68,873,019 |
1926 |
14,121,992 |
49,735,269 |
1927* |
8,885,366 |
58,812,435 |
Not only has a substantial trade developed between the United States
and Russia, but an examination of Russian trade statistics during
the past three years shows that the total value of American exports
to Russia in that period exceeds the total value of the exports to
Russia from either Great Britain or Germany during the same period.
(See Appendix A.) It is to be noted in this connection that Great
Britain concluded a trade agreement with the Soviet regime in 1921
and accorded recognition in 1924, and Germany reestablished
diplomatic relations in 1922 and concluded a comprehensive
commercial treaty in 1925.