800.51W89 U.S.S.R./57: Telegram
The Secretary of State to the Ambassador in the Soviet Union (Bullitt)
84. Your 85, May 16, 10 p.m. Of course approve your refusal to accept proposition, which practically means an unconditional loan of $200,000,000. Since all credit transactions would be placed under the control of Amtorg with power to decide terms, class of goods purchased, and what preference given producers, it would to a large [Page 99] extent place our business at the will of Amtorg. Peek and Talley of Export-Import Bank are positive in this view.
Likewise approve your statement to officials of uselessness to protract discussion if their proposition is final.
You may think it expedient to suggest in case that is the situation, that they may desire to instruct Troyanovsky to take up the matter here. The President might succeed in impressing him with the fact that his Government is deviating from all that was understood while Litvinov was in Washington and the importance of agreeing differences on a mutually advantageous basis so as to preserve entirely friendly relations.
President has seen this.