800.51W89 U.S.S.R./91: Telegram
The Ambassador in the Soviet Union (Bullitt) to the Secretary of State
[Received July 30—1:40 p.m.]
231. Continuing my No. 230.47 With regard to Troyanovsky conversation in the Department on July 25th, Litvinov said to me last night that he had again received an unintelligible telegram from Troyanovsky and had telegraphed to Troyanovsky to attempt to obtain any proposals of the Department in written form so that he personally could consider an actual text and not be dependent upon Troyanovsky’s interpretations which he feared might lead to further misunderstanding. He asserted that Troyanovsky had reported that the Department had proposed that the Export-Import Bank should carry 70 [Page 125] percent of the burden of all credits and private corporations 30 percent. He insisted but without vehemence that he would continue to reject proposals for private participation in credits on which extra interest was to be paid. He then said that he was opposed to what he called “controlled credits”, commenting that the Soviet Government must be free to buy from whatever companies it pleased.
I told him that I had no indication whatsoever that the Department had made any specific proposals to Troyanovsky and in the absence of such information could not discuss the matter.
Litvinov then expressed great surprise that the Department had announced to the press on July 25 the resumption of negotiations in Washington,48 saying that publicity of any sort would make the successful issue of the negotiations impossible. He concluded by remarking that the relations of the Soviet Union with all nations except the United States were now becoming quite satisfactory. The development of British-Soviet friendship may lead I believe to British credits to the Soviet Union.