The Ambassador in the Soviet Union (Bullitt) to the Assistant Secretary of State (Moore)

Dear Judge Moore: Just a line to reply to your note of July 1362 with regard to Doctor Jacques Clement Maguite’s proposal. I do not believe that the suggestion made is practicable. You will recall that the President personally was interested in the question of gold mining by Americans in Eastern Siberia. Many months ago I discussed the matter with Litvinov and he replied that the Soviet Government was definitely opposed to granting any concessions whatsoever for gold mining in Siberia, that the gold mining industry of the Soviet Union was being developed with all possible speed, and that the Government proposed to keep all mining of gold in its own hands.

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It is true that the Soviet Government has been making every effort to increase its gold production and although no statistics have been published, I believe it has succeeded in nearly doubling its output of gold.

I do not believe there is the slightest chance of a concession being granted to an American corporation and even if such a concession could be granted I do not believe that an American corporation could operate successfully in Eastern Siberia in view of the extraordinary difficulties connected with the handling of Russian labor.

Should you desire me to take the matter up again with Litvinov I will, of course, be glad to do so.

With all good wishes [etc.]

William C. Bullitt
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