800.51W89 U.S.S.R./138: Telegram
The Secretary of State to the Ambassador in the Soviet Union (Bullitt)
266. Your 336. Troyanovsky understands that our Government will not make a loan or provide an open credit equivalent to a loan. He also understands that debt can be fixed at 100,000,000 payable in 20 or 25 years with a small interest rate or 125,000,000 without interest, the payment of this to be an obligation of the Soviet Government; that credits through the Bank will be granted up to a total outstanding at any one time of 200,000,000; that extra interest will be charged on the credits applicable to the payment of the debt or instead of extra interest, should his Government so desire, debt can be paid in annual installments, and that 5 years will be allowed on all credits without regard to the character of the commodities with longer time given in exceptional cases at the President’s discretion. Unnecessary to mention details such as suspension of credit transactions when default occurs, or at the option of our Government during any possible war, and a fair arrangement as to the use of American ships and the method of insuring cargoes.
[Page 155]Since Troyanovsky is fully advised you can determine whether it is wise to have any further conversations with Litvinoff in advance of Troyanovsky seeing him.