800.51W89 U.S.S.R./148: Telegram
The Chargé in the Soviet Union (Wiley) to the Secretary of State
[Received 12:35 p.m.]
380. My 368, October 20, 8 p.m. Troyanovsky intends to leave Moscow November 15 and to sail on the Olympic on 21st.
I recently sat next to him at lunch when Lamoureux, the French Minister of Commerce, was supposedly en route to Moscow. Troyanovsky told me that the question of a settlement of debts and claims with the United States was encountering serious difficulties. The French had again raised the question of war and Czarist debts and had proposed a settlement on the basis of credits at 7 percent inclusive, running from 15 to 20 years. The Soviet Government intended to make only one financial settlement abroad. While he hoped that [Page 162] the settlement would be made with the United States it would be impossible for the Soviet Government to enter into an agreement with the American Government on terms less favorable than those offered by France. To do so would constitute discrimination. I denied this vigorously.
From discreet inquiries it appears that the French Embassy has no knowledge of any new financial proposal having been formulated by its Government.
However, I understand Lamoureux intended while in Moscow to revive the question of Russian debts and to endeavor to stimulate Soviet purchases in France as a condition precedent to effective political cooperation.
The Cabinet crisis in France seems to have altered matters considerably and from the Soviet viewpoint most disappointingly. Lamoureux has given up his trip. The present domestic political difficulties in France which are seriously viewed here may somewhat facilitate our negotiations. In any event they make it more difficult for the Soviet Government at present to try to play France off against the United States in an endeavor to extract substantially longer credits from us.
It is reported that Troyanovsky’s relations with Litvinov since his return have been stormy. As Troyanovsky has postponed his departure I presume that he has not yet completed his conversation with the party leaders many of whom, including Kalinin, have recently gone out of their way to show cordiality to the Embassy.