800.51 W89 U.S.S.R./172: Telegram

The Chargé in the Soviet Union (Wiley) to the Secretary of State

46. Discreetly reviewed and analyzed developments with Karakhan (who is an outstanding opponent of Litvinov). He declared that the way Litvinov had acted towards United States was “filled with dark spots”. I suppose he will discuss matter with Kremlin. By another Soviet official, a reliable source, am informed that your press release came as complete surprise to Litvinov, that his position was not improved thereby.

[Page 176]

Rubinin in conversation with me emphasized Molotov’s and Rosengoltz’s references to excellent credit position of Soviet Union. This would indicate Soviet determination to conduct campaign for cheap long-term credits and loan.

In my Soviet conversations I am emphasizing following paradox: since simultaneously and daily Soviet spokesmen warn of great danger of war of conquest being waged against Soviet Union, Soviet Union is thereby branded as very dubious credit risk.

For Ambassador Bullitt: Would it not be well to have foregoing paradox discreetly ventilated in American press? It should be easy to deflate Litvinov-Rosengoltz credit balloon.