124.611/236: Telegram

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

12. Your 4, January 8, 2 p.m. Handed note to Krestinsky this morning. Copy going forward next pouch.81 Rubinin was present. Went over the 5 points. Krestinsky reiterated objections to American employment of Soviet labor in either rubles or dollars. As for a Soviet intermediary to receive dollars from us and pay labor in rubles he felt this would be impossible unless such intermediary were at the same time responsible for construction. American architects and engineers were not conversant with Russian Soviet conditions or Soviet laws. If they were permitted to go ahead on their own they would run afoul of the law and their Soviet employees would be held responsible and run serious risk of prison sentences. I replied that we did not plan to undertake Embassy construction with criminal intent but with every respect for Soviet law and with whatever might be necessary in the way of Soviet technical advice. I represented your views most energetically and pressed for prompt answer. I was only able to elicit the assurance that Krestinsky would promptly study the note and examine every possibility of acceding to our wishes.

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I gain the impression that there is no desire per se to prevent the construction of an American Embassy but most stubborn Soviet bureaucratic resistance to letting us run our own show. I fear that the reply when forthcoming will be drafted with so many reservations that you will hardly find it satisfactory.

Wiley
  1. Not printed; transmitted to the Department in despatch No. 337, January 12, 1935; received February 6.