611.6131/419
The Chargé in the Soviet Union (Henderson) to the Secretary of State
[Received August 7.]
Sir: With reference to the telegrams exchanged between the Department and the Embassy during the months of June and July, 1936, relating to the prolongation of the American-Soviet commercial agreement of July 13, 1935, I have the honor to enclose herewith, with annexes, a number of memoranda71 summarizing various conversations which have taken place between Soviet officials and myself with respect to the terms under which the agreement should be prolonged.
It will be observed from an examination of these memoranda that during the course of the conversations it was necessary for me to go over the same ground again and again. Although the memoranda, in view of their repetitious character, do not make interesting reading, they are being submitted to the Department with the thought that they may be useful for background purposes when the question of prolongation again arises and in obtaining an idea with respect to the manner in which Soviet officials negotiate.
The experiences of the Embassy in carrying on these negotiations is to an extent similar to the experiences as related to members of this Mission of the representatives of other Governments and of business firms in Moscow which have negotiated agreements with the Soviet Government or Soviet organizations. Soviet negotiators apparently make a practice of repeatedly advancing an argument in support of a point favored by themselves, regardless of the fact that the argument already may have been answered several times irrevocably. Persons experienced in dealing with Soviet officials take the view that these tactics can best be combatted by patiently replying to each argument irrespective of the number of times it may have been advanced.
As foreseen in this Embassy’s despatch No. 1549 of April 27, 1936, the matter of the coal tax proved to be the chief stumbling block to the conclusion of the agreement. I doubt if the Soviet Government [Page 345] will agree to another prolongation of the agreement so long as the present provisions of the Revenue Act of 1932 which result in the present discrimination against Soviet coal continue to be effective.
The attention of the Department is drawn in particular to the statement made by Mr. Krestinski (see Enclosure No. 10) to the effect that he will insist, in case the agreement is again prolonged, that the notes of the People’s Commissariat for Foreign Affairs shall be in the Russian language.
Respectfully yours,
- Ten enclosures not printed.↩