The Assistant Chief of the Division of European Affairs (Henderson) to the Adviser on International Economic Affairs (Feis)

Dear Herbert: In one of your memoranda covering the correspondence relating to the SerkauGuilden proposals you stated, I believe, that the Export-Import Bank and Amtorg maintained close contacts.

In view of the peculiar organization of the Soviet Government, it is difficult, if not impossible, to keep financial and economic relations with that Government entirely distinct from political relations. Since all Soviet foreign relations are channelized, our Government is likely to be at a disadvantage in dealing with the Soviet Government, unless there is some governmental center which is fully cognizant of all phases of our relations with the Soviet Union. So far as possible, we are trying to maintain such a center in this Division.

It will be appreciated, therefore, if you would ask the pertinent officials of the Bank to keep the Department fully informed regarding the substance of such conversations which might have a bearing upon Soviet-American financial or economic relations which may take place between representatives of the Bank and Soviet officials, including, [Page 824] of course, such officials detailed to Amtorg, and if you would cooperate in making sure that this information is conveyed to this Division.

L[oy] W. H[enderson]