760p.61/108: Telegram
The Minister in Latvia (Wiley) to the Secretary of State
[Received October 2—3:51 p.m.]
219. My 215, October 1, 9 p.m.14 Munters left today by plane for Moscow accompanied by Kampe, Director of Treaty Division of the Foreign Office and the Soviet Minister to Riga15 and his Commercial Attacé.
For the last several weeks the Cabinet has been sharply divided and friction between Vice Premier Balodis and the Foreign Minister has been accentuated. The German Minister16 in private conversation informed me today that half of the Cabinet desired to place Latvia at the entire disposal of Germany (meaning presumably to ask for a German protectorate) arguing that anything was preferable to Soviet occupation and that they insisted that Munters be replaced because of his allegedly pro-English leanings and League of Nations affiliations. Last evening at 7:00 o’clock the German Minister was suddenly summoned to the Foreign Office. Following his visit there which involved, I suppose, a clarification of German policy, Munters, in an endeavor to reestablish his position, informed the President17 and the Cabinet of Germany’s disinterest in Latvia which made it [Page 946] necessary for Latvia realistically to face the facts and accept whatever demands the Soviet Union might formulate. He thereupon requested full authorization to conclude negotiations in Moscow with the Soviet Government. The German Minister believed that Munters received extensive powers but he does not think the differences within the Government have been composed to such an extent that he was given a “blank check”. It is therefore presumed that Munters will probably follow the same procedure as was followed in the Estonian-Soviet negotiations, namely, that on receiving the Soviet demands he will return to Riga for consultation with his Government.
The German Minister in our talk referred sympathetically to the unfavorable position of the Soviet Union in the Baltic with an outlet only into the Gulf of Finland. While it was true that the Soviet-Estonian treaty was aimed at Germany it was nevertheless possible to interpret it and Soviet policy in the south as defensive rather than offensive.
The German Minister seemed to be entirely uninformed and very curious about the extent of Soviet designs in respect of Latvia particularly whether Libau18 was included. He feared that once the Soviet Union had a foothold in Latvia she would have no difficulty in fomenting internal difficulties. I am afraid the same is true of Estonia.
The French Minister19 informs me that opposition Left Wing elements have already started “flirting” with the Soviet Legation.
Packer has just seen Soviet Chargé d’Affaires20 who denies that Munters was requested to come to Moscow. It is possible that he considered the massing of Soviet troops on the frontier as sufficient invitation, also that he received an intimation through Estonian Foreign Minister.