800.51W89 U.S.S.R./35: Telegram
The Ambassador in the Soviet Union (Bullitt) to the Secretary of State
[Received 10:40 a.m.]
52. Last night the Swedish Minister told me that it now seemed most unlikely that his Government would grant the projected loan to the Soviet Government. The German Ambassador told me that the Soviet Government a few days ago had asked him to arrange new 5-year credits in Germany and that he had replied “There will be no new loan agreement so long as the Soviet Government maintains its present hostility to the Hitler regime. We shall not hang out the wash until the sun shines.”
Meanwhile various Soviet Commissars are announcing to all and sundry that the Soviet Union will make no purchases in the United States this year and that Boyev will not go to America.
Duranty, who has received from Soviet officials various intimations in regard to Litvinov’s understanding with the President, is convinced that the maintenance of a firm attitude by the United States Government will result in a retreat by the Soviet Government. I am not so sure but feel that whatever the result our present line should be followed to the end.