861.51/2660½
Memorandum by the Assistant Secretary of State (Moore) of an Interview Between President Roosevelt and the Ambassador of the Soviet Union (Troyanovsky) on April 30, 193419
Mr. Troyanovsky indicated that he desired to discuss the matter of the debts inasmuch as Mr. Bullitt and Mr. Litvinoff had been unable to reach an agreement. He mentioned some details he had in mind, namely, that Mr. Litvinoff thought the total amount should be fixed at not more than $75,000,000, but said that, if this seemed to the President too small an amount, Mr. Litvinoff would consider increasing it. He also spoke of the interest rates on contemplated credits as stated by our Government being too high. Incidentally, he also talked about the character of the Kerensky debt. The President told him that he thought it would be unwise to transfer the negotiation from Moscow to Washington in view of the fact that both Messrs. Bullitt and Litvinoff were parties to all of the conversations that took place here last fall and that to do so would tend in the direction of crossing wires and might result in confusion. But he went further and indicated since Litvinoff was here the dollar had been devalued so that a total of $75,000,000 would not observe the minimum then under discussion and would, in effect, reduce the maximum of $150,000,000 then under discussion to $90,000,000. The President made it very clear to Mr. Troyanovsky that the best course is for him and our Government to let the representatives of both the Governments in Moscow understand the desirability for them to proceed with the negotiation with the hope that a satisfactory conclusion may be reached. The President impressed Mr. Troyanovsky with the fact that the former must always bear in mind that the approval of any agreement by the Senate will be necessary; and, furthermore, that the private claims amount to several hundred million dollars. Troyanovsky spoke of counter claims and the President laughingly said “if you assert counter claims we will have to assert counter claims growing out of the circumstance that our troops in Russia saved Siberia from being taken over by the Japanese”. In sum, the President rejected the idea of conducting further negotiation here at this time and Troyanovsky did not seem very much displeased by the suggestion that he should advise Litvinoff to that effect.
[Page 87]It was explained to Troyanovsky that the intention always has been to keep the matter of a debt agreement and the matter of credits linked together and that this is the justification for the refusal of the Export Bank to support credits in advance of a debt agreement being arrived at.
[Here follows draft of telegram to the Ambassador in the Soviet Union, initialed by the Secretary of State. See telegram No. 64, May 1, 3 p.m., infra.]
- The Secretary of State also was present.↩