800.51W89 U.S.S.R./46b: Telegram
The Secretary of State to the Ambassador in the Soviet Union (Bullitt)
68. Construction of the Johnson Act by the Attorney General with our concurrence leaves the Russian situation unchanged, notwithstanding anything said by newspapers or others to the contrary. It necessarily places the Soviet Government in the default category because of being the successor of the Provisional Government. But it points to the fact that the Export Bank can engage in credit transactions when it is prepared to do so. It was understood, when Litvinoff was here, that a debt agreement would include not only private claims but the Provisional Government obligations. In case a debt agreement is reached, it is probable that substantially all of the total to be paid will inure to the benefit of the private claimants. If, at any time, you advise us that in your opinion it is useless to attempt further negotiations in Moscow, we will take the matter up with Troyanovsky here.