800.51W89 U.S.S.R./50: Telegram
The Ambassador in the Soviet Union (Bullitt) to the Secretary of State
[Received May 13—5:55 p.m.]
82. This afternoon I discussed with Litvinov the proposals contained in your 72, May 11, 6 p.m. He expects to leave Moscow either tomorrow or the following day and will not return until mid-June. He said that he hoped I would conclude our negotiations with Krestinsky and Rubinin.
I outlined your proposal for revolving credits with the Export-Import Bank approving each transaction in advance and carrying only a part of the credit risk. After prolonged discussion he seemed to acquiesce in principle.
[Page 96]We discussed the question of interest rates and he said finally that the important thing for the Soviet Government was to have one all inclusive interest rate which would include interest on the acknowledged indebtedness. He offered a total permanent 7 percent. I replied that less than 10 percent could not be discussed. After some debate he seemed to agree in principle that 10 percent was a minimum.
Litvinov was most amiable throughout our conversation. I derived the impression that the absence of his usual belligerency was due in part to the desire of the Soviet Government to reach agreement and the conviction that we are adamant but in larger measure to the fact that he was about to be absolved from the necessity of making concessions personally. As soon as I receive your reply to my 81, May 13, noon, I shall call on Krestinsky and Rubinin.