661.6231/205: Telegram

The Chargé in the Soviet Union (Grummon) to the Secretary of State

307. The German Ambassador is leaving tonight for Berlin to take up with his Government the question of a commercial agreement with the Russian Soviet Government. I am informed that the Commercial Attaché of the German Embassy here saw Mikoyan again on June 8, but that little progress was made in this conversation as the chief difficulty which had impeded the conclusion of an agreement last March, namely, the inability of the Soviet Union to supply the amount of raw materials desired by Germany in return for the granting of a 200 million mark credit, still persisted. It was added that one of the purposes of the Ambassador’s visit to Berlin was to discuss with his Government the possibility of suggesting to the Soviet Government that the deficiency in raw materials might be overcome by a Soviet agreement to pay for a certain proportion of German goods in foreign currency.

Grummon