661.6231/220: Telegram (part air)

The Chargé in Germany (Kirk) to the Secretary of State

757. My 724, August 2, 7 p.m.98 The Soviet Chargé d’Affaires informed a member of the Embassy staff today that rapid progress was being made in the German-Russian trade negotiations here and that it was quite probable that a trade arrangement would shortly be concluded. He said that there were a large number of German designed and equipped factories for which new machinery was needed and that Germany was the only country that would give long term credits. He said that the Germans were discussing credits of 5, 6 and 7 years’ duration, payment to be made in Russian commodities. He said further that Germany was not insisting on payment solely in important commodities such as manganese and petroleum products but was quite [Page 334] willing to accept almost anything that Russia had to dispose of including products such as cotton waste of which Russia had a surplus and could neither use nor easily sell abroad.

Repeat to Treasury as No. 54 from Heath.99

Kirk
  1. Not printed.
  2. Donald R. Heath, First Secretary of Embassy.