760D.61/309: Telegram

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

1741. Continuing my 1740, October 18, 2 p.m. Whether this story is true and how far Germany has acceded or is prepared to accede to the extension of Russian influence in the Baltic have not as yet been subject to confirmation; but it is not unreasonable to assume that while Germany is confronted with the possibility of major military action in the west, it is in no position to adopt any course with regard to Soviet Russia which might jeopardize the immediate advantages of Russian indulgence or even cooperation. That Germany has already agreed to a very considerable extension of Soviet military and political control in the Baltic area is evident however from her apparent lack of protest against Soviet encroachments in the three southern Baltic States and from the fact that Germany is repatriating German populations from those countries where important German colonies have resided for hundreds of years. Aside from possible promises of military and naval aid, the price which Russia may be paying for German non-resistance to Soviet designs in the Baltic and elsewhere may be an enlarged guarantee to provide Germany with substantial quantities of Russian raw materials. A month ago German economic authorities appeared to be skeptical concerning the possibility of any immediate and substantial imports from Russia but now it appears that they are beginning to believe that Russia will really make an effective effort to furnish raw materials to Germany. While their estimate of Russian motives center largely about conjectures that Russia may be employing a temporary ruse to disarm objections to its Baltic encroachments, that it may be apprehensive of German strength, or that it wishes to prolong the war between Germany and the Allies, these German authorities nevertheless look for augmented deliveries of supplies from Russia.

In Soviet circles in Berlin it is stated that the German trade delegation headed by Schnurre and Ritter (see my 1629, October 8, 11 a.m.49) [Page 489] is expected to remain in Moscow for some time and that in view of the complexity of the problems involved the negotiations may be protracted. There is an impression, however, in other diplomatic circles here that some definite development in Soviet-German relations is now under advisement and that a manifestation thereof may be expected possibly in the near future.

Kirk
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