861.515/215: Telegram
The Chargé in the Soviet Union (Thurston) to the Secretary of State
[Received December 3—10:57 a.m.]
1666. Embassy’s 1627, November 27, 5 p.m.47 The receipt by the Embassy of the Kaunas Russian-language newspaper reveals that in [Page 442] Lithuania the rate of exchange of the ruble which will circulate there together with the lit was established as of November 5 at 1 lit to 90 kopecks. According to the information obtained from the State Bank the rate of exchange in Esthonia has been established at 1 crown to 1.25 rubles.
The Riga and Kaunas Russian-language newspapers received by the Embassy indicate that in connection with the introduction of the ruble as legal currency there has been a drastic upward revision of commodity prices in Latvia and Lithuania and presumably in Esthonia. Statements in these newspapers indicate that the aim of the new price decrees is to bring the price level in the Baltic States into conformity with that prevailing in the Soviet Union proper.48
- Not printed; it reported that the Soviet ruble was declared legal tender on November 24, 1940, in Latvia, Lithuania, and Estonia. At this time it was announced that the rate of exchange would be one ruble for one lat, one lit or one crown, respectively. (861.515/214)↩
- The Chargé in Germany, Leland B. Morris, reported in his despatch No. 3953, December 3, on the introduction of the ruble, replacing the national currencies of the three Baltic States. He wrote further: “Before introducing the ruble, the Baltic currencies were rapidly inflated, or rather their purchasing capacity was greatly decreased in order to bring the price structure somewhat in line with that in the Soviet Union. … Soviet occupation is thus accompanied by (1) looting of the state economy and (2) impoverishment of the people due to great price inflation.” (860N.00/72)↩