761.62/828: Telegram

The Ambassador in the Soviet Union (Steinhardt) to the Secretary of State

1709. Embassy’s 1696, December 9, 2 p.m.60 Schnurre informed me this afternoon that his present negotiations with the Soviet authorities related specifically among other matters to the incorporation of German commerce with the former Baltic States into the framework of the Soviet-German economic agreement of February 1940 and that he anticipated this trade would be so included, beginning with the commencement of the second year of the agreement.

In response to an inquiry with respect to the nationalization of firms in the former Baltic States which were German-owned or in [Page 589] which Germany had a sizeable interest,61 he stated that certain disadvantages were encountered by firms not nationalized in respect of the obtainment of raw materials, the assurance of engagement of workers, and the assessment of taxes so that Germany was disinclined to insist that such interests be not nationalized. I refer in this connection to my summary November 11, 6 p.m.62

Steinhardt
  1. Not printed.
  2. For information regarding Soviet offers of adequate compensation for property nationalized in the Baltic States and the report of an agreement with Germany, see telegram No. 1731, December 14, 6 p.m., from the Ambassador in the Soviet Union, p. 442.
  3. Telegram No. 1520, p. 440.