840.51 Frozen Credits/727: Telegram

The Secretary of State to the Minister in Rumania (Gunther)

374. Your 609, October 15, 9 p.m., 614, October 17, 7 p.m.29 and 655, October 24, 6 p.m. Following a careful examination of the points involved in the Rumanian Government’s request for the release of $1,410,000 to pay for Turkish cotton importations, it has been decided that the request is justified. Accordingly, the Treasury Department has released the aforementioned sum for the purpose indicated.

You should immediately inform the Prime Minister of this fact, stating that the release has been made strictly on the merits of this specific request. You should in no sense, however, give any indication that the action of this Government has been in any way concerned with a quid pro quo involving the difficulties of American companies in Rumania. The Department believes that this Government and the companies themselves would be in a far stronger position by keeping the question of blocked funds entirely separate from American interests in Rumania.

  1. Neither printed.