700.00116 M.E./280½
The Under Secretary of State ( Welles ) to President Roosevelt
My Dear Mr. President: I spoke with you some ten days ago with regard to the conclusion reached by the Secretary and myself that the Soviet Government might advantageously now be informed that the Government of the United States considered the moral embargo no longer applicable to the U. S. S. R. At that time you expressed your approval of this step but stated that you did not approve any formal publication of such an announcement on our part to the Soviet Government.
In a conversation which I had yesterday with the Soviet Ambassador, in the course of which I informed him of the decision reached [Page 686] by this Government, the Ambassador insisted very strongly that the public in the United States be advised that the moral embargo was no longer applicable to the Soviet Union. The arguments advanced by the Ambassador were, first, that if no public announcement were made, normal trade between the Soviet Union and the United States would continue to be materially impaired, and, second, that without some publicity, the moral stigma upon the Soviet Union arising from the imposition of the moral embargo would still be regarded as in effect by the public of the United States.
The Secretary and I both feel that there is considerable basis for the arguments advanced by Mr. Oumansky. Since we have decided that the moral embargo is no longer applicable to the Soviet Union, it would seem in fact desirable that our manufacturers be informed and that the public know it. On the whole, our negotiations with the Soviet Union have progressed favorably up to the present moment, and the more friendly relationship which is beginning to exist is unquestionably of real advantage to this Government insofar as the Far Eastern situation is concerned. Our suggestion would, therefore, be that I address a letter to the Ambassador, of which I am enclosing a suggested draft72 for your information, and that the text of this letter, together with the text of the Ambassador’s acknowledgment, be given to the press. This procedure would, of course, avoid any formal statement by yourself or by the Department of State.
Will you let me know if this procedure is satisfactory to you?73
Believe me
Faithfully yours,