611.7431/2–2646: Telegram

The Representative in Bulgaria (Barnes) to the Secretary of State

us urgent

179. Mission informed that by invitation of Secretary of Commerce,64 Gen. Stoichev has had discussion with Director Bureau Foreign [and] Domestic Commerce65 re resumption U.S. Bulgarian trade relations. A desire to resume trade was expressed and attitude of Bulgarian Government requested. Stoichev is today instructed by cable to inform Dept that Bulgaria has great and varied need for goods only procurable in US but that until Bulgarian agriculture can be reorganized, great difficulty lies in payment. Stoichev instructed to offer 3,500 tons of tobacco and 500 kilos of rose oil (remytel 170, February 2566) and to request line of credit $10,000,000 to be repaid within 5 years. Immediate shipment of above tobacco and rose oil amounting to roughly $5,000,000 would reduce indebtedness by half. Mission will attempt to check origin of tobacco which may be Greek tobaccos for which US license refused to Coleman.

Foregoing if true so far as US initiative is concerned, seems to be somewhat at variance with our policy toward present Bulgarian Government which stubbornly refuses to make any effort in political field to facilitate US recognition. Reported US initiative in conversations with Stoichev may explain to some extent persistence of Bulgarian Minister of Foreign Affairs in believing US recognition imminent. Only 2 days ago, he assured Regents again that recognition would be forthcoming shortly. I strongly recommend coordination all US activity toward Bulgaria and that any serious conversations about credit be related to our political views about present Government despite general US policy of not tying political strings to credits.67

Repeated Moscow as 87.

  1. Henry A. Wallace.
  2. Amos E. Taylor.
  3. Not printed.
  4. In telegram 77, March 8, to Sofia, the Department replied: “While this Govt approves trade with Bulgaria on cash or barter basis, we do not encourage private credit transactions and no Exim Bank credit will be granted in present circumstances.” (611.7431/2–2646)