861.5151/12–2447: Telegram
The Ambassador in the Soviet Union (Smith) to the Secretary of State
niact
us urgent
3431. Durbrow attended diplomatic corps meeting yesterday, full report of which is being transmitted by airgram.1 In brief, after 3-hour discussion, nothing was accomplished except complete division along general line to which we have become so thoroughly accustomed in GA and elsewhere with addition of number of guilty consciences presumably resulting from black market operations. I talked with British [Page 646] Ambassador today and it is quite obvious that no collective diplomatic action can be expected.2 He has asked for further instructions and expects to be directed to make individual approach. Some Missions have already done this without result. In absence of collective protest, I propose to make separate protest coordinated generally as to timing and general content with that made by British and other Missions which intend to take this action. Propose general line that treatment accorded diplomatic missions unacceptable, discriminatory and not in accordance with international practice, pointing out we have transferred dollars to rubles through official channels to meet our current expense, that these matters are of record and represent transfer foreign exchange for rubles at fixed rate agreed to by both parties. In making such exchange we expected Soviet currency obtained for value given would be honored by Soviets. On contrary, without warning, official funds on hand were arbitrarily reduced nine-tenths in value with Soviet Government expropriating to own benefit considerable sum. Furthermore, will point out treatment accorded diplomatic Missions by other countries who have recently converted funds (Deptel 2037, December 17) will endeavor assimilate our official cash position to decree which allows Missions with bank accounts to convert 1-to-1 basis average monthly funds on deposit.
Will make strong protest re diplomatic rate but I do not anticipate that we will obtain any concession whatever on this point.
Would be grateful for additional suggestions from Department and concurrence with proposed line of action,3 but should have this not later than Monday December 29, as British Ambassador expects instructions by end this week.
- Airgram A–1403 from Moscow on December 27, not printed.↩
- In the more detailed description of this meeting in airgram A–1403, it was reported that the Chinese Ambassador, as Dean of the Diplomatic Corps, had made it clear that he would take no action whatsoever. Several diplomatic representatives (the Egyptian Minister, the Yugoslav, Czech, and Polish Ambassadors) spoke in favor of the action taken by the Soviet government, and “many sheep in the group” were scared. After long discussion on unrelated subjects the meeting ended without a vote, as it was obvious that the corps was divided into two opposing groups which made collective action impossible. (861.5151/12–2747)↩
- By telegram 2063 to Moscow on December 26, 5 p. m., the Department of State approved the proposed separate protest, which it believed to be as strong as could be presented under the circumstances. (861.5151/12–2447) Three notes of protest were handed to Deputy Foreign Minister Vyshinsky on January 7, 1948.↩