811.50/7–749: Airgram
The Ambassador in the Soviet Union (Kirk)1 to the Secretary of State
restricted
A–705. Reference is made to the Embassy’s A–638 of June 18, 1949,2 and to previous reports on Soviet press treatment of the economic crisis which allegedly is advancing on the U.S. During the period since June 18, this subject has gained in prominence to the extent that it now is the theme most consistently emphasized in the Soviet press. Each day brings new reports on some phase of the economic difficulties of the U.S. and the capitalist world in general, and so numerous are these articles that the Moscow newspapers have adopted the practice of arranging them in order so that the Soviet reader may better trace the spread of economic depression throughout the capitalist system.
A typical example was Pravda of June 30 which arrayed together, in two adjoining columns, Tass reports under the following headlines: “Anglo-American Economic Contradictions”; “Harriman3 Confers with Cripps”;4 “Reduction of Britain’s Dollar and Gold Reserves”; “Plow They Maintain High Prices in Denmark”; “Deterioration of Economic Situation in United States”; “Share Prices Fall on New York Market”; “Deficit in Budget of U.S. Government”; and “Catastrophic Financial Situation in South Baden”.
The dominant theme within this general subject has now become the thesis that the inherent contradictions of capitalism are being sharpened as disaster approaches the capitalist world. This applies, of course, to all capitalist countries but has particular reference to Britain and the U.S., which are depicted as historical and natural enemies. Needless to say, the Soviet press has pointed up alleged U.S.-British differences on the Anglo-Argentine trade agreement, on the matter of inter-European payments under the Marshall Plan, and U.S. efforts to secure the devaluation of the pound sterling. In general, [Page 630] the U.S. is represented as increasing her pressure on all “Marshallized” countries in desperate efforts to postpone her own inevitable crisis and to mitigate its effects.5
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- Vice Adm. Alan Goodrich Kirk presented his letters of credence as Ambassador on July 4 to Nikolay Mikhailovich Shvernik, President of the Presidium of the Supreme Council of the Soviet Union, and assumed charge of the Embassy.↩
- Not printed.↩
- W. Averell Harriman was United States Representative in Europe under the Economic Cooperation Act of 1948, with the rank of Ambassador.↩
- Sir Stafford Cripps Was Chancellor of the Exchequer in the Labor Cabinet of Prime Minister Clement R. Attlee.↩
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Excerpts from an editorial in Pravda of July 5, illustrative of the current propaganda on this general subject in the Soviet Union, which concluded this telegram, are omitted.
The obsession about the economic crisis in the United States continued to excite the Soviet press through this year. The Embassy sent along some statistics and indicators about this crisis in telegram 2712 from Moscow on October 28. It quoted a judgment from New Times of October 26: “Barometer economic life leading capitalist country falling, showing further development crisis. Such is inexorable actuality.” (811.50/10–2849) Telegram 3048 on December 8 told of an article in Pravda of that day which portrayed a sad picture of the economic situation in the United States and declared that “many government experts expect further drop in economic activity during second half coming year” with prospects of “concomitant increase unemployment.” (811.50/12–849) Even a cartoon illustrating the “Approaching Economic Crisis in the United States” which had been printed in Komsomolskaya Pravda for December 18, was sent in despatch No. 812 to the Department on December 27. (811.50/12–2749)
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