detailed information as to the commodities most needed by Russia and the commodities likely to be available for export from Russia. Additional vessels will from time to time be scheduled and shippers are urged to file applications for licenses to export to Russia such commodities as they know to be needed. POLK File No. 661.119/304i The Acting Secretary of State to the American Commission to Negotiate Peace, at Paris [Telegram] WASHINGTON, December 24, 1918, noon. 118. For the Secretary of State from McCormick [War Trade Board]: I wish to bring to your attention the following with regard to the Russian situation: Since the conclusion of the armistice, the general condition of world trade has altered very materially, and this alteration has greatly increased the accessibility of Russia to foreign traders. The cessation of hostilities has made it necessary for the War Trade Board to relax, to a large extent, their restrictions upon exports and imports with respect to almost every country of the world, because the necessity of conserving our own domestic resources through export restrictions and conserving tonnage through import restrictions has practically disappeared. The War Trade Board feel that they can not effectively prevent trade with Russia through China and Japan and it is now possible to trade freely with Russia through China and Japan without any reference whatsoever to the control of the War Trade Board. The only means of controlling such transit traffic is by requiring in the case of exports through China or Japan a guarantee against reexport, but this control is at best an ineffective one and not susceptible of complete enforcement, and accordingly we do not regard it as practicable. It appears that there is available for Russian trade an amount of shipping which is more than sufficient to carry all the commodities which the Russians are able to absorb under the present chaotic conditions. It has therefore become apparent to us that our present system of control is becoming less and less effective and that any attempt to control Russian trade through the medium of an export and import control in the United States and in the associated countries will prove abortive; and that if it is desirable to continue the supervision and direction of Russian foreign trade, this can be effected only through the adoption of some comprehensive scheme for a control by the Associated Governments of all merchandise entering or coming from Russia and Siberia; and it further appears that any such scheme must involve the establishment of an inter-Allied control upon Russian ground and the establishment of control organizations at all the gateways of Russia. For these reasons I am hoping upon my arrival in Paris to be able to present to you the views of the War Trade Board upon the recent developments in the Russian situation. The foregoing concerns vitally the future of corporation known as the "War Trade Board of the United States Russian Bureau, Inc.," which was organized with a capital of $5,000,000 allotted by Executive order from the appropriation for national security and defense. This corporation commenced to accomplish, under war conditions permitting of an effective control, many useful functions in connection with the plan to render economic aid to Russia by stimulating and cooperating with private enterprise, and at the same time controlling and directing exports to Russia. At the time of its incorporation, the need for such an organization was apparent, as the world-wide shortage of many commodities and the scarcity of ocean transportation, together with conflicting interests of various governmental departments, created such a situation that economic assistance could be effected only through the medium of a company which was authorized to engage in trade, and which at the same time operated under government auspices. The relaxation of the export and import control, particularly with respect to the countries adjoining Russia, and the general improvement of the tonnage situation and the consequent probability that uncontrolled private trade with Russia will soon revive on a considerable scale, have all placed this corporation in an anomalous position, because the company has become, or will soon become, a competitor of American and foreign private capital without at the same time being able to effect a proper control of Russian trade which was one of the primary reasons for its existence. It is quite likely that such competition unaccompanied by the accomplishment of the original purpose of controlling Russian trade for the benefit of the Russian people will be resented both by the public and by the commercial interests and governments of friendly countries. Until further developments, the Russian Bureau, Inc., will continue to perform such useful functions as will assist the Russian situation, at the same time incurring no obligations which can not be fully discharged upon the dissolution of the War Trade Board, or be properly accomplished through the permanent governmental departments. The corporation will continue its organizations here and in Russia so that they may be prepared to be the nucleus of an organization to carry out a more comprehensive inter-Allied program, should it be desirable to utilize the company for this purpose. POLK File No. 861.48/735 The Chargé in Russia (Poole) to the Secretary of State [Telegram] ARCHANGEL, December 30, 1918, 5 p. m. [Received January 1, 1919, 7.44 a. m.] 705. Pursuant to Department's 336 [326], October 26, 4 p. m.,1 inventory has been completed of merchandise now at Murmansk, showing total value of $150,000. Distribution will begin at once under 1Ante, p. 159. direction of Lieutenant Bukowski of the office of the military attaché and a representative of the provisional government. Report follows by mail.1 It appears from telegrams received by the provisional government from the Russian Embassy at Washington, that certain further consignments are en route from America in charge of Engineer Malishevski. I have informed the provisional government that in the absence of other instructions from the Department this Embassy will not further participate in distribution. I have explained that this decision has been taken not because the Embassy is unwilling to help, but out of deference for the principle of leaving consistent activities as far as possible entirely in Russian hands. POOLE Chinese Embargo on Exports to Siberia: Withdrawal at the Instance of the United States File No. 600.939/32 The Minister in China (Reinsch) to the Secretary of State [Telegram] PEKING, January 28, 1918, 5 p. m. [Received January 29, 3.37 p. m.] At the instance of British Minister, the Chinese Government has prohibited every kind of exportation from Manchuria into Siberia. It is probable exception will be issued in favor of merchandise in transit to Vladivostok for export. Please instruct whether you desire me to assent to this prohibition as expected it affects merchandise owned by Americans. American Consuls Harbin and Vladivostok report people of Irkutsk and Vladivostok protest against prohibition of foodstuffs exported. REINSCH File No. 600.939/32 The Secretary of State to the Minister in China (Reinsch) [Telegram] WASHINGTON, February 2, 1918, 3 p. m. Your January 28, 5 p. m. The American Government can not assent to the prohibition of the export to Siberia of merchandise owned by Americans. You will so represent to the Foreign Office and say that in the opinion of the American Government any embargo on exports to Siberia, particularly at this time, is inadvisable. The attitude of this Government towards the Bolsheviki is set forth in the President's recent address to Congress1 and in Department's telegrams of January 16, 4 p. m.,2 and January 21, 7 p. m.3 LANSING File No. 661.939/11 The Ambassador in Russia (Francis) to the Secretary of State [Telegram] PETROGRAD, February 2, 1918, 9 p. m. [Received 12.02 p. m.] 2321. Have conferred with Chinese Minister who says embargo on exports to Russia placed by his Government on the request of Allies; if so, think mistake certainly as regards foodstuffs. Chinese Minister wiring recommending raising thereof in which I recommend your assistance. Soviet threatening reprisals which would be serious as many thousands Chinese in Russia. Furthermore very desirable be no more differences between our Allies. Five Allied Ambassadors meet here this afternoon to consider situation. Just received telegram dated January 31 from American Consul, Vladivostok, asking whether Americans safe and if communication with you interrupted. Have you not received our cables regularly? FRANCIS File No. 600.939/32 The Acting Secretary of State to the Ambassador in Japan (Morris) [Telegram] WASHINGTON, February 4, 1918, 5 p. m. On January 28 the American Minister at Peking telegraphed that the Chinese Government had prohibited all exports from Manchuria into Siberia. He thought it probable, however, that exception would be made in favor of merchandise in transit to Vladivostok for export. On February 2 the Department instructed the American Minister at Peking that the American Government could not assent to the prohibition of the export to Siberia of merchandise owned by Americans. He was instructed so to inform the Foreign Office and say that in the opinion of this Government any embargo, particularly at this 1The President's address to Congress of Jan. 8 stated war aims and attitude toward Russia. 2 Vol. II, p. 28, footnote 2. 4 Ibid., p. 31, footnote 1. The same, mutatis mutandis, on the same date, to the Ambassadors in France (No. 3141) and Great Britain (No. 6441), and to the Consul at Vladivostok. time, on exports to Siberia was inadvisable and his attention was called to the attitude of this Government towards the Bolsheviki as set forth in the President's recent address to Congress and in the Department's telegram of January 21, 7 p. m., which was a copy of one sent to you January 20, 6 p. m.1 POLK File No. 600.939/36a The Acting Secretary of State to the Ambassador in Russia (Francis) [Telegram] WASHINGTON, February 6, 1918, 7 p. m. 2047. Your 2321, February 2, 9 p. m. Department now informed embargo by Chinese placed at instance British Minister at Peking. We have informed Chinese Government that the American Government can not assent to the prohibition of the export to Siberia of merchandise owned by Americans and that in our opinion any embargo on exports to Siberia, particularly at this time, is inadvisable. The Department has further advised both British and French Governments that, for the present, we feel it is important an impression should not be created in the minds of the Russian people that they are being abandoned by the Allies or the United States and that consequently we are permitting to go forward, both via Kola and via the Pacific, all supplies, other than munitions, for which tonnage can be found. These supplies now include railway material, agricultural machinery, binder twine, shoes and leather, and Red Cross and other supplies for civilian population. Attitude of this Government towards Russia defined by President's address to Congress. Two ships now loading at Pacific port, another at New York for Kola. POLK File No. 600.939/34a The Secretary of State to the Minister in China (Reinsch) [Telegram] WASHINGTON, February 14, 1918, 4 p. m. Department's February 2, 3 p. m. Has Chinese Government removed embargo on food exports to Siberia? If not, renew representations and telegraph result. It is reported to the Department that Bolsheviks are retaliating. 1 1 Vol. II, p. 31. LANSING |