ture in 1921, Rs. 1,000,000,000 in 1925, and Rs. 2,000,000,000 in 1926; remainder are 49-year bonds maturing in 1963. Says state holdings of lands and forests and deposits of coal, petroleum, platinum, and gold aggregate much more [than] total indebtedness. Pokrovski, late Minister for Foreign Affairs and former Comptroller of the Empire, is now employed by Government in appraising Russia's assets. Shall cable report when finished. My judgment is that Russia can undoubtedly meet all obligations. What Minister of Finance most desires is long time, and would pay 412 per cent or even 5 per cent therefor. Says confidentially would like to transfer from England to us the $360,000,000 mentioned in my No. 1204, but without taking same out of our loan to Russia which should be at least equal to that of England and France (see my telegram 1211 to Lansing concerning conditions 1). FRANCIS File No. 861.51/137 The Ambassador in Russia (Francis) to the Secretary of State [Telegram] PETROGRAD, April 25, 1917, 6 p. m. 1222. Minister of Finance and myself anxiously awaiting advices concerning Russian credit. Anticipating its extension, Minister of Ways of Communication cabled Schulenburg, Russian purchasing agent, New York: Immediately order to commence work 500 locomotives and 10,000 twenty-ton cars for quickest delivery. Consult American War Department. Credit terms arranged later but money considered quite sure. This result of conference with Embassy military attaché. Say to Secretary of the Treasury I have made no definite promise but think advances to Russia safe and advisable for vigorous war preparations. FRANCIS File No. 861.51/138 The Secretary of State to the Ambassador in Russia (Francis) [Telegram] WASHINGTON, April 28, 1917, 2 p. m. 1359. From Secretary of Treasury: Cable received. Am considering carefully credit needs Russia along with other governments. Hope to reach conclusion shortly 1 Vol. 1, p. 27. and will advise you fully. Contemplated orders for freight cars and locomotives should not be considered without consultation with Treasury Department. This most important if purchases are to be made on reasonable basis and proper deliveries secured. Contemplated financial arrangements under act of Congress will necessitate formation of commission under direction of the Treasury through which all purchases of supplies in United States for Allied Governments may proceed with assurance of proper coordination and best results. Great Britain, France, and Italy have accepted this principle and loans to them will be made on this basis. Understand that Russia also accepts this principle. Details being worked out. Full advices will be sent you at earliest possible moment. Meanwhile somebody in Washington should be given plenary power to act for and sign necessary obligations and agreements for Russian Government as well as power to draw checks against deposits of the funds which may be loaned by Treasury Department. Otherwise unnecessary delays will result. LANSING File No. 861.51/140 The Ambassador in Russia (Francis) to the Secretary of State [Telegram] PETROGRAD, April 29, 1917, 8 p. m. [Received April 30, 6.30 a. m.] 1 1236. Just had call from two Ministers who tell me Ministry much astonished over presence there of English and French missions 1 and statements in press that credit likely to be extended to England at rate of $200,000,000 monthly; to France for $100,000,000; to Italy for $50,000,000; and to Russia for probably $100,000,000. They are very fearful of our granting credit to England for Russia or to Russia through England and say such policy would be grievous mistake and would hurt Russian pride irreparably, in which I fully concur. New liberty loan very popular. Minister of Finance addressed Moscow Bourse Friday when resolution was unanimously adopted pledging every interest represented to subscribe to extent of 25 per cent of its capital. Subscription was Rs. 700,000,000. Object of this call was to caution us against extending credit to Russia through England whose patronizing attitude is bitterly resented by people and Ministry. Russian commission will leave within ten days. Can we send cruiser to Bergen or Liverpool to meet it? Such suggestion made by Ministers calling and strikes me favorably. 1British and French missions, headed respectively by Balfour and Viviani, arrived in Washington Apr. 23 and 25. Callers told me Ministry resented suggestion of British Ambassador that Siberian Railway be turned over to us, saying Russia does not need nurses but had agreed directly with us concerning Vladivostok and had candidly told me yesterday of their wishes and requirements in White Sea. You see their sensitiveness especially [as concerns] England. FRANCIS File No. 861.51/141 The Ambassador in Russia (Francis) to the Secretary of State [Telegram] PETROGRAD, May 1, 1917, 8 p. m. [Received May 2, 11.30 p. m.] 1239. For Secretary of the Treasury: Answering Department's 1359, April 28, 2 p. m. If I understand your message you propose forming commission for giving orders there for all [supplies?]. Such arrangement seems wise and is acceptable to the Minister of Finance, Minister of Ways of Communication, Minister of Trade and Industry, with whom had joint conference to-day. They would greatly appreciate, however, our prompt contracting for 10,000 freight cars and 500 locomotives and our arranging for delivery thereof at Vladivostok, this being start on 40,000 freight cars and 2,000 locomotives. Their rolling stock requirements are urgent. Whenever such contracts consummated, Russian Chargé d'Affaires will be authorized to execute whatever form of obligation you prescribe and to draw checks against deposits. They still object to any intermediary between ourselves and Russian Government. Holbrook, representing International Corporation, here endeavoring to secure commission for purchase of railroad equipment and so informs me. Of course I am recommending no specific American firm but relying upon you for Russia's necessities being promptly and fairly met. FRANCIS File No. 861.51/142 The Secretary of State to the Ambassador in Russia (Francis) [Telegram] WASHINGTON, May 7, 1917, 5 p. m. 1386. Your 1239, May 1, 8 p. m. Secretary of the Treasury replies to your telegram May 1 as follows: The act of Congress authorizes the Secretary of the Treasury to lend money to foreign governments making war on Germany on such terms and conditions as he thinks necessary or desirable, but he must take back an obligation from the foreign government to which the loan is made, bearing 312 per cent interest and having a maturity to be agreed upon. In order to negotiate such a loan it is necessary for some representative of the Russian Government in the United States to be empowered by the Russian Government to sign the necessary agreement or agreements containing the terms and conditions under which the loan is made, and also to execute the note or obligation of the Russian Government to the United States. After the loan is thus made, the representative of the Russian Government in the United States should have power to open an account with the Treasurer of the United States, or with banks in the United States designated by the Secretary of the Treasury, and to draw checks against such account in order that payments may be made from time to time for supplies purchased in the United States. The loan transaction will be a direct one between the United States Government and the Russian Government, but no progress can be made until the Russian Government fully empowers its representative in the United States to act for and bind it. Will such power be conferred and upon whom? The loan so made by the United States Government will contain a provision that no supplies are to be purchased in the United States without the approval of a representative of the Treasury Department. This will insure the purchase of supplies in the United States upon the most reasonable terms and will facilitate prompt deliveries. This is as much to the interest of the Russian Government as to the American Government, because there is not an unlimited supply of credit in the United States and the demands of all the Allied Governments are great. Our credit resources must, therefore, be used to the best advantage. After the loan is made the Russian representative in the United States designated by the Russian Government to make purchases can negotiate immediately through the Treasury Department for the purchase of railroad cars and locomotives as desired by the Russian Government, and everything will be done by this Government to facilitate such purchases and deliveries. Please make this clear and cable reply quickly as possible. LANSING File No. 861.51/145 The Ambassador in Russia (Francis) to the Secretary of State [Telegram] PETROGRAD, May 11, 1917, midnight. 1275. For Secretary of the Treasury: Your 1386 received to-day. May [they?] accept it and Minister for Foreign Affairs says plan entirely satisfactory. Minister of Finance authorized Russian Chargé d'Affaires, Washington, act for Russia until Bakhmeteff1 arrives about June 15. FRANCIS File No. 861.51/146 The Ambassador in Russia (Francis) to the Secretary of State [Telegram] PETROGRAD, May 15, 1917, 8 p. m. 1291. Your 1359.2 Foreign Office now formally advises me at the request of Russian Chargé d'Affaires at Washington that Mr. Onou is designated by the Russian Government to sign in the name of his Government the obligations and make declarations in connection with the bill for credits to the Allies pending the arrival in America of Mr. Bakhmeteff. FRANCIS File No. 861.51/148 The Secretary of State to the Ambassador in Russia (Francis) [Telegram] WASHINGTON, May 17, 1917, 6 p. m. 1415. The Secretary of the Treasury desires you to communicate the following to the Minister of Finance: The Secretary of the Treasury salutes the Minister of Finance of Russia and begs to inform him that he has, with great pleasure, established to-day a credit in behalf of the Russian Government of $100,000,000. This credit is to bear interest at 3 per cent per annum until converted as hereinafter stated. Interest will begin to run from the date of the respective drafts drawn by the Russian Government against this credit. The same arrangement has been made with regard to this credit as with the credits established by the United States Government in favor of Great Britain, France, and Italy; namely, that the supplies purchased in the United States with the proceeds of such credits shall be made through a commissioner, or a commission of the Treasury Department, whose duty it will be to make such purchases in behalf of and on the requisitions and speci 1Boris A. Bakhmeteff, head of the Russian mission to the United States, and later, July 5. 1917, Ambassador at Washington. Ante, p. 5. |