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Embassy's proposal to sell to Admiral Kolchak's Government certain unexecuted Russian ruble notes which were printed in this country. I understand that part of the notes in question is now lying at Vladivostok, and that the balance, or such portion of the notes as may not be under direct control of the Embassy, is in the custody of the Sub-Treasurer of the United States at San Francisco.

In compliance with the request of the Embassy, Mr. Heid, at Vladivostok, has accordingly been instructed to deliver to the duly authorized representative of the Government of Admiral Kolchak such ruble notes as may be in his custody, and at the same time I am informing the Treasury that the notes held at San Francisco are to be delivered to such representative of the Embassy as the Ambassador may designate, and assume that you will inform the Treasury Department who is to receive the notes under the circumstances.

I should add that the Department offers no objection to this transaction on the understanding that there has now been paid to the accounts of the Russian Embassy, arising from American funds advanced to Russia and which have heretofore been disbursed only with the acquiescence of the Treasury Department, the sum of $650,000, representing fifty percent of the cost of manufacture of the bank notes in question, and that the balance of the total cost of $1,239,000, namely, $589,000, will be deposited to the same accounts on or before January 1, 1920, in completion of the purchase price which you tell me has been agreed to by the Government of Admiral Kolchak.

I understand furthermore that in the event that the Government of Admiral Kolchak fails to fulfill the terms of payment as indicated above, the Embassy will then withhold from shipment to Russia an equal quantity of ruble notes of the same series and denominations from the supply which you state is now being printed by the American Bank Note Company under contract with Admiral Kolchak's Government.

I am [etc.]

861.51/680

WILLIAM PHILLIPS

The Russian Financial Attaché (Ughet) to the Acting Secretary of

1-5766

State

NEW YORK, September 29, 1919.
[Received September 30.]

MY DEAR MR. PHILLIPS: I have the honor to acknowledge receipt of your letter of the 26th inst., in which you state that the Department of State would have no objection to sell to Admiral Kolchak's Government bank notes which were printed in this country.

I consider that the conditions stated in your letter concerning the release of the bank notes are quite acceptable and I take this oppor

tunity to thank you most sincerely for the help rendered by you to the Russian Government in this question.

I am [etc.]

S. UGHET

American Attempts to Avoid Entanglement in the Factional Strife in Eastern

861.00/3587

Siberia

The French Chargé (De Chambrun) to the Acting Secretary of

State

[Translation"]

WASHINGTON, December 19, 1918.

[Received December 26.]

MR. SECRETARY OF STATE: I have the honor to inform you, by direction of the Minister of Foreign Affairs of the Republic, that the French and English Governments have agreed upon the following determination of the relations of Generals Janin 10 and Knox 11 to each other in their respective commands: General Janin would be in chief command of all the Allied, Russian and allogeneous troops in eastern Russia and west of Lake Baikal in Siberia. General Knox, as his assistant, would be in charge of the services in the rear, with the special duty of providing all the contingents at the front with the needed supplies.

In directing me to acquaint you with this arrangement which, it doubts not, will meet with the Federal Government's approval, my Government calls attention to the fact that it does not in any way alter the position previously taken in principle about the recognition of the powers and duties of the Japanese High Command over all the Allied forces operating east of the Baikal.

In my Government's judgment, the splitting of the command in the eastern and western parts of Siberia, which is justified by the requirements of the command itself, should not in any way tend to weaken the homogeneousness of the Russian contingents or prevent their being utilized out of the section in either zone where they may happen to be.

The recent occurrences at Omsk indeed have shown the true advantage there is in asserting the political solidarity of the two Siberian regions by a physical support of western Siberia by eastern Siberia. To keep the communications over the Trans-Siberian open and to carry, if the necessity arises, Russian forces organized in

"File translation revised.

10 Gen. Maurice Janin, of the French Army, supreme commander of the Czechoslovak Army.

"Maj. Gen. Alfred W. F. Knox, commanding the British troops in Siberia.

eastern Siberia to the Ural front, are two conditions that must be fulfilled if that support is to be efficacious.

The Government of the Republic suggests to that end, that in order to insure the safekeeping of the Trans-Siberian, mixed detachments be formed with American and Japanese contingents in equal numbers which would be distributed at the main points of the line. Beside the military advantage to be derived from placing at General Janin's disposal Russian contingents raised or maintained by the Japanese Government, the suggested utilization of those detachments would likely bring to an end the grave difficulties brought upon eastern Siberia by the dissenting and turbulent elements which operate there far from the base of their autonomous action and may at any time stir up fresh trouble.

My Government would be glad if the foregoing suggestions were favorably entertained by the Federal Government and if instructions in that sense were sent to the American military authorities in Russia.

Be pleased to accept [etc.]

CHARLES DE CHAMBRUN

861.00/3580: Telegram

The Minister in China (Reinsch) to the Acting Secretary of State

Following from [Harris at]

"5. 3d. For Department.

[PEKING,] January 3, 1919. [Received January 4, 10:42 a.m.] Omsk.

Situation in Trans-Baikal according résumé of report by Vice Consul Thomas, Chita.

Semenoff has constituted himself commander of the eastern Siberian Army. He suggests no [other] reason for this than [that] Kolchak is personally unacceptable to him. Semenoff could have scarcely taken such action without hope of Japanese support. His policy is largely determined by self-interest of those surrounding him. Semenoff has established his own shops in various towns Trans-Baikal and sells food, which he buys for 18 roubles, for 34 roubles a pood. His officers also engage in trade and they greatly misuse car space for personal profit. Semenoff and large majority of officers openly state that only monarchy is acceptable to them. The majority of peasants and middle class Trans-Baikal are against monarchy, but many liberal-minded people consider restoration unavoidable. Impression prevails there that extreme Right is preferable to extreme Left. Harris."

REINSCH

861.77/611 c: Telegram

The Acting Secretary of State to the Commission to Negotiate Peace

WASHINGTON, January 7, 1919, 5 p.m.

130. Referring my 113 dated January 6, 6 p.m.,12 the French Chargé d'Affaires has presented the following note, (translation) which presents in another form the question of using American Troops to insure the protection of the Trans-Siberian railways. Public sentiment is extremely restive on the whole subject of Russia as I telegraphed you last night. I gather from informal conversation with General March 13 that unless the President issues instructions to the contrary, he will proceed with measures to withdraw the American forces now in Siberia at the earliest possible opportunity:

[Here follows translation of note from the French Chargé of December 19, 1918, printed ante, page 459.]

Please instruct me what reply you desire me to make to this note. Copy has been referred to the Secretary of War for his comment on the military situation which is involved.

POLK

861.00/3613

The British Chargé (Barclay) to the Acting Secretary of State

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His Britannic Majesty's Chargé d'Affaires presents his compliments to the Acting Secretary of State and has the honour to inform him, by direction of his Government, that General Janin and General Knox have come to an agreement dealing with their respective sphere[s] of activities in Siberia. All the Allied troops, Russian as well as foreign, west of Lake Baikal, will henceforth be controlled by General Janin, subject to any orders which he may wish to give to British troops and to the concurrence of His Majesty's Government as advised by General Knox.

General Knox will be associated with General Janin as Director of Communications, charged with the special duty of dealing with all questions of arrangements for sending contingents to the Front and the supply of materials. The agreement does not modify the understanding that the Japanese enjoy special powers East of Lake Baikal, in regard to all troops operating in that area.

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In bringing the above to the notice of the United States Government, His Majesty's Chargé d'Affaires is directed to explain that the arrangement is merely intended to coordinate communication between Eastern and Western Siberia, and to secure to the best possible advantage the utilization of available resources.

His Majesty's Government understand that an arrangement satisfactory to both parties has already been come to between General Janin and Admiral Kolchak in regard to this agreement.

WASHINGTON, January 8, 1919.

861.00/3658

The British Chargé (Barclay) to the Acting Secretary of State

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His Majesty's Chargé d'Affaires presents his compliments to the Acting Secretary of State and has the honour to inform him, by direction of His Majesty's Government that on January 3rd a memorandum and telegram from the Japanese Minister for Foreign Affairs were communicated to the Foreign Office by the Japanese Ambassador in London reporting that in addition to the 13,000 men who had already been withdrawn from Siberia, the Japanese Government intended to withdraw a further 34,000 men, and stating that they had sent instructions to their representatives at Omsk and Vladivostok to use their best endeavours to bring about a reconciliation between General Semenoff and Admiral Kolchak in cooperation with their French and British colleagues.

His Majesty's Government have communicated to the Japanese Ambassador a memorandum in reply explaining their attitude with regard to the dispute between General Semenoff and Admiral Kolchak. In this memorandum His Majesty's Government point out that their sole interest is the safety of the forces operating in Western Siberia and while they have no wish to enter into the merits of the dispute as between the two above mentioned officers, the fact remains that the inability of those two gentlemen to arrive at an understanding has practically resulted in the suspension of communication on the Siberian Railways and His Majesty's Government cannot but contemplate such a state of affairs with the gravest misgiving in view of the aggressive attitude adopted by the Bolshevist forces. Reports received from His Majesty's Representatives in the Far East attributing this interference to General Semenoff are too circumstantial to permit of His Majesty's Government doubting their authenticity and in the circumstances His Majesty's Government feel that a risk of disaster is involved, the consequences of which they do

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