File No. 763.72/8124

The Consul at Tiflis ( Smith ) to the Secretary of State

[Telegram]

The Prime Minister of Trans-Caucasus informed me to-day that unless the government could obtain 60,000,000 rubles immediately it would have to turn over government to Maximalists. This will be a great disaster particularly in view of the proposed early union with federation indicated in my telegram of December 11. Strongly [Page 590] urge as provisional measure that I may be authorized by return cable to place this sum at their disposal, expenditures subject to joint control of the Allies. If loan is granted on the conditions named, I believe I shall be able to secure disarmament of the troops returning from the Turkish front, all Maximalists. The arsenal here was taken from the latter by the government to-day. I anticipate little bloodshed if proposed measures be carried out promptly. I am energetically supporting the union with Southeastern Russian federation.

Smith