861.01/189: Telegram
The Ambassador in Great Britain ( Davis ) to the Secretary of State
[Received February 7—3:02 a.m.]
207. Department’s telegram no. 95. Today I discussed this question with Lloyd George who assured me that for the present there is no intention of recognizing the Government of Soviet Russia. The Prime Minister desires peace in Russia and thinks that the regime of the Bolsheviki is changing color and has given up the use of terror. He believes that a stable regime will be brought about by opening the country up to trade. He does not credit the possibility of the Bolsheviki engaging in militaristic designs when fighting ceases on their frontiers. He frankly believes peace should be made without delay, giving a confirmation of the conversation which I reported in telegram no. 155.84
O’Grady85 and Litvinov are still negotiating at Copenhagen regarding [garbled group] trade. Various objections are made by Litvinov to dealing with the cooperatives. He objects that it would create a monopoly; that agents of the cooperatives who are now abroad have had relations with Denikin, Yudenitch, Koichak, and company, and have ceased to be representative of their fellows within Russia; and that the cooperatives only deal in goods commonly used, whereas there is immediate need in Russia of motor trucks, locomotives, and machinery to start her factories and reorganize her [Page 703] trade. Russia is willing to make gold payments for all of this. Litvinov also states that the Government of Soviet Russia cannot give assistance to trade until it can have peace in place of war and is given a guarantee that she will not be invaded. He insists that pressure should be used to induce the border states and Poland to immediately make peace. The reply of the British is that they do not at all object to opening private trade in the goods named and other articles if the Russians are in reality private traders and are not agents of an official character who will make use of the opportunity to carry on propaganda against the Governments of other nations. The actions of Litvinov himself while in England are cited in this connection. Lloyd George positively states that he does not know what are the guarantees to which Litvinov alludes. Lloyd George insists he will give no guarantees. He believes the attitude of the United States with regard to Soviet Russia at the present time is exactly the same as that of Great Britain a year ago before £100,000,000 had been spent in vain.