661.1115/33: Telegram
The Chargé in Great Britain (Wright) to the Secretary of State
[Received 5:20 p.m.]
493. Department’s no. 232, March 6,89 and our no. 477, March 19.90 Foreign Office reply received last night, dated March 20. It acknowledges our memorandum and expresses gratification that the United States takes much the same view as does the British Government in regard to the necessity of a resumption of trade with Russia. The prospect of proposed common course is welcomed and following observations are offered.
The British Government, for reasons already announced, has at present no intention of establishing diplomatic or political relations with the Bolshevik Government. On this point they substantially agree with us. The delegation sent by the cooperatives to London is only intended to make arrangements as to the method of exchanging such commodities as metals, flax, and corn for goods which are vitally essential, agricultural tools, etc. We shall be kept informed regarding these negotiations.
Our view that the continuance of present trade restrictions and the prevention of exchange of commodities by private enterprise has no further warrant is shared by the British Government. Until now restrictions have been imposed upon such private trade but except for munitions the blockade of the Baltic, North Russia, and the Pacific has been raised recently. With the exception mentioned, the British Government is ready to lift the embargo on private trade, at the risk, however, of persons engaging in it. Their protection can be guaranteed in no way.
[Page 706]The beginning of the new policy at such an early date as that suggested by the Department has not been possible, for the delegation sent by the cooperatives is only now due in this country and also some time will be necessary to determine the extent to which general commercial restrictions may be removed. The protection of those engaged in trade is a matter which must be carefully examined during the discussions.
The Foreign Office expressed some doubt, as reported previously, as to the meaning of the last part of our memorandum, that relating to the dispersion of securities which have been obtained illegally. The Foreign Office asks, therefore, for further information regarding this and expressed its willingness to bring this point up if necessary at the approaching negotiations.
I am mailing the full text,91 but elaboration of the views of the Department will assist materially here in the informal discussions.