661.1115/36: Telegram
The Chargé in Great Britain ( Wright ) to the Secretary of State
[Received March 28—1:13 p.m.]
514. Department’s no. 306, March 24. Krassin is believed to have been selected for the reason that he is best equipped to gain the greatest commercial concessions. The British Government is believed to have accepted him because he is not thought to be a Communist at heart.
Without regard to the statement by the Foreign Office, announcement has been made in Parliament by the Minister of Food that this year Russia will export but little grain. The Department, however, knows of course of the various surmises regarding the actual condition of Russia’s transportation facilities.
The phrases to which the third paragraph of your telegram refers are almost in the wording of the text received from the Foreign Office. Trade in war munitions is the exception referred to and with that exception the British Government is ready to lift the embargo on private trade. Inquiry was again made at the Foreign Office today on this specific point. In reply it was reasserted that to date restrictions on private trade have not been removed but that upon conditions mentioned the Government is prepared to do so. Although the lifting of private trade restrictions will depend largely upon the coming negotiations, it is proposed by the Foreign Office to take up the question formally with the Prime Minister. I shall be informed of the results.
Although the Department of Overseas Trade is without doubt making efforts to interest individual British merchants, it may fairly be believed that they are extremely cautious with regard to trading with Russia.
As to the Department’s no. 300, March 22, apparently the Foreign Office had not considered recently the problem of securing restoration to the Rumanian treasury. Today or tomorrow the delegates [Page 708] of the cooperatives are due to arrive at Copenhagen. They will probably stay there a week and arrive in London about April 5. Negotiations will probably begin the latter part of the week they arrive. I have been promised an early answer to my inquiry regarding the measures considered in this matter, pending which reply the question will be kept under consideration in discussions with the Russian delegates.