800.51W89 U.S.S.R./36: Telegram
The Secretary of State to the Ambassador in the Soviet Union (Bullitt)
45. Department’s 36, April 9, 4 p.m. Soviet Ambassador called on me April 16 and stated that he was instructed by his Government to discuss further with me the debt situation. He said that Litvinoff was very much disturbed about the reports he had changed his position, and that according to his version of the debt conversations he had agreed that his Government would pay $75,000,000, but that if upon consideration of the matter the President should be of the opinion that they should pay more than this, the Soviet Government would consider a payment of not exceeding $100,000,000, according to the President’s decision, after further and full conversations with Soviet officials. The Ambassador stated that nothing was said in these conversations about the question of interest.
I said that when the existence of a debt was admitted interest accrued on it until payment unless there was something said or understood to the contrary, and that this would mean interest at a reasonable rate in all the circumstances.
The Ambassador expressed from the beginning of my conversation with him a desire under instructions to see the President to present Litvinoff’s view and that of his Government. This conversation and what the Ambassador has since said to Moore shows he is greatly disturbed.