861.5151/195: Telegram
The Ambassador in the Soviet Union (Standley) to the Secretary of State
[Received 8:45 p.m.]
479. On May 16 Vyshinski53 told me that the Soviet Government had information to the effect that Commander Frankel54 was engaging in illegal ruble transactions at Murmansk. I made inquiry through the Naval Attaché and Frankel reported that he had been advancing up to 1500 rubles per ship to the masters of some American vessels at the diplomatic rate.55 Frankel stated that in so doing he was following the practice pursued by representatives there of the British Ministry of War Transport which had been similarly accused of illegal ruble transactions. I have discussed the matter with the British Embassy which confirms Frankel’s statement. On being informed by the Soviet Foreign Office of the matter the British Embassy obtained a full report from Murmansk and then submitted recommendations to London as to the position it should take respecting this matter vis-à-vis the Soviet authorities. In substance these are that it cannot be supposed that the Soviet Government wishes to penalize the crews of vessels engaged in bringing aid to the Soviet Union, at grave risk to themselves, and that it is accordingly hoped that the authorities may see their way clear to permitting the making available of rubles at the diplomatic rate to these crews to meet their personnel expenses while in port at Murmansk or Archangel.
Uskievich, a clerk in the office of the Naval Attaché, entered Russia through the north and has reported to Captain Duncan that the crew[s] of our merchant ships are subjected to many inconveniences in endeavoring to avail themselves of shore leave. He says that a single meal such as can be had cost $7 or $8 and that there are no lodgings for overnight leave. As a result crew members faced with an extremely dangerous voyage of close on 4 months state they will not again ship on a Russian-bound vessel. I understand that the British are encountering similar difficulties. One of Clark Kerr’s recommendations in the event the Soviet authorities prove unwilling [Page 589] to make an adjustment in this matter is that arrangements be made in London to provide exchange compensation to the crews in question.
My own recommendation is that I be authorized to take the matter up urgently with the Soviet authorities with the request that they authorize our representatives in each port to issue rubles to ship masters at the Embassy rate. I consider this to be not only fair but imperative in the circumstances and am prepared to make strong representations on the subject.56 Both Frankel and the British inform me that the practice objected to has been discontinued pending its clarification.
- Audrey Yanuaryevich Vyshinsky, Assistant People’s Commissar for Foreign Affairs.↩
- Comdr. Samuel B. Frankel, Assistant Naval Attaché for Air in the Soviet Union, sent to the northern Russian ports for naval intelligence work, and subsequently to render assistance to naval ratings assigned to American merchant vessels, and to facilitate the discharge of cargoes from American ships at northern ports of the Soviet Union.↩
- A special exchange rate for diplomatic missions of 12 rubles for $1 (British rate, 48 rubles for £1) went into effect on March 18, 1941. See telegrams No. 538, March 19, 1941, and No. 707, April 8, 1941, from the Ambassador in the Soviet Union, Foreign Relations, 1941, vol. i, pp. 871 and 875, respectively. The unrealistic official rate of exchange was about 5.3 rubles for $1.↩
- In its telegram No. 279 of June 6, 1942, the Department authorized the Ambassador “to take up the matter along lines suggested in last paragraph” of this telegram.↩