861.5151/12–1847: Telegram
The Chargé in the Soviet Union (Durbrow) to the Secretary of State
niact
us urgent
3398. Had long talk with Dean, Chinese Ambassador,1 who despite requests from several other missions, including British, does not believe it advisable make collective Diplomatic Corps protest re Deptel 2037 December 17. He is not strong character and used limp excuses for not calling meeting Diplomatic Corps. He stated calling a meeting would put him in a very embarrassing position since no Moscow precedents meeting Diplomatic Corps and Soviet-Chinese relations so bad [Page 640] he does not wish put himself in position being accused taking initiative calling meeting. Added it might be embarrassing to many colleagues who had dealt on black market and strong possibility satellites would not attend or if did attend would try to disrupt collective action. He suggested parallel action for those missions with strong cases in regard to 10 to 1 rate.
Regarding new diplomatic rate, he believed this slightly different matter and while felt could not call Corps meeting, since satellites have special favorable diplomatic rate, he would transmit to Foreign Office as Dean of Corps any protest taken up by missions using dollars, pounds, Swedish crowns, or Swiss francs, which includes his own. He believed that while such protest might be ineffectual it would not embarrass his colleagues and added that at new diplomatic rate he felt he would have to reduce his staff considerably. In other words Dean made it clear he would not take any initiative whatsoever.
Discussed problem twice with British Ambassador who concurs collective protest both 10 to 1 and lowered diplomatic rate should be made provided sufficient majority missions join in. He bad already advised Chinese before my talk that if latter felt could not call meetings Corps, British Ambassador would do so. He plans send notes to all members of Corps December 20 inviting them to meeting December 23. He assumes most missions, which apparently is case, will have informed Soviet Government they changing money under protest and reserving position so that time of meeting not of immediate concern. After advising British Ambassador outcome my conversation with Dean, I informed him that we would associate ourselves with his effort make collective protest. British Ambassador of opinion that if not able obtain substantial majority Corps for collective protest, that meeting would permit exchange points of view and allow substantial number of missions to take parallel action.
Re Deptel 2037 December 17, funds deposited cable fees not involved. Am turning in all official rubles and those of members of staff tomorrow,2 sending protest reserving position to Molotov and Bank.3 [Page 641] Will endeavor to obtain appropriate receipts however British Ambassador states bank refuses to give receipt. Do not propose make separate protest re magazine funds which should be covered by general protest pending outcome of efforts of collective action.4
Contrary to Department’s impression that an exchange would provide current operating funds, conversion will provide only about 70,000 new rubles. Payroll already overdue alone requires about 165,000 new rubles. Consequently essential in order meet this payroll and operating expenses next 10 days Department authorize purchase additional 160,000 new rubles against requested dollar transfer.
Until provided with new currency members staff are utterly unable to feed selves and servants except from practically exhausted commissary stocks.
Department please pass Berlin for Ambassador Smith as Moscow’s 659.
- Foo Ping-sheung.↩
- The number of rubles converted was made up of 822,212 official Embassy rubles and 138,884 rubles held by the American members of the Embassy. In telegram 3420 from Moscow on December 23, noon, Chargé Durbrow calculated the total loss of official funds at $48,021.57 at the old rate of 12 rubles to the dollar.↩
- In
the Embassy’s note No. 970 on December 19, the Chargé sent a protest
to Foreign Minister Molotov in which he wrote:
“Under instructions from my Government, I have presented to the Bank for Foreign Trade for conversion the sum of 961,096.00 old rubles, which represents the total amount of official funds now in the possession of the Embassy and its American personnel. My Government in the absence of any immediate alternative has instructed me to convert these funds at the rate of ten old rubles for one new ruble, and accept the amount of 96,109.60 new rubles, under protest and with reservation of all United States rights to subsequent readjustment.
“I shall be grateful for a prompt acknowledgment of the receipt of this letter.”
As requested, the acknowledgment came in a letter of December 20, signed by Boris Fedorovich Podtserob, Secretary to Molotov. Both documents were sent to the Department in despatch 1957, December 22, not printed. (861.5151/12–2247)
The protest made to the Bank of Foreign Trade at the time of the conversion of the rubles on December 19, was sent to the Department in despatch 1951, December 19, now missing from the files.
↩ - Supplementing this telegram by telegram 3401 from Moscow on the next day at 3 p.m., the Chargé stated that payments had been received for all issues of the magazine Amerika so far turned over to Soyuzpechat. Since no new payments would come for some time, his recommendations for the transfer of additional funds to meet current expenses remained valid.↩