Foreign Relations of the United States, 1949, Eastern Europe; The Soviet Union, Volume V

800.01B11 Registration/1–2649

The Secretary of State to the Attorney General (Clark)

confidential

Washington, April 21, 1949.

My Dear Mr. Attorney General: I refer to my letter of February 28, 1949¹ informing you that the Department of State was giving consideration to your letter of January 26¹ in which you again referred to the question whether judicial proceedings should be instituted to compel the registration of the Amtorg Trading Corporation under the Foreign Agents Registration Act, and inquired whether there had been any change in the views with regard thereto presented in the Department’s letter of May 25, 1948.¹

As a result of a review of this matter one consideration appears to warrant attention, namely, that should legal action be instituted to compel the Amtorg Trading Corporation to register under the Foreign Agents Registration Act, the Soviet Government, in all probability, would dissolve the Corporation and either would request reinstitution of an official Soviet Government trade mission² or would handle its trade in the United States through diplomatic channels. It is the opinion of the Department that the existence of the Amtorg Trading Corporation as a United States corporation subject to jurisdiction of American courts provides a measure of protection to American firms engaged in commerce with the Soviet Government. On the other hand, it is likely that such protection would not exist should trade be directed only through agencies of the Soviet Government or through Soviet diplomatic representatives.

The foregoing consideration need not of course be compelling and, therefore, if the Department of Justice is of the opinion that prosecution of the Amtorg Trading Corporation would be advisable at this time, the Department of State would be glad to consider the recommendations of the Department of Justice based on the evidence in its possession and to reach agreement with the Department of Justice as to the measures that would be in the overall interest of the United States.

Sincerely yours,

Dean Acheson

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2. Regarding the establishment of the Government Purchasing Commission of the Soviet Union in the United States on February 27, 1942, see Foreign Relations, 1942, vol. iii, p. 696, and footnote 71.