Office of the Historian

800.01B11 Registration/10–2149

Memorandum by the Deputy Assistant Secretary of State for European Affairs (Thompson)1

confidential
[Washington,] October 21, 1949.

The Department has just been informed by Justice that the Federal Grand Jury which was considering the Government’s case against Amtorg for failure to comply with the Foreign Agents Registration Act of 1938 has returned an indictment against the corporation and its principal officers, all of whom are Soviet officials. In accordance with the usual procedure in cases of this kind, bail of $15, 000 each will be requested for the officials of the corporation. It is anticipated that tis soon as news of this action against the Amtorg Corporation reaches the press there will be inquiries directed to the Department from many quarters.

It is recommended that reply to such inquiries be along the following lines:

The Department has been kept informed by the Department of Justice of the latter’s efforts to induce the Amtorg Corporation of [Page 765] New York to comply with the requirements of the Foreign Agents Registration Act of 1938. Some six weeks ago the Department addressed a note to the Soviet Embassy notifying the latter of Amtorg’s failure to register in accordance with the requirements of the law.

It is recommended that any inquiries regarding the provisions of the Act and their applicability be referred to the Department of Justice. If any question is raised with respect to the terms of the indictment or the magnitude of the bail set, it is recommended that, in reply, it simply be stated that it is the Department’s understanding that the procedure being followed is the same as in other similar cases.

  1. Copies of this memorandum were sent directly to the Secretary of State, Dean G. Acheson; the Under Secretary of iState, James E. Webb; the Special Assistant to the Secretary of State for Press Relations, Michael J. McDermott; the Legal Adviser, Adrian S. Fisher; and the Assistant Secretary of State for Economic Affairs, Willard D. Thorp. A summary of the information herein contained was sent to the Embassy in the Soviet Union in telegram 779 on October 21, 1949, 7 p. m. The final sentence stated that the Department was “not informed details Justice evidence.” (800.01B11 Registration/10–2149)↩