800.01B11 Registration/10–2149

Memorandum of Conversation, by the Under Secretary of State ( Webb )

The Soviet Chargé d’Affaires1 called to protest the arrest this afternoon of five principal officials of the Amtorg Corporation.2 I told Mr. Bazykin that the Department was, of course, aware of the efforts of the Justice Department for some time past to induce officials of the Amtorg Corporation to comply with the Foreign Agents Registration Act of 1938 and that the Department had in fact as late as six weeks ago sent a note to the Soviet Embassy in this connection. Mr. Bazykin said that he was aware of the note and of the fact that no reply had yet been made to it, but that he did not understand why the officials should be arrested and asked that the Department intervene with a view to terminating the proceedings.

I explained to Mr. Bazykin that what was involved was the alleged violation of a Federal statute by an American Corporation and its principal officers and that the matter had been submitted to a Grand Jury which had now returned a bill of indictment. This had all happened so quickly that the Department was in fact not yet informed as to the exact terms of the indictment itself, but I had no doubt that it would be possible for the indicted individuals to arrange bail, thus obviating any question of their being incarcerated. I added that it was not clear in just what fashion the Department could intervene in this matter inasmuch as it was a legal proceeding under the laws of the [Page 766] United States but that in any event I would look into it and inform Mr. Bazykin with respect to the details of the matter.3

J[ames] W[ebb]
  1. Vladimir Ivanovich Bazykin was Counselor of the Embassy of the Soviet Union in the United States; at times Chargé d’Affaires.
  2. Chargé Bazykin had already telephoned to George E. Truesdell, Country Specialist in the Division of Eastern European Affairs, to say that he wished to protest on behalf of his government.
  3. In telegram 781 of October 22, 1949, 3 p. m., not printed, the Department of State informed the Embassy in Moscow that the Chargé of the Soviet Union had protested orally in general terms against the arrest of the Soviet officials of the Amtorg Trading Corporation. Formal representations had not yet been received, but the Department expressed its deep concern lest the indictment and arrest of the officials might lead Soviet authorities to concoct an incident in reprisal involving the Embassy. All members of the staff were to be instructed to exercise the utmost prudence and care. Persons not included on the Soviet diplomatic list would be especially vulnerable because of the contention of the government of the Soviet Union that they did not enjoy diplomatic immunity, although the United States had never accepted this contention. (800.01B11 Registration/10–2249)