800.01B11 Registration/10–2349

The Under Secretary of State (Webb) to the Chargé of the Soviet Union (Bazykin)

sir: I refer to the Ambassador’s note No. 131 of October 23, 1949 requesting on behalf of the Soviet Government an explanation of the indictment of five Soviet citizens, officials of the Amtorg Trading Corporation, Inc., of New York.

It will be recalled that on September 9, 1949, the Soviet Embassy was notified by the Department of State that the Department of Justice had repeatedly advised the Amtorg Trading Corporation to register with the Department of Justice, as required by the provisions of the Foreign Agents Registration Act of 1938, and the Embassy was informed of the importance which this Government attaches to compliance by the Amtorg Corporation with the provisions of the above-mentioned Act. More than three years had elapsed since Amtorg was first advised to register by the Department of Justice. Despite the repeated official requests, the Corporation had made no effort to comply with the law.

The legal action against the Amtorg Trading Corporation, Inc., and its officers, Messrs. Zakharov, Rebrov, Shevchenko, Ogloblin and Ishchenko, is based on the provisions of American law as set forth clearly in Section 8 of the Foreign Agents Registration Act of 1938 As Amended. Such action cannot be considered in any way repressive.

The legal action taken against the Amtorg Trading Corporation and its officers was not motivated by a desire to hinder or in any way affect normal legitimate trade and commerce between the Union of Soviet Socialist Republics and the United States of America. Requiring [Page 768] the Corporation to register under the applicable law does not deter the Corporation and its officers from carrying on such activities.1

Accept [etc]

James E.Webb
  1. This reply was summarized in telegram 795 to the Embassy in the Soviet Union on the same day. The final sentence of the telegram declared: “Amtorg has publicly announced its intention to file required registration forms.” (800.01B11 Registration/10–2749)